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#nonprofit
Creating A Start-Up Nonprofit Isn’t Easy
Dec 20th
If you were ever thinking of starting your own nonprofit, take a step back: It's not as easy as it sounds.
In a piece written for The Huffington Post, Marty Zwilling, a start-up expert, explains the complications of starting your own nonprofit. He explains that although most people looking to create a start-up company see nonprofits as the easy route to success, there's a lot that goes into the process. This includes a healthy business model, which was recently outlined in an article on The NonProfit Times website. A nonprofit still has to make money on everything it sells in order to maintain its operating expenses. This is true even if it relies totally on donations.
All this is not to say that you shouldn't try to make your own nonprofit. You just need to be aware of some of the challenges that come with it. Zwelling listed five reasons creating a start-up nonprofit can be a challenge. Here are a few I found most compelling:
In a piece written for The Huffington Post, Marty Zwilling, a start-up expert, explains the complications of starting your own nonprofit. He explains that although most people looking to create a start-up company see nonprofits as the easy route to success, there's a lot that goes into the process. This includes a healthy business model, which was recently outlined in an article on The NonProfit Times website. A nonprofit still has to make money on everything it sells in order to maintain its operating expenses. This is true even if it relies totally on donations.
All this is not to say that you shouldn't try to make your own nonprofit. You just need to be aware of some of the challenges that come with it. Zwelling listed five reasons creating a start-up nonprofit can be a challenge. Here are a few I found most compelling:
- You know that 501(c) form you have to fill out to become tax-exempt? It requires a lot more than just filling out a form, and it can take a long time to be approved. The form has to be accompanied with a $850 fee, and it can take as long as two years to completely finish.
- Start-ups require willing investors, and it can be a challenge to get them interested in a nonprofit since it will be hard to guarantee an excellent return on investment.
- Private start-up companies don't have to disclose their salaries or spending practices to anyone other than the IRS. Nonprofits, on the otherhand, undergo trememndous public scrutiny.
Christmas Donation
Nov 8th
Nonprofit Christmas Donation
Christmas is that time of year when everyone’s thoughts turn to giving to others and especially a Christmas donation. 33% of all donations happen in the month of December, is your nonprofit poised and ready with fundraising programs and the tools to raise a third of your funding for the year?
Christmas is a special time of year not only for what the season represents but because people’s hearts are open to giving to others instead of themselves. A Christmas donation makes every heart glad from the donor to the recipient that is impacted. The world is one step closer to being a better place just because of one Christmas donation.
Christmas Donation Readiness
The nonprofit has a level of responsibility to be ready to receive a Christmas donation and especially end of the year donations. First people have to know the nonprofit even exists. Without public awareness for your nonprofit, there will be no donations. Once someone learns about your nonprofit, the nonprofit needs to have several ways an individual or business can contribute. Of course people need to be able to make a Christmas donation by the traditional means of check, credit card, or cash. In addition, people might like to contribute in non-traditional ways.
Christmas Donation Alternatives
Having several fundraising programs in place make it easy for someone who wants to contribute a Christmas donation, to do so with several options. For example, Charity Choice allows a person to buy gift cards and give them to others as Christmas gifts. This way the donor can give the gift of charity benefiting both the nonprofit, the recipient of the gift and the person they give the Christmas gift to.
Another way someone could contribute a donation to a nonprofit is by contributing money or goods toward something the nonprofit needs. For example, say the nonprofit needed a website, business cards, and a brochure. The donor could make a Christmas donation by paying for the design and printing of those materials. This helps a donor see the value of the donation by contributing tangible items.
I believe people genuinely want to give donations to nonprofit, especially those that can prove the worth of what they do. However, the majority of nonprofits do not do a great job of engaging the donor and allowing them to be a part. Likewise, it is confusing to many donors exactly how their donation will be used to accomplish the nonprofit’s mission statement. Many donors would rather give something tangible, gift cards or donations toward a tool the nonprofit can use is a way the nonprofit can give the donor hard evidence on how there donation will be used.
Christmas Donation Determination
With around 33% of yearly donations happening around December and Christmas donation, the nonprofit would be wise to give concerted effort to having as many creative ways someone could give both to and through the nonprofit. Whether someone wanted to give a donation, a gift card that benefited the nonprofit, or possibly even unused cell phone through the Trade2Save program, the nonprofit should be ready.
