The social networking behemoth Facebook filed papers yesterday to raise $5 billion in its initial public offering (IPO) of stock. This is good news for Facebook employees and their investors, but what does it mean for charities? It depends on who you ask.
MSNBC ran a piece on this subject yesterday, and it suggested that this new influx of wealth to Facebook employees could mean big bucks for nonprofits. Why? Facebook has provided their employees with stock incentives over the years, and they will be able to use these to cash in on the IPO. Experts like Rob Mitchell of Atlas of Giving told MSNBC that when individuals' personal wealth increases, it makes them more likely to want to start a philanthropic legacy.
Patrick Rooney, executive director of The Center on Philanthropy at Indiana University, agreed with Mitchell, citing studies that show entrepreneurs are about twice as generous than people who inherit their wealth.
All of this doesn't guarantee that these new millionaires will start donating to charity. In fact, there are some who don't think Facebook employees are all that likely to start being philanthropic, at least not immediately. Robert Frank, a writer for The Wall Street Journal, told MSNBC that he thinks they are much too young to think about starting their philanthropic efforts. He argues that they are still in the "accumulation phase" of their lives, and want to focus on changing the world through their company, not their philanthropy.
Charities will ultimately see a lot of money come in as as result of Facebook's IPO. It's just a question of how soon. You can read the full story on MSNBC.
Thursday, February 2, 2012
D.C. Nonprofit Sought Real Groundhog For Celebration
We all heard what Punxatawney Phil had to say about the length of winter this year, but what did Potomac Phil have to say?
If you're wondering who Potomac Phil is, don't be alarmed, he's relatively new. He's also not alive, but that's beside the point. WTOP reported yesterday that Dupont Festival, a Washington D.C.-based nonprofit, was seeking a live groundhog for its first annual Groundhog Day celebration in Dupont Circle Park.
The nonprofit had already spoken with the D.C. National Zoo, but they only offered prairie dogs, which didn't quite fit the bill. The WTOP article directed readers to the organization's website, where anyone with information on how to get a live groundhog could contact them.
Dupont Festival eventually had to settle for a stuffed groundhog donated from Miss Pixie's Furnishings & Whatnot, a local D.C. store. Thus was born Potomac Phil, who made his prediction for winter known to the public at 8 a.m. this morning. And just like Punxatawney Phil, he predicted six more weeks of winter. D.C. councilman Jack Evans attended the celebration, and declared that from now on, February 2 will be D.C. Groundhog Day. So even if they didn't get a real groundhog, Dupont Festival at least got themselves a new holiday.
You can read the full story on the WTOP website.
If you're wondering who Potomac Phil is, don't be alarmed, he's relatively new. He's also not alive, but that's beside the point. WTOP reported yesterday that Dupont Festival, a Washington D.C.-based nonprofit, was seeking a live groundhog for its first annual Groundhog Day celebration in Dupont Circle Park.
The nonprofit had already spoken with the D.C. National Zoo, but they only offered prairie dogs, which didn't quite fit the bill. The WTOP article directed readers to the organization's website, where anyone with information on how to get a live groundhog could contact them.
Dupont Festival eventually had to settle for a stuffed groundhog donated from Miss Pixie's Furnishings & Whatnot, a local D.C. store. Thus was born Potomac Phil, who made his prediction for winter known to the public at 8 a.m. this morning. And just like Punxatawney Phil, he predicted six more weeks of winter. D.C. councilman Jack Evans attended the celebration, and declared that from now on, February 2 will be D.C. Groundhog Day. So even if they didn't get a real groundhog, Dupont Festival at least got themselves a new holiday.
You can read the full story on the WTOP website.
Wednesday, February 1, 2012
Garth Brooks Gets His Donation Back
An Oklahoma hospital has been ordered to pay $1 million to country singer Garth Brooks after failing to build a women's health center in honor of his late mother.
The details of the case were laid out in a story that originally appeared in the previous edition of NPT Weekly. Brooks donated $500,000 to Yukon, Okla.-based Integris Canadian Valley Region Hospital with the understanding that the gift would help fund a women's health center named after his mother, Colleen Brooks, who died in 1999. He filed a suit against the hospital after the center had been built without his mother's name attached. The jury ruled in favor of Brooks on Jan. 24, awarding him his original donation plus an additional $500,000 in punitive damages. A spokesperson for Integris said that the hospital does not expect to have to cut any services or programs in light of the settlement, as the money will not come from their operating budget.
This case shows the importance of the donor having a written agreement with the nonprofit when making a major gift. Jeffrey Tenenbaum, a nonprofit attorney at Venable LLP in Washington, D.C., told NPT that it's uncommon to have only a verbal agreement with the client. Said Tenenbaum: “This case is the perfect example of why verbal commitments do not work out.”
