$1 Billion In Storm Relief From Foundations, Business

Foundations and corporations in the United States committed more than $1 billion in cash and in-kind giving for relief, recovery and rebuilding in the aftermath of hurricanes Katrina and Rita, according to a report by the Foundation Center.

Contributions by corporate giving programs and corporate foundations accounted for the majority of institutional giving, according to the report, at nearly $520 million or 57 percent of total giving. Moreover, corporate giving focused more on immediate relief, while foundations focused more on recovery and rebuilding.

The report, Giving in the Aftermath of Gulf Coast Hurricanes, is based on an analysis of interviews with 10 of the top 25 independent foundations that responded to the disaster. They include David and Lucile Packard Foundation (Calif.), Ford Foundation (N.Y.), Robert W. Woodruff Foundation (Ga.), Open Society Institute (N.Y.), Bill & Melinda Gates Foundation (Wash.), Robert Wood Johnson Foundation (N.J.), Lilly Endowment (Ind.), Rockefeller Foundation (N.Y.), Charles Stewart Mott Foundation (Mich.), and Walton Family Foundation (Arkansas). Additionally, the report provides a comprehensive record of the resources institutional donors provided.

The overwhelming destruction wrought by hurricanes Katrina and Rita, the failure of the levee system in New Orleans, and the widely criticized government response all served to engage foundations across the country, according to the report.
In fact, of the estimated $6.5 billion (GivingUSA) for the relief effort through June 2007, giving from institutional donors accounted for more than $900 million in cash donations, and more than $100 million in-kind.

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Nonprofits Getting A Lease In Second Life

By Marla E. Nobles

America's Second Harvest (A2H) added another location to its coalition of more than 200 food banks and food-rescue organizations. But unlike the other operations, this one won't be stateside. In fact, donors will have to log on to enter its doors.

The Chicago-based food bank is the latest in a growing number of nonprofits joining the cyberspace community known as Second Life (SL). Some of the third sector neighbors include Fund for Animal Welfare (situated on Progressive Island), Reporters Without Borders (Hangflame), Save the Children (Midnight City), World Vision (Kiwa Northwest), and the Southern California chapter of the National Multiple Sclerosis Society, which launched the virtual "MS Fly" fundraising event this past June.

Another 32 nonprofits are housed on SL's new Nonprofit Commons space, which TechSoup officially launched this past August. There were two simultaneous grand opening celebrations, one in SL and the second "in-world" event in San Francisco. The nonprofits-only space was donated by the world's first virtual millionaire, Anshe Chung, and managed by TechSoup.

Since opening to the public in 2003, SL, created by San Francisco-based Linden Lab, has experienced explosive growth. In April 2004, SL had around 6,000 residents. Just over three years later, that number surpassed 9 million (as of August 21), growing by nearly 3 million this past summer alone.

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Cyber money is just as green

It used to be that only sex generated money on the Web. Well, some nonprofits gone wild have sultry success stories to tell.

The World Wildlife Fund’s ClickReward program, “Miles for the Wild,” raised $23,000 its first year, 1999. Donors received two “ClickMiles” per dollar. The next year, the program was swinging from the trees: $465,000 in online contributions. Sure, there was a one-to-one match for donations of $200 or more that raised $400,000. But, the progress was worth a Tarzan yell.

The Marine Toys for Tots Foundation launched a campaign online that raised more than $200,000. Donors got frequent flyer miles by clicking through to donate. Its first year also was 1999, generating $70,000. The following year the organization doubled donations -- soliciting the 400 donors from the previous year as well as a new list of 5 million names.

Need more evidence of the value of online campaigns?

• World Vision put its gift catalog online. A coordinated program for telephone and online. Orders of medicines and dairy goats for needy people around the world raised $1.6 million during the Christmas 2000 season.
• Cabrini Mission Foundation generated $160,000 to thwart the spread of HIV/AIDS in Swaziland, Africa. Another online campaign raised $50,000 for Cabrini without a single email solicitation. Donors were attracted to the site through educational information.
• Emails worked for nonprofit radio station WBEZ in Chicago to raise $135,000. It held an online pledge drive through an email sent by radio personality Ira Glass, host of “This American Life.”
• The National Arbor Day Foundation’s 2001 online campaign brought out the vote -- to name the national tree. The campaign logged $20,230 in gifts as well.

