Planned Giving Tips: Principles For Effective Stewardship

Baby boomers are aging and as a result, planned giving campaigns have picked up.  An important part of these campaigns is stewardship.  Nonprofits must know how to effectively steward baby boomer donors and their gifts. 

During the 2011 Association For Healthcare Philanthropy (AHP) international conference in Boston, Mass., Katherine Swank, senior consultant at Target Analytics, offered her own principles for effective leadership based off of Kay Sprinkle Grace’s book Beyond Fundraising.  The NonProfit Times was there to record her tips, and here are some of them:

• Engage the donor immediately
• Don’t mix messages like sending a thank you with a gift ask
• Carve out a budget for stewardship
• Keep your stewardship in line with organizational image
• Determine what kind of involvement your planned donors want outside of making a donation
• Use current legacy donors to convey messages to potential legacy donors

You can read the rest of the tips on our website.

An Unfortunate Case Of Branding

File this one under unfortunate cases of branding.

You probably know by now that Jerry Sandusky, the central figure in the Penn State child sex abuse scandal, founded a charity called The Second Mile.  It's stated mission is "helping young people achieve their potential as individuals and as community members and providing education and support for their parents and youth service professionals."  Worthy goals, no doubt, but that mission has now been tainted by the charges against Sandusky.  As a result, a lot of people don't view The Second Mile in a very positive light.

In a recent article on The Huffington Post, we learn about the unfortunate effect the Penn State scandal has had on a Philadelphia-based organization called The Second Mile Center, a nonprofit thrift shop that helps ex-cons get back on their feet.  Although it shares a similar name to Sandusky's organization, they are in no way connected.  But given the similarity in the two names, people have confused the store with the scandal plagued charity.  Since the charges against Sandusky became public, The Second Mile Center has experienced a 30 percent drop in sales. 

Ron Lucas, who sits on the board of the nonprofit, told Weeklyxpress.com that they have received countless angry phone calls from people, most of whom hang up before they can explain that they have no connection to The Second Mile.  They have even put up signs on its door, one of which reads:

"We are not in any way connected to the Second Mile of the Penn State scandal. We are the Second Mile Center."

The Second Mile Center has been in existence for 30 years, while The Second Mile was formed in 1977.  It would be a shame if the negative attention towards that organization bought down this Philadelphia thrift shop.  In the mean time, Lucas and everyone else at The Second Mile Center can only hope people will start to learn the truth.

What Do The Occupy Wall Street Protesters Want?

In light of the eviction of the Occupy Wall Street protesters from Zuccotti Park in NYC, I thought I would bump up this post.

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Unless you've been living under a rock for the past month or so, you are probably aware of the "Occupy Wall Street" protests that have been going on around the world.  You probably have at least a vague idea of what sparked the protests: Anger over a perceived unfair financial system.  A system that a few years ago led to the worst economic crisis since the Great Depression, a crisis from which the country is still recovering.  Given the bailout of big banks, and huge bonuses paid out to their executives, it's easy to understand why people are angry.  Who wouldn't be?

Yes, it's pretty clear what these large masses are lashing out against.  What's not as clear is what the end game is for the protesters.  We recently posted a column by editor in chief Paul Clolery, set to appear in our Nov. 1 issue, that articulates this question.  It tackles some interesting contradictions of the protest, like how Occupy Wall Street supporters rail against unfair bank practices while embracing Russell Simmons, who sells pre-paid bank cards with monthly fees to poor communities.  That's a practice that is at least as bad as the questionable practices of banks.

The column's biggest issue with the protest is its lack of organization.  All of the social change movements in the past had a clear goal in mind.  The civil rights movement wanted equal rights for all.  The protests against the Vietnam War wanted an end to a conflict that had no end in sight.  How do the Occupy Wall Street protesters hope to get the change they seek?  These protesters need help from the charitable sector and seasoned protesters to help make a real impact on important issues like wealth disparity.  Right now, as the column opines, "it’s just an opportunity to post to YouTube."

Conflict Of Interest With Sandusky Judge?