Tenenbaum goes on to say that the written agreement should lay out the dollar amount that will be paid, whether or not the contract is enforceable, and provide contingencies if the original purpose of the contribution cannot be fulfilled. While the case ultimately worked out in Brooks' favor, these steps are highly advisable to prevent legal issues like this from happening.
You can read the full story in The NonProfit Times.
The details of the case were laid out in a story that originally appeared in the previous edition of NPT Weekly. Brooks donated $500,000 to Yukon, Okla.-based Integris Canadian Valley Region Hospital with the understanding that the gift would help fund a women's health center named after his mother, Colleen Brooks, who died in 1999. He filed a suit against the hospital after the center had been built without his mother's name attached. The jury ruled in favor of Brooks on Jan. 24, awarding him his original donation plus an additional $500,000 in punitive damages. A spokesperson for Integris said that the hospital does not expect to have to cut any services or programs in light of the settlement, as the money will not come from their operating budget.
This case shows the importance of the donor having a written agreement with the nonprofit when making a major gift. Jeffrey Tenenbaum, a nonprofit attorney at Venable LLP in Washington, D.C., told NPT that it's uncommon to have only a verbal agreement with the client. Said Tenenbaum: “This case is the perfect example of why verbal commitments do not work out.”
Tenenbaum goes on to say that the written agreement should lay out the dollar amount that will be paid, whether or not the contract is enforceable, and provide contingencies if the original purpose of the contribution cannot be fulfilled. While the case ultimately worked out in Brooks' favor, these steps are highly advisable to prevent legal issues like this from happening.
You can read the full story in The NonProfit Times.
February 1 Issue Of NPT Is Out!
The newest issue of The NonProfit Times is now out! Here's a look at some of the stories you can expect to find in this month's issue:
Special Report
Special Report
- Executive Pay Inching Up: This report studies the trends in nonprofit executive pay over the past year. All of this information comes from our 2011 Salary and Benefits Report.
- Blackbaud's Buying Spree Hits $431 With Convio Deal: Get the full details on the big merger between Blackbaud and Convio, including reaction from key players in the nonprofit sector.
- At Historically Black Schools, A Need To Go Mainstream: NPT takes a look at historically black colleges and universities (HCBUs), and their philosophy towards fundraising and donor acquisition.
- Fundraising On America's Plains: Direct response guru Larry May sits down with Kory Christianson of St. Joseph's Indian school for a conversation on fundraising and direct mail. This is the latest in NPT's DM Masterclass Series.
- New Year, New Problems: We take a look at some of the issues that have come up in this new year, including NJ Gov. Christie's decision to pocket-veto a bill that would have placed restrictions on volunteer emergency rescue squads.
Tuesday, January 31, 2012
Alabama Gives Day Expected To Generate Crucial Funding
With many states across the country having success with the Gives Day movement, Alabama has decided to join the fun for the first time.
The Montgomery Advertiser reported Sunday that the first annual Alabama Gives Day will begin on Thursday, Feb. 2. Beginning at 12:01 a.m., Alabamians will be able to donate to charities via an online portal alabamagivesday.org. More than 800 nonprofits within 12 categories are registered to participate in the event. Among the participating nonprofits are the Hospice of Montgomery, the Mid-Alabama Coalition for the Homeless, and the Montgomery Area Food Bank.
The Gives Day movement has been very popular since its inception in Minnesota in 2009. Its purpose was to increase philanthropy and increase donor acquisition for nonprofits. The concept has had plenty of success stories, like Colorado Gives Day, which recently had 52,000 donations totaling $12 million. There is no monetary goal set for Alabama Gives Day; organizers simply want as many nonprofits as possible to participate.
If the Gives Days of the last few years are any indication, Alabama Gives Day should be a great source of funding for local nonprofits. Read more about the event in The Montgomery Advertiser.
The Montgomery Advertiser reported Sunday that the first annual Alabama Gives Day will begin on Thursday, Feb. 2. Beginning at 12:01 a.m., Alabamians will be able to donate to charities via an online portal alabamagivesday.org. More than 800 nonprofits within 12 categories are registered to participate in the event. Among the participating nonprofits are the Hospice of Montgomery, the Mid-Alabama Coalition for the Homeless, and the Montgomery Area Food Bank.
The Gives Day movement has been very popular since its inception in Minnesota in 2009. Its purpose was to increase philanthropy and increase donor acquisition for nonprofits. The concept has had plenty of success stories, like Colorado Gives Day, which recently had 52,000 donations totaling $12 million. There is no monetary goal set for Alabama Gives Day; organizers simply want as many nonprofits as possible to participate.
If the Gives Days of the last few years are any indication, Alabama Gives Day should be a great source of funding for local nonprofits. Read more about the event in The Montgomery Advertiser.
Managing Nonprofit Diversity Conflict
Diversity has become the goal at every level of American life. Efforts to promote it have been rightfully applauded. Here's the real question: Are organizations correctly handling these efforts?
