Plan to Sell “Toxic Assets” Announced

Today in Washington the Obama Administration announced the new plan to deal with the so called “toxic assets” that have been at the root of the economic crisis. To free up lending, this new program plans to attract private investors by offering low-cost loans from the FDIC and the Federal Reserve.

The way the program would work is that a private investors would purchase of a bunch of bad mortgage loans by putting up 6 percent of the cost. The FDIC would cover 84 percent of the cost of a loan and the remainder of 6 percent would be taken from the $700 billion in Federal bailout money.

This new program appears to get the nod from Wall Street. Many people have wondered whether Treasury Secretary Timothy Geithner would be able to recover from his first failed attempt, on Feb. 10, to unveil a bailout initiative. There was a stunning disappointment from the lack of detail. Wall Street showed that disappointment with huge losses that day.

The Obama Administration wants to get the new program out there and test the success of the program before asking for more money from Congress. They put in a placeholder request of an additional $750 billion; however voters are not so keen on further bail outs after the AIG bonus scandal.

Nonprofits have seen the usually generous public pull back on gift giving due to fears about the troubled economy. Hopefully, this program will help to get the economy back on track and get the lending going again.

Will this program help nonprofits by shoring up public confidence? Tell us what you think.

Asking for Money in Tough Times

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

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

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

Remaining Optimistic About the Economy

According to the Associated Press, “Billionaire Warren Buffett said unemployment will likely climb a lot higher depending upon how effective the nation’s policies are, but he remains optimistic over the long term.

Buffett said the nation’s leaders need to support President Barack Obama’s efforts to repair the economy because fear is dominating Americans’ behavior and the economy has basically followed the worst-case scenario he envisioned.

‘It’s fallen off a cliff,’ Buffett said Monday during a live appearance on CNBC. ‘Not only has the economy slowed down a lot, but people have really changed their habits like I haven’t seen.’”
Perhaps we needed to change our habits. President Obama told the nation that it would take time for his economic stimulus package to begin working. The President has only been in office for 49 days and yet there are those who are criticizing that he is taking on too much while others wonder whether enough is being done with the banks.

It seems like a little patience is in order here. I know that we get information instantly these days, however, we need to stand back and wait a little bit while the plans are implemented. Perhaps we need to let some of the banks fail or let companies like AIG reorganize themselves and stop throwing more money at dying companies.

Like a bleeding patient in an emergency room, the preliminary measures taken are to stabilize the patient’s vital signs. Only when it is clear that the patient is stable can any additional efforts be made to “fix” the problem. We need to stop the bleeding that appears to be coming from the housing market and then go back and infuse money into the banks.

Until our economy is stabilized, the nonprofit sector will continue to feel its effects. What are you doing to remain optimistic in this difficult recession?

Recovery.gov

In a video on President Obama’s Web site Recovery.gov (http://www.recovery.gov/) the president promises that “The American Recovery and Reinvestment Act will be carried out with full transparency and accountability.” This new Web site will be the centerpiece of that effort. President Obama describes how we can track the Recovery Act's progress. He promises to disclose full details in a “timely, targeted and transparent manner.” Once the money starts to flow we will be able to see how that money is spent. Here is an overall breakdown of the budget:

According to the timeline, Federal Agencies will begin reporting their use of the funds beginning today, March 3, 2009. By May 3rd, Federal Agencies will make their performance plans publicly available and will report allocations for entitlement programs.

The site encourages citizens to tell their stories about how the investments are working. They also want to know what is not working. As soon as the money begins to flow into the veins of the economic machine, we will be able to communicate our perceptions of how well it is really working. Obama has told us that he will try new things and get rid of ideas that are not working so this is our chance to really get involved in our democracy directly.

During his run for president, Obama used the web and technology to reach out to his constituents and raise an unprecedented about of funding for his campaign. This use of technology in his administrations has put information directly in the hands of the people and at an incredible pace. This kind of transparency is only possible because of the Internet.

There is an interactive map under the “Impact,” “Jobs” tab that allows you look at your own state to see how much money will be used to create new jobs. In the “FAQ” section they answer commonly asked questions with links to the actual “Recovery Act” documents.

Take a look at the site. Let us know how you believe this Web site will affect nonprofits like yours. Has the recovery program had adverse or positive effects on your organization? Let us know.

Digging for “Good” News

Americans must like being afraid. Every poll you here says that we are frightened. According to CNN, “73 percent of those questioned in a CNN/Opinion Research Corporation survey released Monday say they're very or somewhat scared about the way things are going in the United States. That's six points higher than in an October poll.”