The Christmas donation time is not a time for the nonprofit to go on vacation, but instead engage donors with gusto. Even if that means standing in front of grocery stores selling $5 gift cards for others to give as presents, stay focused. Especially at Christmas, people want to give but it is up to the nonprofit and its volunteers to be visible and ready to accept the donations. For more ideas to engage donors in a Christmas donation, see the Fundraising Programs page.
A Nonprofit For Miniature Horses
Nov 4th
You've probably heard of people bringing dogs to visit senior citizens and hospital patients, but what about horses? If you're wondering how they get these animals into the rooms to begin with, I have two words for you: Miniature horses.
Mini's Making Miracles, which is the subject of a story in The York Dispatch, is a nonprofit based in York Haven, PA, that brings young miniature horses to local nursing homes and hospitals to help patients. For the founders, Kevin and Vickie Tyler, the organization represents a dream of theirs to turn their love of volunteerism and mini horses into a nonprofit that can improve the morale of patients.
According to the Dispatch, the Tylers spend between $3,000 and $5,000 every month on feed, transportation, vet bills, and insurance costs. It's a hefty salary for a small organization, but Kevin Tyler says he is actively searching for sponsors and volunteers to help offset costs. More information can be found about Mini's Making Miracles on their website.
Mini's Making Miracles, which is the subject of a story in The York Dispatch, is a nonprofit based in York Haven, PA, that brings young miniature horses to local nursing homes and hospitals to help patients. For the founders, Kevin and Vickie Tyler, the organization represents a dream of theirs to turn their love of volunteerism and mini horses into a nonprofit that can improve the morale of patients.
According to the Dispatch, the Tylers spend between $3,000 and $5,000 every month on feed, transportation, vet bills, and insurance costs. It's a hefty salary for a small organization, but Kevin Tyler says he is actively searching for sponsors and volunteers to help offset costs. More information can be found about Mini's Making Miracles on their website.
Fundraising Help
Oct 6th
Fundraising Help Success
As stated many times in my fundraising help articles, fundraising is vital to a nonprofit’s success. There are hundreds of different ways to find funding for a nonprofit however some are better and quicker than others.
There is no debate, the attrition rate in new nonprofits is high. Many times the difference in a nonprofit having the time to succeed is grounded in successful fundraising. Simple Nonprofit.com helps thousands of nonprofits each week around the world learn how to easily start, fund and run a successful nonprofit. However, it is also important that those nonprofits also have success in fundraising so they can move onto success with their nonprofit efforts. That why we will concentrate our efforts over the next several months in fundraising help that anyone can do.
Fundraising Help Activities
Fundraising for a nonprofit can be packaged in various ways including but not limited to online fundraising, fundraising events, grant writing and fundraising through businesses and individuals. None of these ways are self-sufficient on their own however, used together they form a stable fundraising strategy for a nonprofit. Learning how to combine these fundraising help methods together in a winning combination is a powerful resource and can give your nonprofit the financial ability to reach its charitable purpose.
Fundraising Help Woes
No doubt about it, fundraising for a nonprofit can be tough but with the right focused fundraising help, anyone and any nonprofit can raise the funding they need to fulfill their charitable activities. Getting a little fundraising help can keep a nonprofit from trying to “reinvent the wheel.” What I mean by that is nonprofits have been fundraising since the beginning of time. Likewise, there are easier ways of fundraising than others. Many who start nonprofits forget to get fundraising help by consulting with those who know the easier and better ways to fundraise.
Relationship Fundraising Help
The best fundraising help comes down to one principle, good relationship building equals good funding. When a person is more interested in building relationships with potential donors than they are just getting their money, fundraising success comes much easier. In addition, the relationships built are much more valuable than the money ever is. The chances are, the genuine relationships one builds could lead them to funding they could never imagine.
Fundraising Help Resources
The good news about fundraising is there is more ways to fundraise today than there ever were before. Armed with only a few resources, a nonprofit can get serious about fundraising and have several online fundraising solutions started in a matter of days. Those can give a nonprofit a quick infusion of funds while they are organizing other types of fundraising activities.