National Good Governance Practices Pushed In Report

By Mark Hrywna

Governance practices at nonprofits are at the core of a new report from Independent Sector (IS) that suggests, but does not mandate, some 33 principles that nonprofits can follow to develop principles of ethics, accountability and transparency.

The report, the result of 18 months of expert opinion and public comment, is called "Principles for Good Governance and Ethical Practice: A Guide for Charities and Foundation." Released last week by IS and its Panel on the Nonprofit Sector, it is organized into four categories: legal compliance and public disclosure, effective governance, strong financial oversight and responsible fundraising.

Among the suggested items are:

• A charitable organization should have a formally-adopted, written code of ethics with which all trustees, staff and volunteers are familiar and to which they adhere.
• The board should review organizational and governing instruments no less frequently than every five years.
• A charitable organization should neither pay for nor reimburse travel expenditures for spouses, dependents or others who are accompanying someone conducting business for the organization unless they, too, are conducting such business.
• Contributions must be used for purposes consistent with the donor's intent, whether as described in relevant solicitation materials or as specifically directed by the donor.
• An organization should spend a significant percentage of its annual budget on programs that pursue its mission. The budget should also provide sufficient resources for effective administration of the organization, and, if it solicits contributions, for appropriate fundraising activities.

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Don't get comfortable: Get a new job

Staying ahead of the game is essential for maximizing one’s potential for success in any career. There are a number of methods those in the nonprofit sector should keep in mind to achieve a successful and rewarding career.

• Change jobs once in a while. You’ll keep yourself fresh, as well as change your perspective.
• Network. Don’t rule out contacts that are not involved directly with your current duties.
• Care about your cause.
• Join a professional association and get involved. It’s a good way to make contacts and get name recognition.
• Keep your resume up to date. Have different versions of your resume available so you are prepared for various opportunities.
• Dress well. Fernando Lamas said, “It’s better to look good than to feel good,” but if you look good, you’ll feel good, too.
• Keep your skills current. Read up on current affairs, attend conferences and be on the lookout for new trends and technologies.
• Never burn a bridge.
• Develop professional relationships with volunteers. They can be a great source for references and referrals.
• Formulate a career game plan. You can’t get what you want until you know what you want.
• Don’t resist the right lateral move. Moving sideways can often lead to moving ahead.
• Find a mentor. It helps develop partnerships and friendships.
• Develop your one-to-one solicitation skills.

Pet Lover Gives, Toasts Philanthropy

In a "tail" unlike any other, when philanthropist and dog lover Ileen Kaufman wanted a one-of-a-kind way to celebrate the "woman's best friend" in her life and benefit charity, the Boca Raton, Fla., resident led with her palate.

Kaufman contacted to Dog Lovers Wine Club, a program born through the partnership of california-based boutique winery Carivintas Winery and The Humane Society of the United States (HSUS), and set forth to create "Molly Merlot," the bottles customized with images of the Kaufman family's 9-yesr-old Boxer.

"It's a win, win situation for everybody," said Kaufman. "We get to celebrate Molly, who is a great fourth member of our family... we get to help the Human Society of the United States, and we get to enjoy wine woth friends." HSUS' Pets for Life program gets tossed a bone of 10 percent of the proceeds from the sale of Molly Merlot.

Annual Giving ... Make sure you target correctly

Annual giving is a series of small, targeted, focused campaigns that run throughout the year. Or, as consultant Jill A. Pranger told attendees at an international conference on nonprofits, annual giving is about doing it well over and over and over again.

Annual giving is important, but Pranger emphasized that there are important considerations that will be significant factors for any organization.

• The plan. What are you already doing? What would like to do. What can you do. Have volunteers and staff bought in?
• Looking back. How well did we do last year and how did we do it? Focus on the organization.
• Looking forward. Think of the philanthropic climate, nationally and locally, laws and regulations and breaking developments. Think of the economic climate nationally, locally and organizationally. Think of the organizational climate: How are we doing? What are we doing? What does our donor base look like? Have we had success raising money in the past?
• Goal setting. Goals are not based on budgetary needs. They are based on a thorough review of expected gifts plus an honest evaluation of what the organization's inputs to get those goals will be.
• When it is over, report the results. This gives the organization and the program credibility, can solicit help and gives the organization answers.