Whatever happened to the great politicians like Franklin D. Roosevelt who told us: “There is nothing to fear but fear itself.” Americans needed to hear that message and believe that there was a grown up at the helm and that there was hope for the nation. What we need is a plan that each of us can stand behind with each person doing his/her part to turn things around. We need to hold steady, try to find ways to save time without slashing jobs. By over-reacting we contribute to the frenzy.

What are ways that you can keep afloat? Technology can be a great way to get more accomplished for less. Invest in technology savvy systems, like content management systems where information can be found easily, repurposed and reused.

How can you stay the course? Rather than laying-off experienced workers, why not look at ways to keep them still working while trimming expenses. Getting rid of the experienced will only add to the downward spiral by cutting into the stable parts of our economy.

Find your courage nonprofits! Be the creative problem solvers that you know you are. Get out your shovels and start digging for good news. It is there. People are ready to help one another. Volunteers will still give of their time for worthy causes.

What do you think will turn Americans around and spur them into taking courageous action? Your thoughts.

Obama Signs Stimulus Bill

Denver, Colorado - President Barack Obama signed the $787 billion economic stimulus package in Denver today after the Senate passed its version of the bill late Friday. We have been waiting, what seems like ages, for news of the plan passing meanwhile each day brought news of further job cuts and business failures.

In his weekly radio and Internet broadcast, Obama said, "I will sign this legislation into law shortly, and we'll begin making the immediate investments necessary to put people back to work doing the work America needs done."

He reminded us that, "The problems that led us into this crisis are deep and widespread, and our response must be equal to the task."

The struggle in the Senate lasted weeks, with lawmakers on both Democrat and Republican sides desiring to warm up the frozen credit markets and get lending going again. There are those who have begun to call some of the failing banks “zombies” because they seem lifeless and unable to get back to lending. It is everyone’s hope that this stimulus money will get the banks’ lending again.

The question is, what will it really take to get people spending? Opinions differ widely. However, this bill's tax cuts will come in the form of relief for 95% of Americans. The amount of $400 for individuals and $800 for couples will come in the form of diminishing payroll taxes by a small amount over time. Lawmakers believe that people will be more willing to spend the small addition to their paychecks rather than hold onto such small sums.

Also included in the stimulus was $70 billion to shelter upper middle-class and wealthier taxpayers from an income tax increase and two of Obama's initiatives; the expansion of computerized information technology in the health care industry and billions to create green jobs that will hopefully, begin to reduce our dependence on foreign oil.

The nonprofit sector will see billions infused into schools and local governments to help prop up jobs. Will this stimulus package restore our faith in the financial system? We wait with expectation to see if this new administration can begin to defrost the frozen economy. What are your thoughts?

Email Legitimacy – Spam or Legit?

Email has become a great method of keeping in touch with donors and constituents. Email is fast, cheap and easy, or is it? If you have done everything that you are supposed to do, to get your subscribers to “opt in” and have found that your emails are not necessarily making it to their destination, you are not alone. Every time an angry recipient hits the “Report Spam” button your reputation is tarnished. You work very hard to get email addresses from qualified “opted in” recipients only to have them “unsubscribe” when you send them the “special offers” that they told you they would like to receive. Your email list is continually dropping out members. Join the club.

There are two big problems that you need to be aware of: 1) recipients are inundated with too much email; 2) spam filters are getting ever more sophisticated.

Everyone is receiving so much correspondence by email that they feel overwhelmed and use the “Report Spam” button as the easiest way to get rid of a lot of “advertisements”. They believe that their name has been sold and that they are receiving emails that they did not really want. If you are selling your lists you may want to reconsider whether this practice is helping or hurting your efforts.

Another issue that you can’t really do anything about is Bayesian spam filtering, named after Rev. Thomas Bayes that is a form of e-mail filtering that processes email using a classifier to identify spam email. It is one of the techniques used by search engines to distinguish illegitimate, spam email from legitimate email. Much modern mail client software has implemented Bayesian spam filtering. Users can also install separate server-side email filters. The way they work is by identifying particular words that have a high probability of occurring in spam email and in legitimate email. If your email has the words that have been identified as spam words in it, your emails may be filtered. They may never make it to their intended destination.

Are you experiencing problems getting legitimate email to your members? Let us know what tactics you are employing to cope with this issue.

