tag:blogger.com,1999:blog-78385085674011657112024-03-05T13:42:24.404-08:00Catalyst Center for Nonprofit ManagementCindy Bergvallhttp://www.blogger.com/profile/07984158107291408595noreply@blogger.comBlogger130125tag:blogger.com,1999:blog-7838508567401165711.post-24975904886310117992014-03-18T11:17:00.003-07:002014-03-18T11:18:18.314-07:00Should You Start a Nonprofit Organization?It's only mid March but already we have had about seven inquiries from people looking to start a nonprofit organization. All great ideas. All people who are passionate about their concept. So what is our typical response? We try to talk them out of it.<br />
<br />
Why? Because the cost to start up a nonprofit and to maintain it on an ongoing basis, can eat into the funds raised in the early years essentially curtailing a great concept before it can even get off the ground.<br />
<br />
The initial costs to start a nonprofit include incorporation fees, assistance with the IRS form 1023 to apply for nonprofit status, the IRS filing fee, and the state filing fee. These fees can range between $2,000 and $3,000. <br />
<br />
The ongoing fees at a minimum include director & officers liability insurance and the administrative costs related to fundraising and the required acknowledgments. <br />
<br />
Instead we encourage potential new nonprofits to consider two potential courses of action:<br />
1-Is someone already doing something similar? Can you partner with another organization? Would your idea work as a program within an already existing nonprofit?<br />
or<br />
2-Consider a fiscal sponsorship arrangement. In this arrangement, you operate under another nonprofit's formation but you are independent from a management standpoint. The National Council of Nonprofits has a nice discussion on Fiscal Sponsorship<a href="http://www.councilofnonprofits.org/fiscal-sponsorship" target="_blank"> here.</a><br />
<br />
A new client pursued the fiscal sponsorship arrangement and found a great fiscal sponsor. Not only were they willing to set up the arrangement, they provided advice on the business plan and set up some valuable introductions for this new nonprofit.<br />
<br />
Sometimes a nonprofit concept has already taken off. Similar services are not available and the concept meets a great need in the community. There is a strong volunteer base and donors want to provide funds. In those cases, the organization has the foundation to move forward and is ready to apply for their own status. We can help them apply for their IRS status. For more information email us at <a href="mailto:cbergvall@bbco-cpa.com">cbergvall@bbco-cpa.com</a> for our white paper-Basic Guide to Starting a Nonprofit in Pennsylvania.Cindy Bergvallhttp://www.blogger.com/profile/07984158107291408595noreply@blogger.com1tag:blogger.com,1999:blog-7838508567401165711.post-27848595325232817502014-02-13T13:14:00.000-08:002014-02-13T13:15:15.784-08:00Fundraising, Finances, and your FutureAt the<a href="http://catalystnonprofit.com/" target="_blank"> Catalyst Center for Nonprofit Management</a> we are planning for this year's seminar topics. When we look at the popular topics for past sessions, fundraising is always the most popular. Topics around managing your finances are not as popular. <br />
<br />
Why is this? Fundraising seems to promise the possibility of more money. Fundraising can increase revenues. It may be also assumed that finances are harder to understand. What is often overlooked is that financial management will impact your revenues and expenses. Fundraising without proper financial management will be less effective. You could increase revenues but still not increase your bottom line.<br />
<br />
<a href="http://www.inc.com/magazine/201402/jill-hamburg-coplan/cash-flow-squeeze-growth-companies.html" target="_blank">This article in the February 2014 issue of INC magazine</a> tells the story of the Murder Mystery Company. The business was growing rapidly but finances were out of control. By getting a handle on the finances, the Company was able to decrease spending by tracking activity; capture revenue that they were losing; and develop a new revenue stream.<br />
<br />
So as we look to the coming year we will still offer course in both fundraising and finances. We hope to increase the attendance at the financial sessions. We frequently get comments about our financial training from our attendees. They note that the topics are taught in practical, easy to understand laymen terms. We offer follow up assistance from our sister company the accounting firm <a href="http://www.bbco-cpa.com/" target="_blank">Bee, Bergvall & Co.</a> Our goal is that our nonprofit community is better equipped to increase both the top line and the bottom line.Cindy Bergvallhttp://www.blogger.com/profile/07984158107291408595noreply@blogger.com0tag:blogger.com,1999:blog-7838508567401165711.post-7003635366597610452014-02-03T11:57:00.001-08:002014-02-03T11:58:46.112-08:00Lessons Learned from Knight Foundation's Digital News Study<a href="http://www.nonprofitquarterly.org/management/23147-new-report-a-clarifying-light-on-patterns-of-enterprise-in-nonprofit-based-news-sites.html" target="_blank">This article from NonProfit Quarterly</a> summarizes highlights from the Knight Foundation's study<a href="http://www.knightfoundation.org/features/nonprofitnews/" target="_blank"> Finding a Foothold-How NonProfit News Ventures Seek Sustainability</a>. While the focus in on news organizations, the observations from the study are valuable to any nonprofit:<br />
<br />
1- compare yourself to your peers and target those from whom you can learn<br />
2-revenue diversity with a focus on individual donations is key<br />
3-while some donations might be significant donations from high net worth individuals, most donations were much smaller<br />
4-the correlation between stakeholder engagement and donations<br />
5-attack your assumptions always<br />
6-measure what matters<br />
<br />
If you don't have time to read the whole report, the NPQ article is a great summary and the discussion of the recommendations at the end of the report are a quick but thought provoking read.<br />
<br />Cindy Bergvallhttp://www.blogger.com/profile/07984158107291408595noreply@blogger.com0tag:blogger.com,1999:blog-7838508567401165711.post-6130757755118945762014-01-30T10:18:00.000-08:002014-01-30T10:18:05.541-08:00Thinking of Serving on a Board?Maybe one of your New Years Resolutions was to get more involved in the community by serving on a Board. Before you jump in, check out this article in the January 2014 Journal of Accountancy <a href="http://journalofaccountancy.com/Issues/2014/Jan/20138932.htm" target="_blank">Consider This Before Serving on a Board</a> Amy Waldron, CPA interviews attorneys James K. Thurston and Peter J. Larkin about the possible liabilities to be aware of when serving on a Board. <br />
