Monday, May 31, 2010

Memorial Day


The American River looking to the H Street bridge.
Have a wonderful Memorial Day!

A very nice reflection on this day’s meaning from Mark Helprin in the Wall Street Journal.

An excerpt.

“In American military cemeteries all over the world, seemingly endless rows of whitened grave markers stand largely unvisited and in silence. The gardeners tend the lawns, one section at a time. Even at the famous sites, tourism is inconstant. Sunsets and dawns, winter nights, softly falling snow, and gorgeous summer mornings mainly find the graves and those who lie within them protected in eternal tranquility. Now and then a visitor linked by love, blood, or both will come to make that connection with the dead that only love can sustain.

“Sometimes you see them, quiet in some neglected corner beneath the trees or on a field above the sea, but numbers and time make this the exception. If not completely forgotten, the vast ranks of Civil War dead are now primarily the object of genealogy and historians, as the fathers and mothers, women, children, and brothers who loved them are now long gone. As it is for everyone else it is for the dead of all the wars, and neither proclamations nor holidays nor children innocently placing flags can cure it.

“Nonetheless, a universal connection links every living American with those who have fallen or will fall in American wars and overrides the lapses in sustaining and honoring their memories. We are and shall be connected to them by debt and obligation. Though if by and large we ignore the debt we owe to those who fell at Saratoga, Antietam, the Marne, the Pointe du Hoc, and a thousand other places and more, our lives and everything we value are the ledger in which it is indelibly recorded. And even if we fail in the obligation, it is clear and it remains.”

Saturday, May 29, 2010

Charitable Giving Prediction

Reuters says it is going up this year, and if so, that is very good news.

An excerpt.

“(Reuters) - Charitable giving by Americans fell about 5 percent last year to $217.3 billion, but is forecast to rebound by up to 4.5 percent in 2010, according to a new report released on Thursday.
U.S.

“The Center on Wealth and Philanthropy at Boston College said in its report that individual giving this year is expected to grow to between $222 billion and $227 billion as the United States emerges from its worst recession in decades.

"2010 may just turn out to be the beginning of good news for fundraisers and charities. But it may not be until 2011 that we see the amount of individual giving returning to its pre-recession 2007 purchasing power," said Paul Schervish, the center's director.

“In 2008, individual charitable giving fell about 6 percent from the year before to $228.5 billion, the report found.

“John Havens, a senior research associate at the center, said it would be some time before the decline in giving in 2009 and 2008 could be reversed.

"Charitable giving in the first two quarters of 2010 seems to be on an uptick. However, growth may not continue the rest of the year if the fiscal crisis in Europe brings a second recessionary dip to the United States," he said.”

Friday, May 28, 2010

Volunteers

It is always a good strategy to get local business people involved as volunteers in local nonprofits and the Taproot Foundation has developed an innovative way to do that, profiled by the Leader to Leader Institute as their Innovation of the Week.

An excerpt.

“Peter Drucker strived to make business leaders see the community as the responsibility of the corporation. He called on leaders to embody "the Spirit of Performance" by exhibiting high levels of integrity in their moral and ethical conduct; focusing on results; building on strengths; and leading beyond borders; ultimately serving the common good.

“Leading beyond borders, the Taproot Foundation serves the common good by connecting talented professionals to their community through skills-based volunteerism.

“Taproot President and Founder Aaron Hurst recognized that nonprofits were doing inspiring and fulfilling work, yet in many cases, they lacked additional skills and resources needed to accomplish their missions.

“Hurst also realized that there was a huge wealth of untapped talent in business professionals who had skills that nonprofits needed. The question was, 'How do we leverage these skills?'

“In 2001, 40 years after his grandfather, Joseph E. Slater, wrote the original blueprint for the Peace Corps, Hurst created the Taproot Foundation, which works to lead, mobilize and engage professionals in pro bono service that drives social change.

"When I started Taproot, I was incredibly inspired by all of the work nonprofits were doing to support our communities," says Aaron Hurst. "I wanted these nonprofits to have access to the services they needed for success."

“According to a 2009 national study by Deloitte (Volunteer IMPACT Survey), 95% of nonprofits say their social impact would grow with pro bono capacity building support.”

Thursday, May 27, 2010

Nonprofit Concentration Often Hurts Downtowns

The community discussion revealed in this story from the Maui News—while reflecting the situation in the Hawaiian town—also resonates with a Sacramento situation.

In Sacramento, it is accepted fact—by local business and residential communities—that the concentration of homeless and other social service nonprofits in the Richards Blvd/12th Street/North Sacramento vicinity has severely degraded the quality of life for businesses and residents in and around the area.

This negative impact extends to downtown where panhandling, loitering, and related crime have added to the long-term difficulty of renewing the lower K Street area.

Helping the less fortunate or those who have fallen on hard times is an important aspect of community and individual compassion and charity; but it is not something that should be at the expense of the public safety or economic viability of the larger community.

Helping another should not harm someone else.

An excerpt from the Maui News.

“WAILUKU - Even as the makeover of Wailuku town continues in a decades-long redevelopment project, some merchants and residents expressed concern Friday that a concentration of social services in the area could attract homelessness and crime.

“Wailuku either already is or will soon become home to a halfway house, housing for the developmentally disabled, a residential mental health care center, a free clinic, a battered women's shelter and a soup kitchen, said resident and commercial broker Susan Halas.

"I'm not advocating kicking any nonprofit out, not at all, but maybe we should consider that we are at a tipping point," Halas said when reached by phone Friday. "At some point, if you only have people there because they are receiving assistance, if nonprofits occupy a large percentage of your available space, then it becomes difficult for for-profits to come in."

