This document summarizes information about nonprofit organizations and how they acquire funding. It discusses that nonprofits rely heavily on outside funding from sources like government grants, donations, and program revenues. It also explores challenges nonprofits face in managing their funds and being accountable. Newer fundraising techniques using social media and online platforms are mentioned. The document concludes that nonprofits play an important role in supporting communities and must adapt to changing economic conditions.
The document discusses how the economic downturn has negatively impacted fundraising for non-profit organizations. It notes that donations have declined significantly as individuals and businesses have less money to give due to the recession. This has forced many non-profits to cut staff and programming. The document provides statistics showing drops in donations and outlines strategies non-profits are using to try and increase fundraising, such as being more aggressive with government funders and avoiding spending cuts. It predicts it may take years for donations to return to pre-recession levels as the economy recovers slowly.
The Community Foundation for Palm Beach and Martin Counties, in partnership with Allegany Franciscan Ministries, conducted the 2nd Annual Nonprofit Survey to gather data regarding the needs in the community, the state of nonprofits and how best funders could be of assistance. Respondents were asked about their current challenges, the impact the economic downturn has had on the services they offer and their most pressing funding needs. Here are the overall results. A recording of a webinar that corresponds with this presentation is also available at www.yourcommunityfoundation.org/economy.
Nonprofit organizations face an uncertain future as they struggle with decreased government funding and increased competition from private businesses. They often have to adapt their missions to meet government priorities in order to receive funds, weakening their independence. Small nonprofits that do not receive government money struggle even more to survive. While civic engagement and new organizations offer some hope, nonprofits will continue struggling unless government funding is stabilized and their importance recognized.
The document provides an overview of strategies for non-profit organizations to survive financial distress during an economic downturn. It discusses assessing an organization's vulnerability, managing risks like cash and revenue, targeting core programs, managing cash flow, and building equity reserves to strengthen long-term sustainability. Key recommendations include tight cost control, diversifying revenue sources, focusing resources on top priorities, and working with advisors.
This document discusses how nonprofit organizations are affected by economic conditions and how they in turn affect the economy. It notes that while nonprofits provide important public services without charging fees, they struggle to obtain funding in a weak economy when donations decrease. However, nonprofits also stimulate economic activity through the funds they receive and distribute. The document examines various strategies nonprofits use to raise funds, from government support and loans to philanthropy and partnerships with other organizations.
The Community Foundation for Palm Beach and Martin Counties, in partnership with Allegany Franciscan Ministries, conducted the 2nd Annual Nonprofit Survey to gather data regarding the needs in the community, the state of nonprofits and how best funders could be of assistance. Respondents were asked about their current challenges, the impact the economic downturn has had on the services they offer and their most pressing funding needs. Here are the overall results. A recording of a webinar that corresponds with this presentation is also available at www.yourcommunityfoundation.org/economy.
This document proposes a social enterprise conference in Texas to address the financial needs of community organizations. It discusses how nonprofits that serve low-income communities are struggling due to decreased funding from grants and donations. The conference will explore social enterprise models and impact investments that could generate more stable revenue streams for nonprofits. The document provides an overview of topics that will be covered, including social enterprise, impact bonds, and how poorly performing organizations can improve. It also discusses challenges and solutions related to social enterprise and impact investing.
The Community Foundation for Palm Beach and Martin Counties, in partnership with Allegany Franciscan Ministries, conducted the 2nd Annual Nonprofit Survey to gather data regarding the needs in the community, the state of nonprofits and how best funders could be of assistance. Respondents were asked about their current challenges, the impact the economic downturn has had on the services they offer and their most pressing funding needs. Here are the results with a special focus on South Palm Beach County.
The document discusses how the economic downturn has negatively impacted fundraising for non-profit organizations. It notes that donations have declined significantly as individuals and businesses have less money to give due to the recession. This has forced many non-profits to cut staff and programming. The document provides statistics showing drops in donations and outlines strategies non-profits are using to try and increase fundraising, such as being more aggressive with government funders and avoiding spending cuts. It predicts it may take years for donations to return to pre-recession levels as the economy recovers slowly.
The Community Foundation for Palm Beach and Martin Counties, in partnership with Allegany Franciscan Ministries, conducted the 2nd Annual Nonprofit Survey to gather data regarding the needs in the community, the state of nonprofits and how best funders could be of assistance. Respondents were asked about their current challenges, the impact the economic downturn has had on the services they offer and their most pressing funding needs. Here are the overall results. A recording of a webinar that corresponds with this presentation is also available at www.yourcommunityfoundation.org/economy.
Nonprofit organizations face an uncertain future as they struggle with decreased government funding and increased competition from private businesses. They often have to adapt their missions to meet government priorities in order to receive funds, weakening their independence. Small nonprofits that do not receive government money struggle even more to survive. While civic engagement and new organizations offer some hope, nonprofits will continue struggling unless government funding is stabilized and their importance recognized.
The document provides an overview of strategies for non-profit organizations to survive financial distress during an economic downturn. It discusses assessing an organization's vulnerability, managing risks like cash and revenue, targeting core programs, managing cash flow, and building equity reserves to strengthen long-term sustainability. Key recommendations include tight cost control, diversifying revenue sources, focusing resources on top priorities, and working with advisors.
This document discusses how nonprofit organizations are affected by economic conditions and how they in turn affect the economy. It notes that while nonprofits provide important public services without charging fees, they struggle to obtain funding in a weak economy when donations decrease. However, nonprofits also stimulate economic activity through the funds they receive and distribute. The document examines various strategies nonprofits use to raise funds, from government support and loans to philanthropy and partnerships with other organizations.
The Community Foundation for Palm Beach and Martin Counties, in partnership with Allegany Franciscan Ministries, conducted the 2nd Annual Nonprofit Survey to gather data regarding the needs in the community, the state of nonprofits and how best funders could be of assistance. Respondents were asked about their current challenges, the impact the economic downturn has had on the services they offer and their most pressing funding needs. Here are the overall results. A recording of a webinar that corresponds with this presentation is also available at www.yourcommunityfoundation.org/economy.
This document proposes a social enterprise conference in Texas to address the financial needs of community organizations. It discusses how nonprofits that serve low-income communities are struggling due to decreased funding from grants and donations. The conference will explore social enterprise models and impact investments that could generate more stable revenue streams for nonprofits. The document provides an overview of topics that will be covered, including social enterprise, impact bonds, and how poorly performing organizations can improve. It also discusses challenges and solutions related to social enterprise and impact investing.
The Community Foundation for Palm Beach and Martin Counties, in partnership with Allegany Franciscan Ministries, conducted the 2nd Annual Nonprofit Survey to gather data regarding the needs in the community, the state of nonprofits and how best funders could be of assistance. Respondents were asked about their current challenges, the impact the economic downturn has had on the services they offer and their most pressing funding needs. Here are the results with a special focus on South Palm Beach County.
