New Oregon Law Would Punish Charities That Spend Too Little

A recently passed law in Oregon is targeting nonprofits that spend too little on their mission, subjecting them to financial punishments.

According to a report in The Star Tribune, House Bill 2060, which was signed by Gov. John Kitzhaber last month, will eliminate state and local tax subsidies for organizations that spend less than 30 percent on program services over a period of three years. The bill not affect federal tax-exemption on contributions.

The law was previously reported in an earlier article in The NonProfit Times.

Jim White, executive director of the Nonprofit Association of Oregon, told The Tribune that the law is the first of its kind in any state. "We're the first in the country, and we should be proud of that," he said.

The state's Office of the Attorney General has already identified 20 charities that all spend less than 30 percent of their budget on programs and services. All of the organizations on the list are based in states other than Oregon include a Troy, Mich.-based "Law Enforcement Education Program" that spends just 2.7 percent of its $2.2 million in annual expenditures on programs and services. The names of these charities were not revealed in the AG Office's list.

Oregon and other states had similar laws in past years that stopped charities from soliciting donations if they were spending too much on themselves and their fundraisers. Those rules were overturned in 1980 when the Supreme Court ruled they were a violation of a nonprofit's First Amendment Rights.

A spokesman for the Department of Justice indicated that the law is not in similar danger, as it does not restrict a charities right to fundraise.

You can read the full story in The Star Tribune.

The July 1 2013 Edition Of The NonProfit Times

Technology is front and center in the just-released July 1, 2013 issue of The NonProfit Times. From the latest trends in social media to the growing popularity of interactive maps, this issue has everything a nonprofit manager wants to know about new advances in technology, plus much more.

Here's a look at some of the articles you can expect to find:

Special Report

• Giving Beat GDP Before Inflation: Giving in the U.S. totaled $316.23 billion during 2012, up 1.5 percent when adjusted for inflation, according to the latest release of the Giving USA Report. Our special report takes a look at the finer details of the report and what it means for giving.

Articles

• BYOD: "Bring Your Own Device" Is A Growing Trend: Bring Your Own Device (BYOD) is a growing trend. Find out what it means for your organization in this in-depth piece.
• Picture This: What Comes After Twitter?: Facebook and Twitter are the two kings of social media but there is a growing trend in the field that threatens to at least challenge their reign: Pictures.
• Groups Using Mapping To Show Service Impact, Donation Transparency: Interactive maps and geographic information systems (GIS) can help your constituents visualize abstract data.

Columns

• Executive Self-Quiz: According to Susan J. Ellis of Energize, Inc., top managers are rarely aware of even the most basic information about the corps of volunteers supporting the organization’s mission.
• Exquisite Tailoring: Do you puzzle over a response device asking for contributions ranging from $25 to $500? Which is better – listing the lowest amount first or listing the highest amount first? According to Herschell Gordon Lewis, the answer is...yes.

11 Ways To Get Your Employees To Meetings

What are the first words that come to your mind when you are called into a meeting? If you are like most employees, they are probably "boring," "waste of time," or other similar terms. Yet for all of the negatives, meetings can be quite fruitful.

Talia Y. Leman, in "A Random Book About the Power of Anyone," wrote that there are ways for nonprofit managers to make employees dread meeting less. Some of the ideas come from Ben Hirschfeld of the Lit! Solar Lantern Project, and others are Leman’s own:

• Remember the win/win. Find out what makes individuals tick and help them understand how participating will help them;
• Get on their calendars. Give advance notice, and send reminders;
• Make attendance matter. Prepare agendas to harness the value others bring;
• Make their role matter. Having significant roles with official titles helps them see their contribution as a priority;
• Make it fit. Match people with jobs that fit their skills and interests;
• Make it simple. Break down actions that forward team goals into manageable steps with clear completion dates;
• Double-team mission-critical tasks. Adding a backup or co-leader can make a difference in making people comfortable and getting the job done;
• Take care of the team. Snacks and meals can be helpful, as are practical details about locations, etc.;
• Keep it moving. Respect people’s time;
• Keep everyone in the loop. People like to be part of a winning team; and,
• Build team spirit and show appreciation. Even a simple “thank you” matters.