One reason people flock toward nonprofit jobs is the diversity in culture and the working backgrounds they support. There is a bigger lesson organizations missed if they are only promoting diversity for diversity's sake. In his book "The End of Diversity as We Know It," Martin R. Davidson argues that a better aim is to embrace and build upon differences among employees.
Davidson, who was a chief development officer at the University of Virginia, also acknowledges that diversity initiatives can cause resistance and even conflict among employees. This can manifest itself in what Davidson calls "identity abrasions," feelings of resentment or defensiveness that come up when people are criticized for being insensitive or ignorant. He wrote that to make these teachable moments positive experiences for all parties involved, he recommends human resources officers implement five "principles of behavior." They are:
One reason people flock toward nonprofit jobs is the diversity in culture and the working backgrounds they support. There is a bigger lesson organizations missed if they are only promoting diversity for diversity's sake. In his book "The End of Diversity as We Know It," Martin R. Davidson argues that a better aim is to embrace and build upon differences among employees.
Davidson, who was a chief development officer at the University of Virginia, also acknowledges that diversity initiatives can cause resistance and even conflict among employees. This can manifest itself in what Davidson calls "identity abrasions," feelings of resentment or defensiveness that come up when people are criticized for being insensitive or ignorant. He wrote that to make these teachable moments positive experiences for all parties involved, he recommends human resources officers implement five "principles of behavior." They are:
- Pausing: There is a natural tendency to react, but taking time to identify feelings and consider options helps in responding effectively to criticism.
- Connecting to larger goals: Meaningful goals make it easier to remember why it is worth engaging with another.
- Questioning yourself: This will help you come to a realistic and accurate understanding of what is happening in the exchange.
- Seeking out balanced support: Rather than just complaining to your friends who will have your back, seek out the counsel of trusted colleagues.
- Shifting mindset towards opportunity: It takes persistent willingness to be introspective.
Monday, January 30, 2012
The Role Of Technology In Philanthropy
The World Economic Forum, one of the largest gathering of business and political types, began last week in Davos, Switzerland. Where there is talk of money, philanthropy will naturally become a central topic.
The New York Times wrote a blog post last Friday about a panel discussion at the forum on the role technology plays in philanthropy. Hosted by the Victor Pinchuck Foundation, the program began with a discussion about "e-philanthropy," specifically mobile payments. This technology has allowed donors to give small amounts of money to causes. A good example of its importance was seen in the 2010 earthquake in Haiti.
Alec Ross, a senior advisor on innovation to Secretary of State Hillary Clinton, shared his experiences with mobile giving to the panel. He said that the government put together a mobile giving program in the aftermath of the earthquake. The program allowed donors to text the word "Haiti" to a specific number, which would send a $10 donation to relief efforts. The program ended up raising $35 million in two weeks, completely shattering their expectations.
Although this program was successful, all the panelists agreed that one of the main problems with philanthropy is transparency; people want to have a better idea of where their money is going. Sean Parker, founder of Napster and former president of Facebook, cited a nonprofit that he helped finance as an example of good transparency. Charity Water, a nonprofit organization that advocates for clean drinking water around the world, developed online tools for their website that show donors how their money is being used. Parker said that this kind of online fundraising should be adapted by all nonprofits to give donors a better sense of security.
Read more about this topic in The New York Times.
The New York Times wrote a blog post last Friday about a panel discussion at the forum on the role technology plays in philanthropy. Hosted by the Victor Pinchuck Foundation, the program began with a discussion about "e-philanthropy," specifically mobile payments. This technology has allowed donors to give small amounts of money to causes. A good example of its importance was seen in the 2010 earthquake in Haiti.
Alec Ross, a senior advisor on innovation to Secretary of State Hillary Clinton, shared his experiences with mobile giving to the panel. He said that the government put together a mobile giving program in the aftermath of the earthquake. The program allowed donors to text the word "Haiti" to a specific number, which would send a $10 donation to relief efforts. The program ended up raising $35 million in two weeks, completely shattering their expectations.
Although this program was successful, all the panelists agreed that one of the main problems with philanthropy is transparency; people want to have a better idea of where their money is going. Sean Parker, founder of Napster and former president of Facebook, cited a nonprofit that he helped finance as an example of good transparency. Charity Water, a nonprofit organization that advocates for clean drinking water around the world, developed online tools for their website that show donors how their money is being used. Parker said that this kind of online fundraising should be adapted by all nonprofits to give donors a better sense of security.
Read more about this topic in The New York Times.
Sept. 11 Memorial's Executive Salaries Comes Under Fire
The last thing anybody expected was controversy at the September 11 Memorial and Museum at the World Trade Center. But that's exactly what has happened after a former employee received a severance package.
