These are challenging times! Business as usual is not practical or sufficient. G&A encourages its clients and other NPO’s to be persistent, patient and willing to look introspectively to adjust your thinking.

The economy continues to take a toll on the NPO sector. NPO’s are challenged by declining revenues and continuing increases in operational expenses. There are indicators that the decline will continue well into FY 2012. While there are encouraging signs for the larger economy, NPO’s lag 15 to 18 months behind an economic recovery.

A recent Guidestar study surveyed 6800 NPOs. Sixty percent (60%) of the respondents reported a decline in both the number of donors and the size of their contributions. Forty percent (40%) reported that contributions fell in the first five months of 2010; 28% reported contributions flat and 30% reported slight growth. Couple these findings with the fact that 63% of respondents reported an increase in demand for their services. Shrinking income with increasing demand is the common theme.

Eight percent (8%) of the Guidestar respondents anticipated that their NPO is in imminent danger of closing. To forestall this eventuality during the economic crisis, 17% reported reducing services and another 11% reported laying off staff.

Nearly one-third noted that they had increased their dependence on volunteers to carry out their mission; while nine percent (9%) indicated their volunteer pool is shrinking as older volunteers return to work to augment their fixed incomes.

How Can My NPO Collaborate with Others?

The first two steps are looking and asking.

Look at other NPO’s with a similar or complimentary mission. Research their mission and programs to see if there are areas in which you could collaborate. That means finding ways to streamline or partner on functions, explore combining service contracts (mailing, equipment, website, printing and purchasing) and consider partnering relationships with staff (volunteers, development, communications and research).

Ask the President or CEO of comparable NPO’s to engage in discussions on how you can work together to advance your mutual goals. Visit each other’s facility. Determine if you might share space to reduce expenses and increase efficiency. Consider if you can move into either of the Northwest Arkansas NPO Centers operated by the Jones Trust.

Then you should consider two additional steps:

Plan a strategic approach to the economy and the demands on your NPO. Look at your governance documents (bylaws and corporate filings) and confirm the role, scope and mission of your NPO in the current economy. Make sure that your mission remains relevant. This is called adapt and adjust.

Implement a plan of action to adapt your NPO programs, budget, staffing and fundraising efforts to the current economic reality. Look for steps that you can take to make a difference and make the decision to implement either adaptations or collaborative efforts.

G&A Recognizes Its Clients’ Accomplishments

West Texas A&M University has been recognized as one of America’s top 25 regional universities.

The Food Bank of North Central Arkansas has been awarded a Walmart Foundation refrigerator truck to increase its ability to collect and deliver food and materials.

Is there a way, other than including a link to our website, to encourage our donors/supporters to visit our website?
Yes. Our client West Texas A&M is including a Quick Response Code (QRC) block in all its printed materials. The QRC helps donors/supporters with smart phones to scan the QRC and get a direct connection on their phone that can be stored.

G&A webmaster Jeannette Balleza of Scribe Marketing, lays out the details, “QRC is a great way for convergence of web and print. Google Places/Local uses QRC symbols on stickers you can place outside your place of business, so people can scan the code and see your listing/map/more info about your business or NPO. Google Android has the software built into the camera on the phone. Other smart phones may require the downloading of a free app. You can create the code here and other places on the web: http://qrcode.kaywa.com.

I think it’s a great way to drive traffic or make a call-to-action more…well, actionable, with the simple swipe of the smart phone. It’s necessary to have the app downloaded, and that’s an entirely different question. QRC will require some training, but will be highly effective with an audience that is familiar with the technology. Good wow factor! QRC is a great way to make a print piece go farther!”

G&A recommendation: Ask your graphic designer or printer how you can be the first NPO to be on the QRC edge.

Our board only meets every other month. We seem to lose momentum between meetings. Is there a way we can keep up the momentum while keeping our alternate monthly meetings?
Yes. It is common for smaller NPO’s to meet on alternating months. Losing momentum is a common challenge, but it can also be a blessing.

The Food Bank of North Central Arkansas is trying two things to maintain momentum.