<br />
The one issue they note--personal liability for unpaid payroll taxes is one we address in our Board Boot Camp. We have seen some nonprofit clients get behind on payroll taxes--and the Board Members are not aware. Because Board Members can be personally liable for these unpaid taxes, it is important for Board Members to make sure their nonprofit is current.<br />
<br />
The attorneys note a number of strategies a Board Member can take to reduce risk.Cindy Bergvallhttp://www.blogger.com/profile/07984158107291408595noreply@blogger.com0tag:blogger.com,1999:blog-7838508567401165711.post-7387376578826721022013-10-07T11:56:00.000-07:002013-10-07T11:56:04.116-07:00Fundraising Q&A-Auction Items<br />
<div class="MsoNormal" style="margin: 0in 0in 10pt;">
<br /></div>
<span style="font-family: Calibri;"></span><div class="MsoNormal" style="margin: 0in 0in 10pt;">
<span style="font-family: Calibri;">QUESTION: What is the charitable contribution for the winning bidder
of an auction item?</span></div>
<span style="font-family: Calibri;">
<span style="mso-spacerun: yes;"><div class="MsoNormal" style="margin: 0in 0in 10pt;">
</div>
<div class="MsoNormal" style="margin: 0in 0in 10pt;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgif0KFE5oOHwgQcNCelDnXt0hhkrN3qL00qo38STOVM5kVzG0ObzdffmelvFqqyKHJMhtstIH5aXvSfxL0WxVpCYHxHdCQ5UfmFbMRniEjsHQB1FEWA5pUKtnyM2Gj-1dMCmz6bHHVJg4/s1600/charity+auction.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" height="212" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgif0KFE5oOHwgQcNCelDnXt0hhkrN3qL00qo38STOVM5kVzG0ObzdffmelvFqqyKHJMhtstIH5aXvSfxL0WxVpCYHxHdCQ5UfmFbMRniEjsHQB1FEWA5pUKtnyM2Gj-1dMCmz6bHHVJg4/s320/charity+auction.jpg" width="320" /></a></div>
</span><o:p></o:p></span>
<br />
<div class="MsoNormal" style="margin: 0in 0in 10pt;">
<span style="font-family: Calibri;">ANSWER: The winning bidder of an auction item can take a deduction
for the amount in excess of the value of the item.<span style="mso-spacerun: yes;"> </span>For example, a bidder pays $80 for a $50
restaurant gift certificate.<span style="mso-spacerun: yes;"> </span>Their
charitable contribution is $30—the amount the price paid exceeds the value
by.<span style="mso-spacerun: yes;"> </span>If they bid $50 for the $50 gift
certificate there would be no charitable contribution.<o:p></o:p></span></div>
<span style="font-family: Calibri;">Another example,<span style="mso-spacerun: yes;"> </span>the
bidder pays $1,000 for a painting valued at $800.<span style="mso-spacerun: yes;"> </span>The charitable contribution would be $200.<o:p></o:p></span><br />
<br />
<div class="MsoNormal" style="margin: 0in 0in 10pt;">
<span style="font-family: Calibri;">The other side of this question is—what is the charitable
contribution for a <em>donor of an item</em> that will be used in the auction?<o:p></o:p></span></div>
<span style="font-family: Calibri;">The donors charitable contribution will not be noted by the
nonprofit.<span style="mso-spacerun: yes;"> </span>The letter from the nonprofit
should say <i style="mso-bidi-font-style: normal;">thank you for your donation of
(describe item) </i>with no mention of the value.<span style="mso-spacerun: yes;"> </span>The donor should determine the value.<span style="mso-spacerun: yes;"> </span>The donors charitable deduction is limited to
the donors cost for the item.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span><br />
<br />
<div class="MsoNormal" style="margin: 0in 0in 10pt;">
<span style="font-family: Calibri;">For example, the donor asks the restaurant to donate a $50
gift card.<span style="mso-spacerun: yes;"> </span>The gift card sells for
$100.<span style="mso-spacerun: yes;"> </span>The donors charitable contribution
is zero.<span style="mso-spacerun: yes;"> </span>If the donor purchased the
gift card for $50 and donated it to the auction, their charitable contribution
would be $50.<o:p></o:p></span></div>
<span style="font-family: Calibri;">In the painting example, the artist who donated their own
painting that would normally sell for $800 at a gallery, gets a charitable
contribution only for the supplies—paint, canvas, etc.<span style="mso-spacerun: yes;"> </span>Their time is not valued.<o:p></o:p></span><br />
<br />
<div class="MsoNormal" style="margin: 0in 0in 10pt;">
<o:p><span style="font-family: Calibri;"> </span></o:p></div>
Cindy Bergvallhttp://www.blogger.com/profile/07984158107291408595noreply@blogger.com0tag:blogger.com,1999:blog-7838508567401165711.post-81724456819306396012013-09-30T07:26:00.001-07:002013-09-30T07:26:59.063-07:00It Can't Happen Here<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEje8yyxAu2hJj_TsjkBIaVnqrT2PfIOoqrQT6kjGog5zAvShVbuyrJdElkhUwdJVgznmiJKDrzHSpBiD-mMPCOD8JS2UBfrbpJzDJymmeVyjMHDC7R8KvQkGuLePzzRM8UHbQRCCTF8h1I/s1600/so-embarrassed%5B1%5D.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="240" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEje8yyxAu2hJj_TsjkBIaVnqrT2PfIOoqrQT6kjGog5zAvShVbuyrJdElkhUwdJVgznmiJKDrzHSpBiD-mMPCOD8JS2UBfrbpJzDJymmeVyjMHDC7R8KvQkGuLePzzRM8UHbQRCCTF8h1I/s320/so-embarrassed%5B1%5D.jpg" width="320" /></a>When we are asked to speak about fraud at conferences, attendees will sometimes say<br />
<blockquote class="tr_bq">
<strong>"that could never happen in our organization"</strong></blockquote>
I wish that was true. I wish I didn't pick up the local paper and see articles on embezzlements at local companies, nonprofits, churches, and youth sports organizations throughout the year. I wish I didn't read the articles and realize that in most of the cases, the fraud could have been prevented.<br />
<br />
This article <a href="http://nonprofitinformation.com/embezzlement-nonprofit/?goback=%2Egde_113885_member_276755569#%21" target="_blank">here</a> discusses the damage that a fraud can do to a nonprofits reputation and signs to look for in your organization.<br />
<br />
For more about what you can do to deter fraud in your organization, contact us at <a href="mailto:cbergvall@bbco-cpa.com">cbergvall@bbco-cpa.com</a><br />
<br />
Cindy Bergvallhttp://www.blogger.com/profile/07984158107291408595noreply@blogger.com0tag:blogger.com,1999:blog-7838508567401165711.post-1867829019787504592013-09-24T12:28:00.000-07:002013-09-24T12:28:02.965-07:00Fundraising Q&A-What can a participant deduct for a special event?<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhUHaPjG631GccjePzkTUyllfbRYpamM4kIlMWfxfOZRCA_mJFo0aMqQHmRDeiGsDVSxAXiOERKBkLrGS-cuAcMRwuFmtLGyNEvCr6Okbc4t6VurM5cjwPSX7tD1xfYRqPps4i_xKx2xyc/s1600/special+event.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="106" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhUHaPjG631GccjePzkTUyllfbRYpamM4kIlMWfxfOZRCA_mJFo0aMqQHmRDeiGsDVSxAXiOERKBkLrGS-cuAcMRwuFmtLGyNEvCr6Okbc4t6VurM5cjwPSX7tD1xfYRqPps4i_xKx2xyc/s320/special+event.jpg" width="320" /></a></div>