The Wall Street Journal reported today that Joan Garner, former executive vice president of design and construction at the memorial, received $296,565 in compensation after leaving her position in May 2010. That brought her total salary for the year up to $439,463, making her the highest paid employee at the organization.
Tax records for the organization, which were first reported on by The Record of Bergen County, show that seven other executives received compensation that totaled more than $200,000. Four of those executives received more than $300,000, including the president, Joseph Daniels, who earned $378,288 in salary and benefits. All in all, the foundation spent $6.5 million on salaries and other benefits in 2010, a sharp increase from the $5.3 million in 2009.
The executive pay at the memorial has come under heavy fire from the families of 9/11 victims, who have called on Mayor Michael Bloomberg, the organization's chairman, to get the salaries under control. However, Bloomberg has long defended the compensation at the memorial and other nonprofits, and his spokesperson said they are in line with similar nonprofits.
Ken Berger, president and CEO of Charity Navigator, disagreed with the mayor. He told The Journal that the salaries in question are on the high end of the spectrum, and that an organization with such an important public mission shouldn't be spending money this way. His comments certainly fall in line with the outraged comments from families who lost loved ones during 9/11.
You can read more about this controversy in The Wall Street Journal. In addition, you can read all about the construction of the many September 11 memorials in The NonProfit Times.
The Wall Street Journal reported today that Joan Garner, former executive vice president of design and construction at the memorial, received $296,565 in compensation after leaving her position in May 2010. That brought her total salary for the year up to $439,463, making her the highest paid employee at the organization.
Tax records for the organization, which were first reported on by The Record of Bergen County, show that seven other executives received compensation that totaled more than $200,000. Four of those executives received more than $300,000, including the president, Joseph Daniels, who earned $378,288 in salary and benefits. All in all, the foundation spent $6.5 million on salaries and other benefits in 2010, a sharp increase from the $5.3 million in 2009.
The executive pay at the memorial has come under heavy fire from the families of 9/11 victims, who have called on Mayor Michael Bloomberg, the organization's chairman, to get the salaries under control. However, Bloomberg has long defended the compensation at the memorial and other nonprofits, and his spokesperson said they are in line with similar nonprofits.
Ken Berger, president and CEO of Charity Navigator, disagreed with the mayor. He told The Journal that the salaries in question are on the high end of the spectrum, and that an organization with such an important public mission shouldn't be spending money this way. His comments certainly fall in line with the outraged comments from families who lost loved ones during 9/11.
You can read more about this controversy in The Wall Street Journal. In addition, you can read all about the construction of the many September 11 memorials in The NonProfit Times.
Friday, January 27, 2012
Featured Nonprofit Job: Higher Education Research and Policy Analyst
Cross-Posted From Nonprofit Jobs
Looking for a nonprofit job in sunny Atlanta, GA? The Southern Education Foundation (SEF) has just the position for you.
Effective immediately, SEF is looking for a highly motivated candidate to fill its brand new Higher Education Research and Policy Analyst role. This position is being created to help expand SEF's ability to conduct research, analyze policy, and develop programming to improve access to college and degree completion nationally. A particular focus will be placed on the successs of low-income and minority students. As such, all interested applicants should have a strong passion for working with these types of students, and a strong knowledge of Minority-Serving institutions.
Interested in this position? Before you apply, make sure you fit the following requirements:
Looking for a nonprofit job in sunny Atlanta, GA? The Southern Education Foundation (SEF) has just the position for you.
Effective immediately, SEF is looking for a highly motivated candidate to fill its brand new Higher Education Research and Policy Analyst role. This position is being created to help expand SEF's ability to conduct research, analyze policy, and develop programming to improve access to college and degree completion nationally. A particular focus will be placed on the successs of low-income and minority students. As such, all interested applicants should have a strong passion for working with these types of students, and a strong knowledge of Minority-Serving institutions.
Interested in this position? Before you apply, make sure you fit the following requirements:
- A doctorate degree in higher education, public policy, or a related field.
- Experience with conducting higher education research and reporting.
- Communication skills are a must, including written, oral, and electronic.
Manassas City Council Stands By Nonprofit Funding Method
Despite a push for change, the Manassas City Councils has decided to stick with its current method of funding nonprofit and arts groups.
The Washington Post reported yesterday that the Council voted unanimously to keep its current funding method rather than switch to another that is used in Prince William County. That system appoints a citizen panel to make recommendations on which nonprofit groups to fund and how much. It has been under fire by groups like the Prince William County Symphony, whose members say too much money has gone towards the Manassas Ballet ($1.6 million since fiscal year 2005). One of the biggest advocates for changing the current system is Council member Mark D. Wolfe (R) whose wife, Amy, is the ballet's artistic director. Wolfe abstained from the vote given his relationship to the ballet.
The city decided to keep the current system in part because it believes taxpayer money should be handled by the Council. The current funding system in Manassas appoints a subcommittee of council members who make recommendations to the City Council on which nonprofits should receive support. One change was made, however: The subcommittee will now have only two council members, instead of the usual three.