1.    The Executive Committee meets monthly to conduct corporate business. This adds to the continuity and momentum. They are also meeting after the board meeting to implement the decisions. Together these actions are planned to keep attention on their NPO business.
2.    For consistency, in the alternating months FBNCA is using the same meeting date for their committee chairs to meet, communicate and coordinate their programs and messages.

G&A recommendation: These are two great capacity building hints that have worked very well for the Botanical Garden of the Ozarks for the past two years. That board has experienced substantially increased member engagement and communications among these leaders.

We have a lengthy list of potential donors. It seems as though we can never stay in touch with them and never get the chance to ask them for substantial support. Any suggestions?
WTAMU and Northeastern State University (NSU) have implemented a G&A recommendation and are pleased with the focus that it gives their staff and board members. They did careful research on their prospect lists, merged all into one and then rated and ranked their prospects. It was an arduous process. In the ranking process each university came up with a list of roughly 50 high-value prospects. The strategy concentrates resources and time on cultivating these Lead/Major Gift prospects during the quiet phase of their comprehensive campaign. They continue to inform, contact and cultivate the remaining prospects in order of their ranking. It is a wise use of resources.

G&A recommendation: First, enhance your communications (via website, Facebook, progress reports, newsletters and emails) by creating a communications plan, calendar and budget. Keep everyone informed.  Second, select your high-value prospects and make personal connections with them. Remember, people give to people. Balance your efforts, but focus on your primary donor prospects; in your campaign giving pyramid, you plan to get 70% of your donations from 10% of your prospects.

Take advantage of fall as you plan your fundraising efforts.
Right now parents are focusing on making their back-to-school purchases. As soon as school starts and schedules return to normal, consider making an appeal for memberships or funding for a special seasonal need. If your NPO is the first to get the attention of donor prospects, you may get a donation, a member and a new supporter. Attitudes change as fall comes around.

G&A’s Constant Contact program is helping FBNCA conduct an agency needs survey.
G&A finds its Constant Contact subscription to be very helpful to our communications. We also find that the survey component is a convenient and affordable way to do customized online surveys. In August , we are helping Food Bank conduct an agency needs survey in preparation for their 2011 strategic planning efforts.

TWO COMMON QUESTIONS:

HOW DO I HELP MY BOARD OVERCOME FUNDRAISING FRIGHT?
Paul and I are consistently asked: How do I help my board members get comfortable with fundraising and overcome fundraising fright?

Consider an eight step process that G&A finds has worked for our clients:
1. Create a culture in which fundraising is a “team sport.” Create situations in which the board members and development staff work together on cultivating prospects. Once your board is comfortable with collaboration and cultivation, the “ask” is a natural next step.

2. Ask each member to make a sustaining contribution to your NPO. Once each has given, it is easier to ask others to join them in supporting your mission.

3. Develop a strategic plan with a budget and calendar that includes short, long-term goals and monthly/quarterly performance benchmarks.

4. Prepare a job description and list of expectations of your board members.

5. Recruit, orient and support board members who are passionate about your mission.

6. Provide monthly updates and training to your board and staff members to keep them engaged.

7. Evaluate progress monthly and make course corrections as required.

8. Celebrate your successes!

HOW DO I GET MY BOARD MEMBERS TO GIVE?

Establish an annual board appeal with a board participation goal in four sequential steps:

1. Recruit a solicitation team from the board.

2. Have this team evaluate the past giving and potential giving of each board member.

3. Calculate a board appeal goal based on the research into giving and potential and gain board approval of the goal.

4. Initiate personal contact (face to face followed by a personal letter) from the board chair to each board member thanking them for their service and support and exploring how they want to help achieve or exceed the appeal goal.

G&A BROADENS ITS CLIENT BASE
Gardner & Associates has added a new client, Keep Arkansas Beautiful Foundation. KBAF provides financial support to the Keep Arkansas Beautiful Commission for programs that cannot be funded by state appropriations. G&A is assisting KABF to create a plan and funding to increase its support for litter prevention and beautification programs.