Exempt Magazine: Spring 2013 Edition

The new issue of our sister publication, Exempt Magazine, is now online for our readers to enjoy. Here's a look at some of the stories you can find within the pages of the Spring 2013 edition:

Articles

• Buy Sell, Or Stay Put: The NonProfit Times asked 100 nonprofit executives what they thought of real estate related debt. Just 25.3 percent said yes without any restriction if it will advance mission.
• Employees Are Not Grabbing Access To Retirement Plans: In a study of three-year trending data from the 2012 Nonprofit Salary and Benefits Reports, The NonProfit Times found that many employees are not taking advantage of their organizations' retirement plans.

Column

• Volunteers May Sue For Harassment Under Title VII: A federal District Court in Illinois has allowed a female volunteer for two nonprofit emergency ambulance services to sue for sexual harassment and discrimination under the employee protection provisions of Title VII of the Civil Rights Act.

Head to the Exempt Magazine website to read these articles in their entirety. In addition, you should head to our online store to purchase a print or digital subscription of Exempt to get full access to all of the articles in the magazine.

NPT Salary Report: High Salary Means Low Turnover

One of the keys to a successful nonprofit is being able to maintain a low turnover rate. That is, you must keep the talented employees at your organization for as long as possible. Not surprisingly, it turns out that paying your workers a competitive salary is one of the best ways to do this.

According to data from the 2012 Nonprofit Organizations Salary and Benefits Report, those positions receiving the highest annual pay and highest annual bonus pay also have the lowest turnover rates. The top 10 positions that have this distinction are:

• Print Shop Manager -- 13.9 years
• Artistic Director -- 13.8 years
• Librarian -- 13.7 years
• Chancellor/President -- 13.3 years
• Chief Information Officer -- 12.5 years
• Chief Administrative Officer -- 12.4 years
• Building Manager -- 12.4 years
• Mail Clerk -- 12.2 years
• Director of Nursing -- 12.1 years
• Executive Vice President -- 11.8 years

It's also no coincidence that a number of these positions also received high bonus pay. For instance, the Chancellor/President position had an 8.85 percent bonus pay rate, and the Executive Vice President was at 5.94 percent.

Of course, data changes every year and that's why The NonProfit Times is looking for more participants for the 2013 Nonprofit Salary and Benefits Survey. The completion date for the survey is June 28th and those who complete it will be entered for a chance to win an iPad Mini.

Complete the survey TODAY and help all nonprofits by providing them with imperative compensation data such as those detailed in this post.

Free Webinar: Turning Nonprofit Regulations Into Opportunities

UPDATE: The webinar is in two days but there is still time to register. Sign up today!

Nonprofit regulations are constantly changing and this year has been no different. From disclosure about credit worthiness to meeting the standards set forth by the Affordable Care Act (ACA) many nonprofit managers find themselves asking the following question: How do I ensure accountability and compliance in all facets of my financial management?

In our upcoming free webinar with Intacct Corporation, "Turning the Challenges of Meeting Nonprofit Regulations into Opportunities," you will get the answer to that question and many more. Joined by financial experts Jackie Tiso of JMT Consulting Group and Kirk Danilson of Intacct, this webinar will show how nonprofits can leverage their accounting systems to effectively meet and comply with ever evolving regulations and standards.

You will also learn:

• What key new regulations and standards you need to worry about;
• How to implement internal controls to ensure accountability;
• How to provide transparency into NonProfit effectiveness to the donor community; and,
• Why cloud financials makes accountability easier than ever with lower cost and increased ease of use.

Sign up for this free webinar today and turn the challenges of these regulations into opportunities to advance your nonprofit.

4 Important But Basic Financial Statements

Executives and board members alike generally don't get much joy from financial reporting. They would rather focus on how to best fulfill their organization's mission yet, in order for that to become a reality, the fact of the matter is that these sometimes tedious tasks are a necessary part of any nonprofit.

