Monday, November 17, 2008
With the downturn in the stock market, the ripple effect is widespread. Most grantmaking foundations were invested in the stock market. They experienced the same losses as the average investor. The amount of loss depends on the investment strategy. Some foundations lost 30% in the downturn. How does a ministry approach a foundation which has experienced this downturn in its own portfolio.
First, the selection of the foundations you seek to apply to remains the critical fact. You need to apply to foundations that are most likely to fund your cause. Christian foundations want to fund Christian organizations. That is why the Christian Foundation Grants (www.christianfoundationgrants.com) database is so essential. It helps you find those foundations more likely to give to your organization.
Second, realize that foundations fund their grants in cycles. For many, they've already budgeted some of their giving into 2009. Now is a good time to search for those foundations most likely to fund you and then to get your grant submitted. There is still more bad news to come in the markets. With the coming of more bad news, we are likely to see foundations pull back in their giving even more. So the message? Apply now.
Third, realize that foundations are going to be more selective in their grants. They'll become more mission focused. This means that you'll need to make sure that your mission is clear, your need compelling and the results measureable. Can you measure your results? Is there a clear and compelling need, and solution?
Fourth, realize that foundations are run by people. They face the same uncertainties in the market as you do. Build the relationships with the funders. You don't have to make an "ask" the first time you meet with them. Get to know them. I know one ministry that has done such a good job serving a foundation's leadership that he is now called upon to help them review grants. That's what I call earning a position of trust.
Fifth, show your resourcefulness. Look for alternative ways to fund your ministry whether its by product sales, earned income or unsual non cash donations. We've seen one ministry pursue the gifts of business inventory donations. In the coming market, we are likely to see lots of excess inventory, which would make a great gift for your ministry. See www.idonate.com for more information.
Finally, start now. Don't delay.
--William High is the President/General Counsel of the Servant Christian Community Foundation (www.servantchristian.com).
Sunday, November 16, 2008
Blogs are a great way to let people know about your ministry without having to sell them on it. The key to a blog is letting people see that you are an expert in the area that you serve. If you are with a rescue mission, write about the plight of the homeless. If you are in youth ministry, write about the challenges and opportunity of working with you. You get the idea.
Once you've decided to do a blog and let all the world know that you are an expert, how do you increase blog traffic. The ideas behind increasing blog traffic are not hard. They include the following:
1. Post regularly.
2. Link to other bloggers in your posts.
3. Write titles with phrases that people are searching for
4. Write as an expert not as an advertiser
5. Write about the events of the day to show that you are on top of what is going on
6. Write about actual news events and provide insight about how it relates to your area
7. Add your blog to your email signature
8. Let people comment on your blog
9. Post regularly (yes, I know I repeated it, but you get the idea)
10. Include your picture with your blog; it gives you credibility
11. Write short posts--200-300 words
12. Make it fun and interesting to read.
--William High is the President/General Counsel for the Servant Christian Community Foundation (www.servantchristian.com).
--
Tuesday, October 28, 2008
According to an analysis from Convio Inc., a manufacture of online donation software, online giving to nonprofits is anticipated to exceed $3 billion this holiday season. This analyst is based on a new online giving survey by JupiterResearch and from historical data from the Chronicle of Philanthropy.
The survey reports that more than 89 million people plan to give online during the holidays. Almost 7 out of 10 people plan to give the same amount they do every year, while 33% say they will give less this year. A few of the organizations that donors plan to support include social services, faith-based organizations, and diseases and health service organizations.
Gene Austin, the chief executive officer at Convio says, “With consumer dollars being tight and the competition for donations growing, the efficiency and effectiveness of the Internet […] continues to grow in importance for donors and organizations alike.” With that in mind, as the holiday season approaches, nonprofits should consider how to appeal to an online audience and make sure that the organization’s online donation process is simple and easy to understand.
Information taken from: “Online Giving Still Expected to be Brisk this Holiday Season.” Sacramento Business Journal. www.bizjournals.com.
-- Ashley High is a Research Assistant at Christian Foundation Grants (www.christianfoundationgrants.com) which is a subscription database of foundations that provide grants to faith based organizations. iDonate.com is a website (www.iDonate.com) that allows ministries to receive non cash gifts online.
Saturday, October 18, 2008
In case you had not heard, cash is tight. Credit is tight. The stock market is unpredictable.
On the other hand, many are rushing in to predict what giving will do in the coming months. Some say up. Some say down. Some say it will stay the same. Don't let the prognosticators fool you. Things are changing.
We live in an age of relatively stable if not declining birth rates here in the United States. Meanwhile our population continues to age. In the coming years, some demographers tell us that we'll have a population where 19% of our people will be 65 and up. What does this mean for charity? We'll have, relatively speaking, less people and those that we do have will be older. In short, cash giving will remain squeezed regardless of the economy or the predictions about it.
