Current Feed Content from 8 Oct 08 02:49
Fundraising Inspiration: Fire Up Your Board
Wed, 01 Oct 2008 14:25:19 -0800Leyna Bernstein, of The CBO Center in California's San Francisco Bay Area, is passionate about getting board members to not only agree to but enjoy the money-raising part of their role.
But, as she notes, many board members shy away from anything to do with fundraising, perhaps picturing themselves sitting uncomfortably across the table from someone and asking them for a $25, 000 check.
To hear Leyna's discussion about how to assuage board members' fears, find creative ways for them to support your fundraising efforts, and ultimately turn around an unwilling board, listen to my recent podcast.Fundraising for Charity in Tough Times
Wed, 24 Sep 2008 08:21:06 -0800Nonprofits worried about how the nosediving economy will affect their ability to bring in grants and donations will find lots of good material online. Here's a roundup of some choice bits of advice and encouragement:
Direct mail guru Mal Warwick, in the NonProfit Times, reminds nonprofits feeling the financial pinch not to cut the very donor cultivation efforts that will bring them steady returns over the long term. He also gives some excellent comparative analysis of how foundations, corporations, and individual donors change their giving habits during a recession.
Todd Cohen, on Inside Philanthropy, reminds everyone not to panic! He pulls together experts' advice to step up fundraising efforts, and diversify and cultivate your donor base. He quotes Doug Bauer, senior vice president at Rockefeller Philanthropy Advisors in New York City, as saying donors will likely focus on "need-to-do giving rather than nice-to-do giving." (That obviously puts the onus on you to make sure your nonprofit looks like it's serving a vital need -- but remember, even "optional" activities like arts are vital, when you consider their ability to engage people in other educational and community activities.)
Carrie Hill, on CharityMile.com, suggests (in the context of asking for pledges), asking more people for less, and asking friends to reach out to other friends.
Reporting for Reuters, in an article called "Charities brace for Wall Street decline, " Emily Chasan quotes a number of fundraisers who plan to heighten their attention to individual donors, whose loyalties may remain strong even as corporations, for example, are acting out of budgetary, not philanthropic concern.
No one's doubting that the pool of available money is shrinking -- but the consensus seems to be that, with wise management and a careful look at the most likely sources of donor interest, nonprofits will weather this rough patch -- and help those they serve to do the same.IRS Advance-Ruling Worries Gone for Young Nonprofits
Mon, 15 Sep 2008 08:35:37 -0800Until recently, many new nonprofits (those seeking tax-exempt status as publicly supported charities) started their life with a temporary, five-year approval. That's because they had no previous record of their operations, and needed time to prove that they were the real thing.
At the end of the five years, the IRS put them through a literal reality check, asking for proof that they had, in fact, received most of their support from public sources. Although 95% of nonprofits eventually passed this test and received their permanent ruling, it made for some nervousness as the five-year mark approached.
But no more. The IRS recently announced that, because it's so pleased with the amount of information that nonprofits must reveal year by year on their Form 990, it's doing away with both advance rulings and this five-year double check. Better yet, the new rule applies to nonprofits that have already formed but haven't yet reached the five-year mark. As one lawyer I know said, "This will be a relief to the parents on our preschool board."
For details, see the IRS announcement of September 8, 2008.Giving Makes a Body Feel Good
Thu, 11 Sep 2008 07:24:08 -0800And now, with the election looming ahead of us like a super-sized speed bump, let's take a moment to remember what binds people together regardless of party: Helping others, or so scientists continue to say.
I confess I sometimes get tired of the arguments as to whether there's a "helping gene, " or whatever -- it's obvious that some people like to give and share, while others have forgotten whatever such instincts they might have once had, and science isn't going to help fundraisers cross the latter group over into the former.
But reading an article by David Korten called "We Are Hard-Wired to Care" in the Fall 2008 issue of Yes! magazine reminded me of one important thing: For those in the business of asking other people for money, it pays to get re-inspired once in a while. And some of the scientific insights can do just that.
For example, Korten describes research with advanced imaging technology showing that people who think about another human being harmed have the exact same reaction in their brain as mothers who actually see distress on the face of their baby. Then given a chance to help out, the pleasure centers in the brains of people studied light up, which Korten says "benefits our health by boosting our immune system, reducing our heart rate, and preparing us to approach and soothe."