“But Wailuku businessman Richard Dan said Market Street was in no way a new hotbed of crime.

“Dan agreed there is a problem with "annoying" drunks at the privately owned banyan tree park at the corner of Market and Vineyard streets but said that overall the complaints are overblown.

"They are trying to say there are junkies nodding off in the alleys, and that's not the truth," Dan said.

“The Maui Redevelopment Agency has adopted a plan for the 60-acre area calling for mixed use, such as buildings that combine residential, business, office and retail functions. But Executive Director of Wailuku Main Street Association, Jocelyn Perreira said the group still has a way to go toward its goal.

“Some residents and merchants blame the MRA - a recommending agency for redevelopment in Wailuku - for the influx of nonprofits to the area. Others say it's still too early to pass judgment on the effects of a master plan developed years ago.”

Wednesday, May 26, 2010

Deep Donor Data Mining

It has been the standard tool for many years in the fund raising business and it is a tool I believe is very intrusive and should not be used.

Donating money to a cause is a very personal and a very wonderful example of individuals contributing to the common good without any form of coercion, and because of that, donors should be treated with gratitude and respect rather than have every available personal bit of information extracted from existing databases to manipulate them into donating more.

This article in the Wall Street Journal indicates how deep the research can go.

An excerpt.

“Whether a patient comes in for a gall-bladder operation or to have a baby, the routine remains the same for staff at Sharp HealthCare hospitals in San Diego. The front desk checks insurance records to make sure the bills get paid on time. Nurses take vitals and tag their charges with a bar-coded wristband. And behind the scenes, fund-raisers scan the assets of each patient -- to find out whether they're "megarich," "wealthy" or merely "comfortable."

“While the folks checking in don't know it, the nonprofit hospital chain is hunting for prospective donors. Armed with powerful data-mining software, staffers screen admissions records to find wealthy patients who've shown prior interest in the hospital. Those who make the cut may enjoy a bedside visit from a "patient-relations director" who offers perks like free parking passes for visitors.

“It's all about establishing a relationship at the point of service, says Bill Littlejohn, the hospital foundation's CEO. "We've gotten many letters and gifts from people who said, 'It was so nice you stopped by,'" he says.

“When your favorite nonprofit isn't busy saving the whales, chances are it's making a serious behind-the-scenes effort to know you better -- using increasingly sophisticated technology. It can survey your salary history, scan your LinkedIn connections or use satellite images to eyeball the size of your swimming pool. If it's really on the ball, the charity can even get an email alert when your stock holdings double.

“Personalizing the Pitch

“Donor research isn't new, of course, but its reach has grown while the cost has dropped. For as little as $3,000 a year, even small nonprofits can tap into detailed databases. Data-diving practices expanded during the recession, as charities faced pressure to raise money more efficiently.

“According to marketing-research firm Campbell Rinker, nearly half of all charities now use these tools to research donors. Nonprofits say donor analysis helps them focus their time and resources on those who are most likely to give.

“In most cases, charities rely only on publicly available data. Still, donors might be startled to learn how much data have been compiled by charities, and how they're used. Even some fund-raisers worry that donors will find the increasing depth of their background research to be too intrusive. Daniel Borochoff, president of the American Institute for Philanthropy, says there's a good reason most nonprofits keep these research efforts behind closed doors: "It creeps a lot of people out."

Monday, May 24, 2010

Social Entrepreneurship

The seminal book about it is, How to Change the World: Social Entrepreneurs and the Power of New Ideas, and there is an excellent article about it in the Sacramento Bee.

One person can change the world and inspired individuals have been doing so since the beginning of time.

An excerpt from the book.

“Where does this motivation come from?...I heard the same story again and again. Someone had experienced an intense kind of pain that branded them in some way. They said, ‘I had to do this. There was nothing else I could do.’

“At some moments in their lives, social entrepreneurs get it into their heads that it is up to them to solve a particular problem. Usually something has been brewing inside for a long time, and at a particular moment in time—often triggered by an event—personal preparedness, social need, and historical opportunity converge and the person takes decisive action. The word “decision” comes from the Latin decidere, meaning “to cut off.” From that point on, the social entrepreneurs seem to cut off other options for themselves.

“Over time, their ideas become more important to them than anything else. Every decision—whom to marry, where to live, what books to read—passes through the prism of their ideas. Although it is probably impossible to fully explain why people become social entrepreneurs, it is certainly possible to identify them. And society stands to benefit by finding these people, encouraging them, and helping them to do what they need to do.” Bornstein, D. (2004). How to Change the World: Social Entrepreneurs and the Power of New Ideas. New York; Oxford University Press. (pp. 240-241)

An excerpt from the Bee article.

“Despite the recession, a growing number of area residents have enlisted in the war against some of the world's worst demons, including starvation and bad water, AIDS and other diseases, child labor, human trafficking and sexual slavery.

“At least 121 nonprofits in the Sacramento area are dedicated to international relief – up from 36 in 2000 and 61 in 2005, according to Guidestar, which provides information on 1.8 million U.S. nonprofits. Sacramentans are finding other ways to help, too, battling poverty and misery on the ground.

“Local doctors are flying to Myanmar, India, Vietnam and China to perform lifesaving surgeries, restore eyesight and treat disease and infections. A UC Davis student started a nonprofit to educate and feed Namibian children struggling with AIDS. Throughout the region, schoolchildren raise money for Haiti at bake sales and basketball games.