This document provides an introduction and literature review for a research paper analyzing CEO compensation at large American charities. The introduction discusses the debate around nonprofit executive compensation and outlines the research questions and methodology that will be used. The literature review covers the context of nonprofits in the US, including IRS requirements around tax exemptions, governance, and sanctions. It also summarizes existing research on factors that influence nonprofit executive compensation, such as organizational size, and debates around what constitutes "reasonable" pay. The paper aims to reconcile differences between calls for lower nonprofit CEO pay and variables found to impact higher compensation.
The document summarizes a keynote speech given by Steve Gunderson at the 10th Annual National Conference of the American Association of Grant Professionals in October 2008. The keynote addressed the major losses foundations experienced due to the economic crisis of 2008, with foundation endowments declining 30-45% on average. Gunderson and others encouraged philanthropy organizations to support nonprofits facing increased needs with reduced resources. Suggestions included communicating with donors and grantees, collaborating with other organizations, and advocating on issues of poverty and social spending.
This report provides an analysis of donor-advised funds in 2013 based on data from 1,012 charitable sponsors. It found that grants from donor-advised funds reached nearly $10 billion, contributions exceeded $17 billion, and charitable assets grew to over $53 billion - all record highs. The growth rates of grants, contributions, and assets were in the double digits. The average size of donor-advised fund accounts and total number of accounts also increased from the previous year. Donor-advised funds continue to be an increasingly popular charitable giving vehicle.
This document discusses a study that examines how an individual's charitable donations may be influenced by the average donations of their reference group. The study hypothesizes that individuals who use donations to signal status will donate amounts to maximize their utility as their marginal utility from signaling status changes based on their reference group's contributions. The study will use data on individual charitable donations in the US from 2002-2012, a period when tax laws changed the effective price of giving, to test if changes in reference group donations influence individual donation amounts.
Impact Investing Grad School Final PresentationRobert Williams
This presentation was my grad school final which focused on social impact investments in the nonprofit sector. This presentation was meant to serve as a "impact investment for dummies" in order to introduce the topic to those who may be unfamiliar with the intricacies behind impact investing- including myself. Social impact investing is the practice of providing financial opportunities to social causes and to the organizations who address these issues. Social impact investments are treated as loans in which nonprofit organizations are typically required to pay back at low or no interest rates and can also be a tool for individual investors to fund causes and can seek a return on their investment. There are various forms of impact investing tools including program related investments (PRI), mission related investments (MRI), social impact bonds, social impact guarantees, outcome-based contracting, and impact evaluations; all with their own unique qualities and legal classifications. This research explores the practice of social impact investing, how individuals are investing, the organizations who grant these types of investments, the impact and future of the nonprofit sector through these investments, and the rise of social impact investing practices. This research is also meant to shed light on which organizations are most attractive and eligible for social impact investments, the best practices for applying and maintaining these investments, while providing legal and strategic recommendations in the practice of investing for social impact.
Noted national author, attorney and entrepreneur/social entrepreneur and L3C guru discusses key issues to keep in mind when deciding whether to be a for-profit or a not-for-profit organization. He also discusses the lasted events in the growing L3C movement for the social sector.
The Social Enterprise Alliance North Texas Chapter convened entrepreneurs, nonprofit executives and social enterprise practitioners in June to learn about new legal and tax structures for social enterprise organizations. New hybrid organizations are adopting emerging social enterprise models, employing innovative strategies, and creating business alliances to drive positive social change. This interactive presentation helped nonprofit leaders and social entrepreneurs understand a myriad of legal, tax, and governance challenges in the Fourth Sector and learn ways to overcome them by using business efficiencies to achieve nonprofit goals. Marc Lane, a national-recognized expert on social enterprise law, led the discussion and offered his practical advice and answered questions about these issues and others:
The L3C business model and how social enterprises are already benefiting
Relieving legal tension between financial and social objectives
Understanding social enterprise legal issues
· Reducing the risks and financial burden of earned-income social ventures
· Leveraging foundations' "program-related investments" to attract private-sector capital for earned-income ventures
Converting nonprofit funders into social venture capitalists
An overview of private foundations (non-operating) for the financial advisor, planned giving officer, or philanthropist interested in learning about the legal and tax structure.
The document summarizes the results of a survey of 447 Minnesota nonprofits conducted in July 2010 to assess the impact of the recession. The following key points were reported:
1) While Minnesota's economy is showing signs of recovery, nonprofits are still experiencing challenges such as increased demand for services and declining revenues. Smaller nonprofits face greater difficulties with fewer resources.
2) The severity of declining nonprofit revenues lessened in the first half of 2010 compared to previous surveys, though over half still reported revenue declines. Reductions in individual contributions and foundation funding stabilized.
3) After staff reductions during the recession, some nonprofits began hiring again in the first half of 2010, primarily
The document provides an outline and background for a strategic market research presentation by Rainmaker Solutions for the Mount Pleasant Land Conservancy. Key points from the document include:
- An analysis of fundraising best practices and trends in land conservation that could inspire new strategies for MPLC.
- Quantitative analysis found MPLC relies more on memberships and special events than peers, and could benefit from focusing on grants, major gifts, and annual fundraising.
- A SWOT analysis identified strengths like dedicated staff but also weaknesses like lack of fundraising experience and blurred branding.
- Survey results found members and non-members view MPLC's role as land preservation and education but more involvement is needed.
This document discusses debt, debt forgiveness, and governance as enabling conditions for debt forgiveness as a form of foreign aid. It reviews literature on why countries take on public debt, the effectiveness of foreign aid, and major debt crises like the 1982 Latin American debt crisis and 1997 Asian Financial Crisis. The document performs a literature review on debt and governance factors that influence the amount of debt forgiveness a country receives. It hypothesizes that better macroeconomic conditions and governance are related to higher levels of debt forgiveness.
The US National Advisory Board Issues Policy Recommendations To Encourage Imp...ImpactInvestUS
The US National Advisory Board on Impact Investing released a report with policy recommendations to encourage impact investing. The report calls for removing regulatory barriers, increasing effectiveness of government programs, and providing incentives for new private impact investments. Several members of the National Advisory Board pledged millions for impact investment projects that generate social and financial returns, including $100 million from Omidyar Network, $50 million from the Case Foundation, $25 million from the MacArthur Foundation, and $9 million from the Ford Foundation. The National Advisory Board was formed to advise on policies to drive social impact investing in the US.
Starting Point: Social finance for sustainable food, fishing and farmingSocial Finance
Social finance is an approach to managing money that delivers both social/environmental benefits and financial returns. It aims to leverage existing capital to attract new investment for public benefit. Some key features of social finance include providing environmental sustainability, poverty reduction, jobs for marginalized populations, and carbon reduction. We need social finance because traditional financial systems do not adequately address challenges faced by sectors like sustainable food and farming. Social finance can help by providing capital for facilities, operations, technical assistance, and enabling public policy.
This document provides an outline and summary of a strategic market research presentation for Nature's Haven Land Preserve. The presentation covers trends in land conservation fundraising, results from stakeholder interviews and surveys, financial analysis of Nature's Haven compared to peer organizations, and recommendations for improving fundraising efforts. Key findings include that Nature's Haven relies more on memberships and events than peers but brings in less money from these sources. Peers perform better by focusing on grants, gifts and donations rather than events. Nature's Haven also has opportunities to generate more income from programs, rentals, and qualify for more government grants.
