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Friday, July 8, 2011

Discussion: CEO Changes

We just posted a discussion on our LinkedIn profile about the recent CEO changes that have been occuring at nonprofits.  The question is below:

Earlier this week, Steve Gunderson, President and CEO of The Council On Foundations, announced he would be resigning in September. There have also been a number of CEO changes, like at Save the Children and Catholic Relief Services. What advice would you have for these new generation of leaders?

Feel free to start off the discussion by visiting us on LinkedIn.

Japan Easing Towards Nonprofit Groups

Note: This is a summary of an article from an outside news organization.  To read the full article, click on the links in this post.

It's no secret that Japan has a negative view of nonprofit organizations.  During natural disasters, such as the recent tsunami or the 1995 Kobe earthquake, the government advised relief organizations to keep away.  Those that came anyway found that it was almost impossible to get anything done.  This is because the country lacks a long history of private philanthropy.  Support for those in need is supposed to come from the family, and nonprofits are viewed as interfering.  And with restrictive laws in place, life for nonprofits in Japan is very difficult.  All this is about to change, however, according to a story in The Economist.  Well, at least for the most part.

On June 22, a law was passed in Japan that will allow nonprofits to get tax relief much easier.  Currently, only 223 of the 90,000 NPOs in Japan have a special tax status.  To put this in even greater perspective, that number is at 160,000 in the UK and 1.8 million in the US.  The new law will drastically change the way the current cumbersome process is handled.  Now, municipal authorities will handle the certification process instead of the national tax agency handling certification.  This is a big deal, as the latter views most NPOs as a detriment to the country's finances.  Other changes include:

  • The so-called "public support test" will be scrapped, removing a huge burden for nonprofits eligibility.
  • Contributions will be nearly 50% tax-deductible.  This is an increase from the current 10% level
When the law comes fully into effect, it will be a huge boon for any future disaster relief efforts.  The way nonprofits are viewed by Japanese officials may never change, but this law will at least make it easier for them to operate in times of need. 

If you want to read the full story, head on over to The Economist.

Thursday, July 7, 2011

Nonprofits Gain Reprieve From Minnesota Debt Crisis

If you've been following the news lately, you might have heard about the Minnesota government shutdown.  It all started when Gov. Mark Dayton, a Democrat, attempted to close a $5-billion deficit by increasing taxes on residents making $1 million or more, as well as instituting some budget cuts.  The Republican controlled state senate, however, wanted only spending cuts.  Since no deal was made by midnight on June 30th, all non-essential government services were halted. 

This created a scare for some nonprofits in the state, such as BLIND Inc, who feared that that shutdown would severely handicap them and the people that rely on their services.  However, a district court eventually ruled that BLIND Inc and several other Minnesota nonprofits count as essential services, allowing them to operate as normally.  Here is an excerpt from the just released story from The NonProfit Times:

On the first day of rulings, Gearin ruled that the services provided by BLIND Inc. and Southern Minnesota Regional Legal Services were essential. She also included the state’s licensing agencies so licenses can be renewed, but she did not include the agency that issues nurse registration.


The ruling came as good news to Shawn Mayo, executive director of BLIND Inc. in Minneapolis, which offers training to the blind. She said her organization was able to continue without cutbacks in services because it could draw from general funds. It has 15 full-time staff and three summer temporary staff. It will be adding five more summer temps next week. The organization serves 40 to 45 people and will begin its children’s program the second week of July.


Mayo said the staff was discussing options even before the shutdown and was willing to take whatever steps necessary to keep running.


“We were quite concerned about how long we could continue to provide services and about further sustainability,” Mayo said. She added that even though her organization can operate, it is a referral agency, so she is concerned that counselors to whom clients would have been referred and who are out of work may face serious backlogs when they do return to work.


“Our students are thrilled (about the ruling),” Mayo said. “They didn’t have anywhere else to go. And they’re what it’s really about.”

You can read the full story at The NonProfit Times website.

Catch Up on eNewsletters From The NonProfit Times

Did you know you can view all of our past eNewsletters on The NonProfit Times' website?  By visiting our eNewsletter page, you can take a look at all of our past (and current) messages.  This is a handy feature for a number of reasons.  First, if you were ever thinking of subscribing to them, you will now get a better idea of the kind of content you will be receiving.  On the other hand, it allows you to catch up on issues you might have missed if you hadn't been subscribed since the first newsletter came out.