Okay, it doesn't get much better than that. By showing people how they can make a difference (and in the case of giving money, with minimal time commitment on their part) fundraisers can actually improve their health!
One thing that occurs to me, however, is that I don't always get that flush of good feeling from writing a check as often as I do from more direct interactions, like walking the dogs at my local Humane Society. I think that shows the importance of both good setup and follow-through. The more a fundraiser can do to make a problem come alive in the brain of a potential donor, the better. And then to complete the brain circuit loop, send a thank-you letter that doesn't sound like a generic tax receipt, but drives home the fact that the donor HAS TRULY HELPED another person, or a forest, creature, cause, or whatever. I can feel the donors' immune systems getting stronger already.
Is Fundraising a Dirty Word in McCain's Dictionary?
Fri, 05 Sep 2008 06:53:19 -0800
I'm holding a recent campaign letter from Senator John McCain. To read it, you'd think one of his main objections against the Democrats is their very ability to rally support in the form of monetary contributions. Here are some choice phrases:
"The Obama Democrats and their left-wing, special interest allies have come together in a united front, combining their enormous fundraising arsenal."
[They are] "raising staggering amounts of money."
And (in the reply note, meant to be the sender addressing McCain), "...it is absolutely essential to our Party's success for us to battle back against the Democrats' massive and limitless fundraising machine."
Wow, doesn't every nonprofit wish it had a "fundraising machine?" Just plug it in and it starts churning out money...
But really, Senator McCain, wasn't this supposed to be a campaign where candidates debated the issues? Turning fundraising into something sinister when it comes to individual donors seems to me like a cynical way to capitalize on people's lingering discomfort about the word "money" -- highly ironic in a letter meant to raise -- what else? More money.
Nonprofit Meetings, Minutes & Records Released
Thu, 04 Sep 2008 10:56:15 -0800
Nonprofit Meetings, Minutes & Records: How to Run Your Nonprofit Corporation So You Don't Run Into Trouble is a new book by my colleague Attorney Anthony Mancuso, published by Nolo, which contains valuable information for anyone running their nonprofit's meetings or keeping corporate records for their organization.
Remember, in order to maintain a 510(c)(3) tax designation and stay out of trouble with the IRS, there are myriad record keeping requirements you'll need to fulfill. If you want to make sure you're following the letter of the law, this book is essential for you and your organization. And, all the forms you'll need are provided on a handy CD-ROM.
For more information on staying tax-exempt, read Nolo's article "Protecting Your Nonprofit Corporation's Tax-Exempt Status".
And if you'd like to get your own copy of Nonprofit Meetings, Minutes & Records, visit Nolo's online store, here.A Green Twist to Donor Appeals
Wed, 20 Aug 2008 08:10:10 -0800I just got a fundraising appeal from my college that contained the following:
"A fall gift is a 'green gift' as the College will remove you from the normal schedule of appeals until fall 2009, saving resources that can be better spent on education (rather than postage and printing)."
That's almost annoyingly clever. What donor doesn't get irritated when one gift just becomes a prelude to a flood of letters asking for more, and worry about the wasted resources? I have a feeling we'll be seeing this on many fundraising letters in the future. Meanwhile, I just might make that gift.Do Men Give to Charity to Impress?
Tue, 05 Aug 2008 16:48:03 -0800This could be the new insight into donor motivation we've all been waiting for: a study reported on by the Telegraph (U.K.), indicating that men tend to give more money when there's a pretty woman around to impress. (Women give the same amount regardless of who's watching.)
It's all a part of those primordial mating instincts, apparently. And if all is fair in love and war, then I suppose it's fair to take advantage of said instincts in the interest of a good cause.
Of course, engineering this could be tricky. It does suggest that special events or house dinners with public calls for donations, or live auctions, are a good starting point. But should they be formal dress events as opposed to masked? And how do you make sure to have a lot of women -- let alone "pretty" women, which is too subjective a standard to even touch -- at an event? Hmm...Creating Nonprofit Newletters: A New Podcast
Wed, 30 Jul 2008 16:19:51 -0800Is a newsletter for members in your nonprofit's future? Or are you wondering why your existing newsletter isn't getting the results it should?