G&A recently completed a three-month-contract with Partners for Better Housing (PFBH) in Fayetteville to assist them with strategic planning and preparation for grant submissions. Walt is using PFBH as his project in his Winthrop Rockefeller Foundation “Moving the Needle” program. That program works to train a cadre of Arkansas NPO leaders to work with the federal budget to support local initiatives.
G&A consults with excellent clients including the Food Bank of North Central Arkansas, West Texas A&M University and Northeastern State University.

Summer is at hand. Things are hopefully a little less hectic in your NPO office. Consider taking a morning to complete the Gardner & Associates Digital Checklist. The goal of this checklist is two-fold: 1. Reduce the cost of your electronic services and 2. Increase the marketing effectiveness of your website and social media links.
G&A recently went through the checklist. We updated our software, reduced our phone bill by $20 and added a much needed data package to our iPhone, saving another $36 in messaging expenses.

Test ten items:

• Study your landline telephone, Internet and mobile telephone bills. Call your provider to determine if there is a newer package or bundle that meets your changing usage.
• Consider a smart phone with data and messaging packages to increase your efficiency and ability to manage social media remotely.
• Review your communications equipment to determine if it is serviceable and effective or if it is an analog device in a digital world.
• Assess your computer software to determine if it supports current needs.
• Evaluate your website from six perspectives:

1.     How easy (or difficult) is your site to navigate?
2.     Does it tell a compelling story?
3.     What is your call to action?
4.     Does it convey legitimacy and credibility?
5.     Is it easy to make a donation?
6.     How do you engage visitors to become volunteers?

• Do you offer visitors an opportunity to engage in dialogue with you?
• Evaluate your links to social media (Facebook, Twitter or LinkedIn).
• Gauge how you use pictures to tell your story.
• Does your website list the names of your board members?
• Does your site report how past donations or sponsorships have made an impact?

THREE DIGITAL TIPS
1. Become active in social networking. Use Facebook or LinkedIn to publicize an upcoming event, and invite your fans to attend. This approach will automatically put your event on your fans calendars.

Recent studies indicate that 46% of American adults use a social media tool such as Facebook, MySpace or LinkedIn. The more engaged and affluent adults are the early adapters. In an increasingly competitive fundraising environment, it’s not surprising that 88% of NPOs are experimenting with social media.

2. Expand your online exposure. Apply to www.google.com/grants/index.html for a free Google AdWords advertising grant. You can reach more new donors by connecting with existing online traffic.

3. Use pictures to tell your story. Use your Facebook or Twitter or Flickr account to create a photostream of activities, people or events.

Select or plan pictures that demonstrate your NPO’s presence or impact. A smart phone can help you instantly and remotely add pictures to your social media or website.

DID THESE IDEAS HELP?
Paul and Walt are interested in how helpful the ideas that we present in the Gardner Report are to you and your Not-for-Profit Organization. Share the impact or your experience with us.

MOVING THE NEEDLE
Gardner & Associates is thankful that the Winthrop Rockefeller Foundation has given Walt Eilers an opportunity to serve on its Federal Budget Study Task Force. Walt and NPO leaders from across Arkansas are learning how to locate and to connect with federal funds. The task force will create a statewide resource of community leaders who are knowledgeable in the federal budget and accessing its programs. This Task Force is part of the WRF program entitled Moving the Needle.

Share the successful strategies or changes that your NPO selected to get through the down market. We want to know what things are working so that in subsequent Gardner Reports we can share the wealth. Email Gardner & Associates with your ideas or experiences (email Walt).

NPO WARNING

May 15th is the deadline for nonprofits that have not filed an annual return in the past three years (even those with gross receipts normally under $25,000). 2010 is the first year the IRS will automatically revoke the tax-exempt status of organizations that have failed for three consecutive years to file the required Form 990 with the IRS.

Small organizations should file the IRS Form 990-N, known as the ePostcard. Find out if your organization is exempt from filing. The ePostcard is easy to complete. It only takes only a few minutes to fill out eight simple questions.

