rpta 164 final review

What is a PSA?

Public service announcement. A message in the public interest disseminated without charge, with the objective of raising awareness of and changing public attitudes and behaviors towards a social issue.

Donor Upgrading

Upgrading thoughtful gift. Getting your regular donor to give more. Being clear about the benefits of giving more. We try to do special things like we are building a building and you can have your name on it

Should you ever say no to a donation?

Yes

Are nonprofits required to make this form available to the public?

Yes. Churches don't need to file and small groups who make under 25,000 don't need to file

Change management

it is a menu of strategies to change the philosophy of management to accomplish an objective or set of objectives, for example improving efficacy and competitiveness, motivating employees and increasing their job satisfaction, or reducing absenteeism.

Are all donations to a nonprofit tax deductible?

no

Can I deduct the value of my time if I volunteer for a nonprofit?

no

What does the term "Risk Management" mean?

refers to management strategies on organization can be used to enhance the safety of its stakeholders, such as clients and employees, minimize its exposure to litigation; protect its assets; and maintain its reputation. One step is to engage in continuing planning process and implement a risk management program.

Benchmarking

refers to the process by which organizations study how organizations similar to theirs perform same business processes and learn how to adapt those that are most efficient, innovative and successful.

What is an "RFP"?

request for proposal: it will outline exactly what should be included in the application

Common duties of treasurer

responsible for finances of the organization. Usually makes financial reports to the board and signs checks. The actual responsibilities will depend upon whether the organization has staff who manage fiscal duties.

How are items donated to a nonprofit valued for tax deduction? (If I donate old clothes to a charity, how to I determine how much should I deduct from my taxes?)

you can deduct it using the fair market value. It's not what the book says it's worth, but what you can actually sell it for. We would need to have an estimate done.

If I make a donation, but get something of value in return, how much can I deduct? (Could you do the math? If I buy a $50 dinner, but get a meal worth $20, how much can I deduct from my taxes?)

you can deduct the difference. You can deduct $30 from the meal.

Bylaws

your organization's operating manual.

Be familiar with the list of "Practical Applications of the Internet

· Email, text messaging, electronic mailing lists, e-newsletters, videoconferencing/video chat, chat, blogs, social media, podcasts, wikis, mobile applications, the web, domain names, domain extensions, developing your website, nonprofit e-commerce (refers to business that is conducted electronically. It includes the marketing of goods and services, using the internet to join an organization or subscribe to a publication and automated customer service)

Branding - What is it?

Refers to an organizations total image and includes all of he factors that distinguish it from its competition. Among these factors are reputation, logo, taglines, print fonts, colors

What category of nonprofit organizations receives the greatest amount of donations? Why?

Religion - I think it is, because it is in the culture to give to religious organization. They also get more donations, because they ask for it on a regular basis. An example of this would be giving tithe on Sundays at a church or donating to a temple when you go there for religious ceremonies. It is important to ask. A lot of people won't give if they are not asked. It's part of scripture, it's tradition and it's tax deductible.

What is the connection between financial issues and accountability/ethics?

Small nonprofit agencies struggle to raise fund through methods such as grants, donations, fundraisers and corporate sponsorships. Groups that maintain high ethical standards are more likely to receive positive responses when soliciting for funds. Donations that come with strings attached can affect the public perception of the agency, regardless of altruism of its mission.

What is the Foundation Center and how could it be a helpful resource in seeking grant funding?

The Foundation Center is the leading source of information about philanthropy worldwide. Through data, analysis, and training, it connects people who want to change the world to the resources they need to succeed (GuideStar 2017). In 2017, the Foundation reported in its 2016 fiscal year that 921,000 users took advantage of its free tool, Foundation Stats. The data is free and available to the public. It provides invaluable insight into grants and sources of funding. The center provides invaluable help to start up foundations and has a network of more than 400 funding information centers around the world.

What does "Fee for Service" mean? Examples

You pay a small fee for their service. An example of this would be paying a fee to go to the zoo. Camp fees, conference attendance, book sales are also fees.

What is a code of ethics

a code of ethics is a systematic effort to define acceptable conduct. Ethical behavior in a workplace is enforced through the use of code of ethics, codes of conducts, ethicists, ethics committees, policies and procedures relating to ethical dilemmas, and ethics training

What is a foundation?

a foundation is a nonprofit corporation or a charitable trust that makes grants to organizations, institutions, or individuals for charitable purposes such as science, education, culture, and religion.A

In-kind donations

when you give away things

What do nonprofits market?

· services and programs, goods, experiences, concepts, group benefits

What are the elements of an Internal Control System

1. Control cues, policity communication, segregation of duties, record-keeping, budgets and reporting

What are the strategies to minimize exposure to lawsuits?