This document provides an overview of nonprofit management and organizations. It discusses that nonprofits conduct affairs to assist others, have a cause but no shareholders, and are exempt from some taxes. Nonprofits include daycares, schools, hospitals, museums and more. They meet public needs through private enterprise and efforts. Nonprofits are also categorized into charitable organizations, advocacy groups, social/recreational groups, and membership groups. Nonprofits have customers rather than businesses, including donors, volunteers, clients, and the general public. Providing good customer service is important for a nonprofit's reputation and success.
Blended Financing for Impact: The Opportunity for Social Finance in Supportiv...Social Finance
This presentation provided an overview of social finance and its potential application to supportive housing in Canada. It defined social finance as investments that generate both social impact and financial returns. The presentation noted there is significant demand for new supportive housing that exceeds current government funding. It highlighted examples of social finance used for affordable housing projects and discussed challenges and opportunities for supportive housing providers to utilize social finance. Priority actions were suggested for various stakeholders to help acquire or develop more supportive housing units, such as establishing a national housing development corporation or capital fundraising campaign. The presentation concluded by providing information on additional resources available to learn more.
In this paper we deal with the relationship between external donors and village organizations (VOs) in Western Sub-Saharan Africa. We utilize a large dataset of village organizations in rural areas of Senegal and Burkina Faso. We argue that the kind of relationship established with northern donors may have effects on the governance mechanisms of the village organization. We investigate to what extent differences in the foundation of the VO and of the partnership with the external donor can partially explain outcomes and membership structures of the VO itself. Our results go in the direction of possible diverging effects of a donor intervention in the village organization, according to the degree of proactivity and initiative that the VO
displays.
Authors: Cecilia Navarra, University of Namur, CRED, Rempart de la Vierge, 8, 5000 Namur, Belgium. Elena Vallino, University of Torino, Department of Economics and Statistics, Lungo Dora Siena 100/A, 10153 Torino, Italy.
Financial assistance and community health needs benefitsEY
With reporting requirements for hospitals on Form 990 Schedule H evolving, we examine interactions with the Internal Revenue Service and congressional activity related to such topics.
Recession, Renewal, Revolution Nonprofit and Voluntary Action in an Age of Tu...Daniel P. Vitaletti
This document provides a summary of a research paper on the impact of the economic downturn on nonprofits in Northeast Pennsylvania. It finds that the region experienced a reduction in revenue, more aggressive revenue generation strategies, organizational consolidation, and a retraction of services, especially in rural counties. Government relies heavily on nonprofits to deliver social services, but discretionary funding cuts have reduced nonprofit capacity. The economic recovery has been slow and funding remains constrained, challenging nonprofits' ability to meet social needs.
This document discusses decision making processes in different areas of the public sector, including healthcare, non-profit organizations, and government. It describes common decision making techniques like cost-benefit analysis. In healthcare, decisions are made through collaborative models between physicians and patients. Non-profits use strategic planning and consider stakeholder input. Government decision making involves multiple branches and levels working together through various models. The document concludes that effective decision making is important across all public sector domains.
This document proposes a curriculum to support international master's students in their transition to Harvard Graduate School of Education. The curriculum would consist of orientation workshops focusing on cultural identity, communication differences, and challenges students may face. Surveys and reflections would help students examine how their cultural background influences their experience and identify resources for support. By addressing cultural adjustment early, the goal is for international students to feel more integrated and able to succeed academically and socially throughout their one-year program. The curriculum aims to build community among international students and increase understanding between cultures represented at HGSE.
This document provides an introduction and literature review for a research paper analyzing CEO compensation at large American charities. The introduction discusses the debate around nonprofit executive compensation and outlines the research questions and methodology that will be used. The literature review covers the context of nonprofits in the US, including IRS requirements around tax exemptions, governance, and sanctions. It also summarizes existing research on factors that influence nonprofit executive compensation, such as organizational size, and debates around what constitutes "reasonable" pay. The paper aims to reconcile differences between calls for lower nonprofit CEO pay and variables found to impact higher compensation.
The document summarizes a keynote speech given by Steve Gunderson at the 10th Annual National Conference of the American Association of Grant Professionals in October 2008. The keynote addressed the major losses foundations experienced due to the economic crisis of 2008, with foundation endowments declining 30-45% on average. Gunderson and others encouraged philanthropy organizations to support nonprofits facing increased needs with reduced resources. Suggestions included communicating with donors and grantees, collaborating with other organizations, and advocating on issues of poverty and social spending.
This report provides an analysis of donor-advised funds in 2013 based on data from 1,012 charitable sponsors. It found that grants from donor-advised funds reached nearly $10 billion, contributions exceeded $17 billion, and charitable assets grew to over $53 billion - all record highs. The growth rates of grants, contributions, and assets were in the double digits. The average size of donor-advised fund accounts and total number of accounts also increased from the previous year. Donor-advised funds continue to be an increasingly popular charitable giving vehicle.
This document discusses a study that examines how an individual's charitable donations may be influenced by the average donations of their reference group. The study hypothesizes that individuals who use donations to signal status will donate amounts to maximize their utility as their marginal utility from signaling status changes based on their reference group's contributions. The study will use data on individual charitable donations in the US from 2002-2012, a period when tax laws changed the effective price of giving, to test if changes in reference group donations influence individual donation amounts.
Impact Investing Grad School Final PresentationRobert Williams
This presentation was my grad school final which focused on social impact investments in the nonprofit sector. This presentation was meant to serve as a "impact investment for dummies" in order to introduce the topic to those who may be unfamiliar with the intricacies behind impact investing- including myself. Social impact investing is the practice of providing financial opportunities to social causes and to the organizations who address these issues. Social impact investments are treated as loans in which nonprofit organizations are typically required to pay back at low or no interest rates and can also be a tool for individual investors to fund causes and can seek a return on their investment. There are various forms of impact investing tools including program related investments (PRI), mission related investments (MRI), social impact bonds, social impact guarantees, outcome-based contracting, and impact evaluations; all with their own unique qualities and legal classifications. This research explores the practice of social impact investing, how individuals are investing, the organizations who grant these types of investments, the impact and future of the nonprofit sector through these investments, and the rise of social impact investing practices. This research is also meant to shed light on which organizations are most attractive and eligible for social impact investments, the best practices for applying and maintaining these investments, while providing legal and strategic recommendations in the practice of investing for social impact.
Noted national author, attorney and entrepreneur/social entrepreneur and L3C guru discusses key issues to keep in mind when deciding whether to be a for-profit or a not-for-profit organization. He also discusses the lasted events in the growing L3C movement for the social sector.