Filing by May 15th will prevent your organization from having to submit an application for tax-exemption with the IRS all over again.

Read this fact sheet from the IRS for more information about filing annual returns and please spread the word.

MAKE SURE THAT YOUR EMAILS AND WEBSITE ARE INTERACTIVE!

Are you asking your volunteers, supporters and donors for their opinions and reactions? Are you inviting them to your website to share their opinions and ideas?  If not, why not?

Research and experience are showing that in today’s technologically-oriented society more potential volunteers and donors are looking for entities that engage them, seek their opinion and give them input.

Advancing Philanthropy reports in its current issue that a majority of NPOs in a recent survey are experimenting with social networking. They are layering it onto their traditional print media. Those who use it believe that it increases awareness and enables their NPO to reach a broader audience. They find it helpful to build their brand, connect with advocates on their behalf and show value to new prospects. Most believe it is more cost effective than traditional media.

At the same time as you ask for donations, ask for opinions, share ideas or experiences and seek new solutions to continuing challenges. Make it a consistent part of your message to engage your online readers. Layering interactive strategies with your current communications mix can help to broaden and engage your audience.

HAVE YOU CONSIDERED SPRING CLEANING AT YOUR OFFICE?

At Gardner & Associates Paul and Walt are using Spring as a motivation to review, backup, store and shred files and materials. We are taking a little time to check out four things:

1.     Update our business inventory and corporate filings….make sure that we are current.

2.     Back up and store our completed files and clear off our disk drives of unnecessary material.

3.     Checking on our ongoing phone, email, network and other contracts to make sure that we have the services that we need and at the best price.

4.     Looking at new technology and software to ensure that we are both effective and efficient. Thank goodness for the iPhone. It sure makes us more accessible. How about a wireless printer, mouse or speakers?

We have been amazed at the amount of “stuff” that accumulates.

While you are thinking about cleaning up, consider four important items to check:

1.     Is your NPO filing current with the IRS, Secretary of State and Attorney General?

2.     Has your Executive Committee reviewed your mission statement, bylaws and goals?

3.     Have you reviewed the job descriptions and evaluation process for your staff?

4.     Is your emergency procedure current?

You may be surprised to learn about the similarity between Holstein cows and people. The November 2009 issue of Country Living reported a study conducted by Newcastle University of England researchers. They confirmed what dairy farmers had long understood – contented cows produce more milk than their less contented counterparts. These scientists concluded that speaking kindly to cows and treating them with kindness increases their milk production up to 68 gallons of milk annually. The study’s authors reported that stressed-out cows release too much of the hormone Cortisol, which reduces milk production. They also reported that giving the cows names had additional benefits in terms of their milk production.

Now what does this Holstein research have to do with people? It is no secret that people like to be valued. They find their name is sweet music to their ears. The best ways to show that you value the staff, volunteers, clients and donors of your NPO is an easy list:

• Use their names in conversations.
• Show them that you care for them as an individual.
• Engage them in your NPO’s decision-making process.
• Provide meaningful and challenging work/assignments.

It is a well-know personnel management fact that when supervisors treat people like the Holstein farmers reported in this research treated their cows, production improves along with the quality of the product and safety. Therefore, how we should treat people should a no-brainer.

Gardner & Associates encourages NPO leaders, both staff and board to consider four actions to enhance the environment in your organization or agency:

1.     Be personable. Call people by name, and show a genuine personal interest in them.

2.     Make work meaningful. Create an atmosphere that welcomes innovation and dedication.

3.     Set the example. People like to work with thosethey respect.

4.     Challenge yourself and others to continue to grow.

Often, when we feel the pressure of time and other demands, we forget the basics. Keep alert to the tone and values that you set for your NPO. Take a lesson from the English dairy farmers and treat your staff, volunteers and donors with respect and caring. Instead of increased milk production, you will likely see increases in volunteer and staff productivity and donations to you NPO.

Larry’s story brings to mind Mark Twain’s comment, “Always do good. It will gratify some and absolutely confuse the rest.”

