Pages

Friday, August 12, 2011

Nonprofits And For-Profits: Can They Work Together?

Note: This is a summary of a story in the latest episode of The NonProfit Times TV

Nonprofits and for-profit corporations sometimes have an uncomfortable partnership of money and mission.  This hasn't been the case with Livestrong, the charity founded by champion cyclist Lance Arsmtrong.  The organization has had a long and successful history of positive relationships with corporate sponsors.  The NonProfit Times TV recently caught up with Chris Brewer, senior manager of development communications at Livestrong, and found out why they have been so successful in these sometimes challenging partnerships: (NOTE: These interview highlights have been paraphrased)

NPTtv: How does Livestrong go about finding corporate sponsorships?

Chris Brewer: Livestrong makes sure that the sponsors they are working with don't just want to slap their brand on something.  They want their partnerships to be more than just the corporation writing a check to them; They want them to be engaged.  Brewer cites their relationship with Nike as an example of their ideal corporate sponsor.  They have not only been able to create a successful line of merchandise using the Livestrong brand, but they have also delivered the organization's message across the globe.

NPTtv: What can the average nonprofit learn from the way Livestrong uses Lance Armstrong?

CB: Brewer reminds listeners that Lance was not that well known an athlete when the organization first started.  He also tells nonprofits that they have to make sure that if they do use a celebrity to promote their organization, they have to make sure it's the right fit.  You can't just assume because the person is a celebrity that they will help your cause.

**
Check out the full interview with Chris Brwer at The NonProfit Times TV.

Half Of Adults In Louisiana Are Volunteers

Note: This is a summary from a story in the latest episode of The NonProfit Times TV.

A new study by Louisiana State University revealed a fascinating statistic: More than half of the state's adult population volunteer their times to nonprofit or religious groups. In fact, LSU says that the rate is probably more than the 51% found in an April survey. The survey was commissioned by Volunteer Louisiana, and it interviewed 720 people 18 or older in 216 cities and towns. Most of the respondents also said that they considered the work they do to be helping, not volunteering.

Thursday, August 11, 2011

Online Micro News Sites Showing Bias

Note: This is a summary of a story from the latest episode of The NonProfit Times TV

Micro news sites formed as nonprofits have been popping up all across the country, but they aren't exactly passing the sniff test when it comes to objective journalism.

According to a recently released study by the Pew Research Center's Project For Excellence in Journalism, more than half of these sites have an ideological bias in their reporting.  The study also found that the more ideological sites tended to be funded mostly or entirely by one organization.  Sites with a more balanced political perspective had multiple funders. 

The most liberal sites were nine, operating under the umbrella of the American Independent News Network.  This group is funded by a variety of organizations, including the Open Society Foundation.  The most conservative sites were 12.  They all shared the common name Watchdog (i.e. "Alaska Watchdog"), and were funded by the Franklin Center for Government and Public Integrity. 

Microsoft Ups Its Production Donation Program

Note: This is a summary from a story in the latest episode of The NonProfit Times TV.

Microsoft has announced an update to its software donation program that is designed to give nonprofits easy access to technology.  The computer giant says its reaching more than 40,000 organizations around the world each year.  This has led to nearly $4 billion of donated software since the program started in 1998. 

As part of the update, Microsoft is increasing the amount of Microsoft Office products that can be requested from six to ten titles.  They are also adding three new categories of nonprofits eligible for software donations, including medical research organizations, private foundations, and amateur sports/recreational organizations.  For more information on these changes, go to http://www.microsoft.com/nonprofit

Wednesday, August 10, 2011

New NPTtv Webcast Available

The newest episode of The NonProfit Times TV is out!  Here are the stories in the new webcast:

We will have summaries of some of these stories shortly.  In the mean time, view the latest webcast here.

Tuesday, August 9, 2011

Bernadine Healey Dead At 67

Cross-Posted from The NonProfit Times Website

Bernadine Healy, M.D., a controversial chief executive who ran the American Red Cross from 1999 through 2001, reportedly died Saturday from complications of a brain tumor. She was 67. Healy’s tenure at the Red Cross was delayed as she sought treatment for a brain tumor.