The Social Enterprise Alliance North Texas Chapter convened entrepreneurs, nonprofit executives and social enterprise practitioners in June to learn about new legal and tax structures for social enterprise organizations. New hybrid organizations are adopting emerging social enterprise models, employing innovative strategies, and creating business alliances to drive positive social change. This interactive presentation helped nonprofit leaders and social entrepreneurs understand a myriad of legal, tax, and governance challenges in the Fourth Sector and learn ways to overcome them by using business efficiencies to achieve nonprofit goals. Marc Lane, a national-recognized expert on social enterprise law, led the discussion and offered his practical advice and answered questions about these issues and others:
The L3C business model and how social enterprises are already benefiting
Relieving legal tension between financial and social objectives
Understanding social enterprise legal issues
· Reducing the risks and financial burden of earned-income social ventures
· Leveraging foundations' "program-related investments" to attract private-sector capital for earned-income ventures
Converting nonprofit funders into social venture capitalists
An overview of private foundations (non-operating) for the financial advisor, planned giving officer, or philanthropist interested in learning about the legal and tax structure.
The document summarizes the results of a survey of 447 Minnesota nonprofits conducted in July 2010 to assess the impact of the recession. The following key points were reported:
1) While Minnesota's economy is showing signs of recovery, nonprofits are still experiencing challenges such as increased demand for services and declining revenues. Smaller nonprofits face greater difficulties with fewer resources.
2) The severity of declining nonprofit revenues lessened in the first half of 2010 compared to previous surveys, though over half still reported revenue declines. Reductions in individual contributions and foundation funding stabilized.
3) After staff reductions during the recession, some nonprofits began hiring again in the first half of 2010, primarily
The document provides an outline and background for a strategic market research presentation by Rainmaker Solutions for the Mount Pleasant Land Conservancy. Key points from the document include:
- An analysis of fundraising best practices and trends in land conservation that could inspire new strategies for MPLC.
- Quantitative analysis found MPLC relies more on memberships and special events than peers, and could benefit from focusing on grants, major gifts, and annual fundraising.
- A SWOT analysis identified strengths like dedicated staff but also weaknesses like lack of fundraising experience and blurred branding.
- Survey results found members and non-members view MPLC's role as land preservation and education but more involvement is needed.
This document discusses debt, debt forgiveness, and governance as enabling conditions for debt forgiveness as a form of foreign aid. It reviews literature on why countries take on public debt, the effectiveness of foreign aid, and major debt crises like the 1982 Latin American debt crisis and 1997 Asian Financial Crisis. The document performs a literature review on debt and governance factors that influence the amount of debt forgiveness a country receives. It hypothesizes that better macroeconomic conditions and governance are related to higher levels of debt forgiveness.
The US National Advisory Board Issues Policy Recommendations To Encourage Imp...ImpactInvestUS
The US National Advisory Board on Impact Investing released a report with policy recommendations to encourage impact investing. The report calls for removing regulatory barriers, increasing effectiveness of government programs, and providing incentives for new private impact investments. Several members of the National Advisory Board pledged millions for impact investment projects that generate social and financial returns, including $100 million from Omidyar Network, $50 million from the Case Foundation, $25 million from the MacArthur Foundation, and $9 million from the Ford Foundation. The National Advisory Board was formed to advise on policies to drive social impact investing in the US.
Starting Point: Social finance for sustainable food, fishing and farmingSocial Finance
Social finance is an approach to managing money that delivers both social/environmental benefits and financial returns. It aims to leverage existing capital to attract new investment for public benefit. Some key features of social finance include providing environmental sustainability, poverty reduction, jobs for marginalized populations, and carbon reduction. We need social finance because traditional financial systems do not adequately address challenges faced by sectors like sustainable food and farming. Social finance can help by providing capital for facilities, operations, technical assistance, and enabling public policy.
This document provides an outline and summary of a strategic market research presentation for Nature's Haven Land Preserve. The presentation covers trends in land conservation fundraising, results from stakeholder interviews and surveys, financial analysis of Nature's Haven compared to peer organizations, and recommendations for improving fundraising efforts. Key findings include that Nature's Haven relies more on memberships and events than peers but brings in less money from these sources. Peers perform better by focusing on grants, gifts and donations rather than events. Nature's Haven also has opportunities to generate more income from programs, rentals, and qualify for more government grants.
This document provides an overview of nonprofit management and organizations. It discusses that nonprofits conduct affairs to assist others, have a cause but no shareholders, and are exempt from some taxes. Nonprofits include daycares, schools, hospitals, museums and more. They meet public needs through private enterprise and efforts. Nonprofits are also categorized into charitable organizations, advocacy groups, social/recreational groups, and membership groups. Nonprofits have customers rather than businesses, including donors, volunteers, clients, and the general public. Providing good customer service is important for a nonprofit's reputation and success.
Blended Financing for Impact: The Opportunity for Social Finance in Supportiv...Social Finance
This presentation provided an overview of social finance and its potential application to supportive housing in Canada. It defined social finance as investments that generate both social impact and financial returns. The presentation noted there is significant demand for new supportive housing that exceeds current government funding. It highlighted examples of social finance used for affordable housing projects and discussed challenges and opportunities for supportive housing providers to utilize social finance. Priority actions were suggested for various stakeholders to help acquire or develop more supportive housing units, such as establishing a national housing development corporation or capital fundraising campaign. The presentation concluded by providing information on additional resources available to learn more.
In this paper we deal with the relationship between external donors and village organizations (VOs) in Western Sub-Saharan Africa. We utilize a large dataset of village organizations in rural areas of Senegal and Burkina Faso. We argue that the kind of relationship established with northern donors may have effects on the governance mechanisms of the village organization. We investigate to what extent differences in the foundation of the VO and of the partnership with the external donor can partially explain outcomes and membership structures of the VO itself. Our results go in the direction of possible diverging effects of a donor intervention in the village organization, according to the degree of proactivity and initiative that the VO
displays.
Authors: Cecilia Navarra, University of Namur, CRED, Rempart de la Vierge, 8, 5000 Namur, Belgium. Elena Vallino, University of Torino, Department of Economics and Statistics, Lungo Dora Siena 100/A, 10153 Torino, Italy.
Financial assistance and community health needs benefitsEY
With reporting requirements for hospitals on Form 990 Schedule H evolving, we examine interactions with the Internal Revenue Service and congressional activity related to such topics.
Recession, Renewal, Revolution Nonprofit and Voluntary Action in an Age of Tu...Daniel P. Vitaletti
This document provides a summary of a research paper on the impact of the economic downturn on nonprofits in Northeast Pennsylvania. It finds that the region experienced a reduction in revenue, more aggressive revenue generation strategies, organizational consolidation, and a retraction of services, especially in rural counties. Government relies heavily on nonprofits to deliver social services, but discretionary funding cuts have reduced nonprofit capacity. The economic recovery has been slow and funding remains constrained, challenging nonprofits' ability to meet social needs.
This document discusses decision making processes in different areas of the public sector, including healthcare, non-profit organizations, and government. It describes common decision making techniques like cost-benefit analysis. In healthcare, decisions are made through collaborative models between physicians and patients. Non-profits use strategic planning and consider stakeholder input. Government decision making involves multiple branches and levels working together through various models. The document concludes that effective decision making is important across all public sector domains.
