Standards For Tax Revenue Tougher For WI Nonprofits

Delavan, Wisc.-based nonprofits didn't have to jump through many hoops to get a share of the city's room tax revenue in past years. Organizations would simply request it during a council budgeting meeting and hope for the best.

Things will be significantly different this year. Walworth County Today has reported that nonprofits in Delavan must now prove their events have the potential to fill hotel rooms. The city collected $252,000 in room taxes last year, and statutes state that 17.5 percent of that money must be used for the promotion of tourism activities that will bring money to restaurants and hotels. Therefore, $44,110 will be available for nonprofits this year.

The change in rules for grant eligibility will make the competition for dollars stiffer than ever. It also has the potential to disqualify nonprofits that were eligible for the money in the past. Here's how the new process will work: Organizations must fill out an application and go before a committee that consists of one council member, two hotel industry representatives, local restaurant owners, and others who will have a stake in getting people to the city. The nonprofit will be grilled on many details, including how it will track the success of the event.

This will definitely be a more time-consuming process for nonprofits than in the past, but it will also force them to think more carefully about the events they plan. You can read the full article in Walworth County Today.

Texas Planned Parenthood CEO Arrested For Indecent Exposure

The CEO of a Texas Planned Parenthood branch was arrested Monday afternoon after he exposed his genitals at a Lubbock, Texas baseball field.

KCBD-Texas, an affiliate of CBS News, reported that Ray Thornton agreed to take a leave of absence from his position at the Planned Parenthood Association of Lubbock one day after he posted a $750 bail on the charge of indecent exposure. As of this writing it is not clear how long Thornton will be absent from his position, but the organization quickly announced a replacement: Tara Haskell, who previously served as the organization's Director of Finance.

Thornton expressed deep regret for causing distraction from the organization's goals in a statement released to KCBD-Texas. "I will work with my attorney through the appropriate court process to correct any misinformation and take responsibility for errors," he continued.

You can read more about this story on KCBD's website.

March 15 Issue Released

Today is the Ides of March, but there's no reason to beware. Why? Because the new issue of The NonProfit Times has just been released! Let's take a look at what's inside the latest issue:

Articles

• A Tree Grows In Direct Response: Direct response Guru Larry May sits down with Glen Beasley, director of direct marketing of the National Arbor Day Foundation. The two talk about various subjects, including the organization's history and how they handle "tree fulfillment."
• LGBT Groups Gain Mainstream Recognition For Community-Wide Grants: Civic leaders were trying to raise money in 2000 for a Latino Cultural Center, so one same-sex couple thought they’d tap into some of their friends and raise perhaps as much as $5,000.
• Cancer Walk Competitors Busy In Wake Of Komen Debacle: In what could be considered an incredible coincidence, during the first three weeks of February the Avon Foundation for Wom­en aired 6,000 commercials promoting its breast cancer awareness and research walks that start in April, including the one in New York City, which isn’t until October.

Column:

• Why Me?: Is the assumption that all those prospective donors out there share your appreciation for your cause a tactical mistake? You bet it is.

Check out more about the issue, including the featured nonprofit job and marketplace listing, on our website!

Nonprofit CFO Accused Of Embezzlement

A top executive of a Bronx, N.Y.-based nonprofit was indicted by the state Attorney General's Office for allegedly stealing thousands of dollars from the organization.

The New York Post reported today that Clement Gardner, who was the chief financial officer (CFO) of the Christian Community Benevolent Association (CCBA), allegedly embezzled at least $75,000 dollars in funds. The indictment alleges that Gardner wrote the checks to himself from 2004 to 2007, writing false memo lines to cover himself. State Attorney General Eric Schneiderman announced yesterday that his office launched the corruption probe after getting a referral from the FBI.

The indictment of Gardner is the first result from an ongoing probe of nonprofits with ties to state lawmakers. CCBA was previously run by Bronx state Sen. Ruben Diaz Sr., who steered $500,000 in state grants to the nonprofit.

Gardner is currently being held without bail as he awaits a hearing. He has claimed he wrote the checks because he was not being paid for the work he was doing for CCBA. You can read the full story in The New York Post.

Featured Job: President/CEO

Looking for a good executive job? The Village Network, based in Smithville, OH, is looking to hire a new President/CEO.