OVERCOMING FUNDRAISING FRIGHT

The most common reaction that Gardner & Associates experiences in working with NPO board members is their discomfort, reluctance or fear of asking for money. It follows closely behind the fear of heights and public speaking.

The best way to address fundraising fright is to remove the mystery and make it personal. Consider four actions to increase your board members’ comfort level:

1.     Concentrate on building the awareness and engagement of your board regarding the mission and programs of your NPO. The more they know and experience, the more comfortable and more likely they are to talk about their experience.

2.     Encourage your board to serve as “ambassadors” for your NPO. After building up their awareness, challenge them to share their experiences with their friends.

3.     Begin the year with a personal appeal among your board members. Recruit a team to help cultivate their peers. Use the process as a practice for external fundraising.  Making an appeal to your board peers can build your confidence.

4.     Promote a culture of cultivation and appreciation. Engage your board members in recognizing current donors. Invite them to learn what motivated them to give. Then, encourage them to learn from those experiences to cultivate their peers who are prospective donors. A gradual process of building confidence and exposure will build an excitement and momentum.

Communicate, Motivate and Inspire. Not everyone can be a fundraiser. Everyone can be an ambassador, cheerleader or cultivator. The critical element is giving your board members the information, experience, awareness and confidence they need to tell the story of your NPO to their family, friends and business associates. Spreading the good word and sharing their pride in being a part of that good work is the best place to start the process of overcoming fundraising fright.

IT REALLY WORKS

Since January I have been the President of the Botanical Garden of the Ozarks board. This new role is giving me the opportunity to put into practice those “nuggets” of consulting information that Paul and I have shared with clients over the past decade.

In a recent conversation with Paul about my experience with BGSO, I told him, “You know, this stuff really works.” In fact, it does.

Be proactive! The new audit rules are in effect as of the end of 2009 (www.aicpa.org for a summary of the internal control basics and appendix of internal control deficiencies). These standards put pressure on NPO leaders to improve your NPO’s financial control processes. The objective of this change is to protect your NPO’s resources.

See that your NPO leadership is aware of and in compliance with these new rules. SAS 115 or Statement on Auditing Standards #115 outlines new expectations for internal financial controls. They require auditors to evaluate the level of your NPOs internal controls. The standards require that the auditor report a material weakness if there is a possibility that there is a misstatement in your records.

Consider taking four steps to get ready for these standards:

1.     Ask for professional direction. Ask your accountant, banker or auditor to help you and your board members increase familiarity with the new standards. Take nothing for granted. Work with a professional to review your fundraising, accounting and financial systems.

2.     Recognize the required controls for fundraising, spending, cash processing and asset protection.

• Begin by establishing a formal policy to receive and disburse funds.
• Have your Treasurer or Finance Committee make regular bank statement reconciliations.
• Secure your inventory - office supplies, equipment, tools, food or program supplies.
• Make sure that the NPO leadership supports appropriate ethical standards (e.g., AFP Code of Ethics or the Donor’s Bill of Rights).

3.     Separate financial functions.

• Involve more than one person in any handling the money.
• Separate ordering/purchasing, authorizing and paying functions.
• Conduct quarterly management reviews.

4.     Engage your board in management reviews. Increase the profile of your Treasurer and Finance Committee as independent parties to review your bank statements, check registers and financial reports.

G&A WELCOMES TWO NEW CLIENTS
Paul and Walt are pleased that two NPOs have joined our client base.

Partners for Better Housing is a new Fayetteville NPO working to design, fund and build 56 attainable housing duplexes and 16 single family houses in South Fayetteville. G&A is helping PFBH in its strategic planning and in fundraising for capital construction priorities.

Food Bank of North Central Arkansas in Norfork is a thirty-year veteran leader in the fight to bring food security to residents in a nine county area. G&A is assisting FBNCA in an assessment and strategic planning process.

ARE YOU TRACKING RETURN ON INVESTMENT (ROI) OF YOUR SOCIAL MEDIA?

Is your NPO one of the 81% of NPOs that are not tracking social media behavior?

