Planned giving within the nonprofit sector

Note: This is a summary of an older NPTV story.  For the full video of the story, click here.

If you've ever wondered what kind of impact bequest giving has on the nonprofit sector, you are sure to find this informative and clearly presented video useful. Almost three quarters of American adults have no wills, or have made no formal plans to leave behind any form of charitable gift. A mere 21 percent of Americans have actually formalized a will, or made any intentional and concrete plans to bequest a gift to a charity. Just three years ago, a total of about 51% of American adults had a will in place.


Bequest giving in 2009 was estimated to be valued at $23.8 billion. A survey conducted by Opinion Research Corporation found that women were more likely to make a charitable gift than men, but men were more inclined to have a formal will in place than women. Contributing factors to the presence of a will include education level and wealth. While this is the case, the actual gift will by and large depend on who is requested to give it. Bequests are predominantly motivated by a personal involvement with a charitable organization or personal experience with a subject addressed by a nonprofit organization. Tax consequences tend not to be the primary motivator. This is according to Adrian Sargeant of the Center for Philanthropy at Indiana University.


Giving motivated by personal ties

As might be expected, people are more open to the idea of saving rather than the notion of giving. In addition to this, most people are more likely to leave their estate to loved ones, rather than channel those assets to an area where no personal ties exist. These are the sentiments of Frank Minton, a planned giving expert and a consultant to PG Calc. Spouses are first in line to benefit from bequests, followed by children and grandchildren. Clara Miller of the Nonprofit Finance Fund acknowledges that times are tough, and that elderly people in particular are seeing their entire retirements passing before their eyes. Be sure to check out this video to get a better idea of the state of planned giving within the nonprofit sector.

The IRS is requested to investigate nonprofit political dealings

Here's another summary of a past NPTV story.  Check it out in its entirety here.

Congressional mid-term elections are just around the corner, and the IRS has been requested to launch investigations into the political campaign dealing of numerous major organizations with 501C4, C5 and C6 designations. This is the subject of those well laid out video presentation. The request was made to the IRS by Max Baccus, a Democrat from Montana and the chairman of the U.S. Senate Finance Committee.



Four primary areas of investigation

The IRS will be focusing their survey on 4 key areas with regard to the organizations in question. Were activities for their states tax-exempt objectives, or are dealings related to political campaigns their primary area of focus? Are they complying with proxy tax and notice requirements? Are their activities bases on the private interests of large contributors, or legislative lobbying? Do they provide extra benefits to significant donors? According to Grant Thornton LLP, organizations that are exempt from federal tax are prohibited from making political campaign dealings their prominent focus.

The nature of the tax law means that it limits the measure to which charitable organizations can get involved in the political arena. At this stage it is unknown how exactly the IRS will conduct its survey, but it is likely that 501C3 organizations will be the subject of investigation as well in the future due to increasing media attention and pressure from congress. Be sure to check out this video about this interesting development in the nonprofit sector.

Highlighting amendments in the tax form 1099

Here is another summary of an older NPTV story.  View the story in its entirety by following this link.

This video deals with proposed changes to the tax form 1099 and with the associated action taken by the United States senate.


In a recent vote in the United States senate of 52 to 46, proposals to introduce two changes that modify reporting requirements for form 1099, were rejected. The amendment to repeal the modified requirements did not meet with success in the U.S. Senate. A separate change to form 1099 to raise the reporting threshold from $500 to $6000, while providing exemptions to corporations with less than 25 employees, was also rejected.

The Center For Association Leadership has announced that a similar bill has now been introduced which includes the $5000 threshold, but omits the offering of exemptions to certain businesses. The Internal Revenue Service is invited feedback from the public on this issue until September 29th.

Observing trends in religious donations in the USA

This is a summary of an older story from the Nonprofit Times TV.  Want to see the story in full?  Click here.

When it comes to giving and fundraising in the nonprofit sector, religious giving has always topped the list as the main component of the overall donation total. In 2009, religious giving experienced a slight decline of 1% as compared with the previous year, whereas the nonprofit sector as a whole experienced a 7% decline over the same period. This video shares some interesting insights about the challenges that religious institutions face when it comes to attracting the attention of donors. The presentation is clear and well presented.



