Because of the traffic on my website www.nonprofitexpert.com I receive a lot of email. Many times email is from individuals needing specific help or the nonprofit organizations themselves or board members with a specific question. Regardless, I am happy to answer these questions and help, that is what I do.
However, I also receive quite a few emails from companies either wanting to advertise on my site, which I am very picky who I allow, or people that want to promote the next great fundraising idea that will make nonprofit organizations able to walk on easy street.
Once again I received an email telling me about this wonderful opportunity where nonprofits can create a residual income stream, blab, blab, and blab. This statement alone in and of itself is a clue as to the line of bull that is surely to follow.
The nonprofit only has to pay a one time fee to get started of $199 and then $29 a month. Then, all they have to do is get their donors and friends and enemies and people they don’t know to shop online and the money will pour in or so the claim goes. Ugh!
All this nonsense makes a huge assumption that nonprofits are going to have the time, energy and effort to convince all their donors or people involved with their organization to magically and overnight change all their ingrained buying habits that they have established over the years as well as forgo all the discounted prices they can get at Wal-Mart, Sams or other retail stores not to mention the convenience of shopping locally to go to a website no one has heard of before and where the nonprofit will only get a few pennies from purchases made.
This pitch even said the average return for active sites was a whopping $2 to $4 a month. Yep right…. So to pay for the annual cost for the first year of $547 i.e. $199 plus $29 X 12 using you have to have 138 suckers… oops I mean donors to use this lame website site to make a purchase just to break even, assuming you will get $4 back from their purchases. That is of course is with the moon in the seventh house and Jupiter is aligned with Mars which I sure happens quite often, right?
In this presentation there was also an example of how easy it would be for a nonprofit to have a residual income of $3,600 annually.
My closing comment to this bozo was for him to ask the company to provide me with a list of nonprofits that have made the quoted $3600 annually from this program after expenses. My guess is there will be no such list.
Folks, I’m sorry but there is no easy fundraising program that will make hundreds of dollars for nonprofits with little to no effort.
Regardless, I’m sure people will keep looking and I will keep getting these ridiculous emails, but then again they can become blog entries!
Showing posts with label non profit. Show all posts
Showing posts with label non profit. Show all posts
Sunday, August 8, 2010
Saturday, February 13, 2010
You Can’t Hate A Nickel, Because It’s Not A Dime!
In this economy we all feel like we are being nickel and dimed to death!
However, nonprofits shouldn’t hate a nickel, because it’s not a dime. Just be thankful you’re still getting something!
The days of going after only the “big buffalo” in fundraising are over. Billions of dollars in assets have been wiped out. Despite what you might be thinking about an economy, those dollars are gone and the mindset of individuals have changed. Notice, however, I did not say people will stop giving. I think people will continue to be generous but I do think they will be more specific in who they help.
If you will for a moment, I’d like for you chew on another phrase which is: It takes one to know one!
So, I’ve got a question for you. How many millionaire nonprofit staff members do you know? My guess is very few. So as a practical question do you think a millionaire thinks differently about giving than you might?
Let’s even unpack this more and drop down a level. Can nonprofit executive directors or professional fundraisers really appreciate what it means to give a large donation if they themselves have never given one? Does it really matter?
I am not trying to start a class warfare argument but what I am trying to do is help the reader realize that regardless of your income level I have never met a Zombie Donor!
In my job I receive phone calls or emails daily from not just nonprofit organizations but also from donors that have a specific idea of what they want to do or how they want their estate settled and are looking for answers on how best to move forward.
I am quick to tell everyone I meet that I’m not an attorney nor a CPA so I do not give legal advice. However, I am more than happy to share what I know, free I might add, as well as give links to other information or point them to other individuals I know and trust that I think can help with their individual situation.
Over the years I have talked to all sorts of interesting people including professional athletes, children of movie stars, doctors and yes even Indian chiefs. People from all walks of life and ages and almost everyone I come in contact with ultimately see as a goal to help someone else!
A real key for me taking the time to hear exactly what it is the person wants to accomplish and not pushing someone to a specific product or service.
Nonprofits might learn something from this. Instead of pushing your wants on a donor, find out what they want instead. What interests them about your organization?
Also a news flash for those that might not be aware: Just because someone has money does not mean they should give it to you just because you were kind enough to ask for it!
If you are going to get serious you have to understand that just showing up for work is not enough. You have to be willing to roll up your sleeves and put the time in that is required to make your organization a success. If you need help doing that just ask! Visit: www.nonprofitexpert.com
However, nonprofits shouldn’t hate a nickel, because it’s not a dime. Just be thankful you’re still getting something!
The days of going after only the “big buffalo” in fundraising are over. Billions of dollars in assets have been wiped out. Despite what you might be thinking about an economy, those dollars are gone and the mindset of individuals have changed. Notice, however, I did not say people will stop giving. I think people will continue to be generous but I do think they will be more specific in who they help.
If you will for a moment, I’d like for you chew on another phrase which is: It takes one to know one!
So, I’ve got a question for you. How many millionaire nonprofit staff members do you know? My guess is very few. So as a practical question do you think a millionaire thinks differently about giving than you might?
Let’s even unpack this more and drop down a level. Can nonprofit executive directors or professional fundraisers really appreciate what it means to give a large donation if they themselves have never given one? Does it really matter?
I am not trying to start a class warfare argument but what I am trying to do is help the reader realize that regardless of your income level I have never met a Zombie Donor!
In my job I receive phone calls or emails daily from not just nonprofit organizations but also from donors that have a specific idea of what they want to do or how they want their estate settled and are looking for answers on how best to move forward.
I am quick to tell everyone I meet that I’m not an attorney nor a CPA so I do not give legal advice. However, I am more than happy to share what I know, free I might add, as well as give links to other information or point them to other individuals I know and trust that I think can help with their individual situation.
Over the years I have talked to all sorts of interesting people including professional athletes, children of movie stars, doctors and yes even Indian chiefs. People from all walks of life and ages and almost everyone I come in contact with ultimately see as a goal to help someone else!
A real key for me taking the time to hear exactly what it is the person wants to accomplish and not pushing someone to a specific product or service.
Nonprofits might learn something from this. Instead of pushing your wants on a donor, find out what they want instead. What interests them about your organization?
Also a news flash for those that might not be aware: Just because someone has money does not mean they should give it to you just because you were kind enough to ask for it!
If you are going to get serious you have to understand that just showing up for work is not enough. You have to be willing to roll up your sleeves and put the time in that is required to make your organization a success. If you need help doing that just ask! Visit: www.nonprofitexpert.com
Wednesday, February 3, 2010
Nonprofit Donor Burnout
More than likely you have read quite a bit about burnout when it comes to employees or staff of non profits. Rarely, however, do you hear about the flip side of the coin and hear someone discuss donor burnout.
As a donor to many different non profits over the years I can attest to the fact that there is a real frustration with how a non profit handles their end of the agreement.
Supporting a nonprofit as a donor is a very serious commitment I do not take lightly. I have to be sure that what the nonprofit stands for is something I can be fully committed to.
If I take the next step and join a board of directors then I am literally giving a piece of myself away. While this might seem to some as being melodramatic I can assure you that my wife of twenty-three years views this quite different! Whatever I give away of myself to supporting a non profit leaves less time and quite frankly energy for her. This is a big deal!
My gift and I do see what I give as a gift, goes far beyond just my time, my energy, my talent and what most nonprofits seem to be fixated on i.e. money. It is actually something deeper and more serious and for me part of my soul. How can you quantify the worth of self someone gives to your organization?
Unfortunately, few nonprofits I have run across have ever really comprehended this level of giving or found the way to respond to where I believe that they “got it.” So I seemed destine to repeat the same old cycle:
First I find a nonprofit I think is doing good work and get excited about what they are doing and support their cause. I might attend an event or give a donation.
Second, I learn more about what the organization does and get closer to the executive director and/or staff. I might find myself helping more by donating money or sometimes I find it more rewarding to meeting a specific need of the organization.
Eventually my level of giving and interest is noticed by others and at some point I might be asked to consider being on the board. This is the critical point! The older I get the more picky I have become and quite frankly more guarded, because I know if I join a board I will consider myself being all in.
If I join I quickly learn the good, the bad and the ugly about the organization. Sometimes this in and of itself is a huge disappointment. If however there are no hidden land mines then I quickly adjust to learning more about the organization and I gage the commitment levels of others on the board while learning about the excitement and energy level of the staff running the programs.
Many times after giving lots of time and energy and money I have found that the executive director and staff begin to take for granted past donations and get comfortable being the recipients of a generous nature and just expect it to continue forever regardless of their performance or outcomes. A disconnect begins slowly. There is not the level of excitement. Everyone still knows the reason they are there is to help the cause but at this point I generally hit a wall. I don’t see others around me willing to push as hard as I am or I begin to feel like my time is just being wasted. Staff slows down and only wants to push so far. The reason is that since they are working with an all volunteer board they do not want to have to do most of the work if the volunteer board stops pushing.
At this point if I am still on the board I will rotate off and normally my giving level drops. I also have a tendency to be reflective in nature. While I am not totally second guessing my judgment I do tend to mull over if the donations I’ve given in the past and generally draw a conclusion in my own mind if it was all worth it.
I wish I could end saying I felt good after all this but honestly answer is that of feeling more confused at times than being reassured that my personal commitment was met with an equal level of acceptance. Strange isn’t it?
As a donor to many different non profits over the years I can attest to the fact that there is a real frustration with how a non profit handles their end of the agreement.
Supporting a nonprofit as a donor is a very serious commitment I do not take lightly. I have to be sure that what the nonprofit stands for is something I can be fully committed to.
If I take the next step and join a board of directors then I am literally giving a piece of myself away. While this might seem to some as being melodramatic I can assure you that my wife of twenty-three years views this quite different! Whatever I give away of myself to supporting a non profit leaves less time and quite frankly energy for her. This is a big deal!
My gift and I do see what I give as a gift, goes far beyond just my time, my energy, my talent and what most nonprofits seem to be fixated on i.e. money. It is actually something deeper and more serious and for me part of my soul. How can you quantify the worth of self someone gives to your organization?
Unfortunately, few nonprofits I have run across have ever really comprehended this level of giving or found the way to respond to where I believe that they “got it.” So I seemed destine to repeat the same old cycle:
First I find a nonprofit I think is doing good work and get excited about what they are doing and support their cause. I might attend an event or give a donation.
Second, I learn more about what the organization does and get closer to the executive director and/or staff. I might find myself helping more by donating money or sometimes I find it more rewarding to meeting a specific need of the organization.
Eventually my level of giving and interest is noticed by others and at some point I might be asked to consider being on the board. This is the critical point! The older I get the more picky I have become and quite frankly more guarded, because I know if I join a board I will consider myself being all in.
If I join I quickly learn the good, the bad and the ugly about the organization. Sometimes this in and of itself is a huge disappointment. If however there are no hidden land mines then I quickly adjust to learning more about the organization and I gage the commitment levels of others on the board while learning about the excitement and energy level of the staff running the programs.
Many times after giving lots of time and energy and money I have found that the executive director and staff begin to take for granted past donations and get comfortable being the recipients of a generous nature and just expect it to continue forever regardless of their performance or outcomes. A disconnect begins slowly. There is not the level of excitement. Everyone still knows the reason they are there is to help the cause but at this point I generally hit a wall. I don’t see others around me willing to push as hard as I am or I begin to feel like my time is just being wasted. Staff slows down and only wants to push so far. The reason is that since they are working with an all volunteer board they do not want to have to do most of the work if the volunteer board stops pushing.
At this point if I am still on the board I will rotate off and normally my giving level drops. I also have a tendency to be reflective in nature. While I am not totally second guessing my judgment I do tend to mull over if the donations I’ve given in the past and generally draw a conclusion in my own mind if it was all worth it.
I wish I could end saying I felt good after all this but honestly answer is that of feeling more confused at times than being reassured that my personal commitment was met with an equal level of acceptance. Strange isn’t it?
Tuesday, January 26, 2010
Preserving your Tax-Exempt Status
Most tax-exempt organizations, other than churches, must file a yearly return or notice with the IRS. If an organization does not file a required annual return for three consecutive years, the law provides that it automatically loses its tax-exempt status. Loss of exempt status means an organization must file income tax returns and pay income tax, and its contributors will not be able to deduct their donations.
What must be filed this year depends on the organization’s financial activity:
Financial activity Filing requirement
Gross receipts normally ≤ $25,000
990-N (e-Postcard)
Gross receipts > $25,000 and < $1 million, and
Total assets < $2.5 million
990-EZ or 990
Gross receipts ≥ $500,000, or
Total assets ≥ $1.25 million
990
Private foundation (regardless of financial activity)
990-PF
In 2010 the tax-exempt status of any non-profit that has not filed the required form in the last three years will be revoked.
The Pension Protection Act of 2006 requires that non-profit organizations that do not file a required information form for three consecutive years automatically lose their Federal tax-exempt status. This requirement has been in effect since the beginning of 2007.
If an organization loses its exemption, it will have to reapply with the IRS to regain its tax-exempt status. Any income received between the revocation date and renewed exemption may be taxable.
Small non-profit organizations with annual receipts of $25,000 or less can file an electronic notice, Form 990-N ( e-Postcard). They will need only a few basic pieces of information to file: the organization’s employer identification number, its tax year, legal name and mailing address, any other names used, an Internet address if one exists, the name and address of a principal officer and a statement confirming the organization's annual gross receipts are normally $25,000 or less.
Tax-exempt organizations with annual receipts above $25,000 are required to file the Form 990 or the Form 990-EZ annually. Private foundations file Form 990-PF. Churches and integrated auxiliaries of churches are not required to file Form 990-series returns or notices.
Form 990-series returns and e-Postcards, are due by the 15th day of the 5th month after an organization’s tax year ends. For more information click here.
DISCLAIMER: This information is not intended to provide legal or accounting advice, or to address specific situations. Please consult with your legal or tax advisor to supplement and verify what you learn here.
What must be filed this year depends on the organization’s financial activity:
Financial activity Filing requirement
Gross receipts normally ≤ $25,000
990-N (e-Postcard)
Gross receipts > $25,000 and < $1 million, and
Total assets < $2.5 million
990-EZ or 990
Gross receipts ≥ $500,000, or
Total assets ≥ $1.25 million
990
Private foundation (regardless of financial activity)
990-PF
In 2010 the tax-exempt status of any non-profit that has not filed the required form in the last three years will be revoked.
The Pension Protection Act of 2006 requires that non-profit organizations that do not file a required information form for three consecutive years automatically lose their Federal tax-exempt status. This requirement has been in effect since the beginning of 2007.
If an organization loses its exemption, it will have to reapply with the IRS to regain its tax-exempt status. Any income received between the revocation date and renewed exemption may be taxable.
Small non-profit organizations with annual receipts of $25,000 or less can file an electronic notice, Form 990-N ( e-Postcard). They will need only a few basic pieces of information to file: the organization’s employer identification number, its tax year, legal name and mailing address, any other names used, an Internet address if one exists, the name and address of a principal officer and a statement confirming the organization's annual gross receipts are normally $25,000 or less.
Tax-exempt organizations with annual receipts above $25,000 are required to file the Form 990 or the Form 990-EZ annually. Private foundations file Form 990-PF. Churches and integrated auxiliaries of churches are not required to file Form 990-series returns or notices.
Form 990-series returns and e-Postcards, are due by the 15th day of the 5th month after an organization’s tax year ends. For more information click here.
DISCLAIMER: This information is not intended to provide legal or accounting advice, or to address specific situations. Please consult with your legal or tax advisor to supplement and verify what you learn here.
Monday, January 11, 2010
Nonprofit Sins
One of the worst possible sins a nonprofit can commit is that of not saying:“Thank You!” in a language that their donors respond to.
It is the responsibility of the nonprofit, not the donor, to make the connection in order to build a lasting relationship. Donors need to be fed more than just information, but also need to be made to feel a part of the organization.
Nonprofits like many individuals tend to think in a linear mode. Meaning they see the world from left to right, from smallest to largest, and in alphabetical order. However, while this seems perfectly clear the problem is that not all donors will respond to what seems to be nothing but a rote response that required no thinking at all on the part of the nonprofit.
Some donors are fragmented thinkers meaning their life is not one that simply moves from point “a to b” in a straight line. However, rote responses i.e. a form thank you letter or donation receipt does nothing to stimulate a sense of appreciation but instead creates a vacuum.
Likewise, I am reminded of an animated cartoon character named Droopy, an anthropomorphic dog, a basset hound with a droopy face. This unassuming character is probably closer to many of your donors than you might realize. You mistake the monotone response of: “I’m so happy” as one that doesn’t care about your nonprofit only to find like in the cartoon this little guy has some incredible strength and is not bad after all, and he really is happy.
So, it is the responsibility of the nonprofit to find out how to satisfy their donor! Is your donor happy?
If nonprofits fail to take this challenge head on then they will be in purgatory until they learn the lessons of what it means to be thankful for every gift and individual.
To learn more visit: www.nonprofitexpert.com
It is the responsibility of the nonprofit, not the donor, to make the connection in order to build a lasting relationship. Donors need to be fed more than just information, but also need to be made to feel a part of the organization.
Nonprofits like many individuals tend to think in a linear mode. Meaning they see the world from left to right, from smallest to largest, and in alphabetical order. However, while this seems perfectly clear the problem is that not all donors will respond to what seems to be nothing but a rote response that required no thinking at all on the part of the nonprofit.
Some donors are fragmented thinkers meaning their life is not one that simply moves from point “a to b” in a straight line. However, rote responses i.e. a form thank you letter or donation receipt does nothing to stimulate a sense of appreciation but instead creates a vacuum.
Likewise, I am reminded of an animated cartoon character named Droopy, an anthropomorphic dog, a basset hound with a droopy face. This unassuming character is probably closer to many of your donors than you might realize. You mistake the monotone response of: “I’m so happy” as one that doesn’t care about your nonprofit only to find like in the cartoon this little guy has some incredible strength and is not bad after all, and he really is happy.
So, it is the responsibility of the nonprofit to find out how to satisfy their donor! Is your donor happy?
If nonprofits fail to take this challenge head on then they will be in purgatory until they learn the lessons of what it means to be thankful for every gift and individual.
To learn more visit: www.nonprofitexpert.com
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