Blackbaud Study: Giving Impacted By Summer Doldrums

A quick glance at the new Blackbaud Index shows what would appear to be promising news.  Overall charitable revenue grew 6.8 percent for the three months ending August 2011.  In addition, online giving increased 6.1 percent during the same period.  A closer look at the data reveals that the news isn't as pleasant as it seems. 

As Chuck Longfield, creator of The Blackbaud Index, explains in a new article on The NonProfit Times, giving slowed down considerably during the month of August.  This can be seen when the data is compared to what the Index showed in August 2010.  For example, the increase of 6.1 percent in online giving doesn't seem as impressive when it is compared to the 17.2 percent increase in 2010.

“Not surprisingly, it appears that our country’s continuing economic problems are once again weigh on donors’ checkbooks,” said Longfield. “Our data illustrates the challenges most nonprofits are likely facing as they try to achieve sustainable, consistent growth.”

For the full story on this topic, visit our website at thenonprofittimes.com.

Senate Finance Committee Hearing To Focus On Charitable Giving Incentives

UPDATE: Please read our article about the hearing on our website.

Incentives for charitable giving will take center stage on Tuesday as the Senate Finance Committee continues hearings related to tax reform.

The hearing, scheduled to begin at 10 a.m., will feature four speakers scheduled to testify: United Way Worldwide President and CEO Brian Gallagher; Eugene Steuerle of The Urban Institute; Elder Dallin Oaks of The Church Jesus Christ of Latter-day Saints; Frank Sammartino, assistant director for tax analysis at the Congressional Budget Office, and Roger Colinvaux, associate professor at Catholic University’s Columbus School of Law.

Senate Democrats last week replaced in the American Jobs Act (S. 1549) a cap on charitable deductions for the nation’s highest earners with a 5.6-percent surtax on millionaires. Coalitions of nonprofits have been lobbying lawmakers to preserve the cap on charitable deductions after it was introduced a fourth time by President Barack Obama as away to pay for his jobs bill.

Under the original proposal, put forward a fourth time by the Obama administration, tax deductions on charitable contributions – in addition to other deductions – would have been capped at 28 percent for taxpayers in the highest tax brackets, earning more than $250,000 annually. Currently, those deductions can be as high as 35 percent.

Maine Gov. Excludes Nonprofits From Jobs Workshop

Maine nonprofits want to know why Governor Paul LePage is excluding nonprofits from an upcoming jobs workshop.

According to an article in The Kennebec Journal, Brenda Peluso, executive director for the Maine Association of Nonprofits, sent a letter to the governor requesting to have a seat at one of his upcoming workshops.  She hoped it would give her an opportunity to talk about the obstacles nonprofits face when it comes to job creation.  What she got instead was a letter from LePage's secretary rejecting her request:

"Because the goal is to hear firsthand from businesses, first priority will be given to them with seating.  If the situation changes as the event nears, I would be happy to include you on an alternate list and contact you."

Nonprofits employ 82,000 people in Maine.  Only the retail industry employs more people, so Peluso thought it would have been appropriate for them to have a seat at the table.  In a statement given to The Journal, LePage's press secretary said the upcoming workshops were meant only for private enterprises, which he believes are the primary sources of job creation in Maine.

How To Find New Donors Through Twitter

The rise of social media has given nonprofits another option to attract new donors.  Yet with so many of these websites out there, it can be hard to figure out which one is best to use.  Of all the options out there, Twitter presents an intriguing choice.  It's simple to set up and, if used properly, can quickly spread the word about your mission.

Our own Sam Fanburg attended the 2011 National Catholic Development Conference (NCDC) back in September.  One of the many speakers he listened to was Eric Streiff, senior vice president at Douglas Shaw & Associates.  He explained how to best use Twitter to cultivate new donors:

* Engage -- Twitter can be great to gather information about what donors believe. Use the services to cultivate donors, prospects and friends.

* Pay Attention -- Spend time looking at what other people are talking about. Twitter is a place to create online buzz and tweets and re-tweets can help garner more supporters.

