Nonprofit Salary And Benefits Report

IRS regulations call for compensation comparables

The IRS is pushing to get more accurate information regarding nonprofit executive compensation. Form 990, which most 501(c)3 organizations must file annually, reflects the increased interest from IRS. The NonProfit Times and Bluewater have compiled the most current salary and benefits information available for the nonprofit sector.

Select your report above to purchase and download your copy of the nation's most comprehensive reports on 252 nonprofit positions from entry level to the executive office including base salary, bonus practices, total cash compensation, salary increases, employee turnover, and more.  As an added bonus, the readers of this blog have access to a special discount.  Simply enter the coupon code NPTblog10 upon check-out and you will get a 10 percent discount on any of the reports.  Alternatively, you can follow this link and the discount will automatically be applied to your purchase.

Indiana Nonprofit Defends Political Contribution

A nonprofit in Portage, Indiana is defending a $500 contribution to the local Mayor's re-election campaign.  An article on PortageCommunity.com reported that Bert Cook, executive director of the Portage Economic Development Corp (PEDCO)., said they did not consider the participation in a Sept. 19 golf outing as a campaign contribution to incumbent Democratic Mayor Olga Velazquez, but as a chance to network with the city's business and community leaders.

Cook further explained to PortageCommunity that even if the money was supposed to be a political contribution, his accountants told him that it is legal for the organization to spend up to 20 percent of its yearly total expenditures on lobbying.  PEDCO receives almost half of its annual funding from tax dollars, but the contribution came from organization's marketing budget, which contains only private contributions, according to Cook.  Velazquez has a seat on PEDCO's board of directors, though Cook says she is not on the executive committee, which has a say in the decisions the organization makes.  Cook says he will re-evaluate the decision to attend the fundraiser, and probably will avoid similar events in the future.

Lobbying has long been a source of discomfort for nonprofits.  Many organizations aren't confident they are allowed to lobby, and lobbying rules are complex and often require disclosure.  You can learn more about nonprofit lobbying by visiting our website.  You should also be sure to read the rest of the PortageCommunity aritcle.

Tax Hikes And Giving

For all the discussion about how a cap on the charitable deduction would affect giving, it seems like proposed tax hikes by the Obama administration might have an even bigger impact.  According to a study by the Center on Philanthropy (CoP) at Indiana University, itemized giving would decline if the Bush-era tax cuts are allowed to expire after next year.  Giving by households would have seen a decline in giving by 1.6 percent in 2009 and 2.4 percent in 2010 if both policies had been in effect.  Total itemized giving would have declined by 0.4 percent in 2009, 1.3 percent in 2010.

These numbers may represent a relatively small direct impact on giving but Patrick Rooney, executive director of CoP, explains that the numbers become more significant when you take into consideration "the weak economic climate, funding reductions and increased demand for services" that are already impacting nonprofits across the country.

The Bush tax cuts were extended through 2012 for all taxpayers last year.  The Obama administration still argues that those tax cuts should be eliminated for households making more than $200,000.  This puts the president on yet another collision course with Republican, and some Democratic, lawmakers who believe that the tax cuts should be made permanent for all households.  You can get the full scoop on the CoP study in The NonProfit Times.

A "Modest" Postal Rate Increase?

The NonProfit Times featured an article in yesterday's NPT Weekly Newsletter that had some important news when it comes to direct mail.  Though some mailings, like standard mail letters, will be seeing a decrease in price next year, rates on a whole will increase by 2.1 percent on Jan. 22, 2012.  In the article, a spokesperson for the United States Postal Service (USPS) said that the increase is "modest," and that it won't hinder nonprofit mailings.  Indeed, it doesn't appear that nonprofits are that upset about this increase, especially since it does not exceed the Consumer Price Index (CPI) based on inflation rate.  Anthony Conway, executive director of the Alliance of Nonprofit Mailers, had this to say about the proposed increases:

“The changes reflect the CPI for October, so the USPS has every right to increase mailing service charges.  Nonprofits are now prepared to deal with these increases as they can be predicted based on where the CPI is. This is not bad compared to other increases and at least they are not trying for an exigent increase again.”

The proposed rates are definitely not as severe as they have been in the past.  In 2007, the USPS proposed changes that increased the price of flat mailings by 30 to 40 percent.  More recently, the USPS had proposed an increase of 5.6 percent due to "exceptional circumstances," but that proposal was turned down by the Postal Regulatory Commission (PRC). 

