On May 23rd we joined an Arkansas Coalition for Excellence (ACE) webinar put on by IdealWare. It was a 90-minute interactive session focused on how to use social networking to enhance NPO communications. What we liked best was the targeted and crisp delivery by Andrea Berry. We were also impressed by the follow-up details emailed to participants the next day. The details reinforced the class.

There are two notes from that session we want to share:

1. Make sure that you use social media to enhance your brand and achieve your mission. IdealWare suggested SMART goals (Specific, Measurable, Attainable, Realistic and Timely).

2. Use Linked In as a personal relationship system. Connect with friends in the
profession and to build and manage your network.

Thanks to ACE for bringing IdealWare to the attention of Arkansas NPOs! And, if your NPO is not a member of ACE, you are missing a valuable resource. Join. Today.

Gail Perry Shares Mistakes
Gardner & Associates recommends regularly checking out www.gailperry.com. Her feature Fired Up Fundraising contains a range of useful ideas. She is a Southern fundraising consultant who shares a wide range of applicable ideas. She, too, offers sessions. Check out Gail Perry.

G&A likes her review of the five common Mistakes NPO’s make with their board members. Our summary includes:

1. Allow them to think that fundraising is all about “asking for money.” When it should really be about building relationships and sharing information.

2. Ask board members to make cold calls. Most board members fear rejection. Ask them to engage donors and prospects by sharing their own experiences as a leader of your NPO.

3. Spend their valuable time on low dollar prospects. Instead, focus board members on specific high-value prospects to maximize their volunteer time and talents.

4. Avoid crisis mobilization for fundraising. Focus on building long-term relationships.

5. Fail to provide training, structure, coaching and support.

Database “best practices” considerations
Your NPO’s database is your access to prospects and donor stewardship. It is the heart of your fundraising. However, maintaining it is not exciting or pressing. It is easy to ignore your database. That is like not servicing your vehicle. It will work for a while, but sooner or later you will have a breakdown. And then, the timing is always devastating.

Summer is an ideal time to work on your donor and prospect database. Investing time now to update records, check on key prospects, streamline files, update software and generally get ready for the coming year are all elements of a successful annual check up and tune up.

G&A recommends setting aside one day a week for four consecutive weeks to concentrate on your database. Plan it out. Schedule it. Break it into sequential parts:

1. Start with the critical element update contact information.

2. Update cultivation details and include next step strategy notes.

3. Assess campaign codes or indicators. Add new codes for anticipated campaigns or initiatives.

4. Build in a calendar with reminders and targets.

Gardner & Associates recommend a five-point “best practices” protocol:

1. Capture the details of each prospect conversation immediately afterward to record details exactly and to outline and schedule next steps.

2. Include as much verbatim comment in the notes as possible to capture the prospect’s level of interest, connection or emotion. Include the interviewer’s assessment regarding readiness and strategy.

3. Each successive contact should be built on the discovery details of the previous conversation. That is the progression. It is the key to moves management. Without details the process is hollow and unsupported.

4. Each new contact should build and refine the strategy leading to “the ask”.

5. Include in the record details of notes, gifts, follow up and other details of the relationship (attendance at events, invitations to be sent, significant dates to remember or target.)

Consider appending your database this summer!
What is appending? Appending refers to purchasing the names of donors available through a nearby mailing service. For cents you can identify a prospect who already supports similar charities.

Determine their services and pricing offered by nearby mail houses. Determine how they can help manage your NPO’s mail and email lists. Price their cost for appending your database with additional prospects. You may find that their service can help your NPO increase its annual giving effectiveness and efficiency.

G&A client, Food Bank of North Central Arkansas, has steadily built its database by budgeting several hundred dollars each year to add names to its list. FBNCA has found appending to be a cost-effective way to continue to grow its database.

• 59% of reporting NPOs find philanthropy was flat or lower through 3Q 2011.
• 54% of those with government funding report declines compared to 2010.
• 46% reported revenue from sources other than contributions was down.

The findings were that smaller NPOs (less than $3 million budget) were more challenged in meeting the increasing demand for services with flat or reduced revenue compared to larger NPOs. As a result smaller NPOs reported more conservative budgets and a greater likelihood of staff or program reductions.

Share with Gardner & Associates how your NPO is doing in this challenging economy. What have you done to make adjustments? G&A will share your ideas in its May Gardner Report.