* Utilize Hashtags -- Use hashtags to try to get your cause to trend, or capitalize on other popular hashtags if they pertain to your organization. This is a very noisy, limited platform. Getting your organization noticed takes a lot of time and energy.

* SPAM -- Do not just send people endless tweets. As easy as it can be to cultivate and advocate, it is just as easy to turn someone off to your causes.

Wendy Spencer Appointed CEO Of Corporation For National And Community Service

When Patrick Corvington resigned as CEO of the Corporation For National And Community Service (CNCS) in April, the search was on for a replacement.  6 months later, that replacement has been found in Wendy Spencer.

Spencer, who was the CEO of the Governor's Commission on Volunteerism and Community Service in Florida, was nominated for the position yesterday by President Barack Obama.  She now must be approved by the U.S. Senate.  The CNCS engages more than five million Americans in service through Senior Corps, AmeriCorps, and Learn and Serve America, and leads President Obama's national call to service initiative, United We Serve.  The CNCS has been something of a punching bag for members of Congress, who have written legislation that appropriates $280 million for the agency, which has an overall budget of $1.09 million.

You can read the full story on Spencer's nomination, including reaction from key figures in the nonprofit sector, over on our website.

Milwaukee Nonprofits Cashed In On Brewers' Playoff Run

The Milwaukee Brewers' playoff run might be over--they lost to the St. Louis Cardinals 12-6 in game 6 of the National League Championship Series (NLCS) on Sunday--but nonprofits were sure to cash in while the good times lasted.

According to an article in The Journal Sentinel, Sportservice, which runs the concession stands at Brewers home games, had a deal with local nonprofit groups that allowed their employees to work at the stands for a cut of the revenues.  The groups that sent employees to work there would earn 10 percent of the sales.  Sportservice has been working with Milwaukee nonprofits since the '90s, and groups have bought in a ton of money from it.  According to the article, one group raised $50,000 in a year.  Deals like this take place across the country, though it's usually in the minor leagues.

With the Brewers making their longest playoff run since 1982, when they reached the World Series, nonprofits were able to make more money than they might have during a normal year.  Unfortunately for nonprofits and Brewers fans, baseball in Wisconsin will be on hold until 2012.

Nonprofit Management Tip: Moving To The Next Stage Of Your Career

Turnover is a big part of jobs these days.  Whereas it was not uncommon for people to stick with their work for 20+ years in the past, these days the average stay at a job is much shorter.  With more people moving on from their careers, how can you distinguish yourself from the past?  The NonProfit Times just put up a new management tip about that very topic:

* Find Your Passion: Sit down and figure out your best attributes. Test your list with a trusted friend, along with a trusted co-worker.


* Create A List: Use the list to describe your accomplishments; challenges you’ve faced; and, experiences you want to have during your career.


* Elevator Speech: Prepare a short speech that encapsulates your experiences and advantages. These types of speeches should last 30 seconds.


* Where Will You Go?: Outline ins and outs to your work. Do you want to be involved in fundraising or do a little of everything? Do you want to work in a small shop or big shop? These are all questions you should be asking yourself.

Want to learn more about professional development?  Check out our devoted page on that topic for even more tips.

The October 15th Issue Of The NonProfit Times Is Out

We have just posted the October 15th edition of The NonProfit Times on our website.  Here are the stories you can expect to see in this issue:

• "Fundraising Results Unchanged Year Over Year"-A report by the Nonprofit Research Collaborative (NRC) shows that fundraising has basically stayed the same since 2010.
• "United Way Drives To Diversify Income"-As United Way continues to diversify funding, the piece of the revenue pie made up of workplace giving continues to shrink.
• "Covenant House's Mail Donors Remain The Group's Backbone"-Larry May, senior vice president for strategic development at Infogroup, sits down for a conversation with Covenant House's Joan Smyth Dengler.
• "New Facebook Profile Gives 'Causes' Users More Information"-The significant changes to social networking platform Facebook’s profile options regarding a Timeline and Open Graph API technology, allows nonprofits the ability to secure a more permanent spot in a supporter’s online identity.

