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News: Governments Becoming Deadbeats On Nonprofit Contracts Tips Section: Finance …
Beware IRS Intermediate Sanctions Management …
5 ideas for staying positive and dealing with the now Fundraising …
A dozen points regard warm prospects Governments Becoming Deadbeats On Nonprofit Contracts Wracked by the anemic economy, human service nonprofits helping families and communities weather the recession report “serious and widespread†problems with their government contracts and grants, according to a new Urban Institute study. These problems include government payments that do not cover the full cost of services, complex and time-consuming applications and reporting requirements, and governments changing the terms of existing agreements and paying contracts late. Responding to a national survey by the Urban Institute, 41 percent of human service nonprofits -- groups that address such pivotal concerns as food assistance, public safety, housing, employment training, community and economic development, youth mentoring, and child care -- indicated that government agencies made late payments in 2009. Some 24 percent regarded delinquent payments as a big problem. Nearly 33,000 human service nonprofits had government contracts and grants last year, which provided the single largest source of revenue for 62 percent of them. The nearly 200,000 contracts totaled about $100 billion. Click Here to Read Complete Article... Tips Section Finance …
Beware IRS Intermediate Sanctions Although the fear among nonprofit leaders is of an organization losing its nonprofit status after running afoul of the Internal Revenue Service (IRS), complete revocation is not the only penalty that can fall. Speaking at the AICPA National Not-For-Profit Industry Conference, Jeffrey D. Frank of Deloitte Tax LLP and Leslie D. Richardson, formerly of Moss Adams' Not-For-Profit Industry Group, said that intermediate sanctions provide an intermediate step rather than outright revocation. Under such sanctions, the IRS can impose an excise tax on a disqualified person and possibly the organizational manager. Frank and Richardson reminded listeners of the facts and circumstances test that helps in determining if an organization is failing to comply with exempt regulations. The term Disqualified Person (DP) includes the following: officers, directors and trustees; significant contributors; key employees or executives; family members. The following tend to show a person has a substantial interest: * A founder.
* Compensation based primarily on revenue.
* Authority to control capital expenditures, operating budget or compensation for employees.
* Managing a discrete segment deemed substantial.
* Owns a controlling interest in an organization that falls under DP.
* Non-stock organization controlled by a DP. The following tend to show a person has no substantial influence: * Bona fide vow of poverty. * Contractor providing advice with no economic benefit (apart from customary fees). * The direct supervisor of the individual is not a DP. * Does not participate in management decisions. Management …
5 ideas for staying positive and dealing with the now In this difficult economy, with cutbacks and retrenchments, it can be difficult for any nonprofit to survive, let alone flourish. Despite the temptation to think in terms of mere survival as crisis management, Patrick M. Rooney, executive director of the Center on Philanthropy at Indiana University, argues that nonprofits should try to think positively, trying to act now rather than wait for good times that might be a long time coming. Rooney offers several suggestions. * Rather than simply look to shed every possible cost as a means of just staying afloat right now, organizations should evaluate costs strategically. It's better to spend smart rather than just be as frugal as possible.
* It is important to look carefully at how a fundraising program is managed and evaluated. Difficult times might actually be a good time to reassess.
* Odd as it sounds, it might be better to spend more on certain aspects of an operation and infrastructure. For example, it is critical to continue to invest in fundraising as a long-term support issue.
* Adding or maintaining a business development specialist might be even more important in challenging times to grow existing sources of revenue and identify and develop new ones.
* If budget cuts have to be made, it is important to evaluate what effect cuts will have on long-term goals. Fundraising …
A dozen points regard warm prospects You're getting warm. And if you know how to get the best use out of Prospect lists, you could very well see your fundraising heat up, as well. Speaking at the Direct Marketing Association 2010 Washington Nonprofit Conference, Cheryl Lovinsky of the American Diabetes Association (ADA) outlined the possibilities of “Warm†prospects and why they can be very beneficial for any organization. The following are possible warm prospects: * Special events participants.
* Information requesters.
* Patients.
* Volunteers.
* Members.
* Purchasers. Lovinksy said that her organization is already developing a new warm prospect model for direct mail, breaking down larger tracks into smaller segments based on origin and recency, messaging to prospects based on interest and affinity and working on development of reporting to look at overall value. The organization is already cross-selling across many different programs. Cultivating warm prospects can reap rewards because: * They already have an affinity wit the organization.
* They are “free†once information is captured.
* They might or might not be direct mail responsive.
* It is an extremely large universe.
* They are generated from multiple sources, such as membership, catalog purchasers, special event donors and participants, residential volunteers and donors and tribute and memorial donors.
* They are all housed in a single marketing database. Changing positions? Or have you moved to another organization? Then, make sure you still get NPT's family of enewsletters by simply updating your profile . Copyright @ 2010 The NonProfit Times . To forward NPT Weekly to your colleagues so they can also subscribe click here . |
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