Taking a Lesson from the Superbowl

Wow! This year’s Super Bowl was the kind of heroic turnaround that Americans just love. Coming from behind, the Pittsburgh Steelers went back to an old type of play, go left, go right, find someone open, pass the ball and run. Using their resolve, the Steelers charged ahead at the last minute to win their sixth Superbowl against the Arizona Cardinals in Tampa with a 27-23 victory. According to MSNBC, Steelers’ quarterback Ben Roethlisberger told his teammates “it’s now or never, I told the guys all the film study you put in doesn’t matter unless you do it now”. And they did.

In the face of huge obstacles, with the biggest economic crisis in decades overshadowing everything, keeping a cool head, working together, and using tried and true techniques wins the day. Nonprofit organizations face excruciating obstacles with donor money drying up but this is the time to pull the team together and say “it’s now or never.” It is amazing what great ideas can emerge from facing down your fears and driving ahead in spite of the odds (I was a cheerleader in high school). I say go team, go! America is not licked yet. We will rise up, take control and move forward. Is it time to go back and look at your most successful fundraisers and give them a new twist? What are your thoughts? Tell us what has worked for you.

Tumultuous Time in Business Sector Opens Up Opportunities

As the tsunami of job cuts continues in the American marketplace, economists’ predictions are making the year 2009 look pretty bleak. Major American companies like Home Depot, Sprint Nextel, Caterpillar, and Pfizer, announced thousands of job cuts today and it looks like the trend is expected to continue for the next six months.

While the news is bleak there is a silver lining to this cloud. Prime television and radio space is available at bargain basement prices. Also, talented employees whose jobs have been eliminated are available for hire.

Bargains are everywhere… that is, if you have the money to take advantage of them. This might be the perfect time for nonprofit groups to shore up their workforce and broaden advertising plans to include television and radio. According to AJ Khubani, president of Telebrands (the folks who make all of those “As Seen on TV” gadgets for “Just $19.99") this is a boom time for businesses with low priced goods and services.

Nonprofits could take a lesson from this “infomercial” advertising model. According to Infomercial DRTV, “Infomercial production costs generally start at $75,000 and go up from there. An infomercial media test cost is typically $10,000-$15,000.If the test is successful, then media expenditures will increase, which can translate into in a larger ROI.

For example, if your infomercial campaign spending is at $10,000/week and bringing in $20,000 in revenue, if you can maintain that same 2:1 revenue to media expenditure ratio (Media Efficiency Ratio or MER), at a spending level of $100,000/week, then your campaign will generate $200,000 in revenue.”

Opportunities abound for those who have a sense of innovation. When the going gets tough, the tough really do get going. What are your thoughts?

I Have a Dream…

How far we have come since that day On December 1, 1955 when Rosa Parks was arrested for refusing to give up her seat on a bus in compliance with the Jim Crow laws that required black people to sit at the back of a bus and give up their seats to any white person requesting it. Rev. Martin Luther King Jr. spoke out against segregation and urged the people of Montgomery to Boycott the buses. That boycott ended in the United States District Court ruling in Browder v. Gayle that ultimately ended racial segregation in Montgomery, Alabama.

Today, January 19th, is the day the nation observes the birthday of Rev. King. He is remembered for his famous "I Have a Dream" speech, given in front of the Lincoln Memorial during the 1963 March on Washington. He said in that speech "I have a dream that one day this nation will rise up and live out the true meaning of its creed: 'We hold these truths to be self-evident, that all men are created equal.'" King’s assassination in Memphis on April 4, 1968 focused the civil rights movement and moved American’s to take more action against discrimination.

It seems fitting that Barack Obama, our first African-American president, will be sworn in tomorrow, Janaury 20th, in front of that same monument. According to National Public Radio, Barack Obama will enter the office of president with the highest rating in history of an incoming president, 80%. Perhaps the near collapse of our economy and the low approval rating of outgoing President George W. Bush have contributed to this optimism, but our country seems to be looking forward to the change.

We all have a dream of a brighter economic future for this country. How do you think Barack Obama is handling his transition? How do you think his policies will affect the nonprofit sector? What policies would help to improve your efforts to keep your organization going in these difficult times?

The Senate Presses Forward Land Protection Bill

Yesterday, in a rare Sunday session and with a 66-12 vote, the Senate moved forward legislation that would reserve more than 2 million acres in nine states as wilderness. Final Senate approval is expected later this week and supporters of the bill hope the House will also approve the legislation.