Challenges facing religious giving figures in the current economy

Sharing some of his thoughts on this issue is Bill Wildey, director of funds development and marketing with Church World Service. Bill says that a growing number of congregations have a growing proportion of people who are battling with unemployment, salary cuts and the loss of stability. This of course has a direct impact on the kinds of resources that are available to and in the religious sphere. One area that Church World Service is involved in heavily is that of refugee relocation and resettlement within the United States, and dealing with the associated immigration challenges can sometimes be tricky when trying to assist refugees in this way.

The business of attracting the attention of potential donors is made more challenging in light of tough economic conditions. One of the difficulties also being experienced is persuading people to exercise compassion and generosity as it relates to various humanitarian endeavors that they themselves are not impacted by. People remain far more inclined to give towards causes that they or a loved one are personally affected by. The prediction is that this will probably not be changing in the near future, with the current trend continuing well into 2011 and beyond. Have a look at this video to learn more about the fundraising challenges faced by religious organizations.

Jeff Regen on Multi-Channel Marketing

In the latest installment of the Nonprofit Times TV, Jeff Regen, Senior VP of Integrated Services at M&R Strategic Services, catches up with us after he spoke at the Direct Marketing Association's annual conference in Washington, DC.  Regen spoke at a session called Making Multi-Channel Marketing a Reality, and he talked about the value that multi-channel donors have for charities and nonprofits.  According to Regen, they are worth almost four times more than offline donors, and are worth two and a half times more than online donors, and that their retention rates are "through the roof."

In general, Regen makes a lot of great points about the value of multi-channel marketing.  While it is true that the internet is the main source of donors these days, it makes no sense to completely ignore offline donors.  By reaching out to both parties,  it makes a lot of sense that your organization would be more successful than one that limits its focus to either extreme.  Of course, this is just one opinion.  Do you think Regen is correct, or is he off-base on this point?

Andrew Watt Tapped as New CEO of AFP

The Association of Fundraising Professionals has chosen Andrew Watt to be their new CEO.

The latest episode of the Nonprofit Times TV gives a profile of the new President and CEO of the Virginia-based organization, which is the world's largest organization of professional fundraisers.  Before being named to his new position, Watt was the Chief Programs Officer and VP of International Development.  He joined AFP in 2006, but has been working in the fundraising since 1993.  He was previously Director of Policy for the Institute of Fundraising in the United Kingdom (he is also an Honorary Fellow of that organization).

AFP has been looking to expand its presence abroad for the past five or six years, so it makes sense that they would pick Watt.  Given his experience at the Institute of Fundraising, he was a natural fit for their organization now and in the future.  Do you agree with AFP's choice, or do you think there was a more qualified candidate they looked over?

What Donors Want: A Guide to Auction Items

Having a fundraising auction anytime soon?  Then you might want to listen to the latest advice from Bidding For Good.

In the latest episode of Nonprofit Times TV, the Cambridge, MA-based organization lists some items that consistently pull in more donors than others.  Travel and dining activities are among the largest draws, along with entertainment, sports, health spas, antiques, arts, and "unique experiences" (hikes, etc).  Bidding For Good also lists several popular brands at online auctions, including Apple, Starbucks, Nintendo, and The Cheesecake Factory.

It makes a lot of sense that these items would be so popular at fundraising auctions, as they are things that any donor would enjoy.  Travel is especially obvious, as everybody needs a break from the hustle and bustle of everyday life from time to time.  Have you found the items Bidding For Good lists have held true for your auctions?  Let us know in the comments section.

Larry Jones and Feed The Children Kiss and Make-Up...Sort Of

In the newest installment of Nonprofit Times TV, we get the update on the now concluded legal struggle between Feed the Children and its founder, Larry Jones.  The Oklahoma City-based nonprofit recently announced that the litigation between the two parties has ended.  Terms of the agreement, however, were not disclosed as they were deemed "confidential."  We do know, however, that no part of the agreement will have Mr. Jones return to the organization in any capacity.  Jones was dismissed by the organization in 2009, which sparked his legal challenge of Feed the Children.