At a time when each of our operating budgets is strained by the challenging economic conditions, it is critical that our NPO gets the most out of its technological investment in websites and social media links.

Consider six action steps to ensure that your website is serving your mission:
1.     Measure and study the traffic to your website. Measure your unique visitors by day, week and month; determine what parts of your website they visit and how long they stay. Make changes to attract and keep your visitors.

2.     Test your links and static FBML. Are you linked to and linking from appropriate websites? Do you have the right accounts to assure that your releases and blogs are getting maximum distribution? Are there other partners with whom you should link?

3.     Monitor traffic from Facebook, My Space, Twitter or LinkedIn. Are you overconfident in your social media skills? Do you continue to reach out for good social media consulting and training?

4.     Does your NPO have a mobile website? Smart phones have driven social media mobile. Is your website set up to send updates of events, programs or fundraisers via mobile websites?

5.     Poll your donors and visitors. Test their preference to make sure that your communications tools are relevant and attractive to your friends, donors and visitors. Ask you visitors to respond to an online poll. Use your findings!

6.     Invite your visitors and members to go “green.” Encourage your supporters to convert from paper communications to enewsletters or mobile list sign up boxes to reduce the cost of communications and to reduce your NPOs carbon footprint.

“The Boards of Directors of Care Foundation and Northwest Arkansas Community Foundation announced today that they have restructured their separate boards into one common board. The two Foundations have shared staff for the past ten years, but have had two separate boards. Both nationally and locally, we see nonprofits merging and collaborating to better meet the needs of their community. As we look to become more strategic in our efforts to improve the quality of life in Northwest Arkansas, it became apparent that a common board of both foundations was advantageous.

We are confident that this new structure will allow us to be more effective as we seek to make a lasting difference in Northwest Arkansas. The foundations will continue to provide strategic grants to support our community, and provide a flexible, cost-effective and tax-efficient way for donors to fulfill their charitable goals. We will be going through a strategic planning process to continue to improve our ability to best meet the community’s needs.”

Thanks NWCF for setting the standard and being a shining example!

NSU Strategy Change Leads to First $ Million Gift
G&A client, Northeastern State University (NSU), altered its fundraising strategy by launching a pilot constituent development program in its College of Education and by engaging prospects by scheduling campus visits and listening to the prospects outline their areas of philanthropic interest. This new strategy bore fruit in December when NSU announced its first ever $1 million gift to construct and endow staff for a Reading and Technology Center in the COE building on the Tahlequah campus. The donor made the gift to honor his mother who was a teacher and literacy advocate.

NSU recognizes that in a challenging economy that they must personalize their prospect cultivation. NSU Development Staff is working to build awareness and trust levels among its current supporters and prospects through ongoing cultivation calls and tiered communications customized to the prospects’ preferences.

Congratulations to John Gyllin and Anita Thompson for implementing a solid plan!

Match Your Communications Skills to Your Prospects’ Interests
Kate Shaffer of eTapestry provided valuable technology insight to the AFP members at their January meeting. She encouraged NPO leaders to make their communications two-dimensional - sharing information while seeking readers’ responses. She noted that discerning donors want to feel that their opinion counts and that they can get involved with organizations that seek their ideas.

Kate recommended using Google Analytics regularly to track visits and patterns to determine the efficiency and attractiveness of your NPO website. Tracking visits can help refine your web site structure and content to make it more user-friendly. She noted that keeping your message current and fresh is important to build repeat traffic. Her most significant message was to segment your communications to meet the preferences of your audiences. Kate reminded us that communications is no longer a one-size-fits-all application.

CCS Study Clarifies Keys to Philanthropy in the New Economy
The January/February Advancing Philanthropy research article highlights a study by CCS, a Baltimore NPO consulting firm, entitled Philanthropy in the New Economy. NPO professionals representing 17 institutions shared with CCS the three key elements for successful fundraising in the New Economy:

1. Your case is a terrific cultivation and fundraising tool. Keep your case statement current. Communicate with your donors regarding what your organization is doing, its future plans and its impact on the community. Increase awareness of your organization, especially if you are not in a position to ask for a gift.