1. Make sure that every agreement entered into on behalf of the organization is in writing and signed by all parties 2. Carefully and methodically document all personal actions, particularly disciplinary actions and evaluations of job performance 3. Become familiar with all federal and state laws that apply to employers in general and nonprofit organizations in particular 4. If you find that the risk of offering any particular program or activity imposes an unacceptable risk, simply don't offer that program or activity 5. Modify the activity or the work processes involved to reduce liability exposure 6. Pool the risk by passing it on to insurance companies or other third parties 7. Share the risk, or pass it on to another organization that is better prepared to deal with increased liability exposure

What is D&O insurance and why is it important?

D and 0 insurance protect directors, officers and their spouses from alleged wrongdoing in the scope of their duties. The policy also protects these individuals' assets and estates, as well as a company's assets. A director and officer insurance policy also reimburse companies for claims they pay to third parties to protect their director's ad officers. It protects not only officers and directors but all association volunteers and staff. The value of this insurance is not only to pay for substantiated claims that arise against the organization and its leaderships. It will also provide the funds to defend against frivolous lawsuits.

What is Strategic Planning?

Formalized process by which an organization makes a study of its vision for the future, typically for three years or more from the present

Quorum

How many people need to be present to vote on an issue

Sources of Professional Development/Training

Impact foundry, afp, conferences

When is (was) the "Big Day of Giving?" What is it?

It is a 24-hour giving challenge that brings together the regions nonprofit community to help raise much needed unrestricted funds and shine a spotlight on the work nonprofits do to make the Sacramento region the place we all call home. It is on May 7, 2020.

What is the Impact Foundry? What services do they provide?

It is a nonprofit resource center. Its goal is to help nonprofits succeed, helps with volunteer recruitment and can be a good source to find jobs

What was the Ice Bucket Challenge? (275) What organization did this raise money for?

It was an online fundraising campaign that went viral and raised money for ALS.

Donor Retention

Retention habitual gift. 2/3 will repeat gift. The goal is to keep people interested in what we do

Be able to give the name and mission (in your own words) of at least three classmate's nonprofit startup. Know the student's name.

Taylor Krogman's nonprofit is called Salty and Sweet and its purpose is to help clean up the ocean and protect sea life. Sheng Vang's nonprofit is called "We Are Not Alone" and is dedicated to the recovery of men and women form mental illness. Kristen Mastella's nonprofit is called "A Helping Hand" and their mission is to provide help, hope and supportive services to people who are homeless or at-risk so they can return to a productive and meaningful life.

What does "fair market value" mean

The price at which the property would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or to sell and both having reasonable knowledge of relevant facts.

Segregation of duties

This involves breaking up work duties so that one person does not have total dominance over a portion of the financial system. It might make sense for the person who is ordering the good or service, filling out the purchase order, writing the check, signing the check and mailing the check be different people within the organization

Connection between promotions and fundraising

a well-planned public relations/communications strategy is important, because the organizational leaderships has made a major investment in forming a nonprofit corporation and a solid public relations efforts will promote the organizations purposes and for the first few years a nonprofit will struggle for financial survival. Sound intraorganizational communications and building a solid public image through a public relations strategy are instrumental in building and maintain a donor base and attracting grants and contracts.

Total Quality Management

an innovative, humanistic, general approach to management that seeks to improve quality, reduce costs, and increase customer satisfaction by restructuring traditional management practices. It requires a continuous and systematic approach to gathering, evaluating and acting on data about what is occurring in an organization.

Outcome Based Management

as an organization grows, there are more pressures for accountability, nto only internally from a board of directors, but externally from elected officials, government funders, foundation funders, individual donors and volunteers and the public. Leaders of large organizations generally do not have the ability to visualize every aspect of their organization's operations and assess what is going on just by looking out their office windows or by engaging in informal conversations with their staff and clients. To accomplish the important task of determining what is really going on, most large organizations have a management information system. Obm focuses on program outcomes rather than by simply quantifying services delivered. Program outcomes can be defined as benefits or changes for participants during or after their involvement with a program

What is "unrelated income"?

even if an organization is tax-exempt, it may still be liable for tax on unrelated business income. This is income from a trade or business, regularly carried on, that is not substantially related to the charitable, education or other purpose that is the basis of the organization's exemption.

What does the IRS say about sending donors documentation of donation? What needs to be included in this documentation?

if the donation is in excess of $75, the charity must provide a written statement to the donor that the deductibility of the donation is limited to the excess of the amount donated over and above the value of the goods and services provided, and an estimate of the value of these goods and services provided by the charity. For exp if a 501c3 organization holds a fundraising dinner and estimates that the costs for catering and entertainment are $45 per person and the charge is $100 per ticket, federal law requires disclosure to ticket holders that they can deduct a contribution of $55 per ticket purchased.