The dispute between Jones and Feed the Children has been well-documented, so it's good to hear that these two parties have finally put their differences behind them.  It is especially useful for Feed the Children.  This legal battle must have been a huge distraction to their business.  With the litigation over, they can get back to the job that Larry Jones intended them to do when he established the organization in 1979.  As always, give us your thoughts on this fascinating story.

Robert Jones, Nonprofit CEO, Gets 10 Years in Prison

It's never good to hear about a nonprofit CEO involved in fraudulent activity, but that's exactly the case in the latest installment of Nonprofit Times TV.  According to the report, the head of the National Center for the Employment of the Disabled, Robert Jones, has been sentenced to 10 years in prison for fraud related to government contracts.  Jones was convicted for, among other things, lying about the number of disabled workers his organization had to qualify for no-bid government contracts.  Jones was also fined $65 million in restitution.

Patrick Woods, a former board member of the organization, was also convicted in the case. He was sentenced to three years in prison, and must pay $1.7 million.  The El Paso, Texas organization, looking to move on from this story, is now operating under the name ReadyOne Industries.

We hear stories about fraud in major businesses all the time, so it's especially sad when we see people working for an organization that is supposed to be fighting for the disadvantaged involved in criminal activity.  What are your thoughts about the sentencing of Robert Jones and Patrick Woods?  Is it too harsh or not harsh enough, considering the crime?  Tell us your thoughts.  

Watch a New Episode of The NonProfit Times TV Today 1PM!!!

Watch Online at www.nonprofittimes.tv

In this webcast:
• Nonprofit CEO Gets 10 Years: CEO gets jail time for fraud.

• Feed The Children and Founder Settle Lawsuits: Larry Jones and Feed the Children have settled multiple, dueling lawsuits.

• Donors Want Travel, Dining From Charity Auctions: The top 10 items for online charity auctions.

• Watch online at http://nonprofittimes.tv

It take less then 7 minutes to watch the whole episode

Results from the Commonfund Benchmarks Study

Here is a look back at another past episode of NPTV.  You can view the episode here.

Investments by health groups returned an average of 18.8 percent in the face of a turbulent ride in the stock market. This is according the to the Commonfund Benchmarks Study of healthcare organizations. The study focused on the fiscal year 2009 average total rate of return on investable assets as it relates to 85 charitable healthcare organizations. The study has been running for 8 years now, and this is the highest return reported over that period. This follows the lowest return reported in the 2009 results.

The 85 organizations represented in the study account for $76.8 billion dollars in investable assets and $26.8 Billion is defined benefit plan assets as of the end of 2009. Investable assets are comprised of various asset types including endowment foundation funds, funded depreciation, working capital and other separately traded assets and investments.

What is Commonfund?

Commonfund provides charitable institutions with fund management and investment advice. It is one of the leading investment firms for colleges, universities and secondary schools, foundations, hospitals and other philanthropic and tax exempt organizations. It was founded in 1971 as a nonprofit, membership organization with a grant from the Ford foundation. Commonfund's mission is to improve and enhance the investment management practices and financial resources of its clients. It manages over $25 Billion with a focus on three primary activities, being outsourced solutions, private capital and alternative investment strategies.

New Jersey puts the squeeze on nonprofits

Here is another past episode of NPTV.  Check it out here.

New Jersey has gone about cutting corners in a controversial way in an attempt to save dollars. The state has proposed a limit on how much it is willing to pay towards state contracted CEO salaries, as well as on employee benefits for nonprofit social service agencies. The proposed alteration to the third party contract language would result in New Jersey capping salaries and employee benefits based on the operational budgets of nonprofit organizations.

What this proposal looks like

For nonprofits with a budget of more than $20 Million, salaries would be capped at $141,000. In instances where the budget ranges between $10-$20 Million, the proposed cap would be $126,900. In the case of budgets between $5-$10 Million, the relevant proposed cap would fall at $119,850. Meanwhile, budgets of less than $5 Million would attract a salary cap of $105,750. At this stage is unclear is that number is total compensation or base salary as reported on the federal form 990.

Less funding for other areas also

Beyond placing a cap on salaries, the state would also limit its funding with regard to issues like travel, education, severance and vehicle operating costs relating to all employees in the charitable sector. In proposing these controversial measures, the state of New Jersey is hoping to save an estimated $5 Million. These changes are due to take effect on July 1st 2011. As might be expected, it is a move that has many charitable workers disappointed and enraged.