The Penn State child sex abuse scandal is already one of the biggest stories in the news these days.  And now another layer of intrigue has been added thanks to a potential case of conflict of interest.

The Pittsburgh Post-Gazette reported yesterday that the state attorney general's office, which has charged former Penn State defensive coordinator Jerry Sandusky with 40 counts of sex abuse involving eight children, had sought bond of $500,000 and electronic monitoring.  This request was not granted by Judge Leslie Dutchot, who set bond at $100,000 unsecured, which Sandusky later met.  Why is this of note?  It turns out that Judge Dutchot volunteers for Sandusky's charity, The Second Mile. 

According to the Post-Gazette article, this information was listed on the website of the State College law firm Goodell & Yurchak.  Judge Dutchot would make no comment on the apparent conflict of interest.

Challenges In A Merger

For all the benefits of a potential nonprofit merger, it brings along as many risks and challenges.  How will existing departments function under the new management?  What will be the fate of current employees?  How will the merger be announced to the public?  These are all questions that can cause lots of headaches for nonprofit managements.  It's enough to make you reconsider going through with the merger.  Luckily, there's help on the horizon.

During the 2011 Risk Management and Finance Summit for Nonprofits, Eileen Morgan Johnson of Whiteford, Taylor & Preston LLP discussed the risks of nonprofit mergers and separations.  The NonProfit Times was in attendance for their tips, which included the following:

• Periodically review governing documents.
• If a potential conflict can't be avoided, make sure it is disclosed.
• Don't be afraid to request a legal opinion when the issue warrants it.
• Seek the advice of independent experts.
• Insist on thorough documentation. This includes board minutes showing discussion and reports, memoranda and other documents considered in decision making.
• Keep your employees informed of all new merger developments and provide ample opportunity for their feedback.  Nobody likes being kept in the dark.
• Make sure that your fellow directors get copies of all proposed agreements or summaries.
• Demand that board minutes accurately reflect votes.

Want to read the rest of the tips?  Read the full article over at The NonProfit Times.

Paterno, Penn State President Out

UPDATE, 11/14/2011: It was announced this morning that The Second Mile board of directors have accepted the resignation of Jack Raykovitz.  He had been CEO of the organization for 28 years.  Read more about this breaking story on our website.

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No doubt you have heard of the shocking child sex abuse scandal that has come out of Penn State.  Although it was former defensive coordinator, and founder of the charity The Second Mile, Jerry Sandusky who has been charged with allegations of sexually abusing children, much of the discussion has centered around top Penn State officials.  Two officials, Athletic Director Tim Curley and Vice President for Finance and Business Gary Schultz, have already been charged with perjury and failing to report suspected child abuse.  But much of the questioning has been directed towards legendary football coach Joe Paterno and Penn State President Graham Spanier.  And late last night, those two men became the first two to take the fall in this scandal, as the Board of Trustees at Penn State voted unanimously to relieve them of their duties.

The news broke late last night, only hours after Paterno announced he would retire at the end of the season.  The man affectionately known as "Joe Pa" said he was "devastated" by the developments and urged the Board "not to spend a single minute discussing my status."  Apparently they didn't take too kindly to that suggestion.

For Paterno, it's an unfortunate ending to a career that spanned 61 years.  He is the winningest coach in major college football history, leading Penn State since 1966 and turning it not only into a successful football team but an iconic brand in the sports world.  Even if you aren't too familiar with college sports, you probably have heard about Joe Paterno

All of this discussion about Paterno, Spanier, and other Penn State officials obscures the serious crimes for which Sandusky is being accused.  Reading the Grand Jury testimony (WARNING: Contains graphic descriptions) from wide-receiver coach Mike McQueary, who alleges to have witnessed Sandusky molesting a young boy, is chilling.  What's even more disturbing is that because this went unreported to the police, Sandusky wasn't barred from activities with children at his charity until 2008.  That's when he informed them he was under investigation.  And even then, he didn't officially leave the organization until he retired in 2010. 