ACE Diamond Standards Proves Helpful to NPO Leaders

Our March Gardner Report encouraged NPO’s to complete the Arkansas Coalition for Excellence Diamond Standards inventory. Feedback is that completing the inventory took only about 40 minutes. Finishing the inventory resulted in one of two reactions:

• “We are pretty good because we checked yes on all relevant boxes and qualify for the Diamond Standards (proud, back pat!).”
• “It showed our NPO that we have some work to do and now we know exactly what it is that we need to do to qualify (to do list).”

If you have not completed the inventory, reserve 40 minutes to sit down with your board chair or staff leader. Work through the inventory. It will be a capacity building experience. When you are finished, which reaction will you have?

Headlines from the Nation Council of Nonprofits

Senate Returns from Spring Break with Issues of Interest to Nonprofits
The U.S. Senate returns from a two-week recess to take on two issues that could impact the work of nonprofits – the Buffett rule tax hike and postal reform. Next Monday, the Senate is scheduled to take a procedural vote on the “Paying a Fair Share Act” (S.2230), a bill to require millionaires to pay at least 30 percent of their income in taxes. The measure is nicknamed the “Buffett rule” after billionaire Warren Buffett who has complained famously that he pays a much lower effective tax rate than his middle-class executive assistant. Although the bill is not expected to pass the Senate’s 60-vote procedural minimum, let alone the House, it expresses a significant and positive norm by maintaining the incentive for charitable giving through the exemption of charitable donations from the new tax. Prior to its annual spring break, the Senate postponed action on postal reform legislation that would close an $11 billion budget deficit of the Postal Service, but would not alter nonprofit postal bulk rates as proposed in a House bill. Congress is under pressure to pass an overhaul bill before a moratorium on closing postal facilities expires on May 15.

Expired Charitable Incentives, Other Tax Breaks Up for Review
The IRA rollover, other charitable giving incentives, and dozens of business and individual tax breaks expired at the end of 2011 but are sometimes renewed as a package retroactively; this year, a congressional committee is planning to evaluate each measure one-by-one before giving its thumbs up. The House Ways and Means Committee is scheduling a series of hearings beginning April 26 to “conduct a thorough review of the various targeted provisions in the Code commonly referred to as ‘tax extenders,’” according to Chairman Dave Camp (R-MI). In what can only be considered a challenge and an invitation to demonstrate the relevance of the temporary giving incentives to the work of nonprofits, Camp concluded, “We look forward to hearing from interested parties about the merits of these tax policies.”

Legislation Promotes Nonprofit Hiring
A new bill in the Senate would create tax credits for nonprofits and other employers that hire new employees or increase wages in 2012. The “Small Business Jobs and Tax Relief Act” would provide a 10 percent income tax credit on new payroll added in 2012, whether through hiring or increased wages.

G&A Can Help with Planned Giving
Paul Gardner and Walt Eilers are now partnering with Dr. Fred Hueston. Fred brings expertise in assessing and designing planned giving programs for NPO’s.

For details on Fred’s planned giving program contact him via email.

Dr. Hueston has been serving and consulting in the nonprofit sector since 1984, and 2012 marks his 28th year as a professional fundraising executive. He is currently a Senior Associate of Gardner & Associates.

He holds a doctorate in Educational Management and Development, and initially began his career as Assistant Vice President, followed by Executive Director of Development, at New Mexico State University. During that tenure, NMSU completed a highly successful $20,000,000 comprehensive capital campaign in celebration of its centennial in 1988.

Dr. Hueston has taught in the graduate school at the University of Arkansas/Little Rock as an Adjunct Professor in the Nonprofit Management Program. He has served as President of the National Committee on Planned Giving (NCPG) for Arkansas and on numerous committees for the Arkansas Chapter of the Association of Fundraising Professionals (AFP). He has also served as the Founding State Program Chair for Leave A Legacy-Arkansas, a statewide planned giving education program to benefit all nonprofit organizations and churches in Arkansas.

In 2001, Fred’s peers recognized him as the Outstanding Fundraising Executive of the Year for the Arkansas Chapter of the Association of Fundraising Professionals (AFP).

Dr. Hueston is a graduate of Grove City College in western Pennsylvania, and holds advanced degrees from the graduate school at New Mexico State University in Las Cruces. He has been married for thirty-two years to the former Pamela Ann Schlater and they have two sons, Cameron and Devin.