Healy was CEO when the September 11 attacks hit. The organization was criticized for its advertising for financial and blood donations and subsequently changed its advertising practices. She also clashed with board members and the International Federation of Red Cross and Red Crescent Societies officials with regard to what she viewed as unequal treatment of chapters in Israel.

A New York City native, she was the first female director of the National Institutes of Health, appointed to the position in 1991 by President George H.W. Bush. An internist and cardiologist by training, she also served as dean of the College of Medicine at Ohio State University from 1995 to 1999.

The American Red Cross released a statement on its website: “The American Red Cross is saddened by the death of Dr. Bernadine Healy, who led the Red Cross response in the hours after 9/11, the worst terrorist attack in our nation’s history. During her brief two-year tenure as President and CEO, Dr. Healy worked tirelessly to initiate reforms in key Red Cross programs. When she left the organization in October 2001, it had improved its ability to respond to domestic and international disasters and was better equipped to ensure the safety and adequate supply of the nation’s blood. Dr. Healy was known to all Red Crossers for her vision and her compassion under the most challenging circumstances, and our thoughts and prayers go out to her family.”

A funeral in Cleveland is slated for Wednesday. She is survived by her husband, Dr. Floyd Loop, a former chief executive officer of the Cleveland Clinic, and daughters Bartlett Healy Russell and Marie McGrath Loop. Burial will be in West Lafayette, Ind.

Foundations React To U.S. Debt Downgrade

You probably have heard that Standard and Poor's (S&P) downgraded the United State's long-term debt rating to AA+.  This has created enormous chaos in the market, with stocks plunging in the aftermath.  As much as the downgrade has affected the for-profit world, it also has the potential to impact the nonprofit sector.  The NonProfit Times just put a report explaining the possible scenarios:

According to Bradford Smith, president of The Foundation Center in New York City, there are two ways the downgrade can affect nonprofits. First, it could mean raising interest rates, which would put further pressure on state budgets and their ability to raise money. With states already in a tough situation, he said it if it gets tighter, many budget cuts could come at the expense of nonprofits.


Second, if this week’s volatility turns out to be more than just a market correction, foundation endowments could get a big hit, as they did in the 2008 recession. If endowments take a big enough hit, foundation giving could fall in response, just as giving was beginning to climb back to pre-recession levels, Smith said. “But it takes a crystal ball to predict that,” he said. “We’re only seeing the reaction of the markets on Friday and today.”


From an operational standpoint, the downgrade really has no impact on endowments and foundations, or their ultimate beneficiaries, said Rick Nelson, chief investment officer at Commonfund Institute in Wilton, Conn. “It’s been a non-event from that standpoint,” he said.


Another effect of the downgrade, however, might be that other entities are unable to maintain their rating if the U.S. is rated AA+. “You’re seeing that somewhat today, some insurance companies being downgraded. It could have effect on institutions, but really it’s on a case-by-case basis, not in lockstep,” Nelson said.

To learn more about how the downgrade might affect nonprofits, head on over to the NPT website.

Monday, August 8, 2011

Management Tip: Cause Marketing And Individual Giving

At first glance, cause marketing and individual giving don't seem like they have anything in common.  How would it ever be possible to combine them?  In the latest management tip from The NonProfit Times, Lynn Croneberger (VP of development at Reading Is Fundamental) and Laura Goodman (director of partnership at Share Our Strength) explain how these seemingly polar opposite functions can work together:

*Ask for it. Consumer data is a leveraged asset that a corporate partner might be able to provide.


*Ask for it. Make sure to ask for email addresses when building consumer/participation forms. An e-appeal might not be as effective as direct mail, but it’s a lot cheaper.


*Try it, Test, segment and test again. Design appeals that can be tested – control group, call to action and links.


*Personalize. Tailor to the individual, recognize their support, cultivate and connect.