Established in 1946, The Village Network specializes in the treatment and care of troubled youth. The President/CEO reports directly to the Board of Trustees and is involved in the following critical areas of the organization:

• Children's treatment;
• Human resources;
• Fundraising;
• Maintenance of buildings;
• Grounds and equipment;
• Fiscal management;
• Volunteerism;
• Licensing and accreditation; and,
• Public relations.

All these responsibilities are in addition to the day-to-day CEO duties, such as ensuring the continued growth of the organization and overseeing the budget (which is over $25 million). 

It goes without saying that this is an extremely high-level job. As a result, you will need to have a wealth of experience at your disposal. The ideal candidate will meet the following requirements:

• Extensive experience with fundraising, building partnerships with stakeholders, and development and implementation of organizational strategy.
• Master's Degree with both clinical and nonprofit business experience or equivalent.
• At least 10 years of related experience.
• Math, reasoning, and computer skills, including spreadsheet management, are of great importance.
• Must have a valid driver's licence and be able to drive to various locations throughout Ohio and, occasionally, out of state.

Interested? Apply for this job on our website. 

Featured Job: Meeting Coordinator

The New Jersey Association for Justice, based in Trenton, NJ, is looking for a highly experienced meeting coordinator to help plan its various meetings and events.

The ideal applicant will have excellent negotiation skills, an ability to deal with all types of people, computer proficiency (specifically Microsoft Office programs), and superb on-site operations experience. If chosen, the candidate will report to the Executive Director and manage legal education meetings for the Association. These meetings range from the small (15) to the large (2,300). The coordinator will also manage high-level gatherings, such as executive and Board of Directors meetings.

Here are some additional qualifications needed:

• 4-year college degree in related field.
• Experience dealing with a volunteer-based committee environment.
• At least 2 years experience in all facets of meetings management.
• Strong background in budget management and conference reconciliation.

Interested? Apply for this job via our career center.

Live From SXSW

One of the largest entertainment festivals in the country, South By Southwest (SXSW) kicked off last Friday in Austin, Tex. The event is a mecca for music film, and entertainment fans, as well as people interested in hearing about the latest advancements in social media and other technologies. Prominent panel speakers have already taken the stage, including former Vice President Al Gore, Napster founder Sean Parker, and author and scientist Ray Kurzweil.

Amy Sample Ward of NTEN is covering SxSW for The NonProfit Times and will be filing blog posts throughout the event. You can follow her posts for us on our website or click the links below:

• Ambient Location and the Future of the Interface: SXSW Keynote with real implications for Nonprofits
  
• Social Philanthropy: Raising Money on YouTube and Twitter
• Stand with Planned Parenthood: Lessons from Crisis Response Campaigns

We will be posting new articles to the site as they come. Keep an eye on our Live From SXSW Feed for the latest updates.

Featured Job: Executive Director

New England Village, a campus-based residential community for adults with disabilities based in Pemboke, Mass., is looking to hire a new Executive Director.

As you might expect, the Executive Director (ED) plays a big role at New England Village. The chosen applicant will work with the Board of Directors to provide a vision for the future of the organization. This will include playing a primary role in purchasing service contracts from the state, managing construction and renovation projects, fundraising, and much more. The ED will also work with New England Village's senior management team to establish annual and long-term organizational goals, and will be actively involved with new staff and program development. You're going to have a lot of responsibilities, so make sure you are excellent at multitasking.

Speaking of requirements, here's a list of things you must have to be considered:

• Experience leading and managing organizations or units of compatible purpose and similar complexity.
• Experience with state and federal contract negotiations and Medicaid/Medicare reimbursement is preferable.
• Demonstrated skills internally of communication and inspiration, including team-building and participatory decision-making, and externally of organizational representation, including the formation of strategic partnerships.
• A comprehensive professional understanding of and background in working with individuals with developmental disabilities.
• Four-year college degree in related field.

To make things even better, the job is in an ideal location: Only 35 miles south from Boston! Interested? Apply for the job on our website.

Investigators: Nonprofit Faked Job Placements

A nonprofit hired by New York City to help residents find jobs falsified 1,400 job placements, according to NYC investigators.