This document proposes a curriculum to support international master's students in their transition to Harvard Graduate School of Education. The curriculum would consist of orientation workshops focusing on cultural identity, communication differences, and challenges students may face. Surveys and reflections would help students examine how their cultural background influences their experience and identify resources for support. By addressing cultural adjustment early, the goal is for international students to feel more integrated and able to succeed academically and socially throughout their one-year program. The curriculum aims to build community among international students and increase understanding between cultures represented at HGSE.
This document provides materials for two lessons on cultural identity and communication for international students. Lesson 1 focuses on defining culture and cultural identity. Students will discuss their perceptions of American culture and how their own cultures are perceived. They will also reflect on how culture impacts communication. Lesson 2 focuses on differences in communication styles and the concept of small talk. Students will learn about small talk in American culture and ways to engage in small talk. The lessons aim to help students understand cultural diversity and communication challenges as international students.
Give your home the peaceful tranquility and serenity that a beautiful candle brings, and fill it with the exquisite scent of lavender. The Lavender Tall Scented Candle by New Haven is designed to infuse any room with its alluring fragrance, and nothing creates a haven like the soft glow of candlelight.
Sreedevi Patnala outlines what matters most to her, including the well-being of others, honesty, friendship, a sense of achievement, and synergy. Specifically, she cites caring for family and friends, financial stability, individuality, commitment to work, overcoming challenges, helping others, and a drive for continuous learning and progress as most important from both a personal and professional perspective.
CoreNet 2015 Academic Challenge - Team 15073 - Multimedia Presentationmeazured_isles
This is the multimedia portion of Team 15073's submission to the CoreNet Global 2015 Academic Challenge. Our topics cover using Business Intelligence models to adjust corporate real estate portfolios for large financial service firms
This document is an executive report analyzing the financial ratios of Durdans Hospital and Asiri Hospital for the years 2013 and 2014. It begins with an introduction and acknowledgements. It then provides the objectives of the study, which are to analyze liquidity, leverage, activity, and profitability ratios to evaluate financial performance and the impact of assets and liabilities. The methodology describes the study period and data collection sources. The document then presents various financial ratios that will be calculated and analyzed, including liquidity, leverage, profitability, and activity ratios. Finally, it provides a data table with financial figures for both hospitals in 2013 and 2014 that will be used to calculate the ratios.
Funding for Non-Profit Organizations face many challenges obtaining funds. Most discussions focus on sourcing funds, as lack of funding creates difficulties paying expenses and meeting societal expectations. Small NPOs have greater financial problems than large ones, as funders are wary of mismanagement risks with small organizations. Funding problems worsen as small NPOs must compete with large organizations for limited funding.
This document proposes a research project on non-profit organizations. Specifically, it focuses on conducting research on the New Zealand Red Cross, a large non-profit in New Zealand. The proposal outlines the research question, aim, literature review methodology, targets, and project management aspects of studying the NZ Red Cross. The goal is to better understand how the organization mobilizes resources to help vulnerable communities in line with its core values of integrity, partnership, diversity, leadership and innovation.
Different Views Of The Comparison Between Non-Profit And...Kate Loge
This document discusses and compares non-profit and for-profit organizations. It notes that while non-profits are exempt from income taxes, they still must operate like businesses by collecting money, marketing themselves, and using similar marketing strategies as for-profits. The document also discusses some of the challenges both non-profits and for-profits face, such as a lack of funding, competition in the market, and the need for transparency.
The federal government provides various forms of financial assistance including grants, loans, subsidies, and other funding. This assistance supports important public purposes like education, medical research, disaster relief, and more. Recipients of financial assistance include small businesses, non-profits, universities, and individuals. There are many programs administered across different government agencies that are intended to help those in need and benefit the public good. It is important to research the different types of financial assistance available and understand the application requirements.
Respond to each peer initial post and question at the end with a resmickietanger
Respond to each peer initial post and question at the end with a response about 3-4 sentences long.
Peer 1
Voluntary organizations funded by public contributions have existed since the seventeenth century; however, didn’t become a unified sector until the 1970s (Renz, 2016, pg. 7). Because non-profits are diverse and complex it can be difficult to define and make inclusive to one definition. It can refer to charitable tax-exempt organizations, civic organizations that do not allow the deductibility of donations, and unincorporated organizations (Renz, 2016, pg. 3).
The non-profit sector covers a broad spectrum of public services such as hospitals, foundations, charities, religious institutions, and disaster relief organizations. Acknowledging the importance of non-profits is easy as these organizations attempt to address the issues of millions of people whether it be donations, programs, or services. Although tax exempt, government policies play a crucial role in the growing number of nonprofit organizations either indirectly by providing incentives or directly through grants and contracts (Renz, 2016, pg. 17). Non-profits don’t exist to make a profit but to use excess resources to meet needs that the government alone cannot fulfill. These organizations are not prohibited from earning revenue as long as the profit-making activities are related to the recognized program purpose.
The three main sectors private, non-profit, and the government share several similarities and key differences. One of the main differences is how their resources are handled. A non-profit organizations’ money is legally required to support its mission while private entities are able to distribute their resources to shareholders. Government agencies redirect their surplus resources back into government initiatives. Political shifts also highlight additional differences. As the political power changes so do the priorities in governmental agencies and the availability of public sector programs (The role of non-profits vs government and for profit sectors, 2015). Political shifts can garner more support and funding for non-profits but because the organizations secure funding from outside sources, programs can continue indefinitely as long as resources are available without any effect of a political change.
Non-profits are typically restricted with their work inside of the community as long as its business and mission related. Most restrictions imposed on non-profits are administered through state and federal government agencies through tax compliance, incorporation rules, and political participation.
Peer 2
What is the nonprofit sector? A nonprofit sector is an organization that provides a service(s) that is not conducted for the purpose of making a profit. The organization is sustained by donations, sales of goods and services, or by revenue from the government (Wolfe). The United States has three sectors government, private, and nonprofit. The private nonp ...
This document provides background information on Childhood Saved, a non-profit organization that aims to help victims of childhood sexual abuse. It discusses Childhood Saved's mission, services, staffing plan, target audiences, and competition in the non-profit sector. Market research is presented on non-profits, fundraising, and demographics related to childhood sexual abuse. A SWOT analysis identifies Childhood Saved's strengths, weaknesses, opportunities, and threats. The document aims to help Childhood Saved identify local markets and provide a financial forecast to guide its operations and fundraising.
United Way\'s Center for Nonprofits created a presentation about upcoming trends in 2011 for which nonprofits need to be on the lookout. These trends can dramatically affect an organization\'s funding and business practices. All information contained in this report was based on research that includes sources such as the Pew Report, the Nonprofit Times, and the Journal for Nonprofits.
The survey of more than 1,900 nonprofit leaders in markets nationwide found that while there are some signs of hope, many nonprofits are straining under year-after-year increases in the demand for services. If you're interested in a customized report by geography or sub-sector, please contact Nonprofit Finance Fund!