You can read more about this story in The Washington Post.
The Washington Post reported yesterday that the Council voted unanimously to keep its current funding method rather than switch to another that is used in Prince William County. That system appoints a citizen panel to make recommendations on which nonprofit groups to fund and how much. It has been under fire by groups like the Prince William County Symphony, whose members say too much money has gone towards the Manassas Ballet ($1.6 million since fiscal year 2005). One of the biggest advocates for changing the current system is Council member Mark D. Wolfe (R) whose wife, Amy, is the ballet's artistic director. Wolfe abstained from the vote given his relationship to the ballet.
The city decided to keep the current system in part because it believes taxpayer money should be handled by the Council. The current funding system in Manassas appoints a subcommittee of council members who make recommendations to the City Council on which nonprofits should receive support. One change was made, however: The subcommittee will now have only two council members, instead of the usual three.
You can read more about this story in The Washington Post.
Thursday, January 26, 2012
Examples Of Permitted Political Activities
Nonprofit organizations are forbidden to participate in any activity that favors or opposes any political candidate, but that doesn’t mean they can’t be involved with politics at all.
While an organization can not intervene on behalf of a political campaign, it may undertake certain types of nonpartisan political activities. Yet even in these situations, organizations still need to tread lightly or risk the wrath of the IRS.
In her book “Good Counsel,” Lesley Rosenthal lists some permissible political events for nonprofit organizations:
While an organization can not intervene on behalf of a political campaign, it may undertake certain types of nonpartisan political activities. Yet even in these situations, organizations still need to tread lightly or risk the wrath of the IRS.
In her book “Good Counsel,” Lesley Rosenthal lists some permissible political events for nonprofit organizations:
- Voter Education and Voter Registration Drives: These are a-OK for nonprofits as long as there are no biased references to individual candidates or political parties. Timing is also an important factor for the permissibility of these events. For example, distributing newsletters on a candidate’s voting record on issues important to the nonprofit would probably constitute intervention during an election year.
- Speeches by Candidates: An organization may invite a political candidate to speak at an event, but only if opposing candidates for the same office are given equal time. The event must not advocate for a certain position.
- Facility Rental: A nonprofit that has space for public gatherings may rent space to a candidate looking to make a space, so long as the organization charges the campaign its customary fees and makes the space available to opposing candidates. In addition, the space must be regularly offered by the organization and not specifically for the candidate.
Nonprofit Jobs On The Rise
Cross-Posted from Nonprofit Jobs
A new study by Johns Hopkins University is giving job seekers yet another reason to flock towards nonprofit jobs.
The NonProfit Times wrote about the report from the Baltimore, Md.-based school that showed that jobs in the nonprofit sector increased an average of 2.1 percent from 2000 to 2010, while for-profit jobs decreased by an average of 0.6 percent annually. This trend even held up during the height of the Great Recession (between 2007 and 2009), with nonprofit employment increasing at an average of 1.9 percent per year while for-profit work declined. The only year in the past decade that nonprofits didn't outperform for-profits was 2005, when both sectors reported a 2-percent increase in jobs.
If you are wondering which industries increased the most, the JHU study has answers to that, too. It cited the greatest increase in jobs in the following fields: Healthcare, education, and social assistance. Those three happen to be the largest employers in the nonprofit sector, with healthcare jobs making up 57 percent of the nonprofit workforce.
There was one bit of negative news for nonprofits. According to the report, for-profit businesses outpaced nonprofit growth when it came to social assistance, education, and nursing home care. As a result, nonprofits in these fields lost market share to for-profits. The reasons for this aren't exactly clear, but insiders are blaming market conditions and the moral tenets of competing industries, which tend to become muddled in tough economic times.
You can read more about JHU's study of nonprofit jobs in The NonProfit Times.
A new study by Johns Hopkins University is giving job seekers yet another reason to flock towards nonprofit jobs.
The NonProfit Times wrote about the report from the Baltimore, Md.-based school that showed that jobs in the nonprofit sector increased an average of 2.1 percent from 2000 to 2010, while for-profit jobs decreased by an average of 0.6 percent annually. This trend even held up during the height of the Great Recession (between 2007 and 2009), with nonprofit employment increasing at an average of 1.9 percent per year while for-profit work declined. The only year in the past decade that nonprofits didn't outperform for-profits was 2005, when both sectors reported a 2-percent increase in jobs.
If you are wondering which industries increased the most, the JHU study has answers to that, too. It cited the greatest increase in jobs in the following fields: Healthcare, education, and social assistance. Those three happen to be the largest employers in the nonprofit sector, with healthcare jobs making up 57 percent of the nonprofit workforce.