More Fundraising Help
Once a nonprofit gets a few online fundraising help efforts up and running, attention should turn to fundraising activities that can bring in local donations. Immediately the nonprofit should work on its branding such as logo, business cards, brochures and web site. Image is an important part of a nonprofit’s positive and professional image to donors. Equipped with great looking marketing materials a great first fundraising activity could be a dinner party, a spaghetti dinner or even a benefit concert. A nonprofit’s first fundraisers should focus on building relationships, handing out marketing materials and getting the word out about the nonprofit. While donations are good, the more people that know about the nonprofit and can get others involved the easier the fundraising will be in the future.
For information on how to start a nonprofit this link, Start a nonprofit may be helpful. For more fundraising help to learn to become an expert fundraiser take a look at the Fundraising Expert program here on this web site.
topic: fundraising help
The realities of working in a nonprofit organization
Jan 25th
I love working in the nonprofit sector!! There are many well paid jobs and career opportunities in nonprofit organizations. However…there are certain realities of working in nonprofit organizations that employees must understand in order to sustain a career in the nonprofit sector.
The reality is the majority of nonprofits operate with budgets less than $500k; they are small businesses with limited resources. Even organizations that have $1mil or $2mil budgets have limited resources, especially when it comes to staff training and development. In last year’s Nonprofit Employment Trends survey we found that only 4% of nonprofits with less than $1mil have a human resource manager. The majority of organizations have an executive director or other senior staff member who manages the human resources function in addition to their other responsibilities. We also found that the majority of nonprofits use current employees to staff new initiatives. This puts increased demands on employee time and less time for employee development.
These realities often conflict with the needs and wants of employees, especially younger workers. Younger workers often think and express “my boss needs to teach me, mentor me, develop me as a manger.” Case in point, Maria Walker’s article More than Just a Boss. Yeah, Maria’s tips are great to sustain younger employees longer than 12 months in an organization, but are these tips really realistic? Maybe 1 in a 100 organizations have a boss who truly mentors and develops their employees, but the realities of the current state of nonprofit organizations, prevent younger workers from having a boss like that. I am totally supportive of trying to change the way that nonprofits currently operate. In fact, I believe all nonprofits (and all companies for that matter) should operate like Southwest Airlines. Southwest is known for putting their employees first and as a result, their employees are happy workers! Many nonprofits are a long way from operating like Southwest, so in the meantime employees need to be flexible and find ways to thrive in the current realities of the workplace. Or, employees can purposefully seek out nonprofits that focus on employee development, of few of these organizations do exist!
One of the main ways that employees can thrive in their careers in the nonprofit sector is through tapping into personal and professional development opportunities outside of their organizations. In How to be a Nonprofit Rockstar, Rosetta and Trista explain 50 ways employees can seek out professional development opportunities, many of which are OUTSIDE of the walls of their own organization. Case in point, I would not be as successful as I am today if it wasn’t for all the professional development that I obtained outside of the workplace. These professional development opportunities included networking, blogging, graduate education, etc.
My theory of change in the workplace
From my experience, I believe there is a change continuum that exists in the workplace. The younger the person, the more they want and push for change. But this push for change often conflicts with experienced workers who are comfortable with how things are. Older workers might push for change but at a lower rate than younger workers. If younger workers are patient and wait it out for a couple of years, they can adapt and grow as the organizational environment around them adapts and grows.
What do you think? Do your experiences match up with the realities of the nonprofit workplace? Do you agree or disagree with my theory of change? I want to hear your thoughts.
Record Fundraising Levels Expected In Alaska
Jan 18th
Record levels of charitable organizations are getting involved in what is known as the 'Pick. Click. Give.' program which forms part of Alaskans' Permanent Fund Dividend or PFD application. The programs make it possible for recipients to donate part of their PFD to a variety of nonprofit groups. Alaskan residents receive an annual check based on oil-punted estates. As much as 386 nonprofit organizations are signed up to receive donations this year, a figure which is up by approximately 6% from the year before. Organizes of the fundraising drive have set a target of $1.5 million, a 50% increase over the previous year.