“The fever to give – or give more – often starts with a spark that keeps on burning.

“In 2005, Grass Valley builder Greg Zaller went to Pakistan to rebuild homes for quake victims and ended up building a school system for illiterate women and children. "It's just triggered something inside me," he said. "From day one, you couldn't stop me."

“Rocklin pastor Don Brewster and his wife, Bridget, went further. They sold their home, left their adult children and grandchildren behind and moved to Cambodia to rescue 200 girls – one as young as 3 – from sexual slavery. "Here are these women selling their little girls to get money to eat," Bridget said. "Having been a single mom and struggling to raise three kids, all I could think of is, 'What if it were me in this situation? I'd be pleading for somebody to help me,' " Bridget Brewster said.

“With the world more connected than ever, "there's definitely a sense of global consciousness, that we're all in the same boat and what happens in one place affects another," said Amir Dar, executive director of idealist.org, which links thousands to nonprofit jobs.

“The Internet "is bringing to our attention a lot of problems that were hidden from us: rural poverty, kiddie porn," added Daniel Borochoff, president of the American Institute of Philanthropy. "Because of the Internet, you see a lot more people trying to favorably influence the world situation."

Sunday, May 23, 2010

Nonprofit Forecast

An excellent forecast from the Fenton Intelligence Report.

An excerpt.

“Nonprofits in the Post-Recession Economy: Prove Your Fiscal Responsibility and be a Credible Source

“While the job market remains weak, there continue to be signs that the nation is crawling out of the economic crisis. The latest government figures show a better-than-expected increase in consumer spending. Yet the nonprofit sector’s recovery is likely to lag.

“As The Chronicle of Philanthropy recently reported, if the current recession mirrors the one in the mid-1970s, donations likely won’t rebound until at least 2012. Most nonprofits are feeling the pinch through flat or declining memberships, dwindling donations, employee layoffs and in having to generally “do more with less.”

“The situation will likely get worse before it gets better. Nearly two-thirds of respondents say that the amount of money they plan to give to nonprofits will stay the same or decrease this year. Of those who plan to decrease their giving, more than half say they will cut charitable donations by 25 percent or more. It is a gloomy outlook given the downward trend in giving from the previous two years.

“Our study shows nonprofits must compete for a smaller pool of donated funds from individuals and that they will be scrutinized like never before to show how donations are used to provide effective programs and services to communities.

“Our research reveals that trust is the single most important component in the relationship between donors and nonprofits. Existing and potential donors must believe that a nonprofit is managing its funds to have the largest impact before they will invest. People want to engage with organizations to see for themselves the good work that is being done.”

Saturday, May 22, 2010

Marketing

The Nonprofit Quarterly Newswire notes a series of article that might be of interest for corporate fundraising by nonprofits.

An excerpt.

“The Spring 2010 issue of the American Marketing Association’s research publication—Journal of Public Policy & Marketing—contains several articles on “stakeholder marketing.” Executive summaries of the articles are available online. Several clearly have content that speaks to concerns of the nonprofit sector and the readership of the Nonprofit Quarterly.

“One piece on “triple-bottom-line firms” describes their approach as “improvements for the ‘weakest-link’ stakeholders . . . [constituting] improvements for the system as a whole.” Another article describes a model for determining the metrics for measuring the impact of stakeholder marketing as part of corporate social responsibility, with a framework around these five questions: “Which stakeholders have a legitimate interest? (A: audience); What is that interest? (G: goal); What inputs, commitments, and actions are needed to realize the consensus goals? (R: resources); How should it be decided whether the interest has been catered to? (E: effectiveness); [and] How can it be evaluated whether the use of resources to cater to the goal is optimal (E: efficiency).”

Friday, May 21, 2010

Board Governance

The arcane language and technicalities involved in governance of a nonprofit organization by its board of directors can often stymie the new organization in carrying out its mission effectively and productively.

An excellent source for basic information is BoardSource, and this post about a book, Better Bylaws: Creating Effective Rules for Your Nonprofit Board, Second Edition, includes a link to the introduction.

An excerpt from the post.

“Are you giving your bylaws the attention they demand?

“Most nonprofits begin their existence by filing articles of incorporation with the state. Another critical step is to draft an initial set of bylaws to establish key governance rules - how to call meetings; what constitutes a quorum; how to elect, add, and remove board members; how to form committees; and more.

“Founding board members often get bogged down in drafting the initial bylaws, struggling to get the first set perfect and to cover every conceivable issue that might arise in the future. Or they blindly borrow a bylaws example, even though it may not fit their needs.

“A helpful approach is to start with very basic bylaws that cover major issues surrounding meetings and elections and then gradually amend those bylaws over time as the nonprofit matures and as new governance issues arise that were not clearly covered by the initial bylaws.”

Thursday, May 20, 2010

Big Donation

Wells Fargo donated in a really big way to United Way, as this story from the Sacramento Business Journal reports.

An excerpt.

“Wells Fargo & Co.’s employee contribution to United Way Worldwide was the largest of its kind in the United States last year, with pledges totaling $41.9 million.

“The workers’ pledges were up 21 percent from the combined Wells Fargo and Wachovia Corp. campaigns in 2008. San Francisco-based Wells (NYSE:WFC) bought Wachovia of Charlotte, N.C. in late 2008. The combined banks have the second-largest market share of deposits in the Sacramento region.

“With corporate gifts included, the Wells Fargo contributions exceeded $60 million.