As Gardner & Associates looks at 2012 we see a number of bright spots. There are challenges facing NPOs, but the economy is beginning to improve and donors are showing signs of increasing their support. To ensure that your NPO is on track for the improving economy, we suggest three action steps:

1. Complete the Arkansas Coalition for Excellence (ACE) Diamond Standards inventory. Visit the ACE website www.acenonprofit.org. Their two-page inventory will help you gauge your NPO’s readiness level. The Diamond Standards criteria are helpful metrics of your organizational capacity. It will outline prescriptive action steps to get fully organized.
2. Check on your NPO’s charitable registration status.
   a. Changes in federal law now require that all charities file an annual IRS Form 990. Visit www.irs.gov/charities/charitable/index.html to confirm the dates, deadlines and details of federal filings.
   b. Arkansas law requires that NPO’s file with the Secretary of State and the Attorney General. The Secretary of State wants to know your corporate leadership and their contact information. The Attorney General wants to know your fundraising details.
3. Visit your local library to access the Foundation Center. Conduct research on 2012 foundation grants that may be available to your NPO. This resource has valuable details on all aspects of foundation support. Invests an hour or two to check out what might be on the horizon.

Assess Your NPO’s Digital Capacity

Recent studies published in Advancing Philanthropy, the Association of Fundraising Professionals magazine, points out that NPO’s are increasingly moving to mobile or digital messaging and fundraising to achieve their development goals.

• The New Directions report by Kaptivate Group shows that smart phones and mobile devices are playing a significant role in growing donor responses. It reports that from 2010 to 2011 NPOs are using mobile fundraising have doubled to 9% and is expected to reach 20% in 2012. Early adaptors are experiencing increased fundraising and volunteer recruitment. NPOs are using technology to engage prospects and increase their activity.

  Donors report that they welcome the fundamental value of mobile media because it integrates with their social media activities.

• An Idealware study of 505 NPO staffers already using Facebook gauged the impact of this strategy has on NPOs. It provides four insights:
  • 70% reported that the greatest impact of Facebook was to attract prospects to events.
  • 70% saw a significant increase in traffic to their website.
  • 66% of advocacy respondents saw increases in taking action such as signing a petition or sending a message.
  • 40% reported success in converting fans into donors or volunteers.

The common experience is that Facebook is a vehicle to increase awareness of your NPO, reach more people, enhance effectiveness and provide timely information to your constituents and enhance relationships with them.

Consider Launching an Integrated Communications Plan in 2012

Today, no single vehicle reaches all constituencies! Paul and Walt encourage their clients to layer communications strategies. Integrate direct mail, e-mail, accessible website, social media and digital newsletters and communications. Align your strategies to match your constituents’ interests and preferences.

NPO communications consultants such as Gail Perry, Convio or Constant Contact remind us that it is essential to incorporate multiple communications channels to deliver your message in a consistent and seamless manner.

• Consider a four-pronged strategy in 2012 to maximize your communications reach:
• Prepare a calendar to coordinate the messages and appeals to constituents.
• Ask your constituents to update their direct and e-mail addresses.
• Telemarket to prospects immediately following a direct mail or e-mail solicitation to add a personal contact to the appeal.
• Create an appeal code or link to a custom landing page for the appeal to encourage online response.

Walton Arts Center Ticket Reminder

The 2012 Walton Arts Center season has begun. This means that its Take A Seat program offers opportunities for Northwest Arkansas NPOs to have access to free tickets to these performances.

The WAC website contains the following details:

Because of the commitment and generosity of our sponsors and donors, Walton Arts Center is pleased to announce the fourth season of the Take A Seat program. Take A Seat invites students, seniors, children and families who could not otherwise afford to attend Walton Arts Center performances to experience the arts at no cost.

Working through area non-profit organizations, the program provides free tickets to select Walton Arts Center performances offered throughout the 2011-2012 season. Participating organizations are asked to request tickets based on the interest and preference of the clients they serve.

If your organization is interested in participating, fill out the Application form and Ticket Request form and return both forms by one of the following methods:
(Preferred) E-mail rbradshaw@waltonartscenter.org
> Fax at 479-443-6461 Attn: Ryan Bradshaw
> US Postal mail to: Walton Arts Center, Take A Seat, PO Box 3547, Fayetteville, AR 72702.

Donations made in this fashion don’t directly affect your tax bill, because QCDs are tax-free and no deductions are allowed for them. However, QCDs count as withdrawals for purposes of meeting the required minimum distribution (RMD) rules that apply to traditional IRAs. Therefore, taxes can be avoided by arranging for tax-free QCDs in place of taxable RMDs, and this advantage is available whether you itemize deductions or not. If your spouse owns IRAs and is over age 70, he or she is entitled to a separate $100,000 QCD for 2011.

Give to Charities
For those whose charitable instincts are stronger than the economy, here are two suggestions:

Donate Appreciated Stock to Charity
If by some miracle, you have appreciated stock shares (meaning they’re currently worth more than you paid for them) that you’ve owned for more than a year, consider donating them to an IRS-approved charity. You can generally claim an itemized charitable contribution deduction for the full market value at the time of the donation and avoid any capital gains tax hit.