Running head ETHICAL CONTRIBUTIONS 1 (Including a Runni.docxsusanschei
Running head: ETHICAL CONTRIBUTIONS 1
(Including a Running head and page numbers help to keep your assignment organized.)
Are Contributions to Political Campaigns Ethical?
Joanna Student
SOC120: Introduction to Ethics & Social Responsibility (Course Section)
Week 5 Final Paper
Dr. Ashford Instructor
July, 1, 20XX
Sticky Note
Please be sure to note the format for the final paper. This paper contains a an organized heading, a succinct and relevant title, page numbers and a running header.
ETHICAL CONTRIBUTIONS 2
Ethical Contributions to Political Campaigns
A question that comes up frequently in political discussions is whether organizations like
corporations have too much influence over the political landscape today. Corporations have
many resources through which to effect political change, including lobbyists, quid pro quo back
door arrangements and campaign contributions. Because these funds can have a large influence
on who wins elections and the legislation that politicians support, it is important for an educated
citizenry to be aware of these contributions, and to consider their ethical implications. I will
argue that from the utilitarian perspective, indirect contributions to political campaigns by
organizations like corporations and unions can be ethical and should be allowed so long as there
are sufficient regulations in place to prevent undue harm that might result from giving large
organizations too much influence over the political process. I will contrast this view with that of
ethical egoism, which would argue that such contributions are ethical inasmuch as they allow
corporations to pursue their own long term interests.
According to the Federal Elections Commission (2004), "The Federal Election Campaign
Act (the Act) places monetary limits on contributions to support candidates for federal office and
prohibits contributions from certain sources." However, corporations are allowed to create
separate bank accounts and then make donations from these accounts to political campaigns as
long as they are not connected directly to the operation of the business. Regarding this type of
donation, the FEC (2004) stated that, "Contributions may…be made from separate segregated
funds (also called political action committees or PACs) established by corporations, labor
organizations, national banks, and incorporated membership organizations.” In other words,
corporations can set up PACs that in turn give large amounts of money to support candidates.
Because these funds can have a large influence on who wins elections and the legislation that
Sticky Note
This section includes a comprehensive introduction and a clear thesis statement that effectively reflects the argument of the paper and links the chosen ethical theories and perspective to the chosen social issue.
Sticky Note
Government websites can be useful sources of information. Consider using info ...
The document discusses how non-profits can manage relationships with donors and maximize fundraising in a difficult economic environment. It recommends strengthening data management to track donors and evaluate fundraising programs. It also emphasizes continuing relationship-building with both current and new donors through effective communication and involvement in the organization's mission. Grantmakers are anticipated to give fewer but larger grants while focusing on existing grantees, making the funding environment more competitive.
Running Head SETTING A BUDGET1SETTING A BUDGET 6.docxtodd521
Running Head: SETTING A BUDGET 1
SETTING A BUDGET 6
SETTING A BUDGET
Ashley Cook
HMSV8304
The American Red Cross is an organization with immeasurable commitment to provision of compassionate care to people who are in need in America. As such, this is their mission and their budget epitomizes this. The largest chunk of the income that is mainly received from grants from governments and organizations as well as donations from organizations is spent on humanitarian activities. For the year 2018, 91.85% of the $0.5 billion that was raised from the aforementioned sources was used in humanitarian activities. These included helping people who needed care in in disasters in the shortest notice, ensuring and maintaining community health especially by being in the frontline to deliver blood to patients who needed it in our health facilities. The organization recognizes the importance of mitigating disasters before they happen and therefore set aside $1,659,000 that was used to keep teams ready to stop a disaster before it happened or minimize injury or loss of life as much as possible. This is in line with the organizations principle of being proactive rather than react to disasters when they happen.
The American Red Cross has a total 12,534 permanent employees spread all over the nation to offer humanitarian help whenever and wherever it is needed (Hutchinson, 2018). These are selfless individuals who are always risking their lives to save others’. The organization therefore aims at giving the employees the best working conditions given the circumstances and making sure that they stay safe as much as possible while delivering help. As such, American Red Cross buys the best equipment and vehicles to help the employees as well as volunteers in humanitarian work to get to sites of disasters in the shortest time possible and safely. This is why the company has invested in top notch ambulances that have lifesaving equipment that may be used by the employees to save lives in an occurrence of a disaster.
As indicated above, funds that are used by the organization to finance its operations as well as management are received from state and federal government, and international organizations as grants or from the public as donations. Often times, the funders wish to know how the funds that they give out the cause of saving human lives through humanitarian assistance is used (Schnupp & Möller 2018). The organization therefore posts its official budget on its official website where it can be accessed by all people. In the last 5 years, the donations have been on the rise and this is a good indicator that the people who fund the organizations are happy about how the money they give to it is being used.
One of the key strengths in the company is the manner in which the employees relate with each other and the organization at large. The organization appreciates the selflessness of the people working there. As such, employee retreats are held.
The Volunteer Protection Act provides liability protection for volunteers of non-profit organizations and government entities. It protects volunteers from civil lawsuits related to harm caused while performing their volunteer duties, unless they acted with gross negligence or criminal misconduct. Participating in a National Voluntary Organizations Active in Disaster agency provides benefits to volunteers like learning opportunities, skills development, and networking. The Incident Command system helps provide structure, accountability, and coordination between responding organizations.
2. Nonprofit organizations were created to serve the public. The government cannot take
care of all our needs so nonprofits work hard to make sure the public’s needs are met. They
generate profits for a mutual benefit rather than an accumulation of profit for business owners
and investors. There are two different categories of nonprofits, member serving and public. “The
nonprofit sector is a collection of entities that are organizations; private as opposed to
governmental; nonprofit distributing; self governing; voluntary; and of public benefit” (Luckert,
Learningtogive.org).
According to the Internal Revenue Service (IRS) there is around 1.5 million nonprofit
organizations registered as tax exempt. Millions of other formal and non-formal nonprofit
organizations exist but are not registered with the IRS because their total revenue is under
$5,000. Nonprofit organizations in America have a combined revenue of approximately $621.4
billion, which represents around 6.2% of the nation’s economy (Luckert 2014). Over the years
nonprofit organizations have grown rapidly making funds scarce. They must work harder in
order to acquire funds because the “competition” increases to grow everyday.
There are many different forms of nonprofit organizations, charities, foundations, social
welfare or advocacy organizations, professional and trade organizations, and religious
organizations. No matter what kind of aid or help is needed there is more than likely some sort of
organization set up already. These organizations are very important to the people receiving the
services. Especially if it is a special healthcare related organization for example, St. Jude’s
Hospital for cancer research or The Wounded Warrior Project for wounded veterans. Everyday
organizations like these are helping patients and families recover from a desperate time of need.
The nonprofit sector is evolving rapidly as organizations expand their focus on
efficiency, sustainability, and accountability (Suarez 2011,307). Nonprofit organizations work
3. hard to raise money in order to keep helping the public. One of the main problems they
encounter is acquiring funds to keep their organization alive. The purpose of this paper is to
analyze different techniques nonprofit organizations use to acquire money for their
organizations. I will also talk about new ways researchers are experimenting with acquiring
funds to raise money and awareness for nonprofit organizations in the future. Not all acquired
funds can go directly to the public. Just like in a business there are so many different demands
that need to be met before they can distribute the funds to the cause. The majority of all the
funds come from government grants, government-paid program services revenues, and public
donations (Gaver and Im 2014, 1). So it is crucial for these organizations to keep close tabs on
how much money they have and where it is most needed.
Where Funds Come From
As mentioned above nonprofit organizations rely on outside funds to keep them up and
running. A sample of 105,400 nonprofit organizations found that roughly 60 percent of funding
comes from program services, 20 percent from public contributions 10 percent from government
grants and the remainder from investment income and other miscellaneous sources (Gaver 2014,
3). Depending on where the organization receives the majority of their funding is where they will
get the most scrutiny. For example if most of the funds come for government grants, the
organizations board members will be forced to keep detailed record of where excess money goes.
Restrictions are also high when money comes from stakeholders that donate large sums of
money to the organization. Like the government, stakeholders want to make sure the money is
going to the right people and parts of the nonprofit organization. Though money that comes from
investment incomes gives the board more leeway on where the money can go and who gets the
4. excess of the funds. (Graver 2014, 2).
Nonprofit organizations have both negative and positive relationships with their boards.
The boards of directors in nonprofit organizations are typically responsible for fundraising and
development, setting staff compensation, finance, budget, and accounting, investment
management, and finally financial statement audit (Primoff 2012, 51). Graver and Im found that
increased board oversight is associated with lower agency costs, but there is question about their
effectiveness as a governance mechanism (Graver 2014, 2). The more government funding that
is provided the more professionalized the board becomes, meaning that community
representation and knowledge of local needs decreases (Suarez 2011, 309). If a problem arises
and no one can identify who exactly caused the problem, then it is the board that is at fault.
“Nonprofit laws generally impose three fiduciary duties on board members, a duty of care, a duty
of loyalty, and a duty of obedience” (Primoff 2012, 51).
Graver and Im’s analysis broadly suggests that excess compensation is lower in nonprofit
organizations that derive a greater proportion of their revenues from government grants,
government-paid program service revenues, and public donations. There is also some evidence
that more reliance on investment income is associated with higher excess compensation (Graver
2014, 15).
In a study done by David F. Suarez, he suggests that management strategies in nonprofit
organizations are extremely relevant for attaining more government grants and contracts (Suarez
2011, 308). The more a nonprofit organization collaborates with and networks with other
nonprofit organizations the more the government will be willing to get involved. Nonprofit
organizations have a difficult time balancing their overall mission with their overall margin of
5. revenue. This is why it is so important for nonprofit organizations to become strategic in their
spending and how they grow their overall funds. Another positive of networking and having the
government involved in your nonprofit organization is that you will have access to policymakers
and the political process (Suarez 2011, 309). It will make it easier to advocate for policy changes
or legislative changes for the nonprofit organizations cause. This can also increase the nonprofit
organizations credibility and make more people aware resulting in donors.
Nonprofit organizations are encouraged to collaborate and create alliances with other
organizations, but sometimes it is not necessarily worth it nor will it help in getting more
government funding. The strategies and planning that go into creating a collaboration between
two different nonprofit organizations takes money and a lot of time (Suarez 2011, 320). It
involves doing projects together and taking into consideration the other nonprofit organizations
culture and policies. Professionalism is also an important aspect when it comes to receiving
government funding. The negative to this is that it takes away from nonprofit organizations
outreach into the communities. Volunteers do a large part of a nonprofit organizations workload.
They need their help in order to survive and make sure as much funding goes directly into the
cause.
The recession that occurred in 2008 in the United States also had a major impact on
nonprofit organizations. Funds went extremely down and many nonprofit organizations suffered
immensely. Natural disasters also contribute to decreased funds, for example nonprofits in New
Orleans are still recovering from the aftermath of hurricane Katrina. Many of the large
companies they leaned on for support left the area leaving them short on funds they were use to
having (Besel, Williams, and Klak 2011, 57). Even today they are currently working to become
more sustainable without all the resources they had in the past. Government funding plays a large
6. role in nonprofit organizations in terms of the different regions of the United States. Though for
many nonprofit organizations, government funding remains to be a top financial contributor.
Mangers in the higher areas of government funding have reported that a formalized relationship
with a government institution was more important than the securing of government funds for
their sustainability (Besel 2011, 58).
Managing Funds
Nonprofit organizations are similar to businesses in the private sector. Funds that are
allocated need to be disbursed through the business in order to keep it going. Money needs to be
disbursed to employees, as well as having a budget for projects and marketing in order to raise
more money. According to the Better Business Bureau (BBB), they require nonprofit
organizations to spend at least 65% of its total expenses on program activities (give.org 2014). In
terms of fundraising nonprofit organizations should spend no more than 35% of related
contributions. Every nonprofit organization must make available complete annual financial
statement prepared in accordance with generally accepted accounting principles (give.org 2014).
Depending on the different total annual gross income each nonprofit organization must complete
audits in order to be the BBB standard.
Regina Herzlinger identifies the problem in nonprofit budgeting is not technique but
those of management (Herzlinger 1979, 67). The primary issue is that managers in nonprofit
organizations instinctively respond to the budgeting process in a participatory and consultative
manner, but budgeting involves trading off and limiting activities (Herzlinger 1979, 67). The
money that nonprofit organizations receive tends to have limitations on where it can be used.
Public donors and government keep restrictions on where the money can be spent. This creates
7. another obstacle for board member and managers to deal with when planning the budget.
Auditing is a big part of nonprofit organization management. In past years we have seen a
lot of abuse take place with funds in a nonprofit organization. For example in 2003 Brian P.
Morley and Jacquelyn Allen-MacGregor pleaded guilty embezzling checks totaling $1.9 million
from United Way in Lansing, Michigan (Strom 2003). Prior to this occurrence former United
Way president, William Aramony, served seven years in prison for fraud worth over $1.2 million
Strom 2003). Not to mention other numerous pyramid scams within nonprofit organizations
costing millions of dollars. All these past abuses have caused nonprofit organizations to meet
specific audit standards to make sure it does not happen again. “Apart from organizational size
and financial stress, the complexity and resource-dependency of the nonprofit are significantly
associated with audit fees” (Vermeer, Raghunandan, and Forgione 2009, 290).
When using a direct measure of audit quality, results find that there is a positive
association between auditor size and audit quality in nonprofit organizations (Vermeer 2009,
290). Both audit committee quality and the presence of internal auditing show a positive
association with audit fees, suggesting that audit committees and internal auditors are
complements rather than substitutes for other monitoring mechanisms in the nonprofit sector.
The resource dependency theory is used to explain differences in audit fees. The various
different needs of resources are a large determinant of the nonprofit organizations decisions and
actions. Specifically the difference in the composition of resources are associated with
differences in the demands placed on external auditors (Vermeer 2009, 291). The majority of
outside resources and donations accepted by the nonprofit organization lead to more audit
engagement and higher audit fees.