“During these difficult economic times, it’s more important now than ever for companies and their team members to give back to their communities to help create economic growth and prosperity,” says Jon Campbell, executive vice president of the social-responsibility group at Wells Fargo. “I continue to be amazed by the incredible dedication and compassion our team shows by generously investing their time, energy and personal financial resources in our communities.”

“In the Sacramento region, United Way said Intel Corp. was its largest donor, raising $2.1 million for 265 local nonprofits.”

Wednesday, May 19, 2010

Volunteering Around

An interesting review—from the Toronto Star—about an interesting concept book.

An excerpt.

“Some people spend a year indulging themselves, travelling the world in grand style. Not Lawrence Scanlan. The much-published author and community service activist spent a year living generously in a highly innovative way to demonstrate that individual kindnesses are as important as big-bucks philanthropy. He chose to be a volunteer, rather than mere observer, at 12 Canadian-based or Canadian-supported philanthropic groups. It took him about a year, spending a month at each. The result is A Year of Living Dangerously: Dispatches from the Front Lines of Philanthropy (Douglas & McIntyre, 343 pages, $32.95).

“Scanlan never uses the word “charity,” which he regards as demeaning, to describe philanthropy. He concentrates on small, local agencies that “help the less fortunate” (his preferred term) around Kingston, where he lives, to emphasize what individuals can do in their neighbourhood. He covers a wide range of concerns: food, shelter, terminal illness, prisoner counselling, environmental damage, physical/mental disability, disasters and aboriginal educational disparities. (The Atkinson Charitable Foundation, which has longstanding ties to the Star, donated money to two groups in the book.)

“A big cast of admirable administrators, engaged volunteers and colourful recipients enlivens the story. Sometimes there is too much about Scanlan, such as lengthy detail about his non life-threatening cancer and his dog’s personality.

“Explaining that the original meaning of the Greek word “philanthropy” is “love for humankind,” Scanlan provides many memorable vignettes of individual Canadian philanthropy as well as the occasional misanthrope. There is the soup kitchen that insists on the more uplifting name “hospitality centre” and refers to those it helps as the “clientele,” or “guests.”

“An anonymous donor of $2,000 for warm clothes receives a discount from a merchant upon learning the reason for the purchase. A woman donates one of her kidneys to a stranger because it “felt like the right thing to do.” There are the mean-spirited who “donate” dirty laundry, broken mirrors, unwashed dishes, torn furniture, even dirty diapers.

“Seaton House, the city-operated shelter in Toronto, is so disliked by many homeless that they call it “Satan House” and prefer to sleep outdoors. Scanlan decries that Toronto officials are reluctant to open new homeless shelters because they are fearful more homeless people from across Canada will be attracted to what already is the nation’s homeless capital.

“Prisoners at Kingston’s Collins Bay Institution delightedly supervise an onsite Olympiad for mentally challenged adults. Queen’s University student volunteers at a hospice for the terminally ill say they learn about the value of “memories and simple things.” Scanlan says the card game euchre is liked by terminally ill patients because they can simultaneously chat and concentrate. Therapeutic horseback riding for the mentally and physically challenged comes from the ancient custom of placing wounded soldiers on horses because of the soothing motion.

“He notes that legal action can be more effective against environmental wrongs than angry protest. The mantra of the environmental group Lake Ontario Waterkeepers asks, “Can you sleep at night if you don’t act?”

Tuesday, May 18, 2010

Nonprofits & Government

Colorado has a new law that allows nonprofits to submit unsolicited proposals to contract to provide state services, taking effect in August.

It is an excellent idea that could be of benefit nationwide, especially here in Sacramento.

An excerpt from the Colorado Nonprofit Association.

“Under a new law, 501(c)(3) nonprofit organizations will have additional opportunities to deliver public services through contracts with state government agencies. The intent is to provide new avenues for nonprofits to deliver cost-effective and innovative services to the public for state government agencies who must stretch every tax dollar.

“Sponsored by Rep. Mark Ferrandino (D–Denver) and Sen. John Morse (D–Colorado Springs), House Bill 10-1010 authorizes all state agencies to enter into public-private initiative agreements with 501(c)(3) nonprofit organizations. The bill is a product of the Colorado Nonprofit Association’s Public Policy Committee and originated from the legislature’s Long-term Fiscal Stability Commission, of which Association President and CEO Renny Fagan was a member. The bill received broad bipartisan support.

“The bill allows nonprofits to submit unsolicited proposals to perform services for a state agency. The agency will evaluate the proposal based on such factors as innovative approaches, cost-savings, efficient delivery of services, enhanced quality of service delivery, potential contribution to the agency’s mission and the capabilities of the submitting nonprofit. If the agency determines that the proposal meets the statutory criteria, the parties can proceed to enter into a contract.”

Monday, May 17, 2010

Venture Philanthropy & the Backlash

Several years ago venture philanthropy—also known as philanthrocapitalism—became an influence in the philanthropic field, and it is a trend I think has great value, built on the best ideas from the forprofit and nonprofit sectors.

There has been a backlash, and this article from Stanford Social Innovation Review reviews a backlash book, Small Change: Why Business Won’t Save the World.

An excerpt.

Small Change is a follow-up to, and an amplification of, Edwards’ 2008 monograph, Just Another Emperor? The Myths and Realities of Philanthrocapitalism, which was a hives-like reaction to the book Philanthrocapitalism: How Giving Can Save the World, by The Economist’s Matthew Bishop and Michael Green (who interestingly enough has had a career similar to Edwards’).