The bipartisan package of bills represents years of work by many senators from many states to continue the legacy pushed forward by Theodore Roosevelt in 1891 when Congress passed the Forest Reserve Act allowing the President of the United States to set aside forest lands.

The bill is actually a collection of about 160 bills sponsored by many states to give the land the government's highest level of protection. The lands that have been designated as wilderness include Zion National Park in Utah, California's Sierra Nevada mountain range, Oregon's Mount Hood, Rocky Mountain National Park in Colorado, parts of the Jefferson National Forest in Virginia, Idaho's Owyhee canyons, Pictured Rocks National Lakeshore in Michigan. The bill would also limit further oil and gas leasing in the Wyoming Range. Additionally, 387 miles of rivers and streams in Snake River headwaters will be protected.

If this bill continues forward and passes in the House, it will represent a real victory for environmental groups. Hopefully this type of positive reform will continue with this new Congress. How do you believe this legislation will impact your nonprofit organization? Is this the first of good things to come with regard to protection of the environment? Give us your thoughts.

Helping Donors Make Wise Choices

Attorneys General across the United States warn donors about making charitable contributions due to the number of scams that have surfaced using the internet. The suggestion that donations are not making it to intended destinations feeds the worries of donors, perhaps making them hold back on contributions.

Would donors still be interested in your cause if they knew that less than half of the money they donated actually made it to the worthy beneficiaries? Helping donors make wise, informed decisions about charitable contributions could come down to putting information at their fingertips. Most people want to be sure that they are giving to a worthy cause and that the money they give is helping. Here are some ideas that might help make the gift-giving experience a success on both sides.

Help donors to make an informed choice. Provide information about how much of the gift givers’ donation will actually go to the charitable cause.

Don’t make high-pressure appeals. Legitimate charities don't rush donors.

Provide written information. Legitimate charities will be willing to send information to donors before a transaction takes place. Provide information on your organization's mission and on how your donation will be used along with proof that the contribution is tax deductible.

Have a call in line. Make sure that your charity can be reached by phone. This will allow a donor to make sure that you are legitimate.

Make sure credit card payments provide security. Credit card payments make funds available more quickly. Using a secure site like PayPal can make the user experience easier and secure.

Provide appropriate tax information. Make sure to provide tax deductible information for federal and state income taxes. Donating to some tax-exempt organizations may not necessarily result in a tax-deductible donation and some organizations may even try to use terms like "tax I.D. number" or "keep this receipt for your records" to suggest they are tax-exempt charities when they aren't. For record keeping, a canceled check or credit card statement generally is sufficient for IRS purposes when you donate less than $250. For larger donations, you will want to provide properly worded receipts from your charity confirming the donation.

Provide alternative forms of giving. Provide alternative forms of giving such as charitable gift annuities, gifts in-kind, and endowments.

Make it easy to volunteer. Giving of time and personal skills can be a valuable to nonprofit organizations. Get organized and make it easy for someone to give their time.

What has worked for you? Give us your ideas.

On the Brink of Change

It is difficult to spend much timing musing over the year 2008. At this time of year many of us look back on the year that has passed and try to make sense of it. Our mistakes, hopefully, will teach us what not to do or guide us toward trying things that worked for others. We reminisce over the fun and exciting events of the year with plans and goals freshly laid for the coming year. The last quarter of 2008 was fraught with daily upheaval and financial losses that caused many people to despair. I needn’t list everything that went wrong (it is a long, long list). I have had enough doom and gloom and 2008 can be summed up as a financial mess. So let’s step back to look only at those things that stand out as hopeful against this grim backdrop.

Most prominent was the election of a new President and the excitement, swelling around the globe, of his upcoming inauguration on January 20th. Obama has wasted no time organizing his transition and making appointments to his cabinet. All of Obama’s picks appear to have substantial experience and come from diverse backgrounds, they are:

