The Importance of Gift Acceptance Policies

Formal Gift Acceptance Policies Help Donors as well as Non-Profits by Robert I. Evans and Avrum D. Lapin If history is any indicator, the Internal Revenue Service will audit only about one percent of the returns that individual American taxpayers file. And while some of these audits are done at random, many result from donors who may try to over-value their non-cash charitable gifts. This leads us to an important and perhaps critical recommendation for every non-profit: all organizations should create and implement formal gift acceptance policies that address any and all possibilities. Non-profit leaders should review these guidelines annually and be prepared to strictly enforce the policies. In addition to making cash contributions, the IRS encourages individuals to donate items like clothing, food... Continue Reading

Updating Leveraging and Sustainability

On January 13, I wrote about a client from New York who was very involved in rights and entitlements, and I discussed how he had formed a partnership with a major hospital in Israel to develop a service to inform patients and their families about all their rights and their entitlements to services through the government, health maintenance organizations, and other providers. Based on this article a frequent reader to eJewishPhilanthropy.com made a connection between two Israeli hi-tech business people-philanthropists who were involved in setting up a comprehensive website focused on rights and entitlements and me. Following an initial phone conversation I met with them and then my client spoke with them. These conversations opened the door to possible collaboration and joining of efforts. My client... Continue Reading

Breaking the Ice: Cold Calling Does Not Do It!

In working with one of my clients over the last few weeks an issue was raised about how to reach out to potential donors. There was a discussion about 1) what strategy should be used when reaching out to these people to approach them for a donation, and 2) who should make the first contact? I would like to explore these questions and provide some suggestions for reaching out to people who do not have a relationship with the organization. Often the executive, the financial resource development professional or a volunteer fundraiser in an organization will receive the name of a person and be told that he/she is interested in the population that the agency serves. It will be suggested that one of these people call the potential donor and speak to them about a donation. Another well known scenario is... Continue Reading

The Top Ten Skills You Want in Your MarCom Professional Now

With increasing frequency, nonprofit CEOs ask me what skills they should look for in hiring a marketing and communications (MarCom) professional today. CEOs understand that while certain skills and experience are a constant, the advent of the technology revolution requires mastery of an entirely new skill set and the facility to quickly adopt and smartly apply the next important emerging digital applications. Determining which skills your nonprofit will benefit from most, depends to some degree on your organization’s primary function (fundraising; relief work; education; etc.), on its size and organizational structure (management reporting ladder; key functional areas; etc.) and a clear understanding of what you want to accomplish with your marketing and communications efforts. There are, however... 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

Do the Old Rules Still Apply?

The old formula, developed by experts at direct response press advertising many years ago, is still a good starting point for copy structure. This is known as ‘AIDCA’ (though usually pronounced without the C) – attention, interest, desire, conviction, action. Here’s the thinking behind it. You won’t have any readers unless you gain their attention. Attention on its own won’t get a response. You have to move quickly on by stimulating the reader’s interest. However strongly interested, the reader won’t act unless he or she really wants. You have to convert interest in the subject matter into desire to do something about it. And a belief that the donor really can do something about it. Even this is not enough to secure a donation. Before parting with any money the skeptical reader... Continue Reading

Board Members as Pro-Bono Consultants

Board Members Who Function as Pro-Bono Consultants May Not Necessarily Be The Best Way To Go I was approached a short time ago by a director of a non-profit organization who wanted to know if it was appropriate to avail herself of the pro-bono services of her board members who were lawyers, accountants, financial advisors and those with other skills that can cost the agency a lot of money during the course of a budget year. There are implications for the director, the staff and the board when pro-bono services are utilized. Prior to making the decision to use the services of these, and other professionals, who are on the board of directors, there are a number of issues that should be carefully considered. The role of a board member who is a professional in her own field and who has expertise in a particular... Continue Reading

Solicitations That Challenge

When I Solicit Donors for a Bequest It Doesn’t Mean I Want Them to Pass On I am often asked how do non-profit organizations set up endowment funds and solicit donors for bequests. Although the two are not necessarily related frequently donors connect setting up an endowment with their passing on. Often endowment funds are set up when organizations or donors want to arrange to use the earned interest and not the principal of a contribution. Committed donors bequeath funds to organizations and sometimes stipulate the funds should be invested and the interest should be used either for the annual budget or for a specific program in the agency. When the donors make a request for the funds to be invested and for the interest to be used by the non-profit then the agency has to set up a vehicle to... Continue Reading

Be Jewish Calendar Conscious

Be Jewish Calendar Conscious: It’s time to get working on Holiday appeals by Robert I. Evans and Avrum D. Lapin The holidays are never on time . . . either too early or too late . . . or so the old line goes. With the first six weeks of 2010 under our belts, most people have settled into the new decade and a “fresh” calendar. Holidays come and go, the kids are back in school, and everyone is now into “the new normal” that allows for different perspectives on the economy, fundraising and the new ways of the world. Whatever you may think about what the next 6-12 months will bring, deadlines and milestones still present themselves! Take out your Jewish calendar now and be advised: important dates may be just around the corner and they require strategic thinking. This year, the first Seder is... Continue Reading

Fundraising Professional or Fundraising Consultant

Hiring a Fundraising Professional or Engaging a Fundraising Consultant: What to Do and When to Do It? I receive a number of inquiries each month from directors of non-profit organizations and from volunteer leaders concerning how to increase the number and size of contributions they receive. Often the questions focus on whether they should hire a half-time or full-time fundraising professional for the agency or whether they should engage a consultant to assist them in thinking through a strategy and specific actions they should take to increase the donations they receive during the year. Through my experiences I have found that the organization’s professional and volunteer leadership has to go through a planning process in order to decide if and when a professional fundraiser and/or a fundraising... Continue Reading

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