Private Donations For Public Schools

Most cities or towns have multiple public schools in their district.  So is it right for one public school to receive an influx of private donations while others don't get as much?

That is the question raised in a recent article in The Los Angeles Times.  The idea itself doesn't seem too controversial.  If a group of parents want their students to enjoy higher quality learning, why shouldn't they donate money so they can buy things like new computers?  The situation becomes fuzzier when you consider that there are schools in the same district that lack many of these same amenities.

The Times piece offers the case of the Santa Monica-Malibu United School District as the poster child for this discussion.  PTA donations add up to more than $2,100 per student at Point Dume Marine Science Elementary School in Malibu.  McKinley Elementary in Santa Monica, on the other hand, gets only an average $96 per student in donations.  Only 2% of the students at Point Dume are poor, and the school uses the money for, among other things, classroom aides, a reading program, and choral music.  About 46% of the student population at McKinley is considered poor.

The drastic difference in donations between the two schools has sparked a debate in the district, where the school board is considering some changes.  This includes creating a district-wide nonprofit that would collect donations for personnel and distribute them evenly amongst the schools.  Donations for supplies would stay with individual schools.  Under this system, half of the donations to Point Dume would be in the hands of the nonprofit.

Parents of children at wealthier schools argue that it's their money, and they should be able to do what they want with it.  But, as the article mentions, California courts have continuously ruled that there must be an equal distribution to all public schools. 

Read the full article in The Los Angeles Times, and chime in with your thoughts on the topic.  For additional reading, check out this article from NPT about public school foundations.

Indiana Nonprofit Defends Political Contribution

A nonprofit in Portage, Indiana is defending a $500 contribution to the local Mayor's re-election campaign.  An article on PortageCommunity.com reported that Bert Cook, executive director of the Portage Economic Development Corp (PEDCO)., said they did not consider the participation in a Sept. 19 golf outing as a campaign contribution to incumbent Democratic Mayor Olga Velazquez, but as a chance to network with the city's business and community leaders.

Cook further explained to PortageCommunity that even if the money was supposed to be a political contribution, his accountants told him that it is legal for the organization to spend up to 20 percent of its yearly total expenditures on lobbying.  PEDCO receives almost half of its annual funding from tax dollars, but the contribution came from organization's marketing budget, which contains only private contributions, according to Cook.  Velazquez has a seat on PEDCO's board of directors, though Cook says she is not on the executive committee, which has a say in the decisions the organization makes.  Cook says he will re-evaluate the decision to attend the fundraiser, and probably will avoid similar events in the future.

Lobbying has long been a source of discomfort for nonprofits.  Many organizations aren't confident they are allowed to lobby, and lobbying rules are complex and often require disclosure.  You can learn more about nonprofit lobbying by visiting our website.  You should also be sure to read the rest of the PortageCommunity aritcle.

Help Your Nonprofit Get Those End Of Year Donations

Most charitable donations take place that the end of the year. That means that your nonprofit needs to do its best to capture the attention of those in the giving spirit. A great way to do that is to let them know the steps they must do to get the maximum benefit from their donations to your nonprofit. If you don’t capture their attention, somebody else will. That’s why you should be the one. You don’t have to spend hard to come by money to deliver that message. Take advantage of your social media and any free radio time you can get.

What your charitable donors must know:

Your donors must itemize their deductions. If they want to capture the full benefit of their charitable donations they will need to itemize them out on the Schedule A of their tax returns. Otherwise their charitable donations to your nonprofit will not count.

Credit card donations and donations by check must be dated no later than December 31 to count for that given year. It’s okay if your donors do not get the credit card billing statement by year’s end or that the check doesn’t clear. The one thing that must be evident was that the act of donating was done prior to year end for it to be used for that tax year.

Your nonprofit is an IRS approved charity. Let them know that you have the 501(c)(3) status. If you don’t, work on getting that.

Larger donations can be rolled over for up to five years. If your charitable donor exceeds the maximum write-off they can do that year they can move it to the next year.

You have the opportunity to make a difference:
Having a basic understanding of the process for donations and how they benefit your charitable donors will lead your nonprofit to a more prosperous road. You don’t have to be an accountant and you shouldn’t give tax advice, but you can certainly let your donors know that there are great benefits to donating to your nonprofit.