• Senator Hillary Clinton as secretary of state - Clinton seems to be uniquely qualified to be secretary of state bringing her years as a senator and first lady in her husband's administration as important experience.
• Timothy Geithner as Secretary of the Treasury – has been the head of the Federal Reserve Bank of New York since 2003
• Larry Summers as Director of the National Economic council – served as The World Bank’s chief economist and treasury secretary under Bill Clinton.
• David Axelrod as Chief Advisor – served as Obama’s chief strategist during his campaign.
• Eric Holder as Attorney General – served as Bill Clinton’s deputy attorney general and as Obama’s legal advisor during his campaign
• Harry Reid as Senate Majority Leader – served in the house from Las Vegas and then moved to the senate in 1987.
• Tom Daschle as Secretary of Health and Human Services – was a congressman from South Dakota and minority leader in the senate until he lost his seat in 2004.
• Bill Richardson as Secretary of Commerce – has served as governor of New Mexico and as energy secretary.
• Robert Gibbs as Press Secretary – lead Obama’s communications team during his campaign.
• Paul Volcker as Chairman of the Economic Recovery Advisory Board – served as chairman of the Federal Reserve under Jimmy Carter.
• Robert Gates as Secretary of Defense – is currently serving as secretary of defense under George Bush.
• Rahm Emmanuel as Chief of Staff – is an Illinois congressman and was an aide to Bill Clinton.
• James L Jones as National Security Advisor – was a four-star general who served in the Marine Corps for four decades.
• Nancy Pelosi as speaker of the House and is the congresswoman from San Francisco.
• Henry Waxman as Chairman of the House Energy and Commerce Committee – is a representative in the house for Los Angeles and chairman of the committee on oversight of government reform.
• Janet Napolitano as Secretary of Homeland Security – served as Arizona’s attorney general and became governor of that state in 2002.
• Susan Rice as US Ambassador to the United Nations – was a Rhodes Scholar with a doctorate in philosophy, and held several positions during the Clinton administration including assistant secretary of state under Madeline Albright.
• Arne Dunkan as Secretary of Education – is the head of education in Chicago, the third largest education system in the US.
• Steve Chu as Head of the US Energy Department – is the Nobel-prize winning physicist from the University of California Berkeley.

Generally, Americans are looking forward to the change in government with anticipation. The nonprofit sector has suffered recent setbacks along with the rest of America but a reason for optimism shines as a beacon of hope for all of us. What do you think of Obama’s picks? How do you think these choices will affect your nonprofit?

Plenty of Money

When I was a student in primary school, I performed in a production of a play entitled “Plenty of Money”. It was a madcap musical production where a crazy old lady prints her own money to be able to give it to charities. As I listened to what Federal Reserve Chairman, Ben Bernanke has planned to get our economy going again; I was reminded of that crazy musical. We will just print more money!

In the old days, the gold standard, monetary system backed our paper notes with gold and those paper notes were freely convertible into fixed quantities of gold. That was a solid, rule-based system that protected citizens from hyperinflation and other abuses of monetary policy. In 1971, however, the representative gold system collapsed and nations of the world switched to the fiat money system in which paper notes are backed only by use of lawful force and debt payments are collected through taxes.

The Wall Street Journal reported the excitement that everyone but me was feeling about Bernanke’s announcement that the Fed’s would print more money. They said:

“Wall Street that day did handsprings. Even government securities prices raced higher, as if, somehow, Treasury bonds were not denominated in the currency with which the Fed had announced its intention to paper the face of the earth. Economic commentators praised the central bank's determination to fight deflation -- that is, to reinstate inflation. All hands, including President-elect Obama, seemed to agree that wholesale money-printing was the answer to the nation's prayers.”

I read that the root cause of hyperinflation is an unchecked increase in the money supply. So, the question is what is to protect us today from hyperinflation? Should we just print more money in order to keep our country’s businesses, including charitable organizations afloat?

Madoff Made Off with Billions

First there was Freddie Mac and Fannie Mae and the bad mortgage lending. There was the loss of Lehman Brothers and who could forget the AIG Credit Default Swaps that left taxpayers holding the bag. Then the top three Detroit auto makers announced they were pushed close to insolvency. Citigroup announced the layoffs of 75,000 jobs in order to stay afloat. Now, the news of Bernard Madoff’s investing scam leaves you dumbstruck and makes you wonder how so many people could be taken in.

According to Time Magazine, “Many of Madoff's victims never had an account with his firm. Instead, Madoff got much of the money he allegedly stole through so-called feeder funds. These hedge funds were set up by outside investment advisory firms, which marketed the funds to high net-worth individuals and pension funds based on Madoff's supposed long-term track record of positive returns. Other investors lost money through so-called hedge funds of funds, which invested with Madoff as well as other asset management firms.”

Where was the Securities and Exchange Commission? Apparently this scam had been going on for years. A federal judge signed an order on December 15th stating that investors who may have been duped by this scam need the protection of the Securities Investor Protection Act.

Among those hard-hit were Jewish Philanthropists and at least two foundations have been forced to close because they had invested their funds with Madoff. According to JTA, The Global News Service of The Jewish People, The Robert I. Lappin Foundation in Salem, Mass., will shut down after losing $8 million -- all of its money. The Chais Family Foundation also announced its closing on Dec. 14.