Sell Losers and Donate Cash
On the other hand, don’t donate loser stocks. Sell them, book the resulting capital loss, and give away the cash sales proceeds. That way, you can generally write off the full amount of the cash donation while keeping the tax-saving capital loss for yourself.

Warning: You must itemize deductions to gain any tax-saving benefit from charitable donations, unless you make them out of IRAs.

Other Good News for NWA NPOs: Walton Arts Center Tickets for NWA Nonprofits

At the AFP National Philanthropy Day Missy Kincaid of the Walton Arts Center shared a program that the WAC offers to NPOs. It is called the Take A Seat program.  It is very much beloved by not only the WAC staff, but also its generous donors and grantors who give to the Walton Arts Center every year so that this program continues. WAC encourages NPOs to participate this season because there are so many more exciting performances yet to come!

Walton Arts Center believes that the arts are an essential part of life for everyone in our community. They connect and engage people of diverse backgrounds and interests and open up new ways of seeing the world. It brings people together through the common bond of participation, exploration and enjoyment. We want to be able to bring everyone to the arts, regardless of the financial ability to do so, which is why the Take A Seat program was created.

Each season, WAC invites local non-profit organizations that serve students, seniors, children and families who could not otherwise afford to attend Walton Arts Center performances to experience the arts at no cost. Participating organizations are asked to fill out an application and request tickets based on the interest and preference of the clients they serve. WAC then determines, based on availability of tickets for that performance, whether we will be able to fulfill the request.

If you are interested in applying to our Take A Seat program, visit the WAC website’s Tickets for your non-profit page http://www.waltonartscenter.org/tickets/ticketsfornonprofits.aspx or feel free to contact Ryan Bradshaw at 479-571-2796 or rbradshaw@waltonartscenter.org.

We hope that you will consider participating in Take A Seat to help those you serve to experience the amazing power and magic of the arts!

We Are Thankful for Our Opportunity to Grow Philanthropy!

Paul and Walt are thankful that Gardner & Associates continues to be blessed with clients who put our advice to work to increase their giving.

Daily we are reminded of the increased demands for services and challenges to meet your budget in this economy. We trust that our counsel to our clients and through this newsletter helps to improve your chances to succeed and thrive.

Findings in recent Gardner & Associates projects and studies reflect these headlines that in spite of a challenging economy American individuals, foundations and corporations have increased their charitable giving by 2.1% adjusted for inflation.

Giving USA Foundation reported this welcome change for 2010 giving after drops in 2008 and 2009 totaling 13%.  Those dips were the largest in more than four decades.  In 2010 total giving surpassed the $300 billion mark.  Giving USA estimates is that $10.59 billion more was donated in 2010 than in 2009.

Giving by individuals they estimated at $211.77 billion, up 2.7% over 2009.  Charitable bequests rose an estimated 18.8%.  Corporate giving rose 10.6%.  Foundation grants remained steady with a decrease of .2%.

Connect with the full details of the Giving USA 2011 Report in a free summary of findings at www.givingusareports.org.

Increasing Number of Adults Twitter
Communications experts continue to encourage NPOs to use tiered marketing plans to reach their maximum audience. This means combining print with a range of digital media.  That way your message is delivered in several different formats.

The Pew Research Center reports that 13% of online adults use Twitter. This is up from 8% in a November 2010 study. Interestingly, Twitter users own both a cell phone and a handheld device. African Americans and Latino Americans report high rates of adoption of digital services with 25% reporting online activity and 11% indicate that they Twitter daily.

Food Bank Initiates “Bridge Bash”
The Food Bank of North Central Arkansas hit a home run when it launched its first signature event.  The “Bridge Bash” was held on the iconic Rainbow Bridge in Cotter, AR.  There were 1,600 participants.  The event netted $34,000 that will result in over 170,000 meals served to clients in the FBNCA nine-county service area.

Jeff Quick, FBNCA Development Director, engaged a 22-member community task force to organize the event.  The “Bridge Bash” served a dual purpose:  galvanize community awareness of local hunger needs and build a connection between the Food Bank and the communities it serves.

Winthrop Rockefeller Collaboration
Gardner & Associates is pleased to be working with the Winthrop Rockefeller Foundation staff and board to provide coaching for its Moving the Needle Working Group.  The Working Group is composed of eleven NPOs across Arkansas that work on projects to reduce the effects of poverty, increase graduation rates, build NPO capacity and strengthen communities. Walt Eilers is serving as the coach and Paul Gardner as the consultant on this project.  It is an exciting project that is having transformation impacts across the state.