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Volunteer management in cyberspace

In addition to its other advantages, the online environment provides many possibilities for volunteer recruitment and management. In her chapter "Volunteer Recruitment and Management" in the book Nonprofit Internet Strategies, Alison Li presents some of the online options that have become available to nonprofits regarding their volunteers:

• Online volunteer matching. Online volunteer matching services allow organizations to reach new prospective supporters beyond geographic borders. Would-be volunteers can search for opportunities by name of organization, location, mission or other criteria that matter to them. Volunteers can learn more about organizations with they are familiar and discover new organizations they were not aware of.
• Expanding the boundaries of volunteering. Internet resources can help managers rethink the way volunteers are recruited and managed, primarily by reaching those who do not fit traditional molds by virtue of age, disability, race, ethnicity or availability.
• Virtual volunteering. Opportunities are now open to people who find it difficult to volunteer in person because of disabilities or work or family responsibilities that prevent them from coming to an office during regular working hours.
• Managing and retaining volunteers. Online tools can allow volunteers to schedule their work and log their hours via email or an online scheduling system.
• Recognizing volunteer efforts. The Web is an excellent place to recognize the accomplishments of volunteers.
• Corporate linkup. Many corporations are searching for ways to help their employees volunteer and to serve their communities, and the Net helps them do this.

Help Wanted: 640,000 Open Positions

By Don McNamara

The future is here.That's a good thing, isn't it?

It is not good if the future is the projected gap, possibly a chasm, between the number of senior-level managers at nonprofit organizations and the numbers of lower-level employees who would be in line to replace them.

The Bridgespan Group, a nonprofit management support organization in New York, Boston and San Francisco, has published a report, "The Nonprofit Sector's Leadership Deficit," that presents a gloomy forecast for nonprofit leadership down the road.

The report projects that the number of new senior managers needed would increase from 56,000 to 78,000 between 2006 to 2016. Worse, it projects a cumulative total of 640,000 senior positions that will need to be filled.

Thomas Tierney, founder of the Bridgespan Group and chief author of the report, said he saw the trend more than five years ago, when he worked at the for-profit consultant Bain and Company in Massachusetts. "It became clear in 2000-2001 that many of the organizations we were serving were finding it difficult to build their own organizations. And, most of our clients were trying to do more, serve 5,000 children instead of 1,000, for example," Tierney said. "When they're growing, they need more bench depth. Clients were having a hard time finding CFOs and CEOs, and they were having succession problems."

Money is an ongoing problem for nonprofits. Tierney said he understands that issue, but he didn't see that as the chief problem. "The three ingredients are money, talent (that is, people) and a plan or strategy," he said. "The biggest problem was talent."...


Read to complete article at http://www.nptimes.com/07Oct/npt-071015-1.html

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Hey Geek Guy! What do I need to run Vista?

By Bob Finley

Geek Guy has lived in Chicago for a long time. When you stop him on the corner of Wacker & State and ask him the apparently simple question "Excuse me - which way is 100 Wacker Drive?" you might be surprised to find he needs more information. Do you mean North Wacker, South Wacker, East Wacker or West Wacker?"

Microsoft's new Vista operating system has a number of versions -- too many in the opinion of many reviewers. So to clarify an answer to your question about running Vista Geek Guy says:

• Vista Business at a minimum -- stay away from the Home versions - Enterprise & Ultimate are ok, too (Vista versions are like addresses on Wacker Drive. You need more information).
• 2 gigabytes of RAM.
• Graphics card capable of supporting Directx 9 and 128 MB of graphics memory. A tip from Geek Guy -- The Vista upgrade advisor tool available for download at Microsoft is probably the quickest way to test your current graphics card. You might also discover a favorite software package or two that won't run in Vista without an upgrade.

One more word on graphics cards and Vista - unless you're a heavy duty gamer or a graphic designer there's a strong probability you'll need a new graphics card to fully support Vista on your existing machine.