Financing

includes the activities necessary to obtain the resources needed in the budget. It may include borrowing fro financial institutions to start new entrepreneurial ventures, or perhaps using endowment funds to serve as a startup capital.

Controlling

includes the development of a system that assures that the programs envisioned in the plans are being carried out appropriately. It also proides for feedback to warn when a program does not measure up to its expectations so that mid-course corrections can be implemented to get it back on track

What is a speaker's bureau

o Many groups have speakers at their regular meetings o Organizational leaders may wish to proactively seek invitations to discuss the activities of their organizations with these groups.

Annual report

o Many nonprofits use this opportunity to supplement the financial information provided to stakeholders with a report on the operations of the nonprofit during the fiscal year

What happens when a nonprofit has "unrelated income"?

sometimes nonprofits make money in ways that aren't related to their nonprofit purposes. When nonprofits can usually earn unrelated business income without jeopardizing their nonprofit status, they have to pay corporate income taxes on it, under both state and federal corporate tax rules. Excessive unrelated business activities can prompt the irs to reconsider a nonprofits 501c3 tax-exempt status.

What is the Volunteer Protection Act?

the intent of the law is to provide limited legal immunity for the volunteers of charities who are involved in accidents that occur in connection with their charitable service. The vpa provides some protection, but there are some limitationsto its applicability.

Press Release/News release

the media provides millions of dollars in free publicity to nonprofit organizations. The typical mode of communicating with the media is through the mailing, faxing or emailing of a standard news release. The news release is a pre-written news article that includes the name, organization, work telephone number, and email address of the key organizational contact person at the top

Budgeting

the process for allocating expenditures to each program. A budget is defined as an itemized summary of estimated or intended expenditures for a given period, often for a given fiscal year ,

Can I deduct expenses I incur if I volunteer? (a uniform, mileage, etc.)

yes

Is it legal/ethical for nonprofits to make a profit

yes

Do nonprofits pay any taxes? (give some examples of taxes they might pay)

yes, on unrelated income such as property taxes

Your book lists many types of PR. Understand each and how you might use them.

· Organizational brochure · Print and electronic newsletter · News releases · Press conference · Public service announcements · Conferences and workshops · Intraorganizational communication o Board and key contacts need to know what is happening beyond what they read in the organization's newsletter. It I useful to send out action alerts or background briefings by mail or email that describe the status of a problem ad what they can do to participate in its resolution · Annual report o Many nonprofits use this opportunity to supplement the financial information provided to stakeholders with a report on the operations of the nonprofit during the fiscal year · Other publications · Member/board surveys · Speakers bureaus o Many groups have speakers at their regular meetings o Organizational leaders may wish to proactively seek invitations to discuss the activities of their organizations with these groups. · Newspaper op-ed articles o Virtually all newspaper print feature-length opinion articles on their opinion/editorial pages. Many will include a picture and a line of biographical material about the author. It is an excellent forum to share an organization's ideas on an issue and bring attention to the organization · Letters to the editor o Are an effective way to talk back to a newspaper when the organization believes an article or editorial unfairly shapes an issue. It can be an effective medium for reinforcing a position and permitting the writer to expand on that position from the perspective of the organization · Websites · Coalitions · Social networking sites

What is the role of social media in promoting the work of a nonprofit

· online social networking can be an effective technique to drive traffic to their websites and blogs, raise awareness of their missions and programs, encourage people to take action, find volunteers, market their services, increase donations and enhance already-created relationships they have with their stakeholders.

What are the ABCs of fundraising?

• Ability to give, belief in the cause, regular contact with the organization

What is an audit? Why would we do an audit?

• An audit is an official inspection of an individuals' or organization's accounts, typically by an independent body. The purpose of an audit is to ensure compliance with laws and regulations and to help maintain accurate and timely financial reporting and data collection.

What does the handout say about the importance of planning in fundraising

• An hour of planning can save five hours of work, leaving much more time to plan and to work. Planning avoids the feeling of never getting anything done and impending doom.

Internal controls

• Internal controls are the mechanisms, rules and procedures implemented by a company to ensure the integrity of financial and accounting information, promote accountability and prevent fraud.

Purpose/benefits of strategic planning?