As Marci Thomas and Kim Strom-Gottfried explained in their book "The Best of Boards," all nonprofits have at least three or four financial statements that must be completed if the organization is to meet federal and state regulations. These statements, which must be read together to have a complete picture of the organization, were described by Thomas and Strom-Gottfried:

• Statement of Financial Position: Also known as a balance sheet, this statement reports the organization’s assets, liabilities, and net assets at a specific point in time (usually at the end of the organization’s fiscal year).
• Statement of Activities: This statement reports the results of operations (revenues and expenses) and change in net assets for the year.
• Statement of Cash Flows: This statement provides information about the cash receipts and disbursements of the organization that result from operating activities, financing activities, and investing activities.
• Statement of Functional Expenses: This statement provides information about the organization’s expenses by function and by natural classification.

North Carolina Nonprofits Could Soon Pay Sales Tax

The North Carolina state Senate passed a measure Thursday that would cap sales tax refunds, a measure that critics say could cost hospitals, universities, and other charities millions of dollars.

According to a report in The Charlotte Observer, the Senate bill would cap sales tax refunds at $7.5 million initially, with that number going down to $100,000 beginning in July 2017. The state House did not include such a cap in their version of the bill, so its fate will be decided when the two chambers enter negotiations. The measure has strong support from Sen. Phil Berger (R-Rockingham), the president pro tem of the Senate who argued that nonprofit hospitals and other large organizations are nothing more than businesses organized as nonprofits. Berger framed the bill as a way to invigorate the state's economy.

“Our compromise plan incorporates feedback from folks across the state, provides much-needed tax relief to North Carolina families of all incomes and propels our state from the bottom of national rankings to the 6th best business tax climate in America,” Berger said in a statement.

On the other hand, the N.C. Hospital Associate has come out strongly against the cap estimating that it would eventually force the state's numerous nonprofit hospitals to pay $220 million a year in sales taxes. The N.C. Center for Nonprofits also estimates that the bill would affect about 250 of its 1,600 members. Don Dalton, a spokesman for the Center, said in a statement that hospitals would also be forced to cut back on services.

“Our hospitals are already facing $780 million per year in decreased payments every year for the next 10 years for serving Medicare patients,” Dalton said. “The State has not yet chosen to expand Medicaid or provide alternative coverage options for the state’s poor. Hospitals will continue to serve these uninsured patients without adequate compensation.”

Reach Thousands Of Potential Customers With NPT's Resource Marketplace

Your company can be listed, for FREE, in The NonProfit Times' online Resource Marketplace. The Directory is a special feature on our newly updated website which draws 100,000 unique visitors every month and generates 420,000 page views.

To be listed, simply click this link, fill out the form the page links to, and email it to me at mary@nptimes.com or fax it to (973) 401-0404. It’s that easy.

If you’re looking to stand out from the crowd, you can choose from two enhanced listing packages -- the Silver and Gold packages, priced at $599/year and $1,195/year, respectively -- which include such additional features as linked email and website, complete company description, logo, and pop-to-the-top listing in the category you choose.

Don’t hesitate to call Mary Ford with any questions about this great opportunity to add your free listing to our online directory or about advertising in our print Resource Marketplace which runs in all 16 editions per year of The NonProfit Times. All print advertisers automatically get an enhanced listing online.

Once again, here is Mary Ford's contact information:

E-mail: mary@nptimes.com

Phone: 973-401-0202 x206

Webinar: Catching the Attention of the Smartphone Generation

UPDATE: Missed this webinar? You can view the event in its entirety by clicking here.

Should your organization really care about (and value) a Like, a Tweet, or a share? It may not seem like much right now, but these activities could be worth a fortune in the future.

In partnership with Avectra, The NonProfit Times is pleased to present a free webinar -- "Catching the Attention of the Smartphone Generation" -- on the value of social giving on June 6 at 2:00 p.m. EST. John F. Clese of Avectra, along with Dennis Chyba, president and founder of Adcieo, and Brittany Flower, communications and marketing manager at Susan G. Komen's Maryland affiliate, will discuss how your organization can reach the Millenial generation. Although they aren't in their prime donation years, it doesn't mean they aren't supporting your organization.