Hey Geek Guy - my computer is just a year and a half old and it runs XP Pro just fine. So I can figure it'll run the flavor of Vista you're recommending fine right?...

Read the complete article at http://www.nptimes.com/technobuzz/tb20070814_1.html

This article is from NPT TechnoBuzz, a publication of The NonProfit Times. Subscribe to NPT TechnoBuzz or any of our other enewsletters and get the latest nonprofit news and stories delivered to your inbox.

A dozen Web Site Ideas

Careful design of an organization's Web site is an important consideration.
In his chapter "Inspiring Donors Online" in the book Nonprofit Internet Strategies, Todd Baker offers his Baker's Dozen of ideas:

• Establish an overarching goal for your organization's Web site. Usually it's raising money.
• Make an impression. People will remember how you made them feel.
• Write to connect on an emotional level. Embrace clarity, engage the reader and encounter the heart.
• Select the most interesting perspective from which to tell your story.
• Find your organization's voice: a unique blend of charisma, courage, and concern.
• Be persuasive by first making clear the specific action you want the reader to take.
• Be human; don't be an organization. Show the donor that you're people who support a worthy cause and you're looking for folks just like you.
• Illustrate your mission through images and pictures.
• Present a virtual tour of your mission.
• Write in an active and conversational style.
• Stop spending 90 percent of your organization's resources on technology and only 10 percent on the message.
• Give your headlines soul. Headlines that work seize the reader's attention, affect the reader on an emotional level and spark curiosity.
• Understand online human behavior. People who are online read differently than they would with a printed text. Make a good first impression, do not think of a book-reading atmosphere and make each page of the site have an objective with the reader in mind.

5 Ways to Get Your Opinions Printed

Op-Eds, the opinion pieces that appear on the editorial pages of newspapers, can be effective communication tools for nonprofits. Sandra L. Beckwith, in her book Publicity for Nonprofits, advises anyone considering submitting an op-ed piece to have a clear topic in mind, as well as a clear goal. It is also a good idea to contact the publication to assess its interest in the piece beforehand.

Once all that has been done, take the following steps.

• Begin by illustrating how the topic or issue affects readers. One good way is by putting a face on the issue, starting with a story of someone who has been affected by it. If this is not possible, lead with an attention-getting statement.
• Follow that illustration with a statement explaining the broader scope of the issue. Use statistics to put the situation in context.
• Describe the problem and why it exists. This is often an opportunity to offer your solution to the problem. Explain why it is the best option.
• Conclude on a strong note. Repeat your message or state a call to action.
• Make sure to put a note at the end describing your credentials as they relate to the topic.

Canning SPAM Right Now

Although much of the recent legislation regarding email concerns for-profit businesses, nonprofits would do well to be aware of these regulations, as well as of other considerations.

Senny Boone, executive director of the Direct Marketing Association Nonprofit Federation, offers a checklist to follow for email communication:

• If you send a commercial email make sure to communicate that the email is an "offer" to the recipient.
• Provide a valid postal address.
• Provide an honest subject line.
• Provide an Internet-based removal system that is easy to use.
• If you are using a service provider, have a written procedure and a contract.
• If a recipient removes him/herself from a marketing list via an email service provider, that address does not have to be removed from all future campaigns.
• There should be no surreptitious acquisition of email addresses via automated mechanism without the consumer's awareness.
• The FROM line should not be ambiguous and should be a valid email return address.
• "Remove" means remove.
• Lists must not be sold or provided to unrelated third parties unless the owner of the list has provided notice and the ability to be removed.
• A commercial email should contain the sender's privacy policy, either within the email or via a link.

A strategy for adding a vital revenue stream

The Ronald McDonald House of New York, Inc. has a monthly giving program, the Get Well Club. The operation of the Get Well Club was outlined during a recent direct response fundraising conference.