"Edwards makes no bones about what Small Change is about: “The claim that business thinking can save the world is a convenient myth for those who occupy positions of great wealth and power; and the constant celebration of rich and famous individuals is a dangerous distraction from the hard, public work of finding solutions, all of us together.” Edwards further states in the preface, “Social transformation is not a job to be left to market forces or to the whims of billionaires.”

“Clearly, Edwards has a bee in his bonnet about Bono, Bill, and Buffett, and their role in the world—especially in the developing world. Edwards also sees the issue in black and white: Either you believe that business thinking is good and will save the world or you don’t. The reality is that the world is quite complex and is also quite gray. Given his vast experience, it is shocking that Edwards sees the world as starkly as he does.

“Edwards wants the reader of this slim volume to firmly believe that business and business leaders have little to no role in solving social problems. Business leaders are too tactical; are far too focused on outcomes; and really don’t, well, feel. “The profit motive is not a dirty word,” writes Edwards, “but is it a different word from solidarity and caring with no expectation of return.” He goes on to describe this division and relies on stalwarts like Adam Smith and Milton Friedman to reinforce his point of view. For a seasoned reader this all feels a bit “been there, done that.” We have heard these antibusiness arguments before, and in 2010 they just don’t resonate as they once did….

“Edwards wants you to believe that philanthrocapitalism is completely misguided. He also wants business-minded donors to leave the messy work of social change to the professionals—that the mandarins of the NGO world can take care of it. Edwards wishes business and its leaders would just leave civil society alone. And he wishes that business would stay within the boundaries of its sector and reform and behave itself.

“Perhaps it is only fair then to have the last words of this review come from Bishop and Green: “If philanthrocapitalism is to succeed, it will be because these philanthropists take impact seriously and apply their business talents just as rigorously as they did when they made their money. That is easier said than done, not least because philanthropy lacks many of the market forces that keep businesspeople disciplined, focused on success, and willing to make the tough decisions necessary to survive and prosper.”

Saturday, May 15, 2010

The Millennials, Religion & Philanthropy

An excellent article from Wired Magazine about the emerging giving habits--and the religious sensibilities--of the computer savvy young.

An excerpt.

“Man, what a bunch of selfish bastards we are. Gold hoarding abounds. Tea parties rage. Atlas Shrugged, Ayn Rand’s gospel of self-interest, is outselling The Audacity of Hope on Amazon.com. And trust in the institutions we’ve traditionally relied upon to encourage/enforce philanthropy and its evil twin, redistribution — government, nonprofits, and the church — appears to be at a historic low. What’s more, a recent Pew Research Center poll found that Millennials (the 18 to 29 set, whose lives have been entirely molded by information technology) are perhaps the least religious generation on record, with 26 percent reporting no church affiliation whatsoever.

“From a philanthropic perspective, that might seem bad: Americans tend to give twice as much to churches as they give to secular charities. But these same kids are insta-texting tens of millions of dollars to far-off earthquake victims faster than Wyclef Jean can spend it, faster than Justin Bieber can warble “We Are the World,” faster than Bono can bang out a turgid op-ed. For this new generation of donors, pop culture, public discourse, social media, and charity all run through the same router — and speed, not greed, is good. What gives?

“We do, it turns out. Heck, we’re wired for it: Our brains release congratulatory hits of dopamine when we engage in selfless behavior — which we’re moved to do the instant we witness something awful. Melissa Brown, associate director of research at the Center on Philanthropy at Indiana University, calls this our “immediate altruistic response.” But, she notes, the IAR impulse is easily blunted by delay: “Generation X and the Millennials don’t want to go through the trouble of entering a 16-digit credit card number to make a $25 donation.”

“Luckily, we now have digital tools fast enough to keep up with our inborn empathy trigger. Want to help? Text in some shekels to 90999 and suddenly you’re part of the solution — which, as we now know, feels good on a neurochemical level. In fact, one can easily imagine socio-technological advances knitting us into a kind of decentralized superorganism — a pan-humanity nerve array that senses where it hurts and sends help in real time. Remember that tacky fiber-optic Tree of Souls from Avatar? Well, fluff your brain-braid, my blue brother: It already exists, and it’s growing out of your smartphone.”

Friday, May 14, 2010

Philanthropy Increasing

In a good sign that the recovering economy is restoring the level of philanthropic giving that has been somewhat reduced over the recent period of financial uncertainty, one of the largest charitable gift funds—a favored way many conduct their philanthropy—has seen an increase, as reported by the Chronicle of Philanthropy.

An excerpt.

“The economy's improvement is finally making itself felt in philanthropy, as one of the nation's biggest charities on Wednesday reported an unprecedented increase in donations made in recent months.

“The Fidelity Charitable Gift Fund, the third largest organization on The Chronicle's Philanthropy 400 survey of the nation's most successful fund-raising organizations, reported that contributions rose to $270-million in the first quarter of this year—up 109 percent over the same period in 2009.

“It was the best first quarter for fund raising at Fidelity since the charitable fund was founded in 1991. The gift fund enables donors to set up charitable giving accounts and help make grants from them.”

Thursday, May 13, 2010

Nonprofit Lobbying

Nonprofits can lobby, but there are certain restrictions and this page at the Independent Sector’s website is very helpful, as is this page at the IRS.

An excerpt from Independent Sector.

“All nonprofits have a vital role to play in our democracy. For 501(c)(3) nonprofit organizations that role includes lobbying and building relationships with elected officials. Building relationships with elected officials is permitted -- and strongly encouraged -- for all of us.”

An excerpt from IRS.