Columns:

• "Video Star"-First as a client and now an employee of Goodwill Industries International, Anthony Cornell has seen all perspectives of the organization. As winner of a contest from CBS’s Undercover Boss, though, Cornell has been recognized as someone who was able to realize his own potential while helping others find their purpose.
• "Celebrity Buzz"-The Farrah Fawcett Foundation is trying to get ahead of reports that a fraud investigation is under way by posting denials on its Facebook page.

All About Volunteer Management

Volunteers can be some of the driving forces behind a nonprofit's success, but they can only reach that level with proper training and support.  That's where volunteer management comes in handy.  This technique is more than just making sure volunteers are supervised.  The process starts before they are hired to work, by making sure the individuals know exactly the kind of work they will be doing.  Here's a quick definition that will explain this topic further:

Volunteer management is the process of organizing and training nonprofit volunteers. More than any other institution, nonprofits rely on the help of unpaid volunteers to keep the organization running. Without the proper support, however, these individuals won’t be able to effectively do their work. This kind of support includes making instruction sheets, creating volunteer orientation programs, and assigning staff members to keep track of their work. The description for the volunteer position should be clearly written so that applicants know exactly what is expected of them. It’s also important to make sure all volunteers feel welcome and appreciated.

The NonProfit Times organizes all of its articles by categories, and one of these is volunteer management.  Have you been wanting to learn more about how to get the most of your organization's volunteers?  Head on over to our "Search Articles" page to read more about it, as well as the others topics we have posted.

Ways To Increase Revenue

Finding consistent streams of revenue can be a challenging task for a nonprofit. Donors come and go, and sometimes special events don't go as planned. Organizations must constantly find new ways to increase their revenue if they are going to survive in this competitive market. Here are some tips that were gathered at the 2011 Bridge Conference:

-Find creative ways to increase operating dollars. For example, the National World War II Museum offers free admission to vets. It is able to do this because it launched an online "$10 For Them" campaign, which resulted in more than $100,000 in one fiscal year.

-Go beyond Recency Frequency Monetary Value (RFM). Make sure you are getting donors who have responded in the past.

-Know what you have in your database(s). Run a quarterly merge/purge so that your messaging is reaching the biggest and best targets.

-Review your past results. What can you learn from your previous successes and failures?

-Don't try to beat your previous efforts. Instead, improve on them.

Retro Article Of The Week: Proxies Aim To Have Their Say At BP’s Annual Meeting

The United States experienced one of the worst oil spills in the country's history on April 20th, 2010 when British Petroleum's (BP) Deepwater Horizon rig exploded in the Gulf of Mexico.  Gallons of oil flooded into the waters, causing damage to wildlife and the way of life of countless local fisherman.  It wasn't until September 19th that the oil well was sealed and by then, the damage had already been done.

BP held its annual meeting in London in April of 2011, and a fourth-generation fisherman named Diane Wilson and five others came along.  Wilson and the others were hoping to display the human cost of the disaster.  The NonProfit Times wrote an article on their efforts on April 14, 2011:

“People in the media like to ask us why we are so upset,” Wilson said in an interview last week. “I am coming to the annual general meeting (AGM) to call BP to account for its actions in the Gulf — for the oil spill, the lies, the cover-ups, the skimping on safety, the deaths, the nonexistent documents and the ‘swinging door’ with regulators.”


Part of a five-person delegation funded by the New Orleans, La.-based Gulf Coast Fund, Wilson and her cohorts planned to appear at the BP annual meeting as proxies to directly engage BP leadership and its board of directors about the corporation’s response to the Gulf oil spill. The Gulf Coast Fund does not own shares of BP stock but through a partnership with the UK Tar Sands Network, based in London, England, was to appear as a proxy on behalf of the nonprofit organization.


The AGM is “an opportunity for shareholders to question the company and raise any matters of concern,” said BP spokesman Robert Wine, declining further comment.


Having activists or affected residents appear as proxies on behalf of other nonprofits is not something new and has been a useful in engaging the leadership of major corporations.


At the BP annual meeting, the group will have the option to vote for or against the annual report submitted by BP. Although the group has issues with items in the report, they had not yet decided how to vote, choosing once they were to meet in London, Bryan Parras, board member for Houston’s Texas Environmental Justice Advocacy Services (T.E.J.A.S), said last week.