<div class="MsoNormal" style="margin: 0in 0in 10pt;">
<span style="font-family: inherit;">QUESTION: What can a participant deduct for a special event?<o:p></o:p></span></div>
<span style="font-family: inherit;">
</span><br />
<div class="MsoNormal" style="margin: 0in 0in 10pt;">
<span style="font-family: inherit;">ANSWER: The general rule for special events is that participants can
take a charitable deduction for the part of the event fee that exceeds the
benefit to the participant.<span style="mso-spacerun: yes;"> </span>For example:
if a dinner ticket to an event in $150 per person and the value of the dinner
is determined to be $100, the attendee can take a $50 charitable
deduction.<span style="mso-spacerun: yes;"> </span>It is the responsibility of
the nonprofit to notify the attendee of the value they received.<span style="mso-spacerun: yes;"> </span>This is an IRS requirement when the value
received by the participant is more than $75.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 10pt;">
<span style="font-family: inherit;">QUESTION: How should the nonprofit notify the participant of the value
of the special event?<o:p></o:p></span></div>
<span style="font-family: inherit;">
</span><br />
<div class="MsoNormal" style="margin: 0in 0in 10pt;">
<span style="font-family: inherit;">ANSWER: There are several ways a nonprofit can do this.<span style="mso-spacerun: yes;"> </span>The notice can be printed on the ticket to
the event.<span style="mso-spacerun: yes;"> </span><i style="mso-bidi-font-style: normal;">$50 of this ticket price represents a charitable contribution.</i><span style="mso-spacerun: yes;"> </span>It can be part of the text of a follow up
thank you note from the event.<span style="mso-spacerun: yes;"> </span><i style="mso-bidi-font-style: normal;">Thank you so much for joining us as we
celebrated 25 years of fighting poverty.<span style="mso-spacerun: yes;">
</span>We raised over $30,000 at our event</i>.<span style="mso-spacerun: yes;"> </span><i style="mso-bidi-font-style: normal;">Please
note that the FMV of the dinner was $100 and <span style="mso-spacerun: yes;"> </span>$50 of the ticket price is a charitable
contribution.</i><o:p></o:p></span></div>
Cindy Bergvallhttp://www.blogger.com/profile/07984158107291408595noreply@blogger.com0tag:blogger.com,1999:blog-7838508567401165711.post-76451679385671691752013-09-19T12:59:00.000-07:002013-09-19T12:59:54.279-07:00Fundraising Q & A-5K Fundraiser<br />
<div class="MsoNormal" style="margin: 0in 0in 10pt;">
<o:p><span style="font-family: Calibri;"> </span></o:p><br />
<div class="separator" style="clear: both; text-align: center;">
<span style="font-family: Calibri;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiNG5Pw633qF7i7mHl_vz5FWuddwlcvHB40MPC4_ukNGydiu9qCKX8QLV_MJx0t0kU0US_HiFvCyJdxI9o3xoQ7DI_BCZQhGMVWx2Ym17iMMYOizh8BTdZMOkeJUYCS4RTaB40hSdv-JfM/s1600/5K.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="137" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiNG5Pw633qF7i7mHl_vz5FWuddwlcvHB40MPC4_ukNGydiu9qCKX8QLV_MJx0t0kU0US_HiFvCyJdxI9o3xoQ7DI_BCZQhGMVWx2Ym17iMMYOizh8BTdZMOkeJUYCS4RTaB40hSdv-JfM/s320/5K.jpg" width="320" /></a></span></div>
<span style="font-family: inherit;">QUESTION </span><span style="font-family: inherit;">How should a 5K fundraiser be handled?<span style="mso-spacerun: yes;"> </span>Is the registration fee a tax deductible
contribution for the donor?<span style="mso-spacerun: yes;"> </span><o:p></o:p></span><br />
<span style="font-family: inherit;">
ANSWER Typical registration fees for a for profit 5K range from $25
to $100 depending on the amenities available to the runner.<span style="mso-spacerun: yes;"> </span>A run that just provides a T Shirt usually
is $25.<span style="mso-spacerun: yes;"> </span>A run that provides a T Shirt,
water bottle, other give away items and food may be $100.<span style="mso-spacerun: yes;"> </span>Given those parameters, a nonprofit can
determine the value of their run to the participant.<span style="mso-spacerun: yes;"> </span>Typically registration fees to run in a
nonprofit fundraising run will not be tax deductible to the participant.<span style="mso-spacerun: yes;"> </span>Usually a nonprofit fundraising run will
involve participants raising money from sponsors.<span style="mso-spacerun: yes;"> </span>Those funds raised will be deductible by the
sponsors.<span style="mso-spacerun: yes;"> </span>A participant who sponsors
themselves will be able to deduct that sponsorship portion that is over and
above the registration fee.<o:p></o:p></span><br />
<span style="font-family: inherit;">
</span><br />
<div class="MsoNormal" style="margin: 0in 0in 10pt;">
<span style="font-family: inherit;">Ex-Jane Runner pays a $50 registration fee to run in the 5K
to benefit Community Nonprofit.<span style="mso-spacerun: yes;"> </span>Her
friends contribute $500 through sponsorships.<span style="mso-spacerun: yes;">
</span>She also adds another $150 to her sponsorship beyond the $50
registration fee.<span style="mso-spacerun: yes;"> </span>Her friends will
receive a $500 charitable contribution and Jane will receive a $150 charitable
contribution.<span style="mso-spacerun: yes;"> </span>Jane cannot take the $50
registration fee as a charitable contribution.<o:p></o:p></span></div>
<span style="font-family: inherit;">
</span><span style="font-family: inherit;">The nonprofit needs to carefully word their thank you notes
so that it is clear that the registration fee is not a charitable contribution.<o:p></o:p></span></div>
Cindy Bergvallhttp://www.blogger.com/profile/07984158107291408595noreply@blogger.com0tag:blogger.com,1999:blog-7838508567401165711.post-71299132082932167172013-09-11T12:00:00.001-07:002013-09-11T12:00:37.403-07:00Fundraising Q&A-PANO Resources<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjvrHnr8U6vqlv2YEgsoIZxje62gWXuXxUKW1hektSI1lXtmIN19PFAsW1rTv752hOCTPo4DqFj56_FQaxjVk_uzFWLu5Fd5AV9Sb6eS9i3JDWan8xB73lUH5HhEpjgYVNoQMKKRWjuY6Y/s1600/pennsbury_mansion.gif" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" height="192" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjvrHnr8U6vqlv2YEgsoIZxje62gWXuXxUKW1hektSI1lXtmIN19PFAsW1rTv752hOCTPo4DqFj56_FQaxjVk_uzFWLu5Fd5AV9Sb6eS9i3JDWan8xB73lUH5HhEpjgYVNoQMKKRWjuY6Y/s320/pennsbury_mansion.gif" width="320" /></a></div>
<span style="font-family: inherit;">Over the summer Liz and I presented the popular<a href="http://www.pano.org/" target="_blank"> PANO</a> session</span><span style="font-family: inherit;">-Fundraising Practices: Track It Right! Book it Right!