You can read the full piece over at The NonProfit Times.  If you liked this, you can read more cause marketing advice on our Management Tips page.

More On The Erie Gives Day Fundraiser

Remember the Erie Gives Day fundraiser I wrote about last week?  Looks like it was an even bigger success than originally thought.

I wrote last week that the initial tally for the event was $690,513.  According to GoErie.com, the final number was $771,030.  This money was raised from about 3,000 individual donors who gave over 4,900 gifts.  Here are some more notes from the fundraiser that were released by the Erie Community Foundation (ECF):
  • The average gift was $233.
  • The money raised included $100,000 added through a $75,000 matching donation from ECF and $25,000 from GE Transportation via a corporate match.
  • Jefferson Educational Society received the most money of all the nonprofits that participated in Erie Gives Day: $618,618.  The Foundation for Free Enterprise came in second with $63,316.
  • The Kanzius Foundation got the most number of donations with 247.
All participating organizations will receive their donations on Aug. 12 in a presentation at the Erie Zoo.  When you get a chance, you should read the full article at GoErie.com.  Besides all the statistics in the article, it's pretty cool to read the reactions of the people who work at the nonprofits that got the donations.

$14 Million Social Innovation Grants Awarded

Last week was the second round of the Corporation for National and Community Service's (CNCS) annual Social Innovation Fund (SIF) awards, and five lucky nonprofits received grants.  All told, the awards added up to $14 million.  SIF funds the initial two years of the grants, and the organizations that receive them must match each federal dollar.  Here are the five recipients:

  • United Way of Southern Michigan: $4 million over two years
  • Mile High United Way: $3.6 million over two years
  • Corporation for Supportive Housing: $2.3 million over two years
  • NCB Capital Impact: $2 million over two years
  • US Soccer Foundation: $2 million over two years
Want to learn more about the SIF grants and the organizations that received them?  Head on over to The NonProfit Times for the full scoop.

Friday, August 5, 2011

Exempt Magazine Preview Part 2

Thought I would give our readers an excerpt from another one of the articles from the newest issue of NPT's Exempt Magazine.  This article is about 403(b) plans:

In Revenue Ruling 2011-7 issued earlier this year, the Internal Revenue Service (IRS) provided sponsors of 403(b) plans with some much-needed guidance regarding how to terminate plans. Many 403(b) plan sponsors have been reconsidering whether they want to continue to maintain such plans in light of the final regulations that were issued by the IRS in 2007 covering 403(b) plans.


Until this guidance was issued, the IRS’s position was, generally, that a 403(b) plan could not be terminated, so the guidance is a welcomed step. However, there are issues that have not been addressed by the IRS in the guidance and issues that plan sponsors may need to address to terminate their plans.


Steps to Plan Termination


The guidance outlines the steps a plan sponsor needs to take to effectively terminate a plan and to distribute plan assets. Below is a brief discussion of each of the steps and potential issues that a plan sponsor must consider.


Adopt a Binding Resolution to Terminate the Plan. On or before the date of termination, the plan sponsor must adopt a binding resolution establishing the termination date, freezing contributions to the plan, discontinuing the purchase of annuity contracts or mutual funds, fully vesting all plan participants, approving the distribution of plan benefits and approving the termination of the plan.


This would seem to be relatively simple, except that the IRS assumes that a plan’s document(s) allow the plan sponsor to terminate its plan. However, this is frequently not the case, so plan sponsors must review the plan document to be sure it allows for the termination. If the plan document does not contain termination provisions, then the plan sponsor should consult with a plan advisor to determine if the language authorizing the termination can be added to allow for it.

Be sure to read the full article over at The NonProfit Times.

NY Governor Cuomo To Investigate Nonprofit Executive Pay

Governor Andrew Cuomo
In a blog post on The New York Times, it was reported that New York Governor Andrew Cuomo planned to create a task force to investigate executive compensation at nonprofits that receive taxpayer money.  The task force will consist of: NY inspector general Ellen Biben, Secretary of State Cesar Perales, NY Medicaid inspector general James Cox, and superintendent of the Department of Financial Services, Benjamin Lawsky.