As a reminder, here are the newsletters we currently offer:

-NPTimes Weekly-Get updates on the latest trends in nonprofit management. Sent every Monday.

-NPTimes Jobs-Delivers the latest news on nonprofit jobs, including the latest positions from our job board. Sent every Tuesday.

-Exempt-The companion eNewsletter to The NonProfit Times’ sister publication, Exempt Magazine. Sent  third Tuesday of each month.

-NPTimes TechnoBuzz-The latest trends in nonprofit technology can be found in this eNewsletter. Sent second Tuesday of each month.

-NPTimes Instant Fundraising-Need help with fundraising for your organization? This is the newsletter for you. Sent every Wednesday.

-NPTtv Newsletter-Sent every other Wednesday with the release of the new NonProfit Times TV webcast. Includes links to the individual stories in the new episode.

All of these newsletters are available to view in our archive, so check them out.  Just scroll down past the article categories to the section entitled "eNewsletters" and select the edition of the newsletter you want to view.  And if you are interested in signing up for any of these e-mails, visit our newsletter subscription page.

Wednesday, July 6, 2011

Management Tip: 7 Essentials to Attracting Great Employees

Here is a recent management tip direct from The NonProfit Times website.  Check the management tips page often, as new ones are added every week.

***

Wondering why your organization has trouble attracting good employees?

Well, that article in The New York Times reporting your CEO has been found certifiably insane sure didn’t help, but in fact when it comes to hiring and retention, the times they are a changing.

In their book “Brand For Talent,” Mark Schumann and Libby Sartain offer information meant to show that getting and keeping top employees means awareness that present-day employees are not the same as those who grew up during the Depression, even if they are dealing with the Great Recession.

Schumann and Sartain offer seven essentials that can help deal with a new situation.

• Wake up. Today’s job-seekers see themselves, not you, as the consumers. With a world of information at their fingertips, and the savvy to maneuver it, they are looking for something that satisfies them.

• Look ahead. You might have to market yourself as a good place to work. Think sensibilities, challenges, lessons, opportunities, the future.

• Create. A company must creatively market its employer brand to each segment of worker it hopes to secure.

• Segment. As with marketing, segmenting means adapting the talent brand message for each segment based on insight into audience needs and preferences.

• Implement. Be recognized, believed, personalized, and remembered.

• Sustain. There must be alignment of the culture, corporate identity and the consumer and employer brands.

• Survive. Be aware of and utilize social media to your benefit.

Tuesday, July 5, 2011

Convio Expands Across The Pond

Just in time for Independence Day, Convio has announced plans to purchase the British company Baigent Digital.  The Austin-based online fundraising and constituent management (CRM) firm, which serves more than 1,400 nonprofits, payed $2.9 million for Baigent, and may be on the hook for another $400,000 depending on the performance of the company. 

Founded in 1997, Baigent is one of the UK's leading digital strategy, design and technology implementation firms.  The current plan is for Convio to offer their fundraising services to British charities.  At a later, yet to be determined date, they will offer additional services, including CRM.

You can get the full scoop on this story by visiting The NonProfit Times, or you can go to Convio.com for even more info.

Council on Foundations CEO Set to Step Down

Steve Gunderson, President/CEO of The Council on Foundations, has announced his intentions to resign his position on September 1st.

In a statement posted on CoF's website, Gunderson said that it was "the right time for a transition" in leadership.  He went on to say that he reached his decision after a lengthy discussion with Board Leadership.  No successor has been named at this time, but Gunderson is confident the Board will appoint a new CEO who will continue the organization's success and "propel the council to new levels of greatness."

Gunderson leaves behind a very impressive list of accomplishments at The Council on Foundations.  Among other things, he was responsible for helping the organization move from its DC offices to its current home in Arlington, VA.  He also added 100 members to their roster in the past two years, while maintaining strong retention rates at the same time.  Avid readers of The NonProfit Times will also know that he was named to our "Power and Influence Top 50" lists in each of the past five years. 

Gunderson's leadership will surely be missed at CoF, but executive transitions happen all the time as our readers know well.  Please feel free to post your reactions to this news in the comments section below, and remember to read the full story at The NonProfit Times.

Friday, July 1, 2011

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:



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.

Thursday, June 30, 2011

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.

Wednesday, June 29, 2011

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:

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

Tuesday, June 28, 2011

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.

Monday, June 27, 2011

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.

Thursday, June 23, 2011

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.

Tuesday, June 21, 2011

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!

Monday, June 20, 2011

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.