Report it Right!<span style="mso-spacerun: yes;"> at the beautiful historic site <a href="http://www.pennsburymanor.org/" target="_blank">Pennsbury Manor</a>, right on the Delaware River. </span>The audience was very
engaging and had a number of great real life stories of transparency in
fundraising.<span style="mso-spacerun: yes;"> </span>Some good questions came
out of the session and I’ll share them in the next few posts. </span><br />
<span style="font-family: inherit;"><o:p></o:p></span><br />
<span style="font-family: inherit;">
</span><span style="font-family: "Calibri","sans-serif"; font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-language: AR-SA; mso-bidi-theme-font: minor-bidi; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;"><span style="font-family: inherit;">The great part about teaching the session is
that we talk to the group about best practices in fundraising and PANO has a
treasure trove of resources to help nonprofits follow these best
practices.<span style="mso-spacerun: yes;"> </span>These resources are
available free to members or for a small fee ($10 to $15) for nonmemebers <span style="mso-spacerun: yes;"> </span>at the PANO website. There are sample policies, guidelines, and procedures that will save you time and frustration. You can order the materials <a href="http://www.pano.org/Standards-For-Excellence/Educational-Resources/" target="_blank">here</a>.</span> <span style="font-family: inherit;">Select Educational Resource Packets.</span></span>Cindy Bergvallhttp://www.blogger.com/profile/07984158107291408595noreply@blogger.com0tag:blogger.com,1999:blog-7838508567401165711.post-65004672383833036572013-09-04T13:19:00.002-07:002013-09-04T13:19:46.990-07:00Thank You (with a few IRS strings attached)<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi3XQ-s0mbX_JySyxLUJecOYpDG7ZGGAmI_tDzhpACzRpkefd9pR9uLWc45B9ofXB07CM0xBHUFBHMYgTujf1ROorr2C63y7N7YgFi2zrg1JV5GjjQmu0QgdzZ1spnRt5F_lx5LT1ge9Dc/s1600/Thank-You-word-cloud-1024x791.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" height="247" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi3XQ-s0mbX_JySyxLUJecOYpDG7ZGGAmI_tDzhpACzRpkefd9pR9uLWc45B9ofXB07CM0xBHUFBHMYgTujf1ROorr2C63y7N7YgFi2zrg1JV5GjjQmu0QgdzZ1spnRt5F_lx5LT1ge9Dc/s320/Thank-You-word-cloud-1024x791.jpg" width="320" /></a><div style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;">
<br /></div>
A timely thank you to your donors is a practice that let's your donors know how much you appreciate them. The IRS has requirements that you need to follow if your donors want to deduct their contribution.<br />
<ul>
<li>Donations of more than $250 must be acknowledged in writing</li>
<li>The phrase "no goods or services were received in exchange for this contribution" must be included with the letter (unless they did receive goods or services-see below)</li>
<li>The letter needs to be sent prior to the due date of the donor's tax return. Typically this would be by April 15 of the year following the year the donation was made.</li>
</ul>
If the donor did receive goods or services--for example, they purchased a ticket for a golf outing, then the value of the golf outing would reduce the contribution. So if the event ticket is $150 and the value of the golf outing is $100, your thank you letter would note--for tax purposes, only $50 is tax deductible. The fair market value of the food and the golf outing is $100.<br />
<br />
NOTE: if your donor does not receive a timely thank you letter OR the letter does not say ""no goods or services were received in exchange for this contribution" then they will not be able to take a tax dedcution for the donation.<br />
<br />
Cindy Bergvallhttp://www.blogger.com/profile/07984158107291408595noreply@blogger.com0tag:blogger.com,1999:blog-7838508567401165711.post-59468088222615106832013-07-30T08:34:00.000-07:002013-07-30T08:34:24.917-07:005 Time Saving Quickbooks Features Many of our nonprofit clients used Quickbooks. This <a href="http://www.k2e.com/tech-update/articles/680-articles-5-quickbooks-features-you-should-know?utm_source=2013+07+NewsletterNewFormat&utm_campaign=JulyNewsletter&utm_medium=email" target="_blank">blog post</a> from <a href="http://www.k2e.com/" target="_blank">K2 Enterprises</a> lists 5 great Quickbooks features that you might not be aware of. These 3 will be especially helpful to nonprofits.<br />
<br />
1. Nonprofits often use the class feature to track grant expenditures or expenditures related to a specific program. If you need to reclassify a group of expenses from one class to another, you don't have to select each individual expense. The blog shows you how to use Client Data Review to reclass the group of expenses all at once.<br />
<br />
2. Nonprofits will have additional reporting requirements and will frequently export Quickbooks information to Excel and then work with the information to produce a report. Quickbooks Statement Writer lets you set up the report in Excel and then update the information from Quickbooks without having to recreate the report everytime.<br />
<br />
3. Some nonprofits have a related entity. This means they have two company files on Quickbooks. The blog shows you how Quickbooks will let you open two company files simultaneously.<br />
<br />
Cindy Bergvallhttp://www.blogger.com/profile/07984158107291408595noreply@blogger.com0tag:blogger.com,1999:blog-7838508567401165711.post-46002367746542464432013-06-28T11:56:00.002-07:002013-06-28T11:57:11.188-07:00LinkedIn Endorsements - What's It all About<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg-I6bBkwcz2Jfdcs-xtdhPv5yO1uRdQrQloAnOcA5eWyY4XpLOBq37zDNdvAYbIRujUIMXVo7l1aGdexaFN9uUiTdY59Eb4FKsmorBMyWxelbhj3jMUWN-nWG2ja36cTrfvkRQuRf3dLc/s180/ext.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg-I6bBkwcz2Jfdcs-xtdhPv5yO1uRdQrQloAnOcA5eWyY4XpLOBq37zDNdvAYbIRujUIMXVo7l1aGdexaFN9uUiTdY59Eb4FKsmorBMyWxelbhj3jMUWN-nWG2ja36cTrfvkRQuRf3dLc/s180/ext.jpg" /></a></div>
<span style="font-family: Calibri;">For months I had been getting
notices...."Cindy!<span style="mso-spacerun: yes;"> </span>Jane Doe
endorsed you for calculator skills!<span style="mso-spacerun: yes;">
</span>John Brown endorsed you for walking without tripping!"</span><br />
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="font-family: Calibri;">What was this?<span style="mso-spacerun: yes;"> </span>Should I say thank you?<span style="mso-spacerun: yes;"> </span>Should I endorse others?<span style="mso-spacerun: yes;"> I</span> came across <a href="http://www.forbes.com/sites/susanadams/2012/12/04/everything-you-need-to-know-about-linkedin-endorsements/" target="_blank">this article</a> that helped me understand endorsements and why
it's important.<span style="mso-spacerun: yes;"> </span></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="font-family: Calibri;">However, it wasn't until today that
I took action.<span style="mso-spacerun: yes;"> </span>I didn't want anyone to
get notifications that I was doing major work to my profile so first I turned
off the notifications as follows:</span></div>
<blockquote class="tr_bq">
<o:p><span style="font-family: Calibri;"> </span></o:p><span style="font-family: Calibri;">Turn off notifications that you’re
making changes to your profile, by going to the Settings tab (mouse over your
name on upper right hand corner) and then going to Privacy Controls (middle
column on bottom half of screen), clicking “Turn on/off your activity
broadcasts,” and unchecking the box to “Let people know when you change your
profile, make recommendations, or follow companies.” That way you can make
changes without telling the world.</span></blockquote>
<span style="font-family: Calibri;">I turned this back on when I was
done.</span><br />
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="font-family: Calibri;">Then I reviewed the endorsements
that I received and clicked the X by any endorsements that I didn't want
published.<span style="mso-spacerun: yes;"> </span>For example, while I know Excel
and Word--I don't want to be endorsed for them.<span style="mso-spacerun: yes;"> </span>Then I clicked the box that allowed me to
add the endorsements to my profile.<span style="mso-spacerun: yes;"> </span>My
profile was instantly updated with skills and expertise.</span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="font-family: Calibri;">Immediately after that, a box popped