We need to look at giving another way. The simple facts tell us that America's wealth is not in cash--it's in non cash assets. Over 90% of America's wealth is in non cash. Meanwhile, ministries tend to fish in the smallest pond--cash. It's time to fish in the bigger pond.
The non cash asset giving is currently $40+ billion dollars per year. Translation? It still remains largely untapped. What do we mean by non cash? It means everything from cars, including junk cars to collector cars, to timeshares, to collectibles, to jewelry, to RVs, to boats, to business inventory....the list goes on.
Recently, we had a ministry sharing warehouse space with a business. As it turns out, we taught them to ask the question about what kinds of assets the business held. As things turned out, the business just so happened to have acquired another competitor. In the acquisition, they also took upon all the inventory, but it turned out some of the inventory would not match their current product lines. The company was left with a couple of options: send it to the landfill and be a bad corporate citizen or donate it. They chose the latter, got a nice tax deduction, solved a problem for themselves and helped one of their favorite charities. Everybody wins.
Non cash giving programs are relatively easy to start. They are a matter of having a website and subscribing to an online non cash giving provider. The most comprehensive in nature is www.idonate.com. For an example of their work, visit www.equip.org, then click on donate now, followed by non cash donations. In a matter of days, Equip was ready to roll and began receiving non cash donations almost immediately.
It's time to start thinking outside of the cash box and turning to non cash.
--William High is the President/General Counsel of the Servant Christian Community Foundation (www.servantchristian.com).
Monday, October 13, 2008
Today, the Internet connects people from around the world and because of this, websites should serve the needs of both English and foreign language speakers. Adding automatic language translation to your website will serve your international guests and provide an easy way to increase your website traffic. There are at least two ways to add language translation to your website.
The first way is to use Google’s Translate service. While it is not always particularly accurate, it does offer translation for 23 languages. Google also has a free Google Translate widget which can be added to your website. Digital Inspiration also has a widget with international flags that provide links for translation for nine countries’ languages.
The second option is to include a custom script on each page of your website that creates links to translate that page. The advantage to this more complicated method is that the translated pages of your website can be indexed by Google. This will lead to a higher page ranking for your website when search terms are entered in languages other than English. However, the main disadvantage of this method is that most custom scripts cost money and necessitate some custom configuration of your website.
One website that creates translation scripts and provides translation flag links at the bottom of your website pages is called WebSiteTranslator and can be ordered for $65 dollars. This tool provides translations for 24 languages and has better translations than Google.
The WebSiteTranslator script is a great choice if you want your website to have an international presence and the capability to be searched by foreign speaking guests. However, Google Translation is another good option if you cannot currently afford the time or money to install WebSiteTranslator or another similar script. Both devices will increase site visits, page views, and will be appreciated by your international guests.
Information taken from: Evan Donovan. “Guide to Adding Language Translation to Your Ministry’s Website.” www.urbanministry.org.
-- Ashley High is a Research Assistant at Christian Foundation Grants (www.christianfoundationgrants.com) which is a subscription database of foundations that provide grants to faith based organizations. iDonate.com is a website (www.iDonate.com) that allows ministries to receive non cash gifts online.
Friday, October 10, 2008
In uncertain economic times, it is often difficult to make donations with the same frequency as in better days; however, giving money is only a small portion of your overall giving. Your time, talents, networks, enthusiasm, and spreading the word are also ways to give to charities. There are at least ten ways in which you can still continue to give in difficult times:
10. Conserve Resources.
Remember to turn off lights and computers you are not using. Use energy-saving light bulbs, reusable shopping bags and water bottles. Write family members’ names on cups and use the same cup all day instead of washing them after each meal. Turn off the water when you brush your teeth.
9. Donate stuff.
Donate clothes that are too small to thrift stores, charities, daycares, and churches. Consider giving stuffed animals and children’s books to hospitals. Old prom dresses or bridesmaid dresses can be donated to The Glass Slipper Project to provide dresses for girls who are unable to afford prom dresses.
8. Spend Gift Money on Charity.
Instead of sending cash for someone’s birthday, make a charitable donation in the birthday person’s name or send him a gift certificate so he can choose his own recipient.
7. Volunteer Your Time.
The average value of volunteer work is over $18 dollars per hour, according to Volunteer Match. Volunteer to help around the office, pick up donated items, become a museum guide or classroom parent, help at a soup kitchen, or join a board.
6. Volunteer Your Talents.
Consider what your talents are and how you could use them to help a charity. For example, someone who likes computers could build a website or a Twitter feed for their favorite charity. Other ideas include writing articles for a charity newsletter, designing a logo, helping with bookkeeping, or making quilts and knitted caps for a Neonatal Intensive Care Unit.