In yesterday's report on The NonProfit Times, we reported on The Second Mile's tax filings and annual report.  They indicated that the organization experienced a $228,000 operating deficit last year.  In addition, revenue fell to $2.1 million, from $4.1 million in 2008.  The 12-page annual report cited overall giving to charities being down 11 percent last year as the organization’s board used a “rainy day fund to provide needed services” as it “received more requests to help children and teens than ever.”  With these revelations about Sandusky's alleged crimes now coming to light, it's unclear how much longer the charity will be able to operate.

This story will undoubtedly continue to evolve over the coming weeks and months.  Stay tuned to The NonProfit Times for any new information that comes out on the case or the future of Second Mile.

Veteran's Day

Hope that everybody had a great Veteran's Day Weekend!  In honor of the just passed holiday, I would like to direct our readers to an article we recently posted about the number of unemployed veterans.  Here is an excerpt from that piece:

As 39,500 Iraqi troops are scheduled to make their return this December, nonprofits have begun the charge of increasing service programs, while trying to fundraise more for the sudden influx of new clients.


“The key is getting to soldiers as soon as possible,” said Stephen Nardizzi, president and CEO of Wounded Warrior Project (WWP) in Jacksonville, Fla.. “A lot are returning to isolated communities, which is different from what you’ve seen in past conflicts.”


The unemployment rate for veterans stands at 12 percent, 3 points higher than the national average. In October alone, 240,000 new veterans were looking for jobs. In addition, one in five soldiers is reportedly suffering from Post Traumatic Stress Disorder (PTSD). Nardizzi estimated 300,000 to 600,000 soldiers are dealing with a traumatic brain injury. More than 1 million Americans have served in Iraq, and 39,500 troops will return by year’s end.


Nardizzi sees traumatic brain injuries and PTSD as the biggest issues veterans face, but realizes a full integration in today’s society means using a combination of therapies. “It’s a lot like the legs of a table. They all impact each other. We will have programs that will engage soldiers in team-building activities, but we also have counseling services,” he said.


For WWP, the expectation for increased services has been planned. The organization has experienced “incredible growth” during the past five years, from $40 million 2010 to $68 million this year, and a goal of reaching $90 million next year.


“We took that next step in fundraising about two years ago, when we saw depressed numbers coming back and invested in our direct response services,” said Nardizzi. “We’ve been trying to attract online donors, but this year we also heavily invested in direct response television. We had a very similar approach to television to what we’ve done in direct mail.”

Tax Credit For Michigan Nonprofits Set To Expire

Michigan nonprofits are urging donors to take advantage of a soon-to-expire tax credit, according to an article in The Detroit News.

The tax deduction, called the Credit for Charitable Gifts, raised $100 million last year for Michigan charities, and gave taxpayers over $40 million in write-offs on their state returns.  It has been law since 1967, but Governor Rick Snyder and the state Legislature decided that to end it starting Jan. 1.  The primary reason for this was because it cost the state $43 million for nearly $100 million in donations.  Groups that opposed the repeal of the credit attempted to defend it by saying that it provided a lot of government support for community and cultural groups.  Those protests were not enough to save the credit, though there have been rumors that the Snyder administration will add an appropriation for a tax credit in the annual budget.

Charitable deduction has been a big subject in the national news lately.  The Obama administration has repeatedly tried to cap deductions at 28 percent for those earning more than $200,000.  The most recent attempt at this was in the White House's proposed American Jobs Act, but the provision was removed by Senate Majority Leader Harry Reid (D-Nev.).

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Google+ Now Open For Business For Nonprofits

When Google+, the search engine giant's venture into the social networking world, launched earlier this Summer, nonprofits might have had two reactions:

"Oh great, another social networking site.  Just what we needed."

OR

"Another social networking site?  Great!  That's just what we needed!"

There was only one problem: Google+ only allowed users to make pages for themselves, not for businesses.  So if a nonprofit was hoping to use it to further promote their services, it seemed they were out of luck.

That all changed on Monday when Google announced it would allow users to make pages for their business or organization.  Known as Google+ Pages, it will allow nonprofits to have yet another presence in the growing world of social media.  Yet for all those that are excited about this, there are those that might be more skeptical.  Does your nonprofit really need another social networking page?

