from The New York Times: Lawmakers Seeking Cuts Look at Nonprofit Salaries State and federal officials are starting to take their knives to the pay of leaders of nonprofit groups they do business with to help share the pain of tighter budgets. ... On Capitol Hill, four senators this spring refused to approve a $425 million package of federal grants for the Boys & Girls Clubs of America after staff members looked at the organization’s tax forms as part of a routine vetting process and were surprised to learn that the organization paid its chief executive almost $1 million in 2008 - $510,774 in salary and bonus and $477,817 in retirement and other benefits. ... Another senator, Charles E. Grassley, Republican of Iowa, has told Treasury Secretary Timothy F. Geithner that he is … Continue Reading
IRS Extends Key Deadline for Small Charities
Small nonprofit organizations at risk of losing their tax-exempt status because they failed to file required returns for 2007, 2008 and 2009 can preserve their status by filing returns by Oct. 15, 2010, under a one-time relief program, the Internal Revenue Service announced yesterday. The IRS has posted on a special page of IRS.gov the names and last-known addresses of these at-risk organizations, along with guidance about how to come back into compliance. The organizations on the list have return due dates between May 17 and Oct. 15, 2010, but the IRS has no record that they filed the required returns for any of the past three years. “We are doing everything we can to help organizations comply with the law and keep their valuable tax exemption,” IRS Commissioner Doug Shulman said. “So … Continue Reading
Don’t Jeopardize your Reputation
from Joanne's Nonprofits Blog: How to Be Taken Seriously: Steps to Legitimacy for Nonprofits Ever wonder why your nonprofit is not taken seriously? Or why it seems such an uphill battle to raise funds for your good cause? Some people who start a new nonprofit think that good intentions are enough. But they aren't. A nonprofit is a type of business and must act like a legitimate organization to be trusted by supporters, donors, and even the people it seeks to serve. The Better Business Bureau helps legitimize charities through its Wise Giving Alliance, and it recently released the top reasons that charities fail to meet its standards. ... Here are the top reasons that 44% of the charities that the BBB asked to provide information during the last two years flunked its minimum standards. … Continue Reading
Securing the Future: The Video
An eight minute video on the new Strategic Plan of the Jewish Agency for Israel. … Continue Reading
Don’t Mess With Homeland Security
Homeland Security Scrutinizing New Nonprofits: What Can We Expect and How Can We Adjust by Shuey Fogel And the hits just keep on coming… Nonprofit organizations have yet another hurdle to cross when applying for tax-exempt status. A while back, a colleague of mine, a director of a nonprofit organization, applied for tax-exempt status in the United States. The IRS had questions for him, which was to be expected. What was not expected, however, was that after answering the IRS’ questions, his file was then forwarded to the Department of Homeland Security [DHS]. That’s right, the U.S. Government Department that oversees (no pun intended) counter-terrorism, border security, disaster response, and immigration is also an integral part of the tax-exempt approval process. Why is the … Continue Reading
Medicorcity and Nonprofit Boards
from Harvard Business Review: A Nonprofit Board or a Group of Dead Fish? What some board members tell me, when pushed, is that they tolerate things on a nonprofit board that they wouldn't stand for in their day jobs. The boards don't ensure that the organization has a sound strategy, they tolerate mediocrity in management, they don't hold the organization accountable for results, and they don't ensure that resources are adequate to accomplish goals. The president of a very large community foundation went so far as to tell me that "the overwhelming majority of boards in this region are broken." He was characterizing the governance of more than 7,000 nonprofits. Why is this? Nonprofit organizations are tackling critically important issues ... They have smart board members who care about these … Continue Reading
Tainted Donors
from The Nonprofit Quarterly: When a Donor Becomes Tainted "How should a nonprofit react when a benefactor becomes embroiled in scandal?" What would and should prompt a nonprofit to return a donation that has been accepted in good faith? This article considers the forces that prompt nonprofits to keep, reject, or compromise on a gift. It walks your organization through ways to sort through the “taintedness” of a donor and the potential forces that influence the decision to (1) keep a donor’s money and name on a building;? (2) return the donation and remove the name;? or (3) adopt a compromise position. Ultimately, the article helps your organization weigh the factors and determine the most appropriate outcome for the “tainted donor” scenario you face. … Continue Reading
Don’t Throw Away Your Tax Exempt Status
A crucial filing deadline of May 17 is looming for many tax-exempt organizations that are required by law to file their Form 990 with the Internal Revenue Service or risk having their federal tax-exempt status revoked. The Pension Protection Act of 2006 mandates that all non-profit organizations, other than churches and church related organizations, must file an information form with the IRS. This requirement has been in effect since the beginning of 2007, which made 2009 the third consecutive year under the new law. Any organization that fails to file for three consecutive years automatically loses its federal tax-exempt status. Form 990-series information returns are due on the 15th day of the fifth month after an organization’s fiscal year ends. Many organizations use the calendar year … Continue Reading
Privacy Does Matter
Charities owe it to their supporters to think very carefully about what personal information they collect from donors, how long they keep the data, and how best to protect it, from NTEN, The Nonprofit Technology Network: The Questions Every Nonprofit Should Ask About Sensitive Data Charitable business transactions aren't about buying or receiving, they're about "giving". There is no tangible need compelling donors to give to nonprofits. Additionally, donors tend to make personal investments - whether that be in time or money - into a charity's mission, so the relationship between the donor and charity is a far more personal one that the consumer/vendor relationship. It is for these reasons that nonprofits need to make a special effort to ensure sensitive donor data is protected from … Continue Reading
Privacy Risk is Real
Highlights from recent media coverage of privacy-related incidents and trends shows increased risk for the nonprofit sector related to privacy. Many nonprofit leaders aren't prepared to deal with this issue and that could mean dire consequences should the proper safeguards not be in place and a breach or theft occur. from NTEN, the Nonprofit Technology Network: Calling All Nonprofits: Its Time for a Privacy Upgrade More and more, nonprofits rely on technology to fulfill our missions. We connect with members using e-mail and social networking, carry out research on search engines and Web sites, and use online services to purchase supplies and produce and store documents. And our members also rely on technology to take part, booking reminders in online calendars or using GPS-enabled cell … Continue Reading
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