 Cuomo's decision came after a Saturday report in the Times reported on the high salaries and perks executives got at the Young Adult Institute.  Specifically, the article tells the story of Philip and Joel Levy, who had headed the organization since the 1970s before their sudden retirement at the end of June.

In addition to the close to $1 million in annual salaries they made each year, the Levy brothers had some questionable perks.  To name just a few, they were allowed to bill the organization to cover their children's college tuition, and Philip charged the institute $50,400 to pay for his daughter's co-op in Greenwich Village.  The article also detailed other high salaries among nonprofits that relied on state Medicaid funding from the Office of People With Developmental Disabilities (OPWDD).  These salaries were far and away higher than those paid at similarly sized organizations.

According to the NYT blog post, Nonprofits may lobby against regulations to executive compensation, as they had in similar cases that occurred in Massachusetts.  In an era where Americans have a bad taste in their mouths from the bank bailout and stories of corporate greed, any executive compensation that is seen as executive is going to be highly scrutinized.  If there is any update on the findings of the task force, we will be sure to post them here.  In the mean time, head on over to The New York Times to read the full blog post on this topic.

Thursday, August 4, 2011

No Changes To Charitable Deduction In Debt Deal

You may remember that we wrote a while back that nonprofit executive were urging Congress and the administration not to reduce the charitable deduction in their negotiations to raise the debt ceiling.  Now that President Obama has put his signature on the so-called debt deal, nonprofits will be happy to know that charitable deduction is safe--for now.

In an article on The Huffington Post, we learn that although the initial deal didn't produce any changes, nonprofits are not out of the woods yet.  The "Super Congress," created by the deal to find additional deficit reduction measures, may turn their sights on charitable tax breaks yet again.  The President has continued to say that he believes these tax breaks are unfair, and nonprofits are working under the assumption that reductions to the charitable deduction will continue to be on the table.

On the other side of the debate, Huffington Post cites a piece from The ETF Daily News that says reducing charitable deductions would help shrink the budget by $50 million.  That same article also claims that it would help middle class families that don't usually itemize their deductions.  Hopefully the debt ceiling drama didn't tire you out, because it looks like we are in for another political battle once the Super Congress reports back in November.

Read the full article on the debt deal by visiting The Huffington Post.

Special Note From The Editor Of The NonProfit Times

I’m Paul Clolery, editorial director of The NonProfit Times. First, thanks for being a loyal reader. As such, you know that we do plenty of original research. I want to bring your attention, via this email, to a special research report we have been working on. It's called The Best Nonprofits to Work For.

This is an important benchmarking study that we share with all of our subscribers in exploring some of the best practices for managing manage internal and external relationships.

The real benefit for you participating is the knowledge gained in what makes an organization a viable and attractive place to work. We look at retention strategies on how employees look at their organization, what techniques and policies they find effective and also how managers perceive their own work and style.

The annual study needs your help to continue this important work. We have an independent company evaluate the study results and select what they think is the best managed nonprofits, recognizing the size of the organization and it's resources. But the real work is in the results that make all of us better nonprofit practitioners.

Simply click on the link http://www.bestnonprofitstoworkfor.com/ to start the process. We will publish the results in our April, 2012 issue and I will make sure you get an executive summary as a thank you for your time and knowledge contribution.

Thanks again.

Paul Clolery
Editorial Director
The NonProfit Times

Brooklyn Nonprofit Mystery

Why are 196 nonprofits registered to one Brooklyn home?  That's what investigators want to find out.

In a story in Monday's New York Post, it was reported that 196 New York nonprofits are registered to a Brooklyn house without the owners being aware of it.  As if this wasn't strange enough, some of these organizations have ties to a group of rabbis involved in money laundering and child molestation.  It sort of sounds like the plot to a bad movie.  A really bad movie.

