Philanthropy Front and Center-Cleveland

Live Q & A! Are There Alternatives to Starting a Nonprofit?

Acting on your ideas for charitable programs requires careful planning, hard work, and financial resources. Where will those resources come from? Is a nonprofit organization a necessity for accomplishing your charitable goals? What are the alternatives?

Join us here on January 20, 2010, 2:00-3:00pm Eastern Time, for a live, text-based Q & A session with attorney and Nonprofit Law Blog publisher Gene Takagi who will share information and answer your questions about alternatives to starting a nonprofit organization. Register here>>

How it Works
This live, text-based Q&A session will take place right here at our blog. Through the viewer window (below), you can easily submit questions and comments, interact with the presenter, and follow the conversation as it happens. Don't miss it!

You may also want to register for and attend our free webinar Before You Seek a Grant: A Checklist for New Nonprofits taking place immediately beforehand from 1:00-2:00pm Eastern Time.

About the Presenter
Gene Takagi is a California nonprofit and exempt organizations attorney and the principal writer and publisher of the Nonprofit Law Blog. Prior to opening his independent practice in 2005, Gene practiced corporate law at Sheppard Mullin, during which time he was awarded Outstanding Barrister of the Year by the Bar Association of San Francisco. Gene has a graduate degree in nonprofit administration and over 15 years of management experience in both the for-profit and nonprofit sectors. He speaks and writes regularly on nonprofit legal issues for local and national audiences.

Pulse Check 3: How Are Nonprofits Doing?

As a follow-up to our earlier Pulse Check posts in March and July, here is another round-up of the latest surveys and studies indicating how the nonprofit sector is handling the effects of the recent economic downturn.

Glass Half Full or Half Empty? Results of GuideStar's Latest Nonprofit Economic Survey (August 2009)
GuideStar’s most recent nonprofit economic survey takes a look at the financial health of charitable organizations from March-May 2009. They found that since the last update, covering October 2008-February 2009, the percentage of nonprofits reporting decreased contributions has remained steady at 52%. Other findings showed that:

• 18% of responding nonprofits saw their contributions increase, while 29% reported that their contributions had stayed about the same from the previous survey period.
• Nonprofits reported that the decrease in giving was the result of the following:
  • Fewer individuals gave (69%)
  • Gifts from individuals were smaller (68%)
  • Corporate gifts were smaller (38%)
  • Private foundation grants were smaller (37%)
  • Read more>>

Volunteering in America: Research Highlights (August 2009) [PDF]
The Corporation for National and Community Service collects information on the American volunteer landscape in an effort to track changes and developments that may be useful for civic leaders and nonprofit organizations. Some of the key findings showed that:

• In 2008, 61.8 million Americans or 26.4 percent of the adult population contributed 8 billion hours of volunteer service worth $162 billion, using Independent Sector’s 2008 estimate of the dollar value of a volunteer hour ($20.25).
• As the economy slows and nonprofit organizations struggle to provide services on smaller budgets, volunteers become even more vital to the health of our nation’s communities. Between September 2008 and March 2009, more than a third (37%) of nonprofit organizations report increasing the number of volunteers they use, and almost half (48%) foresee increasing their usage of volunteers in the coming year. Almost no nonprofit organizations are showing a decrease in their volunteer usage.
• Volunteers were much more likely than non-volunteers to donate to a charitable cause in 2008, with 78.2 percent contributing $25 or more compared to 38.5 percent of non-volunteers.
• Read More [PDF]>>

Nearly 30% of Nonprofit Leaders Took a Pay Cut This Year; Pay in 2008 Grew Quickly (Sept. 2009)
The Chronicle of Philanthropy conducted a survey of 325 organizations that raised the highest amounts of donations from private sources in 2008, as well as grantmakers holding the highest assets that year. The results of the survey revealed that:

• 57 charities and foundations—29 percent of the 195 groups that responded—reported that their top executive had taken a pay cut this year due to the recession, declined raises or bonuses, or had his or her pay frozen. The median pay cut was 10 percent.
• The median compensation for chief executives at the organizations surveyed was $361,538, based on information from 253 groups that provided data for both 2007 and 2008. In 2007 the median compensation was $330,395.
• Read more>>

Nonprofit Finance Fund's and Business Volunteers Unlimited's Nonprofit Survey - Northeast Ohio (August 2009)
Locally, the Nonprofit Finance Fund and Business Volunteers Unlimited recently conducted a survey of Northeast Ohio nonprofits and found that nonprofits are struggling to balance falling revenues and an increase in demand as they plan for 2010. Read a summary of the survey for more information about the findings.