Check out the latest of my interviews with expert nonprofiteurs. This time you'll hear from Cheryl Woodard and Lucia Hwang, authors of Every Nonprofit's Guide to Publishing, talking about how your nonprofit newsletter can make money. Some of Cheryl's clients bring in money with every newsletter they publish, and you can do the same -- by first paying attention to important tips on budgeting, using volunteers, and writing text that excites -- rather than bores -- the reader.Fundraising Kudos to: Audubon Ad Encouraging Bequests
Mon, 23 Jun 2008 10:36:35 -0800Every nonprofit that hopes to attract gifts from donors' estates knows how hard it is to find language with which to refer to that possibility in print. Words like "estate, " "bequest, " and "planned giving" are vague or jargony. And this is one case where simplifying the language -- for example, saying something like, "leave us money after you're dead" -- really doesn't work.
That's why my eye was caught by a page in an Audubon magazine (January 2008 happened to be the one I was looking at), with the heading: "Your Beneficiaries: There are more of them then you realize!"Accompanied by a photo of children looking at a bird nest, it aptly, even humorously, reminds people that they care about a wider circle of life than their immediate family; and that by naming Audubon as a beneficiary in their wills or other documents, they can contribute to a better future for all.
Unfortunately, now that they came up with this nice language, it's off-limits, copyright-wise, to anyone else who might want to use it. But it's a good source of inspiration, and proof that you don't have to get into a language rut over this.
Nonprofit Media Roundup
Mon, 16 Jun 2008 10:25:13 -0800Some interesting news tidbits recently:
First off, did you notice the FTC warning consumers about scam charities supposedly fundraising for people affected by the earthquake in China and cyclone in Myanmar? (It was written up by Dan Thanh Dang in the June 15th Baltimore Sun.) Potential donors are being warned to double-check that any phone calls really came from the charity, ask what percentage of the donation will go toward services, and more. Of course, this affects every nonprofit as donors' level of suspicion goes up. No sense fighting it -- just be ready to provide every possible tidbit to reassure donors that you're for real.
Another interesting story came from the June 12th edition of Conde Nast's Portfolio, written by Dalia Fahmy and titled "Charity Prize Fight". The story discusses how nonprofit foundations are using contests -- for example, to create the best, most commercially viable solution to global warming -- as a way to simultaneously address a problem, get publicity, and stimulate more giving. (The global warming contest is, by the way, from Richard Branson's Virgin Unite foundation.)
How is this news important to smaller, non-foundation charities? Aside from staying alert for a contest you can enter (been keeping a solution to global warming up your sleeve?), creating contests among your donors and members might make for an interesting change of pace. The simplest would be an online contest -- say, to raise the most money through grassroots efforts, suggest the best name for an animal under your care, or the like. Instead of cash prizes, offer a personal tour of your facility or a meeting with the E.D.. And be sure to call the media!
Finally, on the lighter side of fundraising, it's interesting to watch overseas trends. As far as I can tell, the British are maniacs for stunt-based fundraising -- like this bungee-jumping priest, or this skydiving grandmother. And then there were the two store managers who (voluntarily, it appears) were locked in their shop window, given a phone, and told to raise 1, 000 British pounds for charity before they'd be let out. Is there a lesson to be taken from these? I await your comments.
When Fundraising Looks Like Begging
Mon, 09 Jun 2008 09:57:42 -0800
Here's an interesting blog post by Christopher Campbell on Cinematical, talking about the practice of enlisting movie theatre ushers in efforts to collect donations for nonprofits.At first glance, it sounds like a reasonably creative idea: The ushers will be walking the aisles anyway, among theatre-goers in a presumably good mood. Why not have these ushers carry a can to collect some coins for a cause?
But as Cristopher's blog points out, the results have made some patrons feel they were being hassled -- especially when ushers were given incentives to "do whatever they could to get as much money as they could." He describes some ushers' aggressive tactics, including name-calling behind the non-givers' backs, and other ushers who may have skimmed money from the donation jar, referring to it as the "cigarette fund."
If ever there was a reminder that every volunteer needs proper training, this is it. I'm guessing those ushers didn't feel they had much choice in their charity collection activities. Did they receive an in-depth orientation from actual members of the charity, to inspire them about the cause and make sure they were committed to helping out? The blog doesn't say.