ABC News reported Saturday that Seedco, which operates in 14 states and Washington, D.C., used data from past and current clients to falsely claim they had placed the individuals in jobs. The NYC Department of Investigation claims the organization also claimed credit for placing people in jobs they'd lost before they sought help. The city's investigation found 1,400 false claims from 2010 to 2011, but there could be many more because of the city law permitting the shredding of documents.

City officials first learned of the allegations against Seedco in an August column in The New York Times. The matter was quickly referred to investigators after the article was published. The nonprofit's $22.2 million contracts with NYC are to be reassigned over the next two months.

Barbara Dwyer Gunn, president and CEO of Seedco, said in a statement that they "deeply regret" what happened at the local Workforce1 centers which they ran. She said the organization fired the employees responsible and implemented policy changes to ensure their data is accurate.

You can read the full story in ABC News.

Hire For The Future

Here's a simple question: Why is your nonprofit looking to hire a new employee? The obvious answer would seem to be "Because we have a current need in the position." While hiring for the present is all well and good, nonprofits also need to make sure they are keeping the future in mind.

This can be a difficult idea to sell. After all, the present needs of the organization are much clearer than those years from now, and there is seemingly more to gain by focusing on the here and now. In reality, there is much more to be gained by looking towards the future. One of the best ways to do this is hire employees who have multiple areas of expertise.

Even if you are hiring for a fundraising position, you should make sure this person has more to offer than the proven ability to raise money. For example, a fundraiser with social media savvy will help your nonprofit as new trends emerge. It wasn't too long ago that Twitter and Facebook were the talk of the town. Then, out of seemingly nowhere, Pinterest arrived, bringing a new social media platform for nonprofits to explore. Having the ability to raise money in multiple arenas will be of great help down the road.

Make sure to keep this in mind the next time you review an applicant's resume. Your employees must be able to adapt, especially in an environment that changes as often as the nonprofit sector does.

Nonprofit's Viral Video Draws Attention To Rebel Leader Kony

A now infamous viral video released to YouTube by a nonprofit has sparked a social media campaign to bring an African rebel leader to justice, showing once again the power of viral marketing.

The Wall Street Journal reported today about the nonprofit's viral video "Kony 2012," which spotlights the crimes the leader of the Ugandan rebel group Lord's Resistance Army (LRA) has allegedly perpetrated. Kony is currently wanted by the International Criminal Court for crimes against humanity and war crimes including murder, sexual slavery, and using children as combatants. Invisible Children's video features interviews with Ugandan children, many who are afraid to speak for fear of being captured and killed.

"Kony 2012" (Warning: Graphic content) was first uploaded to YouTube on Monday and, by Thursday afternoon, it already had 44.7 million views and more than 170 related video clips, according to the online measurement firm Visible Measures Corp. The video also reverberated in other areas of social media, with social media analytics firm PeopleBrowsr reporting that Twitter users mentioned Kony 950,000 times. It was sites like Twitter and Facebook that allowed Invisible Children to get people aware of their video in the first place. Invisible Children's campaign also allows participants to directly message specific celebrities and policy makers through their website to encourage them to speak out on the issue. The site includes a wide array of personalities to message, from Lady GaGa to Mitt Romney.

The goal of Invisible Children, which was founded by Jason Russell along with two other filmmakers, is to bring Kony to justice this year. They plan to do this by bringing awareness of his alleged crimes through "Kony 2012" and the Invisible Children Protection Plan. The nonprofit's financial statements show that this program has a five-step strategy that includes creating an early-warning radio network and deploying search and rescue teams.

There are some who question whether this viral marketing campaign is effective. Scott Gilmore, chief executive of NYC-based Peace Dividend Trust, told The Wall Street Journal that while Invisible Children's efforts are commendable, they are ultimately for an effort that didn't need awareness. He also said the efforts won't bring back the children who were already kidnapped by Kony and the LRA. Invisible Children has responded to these types of critiques on their website.

You can read the full story in The Wall Street Journal.

Webinar: Unlocking The Value Of Donor Data

We may have just finished our most recent webinar on cloud computing but we're not stopping there.  We have a new free webinar to offer our readers tomorrow!

On March 9 at 1:00 PM EST, join The NonProfit Times, AMA, and CDS Global for a free webinar: From Information to Impact: Unlocking the Value of Donor Data."  Attendees will listen to Bev Hutney, Director of Innovation and Research at the Stelter Company, and Kristin Runyan, Chief Information Officer and VP, Product Management at CDS Global, discuss how to gather and analyze donor data today to help guide your important decisions tomorrow.