As investigators work to figure out this mystery, the Post managed to find out some interesting tidbits.  A dozen of the registrations were traced back to a tax lawyer named Joseph Schubin.  He claimed that the multiple registrations were a mistake by the IRS.  Schubin worked at a dozen of these charities, and he explained that the IRS mistakenly put the address of this Brooklyn home, where he used to work, instead of the organizations official address.  Keep in mind that the IRS nonprofit application requires a charity register its own address.

This is a very odd story, no question about it.  It actually brings to mind a story NPT wrote recently about a man who was registered to 2,300 nonprofits out of one office building in Nevada.  Will there be any other similarities to that story?  We'll have to wait and see.  In the mean time, get the full scoop on this story at The New York Post.

Breaking News: Jerry Lewis Out As MDA Chairman And Host

In a stunning turn of events, The Muscular Dystrophy Association (MDA) has announced that legendary comedian Jerry Lewis is out as chairman of the organization.  He will also no longer be appearing on the organization's annual Labor Day Telethon.  It was announced less than three months ago that Lewis would be making one more appearance on the telethon before retiring as host.  He was still to maintain his chairmanship, however.

What changed between now and then is anybody's guess.  Speculation has ranged from Lewis's deteriorating health, to a strange recent appearance at the Television Critics Association (TCA) press tour last week.  Several published reports indicated that he said it was "None of your business" when asked about his involvement with the telethon, and that he went on a rant against reality television. 

Regardless of the reason for his departure, it clearly marks the end of an era.  Lewis had hosted the annual telethon since it first ran in 1953 (when he co-hosted with Dean Martin).  The telethon raised nearly $60 million dollars with Lewis at the helm, about a third of the MDA's $180 million in annual revenue.  Although his behavior may have become slightly erratic over the years, it will certainly be strange not seeing Jerry Lewis crooning out "You'll Never Walk Along" at the end of the telethon.  To read the full story on his departure, head on over to The NonProfit Times.  The story will be updated if we get any further information.

Wednesday, August 3, 2011

A Story of Re-Branding

Re-Branding is done for a variety of different reasons.  Sometimes an organization wants to move away from some controversial events that had soiled their previous brand.  Other times, its just the result of an evolution in the organization's thinking.  In the case of Good360 and Mothers Against Drunk Driving (MADD), it was clearly an effort to "refresh" their brand.  In the newest issue of The NonProfit Times, the story behind the re-branding of these two nonprofits is discussed:

When Gifts In Kind International (GIKI) changed its name earlier this year, it wasn’t just some tweaks at the edges or a few nips and tucks to its logo. The Alexandria, Va.-based nonprofit unveiled its new name, Good360, this past spring, in the midst of revamping its business model in a sort of mashup of Kiva, eBay and DonorsChoose.org.


And, it’s not done yet: Phase II will launch by the end of the summer, integrating its two websites and rolling out an online catalog where individuals can become “microphilanthropists” by underwriting the shipping and handling costs of product donations. Charities often must consider when to transition image and brand, which might have grown from a small, fledgling effort into a nationally recognized organization. It’s not uncommon for nonprofit managers to think about whether the brand needs to be revamped with age or whether to retain the equity in a name it’s had for so long.


For Good360, it turned out to be a new name, web portal and business model, leaving behind a name, and more, that it had for almost 30 years. Mothers Against Drunk Driving (MADD), also some 30 years old, didn’t want to lose its established name and brand, so a new logo was characterized as a “refresh” of the brand.

(read the full article here)

The article goes on to paint a fascinating story of the process behind the rebranding of these two organizations.  There comes a time in the life of any nonprofit where major changes have to be made in order to ensure continuing success.  Change can be difficult but, as you can see with Good360 and MADD, they can ultimately be for the better.  Has your organization ever had to undergo changes like these?  Please feel free to share your stories with us in the comment section.

Erie Gives Day Rakes In The Cash

A couple of years back, we wrote a story about Giving Days in a number of states.  Those events were met with a great deal of success, and now it appears Erie, Pennsylvania is experiencing the benefits of online philanthropy.