There was one bit of negative news for nonprofits. According to the report, for-profit businesses outpaced nonprofit growth when it came to social assistance, education, and nursing home care. As a result, nonprofits in these fields lost market share to for-profits. The reasons for this aren't exactly clear, but insiders are blaming market conditions and the moral tenets of competing industries, which tend to become muddled in tough economic times.
You can read more about JHU's study of nonprofit jobs in The NonProfit Times.
Global Fund Gets Major Gift From Gates Foundation
These are tough economic times we live in, but philanthropic organizations are still willing to give big money to causes that improve the lives of people in need.
That was the key message that Bill Gates sent when his organization, the Bill & Melinda Gates Foundation, committed $750 million to the Global Fund to Fight AIDS, Tuberculosis, and Malaria. The major gift came in the form of a promissory note, a new funding mechanism that allows an organization to distribute funds based on immediate needs, which leads to greater impact.
The Gates Foundation has always placed a high priority on deadly diseases with its philanthropic efforts. The organization has already contributed $650 million to the Global Fund since its inception 10 years ago at the World Economic Forum, which is a gathering of the world's top business and political leaders. In addition, the foundation has a Global Health Program that uses advances in technology to help save lives in poor nations. Most of this work is done through grants to partner organizations.
Since 2002, investments to the Global Fund have helped develop innovative treatments for AIDS, tuberculosis, and malaria in developing countries around the world. The organization has provided antiretroviral treatment to 3.3 million people, detected and treated 8.2 million people with tuberculosis, and provided 230 million bed nets to families to prevent malaria. These efforts and more have helped save 100,000 lives every month.
You can read more about this story in The NonProfit Times.
That was the key message that Bill Gates sent when his organization, the Bill & Melinda Gates Foundation, committed $750 million to the Global Fund to Fight AIDS, Tuberculosis, and Malaria. The major gift came in the form of a promissory note, a new funding mechanism that allows an organization to distribute funds based on immediate needs, which leads to greater impact.
The Gates Foundation has always placed a high priority on deadly diseases with its philanthropic efforts. The organization has already contributed $650 million to the Global Fund since its inception 10 years ago at the World Economic Forum, which is a gathering of the world's top business and political leaders. In addition, the foundation has a Global Health Program that uses advances in technology to help save lives in poor nations. Most of this work is done through grants to partner organizations.
Since 2002, investments to the Global Fund have helped develop innovative treatments for AIDS, tuberculosis, and malaria in developing countries around the world. The organization has provided antiretroviral treatment to 3.3 million people, detected and treated 8.2 million people with tuberculosis, and provided 230 million bed nets to families to prevent malaria. These efforts and more have helped save 100,000 lives every month.
You can read more about this story in The NonProfit Times.
Wednesday, January 25, 2012
Contract Law Basics
Contracts can be intimidating things to nonprofits. Once you put your signature on that piece of paper, it seems like the whole world changes. Everything you do from that point on must be weighed carefully. They sure can be a hassle, but contracts are necessary to allow organizations to get the resources they need to carry out their programs.
Every nonprofit program is different, but they all have at least one thing in common: Concern with contract law. Contracts can provide a lot of legal issues for organizations. Management always needs to be prepared for any situation.
In her book "Good Counsel," Lesley Rosenthal lays out the basics of contract law. She writes that contracts must be written with reasonable specificity so that each party can perform their necessary obligations under the agreement. These specifics include the parties to the contract, when or over what period of time the exchange of obligations is to occur, and any other details that are determined to be important to the parties. If none of these details are included the contract may not be considered valid, because it only expresses that an agreement has been reached, rather than a binding agreement.
Once there is an offer and acceptance to an agreement, Rosenthal writes that the parties need to render the agreement in writing and sign the document. This will make the agreement binding. Some organizations do confirm their contracts with oral agreements, but it is safer to do it in writing so you have something to refer back to should an issue arise. Note that "in writing" doesn't necessarily mean on paper. Electronic contracts are equally recognized in most places as binding for both parties.
Now that the contract is written, you can put it away and begin living up to your end of the bargain for the life of the agreement. You will likely never have to look at the contract again unless a problem arises--which is hopefully something you and your management team will be able to avoid.
Every nonprofit program is different, but they all have at least one thing in common: Concern with contract law. Contracts can provide a lot of legal issues for organizations. Management always needs to be prepared for any situation.
In her book "Good Counsel," Lesley Rosenthal lays out the basics of contract law. She writes that contracts must be written with reasonable specificity so that each party can perform their necessary obligations under the agreement. These specifics include the parties to the contract, when or over what period of time the exchange of obligations is to occur, and any other details that are determined to be important to the parties. If none of these details are included the contract may not be considered valid, because it only expresses that an agreement has been reached, rather than a binding agreement.