• It is an important management tool that can help an organization's leaders to consider the effects of advances in technology; changing markets for its services; government funding cutbacks; or the emergence of other organizations that provide similar, competing services. Strategic planning is designed to systematically provide an institutionalized process to respond to changes in an organizational environment, whether or not there is a specific problem that needs to be addressed. Virtually all successful large for-profit businesses engage in a forma strategic planning process. The conventional wisdom is that businesses that do so, regardless of whether they are for profit or nonprofit, are more successful over time than those who do not

Purpose of press release, what it should include.

• News releases are distributed to those who are most likely to print or broadcast them. A news release on a tv or radio station should be no more than 6 or 7 sentences and no more than two double-spaced pages for the print media. It should have a catchy headline, put the most important sentence first, include suitable quotes from the organizational leaderships and make sure the texts answers the basic questions of who, what, where, when, why and how

What are ideas of what to include in a newsletter?

• No less than quarterly, the organization should publish a newsletter and distribute it free of charge to all board members, all dues-paying members, significant opinion leaders on the issues of interest in the organization, political leaderships, the media, current and potential funders and colleagues in the field. • Among the items the newsletter may contain are: recent board decisions, the organization's wish list of in-kind donations, legislative action, planned giving information, schedules of upcoming meetings, workshops, conferences and training sessions, messages from the executive director, articles contributed by experts on the board or the memberships issues about interests to the readerships etc.

major donor?

• The largest donations your organization receives in a year

What is a Fiscal Year?

• a year as reckoned for taxing or accounting purposes.

Hot lists are

• are generally made up of people who already have immediate contact, or have made some type of commitment to your group.

Articles of Incorporation

• document/charter that establishes the existence of a corporation Advantages & Disadvantages of 501(c)(3) status

Controlling for Waste and Fraud (200) Be able to give examples of methods to control waste & fraud. (Why is this needed?)

• there are two general classifications of systems that are used to control waste, fraud and abuse in nonprofit organizations. The first is to discourage these before they occur. The second is to assist in discovering them after they have occurred. 1. The independent auditors annual audit and the annual management letter 2. Internal controls of the organization 3. Policies requiring large orders of goods and services to be put out for bid 4. Ethics policies that applies to organization resources are distributed to individuals 5. Training all employees on how to deal with the elimination of waste, fraud and abuse 6. Severe penalties for violating the organization's policies 7. Record keeping about all assets and taking a periodic inventory 8. Electronic protection of records

Know the "Practical ways to build relationships with donors"

1. Building relationships with donors means giving them opportunities to tell you how and how often they would like to be approached for money 2. Heed direct requests from donors 3. Make thank you notes as personal as possible 4. When a donor makes an unusual gift, call to them them 5. Visit your best donors 6. Keep written records of donor visits 7. Review your donors

How do you take your idea and create a nonprofit?

1. register with the state through articles of incorporation 2. apply to the irs for nonprofit status 3. register to raise money 4. convene a board 5. write bylaws

Ideally, what percentage of a nonprofit's budget should come from grants? Why

7-10% because a grantor could love your organization then change their mind. The money cannot be needed too quickly. Granters don't want to give you the same amount of money for doing the same things every year.

A community foundation?

A community foundation is a tax-exempt charitable organization that provides support -- primarily for the needs of the geographic community or region where it is based -- from funds that it maintains and administers on behalf of multiple donors

A corporate foundation?

A corporate foundation is a private foundation that derives its grant making funds primarily from the contributions of a profit-making business.

What is a fiscal agent?

A fiscal agent is an established IRS 501(c)(3) tax-exempt organization that agrees to accept donations on behalf of a group that does not have IRS tax exemption. Under this arrangement, a charitable group can get more funding to perform its mission.

What is a gift range chart?

A planning tool to tell you how many gifts and prospects you will need to raise a specific amount of money

What does AFP stand for?

Association of fundraising professionals

How do you find out about possible funders? What do you need to know about them

Before applying for a grant you must: 1. Know the application format. term-86 2. Know the motivation of the funding source 3. Know the amount of funds award by the grantor per award, and the amount of total funds awarded 4. Review actual applications that have been funded. 5. Know the names of individuals making the funding decisions and their backgrounds 6. Knowing the selection criteria in determining how to write a grant. Many grantor agencies have limited amounts of funds and will give preference to smaller grants.

What are possible policies you would implement to prevent/manage conflict of interest?