Attracting the correct mix of minds to the nonprofit sector

This is a look back at an older NPTV episode.  Check it out here.

One issue that has always been a focus of discussion in the nonprofit sector is how to go about attracting the correct partnership of minds, particularly as it relates to board members. Getting this combination to operate efficiently can be a real challenge, not least of which when times are difficult. The issues under discussion have included salary for board members, the operational function that boards should exercise, and the adversity of members to risk. These issues have often been the cause of controversy.

Gaining some insight

According to Dennis C. Miller, President of Dennis C. Miller and associates and author of the new book entitled "The Nonprofit Board Therapist", paying board members beyond covering operational expenses will detract from the overall efficiency of the organization in question. He feels that boards should be more purposefully focused on assisting the organization in achieving its fundraising objectives so that the relevant vision and goals can be met more effectively. When a nonprofit consistently fails to operate at it maximum potential, Miller feels that it's a failure on the part of the board and the CEO. Dennis Miller feels that a new type of board member is necessary for a new era...one that is more open minded to new and innovative avenues of fundraising and operational strategies.

The new role of the nonprofit CEO

Miller goes on to say that the role of the nonprofit CEO in the current economic and technological climate is to ensure that the potential of board members is fully reached as it relates to their impact on the organization. This involves engaging them in discussion, seeking their ideas and asking pertinent questions. The most suitable scenario is where the CEO and board member operate as partners from a leadership point of view. A board needs to be highly enthusiastic and motivated, be willing to examine itself and it's performance, and be actively and personally involved in fundraising, according to Miller.

NASA seeks management support of the nonprofit kind

This is a look back at a past NPTV episode.  You can view the episode in it's entirety here.

NASA has announced its desire to identify a nonprofit organization to manage its international space station programs As the space shuttle program comes to an end NASA is looking for an independent research management organization to grow and manage the US portion of the space station. In 2005 the space station in question was designated a National laboratory. The NASA authorization act of 2010 directed NASA to extend station operations until 2020, as well as to establish an organization to manage station research by other US government agencies, academic institutions and private corporations.

The NASA authorization act was signed by President Barack Obama on October 11th, 2010. The act approved the spending of $58.4 billion on NASA programs over the following three years. The spending would include additional shuttle flight, the extension of the international space station, and the development of heavy-lift rocket technology. With this act in place, NASA has a strategic roadmap and has set its sights firmly on Mars. This move on the part of NASA represents an attractive prospect for the suitable organization It means that a relatively stable line of income can be secured over a significant period of time, working on a sought after and prestigious contract.


Eligibility criteria established by the authorization act

According to the NASA authorization act 2010, the organization chosen to fulfill this role has to comply with a range of criteria. The organization must be exempt from taxation under section 501C3 of the internal revenue code of 1986, and must not have any other organizational objective or responsibility on behalf of the organization, or any parent organization or other entity.

NPTtv Current Braodcast Today! Feb 23, 2011 1 PM EST

Tune in to www.nonprofittimes.tv to watch the current broadcast of NPTtv. In this show see

100 Billion in Federal Budget Cuts
Federal and state budget cuts will hurt charities
The Million Dollar Shot That Wasn't
Charity sued when tournament shot doesn't pay off
Fundraisers Are Optimistic
Fundraisers say 2011 will be better than 2010

Tune in Now to see the current broadcast. Its only 7 minutes long and will keep you up ot date on the current happenings of the nonprofit sector

Nonprofit Giants Make Deals To Improve Donor Data

Three of the most prominent companies in the fundraising business are in the process of growing even further and providing more convincing evidence that data is king at the end of the day. Blackbaud, based in Charleston South Carolina, is a technology firm that markets financial and online fundraising software. The company spent $17.5 million to buy public interest data in Alexandria Virginia, which provides database management services, acquisition list services and data analytics and enrichment services for nonprofits. The Internet fundraising firm Convio, based in Austin Texas, announced that it will be spending at least $5 million in order to acquire Strategic One, an analytics predictive modeling and database marketing services company located in Kansas.