Many nonprofits stand to benefit
In 2010, about 9,500 of all Alaskans donated a part or all of their dividends as funding for various charitable organizations. The administrative expenditures related to the drive are being covered by the Rasmuson Foundation. Bearing in mind the vast range of charitable groups that are signed up to receive donations, donors are bound to find a cause that tugs a heart-string that they would be able to support with enthusiasm. When people go online to apply for their PFD, they will see the option to participate in the 'Pick. Click. Give' fundraising program.
Many nonprofits stand to benefit
In 2010, about 9,500 of all Alaskans donated a part or all of their dividends as funding for various charitable organizations. The administrative expenditures related to the drive are being covered by the Rasmuson Foundation. Bearing in mind the vast range of charitable groups that are signed up to receive donations, donors are bound to find a cause that tugs a heart-string that they would be able to support with enthusiasm. When people go online to apply for their PFD, they will see the option to participate in the 'Pick. Click. Give' fundraising program.
Nonprofits Need To Take Call To Action Over Estate Tax Changes
Dec 14th
In the turbulent times of tax restructuring nonprofits are the ones that could be hurt the most by some of the changes that are on the table. These new deals to extend the Bush era tax cuts or some variation of them stand the chance of having a significant financial impact on the donations that many nonprofits rely on to be able to do their good deeds.
Why does estate tax affect nonprofits?
Many nonprofits are funded through government grants and estate taxes are what contribute to those funds many times. With the proposed reductions in estate taxes to only 35% with higher exemption levels the funds, that are critical to many nonprofits success could be cut drastically. The result would be that the wealthiest of American’s would indirectly be taking away the support that is given to people of dire circumstances. A few of these groups are the unemployed, homeless, and single parents. Other groups that would find it more difficult to achieve their goal of helping others would be nonprofits that work towards new beginnings and medical advancements that will help everyone.
How does philanthropy play a role in estate taxes?
One of the first benefits to be threatened is the deductions and their benefits for philanthropists who wish to keep spreading good deeds after they have passed. Without nonprofit groups taking a stand for their passions they could risk losing the funds to continue their valuable work.
Every nonprofit who is concerned about their financial resources must take a stand. Make sure you contact your political representatives and let them know that the estate tax is a vital part of your potential and must remain at a reasonable rate. Don’t undercut your nonprofit’s potential because you didn’t fight against an unreasonably low estate tax.
Why does estate tax affect nonprofits?
Many nonprofits are funded through government grants and estate taxes are what contribute to those funds many times. With the proposed reductions in estate taxes to only 35% with higher exemption levels the funds, that are critical to many nonprofits success could be cut drastically. The result would be that the wealthiest of American’s would indirectly be taking away the support that is given to people of dire circumstances. A few of these groups are the unemployed, homeless, and single parents. Other groups that would find it more difficult to achieve their goal of helping others would be nonprofits that work towards new beginnings and medical advancements that will help everyone.
How does philanthropy play a role in estate taxes?
One of the first benefits to be threatened is the deductions and their benefits for philanthropists who wish to keep spreading good deeds after they have passed. Without nonprofit groups taking a stand for their passions they could risk losing the funds to continue their valuable work.
Every nonprofit who is concerned about their financial resources must take a stand. Make sure you contact your political representatives and let them know that the estate tax is a vital part of your potential and must remain at a reasonable rate. Don’t undercut your nonprofit’s potential because you didn’t fight against an unreasonably low estate tax.
Are you ready for the end of the year?