Besides a discussion with leadership, there is not much more the group can accomplish in terms of getting BP to enact change, said Mark Regier, director of stewardship investing at Everance Financial, based in Goshen, Ind. “If you want to be involved in filing a resolution in the United States — rather than just voting or attending an annual meeting, it requires ownership of more than $2,500 in stock for a continuous period of one year,” he said.

If you are interested in reading the rest of this article, please visit our website.

Nonprofit Leaders Talk Change At United Front

Three years ago, nonprofits in Minnesota came to a realization: Government funding was disappearing as a result of the recession, and they were going to have to make significant changes.  The Greater Twin Cities United Way brought together nonprofit leaders from the state to come up with an answer.  What came out of that meeting was the United Front campaign.  It encouraged Minnesota nonprofits to work together so they could adequately address the problems facing their communities.  The annual meeting of this campaign took place last week in St. Paul, Minn.

According to the Star Tribune, the ultimate goal of these annual meetings is to create coordination among the agencies involved so they can help residents of the Twin Cities who have been affected by growing poverty and the economic downturn.  To help this effort, the Twin Cities United Way created a nonprofit merger fund.  This has helped support the mergers of more than 20 nonprofits over the last three years.  The organization has also funded programs like the Twin Cities Hunger Initiative and the Minnesota Coalition to End Violence.

You can read the full piece from The Star Tribune by visiting their website.  You can also visit The NonProfit Times to read an article about how Minnesota nonprofits were affected by their state's recent government shutdown.

All About Online Payment Systems

Here's how fundraising used to work: Your organization would get a pledge and wait for the donation to arrive in the mail as a check.  Today, there’s an entirely new front in the battle for donations that didn’t even exist 15 or 20 years ago. In addition to those checks you might still get from donors, you have to think about processing payments online.  This topic was covered in-depth by an article in the latest edition of The NonProfit Times:

Like any endeavor, nonprofits have to consider what it is they’re trying to accomplish when they consider online processing vendors. Whether it’s a small nonprofit being able to accept online transactions or a more nuanced organization aiming to improve the conversion rates of its online donation form, these are questions your charity must ask.


Credit card processing online is a commodity, said Jim Barney, vice president of sales and marketing at Blacksburg, Va.-based Click & Pledge. “You can go to 500 different places and someone will open a merchant account for you. It’s easy to find the lowest price, just shop around. The key to getting value is, what do you get with it,” he said. For a nonprofit, it’s not always about getting the cheapest price on credit card processing fees, he said, but about the software and tools to help make it more successful.


Every payment processor in the industry has core competencies and different features for clients, said Nim Patel, CEO of Mobile Accord in Denver. But when examining mobile payment processing, things to consider include services, the reliability of the system and its overall strength. Large nonprofits have to remember that they have some sway, which could help them get a better rate. “The nonprofit market is not completely ignored by these guys (credit card companies). For larger organizations, the thing they need to realize is they do have some purchasing power. They shouldn’t take what’s offered at face value, try to negotiate,” said Hayden Stewart, vice president of information technology at online fundraising firm Convio in Austin, Texas.


Nonprofits can use PayPal as a donation method within their other providers. “We plug in to your existing solution, and work with the partner you use to power your donation form,” said Clam Lorez, director, nonprofit engagement, at PayPal. “There are a lot of small nonprofits that use PayPal donate buttons as an off-the-shelf solution for their really basic needs,” he said. Other nonprofits use a suite of PayPal products, handling all different types of transactions. PayPal has more than 200,000 nonprofit accounts and handled almost $1.8 billion in transactions for nonprofits last year.

Make sure to check out the full article by visiting our website.