What do you think about the new rates?  Are they justified, or do you think that they will negatively affect your nonprofit?

Crisis Presents Opportunity For Nonprofits

The economic crisis has presented a unique opportunity, at least according to a columnist from The San Francisco Chronicle.  C.W. Nevius wrote in a column on Saturday that the city of San Francisco must encourage nonprofits it supports to either close or merge with another agency.  The city spends about $500 million a year funding local agencies, many of which provide shelter for the homeless, job training, and violence prevention. 

Although Nevius acknowledges these are worthy causes, he says that there is too much overlap among nonprofits in San Francisco.  For example, there are 10 agencies providing the exact same services as Homeless Employment Collaborative, which gives job training to the unemployed.  Money could be saved by simply having similar organizations merge together.  While it might seem difficult to get many of these nonprofits to accept such a proposal, Nevius reminds readers that it has been done before.  In 1967, Haight Ashbury Free Clinic (HAFC), which was on the verge of closing because of financial difficulties, merged with Walden House after a gentle nudge by the city.  Walden helpef HAFC get out of debt and gave them a medical presence.

San Francisco has been pushing these types of mergers for three years now, though not much has become of it as of yet.  You can read the full SF Chronicle piece over at their website.

Preparation Is Key For Capital Campaigns

Preparation is important for almost any big event.  If you don't do the proper work beforehand, it will likely come back to haunt you on the big day.  This is especially true for capital campaigns.  According to a recent nonprofit management tip from The NonProfit Times, organizations must do extensive preparation before heading into a capital campaign.  You can't just decide to run a campaign without doing some major prep work, and we're not just talking about deciding what the goal is.  There's a lot more involved:

• Emphasize personal participation. Tell your board members that you expect a capital campaign gift from each of them. The same goes for any volunteer who would like to solicit others.
• Create a realistic financial plan. Outline what resources you will need. Costs might be greater than you anticipate -- so make sure you budget a little wiggle room.
• Set a fundraising goal. Once again, be realistic. It will just be icing on the cake if you surpass the goal.

Want to know more?  Read the full article here.  You can also read more articles about capital campaigns on our management tips page.

Planning A Thank You Campaign

Cross-posted from our Squidoo page.

One of the most basic rules of etiquette is to say "thank you" when someone does something nice for you. The same rules apply for fundraising. Donors are more likely to give to your organization again if they sense that their contributions were noticed and appreciated. There are many ways to conduct a successful thank you campaign, including:

-Sending personalized e-mails or letters to donors after the gift is received. It's very important to avoid sending automatic responses to gifts. Donors will not appreciate this.

-Setting up a phone-a-thon. These can take a lot of work, but the effort is usually worth it. Some people consider phone calls more personal, so these can be very effective.

-Send shout-outs on social media sites like Twitter or Facebook. Going online can combine the best of public praise and a personal contact.

-Create interactive thank you pages. These provide a more exciting and unique option than a traditional thank you note. Creativity is always appreciated!

-QR codes. These black-and-while graphics that look like bar codes can link people to a website using a smartphone.

NPT Jobs: For-Profit To Nonprofit: Making The Transition

Crossposted from NPT Jobs

It is common to see people from the for-profit world make jump to the nonprofit sector.  The ultimate goals of a nonprofit and a for-profit might be different, but their management styles have a lot in common.  That doesn't mean there aren't things that for-profit executives should keep in mind before switching their career paths.

Nonprofit hours aren't always the typical eight-hour workday.  "No big deal", you might be think, "I had to work overtime a lot at my last job."  We're talking about more than your normal overtime work here.  There are often special events like galas, telethons, or community service work that can extend to all hours of the day, including weekends.  Make sure to ask the kind of time commitment expected when you go in for an interview.

For-profit companies can have easy access to the things because of an abundance of money.  Nonprofits aren't the picture of poverty they are sometimes made out to be, but they do need to use the donor dollars they get effectively.  This can be a bit of an adjustment for employees who are used to having more resources at their disposal.  This might not be the case depending on the organization you choose to work for, but it's something to keep in mind.

There are other differences to consider when transitioning to the nonprofit sector, but these are the two biggest adaptations you will have to make.  Feel free to add your own experiences in the comments section below.

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.