The plan has eight basic elements:

• Strategy: Upgrade donors who give less than $100 and offer monthly contributions.
• Goal: Demonstrate that gifts are vital to the organization's mission.
• Package Format: A closed face 6 x 9 package; a personalized letter; a reply envelope; a personalized 8.5 x 11 form; a photo card of the family.
• The Offer: Connect with the cost to house a family for one night. The ask is to facilitate them in joining. The typical monthly giving offer starts in the $10-$15 range.
• Thank-you Gift: A successful technique is to offer a gift to new monthly donors. Recommended gifts include a Club pin and a personalized certificate of membership.
• Pledge Payment Options: Offer electronic funds transfer or credit card. Do not offer a choice of having their debit take place on the first or 15th of the month. McDonald House contracts with an outside firm to set up a monthly electronic transaction.
• Donor Segmentation: Divide the effort by new donors who have given a contribution of less than $100 and multi-giver donors who have given two or more gifts less than $100 during the past 18 months.
• Additional Communications: Quarterly communications, newsletters, a small premium product, and a yearly tax statement in January or February.

Planning Staff Retirements

Any organization wants to think of what its employees will do while they are on the job, but the fact is that all organizations, nonprofit as well as for-profit, must look ahead to the time when employees retire. With that in mind, retirement programs that will offer employees a nest egg when their working days have ended are essential both to attracting good employees and to retaining them once they are hired.
With new tax laws being passed on a routine basis, there are always changes of which an organization must be aware, but there are several standard programs that help employees provide for retirement security.

Among these:

• Tax-deferred retirement savings programs. These are IRA accounts, with contributions paid by the employee while working. With traditional IRA programs, employers are not allowed to match employee contributions.
• Defined benefit pension programs. These traditional pension plans are becoming more and more rare because they guarantee a set payout upon retirement.
• Defined contribution pension plans. These are set up by employers and funded by employees. Employers may provide matching amounts. These are the standard 401 accounts.
• Cash balance pension plans. Employers establish an account containing a percentage of a worker’s salary plus interest each year. Upon separation from the organization, employees receive either lump-sum or annuity payments.

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4 Tips For Considering New Technology

"I'm in finance, so why do I have to worry about technology, too? Technology, software, and even phone systems -- what do these have to do with accounting?"

Everyone knows that nonprofit professionals -- especially finance staff -- wear many hats. The executive director must spend a majority of time "facing out" from the organization, typically working closely with the board, donors, and program officers.

Therefore, management of daily operations usually falls to the finance/accounting folks, whether they like it or not. They are left to wrestle with accounting and investing, as well as running day-to-day operations, which often includes making technology decisions.

According to Liz Marenakos, product line manager, Financial and Business Solutions at Blackbaud, Inc. in Charleston, S.C., the big questions -- what to buy, how much to buy, which providers to work with -- need thoughtful, careful answers. It's easy to recall technology mistakes because they leave a lasting impression. For a nonprofit chief financial officer, one of the most difficult decisions is whether to make a significant investment in technology. But the reality is that an organization cannot achieve long-term financial growth without investing in technology, she said.

Here are four things Marenakos suggests:

1. If new technology for your organization requires more staff time than it saves, don't use it.
2. Training is critical to using technology effectively. Many nonprofits have powerful tools they can't use because of insufficient training.
3. Don't forget to evaluate the vendor's customer service and technical support services, which can set one vendor above the rest. Seek out the top experts -- not the "discounted" service. (Nobody talks about finding "the hospital's cheapest surgeon.")
4. Investigate how long the technology vendor has been in business. Many software suppliers don't stay in business for long. The longer the company has been in business, the better the odds it will still be around in 10 years.

Make sure your database is secure

Database security becomes more complicated and more necessary each day.

Tom Gaffny, executive vice president of fundraising and database firm Epsilon in Wakefield, Mass., suggests eight database security questions that those responsible for security in an organization should ask themselves.

They are:

• Are we only storing the data we need for our business use? Storing unnecessary data is both expensive and just one more potential security breach
• Do we have an ultimate data owner for each system we support? Having two or more people who share ownership for a database system invites chaos.
• Do we have documented audit trails surrounding our data access? Such a trail should specify who granted access to whom, for what data and at what level. It should also clearly specify who is allowed to do what with data.
• Have we developed a data classification scheme, and why? Classifying data helped in determining how long different types of data should be retained on backup tapes.
• Do we encrypt everything that leaves the secure data center? The most secure organizations encrypt everything, even laptops.
• Have we recently undergone a security audit by an independent authority. An independent party can help identify weaknesses that are overlooked.
• Do we back up our data often enough, and are encrypted files or tapes stored at a remote location? It's common sense.
• Have we kept our employees completely informed about policies and procedures they need to follow to protect our assets?