The Winthrop Rockefeller Foundation website is www.wrfoundation.org. Make it a favorite because WRF continuously publishes reports and information on events, projects and people that are making a difference in Arkansas.

Youth Strategies
Youth Strategies (YS) is a Springdale NPO that works with students in the Alternate Learning Environment (ALE) program of Springdale Schools.  The YS clients frequently find the classroom environment challenging.  YS’s mission is to keep these ALE students in school, get them to graduate and teach them to become social entrepreneurs.

Youth Strategies provides job skills to its clients.  YS stated with Community Bike Shop, a bike repair shop.  This summer they added The Green Team, a lawn care business.  Next summer they will add a truck farm.  Each activity teaches the students responsibility, job skills and builds confidence.

Mike Fohner conceived and is the CEO of Youth Strategies.  Be sure the check out the YS website, www.youthstrategies.org.

YS is one of Gardner & Associates pro bono projects in 2011.  We are pleased with the progress of its board capacity building and its program development.

G&A Sponsorships
The Gardner & Associates positioning statement is “Growing Philanthropy.”  Each year we work to support local groups with both donations and pro bono work.   In 2011 G&A will sponsor the AFP National Philanthropy Day in both Little Rock and Northwest Arkansas. We provide pro bono support to Youth Strategies, Yvonne Richardson Center and Fayetteville Underground.

Paul serves on the board of  Vera Lloyd Home, while Walt is the President of the Botanical Garden of the Ozarks.

Linda Lysakowski, President of Capital Ventures (www.cvfundraising.com), presented an enlightening session in the August AFP webinar. Her topic was how to engage the business community in local philanthropy. From her presentation I took away five helpful insights:

1. Begin your relationship seeking business/corporate volunteers and leverage their interest and familiarity into donations. Linda reminded me of the adage, “ask for a donation and you will get advice, but ask for advice and you will get a donation.”

2. Develop relationships through communications and engagement. Invite a small group (less than 20) business leaders for a brief breakfast (7:30 AM) tour of your NPO. Personalize the tour. Learn their areas of interest and follow up with newsletters and progress reports with them.

3. Focus your business message on four keys. Linda recommended that NPOs hone their message to demonstrate efficiency, define how business support will enhance the NPO bottom line, outline how a business can partner with your NPO and finally, how that business will be recognized.

4. Keep your business case statement to one page. Produce a one-page fact sheet (two-sided) with graphs or charts. Keep text to a minimum.

5. Empanel a business committee to advise your NPO staff and board. Ask your Chamber of Commerce to help you establish the committee to define the impact and return on investment (ROI) your NPO has on your community.

Linda also recommended that NPOs begin using Linked In to connect with the business community. Her clients are seeing it as a way to reach out to business and corporate interests and engage volunteers (back to note 1). She noted that Twitter and Facebook are more personal, while Linked In is business-oriented.

Finally, Linda recommended a business open house or event at the start of the NPO program year to enhance community awareness of your mission, goals and impact.

This is event to seek volunteers and advisors.

CONSIDERING UPDATING YOUR WEBSITE?

The 2011 Cygnus Report related a key response from prospective donors that the NPO website is their central reference point to learn about your organization and mission. It is the first place that a potential donor indicates he/she goes to decide on engagement and/or donation.

In August, Gardner & Associates assessed our own website. We found that the landing page needs to be more informative. We are working to refresh its look and functionality. Once I can get some pictures and graphics, Jeannette Balleza of Scribe Marketing will breathe new life into our website. Keep checking.

This realization came as we worked with several clients on repositioning their websites to more effectively deliver their message.

If you are considering an upgrade, G&A encourages that you spend a little time reading the details on Gail Perry’s website (www.gailperry.com). Specifically, look at the Annual Giving section and review the five ideas she has compiled:

• 20 Best Practices for Monthly Giving Programs
• The Smartest, Easiest and Most Productive Annual Giving Strategy Around
• 8 Important New Fundraising Trends (just to get perspective)
• 16 Provocative Ideas That Will Raise More Money
• 22 Ideas to Make 2011 Your Best Fundraising Year Yet

Reading Gail’s blog will get you thinking. From there, visit the following websites to get some great ideas:

• www.foodbanknca.org uses a template from Feeding America to tell its story. It uses Network for Good to process donations.
• www.livestrong.org integrates message, advocacy and helping into a very user-friendly page.
• www.care.org presents its give messages on a rotating landing page.
• www.alumni.umd.edu also employs the five spot rotations to keep alumni informed and draw them into engagement. Yes, only a Terp would love it.
• www.waltonfamilyfoundation.org rotates its three areas of concentration and tells a powerful story.
• www.wrfoundation.org highlights its four focus areas on the webpage for easy access and navigation.

