The Philanthropist Guardian

From The Chronicle of Philanthropy

2010-08-19T10:04:00.000-07:00

40% of Charities Faced Fund-Raising Losses in First Five Months of 2010, New Study Finds

By Holly Hall

Donations to many charities have been sluggish in the first five months of the year, according to a new study of more than 7,000 nonprofit organizations. Forty percent of charities reported a decline in giving from January through May, compared with the same period in 2009, according to GuideStar, a Web site that maintains financial information about charitable organizations. Eight percent of organizations said that they were “in imminent danger of closing due to financial reasons.”

At the same time, 63 percent of nonprofits said that demand for services had increased in the first five months of the year.

Fewer Donors
The survey included organizations of all sizes. Fifty-six percent were small, with annual budgets of less than $1-million, a quarter had budgets of $1-million to $4.9-million, and another 16 percent had budgets of $5-million or more.

Charities said the biggest reason donations dropped was that fewer people were giving, with 67 percent citing that concern. Two-thirds of organizations also said that the size of average gifts donated was smaller than in the past. Forty percent of charities said that both corporate and foundation grants were smaller than they had been in 2009, while some groups reported that grants from foundations were discontinued (22 percent), government grants were smaller (20 percent) or discontinued (10 percent), or corporate grants were discontinued (19 percent).

Nearly 30 percent of nonprofits said that their 2010 budgets were smaller than last year’s.

Among those organizations, 58 percent said they had cut back programs or services to achieve savings. Half of the groups froze salaries, while 38 percent said they did not do any new hiring, 23 percent reduced employee benefits, and 21 percent reduced salaries. Sixteen percent of the charities reduced operating hours, while 12 percent restructured or merged.

10 Rules For Ephilanthropy

2010-08-08T07:34:00.000-07:00

From the National Resource Center

Ten Rules of e-Philanthropy

If the events of September 11th proved anything, it is that fundraising via the Internet has come of age. Witness the incredible success of online fundraising by many of the nation's top relief agencies.

Now, nonprofits across America are saying not if they will adopt an online fundraising presence, but how fast they can tap into this new technology in ways that meet an agency's needs but stay within their budget constraints. Here are the Ten Rules of ePhilanthropy that Every Nonprofit Should Know.

1. Don't become invisible.

If you build it, they won't just come. Building an online brand is just as important and just as difficult as building an off-line brand.

2. It takes "know how" and vision.

Your organization's Web site is a marketing and fundraising tool, not a technology tool. Fundraisers and marketers need to be driving the content, not the Web developer.

3. It's all about the donor.

Put the Donor First! Know your contributors, let them get to know you.

4. Keep savvy donors; stay fresh & current.

Make online giving enjoyable and easy. Give the donor options. Use the latest technology. Show your donor how their funds are being used.

5. Integrate into e-philanthropy everything you do.

Your Web site alone will do nothing. Every activity should invite constituents to support your work. Actively engage your potential supports and then ask for support.

6. Don't trade your mission for a shopping mall.

Many nonprofit Web sites fail to emphasize mission, instead turning themselves into online shopping malls, without even knowing why.

7. Ethics, privacy and security are not buzzwords.

Many donors are just now deciding to make their first online contribution. They will expect that your organization maintains the highest standards of ethics, privacy and security.

8. It takes the Internet to build a community.

Many nonprofits (particularly smaller ones) lack the resources to communicate effectively. The Internet offers the opportunity to cost effectively build a community of supporters.

For the rest of the tips go to Compassion Capital Fund newsletter

Charity Navigator Can Help the Ephilanthropist

2010-01-25T09:10:00.000-08:00

Check out Charity Navigator before deciding where to send your donations. Avoid the scams and use the services like those provided by Charity Navigator, which is described as, "America's premier independent charity evaluator, works to advance a more efficient and responsive philanthropic marketplace by evaluating the financial health of over 5,400 of America's largest charities."

The Overview of Charity Navigator states, that they were "Founded in 2001, Charity Navigator has become the nation's largest and most-utilized evaluator of charities. In our quest to help donors, our team of professional analysts has examined tens of thousands of non-profit financial documents. As a result, we know as much about the true fiscal operations of charities as anyone. We've used this knowledge to develop an unbiased, objective, numbers-based rating system to assess the financial health of over 5,000 of America's best-known charities.

Specifically, Charity Navigator's rating system examines two broad areas of a charity's financial health -- how responsibly it functions day to day as well as how well positioned it is to sustain its programs over time. Each charity is then awarded an overall rating, ranging from zero to four stars. To help donors avoid becoming victims of mailing-list appeals, each charity's commitment to keeping donors' personal information confidential is assessed. The site is easily navigable by charity name, location or type of activity and also features opinion pieces by Charity Navigator experts, donation tips, and top-10 and bottom-10 lists which rank efficient and inefficient organizations in a number of categories.

