Characteristics of a SuccessfulNot-For-ProfitIt’s not all about financials!<br />
Introductions<br />Patti Riordan<br />Consulting CFO-Cramer &Associates<br />Accounting Services Provider<br />Mike Schmid...
Today’s Agenda<br />Non-Profits & How They Work<br />Non-Profit Trends & Traits<br />Understanding Governance  <br />Resou...
Types of Not-for-Profits<br />Not-for-Profits are not all Charitable<br />A NFP is:<br />An organization that does not dis...
Types of Not-for-Profits<br />Trade Associations – OSCPA<br />Charities – Canine Companions<br />Foundation – Ohio State B...
The Non-Profit Spectrum<br />Small Social Service Agency<br />Bill & Melinda Gates Foundation<br />Arts & Culture Organiza...
A Look Back at the Decade<br />2000<br />2008<br />2009<br />2010<br />Funding levels improve.  Donor interests are reset ...
Giving USA:  The Numbers<br />2008 Contributions:  $307.65 billion by source of contributions<br />($ in billions – All fi...
2008 Contributions:  $307.65 Billion<br />Type of Recipient Organization<br />Source:  Giving USA 2009 - Giving USA Founda...
Donor Pyramid<br />Annual Giving<br /> Planned <br />Giving<br /> Major Giving<br />Investment<br />Donor <br />Commitment...
Gift Table<br />
Today’s Environment<br />Highly competitive - organizations can not afford mistakes or mixed messages <br />Duplication of...
Today’s Environment<br />Transparency and Accountability<br />Cost Accounting<br />Donors want to know where their money i...
Today’s Environment<br />990 Enhancements<br />Public information on salaries, policies, etc. has caused some heartburn<br...
The Competitive Environment<br />Cure Cancer<br />Save the Environment<br />Girl Scout Cookies<br />Disaster Assistance<br...
Non Profit Roles<br />Executive Director (most important!)<br />Development Director<br />Board of Directors <br />Advisor...
Successful Traits<br />Strong Charismatic Leader<br />Small organization leaders must wear several hats<br />Large organiz...
Successful Traits<br />Development Office (think like a for-profit)<br />This person must be able to wear many hats<br />H...
Successful Traits<br />Focused and Clear Mission<br />Do one thing and do it well<br />Diversifying sometimes leads to los...
<ul><li>Challenges</li></ul>Branding<br />Recognition does not equal Understanding<br />Easter Seals<br />Salvation Army<b...
New Forms of Communication<br />
New Forms of Communication<br />
New Forms of Communication<br />
Resources<br />Guidestar <br />www2.guidestar.org<br />Free online resource to capture 990<br />Paid subscription gives ac...
Resources<br />Association of Fundraising Professionals<br />www.afpnet.org<br />Fundraising and philanthropic trends<br /...
Resources<br />The Center of Philanthropy @ IUPUI<br />www.philanthropy.iupui.edu<br />Research institution on philanthrop...
Benefits of Non-Profits<br />As a Client or Volunteer<br /><ul><li>Loyalty
Exposure
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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
  • Cramer & associates cpa presentation characteristics of a successful not for profit june 2010

    1. 1. Characteristics of a SuccessfulNot-For-ProfitIt’s not all about financials!<br />
    2. 2. Introductions<br />Patti Riordan<br />Consulting CFO-Cramer &Associates<br />Accounting Services Provider<br />Mike Schmidt, CFRE<br />Vice President & Partner – Cramer & Associates<br />
    3. 3. Today’s Agenda<br />Non-Profits & How They Work<br />Non-Profit Trends & Traits<br />Understanding Governance <br />Resources<br />Service & Volunteer Considerations--Benefits<br />
    4. 4. Types of Not-for-Profits<br />Not-for-Profits are not all Charitable<br />A NFP is:<br />An organization that does not distribute its surplus to owners or shareholders; but uses them to help pursue its goals<br />Organized under Section 501(c) of the IRC<br />26 Types <br />Exempt from some types of federal income taxes<br />
    5. 5. Types of Not-for-Profits<br />Trade Associations – OSCPA<br />Charities – Canine Companions<br />Foundation – Ohio State Bar Association Foundation<br />Fraternal – Fraternal Order of Eagles<br />Arts Organizations – Columbus Museum of Art<br />Civic League – League of Women Voters<br />
    6. 6. The Non-Profit Spectrum<br />Small Social Service Agency<br />Bill & Melinda Gates Foundation<br />Arts & Culture Organizations<br />Universities<br />Hospitals<br />Historical Societies<br />Museums<br />Churches<br />Libraries<br />Service Clubs<br />Trade Associations<br />
    7. 7. A Look Back at the Decade<br />2000<br />2008<br />2009<br />2010<br />Funding levels improve. Donor interests are reset and new patterns of communication, participation and funding are emerging. <br />Traditional donor fundraising. Giving is strong on all levels – annual, capital and planned. Organizations independently engage issues and donors. <br />Financial Crisis. Fundraising is focused on basic human needs. Giving is more localized. Only the strongest of cases were supported. <br />
    8. 8. Giving USA: The Numbers<br />2008 Contributions: $307.65 billion by source of contributions<br />($ in billions – All figures are rounded)<br />Bequests<br />$22.66<br />7%<br />Foundations<br />$41.21<br />13%<br />Corporations<br />$14.50<br />5%<br />Individuals<br />$229.28<br />75%<br />