Board members, trustees and senior management should avoid conflicts of interest and even the appearance of impropriety. Individuals who take advantage of corporate opportunities to make profits for themselves at the expense of the corporation may be liable for the profits they received at the organization's expense. It is particularly important for board members to disclose the following facts: · Whether they have a potential conflict of interest with respect to any transaction, business decision or other matter in which the organization is involved · Whether they have a financial, business or personal interest in an entity with which the nonprofit organization is or will be doing business · Whether individuals related to them have a financial, business, or personal interest in an entity with which the nonprofit organization is or will be doing business; or · Whether they serve as a director, member or employee of either a competitor of the corporation or a corporation which the nonprofit organization is or will be doing business The board should proceed with caution when any of the above facts are present because there may be a conflict of interest. An individual who has a potential conflict with respect to a particular transaction should disclose to fellow managers and board members and abstain from participating in the negotiations and decisions surrounding that transaction. To avoid the appearance of impropriety, the individual who has the conflict of interest should not be present in the room during any discussions that relate to the transaction

What is the connection between marketing and fundraising? And how are they different?

Both fundraising and marketing are essential activities for cause. Fundraising nad marketing get put together because they often involve similar skills. Fundraising and marketing both involve storytelling, explaining your mission, engaging an audience and clear communication. Marketing doesn't having to do with money, but it's more about the selling the image. Fundraising implies a relationship whereby a donor makes a gratuitous contribution to the organization without an expectation of anyting substantially tangible received in return, and does not benefit directly from the donation anymore than someone who does not make a donation. Marketing implies a transaction in which the organization seeks to convince an individual or organization to make a voluntary exchange of money for goods and services provided by the organization and the organization can use these funds without any strings attached.

• Cause Marketing

Cooperative efforts, nonprofit and for profit company How does this benefit the nonprofit? More money Diversified money Increase visibility, pr How does it benefit the for profit company 90% of consumers think positively about a company that makes contributions and state they will change brands Employee loyalty

Common elements of a grant

Cover letter, executive summary, introduction, need, objectives, project description, budget, evaluation and conclusion

What are the questions you need to ask about possible grant to determine if they fit your organization?

Does it support my project? Does it support my population? does it support programs in my geographic region? Does it give awards that will fit with my plans?

We know that most nonprofits get most of their funding from earned income - how does this impact the importance of marketing

Earned income diversify your funds. For a lot of the time, your nonprofit can garner financial support from grants, donations or major gifts. But don't exclude the idea of earned income to help supplement those as well.

What is AFP?

Exists to foster the development and growth of fundraising professionals and the profession, to promote high ethical standards in the fundraising profession and to preserve and enhance philanthropy and volunterrism

Does anyone own a nonprofit?

No one person or group can own a nonprofit. This is one of the major differences between a for-profit and a nonprofit organization. Nonprofits do not have private owners and do not issue stock or pay dividends.

What is the largest source of donations

Individuals

Who is the typical donor?

Individuals Private contributions. Individual donations accounted for 73%

Building relationships with donors means giving them opportunities to tell you how and how often would like to be approached for money.

It is important to listen to your donors and respect their wishes.

How effective is direct mail in donor acquisition? If I send out a direct mail appeal to people who have never given before, what percentage of those individuals will probably donate?

It's not that effective. There is a 1% return rate. This strategy can lose money, but we can have people that give again and again and we will build a relationship with these people

Why would someone join AFP?

Learn and grow, impact and advocate, connect and network

Incorporation(

Nonprofit organizations are typically established by incorporating them, which includes filing articles of incorporation and supporting documents with a state authority. It is desirable to quickly achieve federal tax-exempt status for those organizations that are eligible. Most states regulate charitable solicitation. There is no legal requirement that organizations incorporate in order to successfully fulfill their missions of serving the public. However, incorporation provides many distinct advantages. So most organizations will want to accomplish this quickly. Incorporation also has some disadvantages.

Why is the degree of accountability for funds in a nonprofit higher than a for profit organization

Nonprofits must channel their excess revenues back into the organizations. Because nonprofit entities depend on donations and grants for much of their revenue, they also rely on the public for survival. If the public loses trust in a nonprofit, then donations are likely to fall off and the nonprofits revenue source will dry up.

Warm lists

People on a warm list have usually have heard of you or, even if they haven't, can be linked to you through other factors

What makes for an effective direct mail letter?

Personalize it; the value of PS, giving levels, information included about the agency

What are some of the challenges with a government grant?