GoErie.com reported today that Erie Gives Day raised $690,513 for the 223 nonprofits that were involved in the event.  Considering that the number stood at $582,038 with only two hours left, the amount raised is staggering.  Community leaders said that the cash raised will significantly boost the nonprofit sector.  The cash comes with additional meaning since organizations are expecting large reductions in state funding later in the year.  The nonprofits involved will receive their donations on August 12th at the Erie Community Foundation.

This story is not only an example of the extraordinary generosity of citizens in this country, but also of the power of online fundraising.  More and more, we are seeing that this medium can be used to great effect.  One of the more recent examples of this came in the case of Reel Grrls's spat with Comcast.

You can read more about Erie Gives Day by visiting GoErie.com.

Tuesday, August 2, 2011

Exempt Magazine Preview

Have you heard of Exempt Magazine?  It's the sister publication of The NonProfit Times, and it focuses on the financial aspects of the nonprofit sector.  This includes asset management, planned giving, donor advised funds, banking, risk management, investments, insurance, trusts, financial software and technology.  If you have not already subscribed, we just put up 3 articles from the latest issue on the NPT website.  Here is a sample of one of those articles, entitled "Bright Lights & Big Stars":

If you’ve heard it once, you’ve heard it a million times: Fundraising is all about developing and building relationships with your donors and supporters. For nonprofits looking to corral a few celebrities to help their cause, it’s much the same thing.


Portland, Ore.-based Mercy Corps has been looking to connect with some of its celebrity supporters, to raise its profile, particularly during non-disaster times and among people who go beyond their usual donor base. The disaster relief organization started last summer, dedicating “a good chunk” of time and energy to examining what other organizations are doing in engaging the entertainment world. Out of that came a consensus to hire someone, based in New York or Los Angeles, to focus on the task and not let it fall by the wayside.


“We’d been trying to do this for some time and saw it as something to put longer-term resources behind, ultimately bringing a benefit to us, and thus, to people we serve around world. That’s always the motivation behind any move we make,” said Joy Portella, Mercy Corps’ director of communications.


“It’s been a lengthy process. We certainly thought about how we want to work with not just individual talent, but the whole entertainment industry,” she said. “It’s rare that an organization has just one or two celebrity spokesmen. The whole process that gets them involved with your organization involves networking in Los Angeles and New York, the entertainment industry.”

You can read the full article by clicking here.  If you are interested in seeing the other articles, go to the "articles" section on The NonProfit Times homepage.  Two of the other stories are "Your 403(b): Terminating A Plan" and "Being Flexible."

Management Tip: 3 Elements Of Activist Relationship Management

Here is this week's Management Tip of the Week.  This one comes from the advocacy category:

Every cause needs its activists, but a nonprofit that hopes to get the best it can from concerned individuals needs to understand the potential they offer and to treat them as effectively as possible.


Speaking during the DMA 2011 Washington Nonprofit Conference, Yvonne Garrett of OMP, Inc., Vinay Bhagat of Convio and Randy Paynter of Care2.com said that there are three main areas of concentration, with the second and third combining for a fourth.


The main thrusts:


* Recruit. Be thoughtful about the form of ask. Think about a pledge vs. “contact your legislator.” Think of constituent relevance. Offer multiple venues in addition to your Website. Provide a strong user experience. Remember viral marketing, including social media.


* Engage. Acknowledge returning Web visitors. Send tailored/updated stories. Make related appeals. Use multi-channel appeals: email, text, social. Provide rewards and incentives.


* Convert. Provide campaign-specific donation forms. Have an email welcome/conversion series. Follow up in a timely fashion with mail or TM. Apply filters to prioritize investment. Select appeals based on advocacy actions.


Effective use of the second and third parts leads to a fourth: Deepen. Remember, major donors are frequently active. It is increasingly critical to track messaging intensity/congruency across programs and channels.

To read more like this, check out the advocacy management tips page on The NonProfit Times.