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Cramer & associates cpa presentation characteristics of a successful not for profit june 2010


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  • We thought that we would start first with Introductions . . . Then we’d like to know a bit about our audience—1) Do you have existing NFP Clients? Do you Volunteer for a NFP? How about sit on a Board of a NFP? Been asked by a client to give to an NFP? A finally how many of you have given to an NFP?
  • Here is the agenda for today.
  • Not all entities under IRS Section 501(c) are charitable. In fact there are 26 types of 501(c) entities. 501(c)(3) are Charitable,
  • You can see the variety of not-for-profits and the variety of causes or missions they serve
  • Back at the beginning of the decade, things were simple, the donor gift table was a nice predictable pyramid of gifts. Then in 2008 things changed, people were no longer as concerned with the rainforest, football stadiums or opera programming – what little money that was given stayed very close to home – the good news for you is that basic human needs were suddenly in the forefront – food and shelter were priorities. Even for annual campaigns, only organizations that could make a very compelling case for support saw little or no dip in fundingNow in 2010 it’s a new day with different rules – creativity, sincerity, passion and hard work count for more than anything else – Wall Street has become stable and assets are back to pre-2008 levels, but Main Street is not as forthcoming. The businesses and families that provide the larger gifts in our communities are much more conservative and less trusting. They engage us differently, they want different results and their forms of giving are often now how we expect. Corporations are loaning executives to organizations, rather than give to our events, they will print our brochures for free. This makes us think smarter and ultimately will be healthier for us all in the long run.
  • Organizations can not afford mistakes or mixed messages With competition much stronger, you can not afford to make any mistakes with your numbers, your programs or staff. When I was in your shoes, it was an era that I could make mistakes and learn on the job. Not Now.It takes a long time and a lot of work to build up a strong brand and reputation. If a negative situation occurs, be as open and honest with you donors as possible. Duplication of services no longer tolerated – donors expect collaboration and partnerships – learn best practicesThis is an area that we in the non-profit sector lag behind from the for-profit sector. Donors are wanting to see greater cooperation and partnering in the non-profit sector. They are using their funding to push and often force groups to work closer together. Be proactive with your relationships and each other. Donors like to feel that their funds are going farther and doing more.Entrepreneurial strategies most successful – funding to help generate new revenue for the organization to become more self sustainingThis is a real hot button with many large donors. Recently we heard the Columbus Foundation praising a local furniture bank for presenting them with a funding opportunity that will ultimately bring the organization income. Jim Stein, . . .
  • As we mentioned earlier, competition has become increasingly challenging so it is important to understand who you are up against. These are examples of the day in day out requests that we all get. Where do you fit in? How can you set yourself apart? What do you do that would make a donor choose to give to you in addition or instead of one of these?
  • More important than anyone is the E.D., CEO. Donors must have trust in this person and the direction the organization is going.
  • Longevity helps with understanding the culture, knowing Board Members well. Mike—perhaps share “bad” and “good” examples
  • Mike---
  • Twitter is a very powerful information sharing tool that is a great way to reach a large group of people. This person who has a wide variety of interests is based in the Vancouver area. She mentioned an article about the Vancouver homeless shelter. This person has about 5,000 people following her. So her little clip and link to a news story reached a huge number of people. You should also consider this just one part of your overall communications strategy. How many of you are on Twitter?How many of you plan on doing so?
  • Facebook is a powerful and very cost effective way to communicate and reach new people – however – it should only be one form of your entire communication plan – it shouldn’t replace your personal connections and it requires time and work to be successful. How many of you have a personalFacebook page?How many of your organizations have a Facebook page?This is Fredericton Homeless Shelter’s facebook page, it is in Canada just over the border from Maine. They have done a good job of providing relevant information, however it needs more human interest elements to keep people engaged – there are no photos, videos, or discussions. But it has 59 members who can be sent a direct, free communication.
  • Yet another way to effectively tell your story is through the creation of a video or presentation for YouTube. This video (on the left) is about homelessness in Youngstown and the video on the right is about a ”9, 10, and 11 year old investors/philanthropist tell what its like to feed in homeless in downtown Cleveland”
  • Mike---
  • M
  • Transcript

    • 1. Characteristics of a SuccessfulNot-For-ProfitIt’s not all about financials!
    • 2. Introductions
      Patti Riordan
      Consulting CFO-Cramer &Associates
      Accounting Services Provider
      Mike Schmidt, CFRE
      Vice President & Partner – Cramer & Associates
    • 3. Today’s Agenda
      Non-Profits & How They Work
      Non-Profit Trends & Traits
      Understanding Governance
      Service & Volunteer Considerations--Benefits
    • 4. Types of Not-for-Profits
      Not-for-Profits are not all Charitable
      A NFP is:
      An organization that does not distribute its surplus to owners or shareholders; but uses them to help pursue its goals
      Organized under Section 501(c) of the IRC
      26 Types
      Exempt from some types of federal income taxes
    • 5. Types of Not-for-Profits
      Trade Associations – OSCPA
      Charities – Canine Companions
      Foundation – Ohio State Bar Association Foundation
      Fraternal – Fraternal Order of Eagles
      Arts Organizations – Columbus Museum of Art
      Civic League – League of Women Voters
    • 6. The Non-Profit Spectrum
      Small Social Service Agency
      Bill & Melinda Gates Foundation
      Arts & Culture Organizations
      Historical Societies
      Service Clubs
      Trade Associations
    • 7. A Look Back at the Decade
      Funding levels improve. Donor interests are reset and new patterns of communication, participation and funding are emerging.