Dec 13th
Do you have the comparable compensation data the IRS requires for the top executives in your organization? Do you know if your employee salaries are in line with the nonprofit marketplace? The NonProfit Times 2010 Salary and Benefits Report provides the comparable compensation data nonprofit organizations need to satisfy IRS Form 990 requirements. The IRS requires nonprofit organizations to report the Compensation of Officers, Directors, Trustees, Key Employees, Highest Compensated Employees, and Independent Contractors on Part VII of Form 990 each year. Each nonprofit's Board of Directors must also indicate on Part VI, Section B of Form 990 if comparable data was used in the process of determining compensation for the organization's CEO, Executive Director and other key individuals. Each nonprofit's Board of Directors must also indicate on Part VI, Section B of Form 990 if comparable data was used in the process of determining compensation for the organization's CEO, Executive Director and other key individuals
The 2010 Nonprofit Organizations Salary and Benefits Report is the most comprehensive, data-rich and user friendly salary and benefits report for the nonprofit sector. Purchase it now and get the information that will make the IRS 990 form easier for your organization
The 2010 Nonprofit Organizations Salary and Benefits Report is the most comprehensive, data-rich and user friendly salary and benefits report for the nonprofit sector. Purchase it now and get the information that will make the IRS 990 form easier for your organization
I’ll be blogging the 2010 ARNOVA conference
Nov 16th
This week I’ll be blogging at the 2010 Association for Research on Nonprofit Organizations and Voluntary Action (ARNOVA) annual conference. I am excited about this opportunity to report on the latest research studies and emergent theories in the nonprofit/philanthropic sector.
ARNOVA’s adhoc social media committee (John Ronquillo, Lindsey McDougle, Debra Beck, Taylor Peyton Roberts, and I) have been hard at work this year trying promote social media within ARNOVA. We are opening the door…very slowly, since there is a strong culture of hesitation and concern about social media in the world of academia.
Our social media objectives are to:
- Build awareness of ARNOVA.
- Promote ARNOVA membership and the work of individual sections within ARNOVA.
- Highlight new research articles, briefs, and books by ARNOVA members.
- Market new ARNOVA initiatives.
We should be really called the adhoc marketing committee, because that is what we are really doing. Providing free marketing to the association. 
The adhoc social media committee will be hosting a colloquy to discuss the future direction of ARNOVA’s social media efforts. We’d like to ePlease share with us through twitter, facebook, or by commenting on this blog about how social media has impacted your interactions with ARNOVA. Our goal is to encourage the board to create a permanent social committee to support the work of ARNOVA.
Donors Ain’t Broke
Nov 1st
Who says the economy is in the tank? You’d never know it with all of the money pouring into the political campaigns. And, organizations all over the country are announcing massive campaigns, several eclipsing the $1 billion mark.
Capital campaign donations are fundraising’s luxury gifts. "In the hierarchy of fundraising, capital campaign gifts rank the highest because they usually have the highest monetary level of any gift any organization will receive, according to consultant Laura Fredricks.
The purpose is to raise a substantial amount of money during a specific time period so that the organization can achieve new heights," she wrote in her book, "The Ask: How to Ask Anyone for Any Amount for any Purpose."
A capital campaign gives donors a chance to boost the presence, stature and success of an organization and undertake bold, new projects. Now that the campaigns are almost over, here are 10 ways to push yours forward:
* The fundraising goals are ambitious.
* It asks people to make stretch gifts.
* It drives the entire focus and direction of the organization until the campaign goals are met.
* It coincides with and complements the organization's strategic plan.
* It includes all types of existing fundraising programs, such as annual, major and planned gift programs.
* It is well organized, with a beginning, middle and end.
* It causes the organization to expand its volunteer base.
* It serves as a means to get prospects and donors to give now.
* It is a highly cost-effective way to raise substantial money.
* It can create a positive change in the culture of the organization.
Capital campaign donations are fundraising’s luxury gifts. "In the hierarchy of fundraising, capital campaign gifts rank the highest because they usually have the highest monetary level of any gift any organization will receive, according to consultant Laura Fredricks.
The purpose is to raise a substantial amount of money during a specific time period so that the organization can achieve new heights," she wrote in her book, "The Ask: How to Ask Anyone for Any Amount for any Purpose."
A capital campaign gives donors a chance to boost the presence, stature and success of an organization and undertake bold, new projects. Now that the campaigns are almost over, here are 10 ways to push yours forward:
* The fundraising goals are ambitious.
* It asks people to make stretch gifts.
* It drives the entire focus and direction of the organization until the campaign goals are met.
* It coincides with and complements the organization's strategic plan.
* It includes all types of existing fundraising programs, such as annual, major and planned gift programs.
* It is well organized, with a beginning, middle and end.
* It causes the organization to expand its volunteer base.
* It serves as a means to get prospects and donors to give now.
* It is a highly cost-effective way to raise substantial money.
* It can create a positive change in the culture of the organization.
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