Last year alone, more than four million donors used the site that TIME Magazine called "One of America's 50 Coolest Websites for 2006." Additionally, the site is a two-time Forbes award winner for "Best of the Web," was selected by Reader's Digest as one of the "100 Best Things about America," and was chosen by PC World as "One of America's Top Websites." In 2007, BusinessWeek inducted Charity Navigator into its "Philanthropy Hall of Fame" for "revolutionizing the process of giving." Charity Navigator was singled out in 2006, 2007 and 2008 by Kiplinger's Financial Magazine as "One of the Best Services to Make Life Easier" and Esquire Magazine recently told its readers that using our service was one of "41 Ways to Save the World."

Take Five Minutes Now and Generate Additional Revenue All Year

2009-12-15T17:20:00.000-08:00

by Freelanthropy

WHAT IF you could remind donors every day about the importance of your organization?

WHAT IF donors thought of your brand every time they went online?

WHAT IF donors contributed year-round, raising additional revenue outside of your big events?

Freelanthropy leverages Yahoo Search with your brand to keep you connected with supporters while they generate money for you every time they go online. And your branded browser toolbar keeps you connected and always just a click away.

Donors have more than a million choices of causes to support. Make sure yours remains top-of-mind – every day.

All free for you and your supporters.

Start now http://www.imakenews.com/eletra/gow.cfm?z=ephilanthropy%2C274233%2Cb9kth2Ww%2C1137401%2Cb9Lgdjb or request info.

The Joy of Volunteering in Your Local Community

2009-10-30T22:03:00.000-07:00

By Andrew Chatham

Volunteering is a great way to give back to your community and there are many opportunities to do something that is actually enjoyable. You just need to find something that interests you and focus on helping someone else out in that capacity. Check your local listings or websites that focus on volunteering in your community to find an appropriate program.

If you like working with kids and want to help them improve certain skills or help them with their homework, sign up to tutor a student at the local middle school or high school. If you like cooking or working in the kitchen, volunteer to be a cook at one of the soup kitchens near you. And if you like fundraising and marketing, you can join any non-profit organization to help them raise money and promote various events.

Volunteering can bring joy to your life in unexpected ways. After spending a bunch of time with another individual, seeing improved results with whatever you're doing usually will make you content that you made a difference in someone else's life. This is a big deal since many people do not take the time to give some of their personal time to volunteering.

For those of you who are looking for other benefits from volunteering, many organized programs have mixers or get-togethers for the volunteers so that they can get to know each other better. It may end up working out to be a great way to meet a potential mate. Think of it as another good singles scene in your area.

Andrew Chatham has been writing articles about volunteering for the past three years. He also likes to write about medical-related topics such as how to deal with cystic acne and what types of pimple treatment to use for effective results. Andrew Chatham
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Twitter For Nonprofits and Fundraising

2009-10-30T21:57:00.000-07:00

By Marc Pitman

Twitter is a great free tool that can transform your approach to fundraising. And in a time of economic uncertainty, a free tool is a welcome help!

Twitter: A Brief Introduction

At its most basic level, Twitter is called "microblogging." Users are allowed 140 characters to answer the main question on the Twitter home page: "What are you doing now?" When you first start to tweet, it feels really odd. Why would you share what you're eating? Why would anyone care? It seems like it is only useful for narcissistic people or those trying to waste time. But people do. And the conversations get even better when you start answering a question like "What are you focusing on?"

People use Twitter to ask questions, follow people that are interesting, promote links to various websites, share news stories, to coordinate events during conferences. Forbes reports that people are even using Twitter to provide real-time disaster relief information.

Twitter for Fundraising

From a fundraising perspective, Twitter is an amazing way to engage donors and potential donors. One of the hardest things to do as a fundraiser is to maintain relationships. Twitter allows you to do that...right in the midst of your normal every day routine.

You can meet people all over the world that might be interested in your cause.

You can hear what people are really thinking about a wide variety of issues.

You can follow other fundraisers and get great real-time advice.

You can even promote traffic to your website or those of your friends. Better still, if you can make your comments effectively understood in 140 characters, think about how all your fundraising writing will improve! You are forced to be succinct and understandable!

Tools like TwitterFeed automatically broadcast your blog posts through your Twitter account. Then your blog posts reach both those subscribed to your RSS feed and those following you on Twitter. And if anyone of them like it, they may "retweet" it, broadcasting to the people that follow them.

Twitter's Not Just for Broadcasting

Be warned: Twitter is not just a tool to push your message out. The September 2008 BusinessWeek special report had a warning from H&R Block's experience: Amy Worley, who manages [H&R] Block's Twitter program, had to alter her approach. "I went in thinking Twitter was a free way to push our message out," she says. "Big mistake. We learned to listen. We started winning once we let people decide on their own about our services."

For people using Twitter, is has to be a two-way conversation. That is the genius of Twitter: you can form your very own "listening post" and hear what others are saying about the issues that affect your mission. This can help you generate ideas and tell your story better.

What About Fundraising with Twitter

Listening is one thing, but can Twitter really be used for fundraising?
Social media expert, Beth Kanter writes that people will not make a gift just because you tweet. Neither will they give because you start a blog or create a cause on. But, she points to a blog post by Avi Kaplan reporting that a Twitter idea called "Tweetsgiving" raised over $11,000 in just 48 hours!