Here is some of the things you will learn from this webinar:

• Why your organization's future depends on engaging the next generation of donors known as the Millenials -- a group larger than the influential baby boomers. 
• Strategies to engage Millenials and attract them to your cause. 
• How micro-project fundraising and crowd-contributing are ready-made for the way this generation likes to engage and participate. 
• A case study on how to run a successful peer-to-peer fundraising campaign and leverage peer networks in the new digital giving landscape.

Register today so you can get your organization on the right track for the future.

3 Ways To Analyze Data

Prospecting for donors has some similarities to what the Gold Rush prospectors did in the the 19th century. Back then, it was enough to shake a pan of gravel in the water and look for what nuggets stayed behind.

Fundraisers are doing the same thing now when combing through data, but it's no longer good enough to use that old-fashioned approach.

Prospecting is a much more sophisticated process these days and, according to Helen E. Brown, Jennifer Filla and Debbie Sokolov, it can pay much bigger dividends than before. Speaking during the AFP 50^th International Conference on Fundraising, they said that fundraising can be improved through prospect research, and that consists of three main components: data analytics, relationship management and donor research.

Looking more closely, they are:

• Data analytics. This includes electronic screenings, data mining, donor modeling and graphing. It helps identify new prospects, segments donors and prospects quickly and efficiently, and, illustrates division/department/individual progress toward goals.
• Relationship management. This means prospect tracking. It makes sure no potential major donor gets lost between the cracks, measures activities to show the board and donors how close the organization is to its goals, and, provides continuity with donors even though staff changes.
• Donor research. This gives the organization the confidence to ask for a stretch gift, finds the links between donors, prospects and the organization, allows the organization to set up a personalized strategy around each major gift prospect, and, keeps the organization current on public events in a prospect’s world.

Do All Nonprofit CEOs Make $100K?

Executive compensation is a tricky subject for nonprofits. Since this information is available in an organization's Form 990, it's important that a CEO does not make more (or less, for that matter) than those at similar agencies lest it face public backlash.

Luckily, there's an easy way to fix this potential problem.

Get behind the numbers by participating in The NonProfit Times' 2013 Salary & Benefits Survey. In addition to the tantalizing data about average salaries ($107,561 for  CEO/President/Executive Directors) and salary increases, the survey goes several steps beyond, drilling down to details about benefits, bonuses and turnover rates to present a rich tapestry of key data and information.

The completion deadline for the survey is July 31, and those who finish on-time will be entered to win an iPad Mini. You can start the process, which takes no more than an hour, by visiting the survey application page.

7 Elements Of A Successful Fundraising Event

Every nonprofit wants a successful fundraising event but are they doing the right things to have one? According to one expert, this is not always the case.

During a recent international conference on fundraising, Vivian A. Smith of Liberty Quest Enterprises said that a diverse fund development program should include events, but urged organizations to incorporate them thoughtfully into their overall strategy. They should not, she said, be viewed as standalone initiatives used just to raise money.

To be successful, planners of an event must consider:

• Event Purpose. Is it just money, new prospects, increasing public awareness, gaining attention or some other objective?
• Prospective audience. Think of characteristics and demographics, as well as the size of the group and the kind of appeal that is appropriate.
• Type of event. It should meet the goals and reach the target market. It should be mission focused. Is there competition?
• Resources needed for the event. This includes staffing, leadership, volunteers, time, skills, budget and a contingency plan.
• Cost per dollar raised. This includes both direct an indirect costs.
• Evaluation. Think of event goals, net revenue, staff commitment and volunteer impact.
• Outcome. This is not just dollars raised at the time of the event. It can also serve as an opportunity to build team spirit among volunteers and staff.

Featured Nonprofit Job: Executive Director, National Chimney Sweep Guild

Looking for a new high-level nonprofit job? The National Chimney Sweep Guild in Plainfield, Ind., is looking to hire an Executive Director. Read on for more details.

The chosen candidate for this position will be responsible for the management of the day-to-day operations of the organization, staff development, budget preparation, financial oversight, public relations oversight, member recruitment, program development oversight, and development and maintenance of standard operating procedures.