up with suggested endorsements for people I know.<span style="mso-spacerun: yes;"> </span>I tried to only endorse skills that I knew
the person actually did.<span style="mso-spacerun: yes;"> </span>There was a
box where you could endorse all 4 people that showed up at the same time.</span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="font-family: Calibri;">So I am glad I could reciprocate for
all the nice people that endorsed me and now all those nice endorsements from
others are showing in my profile.</span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="font-family: Calibri;">So thank you to all those who have
generously endorsed me.<span style="mso-spacerun: yes;"> </span>I hope to
continue to stay on top of this. </span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="font-family: Calibri;">Note:<span style="mso-spacerun: yes;"> </span>I guess my comment on hiding my update was
unnecessary given this post.<span style="mso-spacerun: yes;"> </span>But I found
the process helpful and thought others might too!</span></div>
Cindy Bergvallhttp://www.blogger.com/profile/07984158107291408595noreply@blogger.com0tag:blogger.com,1999:blog-7838508567401165711.post-59490110196658334742013-06-24T14:01:00.001-07:002013-06-24T14:02:52.451-07:00Outcomes Data Shows Life Changing ResultsAs an accountant and a nonprofit strategic consultant, I see the power of combining numbers and data with process and strategy to achieve results and increase capacity. Its what we put into practice when we work with our clients. Its what I speak to nonprofit and business groups about throughout the year. And its been the topic of a number of posts in this blog.<br />
<br />
So I am very excited about the results of a study released this month summarized in <a href="http://www.christianitytoday.com/ct/2013/june/want-to-change-world-sponsor-child.html?paging=off" target="_blank">this</a> article from Christianity Today. The subtitle says it well "A top economist shares the astounding news about that little picture hanging on our refrigerator."<br />
<br />
The study involved over 10,000 sponsored children and has been academically vetted. One of the quotes:<br />
<blockquote class="tr_bq">
"You could beat this data senseless, and it was incapable of showing anything other than extremely large and statistically significant impacts on educational outcomes for sponsored children."</blockquote>
It is incredible how powerful a small investment each month is in the life of a child. Visit Compassion International's <a href="http://www.compassion.com/default.htm" target="_blank">site</a> to learn more about their work.Cindy Bergvallhttp://www.blogger.com/profile/07984158107291408595noreply@blogger.com0tag:blogger.com,1999:blog-7838508567401165711.post-39701754903300406962013-05-13T05:11:00.000-07:002013-05-13T05:11:15.871-07:00Why Measure Impact
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="font-size: 12pt;"><span style="font-family: Calibri;">The
finding that intrigued me the most from the <a href="http://nonprofitfinancefund.org/state-of-the-sector-surveys" target="_blank">Nonprofit Finance Fund survey</a> was
that 53% of the 6,000 respondents regularly collect data on the impact of their
programs.<span style="mso-spacerun: yes;"> </span>I thought the number would be
higher.<span style="mso-spacerun: yes;"> </span>In a time when nonprofits are
facing government funding cuts and will be looking to individuals and
businesses for more funding, they need to be measuring and communicating
impact.<o:p></o:p></span></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="font-size: 12pt;"><span style="font-family: Calibri;">The
53% that measured impact corresponded closely to 54% of respondents who noted
that funders ask them to measure long term impact.<span style="mso-spacerun: yes;"> </span>While the survey does not note that the same
nonprofits who measure impact are the same ones who are asked to do so, the
similar percentages lead me to believe that is the case.<o:p></o:p></span></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="font-size: 12pt;"><span style="font-family: Calibri;">The
number one reason nonprofits did not measure impact was that they noted they
did not have enough time (69%).<span style="mso-spacerun: yes;"> </span>The
other reasons related to not having enough knowledge to measure impact.<span style="mso-spacerun: yes;"> </span>These reasons included:<span style="mso-spacerun: yes;"> </span>impact is not easily measurable (54%); no
resources to hire an outside consultant to help collect data (52%); and not
having the right staff expertise (40%).<o:p></o:p></span></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="font-size: 12pt;"><span style="font-family: Calibri;">Nonprofits
must make the time to measure impact.<span style="mso-spacerun: yes;">
</span>If they cannot explain to their donors, staff, and stakeholders that
what they do makes a positive difference, how will they sustain the
organization?<o:p></o:p></span></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="font-size: 12pt;"><span style="font-family: Calibri;">Now I
know that studies show that 2/3 of donors give without consideration of the
data.<span style="mso-spacerun: yes;"> </span>I also know that many
organizations provide services to recipients that they cannot track in the long
term.<o:p></o:p></span></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="font-size: 12pt;"><span style="font-family: Calibri;">But
consider this—1/3 of donors do give with consideration of the data.<span style="mso-spacerun: yes;"> </span>So those organizations that regularly measure
impact will appeal to more donors and be better positioned to thrive.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="font-size: 12pt;"><span style="font-family: Calibri;">On
the difficulty of measuring long term impact, nonprofits need to engage in
robust conversations, locally, regionally, and nationally to make sure that
what they are doing is truly impacting the community.<span style="mso-spacerun: yes;"> </span>They need to clearly define how they will
validate and measure the impact.<span style="mso-spacerun: yes;"> </span>Small
local nonprofits can and do use national studies that refer to research based
results.<span style="mso-spacerun: yes;"> </span><span style="mso-spacerun: yes;"> </span>This can provide the long term impact
statistics that some donors consider.<o:p></o:p></span></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="font-size: 12pt;"><span style="font-family: Calibri;">Of
all the survey results, this is the number to improve.<span style="mso-spacerun: yes;"> </span>Over time, if this number increases and the
impact is communicated to donors, staff, and stakeholders, not only will the
financial viability of nonprofits improve but the impact of the nonprofit
sector on the community will improve as well.<o:p></o:p></span></span></div>
Cindy Bergvallhttp://www.blogger.com/profile/07984158107291408595noreply@blogger.com0tag:blogger.com,1999:blog-7838508567401165711.post-45663319366552922132013-04-26T09:32:00.004-07:002013-04-26T09:34:37.103-07:00Reflecting on the Nonprofit Finance Fund survey<span style="font-size: 12pt;"><span style="font-family: Calibri;">Nearly
6,000 nonprofits participated in the <a href="http://nonprofitfinancefund.org/state-of-the-sector-surveys" target="_blank">Nonprofit Finance Fund survey</a> from all
over the country.<span style="mso-spacerun: yes;"> </span>Nearly ½ the
organizations were between $500,000 to $5 million in revenue.<span style="mso-spacerun: yes;"> </span>Most (40%) of the organizations were human
services organizations with arts & culture (16%) and education (14%) the
next two largest.<span style="mso-spacerun: yes;"> </span><span style="mso-spacerun: yes;"> </span>A few notable statistics:<o:p></o:p></span></span><br />
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="font-size: 12pt;"><span style="font-family: Calibri;">Only
30% of the organizations received federal funds.<span style="mso-spacerun: yes;"> </span>About ½ of the organizations received state
and local funds.<span style="mso-spacerun: yes;"> </span>Of those who received
state and local funding, 63% received the same or more funding in 2012 as they
did in 2011.<span style="mso-spacerun: yes;"> </span>The % was about the same