Interested in attending this webinar?  Visit our registration page to learn more details and to sign-up!

Nonprofit Ordered To Return $130G

A Massachusetts state auditor has demanded a Charlestown nonprofit return $130,000 after it was accused of using the funds on outside expenses.

The Boston Herald reported today that Charlestown, Mass.-based Life Focus Center Inc. allegedly used the funds, which were intended to help the disabled, to pay for food, alcohol, and other expenses while on a vacation in Disney World.  The organization has denied these claims.

State auditor Suzanne M. Bump called the charges a "horrifying" waste of taxpayer money, and ordered Life Focus to refund $130,000 to the state. This information was revealed after an audit of the nonprofit, which showed that Executive Director Jack Millerick charged over $123,000 on the agency's credit card in fiscal years 2009 and 2010. While a good portion of the money was allegedly spent during the Disney World vacation, nearly 40 percent of the purchases in 2010 were made in New Hampshire, where Millerick has a vacation home. He has told Bump's office that all of the purchases made during the Disney vacation were business-related, and blamed payments for gas on "human error."

Aside from the improper spending, Life Focus Center executives are also accused of hiring family members.  The auditor's report stated that Millerick hired his wife, Karyn, to serve as communications director, a position which paid her $85,000 in 2010. He also paid his brother-in-law $6,600 for maintenance services but did not report those expenses to the IRS or state tax officials.

You can read more about this story in The Boston Herald. Interested in reading more about finance?  Sign-up for our financial eNewsletter, Exempt.

IRS To Investigate Political Groups

The Internal Revenue Service (IRS) is coming under fire from some conservative political groups for taking part in what they term a political witch hunt.

As the election season heats up, the IRS is taking a closer look at political nonprofits.  The New York Times reported that the agency has sent dozens of questionnaires to conservative Tea Party organizations in recent week in an attempt to determine their political leanings and activities.  Existing nonprofits like American Crossroads, on the Republican side, and Priorities USA, on the Democratic side, will also be pressed by the IRS to justify their tax-exempt status.

Although both sides will be questioned, some conservatives are crying foul on the IRS's questions.  Jay Sekulow, a conservative lawyer, is representing 16 Tea Party groups that are claiming the questions amount to harassment and a political witch hunt.  Conservatives point to a renewed effort by Democratic lawmakers to demand that these nonprofits and so-called Super Political Action Committees (PACs) disclose their donors and identify their major funders in political advertisements.

The issue the IRS has with these groups, designated as 501(c)(4)s (social welfare organizations) under the tax code, is they are concerned they are not living up to requirements.  Social welfare groups cannot engage solely in political activities.  In an e-mail to The New York Times, the IRS said they must be primarily engaged in the promotion of social welfare in order to keep their exempt status.  It's unclear how much political activity constitutes an excessive amount.

Another concern is whether donations to political nonprofits are tax deductible.  While an individual donation to a group like American Crossroads would not qualify as such, some companies could attempt to justify donations as a necessary business expense.  Tax experts believe that some donors are putting their donations into their marketing and advertising budgets and deducting them from their taxes.  This claim has not been proven, however.

You can read the full story in The New York Times.

Creating A Successful Nonprofit Newsletter

The best way to communicate with donors and supporters before the Internet was to send out newsletters.  These (usually quarterly) communications would keep them up-to-date on the most recent accomplishments of the nonprofit.

Newsletters are still around today, but they usually come in the form of eNewsletters, like the ones that The NonProfit Times sends out weekly and monthly.  With the change in format comes a change in expectations, so the old way of communicating won't cut it anymore.

It all starts with frequency.  In "Nonprofit Management 101,"  Kivi Leroux Miller, president of NonprofitMarketingGuide.com, wrote that the first thing nonprofits have to adapt to is sending out communications more often.  Most eNewsletters are sent out weekly or monthly rather than quarterly, and will contain fewer words than print newsletters (between 500 and 1,000 words).

Even if you are still sending out print newsletters, Leroux Miller recommended changing your style. She listed five techniques to keep your supporters happy and informed:

• Frequency: Send fewer words, more often.
• Look Forward: Preview more, review less.
• Personality: More of them, less of you.
• Next Steps: More action, less FYI.
• Integration: More planning, less improv.