Other responsibilities include:

• Staff leadership;
• Board facilitation and strategic planning;
• Financial management;
• Marketing oversight;
• Membership development; and,
• Convention planning and execution.

Want to apply? Head to the NPT Jobs Career Center for application instructions.

Nonprofit Employee Retention And The NPT Salary Survey

If there's one thing a nonprofit can't afford in these tough times it's losing workers. Employee retention is an essential ingredient of any successful organization and, as a nonprofit manager, it's your responsibility to figure out what is going wrong if you are losing staff left and right.

High turnover can be caused by many things but the common denominator is usually salary. This is one of the many reasons The NonProfit Times' Salary Survey is so important. Simply put, your organization will find itself with a dearth of talent if your salary and benefits packages are not on par with similar nonprofits.

As was mentioned in previous blog posts, the data from the 2013 Salary Survey will be used to NPT's comprehensive Salary and Benefits Reports. Just for completing the Survey, participants will receive a FREE executive summary of the results and your entire organization will get 50 percent off the full 2013 Salary and Benefits Report. Once you get this crucial information, you will be able to see if the compensation you are offering your employees needs to be adjusted to remain competitive with similar nonprofits. 

Participating in the Salary Survey is easier than ever with some of the new features in this year's edition. Anyone who participated in the survey in 2011 or 2012 can use their existing data to jump start the 2013 survey completion process. You only need to change the data that is different. In addition, the survey has been streamlined to make for a smoother and faster experience for first-time users.

Participate in the 2013 Salary Survey today and help all nonprofits get on the right financial track!

Professional Development Guide 2013: Don't Rest On Your Laurels

What makes a nonprofit successful? More often than not, it's a strong leadership team that is willing to make the tough decisions. This makes it easy for managers to rest on their laurels but, if they are not careful, that one-time strength can quickly disappear.

The NonProfit Times' Professional Development Guide, which appears in the newly released June 1 issue, is a white pages for services that will help potential nonprofit leaders hone their skills. From nonprofit management degrees at leading universities to leadership seminars, organizations should consider all of these services for their employees so there are worthy successors when it comes time to pick a new CEO or executive director.

There are other things nonprofits can do to develop new leaders. In the Bridgespan Group's Plan A: How

Successful Nonprofits Develop Their Future Leaders, Kirk Kramer and Preeta Nayak detailed five steps that can be taken that will get your organization on the path to a brighter future. Those steps are:

• Engage Your Senior Leaders: If you are a CEO just launching your leadership development efforts, begin by telling your senior team that it is important that they develop as individuals and that you’ll help each of them to do so.
• Understand Your Future Needs: Gather your senior team for a once-a-year offsite meeting to discuss where your organization is going and the potential of their direct reports to move into more senior roles.
• Develop Your Future Leaders: Meet twice a year with each of your direct reports to discuss their progress against their leadership development goals.
• Hire Externally to Fill Gaps:Identify the areas where you will likely need to hire externally to meet your future needs and those where you should aim to build capacity from within.
• Monitor and Improve Your Practices: Set targets for accomplishing the work of the previous items on this list. Next, report on your organization’s progress against those targets to your senior team and the board. Finally, determine leadership development priorities for the coming year.

Follow these steps and check out NPT's Professional Development Guide, and your nonprofit will be on the path to a more sustainable future.

The June 1 2013 Issue Of The NonProfit TImes

The June 1 issue of The NonProfit Times is now online and with it, all the reading material you will need to get through the summer heat. The new edition contains, among other stories, a look at how the Affordable Care Act (ACA) is affecting part-time work and a list of the favorite websites of nonprofit tech experts.

Here's a closer look at the content you can expect to find in the magazine:

Special Report

• Nonprofit Techies Find Comfort In The Familiar: We talked to six tech experts in the nonprofit sector and asked them what their favorite web hangouts were. Answers ranged from PostSecret to Invisible People yet all these sites had one thing in common: They fit with their passions.