Once there is an offer and acceptance to an agreement, Rosenthal writes that the parties need to render the agreement in writing and sign the document. This will make the agreement binding. Some organizations do confirm their contracts with oral agreements, but it is safer to do it in writing so you have something to refer back to should an issue arise. Note that "in writing" doesn't necessarily mean on paper. Electronic contracts are equally recognized in most places as binding for both parties.
Now that the contract is written, you can put it away and begin living up to your end of the bargain for the life of the agreement. You will likely never have to look at the contract again unless a problem arises--which is hopefully something you and your management team will be able to avoid.
Romney's Tax Returns Shed Light On His Giving
One of the big issues that had surrounded GOP presidential hopeful Mitt Romney was his tax returns. Romney was under intense pressure to release them and he said they would be available in April. After a loss in the South Carolina primary last week, he decided he would hasten that schedule.
The NonProfit Times took a look at Romney's tax payments and found that he had given more to charitable organizations ($7 million) than he paid in federal income taxes ($6.2 million). During a recent Republican debate in Florida, Romney said that the American public would be satisfied that he had paid his fair share during the past two years. Let's take a deeper look and see exactly where Romney's money went:
Read the full article on Romney's tax returns in The NonProfit Times.
The NonProfit Times took a look at Romney's tax payments and found that he had given more to charitable organizations ($7 million) than he paid in federal income taxes ($6.2 million). During a recent Republican debate in Florida, Romney said that the American public would be satisfied that he had paid his fair share during the past two years. Let's take a deeper look and see exactly where Romney's money went:
- The largest charitable contribution noted was a $1,525,000 donation to the Church of Jesus Christ of Latter-day Saints. Romney is a noted member of the Morman faith, and he has donated at least $4.1 million to the church over the past two years.
- For 2010, available tax returns show Romney's itemized deductions totaled $4,519,766. His total income was $21,661,344, with an adjusted gross income of $21,646,507.
- None of his income came from wages. They came instead from capital gains, stock dividends, and interest payments.
- Romney had an effective tax rate of 13.9 percent. Note that, according to the nonpartisan Tax Foundation, the average effective tax rate for millionaires is 25 percent.
Read the full article on Romney's tax returns in The NonProfit Times.
Tuesday, January 24, 2012
Planning The Hiring Process
After much debate, your organization has identified the area that needs help and has posted the corresponding advertisement to an online job board. Now what?
There's a lot of work ahead of you while you wait for qualified applicants to apply. One of the things you can do to make this work a little less painful is to lay out a hiring process. In his book "Nonprofit Management 101," Darian Rodriguez Heyman says having such a plan is essential to evaluate candidates. He stresses that any hiring process should allow applicants multiple opportunities to provide evidence of their past success.
Heyman recommends the following process to successfully narrow down your nonprofit's pool of applicants:
There's a lot of work ahead of you while you wait for qualified applicants to apply. One of the things you can do to make this work a little less painful is to lay out a hiring process. In his book "Nonprofit Management 101," Darian Rodriguez Heyman says having such a plan is essential to evaluate candidates. He stresses that any hiring process should allow applicants multiple opportunities to provide evidence of their past success.
Heyman recommends the following process to successfully narrow down your nonprofit's pool of applicants:
- Job application review
- Phone screen
- Initial in-person job interview
- Follow-up interview (as many as you deem necessary)
- Reference and background checks
- Negotiation and hiring
- Clarity: Everyone involved knows exactly what you want.
- Consistency: Every candidate participates in the same process.
- Equity: Every candidate is treated equally.
- Legality: The process is nondiscriminatory.
Subscribe to Enewsletters From The NonProfit Times
Can't wait for the new issue of The NonProfit Times? Get your nonprofit fix subscribing to our enewsletters! We print six in all, but I want to focus on three that are delivered every week: NPT Weekly, Instant Fundraising, and NPT Jobs.
- NPT Weekly: This newsletter addresses matters pertaining to all aspects of nonprofit management, fundraising, financial management, direct marketing, technology, legal issues and human resources. It contains one main article, and three management tips.
- Instant Fundraising: Geared toward keeping development officers and executive directors up to date with the latest fundraising developments, offers news, tips and proven methods to fund organizations. Like Weekly, it contains one main article, and three management tips.
- NPT Jobs: Unlike the previous two newsletters, the sign-up form for NPT Jobs is located on our online career center. This newsletter contains links to the three nonprofit jobs on our job board, as well as a career advice article.
Monday, January 23, 2012
Nonprofit Volunteer Accused Of Embezzling
Volunteers are great help for any nonprofit, but one California-based nonprofit is dealing with an issue that highlights the need for strong vetting of potential workers.
Elizabeth Lower is accused of embezzling around $25,000 from Empty Cradle, according to a report from Channel 10 News San Diego. A member of the organization, which helps families deal with the loss of children, spoke to the station about the situation, which took the nonprofit by surprise. Lower first came to Empty Cradle asking for help after her 6-month old daughter died of sudden infant death syndrome (SIDS). Although she was struggling with the loss, she wanted to volunteer for the organization.