Have you read other enlightening reports and survey findings? Tell us about them.

Watch! October is Funding for Arts Month

Free Events:

Wednesday, October 7:
Grantseeking Basics for Individuals in the Arts at our Cooperating Collection at the Akron-Summit County Public Library, 10:00am-12:00pm.
For you if you are an individual involved in the arts and looking for funding to complete a project, mount an exhibition, put on a performance, conduct research, or anything else arts-related.

Resource Market for the Creative Community, 4:00-6:00pm.
Attend our “trade fair” and meet “vendors” that offer resources and services for artists, writers, and others in the creative community. Don't miss it!

"I Got Funded" Artist Panel, 6:15-7:30pm.
Meet and learn from several artists who have applied for and received grants, fellowships, awards, and prizes.

Friday, October 9:
Coffee and Conversation with a Grantmaker, 9:30-10:45am.
Meet Lillian Kuri, Program Director for Architecture, Urban Design and Sustainable Development, The Cleveland Foundation.

Wednesday, October 21:
Fundraising for Arts and Culture Organizations in a Challenging Economy, 1:00-2:15pm.
Gain a basic overview of what you can do to survive, thrive, and succeed in sustaining your nonprofit during the current economic recession.

Fund Development Pulse Check: How Are Arts and Culture Organizations Doing? 2:30-3:30pm.
Learn about seeking financial support in today's economic environment from the experiences of leading development professionals from arts and culture organizations in Northeast Ohio.

Friday, October, 23:
Community Arts Organizations of the Future, 10:00am-12:00pm.
Explore today's pressing issues affecting community-based arts and culture organizations: funding, leadership capacity, community, and sustainability.

October 30:
Webinar! Funding Trends in Arts and Culture, 3:00-4:15pm.
Join us from the comfort of your own office and learn about funding trends and the outlook for arts and culture from national experts in the field.  

The Answer Desk Is Open. Ask Us!

Do you have questions about fundraising, nonprofit management, and related topics? We have answers and provide them fast. Our Ask Us service is available 24/7.

You can connect with a Foundation Center librarian and ask your question live, in real-time, Mondays, Tuesdays, and Wednesdays from 9:30am to 8:00pm Eastern Time and Thursdays and Fridays from 9:30am to 4:30pm Eastern Time. Other times, you can ask by e-mail.

We've answered more than 90,000 questions since our start in 1998 and our fans regularly tell us what they think. So, if you have a question, join the growing number of satisfied customers who regularly Ask Us!

(This post is from Katie Artzner, the Foundation Center's online librarian.)

From The Answer Desk: How Can Nonprofits Avoid or Address Financial Emergencies?

A: There is no one-size-fits-all answer to this question, but here are 10 suggested resources that may be helpful. If you have recommendations, please let us know by leaving a comment.

1. It is critical that your organization develop and closely monitor a sound fundraising plan that includes detailed outlines for securing a diverse array of support and revenue. Learn how at our free class, webinar, or full day seminar.

2. 20 Emergency Funding Sources for Nonprofits. From Fieldstone Alliance, this web page includes "sources that can be accessed quickly, usually within 30 days," along with this note of caution, "Not all of these sources are available to all nonprofits, and some of them carry great risk." The strategies included are detailed in these categories: cash flow management, contributed income, earned income, debt financing, and existing assets.

3. Adapting to Change: 22 Structural Strategies for Nonprofits. Also from Fieldstone Alliance, this web page includes 22 ideas "involving organizational change. When major external change happens, it’s important to look internally to revisit and, if necessary, revise your mission and approach in order to serve the community in the best way possible." Ideas, opportunities and action steps are displayed  in the following categories: general advice, modify mission, modify organization structure, and modify organization culture.

4. And Now for Something Different About Nonprofits and the Economy 1/1/09. This article from Jan Masaoka in Blue Avocado, advises, among other things, that organizations give themselves permission to "declare an emergency. An emergency doesn't mean people should panic...an emergency means considering the bold and wacky ideas that are either brand new or used to be off the table." She goes on to advise nonprofits to "ask for help even if you don't know what would help." 