Articles

• ACS: Next 100 Years: Now that the American Cancer Society has hit its 100th anniversary, CEO John Seffrin looks back at what the organization has accomplished, and its goals for the future.
• Online Auctions Can Be The Cat's Meow: Go into any of the 2,700 Goodwill stores and you’ll find a lot of the same types of things: clothing, books, electronics, furniture. What you won’t find are pieces of artwork worth as much as a new car, all of which are being auctioned on the organization's website.
• Part-Time Staff Hours In Flux Due To Obamacare: Many organizations are having trouble with how to meet ACA's implications — including what will be required of the association under the shared mandate for employees’ health insurance.

Columns

• Transformational Gifts: Rick Christ, vice president of Amergent, argues in this column that all gifts need to be "transformational." What makes a gift have this trait? Turns out there are at least eight characteristics.
• To-Ga. To-Ga. To-Ga: Want to thank your volunteers for a job well done? Susan J. Ellis, president of Energize, Inc., has some ideas on how to throw a great party for them.

What Can The Nonprofit Salary And Benefits Report Do For You?

Now that the 2013 Nonprofit Salary and Benefits Survey has begun, you are probably asking yourself: "What's in it for me? What do I get for my time?" A large cash prize might not be heading your way for completing the Survey but you will get something even more valuable: Peace of mind for your nonprofit.

Our annual Salary and Benefits Reports are born out of these surveys and they provide important financial information for all nonprofits. Among the things these reports will help you do are:

• Avoid trouble with the IRS by being able to check YES on your Form 990 regarding salaries for your chief executive and key employees set using comparability data for similar positions.
• Learn about 94 employee benefits — going way beyond dental plans and summer hours.
• Get data by nonprofit field, budget size, number of employees, and region throughout the U.S.
• Attract and retain the best employees by knowing how to offer fair and competitive compensation.

In addition to these benefits, participants also receive a FREE executive summary of the Survey, with full salary data for all positions, and will be entered to win an iPod Nano if your survey is completed by July 31! All of that for just an hour of your time.* So what are you waiting for? Start your 2013 Salary and Benefits Survey today!

 *Good news – this year’s survey is streamlined and even easier to complete! And if you’ve participated in past years, you can use your existing data as a jumpstart and just change any data that is different.

NPT Takes Home Top Awards In Better Journalism Contest

The Society of Professional Journalists has released the results of its annual Better Journalism Contest, and The NonProfit Times is proud to have been honored with eight top awards.

Sweeping the entire category for Magazine – Opinion, NPT landed first, second, and third place prizes for in-the-moment editorials on crippling attitudes toward poverty, the federal government’s dangerous attempt to establish a fundraising arm, and the Planned Parenthood scandal that rocked the Susan G. Komen organization.

Another first place win came in the Online – State or Regional News category for NPT’s comprehensive “The Recovery Begins from Jersey Girl Sandy” posted on October 31, capturing the raw response to the ongoing crisis in the state.

Other wins include:

• Second place for Magazine – Business Reporting
• Second and third place prizes for Magazine – Investigative Reporting
• Second place for Magazine – Reporting

Featured Nonprofit Job: Fundraising and Sponsorship Major Donor Gifts Manager

Looking for a new nonprofit job? The NPT Jobs Career Center has a new featured job that is perfect for experienced fundraisers. Interested? Read on for more details.

Odell, Simms, & Lynch in Tysons Corner, Va., is looking to hire a Fundraising and Sponsorship Major Donor Gifts Manager to to work in their Fundraising & Sponsorship (F&S) team. The position entails working with a wide spectrum of national and local Non Profits to fundraise on their behalf for capital campaigns, programs, and general operating expenses.  The Account Manager will work closely with other members of the F&S team to service multiple clients.

Other major responsibilities include:

• Cultivate and solicit high net worth individuals, foundations, leadership at Fortune 500 companies, and c-suite executives.
• Develop and manage creative fundraising strategy collaboratively with nonprofit clients.
• Write and edit customized letters, proposals, fact sheets, presentations, and additional marketing materials.
• Collaborate with nonprofit clients, development and support staff, and board of directors.

All interested applicants should head to our career center to learn more about this job, including the necessary qualifications and application instructions.