Make sure to sign-up for NPT's free eNewsletters on our website!

Gulf Oil Spill Donations Going to New Orleans Nonprofits

One of the worst oil spills in history occurred when British Petroleum's (BP) Deepwater Horizon rig exploded in the Gulf of Mexico, setting off a long clean-up process in the the region.  The spill not only affected the wildlife, but also local businesses and communities.  Communities are still recovering two years later, but help is on the way.

The Times-Picayune reported last week that nine New Orleans, La.-based nonprofits will receive the last $2.2 million of a fund meant to help local communities affected by the spill.  The Greater New Orleans Foundation made the disbursements and is responsible for donating $5 million of the $25-million Fund for Gulf Communities, established by an anonymous donor through Rockefeller Philanthropy Advisors.  The remaining $20 million will be distributed by five other organizations associated with groups in Louisiana, Mississippi, Alabama, and Florida.

Here is a list of the organizations receiving the funds:

• The Children's Bureau of New Orleans -- $250,000
• The Partnership for Youth Development -- $299,708
• The Youth Empowerment Project -- $210,548
• The Mercy Family Center -- $274,500
• Grow Dat -- $214,586
• The Latino Farmers' Collaborative of Louisiana -- $125,857
• The South Central Industrial Association -- $374,000
• The Houma Regional Arts Council -- $240,447
• Bayou Grace Communities Service -- $241,850

The Greater New Orleans Foundation distributed $2.4 million last year to 12 nonprofit organizations.  Overall, 21 nonprofits in the metro New Orleans area have received funds, which have played a role in the economic and emotional recovery from the Deepwater oil spill.

You can read the full story in The Times-Picayune.

Texas Nonprofits Scramble After State Homeless Program Cuts

Many states across the country have been going through economic crises, leading to budget cuts in important programs.  One example of this takes us to Texas, where years of cuts to the state's homelessness program have left local nonprofits scrambling to save their own services.

The Star-Telegram reported on Saturday that during last year's budget crisis, legislators got rid of a $20 million homeless housing and services program, as well as an employment program and street outreach and rental assistance services.  The programs were first created in 2009 to help the state's eight largest cities fight homelessness.  The $20 million was distributed to local nonprofits in a two-year cycle.  Those funds are now gone.

The cuts have forced these same nonprofits to cut costs in order to preserve their own services.  The Salvation Army in Fort Worth had to cut their case managers from four to one, and saw its client assessments drop from 1,400 to less than 500 in only three months.

The state will still provide nonprofits with $5 million drawn from various sources, such as the housing trust fund, this year.  This was meant to fill the void created by the elimination of the program, but it will still only provide half of the money cities would normally receive.  For example, Arlington will only get $250,000 rather than $500,000.

There is some hope for nonprofits on the horizon.  The United Way of Tarrant County announced last week it would be awarding $2.4 million in grants from Fort Worth's Directions Home program.  These grants would provide money for case managers, career planning, and rental vouching programs.  The Salvation Army hopes to use the money to hire two new case managers for its emergency shelter.  Yet bigger issues lay ahead.  There is currently no funding planned for homelessness programs in 2013.  Nonprofits are planning to lobby the state to at least get the $5 million from this year again.

You can read the full story on this issue in The Star-Telegram.

Is Your Nonprofit Pinterest-ing?

Have you ever heard of Pinterest?  If you haven't, it's time to get out from under that comfortable rock you've been living under, because it's the next big social media craze.  So what is it?  It's a pinboard style social photo sharing website.  Users are able to create boards and then decorate them with pictures that best represent their interests.  These photos can either be taken from the web or uploaded from your computer.  Once the picture is up, the user can link it to a website of their choosing.

Although it was launched back in March 2010, Pinterest has only recently gained steam.  As of January 2012, the site had 11.7 million unique visitors, the fastest any site has reached that mark.  It's clear the social networking site has reached the level of "phenomenon" so now the question is how can your nonprofit make use of it?