5. Coping with Cutbacks. A book by Emil Angelica and Vincent Hyman that offers "immediate help with 185 specific cutback strategies." 

6. RFP Bulletin from Philanthropy News Digest. Broaden your search for funding. RFP Bulletin lets you search by subject through notices of awards that can be applied for immediately. You can activate a free e-mail subscription to RFP Bulletin and have it delivered weekly.

7. Foundation Directory Online Professional can be used to search for grantmakers that provide "emergency funds" using the "type of support" index. It is available by subscription or for free use at more than 400 Foundation Center locations. In addition, you should consider contacting any of your organization's current foundation supporters and asking for assistance.

8. Philanthropy Chat: How to Downsize a Nonprofit [podcast] features writer, educator, and nonprofit leader Michael Seltzer discussing cost-cutting, collaboration, and the hard question, "How can nonprofits handle workforce reductions when all else fails?"

9. Live From Navigating Your Nonprofit Through Challenging Times. Replay this live blog post and get play-by-play details from an April, 2009 seminar hosted by Business Volunteers Unlimited, The Center For Nonprofit Excellence and The Nonprofit Finance Fund. Topics include the importance of not being short-sighted in a recessionary economy and how to separate "symptoms" from "problems" within your organization.

10. Managing in Tough Times: 7 Steps, from the Bridgespan Group, advises nonprofits to make contingency plans for worst case financial scenarios, to identify who are the top performers at your organization and take steps to keep them that way, and to communicate openly and often with board, staff, and other key people about the organization's financial realities.

Do you have a question? Ask Us.

(This post is from Katie Artzner, the Foundation Center's online librarian.)

 

Nonprofit Triage

   Resource Market: Tackling Tough Times. Tuesday, February 24: 4:30-7:00pm. Free.

The Foundation Center is committed to helping your organization successfully weather the current financial storm. One stop at the Foundation Center provides access to top-tier professionals from a selected group of Northeast Ohio organizations, who will share valuable information about services available to your organization in a fun, trade fair atmosphere.

Meet and greet while visiting 'vendor tables' and attending any of the following mini-sessions for must-know tips from each organization:

• 4:40-4:55: David Holmes, Foundation Center on foundation fundraising
• 5:00-5:15: Carol Carbary, Association of Fundraising Professionals on individual fundraising
• 5:20-5:35: Barbara Clemenson, Case Western Reserve University on earned income
• 5:40-5:55: Ann Kent, Business Volunteers Unlimited on nonprofit boards
• 6:00-6:15: Michael Matthews, Neighborhood Leadership Institute on communicating your story/advocacy
• 6:20-6:35: Tom O'Brien, Neighborhood Connections on grassroots/new organizations

Register here. Share this post with your friends!

From the Answer Desk: What is the Unified Registration Statement?

Answer: The Unified Registration Statement (URS) is filed by nonprofits that pursue charitable solicitations in more than one state. Developed by the National Association of State Charity Officials and the National Association of Attorneys General, the URS consolidates filing guidelines and streamlines the registration process for nonprofits.

The Multi-State Filer Project provides a wealth of information about the URS, including a checklist of initial registration requirements organized by state and detailed instructions for every secton of the statement.

Do you have a question? Ask Us!

Program Series - Tackling Tough Times

The Foundation Center-Cleveland is presenting a series of free classes and special events during January 2009 aimed at helping small and mid-sized nonprofits get their organizations in shape for weathering the uncertain economy.

Brown Bag Lunch programs.
Tuesday, January 6, 12:00- 1:00 pm:
Creative Marketing for Nonprofits on a Budget. Join Paul Jarrett, the director of marketing and public relations for Opera Cleveland, as he shares his expertise and discusses ways for nonprofits to promote their services in tight financial times.

Tuesday, January 13, 11:30 am-1:00 pm:
Building a Strong Financial Infrastructure: Internal Controls 101. Learn about the building blocks of effective financial oversight from Tina Dzik of Cohen & Company Certified Public Accountants.