CONSTANT CONTACT WEBINAR ABOUT SOCIAL MEDIA

If you use Constant Contact remember they are scheduling a free 60-minute webinar on September 29 at 11 AM on social media.

It will outline how to develop a social media strategy, promote events, and engage constituents in talking about your NPO and measuring the impact of social media.

Also, check out Linked In as a tool in your fundraising toolbox. As noted in the first article, it can help connect your NPO with the business community.

Gardner & Associates recommends that NPOs belong to the Arkansas Coalition for Excellence. ACE and its national partner, the National Council of Nonprofits, are advocates at the state and national level for NPOs. Take a minute to check out www.acenonprofit.org, and then join. It is a sound and timely investment!

A recent NCN newsletter contains the following article:

President Obama and Congressional leaders reached agreement on a $2 trillion deal to raise the federal borrowing limit and cut spending. The legislation, signed by the President on August 2, immediately cuts discretionary spending by $900 billion over ten years, and raises the debt ceiling in two steps, each time allowing Congress to vote to disapprove the increases (but those votes would be subject to presidential vetoes that are unlikely to be overridden). The agreement also creates a 12-member bi-partisan, bi-cameral super-committee to determine the details of an additional $1.2 trillion to $1.5 trillion in deficit reduction (which can be in spending cuts, entitlement reforms, and increased taxes). The plan developed by the super-committee will be subject to House and Senate votes without amendments by December 23. If Congress fails to reduce the deficit by at least $1.2 trillion more, the agreement calls for automatic across-the-board spending cuts: $600 billion from defense programs and $600 billion from domestic programs, with the exception of programs for the poor including Medicaid and Social Security.

Analysis of the Debt Deal

What It Means to Nonprofits

No one can predict with any certainty how the forces unleashed by the deficit reduction deal will impact nonprofits and the people they serve, nor, for that matter, how the deal will impact businesses or state and local governments. Here are a few observations to provide some perspective to the coming debates:

• Spending cuts: As the New York Times, Washington Post, and the Christian Science Monitor report, governments at the state and local levels already are bracing for significantly reduced funding, which, in turn, limits their ability to work with nonprofits to provide services on behalf of governments in communities throughout the country.

• Entitlement Reforms: Since policymakers generally assume nonprofits will fill in the gaps the policymakers create, many of the reforms to Medicaid, Medicare, and Social Security are likely to increase demand for services and reduce funding. Proposals on the table range from reducing eligibility and reimbursement rates, to delaying and taxing benefits.

• Tax Reforms: There is broad agreement that the tax code is too complicated and unfair, but no consensus exists on whether reforms should be designed primarily to simplify the law and reduce tax rates, or to generate increased revenues to reduce the deficit. Lowering the individual tax rates from the current top rate of 36 percent to 25 percent, as discussed in the House, is expected also to lower the incentive for giving, as is the President’s proposal to limit the value of charitable and other itemized deductions.

Tell us what you think: How will the budget deal affect your ability to accomplish the mission of your nonprofit? How will it affect the people you serve?

Recommended websites to visit

Gardner & Associates works with its clients to make sure that their websites are informative and easy to navigate.

Take a few minutes to look at these four websites:

www.gailperry.com is an interesting and informative website on which Gail Perry, a fundraising consultant shares what she and other professionals are seeing as trends. Look at her ideas for annual campaigns and board capacity building. She makes complex issues understandable.

www.foodbanknca.org is a G&A client in Norfork, AR. Jeff Quick, FBNCA Program Director has put together an innovative site that shares the new branding, logo and programs of the Food Bank. Note the prominent “Donate Now” button. Also, note the rotating recognition of sponsors.

www.waltonfamilyfoundation.org is a newly updated website sharing the three focus areas of this foundation. Note the ease of navigation and the clarity of the message and brand.

www.wrfoundation.org is the Winthrop Rockefeller Foundation vehicle for outlining its program and impact. You will learn a great deal about Arkansas issues if you visit this page. Make it a Favorite!

Governance Capacity Building

NPO boards have four critical roles to fulfill. Becoming fully informed about the operation of your NPO, its mission and its impact is essential to grow your capacity to do the best job as a board member.