Burning Calories To End Hunger

Americans need more exercise. CARE needs more money to combat global poverty. An obvious match, right? OK, maybe not so obvious, but professional triathlete and author Eric Harr hopes to serve those two purposes with the "I Am Powerful Workout with Eric Harr." It's not exactly Hans and Franz, though.

The fitness expert at CBS network affiliate KPIX-TV near San Francisco has put up the initial $50,000 to match gifts to CARE through the workout, committing $1 million over the next five years.

People can raise money for CARE just by exercising. For each hour you work out, Harr will donate $5 to CARE (up to $50,000), donors also can raise money theough a personal Web page, and win prizes. For every $1 raised on a personal Web page, Harr will match it with $5 (up to $50,000). Those who log 100 hours of exercise get an "I Am Powerful" T-shirt. Those who tell their story online get a "Music to Empower Women" CD. Through the Web page, http://www.care.org/features/workout/index.asp, users also can log their workout hours and download Harr's customized training programs. - Mark Hrywna

Calendar

October

3-7 The Association for Healthcare Philanthropy will hold its annual conference in Philadelphia. Info: www.ahp.org

10-13 The National Committee on Planned Giving will hold its annual conference at the Gaylord Texan in Grapevine, Texas. Info: www.ncpg.org

12-13 The 2007 BoardSource Leadership Forum will be held at the Hyatt Regency San Francisco. Info: www.boardsource.org

13-18 The Direct Marketing Association will hold its annual conference and exposition in Chicago. Info: www.the-dma.org

21-23 Independant Sector will hold its annual conference in Los Angeles. Info: www.independentsector.org

24-26 The 2007 Risk Management & Finance Summit for Nonprofits, formerly known as the Nonprofit Risk Management Institutes, will be held in collaboration with the North Carolina Center for Nonprofits. Info: www.nonprofitrisk.org

November

2-5 The National Arts Marketing Project Conference 2007 will be held at the Hyatt Regency, Miami, Fla. Info: www.artsmarketingconference.org

7-10 The American Association of Grant Professionals will hold its annual conference at the Crystal Gateway Marriott in Arlington, Va. Info: www.grantprofessionals.org

15-17 The Association for Research on Nonprofit Organizations and Voluntary Action (ARNOVA) will hold its 36th annual conference at the Omni Hotel CNN Center in Atlanta. Info: www.arnova.org

January 2008

24-25 The Direct Marketing Association's Nonprofit Federation will hold its annual Washington, D.C., conference, "Stand & Deliver: Fundraising in a Changing World," at the JW Marriott Hotel. Info: www.nonprofitfederation.org

Web fundraising on a shoestring budget

A marketing or fundraising campaign can only get started with a big chunk of money to support it, right? Money doesn't hurt, but at a recent national conference on nonprofit marketing, Dina Lewis, Allyson Kapin and Donna Wilkins offered suggestions on six ways to help a campaign, titled "Internet Marketing on a Shoestring Budget."

The six ways they suggested are:

• Submit to article marketing sites. These include EzineArticles.com, GoArticles.com, ArticleDashboard.com, SearchWarp.com and ArticlesBase.com
• Create memorable URLs. URL names should be short, catchy and memorable. Beware of names that are too long or wonky sounding.
• Build your online media list. Build an online/media blog list consisting of media outlets related to your field (e.g. public health, environment, politics). A site such as www.Technorati.com has a search function offering lists of blogs that cover your issue. Also, track media and blog hits for free by setting up a Google email alert.
• Integrate off-line promotions. Include your Web site's URL in offline communications, such as press releases, direct mail, telemarketing, print advertising and radio advertising.
• Use viral marketing. Make it easy for visitors to sign a petition or pass a message along to a friend.
• Take advantage of social networking. Consider the following: www.myspace.com, www.facebook.com, www.digg.com, www.Twitter.com.