The NonProfit Times doesn't have a Google+ page, so we can't say with certainty whether it's necessary.  But from reading Google's blog post on the subject, it does seem to have some handy features.  For example, people interested in your organization can add a "+" before the name of your nonprofit in a Google search.  This will instantly connect them to your Google+ page. 

Interactivity is another selling point.  There's a feature called Google+ Hangouts, which allows users to interact with you via video.  I can see this as a great way for a nonprofit to have a discussions with supporters.  If you are interested in seeing how this feature works, you can check out a recent hangout that happened on the Google+ page for The Muppets Movie.  It should give you a good idea of what you can do with it (and it's kind of funny to watch).

So should your nonprofit create a Google+ page?  That's up to you ultimately, but it does seem like it offers some features that at least make it worthwhile to try.  Besides, there's no harm in having more of a presence online.

National Christian Foundation Hits Grant Milestone

The National Christian Foundation (NCF), a grant-making network based in Atlanta, Ga., announced today that it awarded its 3 billionth dollar since the founding in 1982.  The organization announced the news in a press release, and have also released a short video to thank their supporters.  NCF National President David Wills had this to say about the news:

"We’re grateful to be able to offer givers a foundation which helps simplify giving and multiply the impact. This is just the latest milestone in the modern-day Christian generosity movement, and we're excited to play a part in this historic time of giving."

CityTeam Ministries, a Christian nonprofit in San Jose, Calif., was the lucky recipient of the historic grant.  They got it after being recommended for a $300,000 grant by Hugh Maclellan of the Maclellan Foundation in Chattanooga, TN. 

This is not the first major news that recently has come out of NCF.  Earlier this year, they announced a nationwide expansion with their 25 affiliates.  They also developed a new brand and updated their website.  Visitors to the site can follow a nationwide giving blog, which gives them the opportunity to connect with givers and other experts from across the country.  Make sure to visit their site to find out more about the organization.

All About Fundraising

Fundraising is the engine that runs any successful nonprofit. While nonprofits generally raise funds through the donation of cash, there are many other ways to engage in fundraising. Some organizations will sell products to generate income, while others will set up elaborate events, such as special events. While direct response fundraising remains a popular way to contact donors, nonprofits are increasingly turning to the Internet as a source. This is known as online fundraising and it is not simply limited to email campaigns. There are a variety of online fundraising tools, such as pay per click links or donation widgets.

Are you interested in learning more about fundraising?  We have a ton of articles related to the topic on our website.  Why not check them out and see what you can find?

CDS Global/The NonProfit Times Webinar

UPDATE: Did you miss this webinar, or just want to hear it again/show it to a friend or colleague?  You can listen to the full recording of the webinar on our online library.

October 13th @ 10:00 AM CDT, join The NonProfit Times and CDS Global for a new webinar: "What's Keeping You Up At Night?  Creating Systems to Deal With Nonprofit Challenges."  Nonprofit organizations face many challenges today, whether it's scrutiny from donors and boards, donor acquisition and cultivation, operational efficiency issues, or the ever-increasing need to focus on technology.  This webinar will help your organization put systems into place that will tackle these issues and more. 

This webinar will feature Brett Ridge, Senior Solutions Manager for Nonprofits at CDS Global and Barry Spear, Vice President of Growth and Development at Madonna Reahabilitation Hospital.  Register for this exciting webinar today, and help get your nonprofit prepared for current and future obstacles!

Virtual Walking And Other Creative Nonprofit Ideas

What if someone told you that they participated in a charity walk while reclining on their couch?  You'd say they were crazy, right?  Think again.  Thanks to a concept called virtual walking, which was created last year by Fannie Mae for their annual Help the Homeless Walk, participants can help their favorite charity without ever leaving their home.  It's one of many creative ideas that nonprofits are coming up with to survive, as reported on by The Washington Post.

