Transparency: An Enduring Component of the Non-Profit World

by Robert I. Evans and Avrum D. Lapin The Jewish and non-Jewish media have offered various opinions and news reports about non-profits and their financial behaviors. After reading “Raising The Bar”, a provocative editorial in New York’s Jewish Week recently and a highlighted posting on eJewish Philanthropy (February 8th) we feel compelled to further discuss the importance of financial transparency. Today the “new normal” demands that the philanthropic world respond to contemporary measures that serve to protect donors and force non-profits to diligently follow rules that are sometimes difficult to swallow. And these rules impact all Jewish non-profits including (or especially) houses of worship. One impending deadline is approaching that impacts non-profits and addresses financial transparency.... Continue Reading

Nonprofit Organizations Under the Microscope

What are not-for-profit organizations doing – or not doing – in the face of declining revenues, growing governance and disclosure expectations, and closer scrutiny from regulators and donors? Each year since 2003, Grant Thornton’s National Board Governance Survey for Not-for-Profit Organizations has examined the governance of not-for-profit organizations in order to learn how they are handling these increased demands. According to the 2009 survey, the vast majority of organizations have responded to these challenges by cutting costs, seeking new revenue streams, reducing endowment spending, enhancing their governance practices and reassessing their strategic plans. For example: Nearly nine in 10 (87%) respondents reduced expenses, while more than half (54%) reduced personnel. Boards... Continue Reading

Raising The Bar

an editorial from The Jewish Week ‘Transparency” and “good governance” are two popular phrases these days in regards to policies of nonprofit organizations, particularly in the aftermath of the Madoff scandal. It is worth noting a recommendation high on the list of the Jewish Funders Network’s recently issued guidelines for nonprofit and religious organizations seeking support from members of the JFN. It says that even religious organizations, which are not required by law to file 990 tax information reports, should perform an independent audit or financial review by a certified public accountant “regularly in a timely manner appropriate to the organization’s size and operations.” The guidelines add that “current financial statements should be made available to the donor upon request.” Such... Continue Reading

IRS Reminder: File 990 On Time to Preserve Status

The Internal Revenue Service today reminded tax-exempt organizations to make sure they file their annual information form on time. In 2010 the tax-exempt status of any non-profit that has not filed the required form in the last three years will be revoked. The Pension Protection Act of 2006 requires that non-profit organizations that do not file a required information form for three consecutive years automatically lose their Federal tax-exempt status. This requirement has been in effect since the beginning of 2007. A list of revoked organizations will be available to the public, as well as state charity and tax officials on the IRS.gov website. If an organization loses its exemption, it will need to reapply with the IRS to regain its tax-exempt status. Any income received between the revocation date... Continue Reading

Asking for Advice and Gaining Far More

by Doris Feinberg, CFRE There’s a saying in the world of philanthropy: “If you ask for money, you’ll get advice. But if you ask for advice, you’ll get money.” It sounds clever, but what does it really mean? And how can we use its good sense in our work supporting non-profit organizations? The key is in developing meaningful relationships with donors who become invested in the mission of the organization. Imagine the following scenarios: In the first, a solicitor visits a major donor prospect and shares with her the organization’s plans for a new center for abused children (or cardiac center, or independent school – you get the idea). The solicitor then asks for a gift. In the second, the solicitor is a trustee who knows the prospect personally. The trustee shares the organization’s... Continue Reading

Boards in Transition

Taking Stock of Accomplishments and Identifying Challenges Several weeks ago I received a request to meet with the executive director and the staff person who works with their donors and potential donors of a mid-size multi-service organization. The agency was in a period of transition, and according to the by-laws, they would be electing a new board of directors in the early part of the 2010. Many of the board members would be continuing to sit on the soon to be elected board and a number would be completing their volunteer service to the organization. They posed a series of questions focusing on building a sense of continuity into the board’s functioning and on not losing the momentum of the present board. How could the new members of the board be brought “up to speed” and quickly develop... Continue Reading

Placing The Cart Before The Horse

The Non-Profit Providing Services Prior to the Board of Directors is Functioning Many non-profit organizations are established to meet social, educational, health, or social welfare needs, among others, that are not being presently met by the public or private sectors. An individual or a group of people will get together to establish and implement the needed services. Often their commitment is based on their passion and they want very much to meet the pressing needs they have identified. In many cases, the establishment of a non-profit is tied to the actual needs of the founders and their families. People who deal with issues in their personal lives are closest to the challenges they are experiencing and many times they have been frustrated by the lack of responsiveness of the existing constellation... Continue Reading

9 Ways To Make Sure You Match Grant Criteria

Although grants can appear to be a limitless source of funding just waiting to be tapped, the reality is that grantmaking organizations receive huge numbers of requests and need to make tough decisions about where to distribute their help. In her book “How to Say It: Grantwriting,” Deborah S. Koch recommends finding a grantmaker that is a good match for the project or organization requesting support. In fact, Koch reports that grantmakers consistently report that their rejection of a proposal comes because it is not a good match with their goals, preferences and limitations. Koch further suggests conducting research on a grantmaker to learn about its preferences. Look at: Does a grantmaker fund what it says it does? Does it fund organizations or projects like ours? For small and local family... Continue Reading

5 Ways to Establish Unquestionable Need

As anyone who has applied for or received grant funding can attest, there is no one magic formula to securing financial support, but there are certain methods that have proven to be successful. In the book “How to Say It: Grantwriting,” Deborah S. Koch offers certain guidelines that have stood up as basics in the quest for funding. For one thing, Koch argues, if you cannot establish that there is an unquestionable need for the work you propose to do, then the proposal ought to stop right there. Further: Clarify your issue. Your organization’s purpose is associated with an issue; it is the reason your organization exists. There is a substantial issue that you think needs extra attention. Demonstrate knowledge of the field. A reviewer must trust that your expression of need is accurate so the... Continue Reading

Strategic Thinking: Do You or Don’t You

Natasha Dresner writing in/on GIJP Blog: To Think or Not to Think Strategically: Is that even a Question?! Strategic thinking is different from strategic planning, but they’re interrelated and complementary. Some people think that it’s a “chicken and egg” thing – in other words, that you can start with either and it’ll promote the other. I believe that strategic thinking comes first – you focus on what matters most (e.g. performance, revenue sources, outside perception of the organization) and, via a meaningful dialogue among everyone in your organization, you then produce a high-level, bird’s-eye view of your situation. This, in turn, logically leads you into the more nitty-gritty strategic planning process to figure out the details, sequences, measurable outcomes, etc. Good... Continue Reading

Next Page »