Overseas Funding and the IRS

As a past director of an American friends of organization, I know questions often arise as to how to stay on the correct side of IRS regulations and still support the overseas entity. Here’s a pretty straight-forward q. and a. from one law firm where nonprofit law is one of its practice areas. Relationship of a Domestic Charity Organization to Certain Charitable Foreign Activities Can a domestic charity, as an IRC Section 501(c)(3) tax-exempt organization, fund the activities of national charity offices and other foreign projects in such a way that its exempt status is not jeopardized and donor deductibility is fully preserved, without the domestic charity exercising legal control over such organizations or projects? The short answer is “yes.” [Translate] Bookmark:  Read More →

Cheap, Fast and Good

from frogloop: Cheap, Fast, and Good. Can Nonprofits have them All? When a nonprofit organization is beginning the process of doing a software implementation (such as a new website, or a new CRM or donation management product,) it is often unaware of the things that might underly whether such a project will succeed, how long it will take, and how much it will cost. Since nonprofits focus on their mission, and not software projects, that is an unknown to them, and understandably so. In software development or implementation projects, this triangle is often talked about. Software projects can be fast (that is, done quickly), done well, and/or cheap. But you only get to pick two of those. A project can be good, and cheap, but it won’t be done quickly. It can be fast and cheap, but it won’t... Continue Reading

Engaging Outside Expertise: Do We Really Need A Consultant?

It is very fashionable today to engage an organizational consultant to assist with different issues and challenges faced by non-profit organizations. How does an organization know when a consultant is needed and how is a consultant selected? A non-profit agency can function very effectively and efficiently and decide to use a consultant to deal with one of a number of issues including strategic planning; campaign planning; the marketing program; staff training; board development; evaluating programs; and generally reviewing the function of the organization among others. How and when does the leadership of the organization make the decision to engage an outside consultant? It is not necessarily a straightforward question and sometimes answering this question is harder than engaging the consultant. ... Continue Reading

Could e-Services Be the Way for Your Charity?

Charities often don’t invest in new technology and online services because of the cost, but software as a service (SaaS) could be the answer. by Patrick Nash Charity websites are big business. Growing an online presence is critical – for fundraising, public relations, marketing and much more. Digital marketing managers command good salaries and there are armies of consultants and agencies. The competition for charity website awards is intense. But despite all this, I would argue that the third sector is, in most cases, behind the curve of the e-service revolution. I’m not sure that many charities know what e-services are and if they do, many reject the notion that their charities service users will access their services online. Charities provide a wide range of services but for the purpose... Continue Reading

Performance Measurement: Put a Stake in the Ground

by Andrew Wolk If you are a nonprofit leader operating in today’s hardscrabble environment, you’re undoubtedly spending an exceptional (and unacceptable) amount of time looking for support and fiercely competing for shrinking philanthropic dollars. No matter how good your program is, you may be one of many who are only a few months shy of having to fold your tent. So the one thing you probably don’t want to hear is what may sound like cold businessspeak: take time, now, to gather and dive more deeply into hard data. Get better at measuring your performance. Business discipline for nonprofits is not an oxymoron. Better measurement can help, not hinder, your mission. It’s a key to your success, perhaps even your survival. Contrary to the fears of some, it doesn’t have to... Continue Reading

The 21st Century Nonprofit: Managing in the Age of Governance

In the nonprofit sector, there is increasing emphasis on governance reform. The Foundation Center’s second edition of The 21st Century Nonprofit: Managing in the Age of Governance explores key concepts – accountability, transparency, and responsibility – at the heart of effective governance and looks at the main challenges facing directors and managers of nonprofit organizations today. “This new edition paints a portrait of the leadership of nonprofit organizations at a time when the driving force behind change is the need for sound governance,” said author Paul Firstenberg. “It is largely about our evolving expectations of nonprofit management, and the forces driving change.” The 21st Century Nonprofit opens with an examination of the pivotal role played by... Continue Reading

Using Mission, Vision and Values to Inspire Volunteer Leadership for Your Organization

by Kay Sprinkel Grace, CFRE As philanthropy matures globally there is an increased desire on the part of organizations in all locations to increase the number and commitment of volunteer leaders involved in fund raising, advocacy and other activities that will benefit the organization and the community. Whether the organization is volunteer-run and in need of more volunteers, or staff-run and wanting to engage community people in its programs, the goal is the same – to find ways to effectively recruit, enlist and continually inspire volunteers. The three critical factors that attract, inspire and continually motivate volunteers are already at the heart of all successful nonprofits – mission, vision and values. Working as both a volunteer and a professional with a wide variety of organizations,... Continue Reading

A Reason to Focus on Gifts and Donors

from GuideStar: Are There Easy Ways to Reduce Donor Attrition Rates? Today, losing donors has special urgency because more and more organizations are struggling to acquire new donors. Response rates are down exactly at a time when paper and postage costs keep climbing. Your organization may also be facing sharp drops in giving from major donors who have taken a beating in the stock market. Every donor you lose – no matter at what giving level – creates more financial instability for your organization. Put positively, increasing the loyalty of your donors produces huge benefits. The longer a donor keeps giving to you, the more likely it is that you will receive a major gift—often because that individual receives a windfall (or his or her children finish college). Those donors who stay with... Continue Reading

Dos and Don’ts for Nonprofit Credit Card Compliance

a guest post by Douglas Schoenberg Payment Card Industry (PCI) Compliance refers to a set of security standards for protecting cardholder data. Here are some basic Dos & Don’ts for any organization that is accepting (or considering accepting) credit card payments. Don’ts Don’t think PCI doesn’t apply to you – Most non-profits process fewer than 20,000 transactions per year and are thus considered Level 4 Merchants. Currently this means that certifying PCI-compliance is not mandatory, however they are still responsible for the security of cardholder data and still subject to fines if the data is breached. Don’t ever keep account verification data – This includes the 3 or 4 digit CVV security code on the card, PIN #s or data stored on the magnetic stripe... Continue Reading

Ten Practical Principles for Raising Funds for Social Ventures

by Rebecca Caspi 1. Find your focus – turn that big idea into a very specific concept or set of concepts. Think “bite-size” when explaining your passions to others (at least in that first encounter). Beware of jargon! 2. Figure out who your real prospects are. Time is your most valued resource; spend it in the places you are most likely to succeed. Forego irrelevant or unlikely donor sources. 3. Know what you need. What exactly is it you need to get funded? Don’t forget to include your overhead costs (though sometimes it’s OK to sell a loss-leader product). 4. Treat your investors like partners – tell them the truth about how much support you really need. Don’t ask for too little money. 5. Trite but true, people give to people. In the minds of your funders, you “are” the product.... Continue Reading

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