The economic slowdown has made life tough for all Americans, and nonprofits have been especially hard hit.  As a result, they have had to develop new, creative strategies to stay afloat.  The Post article gives the example of Columbia, Md.-based Ulman Cancer Fund for Young Adults. The organization narrowed its operation from national to local to take advantage of the growing number of corporations that are giving locally rather than nationally. 

As successful as the concept of the virtual walk has been for Help the Homeless Walk--it raised $6.5 million for 118 nonprofits in the D.C. area last year--there has been talk that Fannie Mae is planning to pull out of it in the future.  As a result, a D.C. nonprofit called N Street Village is planning to run its own version of the event next year.  Part of the preparation for this included using YouTube to recruit new participants.  Stuart Allen, the organization's associate director of development, was quoted in the Post piece as saying that they wanted to start reaching out as early as possible so it won't feel as "shocking" for people who have already supported them using virtual walking.

These are just some of the creative ways nonprofits are adjusting to life in the 21st century economy.  It's a rough job, but somebody has to do it.  We recommend reading the whole article from The Washington Post on their website.

Tips For A Successful Annual Giving Program

We all know that annual giving programs are an integral part of most successful nonprofits.  But what are the best ways to tell how well it's performing?  Looking at the numbers that come in is only half the battle.  The key to a successful fundraising program goes a lot deeper than the amount of money you generate.  The following tips, which come from a recent Association for Healthcare Philanthropy international conference, can increase the chance that your annual giving will remain strong throughout the years:

• Your program should work toward and achieve revenue goals while investing enough for long-term return. 
• You might consider including personal solicitations or creating "donor clubs" to enhance your revenue.
• Donor base development should be an important part of your annual giving program.  You can always use more donors.  You never know when your seemingly reliable donors will fall through the cracks.
• Show your donors you love them rather than need them.  You can do this with strategic communication and stewardship.
• Annual giving doesn't need to be separate from the rest of your fundraising activities.  Find ways to have it work with your planned giving and major gift programs.
• Get your volunteers involved.  They can end up being your best advocates and help you reach higher levels of performance.  The worst mistake you can make is thinking they won't be able to help your cause.

You may think your annual giving plan is going great, but there's always room for improvement.  Try implementing some of these tips to get your fundraising to the next level.

A Nonprofit For Miniature Horses

You've probably heard of people bringing dogs to visit senior citizens and hospital patients, but what about horses?  If you're wondering how they get these animals into the rooms to begin with, I have two words for you: Miniature horses.

Mini's Making Miracles, which is the subject of a story in The York Dispatch, is a nonprofit based in York Haven, PA, that brings young miniature horses to local nursing homes and hospitals to help patients.  For the founders, Kevin and Vickie Tyler, the organization represents a dream of theirs to turn their love of volunteerism and mini horses into a nonprofit that can improve the morale of patients.

According to the Dispatch, the Tylers spend between $3,000 and $5,000 every month on feed, transportation, vet bills, and insurance costs.  It's a hefty salary for a small organization, but Kevin Tyler says he is actively searching for sponsors and volunteers to help offset costs.  More information can be found about Mini's Making Miracles on their website.

Zurich/The NonProfit Times Webinar

UPDATE: Did you miss yesterday's webinar?  The recording is now available via our online library.  Check it out if you weren't able to attend, or just want to hear it again!

Risk comes in all shapes and sizes. It can be caused by an innocent accident or malicious intent. And, risk management plans often do not keep up with the times and technology. This webinar, hosted by The NonProfit Times and Zurich, will feature nationally-regarded expert speakers, and will focus on what risk entails, how to lessen an organization’s chances of being on the wrong end of a lawsuit and what to do if all of that doesn't work.

Speakers include:

• Melanie L. Herman, Executive Director of the Nonprofit Risk Management Center
• Woods Bowman, Ph.D., Professor of Public Service at DePaul University
• Holly Ross, Executive Director of NTEN

Register today! The webinar begins tomorrow, Nov. 3rd.

Legislators Introduce Postal Reform Bill To Save USPS

Struggling to stay afloat in a down economy, the United States Postal Service (USPS) is receiving much needed life support from a bi-partisan group of legislators.