Kaplan himself gives some great measurements on how "Tweetsgiving" spread around the world. What would it cost your organization to get over 100 press and blogger mentions in over 100 countries using traditional media? On Twitter, it was free.

But NTEN (the Nonprofit Technology Network) reminds us that Twitter isn't the point. Relationships are the point. Relationships have always been the point. The most basic of fundraising secrets is that "people give to people." Twitter is simply one more tool to help people connect with each other. Can your nonprofit afford not to explore all the tools available?

Jump In, the Twitter Stream's Warm!

Why not test it out? Setting up an account is easy and free. Twitter's more interesting if you start following people right away. Nonprofit blogger Mark Hayward (@mark_hayward on Twitter) has a list of 97-yes, 97!-people he suggests following on Twitter. Check them out and follow the people that interest you. It's ok. You're not being invasive or nosey. You are supposed to follow people.

Other ways to find people that work in your field are tools like Search.Twitter.com or Twellow. Search "fundraising" or "nonprofit" or whatever else you're interested in. Whatever your cause is, you can search on to see who is talking about your cause. Simply follow those you find interesting and join in the conversation that's already going on. At first, you'll probably want to just listen. It's amazing how just listening will help you tell your nonprofit's story.

It's as Simple as Having a Conversation

Do not let all the tools confuse you. Twitter is as simple as having a conversation. Like anything else, it's odd to get used to, but once you get the hang of it, it is fun. You may raise money because of your tweets, but more importantly, you will learn a lot about the people that choose to support your cause and other causes. And that will help you get more effective at your nonprofit storytelling. What do you have to lose?

Marc A. Pitman is the author of "Ask Without Fear!" A thought leader recognized by the leading publishers, radio stations, and professional associations, his fundraising seminars help nonprofit staff and volunteers get re-energized about asking people for money. His complete article on Twitter for nonprofits and fundraising is at http://fundraisingcoach.com/. You can also sign up for his free ezine and receive a complimentary guide to fundraising with email.
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Private Family Foundations – Are You Ready to Create Your Own Foundation? A Quiz

2009-10-30T21:47:00.000-07:00

By Thomas Quinlin

Would you like to create a private family foundation? It can be the most rewarding thing you’ll ever do — or not. Take this quiz to find out if you’re ready.

To find out if creating a foundation is right for you, mark the following statements as either true or false.

1. The main reason for creating a foundation should be the resulting tax savings.

2. Setting up a foundation is similar to setting up a corporation.

3. A private family foundation would make a terrific Christmas present for my family.

4. If I don’t like my foundation anymore, I just close up shop.

5. Done correctly, a foundation can be very rewarding and bring the family closer together.

6. It’s important to focus on political correctness when picking a purpose for the foundation, whether I like the activities involved or not.

7. A private foundation is private, so there are few if any reporting requirements and administrative hassles.

Answers

1. False. Tax savings may be one of the benefits, but you should focus first and foremost on what you’re passionate about and make that the mission of your foundation. To make your foundation work rewarding, you need to find a way to integrate it with your own passions and your life.
Many of the tax savings actually come from your being able to pursue your passions on pretax dollars.

2. True. Setting up a foundation is very much like setting up a corporation. In fact, a foundation is generally set up as a corporation. There’s also a significant amount of legal and administrative work that must be done on an ongoing basis.

3. False. A foundation is a huge commitment. Unless your family has been closely involved in the decision making process, and is deeply committed to the foundation, it won’t work. “Surprising” your family with a foundation is a very bad idea.

4. False. A foundation, like a corporation, is a long-term commitment. It becomes an entity of its own. You can’t just start and shut them down at will.

5. True. If your foundation is truly built around your passions and those of your family, and is well integrated into your life plan, it will likely be very rewarding. And working together on a shared passion is bound to result in a closer relationship between you and your family.

6. False. Absolutely not. You must create your foundation around your own passions, not around what you perceive to be the politically correct issue of the moment. If you don’t, you will lose interest very quickly, and your foundation will become a chore, and maybe a nightmare.

7. False. The name notwithstanding, a private foundation is subject to numerous requirements. For example, there are reporting requirements, legal and administrative requirements, as well as requirements about disbursing funds to charities or for charitable activities.

The Results

How did you do? If you have answered at least 6-7 questions correctly, you may be ready to take the big step. Be sure to get all the facts, though, so your foundation will become the rewarding experience you deserve.

If you answered fewer questions correctly, you may want to get more information on private foundations. You need to find out more about how they really work and what is involved.

A private family foundation can do far more for you than just save taxes — and you get to make a real difference in the world. But you have to make sure that you integrate it with your passions — and your life.

To help you make sure you get all the details right, get your free sample chapter from the ultimate guide to using private foundations for wealth management by international wealth management advisor Thomas Quinlin, who rides his Harley all over the world, showing people how to live pre-tax in a post-tax world by turning their interests into a business, a charitable activity, or both.

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