Management Tip: 4 Ideas For Spotlighting Your Mission

Every nonprofit has a mission for which it advocates.  Think back to when you first joined your current nonprofit.  Aside from the usual reasons for taking a job, you most likely had a passion for the mission of the organization.  Unfortunately, it can be easy to lose sight of that goal during the day-to-day grind of running an organization.  That's why it's so important to constantly spotlight your mission to your donors and supporters:

• Highlight the strength of your mission, not your organization.  It's a key way to associate your brand with the cause.  Ways to accomplish this include explaining what is innovative about your approach to the mission, and showing how you play an essential role in your field.
• Show your donors how they create an ongoing story for accomplishing your mission.  This will help them feel more connected.
• Explain how your work represents your guiding principles.  Back away from practical specifics and take a bit of a philosophical approach. Ask yourself what fundamental values or concerns lead your readers to your organization and its mission.
• Describe your vision of what the community (or world, depending on your ambitions) will look like when you accomplish your mission.  It is important to remember that your long-term vision is just as important as short-term goals.

2011 Nonprofit Salary and Benefits Report

Looking to get the most comprehensive report about salary and benefits in the nonprofit sector?  Purchase NPT's 2011 Nonprofit Salary and Benefits report from our online store!  This report contains current salary information on 259 nonprofit positions, from entry level to executive.  Here is some of the information you can expect to find in this year's report:

• Base Salary and Total Cash Compensation data with percentile rankings for each position
• Bonus Pay practices including average payout, percentage receiving and organizations paying
• Annual Salary Increases (prior and current year; executive and non-executive)
• Employee Turnover and Average Tenure by position
• Total compensation costs as a percentage of operating expenses
• Employee profile data: number of full/part time; exempt vs. nonexempt
• Executive Perks and Benefits (organizations offering, special benefits offered)
• Medical, Dental and Vision (costs paid by organization, eligibility, plan offerings, participation rates)
• Prescription Drug (retail and mail order costs)

If you are an executive just starting out your nonprofit organization, or if you're just looking to make sure your nonprofit's salary and benefits are on par with other organizations, the 2011 Salary and Benefits Report is the right choice for you.  Order today to get your nonprofit back on the right track!

You can also purchase these other reports:

-2011 Nonprofit Organizations Salary Report
-2011 Nonprofit Organizations Benefits Report
-2011 Nonprofit Organizations Top Executive Positions Salary and Special Perks Report

Charitable Deduction Cap Nixed From Jobs Bill

A proposed cap on charitable deduction has been nixed from the American Jobs Act by Senate majority leader Harry Reid (D-Nev.).  The cap, which was strongly opposed by many nonprofit leaders, would have limited the deductibility of charitable contributions for individuals earning more than $250,000, from 35 percent to 28 percent.  It was President Barack Obama's fourth attempt at the cap, each time to pay for a specific bill.  The jobs bill will instead be paid for by a 5.6-percent surtax on individuals earning more than $1 million a year.

The news was met with joy from nonprofit leaders, including Independent Sector (IS) president and CEO Diana Aviv.  She released the following statement to supporters this morning:

“Our assiduous efforts to share with lawmakers concerns about a cap, combined with your outreach to members of Congress to explain why tax incentives for charitable giving are critical to nonprofits and the people in our your community, made a real difference.  In fact, many lawmakers on both sides of the aisle have indicated that they do not support a cap on charitable contributions.”

Despite its removal from the Senate bill, capping charitable reduction still remains a part of the president's recommendations to the Super Committee, which is tasked with finding at least $1.2 trillion in deficit reductions by Nov. 23.  Nonprofit executives like Aviv remain focused on getting the administration to take it off the table completely.  Stay tuned to The NonProfit Times for any further updates on this subject.

The Four Steps Of A Feasibility Study

Cross-posted from our Squidoo page.

When you see the word "study," mostly negative thoughts come to mind. Studying for an exam means stress and little sleep. A government study means action will be postponed or prevented. In the nonprofit world, a feasibility study might be the best possible thing for an organization looking to start a project.

Feasibility studies aim to uncover the strengths and weaknesses of a proposal. These studies require the cooperation of all members of a nonprofit, including the board, CEO, and of any foundation being asked for financial support. The feasibility study consists of four steps, as outline on The NonProfit Times:

* Phase 1. Preparation: 30 days. Review all data, assemble names of potential interviewees, draft an invitation letter and schedule interviews. Remember to make reminder calls, finalize the list of questions and send thank-you letters.