Asking for Money in Tough Times

While it is difficult to ask for money in the best of times, soliciting donations in a terrible economy can be downright unnerving. Even businesses that you are used to going to for donations are facing layoffs and even bankruptcies. Where do you go when every stream seems to be dry? It is time for a little empathy, kindness and understanding. Here are some ideas that might help you to hang in there and keep the faith:

• Be friendly. Being kind and friendly can really make a difference. People are looking for a ray of sunshine. You can be that ray. A little enthusiasm and a positive attitude can be charming. Though it may not convince a struggling individual to give cash, you just might develop a friendship with a potential volunteer. Since time equals money volunteers are worth their weight in gold.
• Get some face time with your prospective donor. People always feel better giving to a cause when they have a personal relationship with the person asking for my donation. It is often preferable to ask for money in person. Dress nicely and always wear a smile.
• Remind the potential donor that their gift is tax-deductible. In most cases, contributions are tax deductable to organizations that have 501(c)(3) status.
• Sell the benefits of making a donation. If you are giving a reward for a donation, be sure to remind the potential donor what they will get in return for their donation. If they are getting special recognition or advertising in exchange, be sure to really talk it up.
• Think thru possible incentives. Businesses are much more likely to make a donation if it would have a benefit to the donor’s business. For example, a local party store would be more likely to donate close to a holiday when the publicity could bring in additional business. Publicity is always a great exchange for a donation and is a win/win incentive.
• Relationships count. If you visit businesses that have a potential benefit from a relationship with your organization you will have a better chance of success. A valuable favor in exchange for a donation provides a foundation for an ongoing partnership.

In difficult economic times everyone is a little more nervous, but history shows that people are still giving, albeit a little less generously, but they are still giving. What are some of your methods for asking for donations in a tough economy?

Go Techno or Bust

After his successful presidential bid, Barack Obama still has $30 million left over. During his presidential campaign, Obama raised an unprecedented $745 million, $104 million of which came in the last five weeks immediately before and after Election Day.

Obama’s outspoken desire to change the way politicians raise money through special interest groups - opting instead to raise money on his own and not participate in the public funding system - fueled his record-breaking fundraising. Close to half of the funds raised were by private donations. What was the key to his success? The internet and Obama’s use of technology stand out as the single key factor in his successful fundraising.

Among the technical tools used were the following:

• Individual Fundraising - An easy web experience employing the tactic of keeping the donor on the fundraising web site throughout the entire contribution process, from initiation through authorization.
• Online Advocacy - These tools put users in a position to get information in the hands of policy makers. The idea is that when constituents participate - i.e. write their legislators reach out to news editors and opinion leaders, sign petitions - you get results.
• Outbound Email - There are many rules governing spam and there is software that can handle outbound email more effectively. With the proper emailing tools, you can stay in touch, raise money, and mobilize action - whether you have a thousand constituents or ten million.
• Social Networking - The power of social networking is extraordinary. These tools give your constituents a voice and ideas can be freely exchanged.
• Content Management - The ability to locate, reuse, repurpose and capture content is supremely important to a successful online experience. The tools are ever more sophisticated, but are also becoming essential.

It is clear that a new day has dawned with regard to fundraising. Fundraisers will not be able to compete for those important donor dollars without a technology plan for the future. What are your thoughts?

Yes We Can.

Election 2008 was a truly historic event with the victory of America’s first African/American President. Excitement filled the air and tens of thousands of Obama supporters gathered in Grant Park, in Chicago to hear his victory speech. The message was one of hope. Though there is much to do to get America back on track, we can pull together and through our hard work, look forward to a brighter future.

President-elect Barack Obama began his speech:

"If there is anyone out there who still doubts that America is a place where all things are possible; who still wonders if the dream of our founders is alive in our time; who still questions the power of our democracy, tonight is your answer…

…It’s been a long time coming, but tonight, because of what we did on this day, in this election, at this defining moment, change has come to America.”

The speech went on to tell the story of Ann Nixon Cooper an African/American woman of 106 years, who was born just a generation past the time of slavery. He told of the many times she was told “you can’t” in her lifetime. Conversely, the words “yes we can,” was the fitting climax to this hard fought victory that will hopefully put an end to racism in this country. These words of optimism brought tears to the eyes of many in the crowd.

Though there is much to do to repair our financial and political systems, there is great hope in the words of our new President Barack Obama. It is this spirit of optimism that propels nonprofit organizations to forge ahead in the momentous task of raising funds for so many noble causes.
The question remains, will those who make large donations hold back on their donations because of the battered economy? According to the latest study An Analysis of Million Dollar Gifts January 2000 – September 2007 from “The Center on Philanthropy” at Indiana University, “Self-made wealth holders make the most gifts. Just over forty percent of the donors making gifts of $1 million or more are ‘self-made’ millionaires. This includes entrepreneurs, investors, and real estate developers. ‘Self-made’ wealthy donors gave several times more, on average, than donors with paychecks or donors with inherited wealth.”Of course, 47% of those who voted in this election, voted for the Republican candidate, John McCaine. Will President-elect Obama be able to unite both his supporters and those who voted against him? On Tuesday, many believed the words of Barack Obama, that he could. What are your thoughts?