for federal monies.<span style="mso-spacerun: yes;"> </span>I had expected
government funding to decrease.<span style="mso-spacerun: yes;"> </span>Based on
the federal debt and looming state pension benefit funding requirements, I
suspect these figures will go down in the future.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="font-size: 12pt;"><span style="font-family: Calibri;">I had
also expected that more nonprofits would have less cash on hand.<span style="mso-spacerun: yes;"> </span>However 44% had 4 or more month’s expenses on
hand and 32% had 2-3 months.<span style="mso-spacerun: yes;"> </span><span style="mso-spacerun: yes;"> </span>It is not good—especially for those
organizations that are likely to experience cuts in government funding.<span style="mso-spacerun: yes;"> </span>And 25% of those responding to the survey
had one month or less, which is very sobering.<span style="mso-spacerun: yes;">
</span><span style="mso-spacerun: yes;"> </span>But considering how lean the last
few years have been, the nonprofits have really worked hard to hang onto some
reserves.<o:p></o:p></span></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="font-size: 12pt;"><span style="font-family: Calibri;">The
section of the survey on organizational management actions related to finance
and operations asked respondents to check off actions they had taken from a
list of prepared actions (in other words—it was not an open ended
question).<span style="mso-spacerun: yes;"> </span>I would have expected the
highest responses to include changing the way funds were raised and spent.<span style="mso-spacerun: yes;"> </span>However, that was actually the 4<sup>th</sup>
most frequent response (39%) compared to attending conferences and networking
(58%); advocating to the government on behalf of cause (46%) and upgrading
technology to increase efficiency (46%).<span style="mso-spacerun: yes;">
</span>Many nonprofits had already pursued funding differently and cut expenses
in prior years.<span style="mso-spacerun: yes;"> </span>Nonprofits had cut
back and even eliminating attending training.<span style="mso-spacerun: yes;">
</span>We see a lot of great networking and collaboration come out of seminars.<span style="mso-spacerun: yes;"> </span>It is great to see that nonprofits are able
to get out again for training and networking.<o:p></o:p></span></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="font-size: 12pt;"><span style="font-family: Calibri;">The
statistic that jumped out at me the most was on measuring impact—that is a
whole post in itself so I will address that next time.<o:p></o:p></span></span></div>
Cindy Bergvallhttp://www.blogger.com/profile/07984158107291408595noreply@blogger.com1tag:blogger.com,1999:blog-7838508567401165711.post-34471999897854961072013-04-02T16:39:00.000-07:002013-04-02T16:39:17.674-07:002013 Nonprofit Finance Fund Survey
<span style="font-family: "Arial","sans-serif";">Economic
challenges continue while demand grows.<span style="mso-spacerun: yes;">
</span>This is the primary message from nearly 6,000 nonprofits in the
<a href="http://survey.nonprofitfinancefund.org/2013/#respondents,demand,finhealth,actions,gov,data,engagement,perceptions" target="_blank">Nonprofit Finance Fund’s 2013 survey</a>.<span style="mso-spacerun: yes;">
</span>There is so much great information in here I want to take a few posts to
explore it.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span><br />
<br />
<span style="font-family: "Arial","sans-serif";">The
<a href="http://nonprofitfinancefund.org/state-of-the-sector-surveys" target="_blank">summary of the survey</a> does a nice job grouping findings into several areas and
concluding the following:<o:p></o:p></span><br />
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="font-family: "Arial","sans-serif";">1. Nonprofits
need new funding sources and models<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="font-family: "Arial","sans-serif";">2. Nonprofits
that receive government funding face particular challenges<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="font-family: "Arial","sans-serif";">3. Under
these challenging conditions, many nonprofits are unable to meet growing need
in their communities<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="font-family: "Arial","sans-serif";">4. Nonprofits
are changing the way they do business to adapt to the new reality.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="font-family: "Arial","sans-serif";"><o:p> </o:p></span><span style="font-family: "Arial","sans-serif";">Graphs,
charts and pictorial representations clearly communicate the results making
this a quick but powerful read.<o:p></o:p></span></div>
Cindy Bergvallhttp://www.blogger.com/profile/07984158107291408595noreply@blogger.com3tag:blogger.com,1999:blog-7838508567401165711.post-3780564991228523042013-02-09T07:52:00.002-08:002013-02-09T07:53:41.014-08:00What We Can Learn from the Dodge Dart Registry<div class="separator" style="border-bottom: medium none; border-left: medium none; border-right: medium none; border-top: medium none; clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEijntnrX-jz1uUyq4qQxtE67qcxhy3cHcu6jbGK17ACvyMQBGT8OKzaepKWYXspjDjo8zQ0hyphenhyphenkqAYGdfGcDobvexrNQXQkpHCPbL4iyoGCZjsdd460SX5WAKB6-vkGKA6WOvCoAmH0wR1o/s1600/dodge+dart.jpg" imageanchor="1" style="clear: left; cssfloat: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="108" jea="true" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEijntnrX-jz1uUyq4qQxtE67qcxhy3cHcu6jbGK17ACvyMQBGT8OKzaepKWYXspjDjo8zQ0hyphenhyphenkqAYGdfGcDobvexrNQXQkpHCPbL4iyoGCZjsdd460SX5WAKB6-vkGKA6WOvCoAmH0wR1o/s200/dodge+dart.jpg" width="200" /></a></div>
The Dodge Dart commercial aired last night while we were watching TV (watch it <a href="http://www.youtube.com/watch?v=Ev3_4NcUl2w" target="_blank">here</a>). "Dad buys the engine. Grandma buys the rims. Family and friends kick in and when its fully funded, its yours!" We initially thought it was a spoof on the bridal registry. But its real. Check out the site <a href="http://www.dodgedartregistry.com/" target="_blank">here</a> <br />
<br />
As the commercial ran and "100% funded" flashed across the screen--I didn't think bridal registry though--I thought nonprofit fundraising. Give people something tangible to be part of and experience. Several organizations already do this in varying ways.<br />
<br />
<a href="https://www.samaritanspurse.org/index.php/Giving/gift_catalog/" target="_blank">Samaritans Purse</a><br />
<br />
<a href="https://www.habitat.org/cd/giving/one/donate.aspx?link=271&source_code=DHQOQ1107W1GGR" target="_blank">Habitat for Humanity</a><br />
<br />
<a href="http://www.compassion.com/sponsor_a_child/default.htm" target="_blank">Compassional International</a><br />
<br />
and our local <a href="http://www.twilightwish.org/open-wishes/" target="_blank">Twilight Wish</a><br />
<br />
How can you create an image of what you do and have donors invest in parts of the whole?<br />
<br />Cindy Bergvallhttp://www.blogger.com/profile/07984158107291408595noreply@blogger.com0tag:blogger.com,1999:blog-7838508567401165711.post-15989619424498678412013-01-25T11:59:00.001-08:002013-01-25T11:59:46.332-08:00IRS Exempt Organization Focus for 2013<a href="http://nonprofitquarterly.org/management/21494-what-will-and-wont-the-irs-be-tackling-on-tax-exempts-in-2013.html" target="_blank">This post</a> from Nonprofit Quarterly discussed what areas the IRS has targeted for 2013 with regards to nonprofit organizations. A few notable areas:<br />
<br />
1-Nonprofits that report unrelated business income, but don't file the form 990-T for unrelated business income<br />
2-Nonprofits that report significant unrelated business income but don't show any profit for the income<br />
3-Regulations and guidance for supporting organizations<br />
4-Regulations for church tax inquiries and examinations<br />
<br />
The article also noted the reduction in IRS audits of exempt organizations, the reduction of staff in this area, and the tasks mandated by the health care act that further reduce their available time for audits. Over a period of 30 years, only one of our nonprofit clients was audited by the IRS and it turned out to be a random selection of a small nonprofit client to train the IRS agent. <br />
<br />