Another organization that suffered tremendous losses is JEHT (Justice, Equality, Human Dignity and Tolerance) Foundation that announced they will close at the end of January 2009. The JEHT foundation supports reform of the criminal and juvenile justice systems.

Where did all of this money go and shouldn’t the Securities and Exchange Commission be culpable for allowing Madoff to operate? Give us your thoughts.

Human Rights Day - If not now, WHEN?

Today, December 10th, is the 60th annual celebration, across the globe, of Human Rights Day. This commemoration honors the 1948 adoption of the Universal Declaration of Human Rights by the United Nations. It was the first global effort to proclaim the rights of all human beings. There are 30 articles in the document proclaiming such rights as the right to life and liberty, freedom of expression, equality before the law; and social, cultural and economic rights. Other more fundamental rights include the right to food, the right to work, and the right to education.

The Grameen Foundation is an organization that provides small loans, savings, and other financial services to poor people to help them launch businesses. According to Sarah Campbell of the Grameen Foundation:

• One billion people live on less than $1 a day
• One-in-five people live without adequate water or food
• 26,000 children die each day from preventable causes

Though the U.N. outlined human rights adequately in 1948, our inability to provide even the basics a half a century later is painfully obvious.

“Today, poverty prevails as the gravest human rights challenge in the world. Combating poverty, deprivation and exclusion is not a matter of charity, and it does not depend on how rich a country is. By tackling poverty as a matter of human rights obligation, the world will have a better chance of abolishing this scourge in our lifetime....Poverty eradication is an achievable goal.”
—UN High Commissioner for Human Rights Louise Arbour, 10 December 2006

At this time of year we need to turn our sights outward, to the world, and rather than focus our attention on our diminished 401 (K)s, resolve to help promote the rights of everyone. Why not begin TODAY? What do you think?

Go Techno or Bust

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

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

Among the technical tools used were the following:

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

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

Food Bank Levels are Down as Demand Goes Up.

As layoffs continue to rise and the economy continues to decline America’s food banks are sagging under the increased load according to The Wall Street Journal. According to The New York Times, critical shortages have forced some Food Banks to ration supplies, distribute staples usually reserved for disaster relief, and in some instances close.

Why are we unable to keep up with demand when we most need to? In part, the problem is due to successful farmers. There is less stored in the U.S. Department of Agriculture's Bonus Commodity Program that buys surplus crops in America. When the farmers have no surpluses, it translates to a shrinking program.

The fourth quarter oil and gas prices also contributed to the shortfalls by increasing the price of food as the high distribution costs are passed along through the system.

There is a farm bill currently in the Senate that would raise emergency aid of $250 million a year to Food Banks. Of all of the hands that are outstretched to receive economic aid from the government, this hand would deliver relief directly into the mouths of the people. Rather than allow American Food Banks to close, the Senate needs to move quickly to ensure that our relief programs are still in place when our people really need them, like right now! Your thoughts?

Oily Practices Might Be Responsible for Economic Slide

According to MSNBC, “Exxon Mobil Corp., the world’s largest publicly traded oil company, reported income … that shattered its own record for the biggest profit from operations by a U.S. corporation, earning $14.83 billion in the third quarter.” Though prices have fallen since the announcement from Exxon on October 30th, the question is: How did the extreme inflation of oil prices get so out of hand? What role did that insane inflation play in the deflation of the world economy?

When you consider the delivery of food by the world’s food banks to those in need, most delivery methods involve petroleum fuel. The higher the fuel prices go, the less money there is to feed the same number of people.

American dependency on oil has reached a critical crossroad. Prices at the pump are falling because the demand has gone down as a result of fewer people having jobs. However, if the economy begins to improve, there will be an increased demand for oil and the world’s oil companies will take advantage once again. It is time to break the cycle of dependency that keeps us addicted to our gasoline fix. Another good reason for demanding alternative fuels is that fossil fuels are known to increase greenhouse gas concentrations in the atmosphere, further contributing to global warming. Michael Seibert, a biologist at the National Renewable Energy Laboratory in Golden, Colo., envisions pond scum as a possible source for bio-fuel. Whatever the new source of fuel finally is, now is the time to put our energies and research into renewable energy sources before we are held hostage at the pumps again. What are your thoughts?

Yes We Can.

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

President-elect Barack Obama began his speech:

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

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

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

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