Before your organization says, "Wow, free volunteer help!" in any similar way, make sure to do the training first, to avoid the need for damage control and retraining later. And if it's going to be an ongoing effort like this one, follow up to see how it's going.
Emptying Commercial Space: An Opportunity for Your Nonprofit?
Wed, 28 May 2008 13:06:28 -0800Recession or not, reports of empty storefronts are popping up nationwide -- signs advertising "Free Rent" have actually been spotted in Las Vegas. That's bad news for the economy, but could actually be good news for some nonprofits.
Landlords hate to have an empty storefront. It's a potential target for thieves and vandals, and reduces traffic to other stores in the same strip or complex. But finding another tenant and negotiating a new lease can take weeks or months to complete.Some nonprofits have been finding ways to fill the gap. For no or very low rent, they've used empty retail space for such temporary purposes as animal adoptions, a soup kitchen, a depot to collect and contribute clothes to the poor, and more. It's a win-win situation: The nonprofits get higher visibility and a way to reach more people (both clients and potential donors); the landlord gets the benefits mentioned above, plus possible increased foot traffic to other stores; and both might get some good media coverage from the partnership.
If your nonprofit could benefit from such an arrangement, look around your area for empty storefronts and get in touch with the landlords. They might have already heard of your idea -- particularly if they read the "Commercial Lease Law Insider, " a respected publication that featured an article called "Protect Yourself When Temporarily Filling Retail Space with Nonprofits" in its September 2007 issue.
The "protection" part of the article simply referred to the fact that the landlord needs to sign some sort of agreement with any nonprofit to which it lends or rents space. Signing such an agreement is in your interest, too, to make sure everyone has the same understanding of price and other terms.
Instead of a standard lease, the landlord is most likely to want a license agreement, which is appropriate for situations where the arrangement is so temporary that the landlord shouldn't have to evict you if you refuse to leave by the agreed-upon date. If, however, your organization turns into a long-term tenant, you'll want to sign a standard commercial lease. For help with this, see Negotiate the Best Lease for Your Business, by Janet Portman and Fred S. Steingold (Nolo).
Choosing Between Nonprofit and For-Profit Status? Think B Corp
Wed, 21 May 2008 16:14:23 -0800Don't miss Ilana DeBare's excellent article in the San Francisco Chronicle, "B corporation plan helps philanthropic firms." It profiles a new melding of for-profit and nonprofit status, in which a business explicitly adopts socially conscious goals -- in one case, donating all profits to charity -- and writes these goals into its founding legal documents. The originators of the concept call it a B corporation.
DeBare is careful to point out that, unlike C and S corporations, B corporations have no actual status under the tax code. And if you've researched the dividing lines between taxable and tax-exempt corporations, you know that the tax rules can get gnarly. But by banding together with a self-invented status, B corporations at least put the shareholders and would-be company buyers on notice that they're serious about serving other ends besides sheer profit.
Candy Fundraisers: Why Pay the Middleman?
Mon, 19 May 2008 11:32:31 -0800
Remember the days when Girl Scouts and Camp Fire Girls were the only folks selling sweet stuff for charity? Now you can't turn around without someone peddling a chocolate bar, candle, or discount coupon on behalf of some charitable cause.And the services providing these goods have mushroomed -- try Googling "fundraising" if you want to see what I mean. The Internet is awash with services promising to provide items everyone will want to buy, while making it easy for you, the nonprofit, to sell them.
So, I recognize that there's something to be said for ease of setup. And many small charitable groups rely on candy and other sales for a lot of their revenues. But as a donor, I'd always assumed, when laying out a ridiculous $2 for a candy bar, that much of the money was going to the charity. Now I see from these online providers that they're charging the charity as much as $1.20 a bar! (They don't always make that clear -- you may have to do the math yourself.) Meanwhile, they tout the virtues of a 40% profit to the charity. Hmm.
Why not just go down to your local drugstore or discount grocery, see what's on sale, and buy a few cases? A quick online search shows that various energy bars are on sale near where I live for only $1 apiece, and I'll bet I could do better if I looked harder.
You'll have to create your own forms for the volunteers to fill out when selling, but really not much more. And is that so much work compared to the time you'd spend online figuring out which middleman service offers the best services for the lowest (but not all that low) price? For no less work, you could easily have profits over 100%.
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