5. Use Your Entertainment Budget to Join the Zoo or Museum.
Choosing your entertainment can also support charity. For example, some zoos (like the Brookfield Zoo in Chicago) use their membership fees to support conservation efforts worldwide.
4. Join the 29-Day Giving Challenge.
Members of the 29-Day Giving Challenge commit to giving a gift every day for 29 days. Many people blog about their giving on the site, providing many ideas and inspiration for giving.
3. Find a Social Action.
Social Actions combines 30 websites that provide volunteer opportunities to support a cause, including Donors Choose, volunteermatch, idealist.org, change.org, and kiva.org. Search social actions by location, cause, or keyword.
2. Vote in Local Elections.
While most people know who the presidential candidates are, they are not as informed about their local candidates. These people will affect your favorite causes, so educate yourself about the issues and vote for people who will further the causes you care about.
1. Be the Change You Want to See in Your Community.
Sharon Schneider, the Vice President of Client Services at Foundation Source, writes “Without spending one dime, we can all make others feel welcome in our meetings and our conversations and out communities […] These small things are what we call being ‘gracious,’ or ‘charitable.’ To be truly charitable, we don’t have to give our money so much as we have to give of ourselves.”
Information taken from: Sharon Schneider. “Top 10 Ways to be Charitable When Money is Tight.” www.thephilanthropicfamily.com.
-- Ashley High is a Research Assistant at Christian Foundation Grants (www.christianfoundationgrants.com) which is a subscription database of foundations that provide grants to faith based organizations. iDonate.com is a website (www.iDonate.com) that allows ministries to receive non cash gifts online.
Wednesday, October 08, 2008
I just got my retirement fund statement. It was down by 20%. My statement is certainly a reflection of the overall stock market.
What does it mean for the non profit? In 2007, the stock market was hot. Consequently, we saw lots of gifts of publicly traded stock and mutual funds. In 2008, we simply don’t expect many of those kinds of gifts.
The decline in publicly traded gifts is not the end of the story. Rising gas prices and grocery prices means that people simply have less cash. The backbone of many non profits are the monthly and faithful givers. In short, giving will be squeezed. It’s difficult to predict how much at this point.
What should the non profit do? Cut expenses. Be prepared as well to determine what expenses can be cut if giving projections are not met. On the proactive side, a recent article from the Topeka Capital Journal (Non Profit Agencies Feel the Pinch, Monday, October 6, 2008) encourages non profits to look for creative ways to raise money.
Innovative fund raising projects include selling unwanted real estate, donor awareness luncheons, or pursuing more non cash donations. If you have real estate, consider whether the building is a necessity or a luxury. Generally, it is much cheaper to be a renter than an owner. Plus, the cash from the sale of the building can be used to build a capital reserve.
Donor awareness luncheons build on the power of existing donors. They can invite their peers, share the vision of the organization and push for involvement. This peer to peer fundraising makes donor acquisition dramatically easier—even in a difficult funding climate.
Finally, pursuing non cash funding remains a relatively untapped arena. Through our partner, www.idonate.com, we’ve recently seen the following gifts:
--a 49 foot yacht with a market value of $249,000;
--electrical equipment inventory worth potentially $200,000;
--restaurant equipment that had been collecting rust;
--hundreds of cars, including junk cars.
Now is the time to be making these changes—before the impact of the downturn hits in full force.
--William High is the President of the Servant Christian Community Foundation (www.servantchristian.com). Christian Foundation Grants (www.christianfoundationgrants.com) is a subscription database that provides resource to non profits looking for grants.
Tuesday, October 07, 2008
In the U.S., charitable giving has a long and illustrious history that includes community participation, neighbors settling new land helping one another, and most recently, giving circles. Giving circles are a recent but growing trend in philanthropy. In 2006, they generated $13 million dollars for community projects. A giving circle is “a group of individuals who come together to pool their dollars, learn together about the community and philanthropy, and then decide collectively where to give their money.”
Due to the weakened economy, giving circles will become more effective as they allow members to make large donations to nonprofits.
For example, in Maryland a prosperous giving circle is the Anne Arundel Women Giving Together (AAWGT). It was started in 2005 with just a small group of women, but now has grown to include more than 130 women from diverse backgrounds and with an age range of 30 to 80 years old. Every month, AAWGT members meet to learn about issues in the community, local nonprofits, and to find volunteer opportunities. In just two rounds of grantmaking, AAWGT has given nearly $100,000 away.
Giving circles allow members to participate in philanthropy in a personal way. Gloria Martin-Pressman, the president of AAWGT says, “I feel like I am doing more than just writing a check.” Also, giving circles are a good way to meet “a lot of really cool people, and a way for a new resident of the community to quickly become active in the community,” says Sharon Stewart, one of the AAWGT founders.