8. Nonprofit organization boards are faced with the many challenges of an ailing economy
and the increased concern, voiced by legislators, regulators and other stakeholders, that they are
not fulfilling their fiduciary duties (Primoff 2012, 48). “As a result, nonprofits have a growing
need for certified public accountants, attorneys, investment professionals, and other experts to
provide guidance on fiduciary financial management” (Primoff 2012, 48). It is now a standard
that all financial matters in a nonprofit organization stay transparent.
New Ways to Fundraise
As mentioned throughout this paper, acquiring funds for nonprofit organizations is a
challenge. It is important that new ideas and projects are created to keep awareness alive to
support the organization. In today’s world, social media is a growing attraction for fundraising.
The most recent example of successful fundraising took place this summer for the amyotrophic
lateral sclerosis association (ALSA) challenge, better known as the ALS Ice Bucket Challenge.
This challenge required that participants have to nominate their fellow friends and family before
having a bucket full of ice and water poured on to them in a video posted to different social
media platforms to promote awareness. The ALS Ice Bucket Challenge spread like wildfire and
trended for over a month with the help of hundreds of celebrities and leaders in communities
around the world. Once the challenge was over the ASLA reported to have raised over $100
million (Diamond 2014).
The only problem with social media is that things can be taken out of context and create
negative publicity instead of positive. We have seen celebrities and private companies receive
backlash for posts made on social media accounts. “‘The ALS Ice Bucket Challenge worked
because it hit a sweet spot: Accessible and fun; an understandable, compelling cause; and
9. “networked social proof.”’” (Diamond 2014).
Every year Internet marketing is growing as a source of income for nonprofit
organizations. In an article by Richard Hoefer he identifies three techniques nonprofit
organizations can use when marketing online. The first is affiliate marketing; this is a process by
which an organization drives traffic from its Web site to another organizations Web site to
promote a product or service for a percentage of the sale price (Hoefer 2012, 361). The benefit of
affiliate marketing is that the nonprofit organization can focus on advertising one or a few
products at a time instead of an entire commercial entity. For example, if there a book that could
give the buyer a better understanding of an organization then the nonprofit organization would
want to affiliate with the bookseller to receive a percentage of the sale.
The second form of Internet marketing is online donations and memberships. Nonprofit
organizations can have online donations sections within their website. In 2008 researchers found
that an average of $7 billion were generated from online donations in various nonprofit
organizations (Hoefer 2012, 362). The majority of Americans pay their bills online with credit
and debit cards, so it makes sense that the public sector allows people to donate this way making
it convenient and easy. One downside to this technique is that in order to process online
payments an added processing fee is added. This fee will either come out of the donation itself or
charge the donor a percentage more. These fees create a negative association with online
donating because people do not want to have to pay the extra percentage. A way around this is
through membership subscriptions. Donors can become a member of the nonprofit organization
and agree to donating a certain amount every month. This makes it easier for donors to give
money because instead of a large one time donation is separates payments into small amounts
throughout the year. (Hoefer 2012, 363).
10. The final technique Hoefer suggests is information products. They can be written, oral, or
in video format and made available online for consumers to gather information (Hoefer 2012,
364). Before the Internet nonprofit organizations were limited on how they could provide
information, they had to depend on physical products like books, tapes and reports. This helps
save time and money by allowing nonprofit organizations to advertise on a precreation basis, so
only if sufficient interest exists will they make the information product (Hoefer 2012, 364). The
negative to this is that most nonprofit organizations but hire outside creation teams or have the
information product donated. These extra expenses require that the nonprofit organization have a
well put together information product to make up for the expense.
Not only is it important to attract new donors but it even more important to keep them.
Nonprofit organizations need to do more to shower attention on first time and small donors
(Blum 2014,1). Small gestures of appreciation go along way when thanking new donors, for
example, customizing thank you notes and phone calls send positive messages to encourage long
time participation. With the economy always changing it is not smart for nonprofit organizations
to rely too much on big donors and new supporters (Blum 2014, 1). “In 2012, organizations
reported that fewer than 39 percent of their donors who has given the year before supported them
again, a retention rate much lover than in 2005, when more than 46 effect of all donors gave
again the following year to organizations” (Blum 2014, 1). Not retaining donors is costing
nonprofit organizations, a fall report shows that for every $100 charities raised in 2012, they lost
$96 from donors who gave less or stopped giving altogether (Blum 2014, 1).
Conclusion
Nonprofit organizations can continue to learn and expand with the help of the community
11. and donors. Without the help of nonprofit organizations persons and families in need could not
survive. It is said that running a nonprofit organization is much harder than running a business in
the private sector due to the added requirements that need to be met with receiving funds from
outside sources.
Volunteers and social media are also great tools that nonprofit organizations use to
receive help and provide viable information to obtain more donors. With over a million
nonprofits there is sure to be something that will inspire you to donate and get involved. Even if
you don’t have much time to participate even the small time you take to explore websites and
make small donations can make a huge difference.
12. References
Besel, Karl, Charlotte Lewellen Williams, and Johanna Klak. 2011. “Nonprofit Sustainability
During Times of Uncertainty.” Nonprofit Management and Leadership 22(1): 53-65.
Better Business Bureau. 2014. http://www.give.org/for-donors/the-care-we-put-into-our-reports/
Blum, Debra E.. 2014. “Nonprofits Shift Focus From Chasing New Donors to Building
Loyalty.” Chronicle of Philanthropy 26(10): 1.
Diamond, Dan. 2014. “The ALS Ice Bucket Challenge Has Raised $100 Million and
Counting.” Forbes http://www.forbes.com/sites/dandiamond/2014/08/29/the-als-ice-
bucket-challenge-has-raised-100m-but-its-finally-cooling-off/
Gaver, Jennifer J. and Mary S. Im 2014. “Funding Sources and Excess CEO Compensation
in Not-for-Profit Organizations.” Accounting Horizons 28(2):1-16
Herzlinger, Regina. 1979. “Managing the Finances of Nonprofit Organizations.” California
Management Review 21(3): 60-69
Hoefer, Richard. 2012. “From Web Site Visitor to Online Contributor: Three Internet
Fundraising Techniques for Nonprofits.” Social Work 57(4): 361-365
Luckert, Kate 2014. “Nonprofit Organizations (Definition and Examples)”
http://learningtogive.org/
Primoff, Walter. 2012. “Fiduciary Financial Management in Nonprofit Organizations.” Certified
Public Accountant Journal 82(11): 48-57
Strom, Stephanie. 2003. “Guilty Plea Due Today In Big United Way Theft.” The New York
Times http://www.nytimes.com/2003/02/06/us/guilty-plea-due-today-in-big-united-
way-theft.html
13. Suarez, David F. 2011. “Collaboration and Professionalization: The Contours of Public Sector
Funding for Nonprofit Organization.” Journal of Public Administration Research and
Theory 21(2): 307-326
Vermeer, Thomas E., K. Raghunandan, and Dana A. Forigone. 2009. “Audit Fees at U.S. Non-
Profit Organizations.” Auditing: A Journal of Practice & Theory 28(2): 289-303