There are few grants for individuals. Finding and applying for grants can be difficult. Grants will not help you start your nonprofit. Foundation grants rarely fund operating costs. Foundations grants are a very small part of any organization's finances. Grants take a long tie. It takes time to find the appropriate foundation that is most likely to fund your project. It takes time to develop the proposal and it may take even longer for it to be accepted or rejected

Conflict of interest

Whenever the person/professional interests of a board are potentially at odds with the best interests of the nonprofit

Advantages & disadvantages of Incorporation

advantages: limited liability, corporations carry on (unlimited lifespan), easier to raise money, optimizing income and taxes, potential tax deferral, income splitting disadvantages: another tax return, increased paperwork, no personal tax credits, less tax flexibility, liability may not be as limited as you think, registering a corporation is expensive term-6

Advantages & Disadvantages of 501(c)(3) status

advantages: the nonprofit will be exempt from federal income taxes other than unrelated business income taxes. People contributing to the nonprofit can take a deduction on their own income taxes for their contributions. Many donors will not make contributions to organizations that do not have 501c3 status. The designation of 501c3 status indicate a minimal level of accountability, policed by the irs, which is a useful governmental stamp of approval of the charitable activities of the organizations. In some states, qualifying 501c3 organizations may elect to self-insure for purposes of complying with unemployment compensation laws. 4 disadvantages: 501c3 cannot engage in partisan political activity on behalf of political candidates. 501c3 organizations cannot substantially engage in lobbying or propaganda. 501c3s have a higher level of accountability, and are required, as must all 501c exempt organizations, to make copies of their 990 tax returns available in their offices upon request. There is a substantial application fee, and this fee is not refunded if tax-exempt status is denied.

What does "Dissolution of assets" mean?

an organization may want to consider dissolving and transferring its assets to another entity. In this scenario, when b dissolves and distributes its remaining assets to a, a generally does not automatically assume b's liabilities. Essentially, a is able to limit the risk it takes on when acquiring b's assets. It is important to note that although the surviving organization does not automatically assume the dissolving organization's liabilities, there is always some risk associated with a full transfer of assets.

Conflict of Interest

any time organizational resources are directed to the private interests of a person of persons who have an influence over the decision to use those resources.

Common duties of vice president

assumes the duties of the president or chair in his or her absence, or upon his or her death or resignation. In many organizations, is given specific responsibilities either in the bylaws or by vote. In some organizations, automatically becomes the next president. Some organizations have more than one; some may have a president-elect.

Legal duties of the board of directors

being a board member of a nonprofit organization is not an honorary position. Laws in every state hold board members accountable for violating accepted standards of conduct and decision making. Although each state regulates board member behavior differently, there are some common themes in what constitutes illegal conduct. Generally, boards make bad decisions with impunity. They are required to have made those decisions believing at the time that they were in the best interest of the organization rather than themselves, and consistent with the organization's mission. Among the legal duties of board members are -- · Duty of care. They must take reasonable care when making decisions for the organization · Duty of loyalty. They must act in the best interest of the organization · Duty of obedience. They must act in accordance with the organization's mission. · Avoid conflicts of interest. They must not participate in decision-making in which they have a personal interest that may constitute a conflict of interest.

Common duties of president

convenes and leads the meetings of the organization. Appoints committee chairs. Either signs checks or delegates this duty to another individual

Salaries/Benefits

determining an appropriate salary structure is the hardest ethical issue in the nonprofit sector. Ethical considerations arise at both the high and low ends of the salary spectrum. Boards fall into an ethical trap if they reward executive directors based on the amount of income received, rather than on how well they have accomplished the organiation's mission. A board can consider many criteria when setting the salary of the executive director. These include the size and complexity of the organization, what others in similar organizations are earning, and whether the salary is justifiable to the public. There are now legal as well as ethical restrictions on paying excessive compensation. Ethical management of employees requires that each person be treated with respect and dignity, paid a salary that can provide a decent standard of living, and given a basic level of benefits, including health insurance coverage.

The Trump Foundation

during the 2016 presidential election, allegations of improprieties by the family foundations of both major presidential candidates were front page. The Donald j. trump foundation was accused of not registering with the state as required by law when it began soliciting outside donations in excess of $25,000 and ordered it to cease fundriasin gin ny. The foundation violated a legal prohibition against "self-dealing", which prevents certain leaders of nonprofit organizations from using tax-exempt money to benefit themselves, their businesses or their families. Assets of the trump foundation may have been diverted for purposes not permitted by law, such as covering personal expenses of mr trump.

Common duties of secretary

either takes minutes at the board meeting or approves the minutes if taken by another individual. Responsible for all official correspondence.

Outside Remunerating

executive directors and other staff often are offered honoraria or consulting fees for speeches, teaching, providing technical assistance, or other work. The ethical issue is whether the staff person should turn over fees to nonprofit employer or be able to retain them. Potential conflicts can be avoided if the policy is based on the principle tht all reasonably related outside income belongs to the organization.

Donor Acquisition

impulse gift. This is first time donation from an event, newsletter or meeting. Direct mail is a common strategy

Wounded Warrior Project:

in 2016, the wounded warrior project saw high-profile media investigations alleging lavish travel and staff conference spending not related to programming, culminating in the board firing both the ceo and the coo. The organization only spent 68% of its donations on veterans' programs, there were serious management deficiencies and donors were misled about how their donations were being used, and that some spending priorities were inappropriate

Umbrella Fundraising Groups

in addition to providing an important source of funding, membership in a federated fundraising organization provides added visibility and community endorsement. United way, jewish federations, catholic charities, women's way.

Fund Squeezing?

instead of asking "how can we cut back on spending?"; the fundraising question is "where can we get more money?"

Cooperative efforts, nonprofit and for profit company How does this benefit the nonprofit? More money Diversified money Increase visibility, pr How does it benefit the for profit company 90% of consumers think positively about a company that makes contributions and state they will change brands Employee loyalty

intense effort on part of a nonprofit organization to raise significant dollars in a specified period of tie. Usually the money raised is to fund acquiring or renovating a building. They often say that the person who donates a lot can have their name on the building.

Don't use grants when you need the money quickly - why

it can take a long time to come through

Is a board member an employee of the organization?

no

Relationships/Nepotism

nonprofit executives and board members must not engage in sexual harassment or in behaviors that make an employee feel uncomfortable or threatened and intimidated. Employees should be treated fairly, meaning no favoritism should be permitted with respect to work assignments. Discrimination should not be permitted. Nepostism-the hiring of family members—should be prohibited.

Disclosure

nonprofits have a legal and ethical obligation to report fundraising costs accurately on their IRS form 990, to obey the requirement regarding what portion of the cost of attending a fundraising event is deductible, and to comply with state charitable registration laws and regulations. Nonprofits face a more difficult ethical issue when deciding how much disclosure to make that is not required by law, particularly if the organization believes that some people may not contribute if those disclosures are made.

How are nonprofits similar to, and different from, a for-profit company?

nonprofits have no outside equity interests. They are controlled by a self-perpetuating board of directors with constraints in their activities. Nonprofits can make money, but these profits must be used to further the purpose of the organization rather than being distributed. There are other distinctions between nonprofits and for-profits. The principle purpose, governance structure, level of public accountability and destination of net revenue. Charities benefit from donations made to them by businesses and individuals who support their missions and purposes. The nonprofit sector relies on volunteers. Nonprofits are formally constituted, organized separately from the government, they are nonprofit seeking, they are self-governing and they are voluntary to some significant degree. Tax-exempt nonprofit organizations can operate in all other particulars like any other sort of business. They have bank accounts; own productive assets of all kinds; receive income from sales and other forms of activity, make and hold passive investments; employ staff; enter into contracts of all sorts...nonprofits and for-profits share many aspects in common. Both need capital to launch their operations; both need cash flow to pay their bill sin a timely manner, and both need revenues to pay for staff, supplies, utilities, rent, equipment, printing and other goods and services. Nine of the more salient differences between the sectors

The company-sponsored foundation

often maintains close ties with the donor company. But it is a separate, legal organization, sometimes with its own endowment, and is subject to the same rules and regulations as other private foundations.

What are some of the ways nonprofits market?

paid media- newspapers, magazines, etc,; commercial media - communications prepared by organization sent out to media outlets; owned media-media owned by the organization such as in-house magazines; direct marketing-used to hawk their goods and services; event marketing- nonprofit sponsored events; and social media

: Fund Hording

putting money away for rainy day is okay, but where savings becomes hoarding is when no occasion seems important enough to warrang using the savings

Understand the section "Tell us what you want"

some members have told us that they would prefer to get appeals for money only once or twice a year, and some members have said they would prefer we did not call them. This let's the donor decide how and when they would like to be contacted.

Are you more likely to get a grant for ongoing operating expenses, or for a specific project?

specific project

The Lance Armstrong Foundation

the lance Armstrong foundation severed ties with lance Armstrong and changed their name to livestrong foundation. Armstrong admitted to bike doping scandal and lying under oath.

Fund Chasing

to apply for a grant just because the money is available and not because the work will promote your mission

Is the nonprofit sector growing or shrinking?

• It is growing

Cold lists

your group knows little about the people on them, what they do, their interests, etc.

Planned Giving. Define. What are the ethical concerns

§ Receiving contributions from a donor's estate, usually after they die § Usually is arranged prior to the donor's death § Usually done as part of a donor's overall estate planning § Can this generate large donations? · Joan kroc's will included the following bequests o 1.6 billion to salvation army o 200 million to national public radio o She donated to a lot of different places

• Define 501(c)3:How is this different from other types of nonprofits?

• C3: public service organization for nonprofit • C4: civic leagues, social welfare organizations • C6: business leagues, chambers of commerce, trade associations

Saying Thank you - Why is this important? How does it help build donor relationships? Is it legally required

• It's polite. It builds relationships. It's legally required for tax purposes. It is customary to send out an email and a hard copy of a thank you letter.

What is the largest source of revenue?

• Fees for service and sales of products

What does IRS stand for

• Internal revenue service

You already know all the people you need to know to raise all the money you need.

• Money comes from regular people. You already know all the people you need to know to raise all the money you need. If you ask the right person, for the right amount of money, half the time they will say yes.

How often should you ask someone for a donation?

• More than once is a good thing. The exact amount is a science. Maybe 4 times a year would be adequate depending on your relationship with them.

• Pros and cons of grant writing as a form of fundraising

• Pros: you can receive generous amounts of money. Once you have obtained one grant, you are more likely to receive others. Receiving grants is a good way to build your organization's visibility and credibility. • Cons: it is time consuming to do the research on the granting agency before writing the grant. You need a talented person who is experienced with writing grants who is also familiar with your organization. Competition is fierce and the success rate is few. There are strings attached to the money you received. You can't do whatever you want with the funds. Most grants are short term. When they run out, you have to start over.

Mission Statement

• The mission statement should be a succinct description of the basic purpose of the organization, including the nature of the work to be carried out, the reason the organization exists, and the clients and constituencies it is designed to serve. The mission statement serves two main purposes: first it is a basic document guiding decision making for the organization and the second purpose is to provide the organization's board and staff with a useful short description of the organization. The mission statement includes the core organizational purpose.

Vision Statement

• The vision statement is what we are trying to be in the future. The vision statement describes the ideal future of the organization. The vision statement is related to,but clearly different from the mission statement. Its purpose is to convey the ideal future of the organization -- what it hopes to become in the eyes of its board, staff and stakeholders. One purpose of the vision statement is to inspire those in the organization to achieve goals. Another is to help frame decisions by the organization in the context of achieving these goals.

Accumulation of Surplus

• if the funds of a charitable nonprofit are used for charitable purposes, what is a reasonable amount of surplus to accumulate? The wise giving alliance has suggested a ceiling of three times the current year's expenses or the next year's budget, whichever is greater.

Nonprofit Sector - Basics of size and scope

• it has population increased 20% in from 1989-2016, while the number of exempt organizations increased by 61%. 501c3 organizations are eligible to receive tax deductible donations from individuals and corporations. 1.5 million non profit organizations with 501c3 status. This sector accounts for 8.3% of all wages and salaries. It is more racially diverse than other sectors and provides more employment for women.

What is the function of watch dog groups?

• nonprofit groups that view their role as critically monitoring the activities of government, industry or other organizations and alerting the public when they detect actions tht go against the public interest.

Accountability

• nonprofit organizations have a special obligation to the public to be accountable for the results of their activities that justify their tax exemptions and other privileges. Accountability encompasses a core system of values and beliefs regarding the treatment of staff, clients, colleagues and community.

disclosure

• the action of making new or secret information known

Structure - board size, length of member's term, number of meetings, etc.

• the size of the board should depend on the needs of the organization. If the board's role is strictly policy-making and the policies are implemented by a qualified staff, a small board might be appropriate. However, if extensive board time is required for fundraising or implementing programs, then a larger board is in order. The number of board members is established in the bylaws. One effective technique is to set a minimum and maximum number of board members and to allow the board to determine its own size within these parameters. Then the board can start small and add members as the need arises. The term of board members must be included in the bylaws. Board members should have fixed terms of office. One common practice is for all board members to have three year terms, with one-third of the members having their terms expire each year. In this way, board continuity is assured. Some boards allow their members to serve unlimited terms; other boards wish to limit the number to ensure new members with fresh ideas. Many organizations have nominating or governance committee that is responsible for recommending new board members to the full board. Additional candidates for the board membership can be nominated either in advance or from the floor during the election. To run an effective board meeting, it is important to be organized and to have an agenda. Figure out what the purpose of the meeting is and what the topics will be. Make sure you allocate time for different topics. When you don't have a clear agenda, the meeting can go all over the place. Robert's rules of order - gives structure to meeting, keeps meeting on agenda, gives everyone a chance to provide input/fairness. Board meeting minutes - secretary takes notes from meeting. Puts together the minutes and that gets sent out. You need to approve the minutes. Agenda items and minutes are important, because you have to keep track and hold onto it, because you need it for evidence to keep your 501c3 status. This will also include attendance: the names of the directors present and absent, whether a quorum was established, the names of other guests and a brief summary of any reports or information.

Can an employee serve on the board? (Is it legal? Is it a good idea

• yes, but it isn't a good idea