May 2011 Entries

IRS Qualifications for Non-Profit Status

     Non-profit and charitable organizations play an essential role in the economic and collective well-being of our local communities, our nation and the world. Nonprofits are designed to meet a societal need the government is not meeting or is not meeting well. They provide a structure for people to contribute their time, resources and expertise for a greater good. In short, non-profit corporations are for people, to help them achieve some common purpose.     The term non-profit does not mean the company isn't financially feasible. Non-profit organizations are a specifically defined type of corporation registered with the Internal Revenue Service (IRS)....

Should you pay a grant writer by percentage?

A frequently asked question by non-profits about grant writing is can you pay a grant writer a percentage of the grant? In the for-profit marketplace, people are frequently paid on commission.  It’s a standard mode of operation for sales executives to be paid a base salary, plus commission. In other words, they are paid a percentage of what they bring in.  In the non-profit arena, some consider this practice to be unethical. Donor trust is vitally important. To earn and keep that trust, every aspect of the non-profit activity must be absolutely ethical. Nowhere is ethical behavior more essential, nor...

How to Fail at Donor Relationships—Part I

Not long ago a ministry approached me wanting a grant. This is not a new happening. I’m used to the idea.

How to Fail at Donor Relationships—Part II

Ron had finally managed to set up what he thought was one of those mountaintop meetings—a key major donor.  He thought he’d arrived.  This man was known to be generous and quick to give.     But Ron was nervous.  He didn’t want to botch it.  So he called me for advice.  I told him simply, “Ron, ask questions, and listen.  Talk less.”  That was the extent of my advice.     Ron was an eager student and promised me that he would follow my advice.  The big day arrived—the appointed time of the meeting.  Afterwards, Ron was the first to call me.  He...

Why Can’t Donors Be Generous?

     The look was twisted, passionate, and intense.  His desire was for the gospel of Christ to advance all around the world, and in his own immediate neighborhood.  He had a plan.  He had curriculum.  He had people following, and people to lead.  All it seemed that he needed was resources.  Money.      So he pleaded with me:  “I just need my donors to give.  I just need resources. “  He couldn’t understand why they couldn’t see the vision.      However, I wonder if the problem really rested with the donors.  Did they really lack vision?  Was it that they could not...

Dogfood Generosity

Dusty, our golden retriever, has two favorite times of day—breakfast and dinner.  That’s all that he gets.  The vet says it will keep him trim, and so far that is the case.       In those two times of the day, Dusty devours his food.  We’ve timed it—less than 30 seconds.  But there’s a twist.  Every now and then, instead of filling his bowl, we’ll put the entire bucket of dog food out—all 20 pounds of it.       Now if you’ve seen Marley and Me, you’ve witnessed the insatiable hunger of a big dog.  They can demolish an entire bag of dog...

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