Regardless of whether or not you are likely to be audited by the IRS, your 990 needs to be accurate, transparent, and compliant. More and more donors are accessing nonprofit 990's on Guidestar. This comes up in our conversations with businesses and individuals when they are making donor decisions or if they are deciding to serve on a Board. It is also coming up in conversations with estate attorneys who advise their clients to research the organizaitons they note in their wills. If you are following the 990 instructions and providing clear information on your 990, it can increase your favor in your donors' eyes.<br />
Cindy Bergvallhttp://www.blogger.com/profile/07984158107291408595noreply@blogger.com0tag:blogger.com,1999:blog-7838508567401165711.post-59383549860929024572013-01-02T06:36:00.001-08:002013-01-02T06:36:15.624-08:00Thanking Volunteers can get you in trouble with the IRSNonprofits thrive through their volunteers. When looking to say "thank you" some nonprofits may consider issuing gift cards. <a href="http://www.hhcpa.com/blogs/non-profit-accounting-services-blog/can-gift-cards-jeopardize-your-volunteer-force/" target="_blank">This post</a> by Katie Thomas, CPA with Henry & Home in Arizona reminds you to consider the implications of gift cards for volunteers. Thanks to <a href="http://nonprofitupdate.info/author/ulvog/" target="_blank">Jim Ulvog</a> for highlighting this post in his blog-Nonprofit Update.<br />
<br />
Cindy Bergvallhttp://www.blogger.com/profile/07984158107291408595noreply@blogger.com0tag:blogger.com,1999:blog-7838508567401165711.post-38865664649515443322012-12-17T14:20:00.000-08:002012-12-17T14:20:39.586-08:00Year End Giving Tips and the Influence on Your Donors-Part 3<span style="font-family: Arial, Helvetica, sans-serif;">We have been looking at year end giving tips--most of which usually cite the <a href="http://www.charitynavigator.org/index.cfm?bay=content.view&cpid=419" target="_blank">tips from</a> Charity Navigator. Their discussion is much more in depth than the summary here so make sure to review their listing. Our focus has been on how you as the charity can put your best foot forward. The last three...</span><br />
<span style="font-family: Arial;"></span><br />
<span style="font-family: Arial;">8. <em>Look at the charity's financial health. Review the last three years of the Form 990. Generally you would expect to see 75% of the expenses spent on program and 25% on administration and fundraising. </em> I was pleased to note that Charity Navigator affirms that well run organizations need to spend money on raising funds and the administrative functions of running the organizations. I am always wary of charities who proclaim that 100% of your donation goes directly towards the program. A sustainable organization spends money to continue fundraising and has a solid administrative foundation. You should also have money saved for the future. </span><br />
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<span style="font-family: Arial;">We sometimes find that smaller nonprofits only allocate direct program costs to the program category. You should have a reasonable method for allocating occupancy costs, office costs, and other costs to program, administrative, and fund raising.</span><br />
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<span style="font-family: Arial;">9. <em>Concentrate giving. If you have spent time evaluating a charity, give more money to that charity instead of spreading smaller amounts among multiple charities. Charities spend time and money processing your gift and following up with future requests, newsletters, etc. The cost to process a $10 gift will be likely the same as to process a $100 gift. Overall, concentrating your gifts saves charities money. </em> This is an interesting perspective. As a charity, you may be thinking that you welcome that $10 gift because you can demonstrate success in increasing that first $10 gift to a larger gift in the coming years. If that is not the case, what can you do to engage donors so that they want to invest more with your organizaiton in the coming years?</span><br />
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<span style="font-family: Arial;">10. <em>Make a long term commitment. When a donor sees the value of their partnership with the charity they will want to be engaged for the long run. </em>Do your donors feel like partners? Similar to the prior point--how can you further engage your donors?</span><br />
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<span style="font-family: Arial;">These posts have been aimed at helping you see your charity through your donor's eyes. In the end, you are the steward of your donors funds. By working in partnership with you, they hope to see impact in the community. The more clearly you demonstrate this, the more they will want to partner with you.</span>Cindy Bergvallhttp://www.blogger.com/profile/07984158107291408595noreply@blogger.com0tag:blogger.com,1999:blog-7838508567401165711.post-20924261220818763422012-12-03T14:11:00.000-08:002012-12-03T14:11:49.702-08:00Year End Giving Tips and the Influence on Your Donors-Part 2In the last post we started looking at advice given to donors on reviewing charities and how you as the charitable organization can put your best foot forward. The articles typically site <a href="http://www.charitynavigator.org/index.cfm?bay=content.view&cpid=419" target="_blank">this listing</a> from Charity Navigator. Let's continue with the next few:<br />
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4. <em>Commitment to Accountability and Transparency-charities that follow good governance practices-such as an approval process for the CEO salary; conflict of interest policies; a whistleblower policy; etc.--are more likely to follow good practices in accomplishing their mission. </em>Your potential donor can find out information about your good practices by reviewing your IRS Form 990 either by obtaining a copy from you or the online site, <a href="http://www.guidestar.org/" target="_blank">Guidestar</a>. Look at your Form 990 and read page 5 and Schedule O. An organization following good practice will have answered affirmatively to the questions on page 5 and it will be supplemented by clear explantions of how these practices work in Schedule O. Make sure the explanations in Schedule O can be easily understood.<br />
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5. <em>Review Executive Compensation-compare it with counterparts in organizations of similar size, mission, and location </em>Charity Navigator notes that the compensation for the Executive Director for the average organization that they review is about $150,000. Their <a href="http://www.charitynavigator.org/__asset__/studies/2012_CEO_Compensation_Study.pdf" target="_blank">2012 study</a> covers this in more detail. Your own compensation review process should verify that your Executive Director and key staff's compensation is in line with organizations of similar size, mission, and location. Ocassionally our clients are asked by stakeholders to defend their Executive Director's pay package. Make sure you have the written results of your annual compensation review so you can answer any questions.<br />
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6<em>. Be careful of sound alike names. Watch out for organizations that adopt the name of a reputable organization to boost their fundraising. </em>If there is another organization with a name similar to yours, what can you do to ensure donors aren't confused. In some situations, our clients have trademarked names or logos and have legally enforced those trademarks. The legal costs might be expensive but becuase they had a national brand it was important to protect their name.<br />
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7. <em>Don't give via phone telemarketing. Typically telemarketers keep 25 to 95 cents of every dollar they raise. This is considered an inefficient way of fundraising. </em>If you use telemarketing, look at the cost. It may not be worth it. If you are the exception, and this practice is cost effective (for example, volunteer students raising money for an alumni association) recognize the negative impact that this practice may have on your donors. How can you overcome the negative perception that might be turning potential donors away?<br />