Strategic One touted itself in the innovative terminology of 'business intelligence', which refers to the collection, modeling and integration of fundraising and donor information. In each of these cases the companies agreed to pay as much as $2.5 million more depending on the relevant revenue objectives. In addition to these business developments, WealthEngine, based in Bethesda Maryland, a provider of wealth identification- and information-based fundraising solutions announced that it purchased and will put to use Oracle exit-data database machines. The upgrade is expected to dramatically improve the performance, user-friendliness and scalability of its wealth intelligence solutions. The financial information related to this deal has not been released.

Nonprofits Benefit From Super Bowl Buzz

Super Bowl Sunday turned out to be beneficial for more than just football and its fans. A number of charities organized fundraising events that used the Super Bowl as the primary hook. This is the focus of this top-notch video produced by Nonprofit Times. The celebrity musician Prince held a concert in downtown Dallas that benefited the Michael-Goss Foundation. Tickets reportedly started at $1,500. Prince performed at the Super Bowl half-time show three 3 years ago.

In the state of Texas 1,000 people attended an event called 'The Best Party In Texas' which was organized to benefit a variety of local and national charitable organizations. The event was sponsored by the Feliciano Foundation. It is more important than ever for nonprofits to utilize creative fundraising strategies as the impact of the current economic downturn continues to be felt around the country, and indeed, around the world.

Fundraisers Contemplate Ethical Issues

Making sure that nonprofits use funds in a manner that is consistent with their mission and the motivations of their donors ranks as one of the most common and difficult challenges faced by fundraisers. This is according to a new website poll conducted by the Association of Fundraising Professionals (AFP). Participants in the poll were asked what kind of ethical challenge they were most likely to face in their fundraising efforts, and they were presented with 7 choices.

Nearly a third of all respondents reported that the use of donated funds was the greatest area of concern. Sixteen percent selected challenges related to privacy and confidentiality, and fifteen percent highlighted the issue of donor control over gifts. Other options included percentage-based compensation/commission and conflicts of interest. According to Paulette Maehara, CEO of AFP, the use of donated funds is one of the key aspects of ethical fundraising practices, particularly as charitable gifts increase in size. Maehara has stated that it's crucial that fundraisers and donors collaborate and develop sound documentation to ensure that disagreements are avoided. The results of the survey are based on the input of 569 people who participated on January 20th.

The Armstrong Foundation Achieves A Major Stock Gain

A gain of over three million dollars in the stock market has been achieved by the Lance Armstrong Foundation. The foundation is a content provider for Demand Media, which has a licensing agreement with the foundation that allows it to make use of the Livestrong name and brand. The foundation sold off 150,000 of its shares, and Lance donated 68,000 of his own shares as well.

Demand Media recently went public on the New York Stock Exchange. It has created a for-profit health and fitness Internet platform known as Livestrong.com which utilizes the Livestrong brand. The Armstrong Foundation currently still holds in excess of 60,000 shares, and has annual revenue of approximately $48 million as a result of licensing arrangements with companies such as Nike and Oakley, and thanks to members of the public who continue to show their support with a donation.

Contemplating The Outlook For Charities In 2011

Elizabeth Boris is the director of the Center on Nonprofits and Philanthropy at the Urban Institute located in Washington DC. Nonprofit Times caught up with her and she took some time to share her insights regarding the outlook for the nonprofit sector in 2011, particularly as it relates to planning. Boris feels that 2011 is going to be a difficult year for a large number of charities. This is especially true of nonprofits that have any government grants or contracts because the budgets of many states are in very poor shape.

A sharp decrease in state funding
Human service providers who rely on state funded grants will face some of the toughest times in the year ahead. Boris feels that nonprofits need to have contingency plans in place if they are to survive the times ahead with as little loss as possible. Conserving resources as much as possible is key, as well as learning from these circumstances and building up as many reserves as possible in the future that will enable them to weather similar storms which they may yet have to face. The challenge facing nonprofits is three-fold; contributions are down, demand is on the increase and government grants are in decline.

Nonprofit mergers on the increase
Boris expects that a number of charities will go out of business in 2011, and that there will also be an increase in mergers in the nonprofit sector as charities seek to pool their resources in an attempt to ride out these difficult economic conditions. Nonprofits need to be making an investment in fundraising and grant-writing, and with any luck, they can observe improvements in the economy towards the end of the year.