At a press conference held this morning, four members of the U.S. Senate's Committee on Homeland Security and Government Affairs backed The 21st Century Postal Service Act of 2011: Joseph Lieberman (I-Conn.), Susan Collins (R-Maine), Tom Carper (D-Del.), and Scott Brown (R-Mass.).  It contains a number of provisions, including:

• Preserving six-day delivery for another two years.  After that period, the Government Accountability Office (GAO) will determine whether the Postal Service's financial situation is in good enough shape to support a six-day delivery.  The prospect of a five-day mail cycle was a huge concern for nonprofits and other businesses, so this will be a major relief for them should the bill pass.
• Refunding $7 billion to USPS through the Office of Personnel Management (OPM), as overpayment to the Federal Employee Retirement Health System (FERS).  About a quarter of that money would be used as retirement incentive buyouts of up to $25,000 (or credit service years toward retirement annuity) to reduce staff by 100,000, and pay down USPS debt.
• Giving USPS the authority by 2015 to deliver to curbside, sidewalk, or centralized mailboxes, rather than direct delivery.

These provisions, and the others included, are designed to help USPS and those that rely on it.  As Lieberman said at the press conference: “Too many people still rely on the Postal Service for us to sit back and allow it to collapse."  Tony Conway, executive director of the Alliance of Nonprofit Mailers, has already announced that his organization will support the bill.

In this era of bank bailouts, the members of the committee were quick to emphasize this is not a bailout of USPS.  The senators emphasized the $7-billion in payments to the FERS that originally came from ratepayers.

The 21st Century Postal Service Act of 2011 joins two other measures that are currently held up in Congress.  This one, however, seems to have a better chance of success since the four members who introduced it hold key committee assignments related to USPS.  Still, nothing is ever a given, so we will have to wait and see what happens with this bill.  Stay tuned for further updates as they occur.

Must-Have Skills For Fundraising Jobs

Cross-Posted From NPT Jobs

So you want to work in fundraising?  That's all well and good, but do you have the right qualifications?  Having a solid background in finance and numbers will help your cause, but nonprofits look for a wide variety of skills when choosing people for fundraising jobs.  Here are four skills that many organizations look for when going through potential fundraisers:

• A strong background in technology: If you have a great understanding of computers, the Internet, and social media, it will greatly help your cause.  The Internet is an important frontier for fundraising, so using it to research new donors will be a great help to the organization.
• Intellectual capacity beyond traditional book smarts: Being able to think outside the box to solve potential problems quickly is key.  The fundraising world will throw many different problems at you, so it's imperative to have great problem solving skills.
• Communication: A great fundraiser will have excellent written and verbal skills.  You should be very comfortable selling the organization to potential donors.
• Team Player: Fundraisers will often have to work independently, but they still need to be able to work efficiently with a team.  If you think that the donors you get are your property, fundraising probably isn't the right position for you.

Acquiring Hispanic Donors

Cross-Posted From Our Squidoo Page

Hispanics have accounted for 50 percent of the nation's growth since 2000. In addition, they have increased their population in the US by 37 percent between 2001 and 2009 and, according to the 2010 US Census, they make up 16.3 percent of the population. These numbers make it clear that nonprofits should do all they can to tap into this growing group. What are the best ways to go about acquiring Hispanic donors? The NonProfit Times recently wrote a piece on this topic:

*Spanish/Bi-Lingual Language Generates Lists -- When looking at this information, do not take "Spanish Language" in a title of Datacard as fact. It can be deceiving. In addition, research the list source, rely on usage information and understand the mailing cycle.

*Hispanic Affinity Lists -- These are lists from companies with Hispanic audiences and Hispanic influence, but include Hispanics as a subset or larger group they prospect. Look at the non-Spanish speaking/Hispanic names if a Spanish acquired list exists. Also, cross reference terms or words closely related to Hispanic culture.

*Enhanced DM-Sourced Lists -- When using these lists mail and evaluate multi-buyers generated from these sources differently. Also, be savvy about how the names were identified and ask questions.