An NPO board member is responsible for four critical roles:

• Setting and maintaining the policies of the NPO.
• Monitoring the NPO’s operation and budget.
• Serving as an ambassador or community figure for your NPO.
• Acting in the best interest of the NPO in regard to friend raising, fundraising, and exercising due diligence and duty of care in managing the NPO.

Paul and I recently researched the philanthropic impact of the recent tax extension. There is great news for NPOs in this legislation! In our review we believe that there are aspects that you should prominently and aggressively communicate to both your NPO’s prospects and donors.

Put simply, the tax legislation passed by the lame-duck Congress is great news for philanthropy and for prospective donors. The caution is that this window is open for relatively short periods and needs to be publicized on a number of levels. Since we are in July, the clock is running and action needs to be considered in the very near term. Tax laws are always in flux. Who knows what will happen in 2013?

Gardner & Associates recommended on June 15 that its clients consider focusing information to donors to five aspects of the legislation:

1.    Cut in payroll taxes: In 2011 employers and employees are having their wage withholding reduced by 2% to 4.2%. This cut means that an employee earning $100,000 will receive an additional $2,000 in 2011. The employer has a savings also with its match. Prospects can use this “windfall” to realize one-time philanthropic goals.

2.  The Bush tax cuts were extended intact for 2011 and 2012. This includes lower income tax rates and lower long-term capital gain tax rates. This applies also to qualified dividends. The top rate is now 15% down from 25%. A double benefit can be gained by giving property with long-term capital gains. One, the charitable deduction for the value of the property and two, avoiding the capital gains tax that would result from selling the property.

3.    The “marriage penalty” relief provision remains in effect for
2011 and 2012. That provision doubles the standard deduction and widens the tax bracket for joint filers.

4.    IRA Charitable Rollover extension: IRA owners at age 70 1/2 or older can once again direct a qualified charitable distribution from their IRA to a charity for 2011 only.

Anyone over 70 1/2 with a traditional IRA must take an annual distribution. This rule applies even though the individual is still employed and even if he/she does not need the money.

There are two key benefits to this gift option that make it attractive. First, the amount distributed from the IRA is excluded from the donor’s income for federal tax calculations. Second, the amount distributed to the charity from the IRA counts toward the donor’s required minimum distribution for that year.

5.    Reduced estate taxes: The taxable estate exemption is set at $5 million ($10 million for married couples) in 2011 and 2012.

The top estate provision is set at 35% down from 45%. All this good news eliminates tax on many estates and reduces the impact of federal estate tax on larger estates for the near future. Also, a provision to provide full portability for unused exemptions for surviving spouses.

Gardner & Associates is not a tax consultant firm. We are simply notifying our clients and friends of significant tax benefits that could attract high-value prospects to consider a charitable gift in this positive tax atmosphere. Encourage your prospects and donors to talk to their advisors to ensure that each maximizes his/her overall planning and wealth management goals.

Enjoy communicating great news to your donors and prospects!

Have You Heard of Arkansas Correctional Industries?
Recently, Gardner & Associates met with Ray Herndon, one of four sales representatives for ACI (870.489.4255 or  ray.herndon@arkansas.gov) to learn about the array of products that ACI can provide at amazing pricing to Arkansas NPOs. Check out their vast product line at www.acicatalog.com.

ACI offers many items that NPOs routinely purchase: binders, flyers, membership forms, binding, business cards and paper. They also have an amazing array of furniture and equipment.

What G&A appreciated about this opportunity is that it helps inmates learn real-world skills and prepares them for a productive career. It also helps that the pricing is very attractive to NPOs in a tight economy.

If all you thought that ACI did was make license plates, check out their website and see how they can help your NPO hold the budget line.

Check out the ACE website at www.acenonprofit.org.

DOES YOUR NPO HAVE A CURRENT GIFT ACCEPTANCE POLICY?
A gift acceptance policy provides guidance to your NPO board and staff in what types of gifts it will accept (or not), what it will expect from the donor and what actions the NPO will take once the gift is made. Such a policy ensures clarity and transparency throughout the cultivation and gifting process.

Gardner & Associates recommend that each NPO include a gift acceptance policy in its policies and procedures manual.

Developing a gift acceptance policy is a helpful capacity building process to follow your strategic planning. Once your strategic plan outlines your goals, a NPO should outline what types of gifts is feels it can accept to achieve that mission. Doing the research and discussing the aspects of gift acceptance is a helpful capacity building undertaking. It ensures that everyone is on the same page regarding the types of gifts accepted and the action steps to secure those gifts.

The May/June Advancing Philanthropy has two excellent articles on this topic.