Giving circles provide a way for donors of all ages, races and income levels to participate in philanthropy. As Mrs. Martin-Pressman says, “It is not about being Bill Gates, we can all do something – a ten dollar gift card for the battered women’s shelter can make a real impact.”
Information taken from: Bess Freedlander Langbein. “Giving for Good: Giving Circle Brings Local Women Together.” www.hometownannapolis.com.
-- Ashley High is a Research Assistant at Christian Foundation Grants (www.christianfoundationgrants.com) which is a subscription database of foundations that provide grants to faith based organizations. iDonate.com is a website (www.iDonate.com) that allows ministries to receive non cash gifts online.
Wednesday, September 24, 2008
Two weeks ago, the IRS released the newest version of Form 990-EZ, which is the short version of its tax form and is for nonprofits with less than $1 million in 2008 revenue. The new form and its instructions are similar to the earlier version of the Form 990-EZ, but its updated schedules correspond with the new Form 990, which also takes effect in the 2008 tax year.
The filing threshold of the longer Form 990 was previously set at $100,000, but that threshold has been considerably raised. For the 2008 tax year, groups with less than $1 million in revenue can file the shorter Form 990-EZ. However, that threshold will drop to $500,000 for the 2009 tax year.
The release of Form 990-EZ comes less than a month after the IRS finalized instructions for the new Form 990, which received its first major update in more than 25 years.
Information taken from: Peter Panepento. “IRS Releases New Form 990-EZ." The Chronicle of Philanthropy. http://philanthropy.com.
-- Ashley High is a Research Assistant at Christian Foundation Grants (www.christianfoundationgrants.com) which is a subscription database of foundations that provide grants to faith based organizations. iDonate.com is a website (www.iDonate.com) that allows ministries to receive non cash gifts online.
Monday, September 22, 2008
Despite the common assumption that donors judge charities based on the organization’s overhead costs, a recent study of wealthy donors indicates otherwise. This survey, which was carried out by the University of Pennsylvania’s Center for High Impact Philanthropy, looked at how the nation’s wealthiest donors choose which charities to support, how they find information about those organizations, how they judge their donation’s impact, and the roles they wish to play at that nonprofit.
Thirty-three individuals who give away an average of $1.5 million every year were interviewed for this study. Many of these people had built businesses in finance, technology, pharmacology, and other fields. Also, most of these individuals understood that charities need money for overhead and other operating expenses and were willing to pay for it.
Social Contacts:
A few donors said they make their largest donations only after being personally involved with the charity; however, most donors said they gave to nonprofits that peers and other social contacts had suggested rather than doing research or looking up nonprofits on a watchdog organization. “Knowing someone on the board or from your peer group that recommends the issue or organization” was listed as important or very important by 26 of the donors.
Many donors said they needed better information on the organizations they support, but they do not aggressively look for the information. Other people said the information they were given on an organization’s effectiveness was not useful.
There are two main reasons donors are reluctant to ask for more information: They do not want to create unrealistic expectations from the charity, or they are afraid of unwanted solicitations. Many donors feel like they are deluged with donation requests, or they find themselves unable to free themselves from a charity once the donor has decided to stop supporting it.
Tangible Projects:
Donors often find it difficult to see the results of their donations. Because of this, some individuals are more inclined to give to tangible or time-limited projects such as buildings or scholarships.
Donors also are hesitant to ask for data that shows an organization’s effectiveness simply because the donor is afraid to burden the charity with extra demands, appear to be a “high-maintenance,” or act as if they do not trust the organization.
As for formal evaluations, some donors said that the data in those evaluations is often poorly presented, does not have the right information, or is not needed.
When questioned about their roles as donors, 9 of the 33 donors said they do not think of themselves as philanthropists, but as “community volunteers” or “community supporters.” Also, many donors said their involvement with the charity has grown as they have gained more experience, time, and wealth. Most donors said they want to help raise awareness for the nonprofit or work with other donors on charitable projects.
To read the survey “I’m Not a Rockefeller: 33 High Net Worth Philanthropists Discuss Their Approach to Giving,” visit the Center for High Impact Philanthropy’s website.
Information taken from: Holly Hall. “New Study Sheds Light on What Wealthy Donors Care About; Many Say They Will Support Operating Costs.” The Chronicle of Philanthropy. http://philanthropy.com.
-- Ashley High is a Research Assistant at Christian Foundation Grants (www.christianfoundationgrants.com) which is a subscription database of foundations that provide grants to faith based organizations. iDonate.com is a website (www.iDonate.com) that allows ministries to receive non cash gifts online.