Mashable, a social media and tech website, recently published an article on the top 10 strategies for nonprofits when using Pinterest.  Here are five of the tips we like the best:

• Know Your Audience: This is the standard rule for other social networking platforms and it still applies to Pinterest.  For example, did you know that of the site's 10 million plus users, 87 percent are women, and the average age spans between 25 and 54.  Keep this information in mind when deciding which pictures you want to pin.
• Get Personal: It's true: People respond better when they think a real human being is behind the scenes of your social network.  Give your pins some life by personalizing your descriptions, and don't be afraid to show some humor from time to time.
• Make It A Team Effort: Social media campaigns are most successful when you get multiple staff members involved.  Mashable gives the example of charity: water.  Sarah Cohen, the communications and development manager at the nonprofit, told the site that one of their recently added boards, "Products We Love," is comprised of the various nonprofit brands that the group's staff admires.
• Fundraise: Pinterest has a feature that makes it extremely easy to raise money.  All you have to do is pin a picture of something (maybe a money jar, a fundraising sign, etc.) and enter the "$" sign and price in the description box.  This will create a banner in your image that will allow users to donate that amount of money into your Pinterest's Gifts tab.
• Highlight Other Nonprofits: Pinterest is a great place to promote your nonprofit but you also don't want to go overboard self-promotion.  Other users get notifications when their pins have been "re-pinned," and this will help you get more followers and, who knows, maybe the nonprofit will re-pin one of your items.

You can read the full article on Mashable.com.  Make sure to visit NPT's Pinterest page, too!

Illinois To Continue Reviewing Nonprofit Hospital Tax Exemptions

The deadline for a new proposal for dealing with Illinois nonprofit hospitals' tax exemptions has come and gone, and no solution was reached.  That led to a decision that will not please the hospitals.

The Chicago Tribune reported yesterday that Illinois Gov. Pat Quinn lifted a moratorium on the state's review of property tax exemptions requested by nonprofit hospitals.  Two proposals emerged Tuesday, but it seems like talks didn't go anywhere with the hospitals.  The state's Department of Revenue currently has as many as 18 pending applications from nonprofit hospitals requesting tax exemption.

The Illinois Hospital Association, along with other groups, argue that the current definition of what constitutes charitable care is far too narrow.  They argue that hospitals aren't given enough credit for providing other community benefits, such as donations to charitable community healthcare organizations.  The state's constitution, however, says that tax exemptions are only allowed for property that is used "exclusively for charitable purposes."

This rule was rarely enforced until 2004, when Illinois revoked Provena Covenant Medical Center's tax exempt status because its charitable care was deemed insufficient.  The hospital appealed the ruling and it eventually ended up in the Illinois Supreme Court, which ruled the state was justified in its initial ruling.

Talks between the hospitals and the state will continue next week in hopes of striking a deal.  You can read the full story in The Chicago Tribune.

6 Key Principles For Fundraising Beginners

When you look back at your first attempt at any job, there are bound to be things you wish you could try again. This idea certainly holds true when it comes to fundraising.  If you don't believe me, just ask Andrea McManus.

McManus, president of the Development Group, wrote in "Nonprofit Management 101" that she made a lot of big mistakes during her first foray into fundraising.  One of the errors that she mentioned was not fully understanding the fundamentals of philanthropic giving, which led to mistakes such as not customizing her fundraising letters.

None of those mistakes prevented McManus from attaining future success in the world of philanthropy, but she believes being better prepared would have helped her even further.  She can't go back in time and change those mistakes, but she can make sure other aspiring fundraisers approach the job the correct way.  That's why she shared six fundraising principles to help make that first fundraising job a successful one:

• People give to people. Understand that people don’t want to give to organizations, they want to give to the people your mission serves.
• Much comes from few. Don’t send out a mass mailing to 70-80 potential corporate prospects. Take the time to identify the top 10 who have some alignment with your mission and put most of your time there.
• Wealth is not always obvious nor is it necessarily interested in your cause. Too many organizations spend too much time trying to secure donations from high-profile sources. Take a broader view that includes the many individuals with less, or less obvious, wealth who still have the means and the interest to support your mission.
• It’s not about the money -- it’s about building the relationship. Build strong relationships with your donors.
• Fundraising is not a stand-alone activity.
• Philanthropy is something to be proud of, and fundraising exists to enable philanthropy. Be proud of the work you do to help philanthropists as they use their resources to help others.

You can get more tips like these by signing up to NPT Instant Fundraising, one of our free weekly eNewsletters.