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Just three more to go and we will cover them in the next post.<br />
<br />Cindy Bergvallhttp://www.blogger.com/profile/07984158107291408595noreply@blogger.com0tag:blogger.com,1999:blog-7838508567401165711.post-77759609541864900762012-11-29T12:48:00.000-08:002012-11-29T12:48:09.921-08:00IRS posts 2013 mileage rates<span style="font-family: Arial, Helvetica, sans-serif;">The new auto rates for 2013 are:</span><br />
<span style="font-family: "Arial","sans-serif"; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin;"><span style="color: black;"></span></span><br />
<li><span style="font-family: "Arial","sans-serif"; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin;"><span style="color: black;">56.5 cents per mile for business miles driven</span></span></li>
<li><span style="font-family: "Arial","sans-serif"; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin;"><span style="color: black;">24 cents per mile driven for medical or moving purposes</span></span></li>
<li><span style="font-family: "Arial","sans-serif"; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin;"><span style="color: black;">14 cents per mile driven in service of charitable organizations</span></span></li>
<span style="font-family: "Arial","sans-serif"; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin;"></span><br />
<span style="font-family: "Arial","sans-serif"; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin;">These rates have increased 1 cent from 2012.</span>Cindy Bergvallhttp://www.blogger.com/profile/07984158107291408595noreply@blogger.com0tag:blogger.com,1999:blog-7838508567401165711.post-50710486843365900602012-11-19T11:36:00.001-08:002012-11-19T12:40:39.513-08:00Year End Giving Tips and the Influence on Your Donors-Part IAt this time of year when the focus is on giving, I have seen a number of articles in local and national magazines on selecting charities for giving. The one that I read recently sited Charity Navigator's post <a href="http://www.charitynavigator.org/index.cfm?bay=content.view&cpid=419" target="_blank">Top 10 Best Practices of Savvy Donors</a> As I read through the points I thought about how charites can be prepared for these savvy donors.<br />
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Here are the tips (in italics) and what you can do to put your best foot forward this giving season.<br />
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1. <em>Be proactive--identify what results are most important to you and be specific about the goals you expect by giving </em> Make sure your mission and your community impact are obvious to people who may not know you well. Look at your website, your facebook page, any recent newspaper articles. Can a donor easily see what you do and the impact you deliver? Do they have to read through information or click onto other pages? Most organizations communicate clearly what they do but is your impact obvious? <br />
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2. <em>Engage in dialogue-talk to the staff to learn about the group's accomplishments, goals, and challenges. </em>How easy is it for a donor to reach someone who can answer these questions? Do you have several staff they could speak with? Are there opportunities for people to volunteer with your work so that these conversations happen naturally in the course of the volunteer experience? Are your Board members equipped to have these conversations? The more opportunities that someone has to learn about your organization from a number of different contacts, the easier it will be for them to engage as a donor.<br />
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3. <em>Confirm nonprofit status. Make sure the organization is registered as a nonprofit charity. </em>You can check your organization's status <a href="http://www.irs.gov/Charities-&-Non-Profits/Search-for-Charities" target="_blank">here</a> on the IRS website at Publication 78. The IRS revoked the status of a number of small nonprofits that had not filed tax returns. We have also come across older organizations that were filing tax returns with the IRS but were not registered. Better for you to check and make sure than to be surprised by an inquiring donor.<br />
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The next few posts will continue to look at the other points.Cindy Bergvallhttp://www.blogger.com/profile/07984158107291408595noreply@blogger.com0tag:blogger.com,1999:blog-7838508567401165711.post-69900077568528863612012-11-05T13:23:00.000-08:002012-11-05T13:23:56.953-08:00Board Members & FundraisingIt is probably one of the top 5 questions our nonprofits have in relation to their Boards--how can we help our Board Members feel comfortable with fundraising? <a href="http://clairification.blogspot.com/2012/10/4-ways-to-set-board-members-up-for.html?goback=%2Egde_725897_member_179802746" target="_blank">This post</a> by Claire Axelrad at her blog Clarification answers that question in an insightful memorable way. <br />
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My favorite quote from the post:<br />
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No one is asking for money merely for the sake of money.<span style="mso-spacerun: yes;"> </span>They’re asking to serve a greater purpose and
are engaging others in a compelling story; then matching folks who are
interested in this story with a cause they value and a solution they can
endorse.</blockquote>
<br />Cindy Bergvallhttp://www.blogger.com/profile/07984158107291408595noreply@blogger.com0tag:blogger.com,1999:blog-7838508567401165711.post-64184381100571193472012-09-26T08:30:00.000-07:002012-09-26T08:30:04.811-07:00Not as Anonymous as You Thought
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<span style="font-family: Calibri;">This post from <a href="http://nonprofitupdate.info/2012/09/25/if-you-know-the-names-of-donors-you-cant-list-them-as-anonymous-on-the-990/" target="_blank">Jim Ulvog</a> reminds us
that if the nonprofit knows the name of its donor, they can’t be listed as
Anonymous of Schedule B of Form 990.<span style="mso-spacerun: yes;"> </span>Schedule
B is an attachment to your Form 990 that lists the names of all contributors
and the amount they contributed.<span style="mso-spacerun: yes;">
</span>Generally the listing is for donations over $5,000 or over 2% of total
contributions for certain circumstances.</span></div>
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<span style="font-family: Calibri;">This can be disconcerting to
nonprofits who want to honor a donors request to be anonymous.<span style="mso-spacerun: yes;"> </span>However there are a few things a nonprofit
can do.<span style="mso-spacerun: yes;"> </span>Schedule B is only required to
be submitted to the IRS.<span style="mso-spacerun: yes;"> </span>It should not
be submitted as part of the return copy that goes with your state registration.</span></div>
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<span style="font-family: Calibri;">Schedule B is not published on
Guidestar.<span style="mso-spacerun: yes;"> </span><span style="mso-spacerun: yes;"> </span>If you provide others with copies of your Form
990 make sure to extract Schedule B.<span style="mso-spacerun: yes;"> </span>A
practical tip—when you receive a PDF of your Form 990 from your accounting firm
extract Schedule B.<span style="mso-spacerun: yes;"> </span>Keep the full copy
in one location on your network that is only available to the Executive
Director or Finance Officer and make sure that the copy that does not include
Schedule B is the copy that is available to everyone.<span style="mso-spacerun: yes;"> </span></span></div>
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<span style="font-family: Calibri;">If a donor approaches you and wishes
to make an anonymous contribution, advise them of the need to report their name
to the IRS on Schedule B and inform them of the steps you take to keep Schedule
B confidential.<span style="mso-spacerun: yes;"> </span>You can also let them know
that they can make the contribution through a third party so that you would not
be aware of their identify and therefore they would truly be anonymous.<span style="mso-spacerun: yes;"> </span><span style="mso-spacerun: yes;"> </span></span></div>
Cindy Bergvallhttp://www.blogger.com/profile/07984158107291408595noreply@blogger.com0