Bring Donors Out

Below is an excerpt from a great op-ed piece from The New York Times about donors; specifically how organizations are now going to be able to conceal their donors thanks to the Citizens United Supreme Court case.

THE billionaire industrialist brothers Charles and David Koch have drawn sharp criticism for their extensive giving to libertarian causes. Though some of their organizational ties are public, many are unknown, thanks to a provision in the tax code that allows the Koch brothers and other donors, on both the left and the right, to conceal the recipients of their largess, even as they get to write it off on their taxes.

Fortunately, there is a solution to this problem: require all nonprofit organizations that engage in political advocacy to reveal their donors.

True, individuals must disclose on their tax returns the details of large gifts to charitable organizations, known as 501(c)3 groups from the section of the tax code governing them. But this information is kept private by the Internal Revenue Service. While gifts given directly through foundations must be made public, the wealthy can give without leaving fingerprints by routing money through “donor-advised funds” sponsored by 501(c)3 groups — which don’t have to publicly name their donors.
And, thanks to the Supreme Court decision in the Citizens United case, things are getting even worse. That decision now allows organizations that can engage in overt partisan work, called 501(c)4 groups, to take unlimited corporate money — again, without revealing their donors.
 
Read the rest of the article at The New York Times.

Establishing Rewarding Fundraising Partnerships

Note: This is a summary of an older NPTtv story about Fundraising Partnerships.

Corporate donors can be very beneficial when it comes to the financial health of nonprofit organizations, but they can represent a significant liability as well if the partnership between the nonprofit and the business is structured incorrectly. According to Adam Kerins, corporate and foundation relations director for the Children's Specialized Hospital in Mountainside New Jersey, it is vital that a nonprofit organization do its prospect research and other associated homework to avoid striking up relationships with businesses that are counterproductive. This research is important as it relates to identifying and quantifying a gift in terms of the donor's capacity. This information that comes out of this research is also useful in knowing the appropriate stage of the partnership at which to establish an ask price-point.
What role does geography play?

According to Kerins, when it comes to corporate partnerships, business are more inclined to support charitable causes that are involved in positive work in the areas where there employees live and work. Businesses are often interested in that aspect when being approached by nonprofits with regard to a fundraising initiative. Corporations generally want to know that the charitable gift they are making with result in mutually rewarding benefits between themselves and the relevant nonprofit.
Kerins goes on to state that multi-year partnerships are typically more desirable as it means that the corporation or foundation has a greater period of time in which to develop an awareness of the nonprofit's needs, as well as to establish bonds of trust and communication that contribute towards a fulfilling and rewarding partnership arrangement. A nonprofit that has a good understanding of what the corporation wants out of the relationship is in a better position to benefit from repeated and enthusiastic funding. It's also good to identify an internal champion in the organization who is passionate about the charitable efforts that the nonprofit is engaged in.