* Phase 2. Interviews/Focus Groups: Five days. Conduct interviews and focus groups, outline the plan, keep development staff advised of the process. Strive for a minimum of 30 individuals, Identify prospective donors.

* Phase 3. Final Report Preparation: Two to three weeks. Review and organize all data, hold team evaluation and development of strategic conclusion, draft the report and submit the report.

* Phase 4. Report presentation: One day. Present report and assist with the next steps, questions and other support. The report should lead to a challenging and realistic goal.

Steve Jobs And Public Giving

In light of the passing of Steve Jobs yesterday, I thought I would bump this post.  The world truly lost a visionary in his passing.  He will be missed.

Unless you've been living under a rock, you are probably aware that Steve Jobs recently announced his resignation as CEO of Apple.  Jobs leaves behind an impressive legacy at Apple, with products like the iPhone and iPad revolutionizing our society.  He also has accumulated a great deal of wealth, nearly $8.3 billion through his shares in Apple and Disney.  Yet, as The New York Times reports, there is no public record of Jobs ever giving money to charity.

Millionaires are often at the forefront of philanthropic activities.  Bill Gates is well known for his work in philanthropy, and Warren Buffett has gotten many billionaires to sign a so-called "Giving Pledge."  The NYT piece examines why Jobs has never been involved in the philanthropic sector, at least publicly, but it came away with few answers.  The article mentions that Jobs did create a foundation in his name in 1986, but closed it after a year.  There has also been speculation that he has been hesitant to give because he has been focused on expanding Apple and dealing with his declining health. 

Given his somewhat private nature, it is possible that Job has given anonymously.  The Times article mentions that there has been speculation that a $150 million donation to the Helen Diller Family Comprehensive Cancer Center came from him.

To read the full article on this subject, head on over to The New York Times.

Tips To Find Mobile Donors

Remember when mobile phones were just able to make calls?  Those days are long behind us.  Cell phones today are basically portable Internet devices, allowing users to stay connected even when they are away from the computer.  These so-called "smart phones" have been very helpful for nonprofits as an advocacy tool and as a channel for fundraising during disasters.

Not on board the mobile fundraising bandwagon yet?  Here are some tips to get started:

• Make it simple to text in a donation.  For example, supporter of UNICEF's TAP Project need only to text "TAP" to a given number to make a $10 donation. 
• On a related note, stick to one phone number for your mobile donations.  There's no need to confuse your followers by having multiple numbers for all of your different campaigns.
• Integrate your mobile platform with existing channels.
• Make sure you to make your website mobile friendly.  It's harder to browse the site if it's not optimized for smart phone use.
• Allow your supporters to opt-in to get breaking news and other alerts texted directly to their phones.

Want to learn more about mobile giving?  We have a number of articles on the subject in our "Technology" category.

Nonprofit Board Member Term Limits Spark Debate

Nonprofit boards often spark debate among people.  There are some who believe that board members should be paid, while others think that is exactly the wrong thing to do.  Board term limits are also a hot button topic in the nonprofit sector.  These limits are discussed at great length in the latest issue of The NonProfit Times, using two opposing viewpoints on the role of nonprofit governance.

The first of these views comes from Richard Buery, president and CEO of Children's Aid Society.  His organization has instituted four, three-year terms for board members this year.  The vote for this change was unanimously approved by the board.  Buery believed this was the right change to be made because it helped limit the size of the board.  He thought that in order to have critical conversations about the future, you "can't have 50 people in the room."  This point was backed up by research that showed that when there are more than seven people in a room, the conversation will start to lose focus.

Children's Aid Society is not alone when it comes to imposing term limits on boards: 70 percent of nonprofit boards have them, according to the BoardSource Nonprofit Governance Index of 2010.  That doesn't mean everyone thinks they are a good idea.  Bruce Hopkins, a partner in the Kansas City, Kan., law firm of Polsinelli Shalton Flanigan Suelthaus, believes that nonprofits should be able to manage themselves without forcing people out:

"Limits can force new blood on a board, which can be a good thing but sometimes organizations lose people who are competent, who can serve and want to serve, but can’t."

What do you think?  Are term limits for boards a good idea, or are they unnecessary?  Feel free to chime in below.