Thursday, January 22:
Introduction to Fundraising Planning, 10:00 am-12:00 pm.
Your Board and Fundraising, 1:00-2:30 pm. Our popular classes will be followed by Q&A sessions with Daniel Mansoor of GoodWorks Group who will answer your questions while sharing his fundraising and board development expertise.

Wednesday, January 28, 4:30-7:00 pm:
Resource Market. Top-tier professionals from a selected group of Northeast Ohio nonprofits will gather to share information about their organizations' services in a fun, trade fair atmosphere. Meet and greet (and eat!) while visiting 'vendor tables' and attending any of the following mini-sessions:

• 4:30-4:45: David Holmes, Foundation Center on foundation fundraising
• 5:00-5:15: Carol Carbary, Association of Fundraising Professionals on individual fundraising
• 5:20-5:35: Tom O'Brien, Neighborhood Connections on grassroots fundraising
• 5:40-5:55: Ann Kent, Business Volunteers Unlimited on nonprofit boards
• 6:00-6:15: Don Slocum, Neighborhood Leadership Institute on adovcating for your organization

From the Answer Desk: What Should I Do After Submitting a Proposal to a Foundation?

A: Wait a few weeks, then contact them to confirm receipt. You may also want to inquire at that time about their review process and offer to meet or to answer any questions that they have. Remember to re-read any relevant documents or guidelines before making contact, so that you are prepared for any and all questions.

Final grantmaking decisions are typically made by a foundation's board, which may meet just once, or which may be on a regular meeting schedule throughout the year. Each foundation is different, so keep in mind that a final decision about your proposal could take some time. You can continue to communicate major changes and milestones with the foundation throughout this period, but probably shouldn't send your daily (or even weekly) e-mail alerts! Be selective. For more information about communicating with prospective funders, attend our free class How to Approach a Foundation at any of our locations, by webinar, or as a recorded webinar, which is available anytime.

Have a question? Ask Us!

(This post is from Katie Artzner, the Foundation Center's online librarian)

Fundraising Executive of the Year and Reflections on Philanthropy from Generation X

I attended the Association of Fundraising Professionals Greater Cleveland Chapter's annual meeting today where I was elected an officer of the board of the Cleveland chapter, along with several of my nonprofit colleagues. I am now VP for External Relations, and I look forward to serving the fundraising community in that role, in addition to my role as director of the Foundation Center - Cleveland, of course! 

Connie Sipple, president of Profile Solutions, Inc., was awarded the Fundraising Executive of the Year Award at today's meeting, a well-deserved tribute to her enduring dedication to the field, not to mention her service to AFP. Congratulations Connie! 

The keynote address at today's event, Reflections on Philanthropy: Engaging Cleveland's Next Generation of Leaders, was delivered by Sara O'Neill Sullivan, co-founder and managing director of Second Story Productions LLC, affiliate of the William J. and Dorothy K. O'Neill Foundation, and immediate past chair of the board at Center for Families and Children. Sara had some really smart and insightful things to say about how to engage Gen X-ers in the work of the nonprofit sector, based on research (I love well-researched presentations) and her own observations and experience.  A few things stood out to me. 

Generation X (those born between 1965 and 1980) appears not to be keeping pace with past generations when it comes to charitable giving. As Sara pointed out, this might be because only about 36 percent of the people who sit on the boards of directors of U.S. nonprofits are under the age of 50 (see Nonprofit Governance Index 2007). She went on to urge nonprofits to reach out to the next generation with some caveats regarding expectations. Many people in this generation (people who are roughly ages 28-43) are time-strapped and represent  2-income households, thus busy building careers or raising families. Raising a family is a rather expensive enterprise, so discretionary income may be going towards their children's college funds, or to paying off their own student debt. The upshot is, in addition to not being as engaged in the boards of nonprofits like older generations are, Gen X-ers don't have handy cash for making charitable contributions like other generations do. But that should not stop organizations from reaching out to them. What they do have to offer is an entrepreneurial approach that may be refreshing for the right organizations, a hands-on approach to getting results, and a keen interest in measuring return on their investments of time and talent and seeing bottom line results overall. They aren't passive check writers. They have energy and enthusiasm and a willingness to get their hands dirty. 

We'd be very interested to know if your organization has made an effort to reach out to the next generation. If so, how is it working?  Tell us. Making a comment is easy, I promise!

--Cindy Bailie