2. Make more personal contacts. Keep sending notes, making telephone calls and setting up meetings to let donors know what you are doing and how they can be involved. When in a challenging financial climate, organizations must increase the frequency and regularity of contact with donors and prospects.

3. Donors want to see ROI. A gift’s direct, measurable impact is becoming more important to donors. Organizations must be able to articulate results and return on investment (Here is what your gift has done…).

Gardner & Associates Gets Engaged in the NWA Community
In 2009 Gardner & Associates spent its time, talent and resources to become more engaged in the NWA community. As part of this engagement G&A maintained a 1 mile section of Scull Creek Trail, helped organize and sponsored the National Philanthropy Day event, moderated a strategic planning process for the Yvonne Richardson Community Center board, sponsored the Fayetteville in Bloom competition and offered NPO series at the JTL Shop and NPO Center at St. Mary’s.

In 2010 we will continue and enhance this engagement. Walt Eilers was recently selected as the President of the Botanical Garden of the Ozarks board. G&A will also offer workshops and seek two NPOs who will benefit from our pro bono services.

GARDNER & ASSOCIATES REPORT ANNIVERSARY
Thank you for your interest in the Gardner Report! For the last year Paul and I have shared our observations about the challenges facing Not for Profit Organizations in a depressed economy. This issue is our 12th Report. Tell us of any specific topics about which you would like more details.

G&A 1Q 2010 CHECKLIST FOR BETTER NPO RESULTS

Traditionally, January is the time for resolutions and getting reorganized. Paul and I agree that January and the entire first quarter is an important time to review the drivers influencing the operation of your NPO. Consider just five key elements that G&A recommends focusing on during 1Q Twenty-Ten:

1.     Start with a stringent financial review. Review your NPO’s mission/vision statements, strategic plan, software edition, database management system, 2009 fundraising results and budget to ensure that each reflects the economic challenges you will face in 2010. Remember, as the economy recovers, NPO contributions will lag behind the retail recovery by as much as eighteen months (that takes us to July 2011). Determine if your NPO needs to change the fundraising strategy or conversely its budget.

2.     Inventory your board of directors and advisory council. Ensure a balance and diversity of your volunteer leadership. Profile their terms, interests, skills and resources. Make sure that your volunteer leaders will contribute effectively to your NPO’s 2010 priorities.

3.     Review your 2010 reporting status. Confirm your status with the IRS, Arkansas Attorney General and Secretary of State.  Also, confirm any report dates for your state, federal and foundation grant reporting. Highlight those dates on your calendar to ensure timely reporting.

4.     Review your communications, program and events calendar. Evaluate your external message to ensure that it is consistent with your budget, strategic plan and mission. Are the dates in conflict with other key galas, Razorback games or holidays?

5.     Evaluate your service contracts. Think like Walmart; ask your staff and leaders “How can our NPO be more effective, efficient and sustainable?” Take enough time to call your insurance carrier, copier service, phone and Internet carrier, office supplies company, bank (service, checking, loan/line of credit and CD rates) and any other service contracts to check on current pricing and bundling opportunities. Assume nothing!  Asking for a better deal can drive savings to your NPO’s bottom line. Also, consider how your NPO could collaborate with other NPOs to reduce operating expenses.

POLISH YOUR CASE STATEMENT
The case statement is your NPO’s sales brochure. It tells your story, outlines your mission, needs and defines your impact. Case statements are a valuable tool as you develop relationships with potential funders and reinforce those with current supporters. To be a good advocate for your organization, you must be able to ‘make your case’. Consider preparing your 2010-edition answers to the following questions: Who are we?  What do we do? Why do we need the money? What are we going to do with it? How will the grantor know that we did it? Why should the grantor invest? How will the grantor benefit? These answers can help you put together an organizational briefing that can be used as talking points with prospective funders. They are also critical to ensuring that you, your staff and volunteer leaders remain on message. Also, add your case statement to your website to make sure your visitors get full information.