    9. 9. 2008 Contributions: $307.65 Billion<br />Type of Recipient Organization<br />Source: Giving USA 2009 - Giving USA Foundation<br />All Figures Are Rounded. Total May Not Be 100%<br />
    10. 10. Donor Pyramid<br />Annual Giving<br /> Planned <br />Giving<br /> Major Giving<br />Investment<br />Donor <br />Commitment<br />Involvement<br />Donor <br />Growth<br />Interest<br />Donor <br />Contact<br />Identification<br />
    11. 11. Gift Table<br />
    12. 12. Today’s Environment<br />Highly competitive - organizations can not afford mistakes or mixed messages <br />Duplication of services no longer tolerated – donors expect collaboration and partnerships <br />Entrepreneurial/earned income strategies most successful – funding to help generate new revenue for the organization to become more self sustaining<br />
    13. 13. Today’s Environment<br />Transparency and Accountability<br />Cost Accounting<br />Donors want to know where their money is going<br />Donors increasingly want to fund specific initiatives<br />Restricted and Unrestricted Funds<br />Allocating General Costs <br />
    14. 14. Today’s Environment<br />990 Enhancements<br />Public information on salaries, policies, etc. has caused some heartburn<br />Since the information is reported both calendar and fiscal year in places; questions arise:<br /> “I didn’t think we paid ‘him/her’ $xx,xxx”!<br />Spousal travel and other perks sensitivities <br />New disclosures make it mandatory that a point-person be capable of fielding questions about 990 data<br /> Form 990 information will receive heightened attention <br />
    15. 15. The Competitive Environment<br />Cure Cancer<br />Save the Environment<br />Girl Scout Cookies<br />Disaster Assistance<br />Grant a Wish<br />Rescue Puppies<br />Send a kid to camp<br />Historical Society<br />Parks & Recreation<br />Performing Arts<br />Hospital <br />Support your University<br />Eternal Salvation<br />PTO & Booster Clubs<br />
    16. 16. Non Profit Roles<br />Executive Director (most important!)<br />Development Director<br />Board of Directors <br />Advisory Council <br />Other Paid Development Staff <br />Paid Staff in Non-Development Roles<br />Other Volunteers<br />Outside Contractors and Consultants<br />
    17. 17. Successful Traits<br />Strong Charismatic Leader<br />Small organization leaders must wear several hats<br />Large organizations – visionary, strong manager<br />Board Leadership<br />Sometimes boards are well-intentioned but not effective<br />Effective Boards have defined job descriptions with term limits<br />
    18. 18. Successful Traits<br />Development Office (think like a for-profit)<br />This person must be able to wear many hats<br />Has to be comfortable with people and asking for money<br />They have to believe in the organization<br />They have the highest turnover rate due to burn out, lack of passion for the organization, often follow money rather than cause<br />Longevity helps<br />
    19. 19. Successful Traits<br />Focused and Clear Mission<br />Do one thing and do it well<br />Diversifying sometimes leads to losing sight of the mission.<br />Over 500,000 NEW not-for-profits have been established since 2000.<br />The Columbus and Cleveland Foundations have encouraged similar NFPs to merge<br />New Forms of Communication<br />
    20. 20. <ul><li>Challenges</li></ul>Branding<br />Recognition does not equal Understanding<br />Easter Seals<br />Salvation Army<br />March of Dimes<br />Central Ohio Furniture Bank<br />fka Columbus MAP (Material Assistance Providers)<br />Painted Dog Conservation<br />fka African Wild Dogs <br />Ronald McDonald House<br />Buckets for the Cure!<br />
    21. 21. New Forms of Communication<br />
    22. 22. New Forms of Communication<br />
    23. 23. New Forms of Communication<br />
    24. 24. Resources<br />Guidestar <br />www2.guidestar.org<br />Free online resource to capture 990<br />Paid subscription gives access to more information but data is generally available on not-for-profit’s website<br />Foundation Center Online<br />Fconline.foundationcenter.org<br />Paid subscription only<br />US Public Foundations<br />Mission, Grants information, Board Members<br />
    25. 25. Resources<br />Association of Fundraising Professionals<br />www.afpnet.org<br />Fundraising and philanthropic trends<br />Fundraising News<br />Chronicle of Philanthropy<br />Philanthropy.com<br />Pulse of philanthropic giving worldwide<br />Expanded content for subscribers<br />Discounted online subscription<br />
    26. 26. Resources<br />The Center of Philanthropy @ IUPUI<br />www.philanthropy.iupui.edu<br />Research institution on philanthropy<br />Blogs<br />Some recommendations:<br />www.futurefundraisingnow.com (Jeff Brooks)<br />www.burksblog.com (Penelope Burk)<br />
    27. 27. Benefits of Non-Profits<br />As a Client or Volunteer<br /><ul><li>Loyalty
    28. 28. Exposure
    29. 29. Greater Sense of Fulfillment
    30. 30. Impact causes close to you
    31. 31. Caution – Do not treat unprofessionally!</li></li></ul><li>Summary and Conclusion<br />Thank You!<br />614.766.GIVE (4483) Mike@cramerfundraising.com877.926.GIVE (4483) Dawn@cramerfundraising.comwww.CramerFundraising.com Patti.Riordan@priordan.net<br />For the entire presentation visit: http: www.slideshare.net<br />Search:Cramer & Associates<br />

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