“In general, no organization may qualify for section 501(c)(3) status if a substantial part of its activities is attempting to influence legislation (commonly known as lobbying). A 501(c)(3) organization may engage in some lobbying, but too much lobbying activity risks loss of tax-exempt status.

“Legislation includes action by Congress, any state legislature, any local council, or similar governing body, with respect to acts, bills, resolutions, or similar items (such as legislative confirmation of appointive office), or by the public in referendum, ballot initiative, constitutional amendment, or similar procedure. It does not include actions by executive, judicial, or administrative bodies.

“An organization will be regarded as attempting to influence legislation if it contacts, or urges the public to contact, members or employees of a legislative body for the purpose of proposing, supporting, or opposing legislation, or if the organization advocates the adoption or rejection of legislation.

“Organizations may, however, involve themselves in issues of public policy without the activity being considered as lobbying. For example, organizations may conduct educational meetings, prepare and distribute educational materials, or otherwise consider public policy issues in an educational manner without jeopardizing their tax-exempt status.”

Tuesday, May 11, 2010

IRS 990 Filing Deadline May 15

We have been posting on this regularly as it is crucial to understand and take care of the requirements the 2006 law imposed on nonprofits, and this news from the Nonprofit Quarterly Newswire sums up the situation succinctly.

An excerpt.

“May 8, 2010; The Anchorage Daily News | A 2006 law, The Pension Protection Act of 2006, states that nonprofits that do not file their form 990 for three years in a row could lose tax-exempt status. This law affects all nonprofits, even those previously not required to file the form. This year marks the third year since the law took effect and therefore the potential D-day for many groups across the country. NPQ will provide a more in-depth story written in partnership with the Minnesota Council of Nonprofits and the National Center for Charitable Statistics early this week.

“The Foraker Group, a group focused on helping Alaska Nonprofits, says that 1,000 nonprofits in that state have yet to file their 990 form with the IRS. … This story from Mankato, Minnesota says there are 400,000 groups nationwide that have not filed. This new law makes for sensational headlines but it's relatively easy to avoid the drama.”

Monday, May 10, 2010

Children Imitate Parents

In a follow up to the recent post of children copying their parents philanthropy and becoming philanthropists themselves, this new study, reported by Science Magazine indicates the learning children do from adults is very strong--which we already know--but an interesting study nonetheless.

An excerpt.

“Whether they’re preschoolers from Australian suburbs or Kalahari Bushmen, children copy adults to a fault, according to a new study. The findings suggest that overimitation—in which a child copies everything an adult does, even irrelevant or silly actions—is a universal human trait that may contribute to our complex culture.

“Researchers already knew that overimitation was a human-specific quirk. In previous studies, dogs and chimps taught to open a box and retrieve a toy copied their teacher’s toy-seeking behavior only when it proved efficient. When the instructing adult added irrelevant actions, such as brushing a feather along the edge of the box before opening it, the animal trainees skipped them, doing only what was necessary to get to the hidden toy. But human children copied every detail, even the pointless brush of the feather.

“Animals focus on getting the job done,” explains Mark Nielsen, a psychologist at the University of Queensland in Brisbane, Australia. “Humans seem to almost forget about the outcome and copy everything we see.”

“Nielsen harbored doubts, however, that the overly faithful copycatting was really universal to all humans, middle all the experimental subjects were the middle- to upper-class kids of Western-educated parents. Such parents tend to regularly teach and model behaviors for their children: for example, they frequently point out objects and explain what they are used for, or instruct their children step-by-step through a new activity, thus encouraging their children to view them as experts and overimitate them. So he turned to a culture with a distinctly different parenting style: the Bushmen of the Kalahari Desert. Whereas a Western parent might teach a youngster to use a bow and arrow by standing behind her and guiding her motions, a parent from the indigenous African Bushmen culture would allow the child to come along for a hunt and learn by observation and through trial and error. Nielsen hypothesized that a child taught in this hands-off manner would have less reason to overimitate adults and would do so less often.

“To test his idea, Nielsen taught more than 90 children aged 2 to 13 in multiple Bushmen communities and in Brisbane to open a set of opaque boxes that each contained a hidden toy. Each box could be easily opened by lifting a knob, sliding a switch, or removing two dowels that latched a lid into place. Sixty-two of the children were allowed to play with the boxes first, and 10 of these figured out how to open them on their own. Then Nielsen or an instructing adult from the community showed the children how to open the box, incorporating an impractical action into the process: tracing circles over the box with a stick and using the stick to pull the knob, for example. To Nielsen’s surprise, all the kids overimitated equally.”

Sunday, May 9, 2010

In the Wilderness

The past couple of years have been tough for nonprofits, and being able to spend some time in strategic contemplation is crucial, which is why this quote is on my website’s home page:

"It is hard to imagine making any important change in life without an inward journey. Think of Christ going into the desert for forty days. It was in the desert that he dealt with his own doubts and temptations and from which he emerged having chosen his freedom and his destiny. It is in our own internal deserts that we remember what really matters. It is on the inward journey, taken over time, that we develop the capacity for intimacy with ourselves and with others, with the environment, and with the world. It is deciding that we are deep human beings with inner lives that defines who we are and brings our ideals back into focus." (Peter Block, The Answer to How is Yes: Acting on What Matters, p. 76)

This article from Nonprofit Quarterly examines the value of “being in the wilderness” or in the desert.

An excerpt.

“I think it’s important for us in our reflections this morning, not to pass too quickly through this grim and trying time in our eagerness to put it behind us, and to talk instead about the all-new and improved nonprofit sector somewhere just over the horizon.