NEW IRS CHARITY GUIDE
Compliance Guide for 501c3 Public Charities – The IRS recently released a compliance guide to assist public charities. This guide covers such areas as: activities that may jeopardize a charity’s exempt status, federal information returns, tax returns or notices that must be filed, recordkeeping—why, what, when, governance considerations, changes to be reported, required public disclosures, resources for public charities and more. To read or download the entire guide visit www.irs.gov/charities/article/0,,id=187787,00.html .

CHECK OUT THE HEALTH DEPARTMENTS MONTHLY GRANT LISTING
Make it a resolution to check out the grant segment of www.healthyarkansas.com. Go to the bottom right-hand corner of the page and click on the grant button.

Each month, Jacqueline Gorton posts a marvelous list of private, state and federal grant opportunities. Get on her email list and get a monthly update of items of interest.

You can request your subscription by emailing Jacqueline.

Traditionally, NPOs concentrate their fundraising on galas, golf tournaments, auctions and shows that require considerable investment of time and capital. Many NPOs are finding that their return on this investment is decreasing in a down economy.

Today, supporters are stepping forward to raise funds for their favorite NPO by sponsoring local events such as runs, walks, poker runs, car washes, auctions and unlimited other types of unique events. Each of us is familiar with the Heart Walk, Race for the Cure and Memory Walk. These are national events. However, more NPOs are migrating their fundraising to independent fundraising events, or ifes. An ife helps your NPO increase its visibility, empower your supporters and raise money with little or no effort on the part of staff or leadership. Expenses and marketing the ife is the responsibility of the independent event organizer within guidelines established by your NPO.

A case in point, Let’s Bring Them Home (LBTH), a Rogers-based NPO and Gardner & Associates client, sent a Facebook message to its followers asking if any of them would be interested in helping LBTH by sponsoring an ife. Within 24 hours, LaDonna Meredith was overwhelmed with sixty (60) inquiries on how supporters could help with a local, independent fundraising event.

In today’s increasingly digital environment it is no longer necessary to bring your volunteers and supporters in to headquarters to plan and sponsor an event.  Using the virtually free medium of Internet, website and Facebook, your NPO can engage supporters near and far.

Lance Armstrong’s Livestrong Foundation (www.livestrong.org) has over 1,000 events supporting LIVESTRONG Day. Its grassroots fundraising is on track to outpace the 2008 total of $3.8 million. Besides engaging his supporters in his quest to cure cancer, Lance is empowering people around the world to deliver the LIVESTRONG message.

December Proposal Writing Tip

G&A recommends grants management involving pre-writing crucial proposal elements for success. Develop drafts of common proposal elements in advance for use in any proposal, such as your NPO’s history; geographic service area description/map; board and advisory board lists, summary of organizational successes; fiscal/administrative management, oversight and funds control; summary of services provided and boilerplate regarding your NPO’s mission. Having these ready and on hand for cut and paste inclusion will save time, allowing you more time and concentration to focus on the critical elements of the proposal that need development specific to the needs of the potential funder.

December Tip: Seven Strategic Survival Tips for 2010

Since 1967, the Nonprofit Center of Milwaukee has served as the area’s primary resource to nonprofit agencies. It provides tools and training needed to successfully fulfill an organization’s mission and improve the lives of people in the community.
While economists say the recession is over, for many nonprofits, the silver lining in that dark cloud has yet to appear. The Nonprofit Center of Milwaukee (WI) offers the following seven survival tips for charities.

1. Focus on your core mission and consider removing programs that no longer align with it.

2. Collaborate with other NPOs to avoid duplicating services/programs.

3. Be transparent. Build networks with and communicate needs to funders.

4. Diversify your funding streams. Nothing lasts forever so don’t rely too heavily on any single source of income.

5. Understand your neighborhood and your clients’ needs. Stay on top of the changes and be ready, willing, and able to shift gears as needed.

6. Recognize your employees’ and your volunteers’ needs and accomplishments.

7. Learn to effectively manage and utilize volunteers.

For information contact the Center at: 414.344.3933. www.nonprofitcentermilwaukee.org/index.php