      Traditional donor fundraising. Giving is strong on all levels – annual, capital and planned. Organizations independently engage issues and donors.
      Financial Crisis. Fundraising is focused on basic human needs. Giving is more localized. Only the strongest of cases were supported.
    • 8. Giving USA: The Numbers
      2008 Contributions: $307.65 billion by source of contributions
      ($ in billions – All figures are rounded)
    • 9. 2008 Contributions: $307.65 Billion
      Type of Recipient Organization
      Source: Giving USA 2009 - Giving USA Foundation
      All Figures Are Rounded. Total May Not Be 100%
    • 10. Donor Pyramid
      Annual Giving
      Major Giving
    • 11. Gift Table
    • 12. Today’s Environment
      Highly competitive - organizations can not afford mistakes or mixed messages
      Duplication of services no longer tolerated – donors expect collaboration and partnerships
      Entrepreneurial/earned income strategies most successful – funding to help generate new revenue for the organization to become more self sustaining
    • 13. Today’s Environment
      Transparency and Accountability
      Cost Accounting
      Donors want to know where their money is going
      Donors increasingly want to fund specific initiatives
      Restricted and Unrestricted Funds
      Allocating General Costs
    • 14. Today’s Environment
      990 Enhancements
      Public information on salaries, policies, etc. has caused some heartburn
      Since the information is reported both calendar and fiscal year in places; questions arise:
      “I didn’t think we paid ‘him/her’ $xx,xxx”!
      Spousal travel and other perks sensitivities
      New disclosures make it mandatory that a point-person be capable of fielding questions about 990 data
      Form 990 information will receive heightened attention
    • 15. The Competitive Environment
      Cure Cancer
      Save the Environment
      Girl Scout Cookies
      Disaster Assistance
      Grant a Wish
      Rescue Puppies
      Send a kid to camp
      Historical Society
      Parks & Recreation
      Performing Arts
      Support your University
      Eternal Salvation
      PTO & Booster Clubs
    • 16. Non Profit Roles
      Executive Director (most important!)
      Development Director
      Board of Directors
      Advisory Council
      Other Paid Development Staff
      Paid Staff in Non-Development Roles
      Other Volunteers
      Outside Contractors and Consultants
    • 17. Successful Traits
      Strong Charismatic Leader
      Small organization leaders must wear several hats
      Large organizations – visionary, strong manager
      Board Leadership
      Sometimes boards are well-intentioned but not effective
      Effective Boards have defined job descriptions with term limits
    • 18. Successful Traits
      Development Office (think like a for-profit)
      This person must be able to wear many hats
      Has to be comfortable with people and asking for money
      They have to believe in the organization
      They have the highest turnover rate due to burn out, lack of passion for the organization, often follow money rather than cause
      Longevity helps
    • 19. Successful Traits
      Focused and Clear Mission
      Do one thing and do it well
      Diversifying sometimes leads to losing sight of the mission.
      Over 500,000 NEW not-for-profits have been established since 2000.
      The Columbus and Cleveland Foundations have encouraged similar NFPs to merge
      New Forms of Communication
    • 20.
      • Challenges
      Recognition does not equal Understanding
      Easter Seals
      Salvation Army
      March of Dimes
      Central Ohio Furniture Bank
      fka Columbus MAP (Material Assistance Providers)
      Painted Dog Conservation
      fka African Wild Dogs
      Ronald McDonald House
      Buckets for the Cure!
    • 21. New Forms of Communication
    • 22. New Forms of Communication
    • 23. New Forms of Communication
    • 24. Resources
      Free online resource to capture 990
      Paid subscription gives access to more information but data is generally available on not-for-profit’s website
      Foundation Center Online
      Paid subscription only
      US Public Foundations
      Mission, Grants information, Board Members
    • 25. Resources
      Association of Fundraising Professionals
      Fundraising and philanthropic trends
      Fundraising News
      Chronicle of Philanthropy
      Pulse of philanthropic giving worldwide
      Expanded content for subscribers
      Discounted online subscription
    • 26. Resources
      The Center of Philanthropy @ IUPUI
      Research institution on philanthropy
      Some recommendations: (Jeff Brooks) (Penelope Burk)
    • 27. Benefits of Non-Profits
      As a Client or Volunteer
      • Loyalty
      • 28. Exposure
      • 29. Greater Sense of Fulfillment
      • 30. Impact causes close to you
      • 31. Caution – Do not treat unprofessionally!
    • Summary and Conclusion
      Thank You!
      614.766.GIVE (4483) Mike@cramerfundraising.com877.926.GIVE (4483)
      For the entire presentation visit: http:
      Search:Cramer & Associates