“That wouldn’t be honest, and it wouldn’t be helpful to you. I know that many of you are frazzled to the utmost trying to deal with incredibly difficult and pressing problems—too few dollars to support too few staff to deal with far too many and ever increasing social problems.

“When you’re thrust into the wilderness, the one critical lesson you may learn is, who you truly are.

“Indeed, it must often feel to some of you like you’ve wandered into a howling, desolate wilderness.

“Now, in my faith tradition, being in the wilderness isn’t always a bad thing. It’s never a pleasant thing, mind you. One of the Christian gospel accounts tells us that Jesus had to be driven into the wilderness by the Holy Spirit.

“But it isn’t necessarily a bad thing, and in fact, it may be a necessary thing. Why?

“Because when times are good—when dollars and staff are plentiful—we may tend to become pretty smug and self-satisfied. We come to believe that our organizations are going to be around forever, that our staff and our resources and our standing in society are a permanent part of the way things are, and that the inevitable curve of our fortunes is ever upward.”

Saturday, May 8, 2010

Notice: IRS Filing Deadline May 17

"Many Tax-Exempt Organizations Must File Form 990 by May 17 Deadline to Preserve Tax-Exempt Status with IRS

IR-2010-59, May 7, 2010

"WASHINGTON — A crucial filing deadline of May 17 is looming for many tax-exempt organizations that are required by law to file their Form 990 with the Internal Revenue Service or risk having their federal tax-exempt status revoked.

"The Pension Protection Act of 2006 mandates that all non-profit organizations, other than churches and church related organizations, must file an information form with the IRS. This requirement has been in effect since the beginning of 2007, which made 2009 the third consecutive year under the new law. Any organization that fails to file for three consecutive years automatically loses its federal tax-exempt status.

"Form 990-series information returns are due on the 15th day of the fifth month after an organization’s fiscal year ends. Many organizations use the calendar year as their fiscal year, which makes May 15 the deadline for those tax-exempt organizations. May 15 falls on a Saturday this year so the deadline this year is actually Monday, May 17. Organizations can request an extension of their filing date by filing Form 8868 by the original due date. Absent a request for extension, there is no grace period from filing by the original due date.

"Small tax-exempt organizations with annual receipts of $25,000 or less can file an electronic notice Form 990-N (e-Postcard). This asks for a few basic pieces of information. Tax-exempts with annual receipts above $25,000 must file a Form 990 or 990-EZ, depending on their annual receipts. Private foundations file form 990-PF.

"Any tax-exempt organization that has not filed the required form in the last three years automatically will lose its tax exempt status effective as of the due date of the annual filing. Under the law, the IRS does not have discretion in this matter.

"A list of revoked organizations will be available to the public on IRS.gov.

"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.

"For more information, see the Exempt Organizations: Status Revoked for not Filing Annual Returns or Notices page on this website; or the ABC's for Exempt Organizations page."

Friday, May 7, 2010

Raising Future Philanthropists

As in most things concerning family life, children who love their parents will tend to live their lives in some approximation as it relates to personal values, and instilling philanthropic values—as this survey reveals—happens when parents are open about their own philanthropy.

An excerpt from the article in the Minneapolis Star Tribune.

“How do you encourage teens to tap their inner philanthropist?

“A new survey found that parents who talk to their children about their own charitable work -- especially about why it's important and its impact on real lives -- are more likely to raise young donors than other parents.

“In addition, strong parental support in general builds strong donors, according to the national survey of 500 parents and 500 teens. More than half of the most philanthropic teens surveyed reported that their parents "encouraged me to be my own person.''

“The survey was conducted between March 30 and April 5 by Harris Interactive Service Bureau. It was funded by the Pearson Foundation, an arm of the international media group Pearson, to examine parenting practices that create future philanthropy.

"Although 90 percent of all parents say that they want to raise children who are charitable ... there is a large gap between what parents say they want to do and what they may know how to do,'' said the survey report.

“Teens who regularly donated their time or money said their parents were their primary influence, the report said. These teens were more likely to hold paying jobs and have responsibilities for helping neighbors.”

Thursday, May 6, 2010

Success Breeds Success

This is the ancient mantra that confounds the newer one that you learn more from failure than from success.

Recent research, reported by the Harvard Business Review, reveals the truth to the old and the lie to the new.

An excerpt.

“Neuroscientists have long understood that the brain can rewire itself in response to experience—a phenomenon known as neuroplasticity. But until recently, they didn’t know what causes gray matter to become plastic, to begin changing. Breakthrough research by a team at MIT’s Picower Institute for Learning and Memory has documented one type of environmental feedback that triggers plasticity: success. Equally important and somewhat surprising: Its opposite, failure, has no impact.

“Earl Miller, the lead researcher on the study (published in the journal Neuron last summer), says understanding the link to environmental feedback is crucial to improving how people teach and motivate because it’s a big part of how we learn. But we absorb more from success than from failure, according to the study.

“Miller’s researchers gave monkeys a simple learning task: They presented one of two pictures. If it was Picture A, the monkeys were supposed to look to the left; if Picture B, to the right. When the monkeys looked in the correct direction, they were rewarded with a drop of juice. All the while the team recorded brain function.

“Neurons in the prefrontal cortex and striatum, where the brain tracks success and failure, sharpened their tuning after success,” says Miller. What’s more, those changes lingered for several seconds, making brain activity more efficient the next time the monkey did the task. Thereafter, each success was processed more efficiently. That is, the monkey had learned. “But after failure,” Miller points out, “there was little change in brain activity.” In other words, the brain didn’t store any information about what went wrong and use it the next time. The monkey just tried, tried again.