There were no red flags to be found at first. It wasn't until a year ago that Empty Cradle noticed something was wrong. They found they were unable to get in touch with Lower after they found an unpaid bill. Upon closer inspection, they found they had lost between $25,000 and $30,000 from their accounts. Just like that, all of their money was gone.
Lower was arrested at her apartment last Thursday and will be arraigned today. In the mean time, Empty Cradle is left only being able to perform its core services. The case highlights how careful organizations have to be when hiring new volunteers or employees. It wasn't that long ago that the Girl Scouts of America Greater New York affiliate went through a similar situation when their finance director pleaded guilty to stealing thousands of dollars from the organization.
Read the full story on Channel 10 News San Diego.
Elizabeth Lower is accused of embezzling around $25,000 from Empty Cradle, according to a report from Channel 10 News San Diego. A member of the organization, which helps families deal with the loss of children, spoke to the station about the situation, which took the nonprofit by surprise. Lower first came to Empty Cradle asking for help after her 6-month old daughter died of sudden infant death syndrome (SIDS). Although she was struggling with the loss, she wanted to volunteer for the organization.
There were no red flags to be found at first. It wasn't until a year ago that Empty Cradle noticed something was wrong. They found they were unable to get in touch with Lower after they found an unpaid bill. Upon closer inspection, they found they had lost between $25,000 and $30,000 from their accounts. Just like that, all of their money was gone.
Lower was arrested at her apartment last Thursday and will be arraigned today. In the mean time, Empty Cradle is left only being able to perform its core services. The case highlights how careful organizations have to be when hiring new volunteers or employees. It wasn't that long ago that the Girl Scouts of America Greater New York affiliate went through a similar situation when their finance director pleaded guilty to stealing thousands of dollars from the organization.
Read the full story on Channel 10 News San Diego.
Webinar: Moving Nonprofit Financials To The Cloud
When someone talks to you about the cloud, is your first thought to look into flight courses? If that's the case, you might want to attend our upcoming webinar.
The NonProfit Times and Intacct are proud to host a free webinar on February 14th. It's called "Moving Your Nonprofit Financials to the Cloud: The Do's and Don'ts," and it's a must-attend event for any organization looking into this new technology.
As a nonprofit organization, your accounting needs are more challenging than a for-profit corporation's financials. You probably hear many people around the industry talking about cloud computing, but the last thing you want is to do is deal with another new technology. Is it really worth all the hassle? By attending the upcoming webinar, you will get answers to all the questions you have about the cloud, and learn why thousands of nonprofits are using it to gain control of their finances. You can even ask questions.
The speakers for this event will be nonprofit technology and business process expert Jacqueline Tiso from JMT Consulting Group, and Dan Drucker from Intacct. Topics include:
The NonProfit Times and Intacct are proud to host a free webinar on February 14th. It's called "Moving Your Nonprofit Financials to the Cloud: The Do's and Don'ts," and it's a must-attend event for any organization looking into this new technology.
As a nonprofit organization, your accounting needs are more challenging than a for-profit corporation's financials. You probably hear many people around the industry talking about cloud computing, but the last thing you want is to do is deal with another new technology. Is it really worth all the hassle? By attending the upcoming webinar, you will get answers to all the questions you have about the cloud, and learn why thousands of nonprofits are using it to gain control of their finances. You can even ask questions.
The speakers for this event will be nonprofit technology and business process expert Jacqueline Tiso from JMT Consulting Group, and Dan Drucker from Intacct. Topics include:
- What are the key financial management technology issues facing nonprofit organizations today?
- What are the risks moving to cloud computing and how do you protect yourself?
- How secure is the cloud and what do you look for when evaluating a vendor?
- What are the benefits and challenges of cloud computing for the finance department?
Conducing A Job Analysis
Cross-Posted from Nonprofit Jobs
How well do you know the jobs at your nonprofit? Even if you think you have it all covered, it's important to undergo a thorough analysis of the positions at your organization.
A job analysis identifies and describes what is happening in the jobs at a nonprofit. All organizations must undergo this process, as it helps to differentiate job and performance requirements based on job content, specifications, and working conditions. All of this information will be crucial when developing a job description.
In "The Big Book Of HR," Barbara Mitchell and Cornelia Gamlem describe the information your organization should obtain in a job analysis:
How well do you know the jobs at your nonprofit? Even if you think you have it all covered, it's important to undergo a thorough analysis of the positions at your organization.
- A job's context or its purpose, its work environment, and its place in the organization.
- The duties and responsibilities that employees carry out in the position.
- How people in the job are expected to act while accomplishing their work.
- Get direct employee and supervisor input.
- Gather data from multiple incumbents and supervisors.
- Use techniques that yield data that is concise, easy to update, and limits bias.
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