TECHNOLOGY CONSIDERATIONS
If your NPO has an interactive website or is active on Facebook and Twitter, consider five ideas that Gardner & Associates have identified to enhance your marketing effectiveness:

1. Keep your message and image fresh.
When prospects connect with your NPO via web page, Facebook or Twitter, they don’t want to see the same exact items posted to all three channels. Change up the wording in your social posts. Use a different image in your profiles. Segment your message based on the media; website for content and Facebook or Twitter for events or program updates.

For example, if you post an article or blog post, you can highlight one aspect on Facebook and another on Twitter.

2. Invite volunteers, prospects and donors to a special event at your NPO.
Give each a reason to drop in by hosting an event. Make the event a friend raising one, not a fund raising one. Celebrate recent successes of your NPO or its volunteers. Give prospects a chance to meet your NPO leadership, ask questions about your mission and learn how they can become engaged.

3. Introduce a new program or service.
Tell people about your latest program or newest service. Highlight the reason your NPO has added it and the impact expected in your community. Make sure that those on your email list get the news first, before those connected with you on social media hear about it.

4. Say thanks!
Let your volunteers and donors know how much you appreciate their commitment? Send an email that says simply, “Thank you for helping our NPO achieve its mission.” Tell them how their engagement has helped make a difference, met a need or define the impact it had.

5. Share videos.
A short video featuring a vital aspect of your NPO’s mission can have a dramatic impact on volunteers, donors and prospects. Why not create an awareness campaign around a new set of videos you’ve created? They could be casual messages from NPO leadership; client testimonials about your services, or highlights of recent programs or events. People love to watch video, so give them something to view.

The goal of this type of campaign is to break your awareness/marketing efforts into smaller tasks, you can be more nimble and can engage your volunteers, donors and prospects on a more frequent basis.

TWO THINGS LEARNED IN AN AFP WEBINAR ON PLANNED GIVING
Timothy Logan of RuffaloCODY outlined how to develop a planned giving marketing plan. Two of his comments deserve specific attention NPOs whether or no you anticipate a planned giving effort. Both relate to loyalty or trust:

1. Frequency and consistency in annual giving is a indicator of loyalty and passion for your NPO. It is a solid indicator of planned giving potential.
2. Volunteering an email address is an indicator of trust. It is a signal that the individual is open to greater engagement with your NPO.

We are blessed to help stimulate, mentor or teach others. We work with people who are builders. We are able to put our combined 60 years of fundraising experience together to help NPO leaders achieve their mission and their vision. We are right in the thick of it helping NPOs put together the head and the heart of their organization to achieve success. We are energized daily when we find change happening each day in both small and large ways. Daily we witness progress and success in our clients.

Thank you to our clients who share their challenges with us and allow us to live a very fulfilling and rewarding professional life!

Thoughts about wealth ratings…

Wealth rating to fundraisers is the equivalent of a bass finder to professional fishermen. You may be fishing in a large lake, but the technology helps you focus on the best place to fish because you know all about the fish that are there just below your boat. Wealth rating enables fundraisers to move ahead with confidence and clarity.

Working with our clients G&A has learned three significant values from an investment in wealth rating:

1. The information from the wealth rating screening gives you valuable details on capacity, affinity and propensity that you can add to you donor database. That information enables you to frame informed and fitting strategy to match your prospect’s interests and ability.

2. Being more familiar with your prospect enhances your capacity and capability during the cultivation process. You are more aware, confident and tuned-in.

3. You can discard rumors and anecdotal stories and focus on hard, objective facts.

The importance of a strategic calendar…
Some NPO professionals confuse tactical planning with strategic planning. Tactical or functional is the daily implementation list to ensure you do everything you planned to reach your strategic or visionary goal. It is the difference between a pre-flight check list and a flight plan.
G&A recommends that their client NPOs develop a strategic calendar and then put it on the wall. We encourage you to put it on the wall in a visible place as a daily reminder of what is important.

Plan your calendar to achieve your strategic goals. A strategic calendar takes careful coordination and discussion to achieve. Consider five steps in creating your calendar:

1. Prioritize critical program times for consistency. Assess their placement on the calendar. Space out your programs for consistency and good management. Try to have at least one major program each quarter.

2. Define communications branding and key message times. Ensure that you have a branded and consistent communications message that supports your programs and fundraising.

3. Select critical fundraising points. Plan your fundraising to follow your communications. Determine times of critical need for your NPO. Pick time slots that allow your NPO to be out in front in making your ask. Assess the competition cycle for fundraising – annual, event and end-of-year.

4. Assess staff and volunteer loads. Anticipate staff and volunteer demands as an integral part of your calendar. