July 1st Issue of NPTimes Released

Start checking your mailboxes: The July 1st issue of The NonProfit Times has been released!  This issue features a Special Report on the Giving USA numbers, as well as articles on topic ranging from Reel Grrls battle with Comcast, to the nonprofits that recently had their tax-exempt status revoked.  Here's a list of some of the pieces included in the new edition:

• "Reel Grrls Vs. Media Giant"
• "Being There, But Not Really"
• "Long Road Back For Exemption-Revoked Groups"
• Column: "Yeah, So?"
• Column: "Hot Copy"
• Special Report: "Giving Pegged At $290.89 Billion, Maybe"

Interested in getting a sneak peek at the new issue?  Head on over to The NonProfit Times home page and scroll down to "Current Edition."  Here you can take a look at three of the articles in the magazine, as well as the Special Report and two columns.

DC School Sports Saved By Anonymous Donation

Note: This is a summary of a story from an outside news organization.  Follow the links in the post to read the full article.

Sports in Washington D.C.'s public schools had been going through some tough times.  Faced with a 28% budget cut, they were suddenly saved by an anonymous $1.5-million donation.  According to a story in The Washington Examiner, the money went to the D.C. Public Education Fund, a nonprofit dedicated to finding money for public schools in the District.  This new influx of cash will allow the school to purchase new athletic equipment and add sports programs for girls.

The Examiner story states that school officials became aware of the donation during the fiscal year, so some parents and community members are frustrated that they weren't made aware of the donation after spending countless hours fundraising.  The D.C. Public Education Fund explained that they don't publicize a gift when the donor wishes to remain anonymous.  Even though the donation is sure to boost sports in D.C.'s public schools, some parents are still not sure whether they will cancel their fundraising plans.  They are skeptical of the secretive nature of the donation, and want to know the plans are for next year's budget.

If you are interested in reading the rest of this story, visit the website of The Washington Examiner.

NPTtv Summary: 9/11 Charities After Bin Laden

It was the news many September 11th charities had been waiting for: Osama Bin Laden is dead.

But even after the death of 9/11 mastermind in May, these charities insist their will be no changes in the work they do. For example, Voices of September 11th still held its annual fundraising gala in New York City, featuring former Mayor Rudy Giuliani. In addition, plans for the 10th anniversary of the 9/11 attacks are still moving forward.

Other charities are following this path as well.  World Cares Center Executive Director Lisa Orloff says that she believes the news of Bin Laden’s death will have no affect on their anniversary event, or their fundraising strategies. Orloff did not plan to comment specifically on Bin Laden's death, but she did say her group's outreach towards communities would adjust to this monumental change.  She did not, however, go into specifics.

NPTtv Summary: NYC Starting Financing Agency For Nonprofits

Note: This is a summary of one of the stories from the latest webcast of The NonProfit Times TV.

In an effort to help NYC nonprofits get low cost, tax-exempt financing, Mayor Michael Bloomberg is starting a new agency. Called the New York City Industrial Development Agency (NYCIDA), it previously issued tax-exempt bond financing for nonprofits capital projects. But since January 2008, it hasn’t been able to deliver such financing because of a change in the law.  Under its new form, NYCIDA will provide financing to help NYC nonprofits expand or upgrade their facilities.

The new agency is sure to be a welcome addition to nonprofits in the Big Apple, many who have gotten the their funding from other states.  According to the Mayor’s Office, more than a dozen groups have gotten out-of-state funding, totaling more than $337 million since June 2009.

NPTtv Summary: Watching the Watchdogs

Note: This is a summary of one of the stories from the latest webcast of The NonProfit Times TV.

It looks like it's the watchdogs turn to be watched.

Mark Fitzgibbons, an attorney and direct response fundraising expert, has launched CharityRegulatorWatch.com.  This new website is designed to make sure charity regulators are following the laws when it comes to their review of charitable organizations.  According to Fitzgibbons, these regulators are often the biggest violators of the laws governing charities, mostly because they are not accountable.  Charity Regulator Watch aims to change that. 

Still, Fitzgibbons stresses that his site is not meant to be legal advice for charities.  It is just meant to provide information and engage in occasional activism.

New NPTtv Webcast Is Out!

The latest episode of The NonProfit Times TV has just been released.  Here are some of the stories in this week's webcast:

• Giving Up But Still Behind: The Giving USA numbers show giving still lagged a few years ago.
• Watching the Watchdogs: Charity regulators are being watched.
• New York City Starting Financing Agency For Nonprofits: The City of New York is starting a financing agency to help capital projects by nonprofits.
• Nonprofits After Bin Laden: Death Does End Mission for Post 9/11 charities.
• Nonprofits Using QR Codes For Donors' Smartphone: Video interview with Brett Meyer of NTEN.

As usual, we will have video recaps of some of these stories shortly.  In the mean time, check out the new webcast!

Study: Nonprofit Managers Looking For the Door

Nonprofit executives aren't too happy with their positions, according to a new survey from CompassPoint Nonprofit Services and the Meyer Foundation. The report, called “Daring to Lead 2011: A National Study of Nonprofit Executive Leadership," shows that nearly two-thirds of nonprofit managers plan to leave their jobs within the next five years.

One of the biggest concerns these executives have remains their boards. The survey reports that only one-fifth of respondents think their boards are doing a good job. In particular, executives are not confident their board of directors have a plan to pick new leaders. In addition, they believe they are still being cautious with the budget following the recession. The survey states that 65% of executives believe that significant levels of recession-related anxiety remain, though this directly related with the amount of cash reserves on hand. For example, those organizations with more than 6 months of reserves reported anxiety at only 15%, as opposed to 33% with only one month of reserves.

You can read about the whole report on The NonProfit Times website. What are your thoughts on it? Have you been noticing similar feelings of anxiety at your organization? Leave your comments below.

New Nonprofit Management Tips

If you often visit The NonProfit Times on the web, you might have noticed a section of the site called Management Tips.  This page features advice for nonprofit managers on a multitude of different topics, from finance to social media.  We just updated this page with new tips for the following categories:

• Marketing
• Finance
• Social Media
• Revenue
• Planned Giving
• Boards
• Advocacy
• Database

Here's a sample of one of the new management tips for finance:

Reviewing the substantiation rules

The need for nonprofits to prove that they are doing good rather than scamming the general public is an ongoing one. New regulations are passed every year, but at The Georgia Society of CPAs 2011 Nonprofit Conference, attorneys W. Marshall Sanders and Margaret W. Scott reviewed features of a tax law passed in 1993, Section 170(f)(8) of the Internal Revenue Code requiring donors and nonprofits to “substantiate” a contribution of $250 or more if a tax deduction is to be allowed.

The substantiation must include the following:

• The amount of cash contributed and, in the case of non-cash contributions, a description of the property.

• A statement of whether the organization provided any goods or services in consideration of the donor’s contribution.

• If the donee did provide goods or services (other than intangible religious benefits), a description and good faith value of the goods and services. If religious intangible benefits were supplied, a statement to that effect must be supplied.

There are other aspects of the law to consider:

• No particular format is required for substantiation.

• There is no “family foundation exception” to the rule of Section 170(f)(8).

• The burden is on the donor, not the charity, to obtain the substantiation.

• Unhappy taxpayers continue to litigate the rule, unsuccessfully.

• The Internal Revenue Service (IRS) rigorously enforces the rule.

***
To read the rest of the tips, visit the Nonprofit Management Tips page.

Catholic Relief Services Gets New CEO

Nearly a week after Save the Children appointe a new CEO, Catholic Relief Services has a new executive of their own.  The Baltimore-based nonprofit announced last Friday that Carolyn Y. Woo will replace the retiring Ken Hackett as CEO of the organization.  Woo, 57, had served on the CRS Board of Directors from 2004 until 2010 and is currently the dean of Mendoza College of Business at the University of Notre Dame.  She will officially become the seventh chief executive of CRS on January 1st, 2012. 

The Most Rev. Gerald F. Kicanas, Bishop of Tuscon and Chairman of the CRS Board of Directors, said the following about Ms. Woo:

“Dr. Woo is a woman of deep faith with a strong commitment to the mission of the Church. She will bring exceptional abilities and gifts to the task of serving the poor around the world in the name of Catholics throughout the United States.  CRS is so blessed to have had Ken Hackett's leadership these 18 years, now to be followed by another outstanding faith-filled leader in Dr. Woo."

Woo, who was born and raised in Hong Kong, immigrated to the United States to attend college at Purdue University.  There she received her B.S., M.S.I.A., and Ph. D degrees.  During her six years on the CRS Board of Directors, she made several trips overseas to visit the organization's programs and staff.  This included a trip to Banda Aceh, Indonesia after the Indian Ocean tsunami.  She also made stops in Afghanistan, Pakistan, Ethiopia, and Kenya.  She released the following statement on her rise to CEO:

“I am honored to join an organization that is a true manifestation of the compassion of Jesus Christ and the Church's ministry of charity around the world.  I look forward to building on the strong accomplishments of Ken and the global staff of CRS.”

To read the full story, visit The NonProfit Times website.

Report: Charitable Foundations in Maine are Struggling

Note: This is a summary of an article from an outside news organization.  Please click the links in this post if you want to read the original story.

Giving to Maine charitable organizations saw a serious decline, according to a story in The Bangor Daily News.  The article references a recently released report by the Maine Philanthropic Center, which showed that giving fell nearly 6% (from $133 million to $127 million) between 2008 and 2009.  The center also believes that the philanthropic sector will continue to see poor numbers as people continue to deal with tight budgets because of a down economy.

Here are some other findings from the report:

• Maine foundation assets saw a 10% decrease from 2008 to 2009, despite the fact that these assets increased more than 200% since 2000.
• Despite declines in funding, giving to certain segments of society was actually up between 2008 and 2009.  These areas include human services agencies and arts and humanities.
• Charitable contributions by people in Maine came out at $402 million in 2008.  This was a 16% decrease from the previous year.

So why are these numbers not current?  According to the story, it is because the Center's report relies on IRS tax return data, which takes some time to develop.  You can read the full article by visiting The Bangor Daily News website.

Three Days to Complete the 2011 Salary and Benefits Survey

It's hard to believe, but there are only three more days left to complete the 2011 Salary and Benefits Survey!  And if you needed a little more incentive to finish yours, how about this: You will be entered to win a free iPod Nano if you complete it on time.  Want to know more about the survey?  Here are some highlights:

* Convenient and flexible survey completion – Complete the online survey questionnaire at your own pace and schedule.

* Comprehensive job coverage – The survey collects base salary and bonus pay information on more than 300 nonprofit specific positions.

* Easy and accurate position matching – Match the positions within your organization to the survey using the intuitive job family groupings and position job descriptions.

* Ongoing assistance whenever you need it- Contact us by phone or email if you need help completing the survey, or use the handy online resources for instant results.

* Complete information about benefits practices – The survey gathers information about benefit offerings, costs, eligibility and employee participation for 94 employee benefits from health insurance to retirement plans.

* Organizational profile information – The questionnaire collects data on budget size, employee turnover, salary increases, employee tenure, staffing levels, geographic location, field of work, and number of employees.

All organizations that participate in the survey will receive a FREE executive summary of the results in August 2011.  What's more, participants will be able to purchase the 2011 Salary and Benefits report for 50% off its original price when it's released.  So what are you waiting for? Have your nonprofit be a part of this year's salary survey today!

Advantage of Multiple Job Interviews

Cross-posted from Nonprofit Jobs blog:

It can be successfully argued that the job interview is the most important part in the search for new employees. This is when you, the nonprofit manager, will truly get to know the prospective employee. A job candidate may look flawless based on their resume, but you might find that they are not as great after an interview. While it would be ideal to conduct one interview for every individual, you will find that it is much more beneficial to interview those candidates that are most exceptional a second time.

In general, the first interview is more of a "getting to know you" affair. You should be looking to find out if the candidate is truly the person they claim to be on their resume. You will ideally have too many candidates to interview for it to be wise to try and figure out if they will be "the one." Treating the initial interview as a kind of filter, therefore, will make it easier to figure out who will be the best fit for your organization.

And that is why it is so advantageous to conduct multiple interviews. While it would be best if you could figure out exactly who you want to hire based on one interview, it makes a lot more sense to have multiple rounds. You will undoubtedly be faced with prospects who don't live up to their resumes in the first round. By weeding out these individuals, you will have a better chance of finding out who is the best person for the position when you begin your second round of interviews.

Giving USA: Americans Gave $290 Billion, Maybe

It appears giving could be heading back to normal levels.

Initial estimates showed that giving by Americans was up 3.8% in 2010 (2.1% adjusted for inflation), according to Giving USA, a publication of Giving USA Foundation.  This was an increase from $280.3 to $290.89 billion.  Despite this initial optimism, revised estimates in the report show that giving has a lot further to go before it can rebound from the lows it reached in 2008 and 2009. 

So what exactly is the state of giving in America?  Read this excerpt on the report by The NonProfit Times:


Observers still were hopeful about the increase last year, after a combined drop of more than 13 percent the past two years. As a percentage of Gross Domestic Product (GDP), charitable giving remained at 2 percent, the 14th consecutive year it’s been at least that high.


“People are starting to give a bit more, give larger gifts, and probably give to more organizations. That’s good news in this overall compilation of data,” said Edith Falk, chair, Giving USA Foundation, and chair and CEO of Chicago-based consulting firm, Campbell & Company. “The positive news is that as the economy is recovering, so is philanthropy,” she said.


Revisions to last year’s initial estimates for 2009 changed the total giving number of $303.75 billion to $280.3 billion. Final estimates for 2008 also were revised downward, from a revised $315.08 billion last year after initial estimates in 2009 of $307.65 billion. Giving USA typically revises numbers annually as more data becomes available.


“It seems like we’ve gone quite a ways back in the giving and it’s going to take us a long time to recover, unless the economy takes a giant step forward,” said Elizabeth Boris, director of the Center on Nonprofits and Philanthropy at The Urban Institute in Washington, D.C. She expressed some concern about the significant revision to last year’s data. “It makes me a bit concerned about talking about $280 billion in 2009; you have to go all the way back to 2003 or 2004 to see numbers like that,” she said.


Individual giving was up by 2.7 percent, from $206.16 billion to $211.77 billion, according to estimates for 2010. Individuals continue to make up the bulk of giving, about 73 percent.

Visit The NonProfit Times for the whole scoop.

June 15th Issue of NPT Released

The June 15th Issue of The NonProfit Times was released this week.  If you have already subscribed, you probably have received your copy in the mail (or will be soon).  In the meantime, here is an excerpt from one of the articles in the issue:

Marketing to Hispanics Is More Than Language

By Samuel J. Fanburg

The March of Dimes (MoD) began a direct response campaign to Hispanic donor prospects in 2006 after recognizing that not only was this a population with formidable purchasing power, but that the organization provided services used by people in the demographic group.


A year later the White Plains, N.Y.-based MoD generated $122,305 by mailing donor acquisition packages to 602,000 Hispanic households and $54,184 by mailing 148,771 renewal packages. After reigning in efforts during the recent recession, Kim Haywood, vice president of direct response fundraising, said the organization has begun discussing implementation of new direct mail packages into the market segment.


Based on 2010 data from the 2010 U.S. Census Bureau, more than half of the growth of the United States population between 2000-2010 was due to an increase in the Hispanic community. The Hispanic population grew 43 percent to 47.7 million people. By 2050, estimates have Hispanics representing 24 percent of the U.S. population and are expected to hit 102.5 million, making roughly one of every four Americans having Hispanic ethnicity.


Purchasing power is expected to triple to $1.5 trillion by 2016, and 33.9 percent of the Hispanic population is younger than age of 18.


MoD began its Hispanic direct mail campaign by first renting lists from popular magazines, such as People en Espanol and Latino Magazine. Starting with a Spanish only website, www.nacersano.org, meaning “born healthy,” MoD tried to cater to the cultural values of Hispanics, according to MoD's Director of Latino Outreach, Lilliam Acosta-Sanchez.


“Using our Spanish language website to specifically reach out to Spanish Latinas, the March of Dimes has really been able build a brand. Hispanics are able to use a site that is not only culturally relevant, but linguistically as well. The content and imagery is also different, in order to meet the needs of women and family,” said Acosta-Sanchez.

To read the rest of this article, as well as some of the others in this issue, head on over to http://www.thenonprofittimes.com/.  And if you haven't already, subscribe today!

Save The Children Picks Miles For CEO

Carolyn Miles will become the next CEO of Save The Children, according to a story just posted on The NonProfit Times website.  She will become the first woman CEO in the 80-year history of the organization when she assumes the position on September 1st.  Her rise to chief executive comes after it was announced that the current CEO, Charles F. MacCormack, would be stepping down after 18 years.  Here is an excerpt from the NPT story:

“Our leadership committee considered many extraordinary candidates for this position during a nationwide search,” said Anne Mulcahy, Save the Children's board chair and former Xerox CEO. “But it soon became very clear to all of us that Carolyn was the right choice to continue our important work on behalf of children in need and to create a new vision for the future. She has an in-depth knowledge of global children's issues, many years of experience in leading large organizations and is highly results driven. But most importantly, she has an authentic passion for our mission, to make lasting change in the lives of the children who need us most.”


Miles joined Save the Children in 1998, as associate vice president for sponsorship and marketing, and was appointed executive vice president and COO in 2004. Previously, she worked for American Express in New York and Hong Kong and was a successful private entrepreneur. She received an M.B.A. from the University of Virginia's Darden School of Business, where she now serves on the Board, and has a B.A. from Bucknell University. Miles is also on the Board of Directors of the Blackbaud Corporation.


“I am thrilled with the Board's decision and honored to be asked to head the organization I believe is making the greatest difference for children and families around the world,” said Miles.

To read the full story, visit NPT's website.

7 Tips to Confront "Poor Performers"

Nothing is certain but death and taxes.  You can add below average employees to that list.

As a nonprofit manager, you are always going to have to handle less than ideal employees.  It's simply a fact of life.  How you confront these individuals can determine how successful your organization can be.  It would seem there are only two ways to deal with these types of workers: You can avoid a potentially messy confrontation and hope they improve.  Or, you can meet with the problematic employee and tell them to shape up or ship out.  In his book How to Lead by THE BOOK, Dave Anderson (founder of The Matthew 25:35 Foundation) says there is actually a middle ground.  By combining gentleness with firmness, a strong nonprofit manager can approach these "poor performers" in a way that will get them to perform better without making a scene.  He lists 7 ways to get the most out of these confrontations:

1. Confront with class: Anderson urges respect when confronting problematic employees. Keeping that in mind, it is best to discuss problems with poor performers in private rather than bringing up the problems in front of their colleagues.  Making a mistake is embarrassing enough without it having to be revealed to everyone in the office.
2. Nix favoritism: Top performers are another constant for any nonprofit organization.  But just because this individual hits the proverbial home run 99% of the time doesn't mean you should be cutting them slack if they happen to strike out once or twice.  This will severely undermine the culture of your organization, as well as your credibility as a manager.
3. Make sure the correction fits the "crime": Poor performers should be punished appropriately for whatever mistake they made.  If it was only a small error, there is no need to institute harsh penalties for them.  Anderson lists problems that stem from poor attitude, a lack of respect for the values of the company, or an overly inflated ego as issues that must be corrected most forcibly.
4. Beware of committing a false kindness: Never try to forgo confrontational talk by just giving positive reinforcement.  You might think this will help them perform better, but according to Anderson you are actually showing a lack of caring.  He says that you should confront these problems before they get too big.  This will help to teach employees that their leader cares about how work is conducted in the organization.
5. Choose your battles wisely: A strong nonprofit leader will be able to know when a response is needed rather than a rebuke.  Anderson uses the example of a mostly reliable employee coming in late one day.  Instead of yelling at this employee, he suggests inquiring with them whether everything is all right.  Tardiness from a repeat offender, on the other hand, would warrant a much different response.
6. Follow up with follow-through: Always offer advice and encouragement after your initial confrontation with a poor performer.  Failing to do this will leave the employee with no knowledge of what they need to do to improve.  As Anderson says, it's like going to a doctor for a diagnosis and then refusing to take the prescribed medicine.
7. Don't dig up the past: As tempting as it may be, you should never bring up past mistakes to poor performers.  It does no good to live in the past.  What's important is to correct the current problem, and bringing up dirty laundry won't help that.

Interested in reading more about what Dave Anderson has to say?  Visit the website for How to Lead by THE BOOK at http://www.learntolead.com/.  And if you want even more management tips similar to these, visit The NonProfit Times.

NPTtv Summary: Tax Policy Hurts Charity, Says CBO

New findings by the Congressional Budget Office suggest that potential changes in the federal tax code could leave a huge mark on the nonprofit sector.

The CBO says that adding a contribution floor would reduce the total federal tax subsidy, as well as donations to charity. The reduction in the subsidy would lead to an increase of government revenue larger than the reduction of giving, whether measured in dollars or a percentage change. Introducing a floor would continue to provide a tax incentive for giving above its level. At the same time, it might reduce the tax subsidy for donations that people might have made; even without a tax incentive.

Here are some additional findings by the CBO report:

• Allowing all taxpayers to claim a deduction for charitable giving would have increased donations in 2006 by $2 billion (or 1%).
• This also would have increased the total tax subsidy by $5.2 billion (or 13%).
• Combining a deduction for all taxpayers with a contribution floor could increase donations and decrease the tax subsidy. 

NPTtv Summary: Kids Serve Founder Charged in Child Porn Case

The director of a San Francisco-based arts group faces jail time for allegedly possessing child pornography.

After The FBI traced suspicious online activity coming from the house of Anthony Josef Norris, who founded Kids Serve Youth Murals more than a decade ago, they decided to investigate further.  This lead them to discover 600 explicit images of children.  Norris faces a maximum jail sentence of 10 years. He was released from prison after posting a $200,000 bond.  He may be in for even bigger trouble, however, as investigators work to determine if any of the children involved with Kids Serve were harmed by Norris.

The fall out from these revelations have hit Kids Serve very hard.  The city of San Francisco, which had already given $53,000 to the organization this year, has suspended all further funding for Kids Serve.  The organization’s website has also been shut down.

NPTtv Summary: Homelessness Gets Slam Dunked

An NBA superstar is bring his game into the philanthropic court.

The Los Angeles Laker's Kobe Bryant has launched the Kobe and Vanessa Bryant Family Foundation, which aims to help the homeless in LA.

Bryant made the announcement at a news conference at My Friends Place, a nonprofit resource center that offers free emergency services to about 1,600 homeless people a year. The goal for the new charity is to provide permanent housing and career/educational resources for the homeless.

If you would like to learn more about Kobe's charity, visit it's website at http://kvbff.org/.

NPTtv Summary: Reel Grrls Dumps Comcast

Reel Grrls, a Seattle-based nonprofit that teaches film production and media literacy to teenagers, is parting ways with Comcast after a dispute over a tweet.

The trouble all started when the organization sent out a message on Twitter that questioned Comcast’s hiring of former FCC chairwoman Meridith Atwell Baker. The following day, a VP at the cable company told Reel Grrls they could no longer give them an $18,000 grant to support a summer film program. After some media backlash, Comcast publicly apologized. They said the executive was not acting under company policy and offered to continue their funding of Reel Grrls.

It would appear the apology came too late.  The nonprofit has since rejected Comcast’s offer. So how will they cover the costs of their summer program?  A little online fundraising.  They recently e-mailed their supporters with a video asking them to donate to cover the cost of the program. Within two weeks, the campaign raised $24,000 from 600 individual donors.  Nearly all of these were new donors.