“Miller says this means that on a neurological level, success is actually a lot more informative than failure. If you get a reward, the brain remembers what it did right. But with failure (unless there is a clear negative consequence, like the shock a child feels when she sticks something in an electrical outlet), the brain isn’t sure what to store, so it doesn’t change at all.”

Wednesday, May 5, 2010

Saving History

Historical Societies do wonderful work that very few people appreciate or choose to support financially—consequently many go under or struggle for years—and it is good to hear of one historical society in Oregon that may be saved, though the long-term reliance on government funding is one that should be reexamined, as reported by the Portland Tribune.

An excerpt.

“The 112-year-old nonprofit will put its campaign to create a local “heritage tax district” on hold after the idea failed to win support from Portland Mayor Sam Adams and Gov. Ted Kulongoski, among others.

“At the request of Portland city officials, Kulongoski convened a group to brainstorm new state funding ideas for the society, which operates the Oregon History Museum and research library in downtown Portland. The society’s board voted unanimously April 17 to give state funding options another shot, says George Vogt, executive director. Those options include seeking $1.5 million from the Legislative Emergency Board, which meets in late May, and pursuing other possibilities.

“The society’s board has been laying the groundwork for a local taxing district after its state funding dwindled the past seven years. The 2007 Legislature enacted a law that enabled the formation of local taxing districts for history facilities. Such districts could raise property taxes, upon voter approval, much like library and soil and conservation districts.

“The Oregon Historical Society, which expects its cash reserves to be exhausted by late 2011 or early 2012, had already retained political consultant Liz Kaufman and raised $130,000 for a heritage district ballot measure campaign, Vogt says.”

Tuesday, May 4, 2010

L.A. Arts Turmoil-Update

The story we posted on last week has taken a new direction, as reported by the Los Angeles Times.

An excerpt.

“Los Angeles Mayor Antonio Villaraigosa has backed away from his controversial plan to cut the city’s arts grants by $415,000 and give the money to four other cultural organizations he picked himself.

“We were overzealous,” Ben Ceja, deputy mayor for budget and finance, told the City Council committee that has been going through the mayor’s budget proposal with each department head, in preparation for making recommendations to the full council.

“Ceja asked the budget and finance committee to restore the $415,000 to the Department of Cultural Affairs budget. While no action was taken, committee Chairman Bernard C. Parks said he was miffed that the transfer had been proposed in the first place. Restoring the money to the $2.7-million arts grants program would mean that 35 organizations already approved through the standard application process in which panels of experts review and score each proposal will not lose their grants; 271 others would avoid 7% to 15% cuts.”

Monday, May 3, 2010

L.A. Arts Turmoil II

The story we posted on last week has taken a new direction, as reported by the Los Angeles Times.

An excerpt.

“Los Angeles Mayor Antonio Villaraigosa has backed away from his controversial plan to cut the city’s arts grants by $415,000 and give the money to four other cultural organizations he picked himself.

“We were overzealous,” Ben Ceja, deputy mayor for budget and finance, told the City Council committee that has been going through the mayor’s budget proposal with each department head, in preparation for making recommendations to the full council.

“Ceja asked the budget and finance committee to restore the $415,000 to the Department of Cultural Affairs budget. While no action was taken, committee Chairman Bernard C. Parks said he was miffed that the transfer had been proposed in the first place. Restoring the money to the $2.7-million arts grants program would mean that 35 organizations already approved through the standard application process in which panels of experts review and score each proposal will not lose their grants; 271 others would avoid 7% to 15% cuts.”

Sunday, May 2, 2010

Mandatory Annual Nonprofit 990 Filing

The 990 must be filed annually (and it is a very simple online process for small nonprofits) by almost all nonprofits, per this notice from the IRS.

An excerpt.

“Automatic Revocation for Not Filing Annual Return or Notice

“Most tax-exempt organizations, other than churches, must file a yearly return [990] or notice with the IRS. If an organization does not file as required 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:”

Saturday, May 1, 2010

Benefit Corporation

A new form of corporate structure is emerging which allows a for profit organization to define its mission within its work, an interesting idea, as reported by Business Week.

An excerpt.

“Maryland today became the first state to legally create a new corporate form known as a “benefit corporation” that will let social entrepreneurs codify their missions in their corporate charters.

“The law is modeled on proposals by B-Lab, a Berwyn, Pa.-nonprofit that certifies socially responsible companies. The law lets entrepreneurs commit their for-profit ventures to a specific public good, and requires them to report on contributions to that goal and submit to auditing of their impact. Having official “benefit corporation” status allows entrepreneurs to consider stakeholders like employees, communities, or the environment in business decisions. Under existing corporate law, company directors can face lawsuits if considering outside stakeholders is seen to damage the financial interest of shareholders.

“We wrote nearly a year ago on the difficulty social entrepreneurs have fitting their hybrid missions of making money and doing good into existing corporate forms. The tangled arrangements they get into (nonprofits controlling for-profits, etc.) can be costly to set up and limit their ability to raise money from outside investors. Adopting the “benefit corporation” form signals that our economic institutions — in this case the laws that govern corporations — are catching up with the growing interest in the social enterprise sector. (This was one of two big ideas on my radar this year.) “If you care about accelerating the development of this emerging marketplace, the first step is providing the legal infrastructure,” Jay Coen Gilbert, one of the co-founders of B-Lab, told me last week.”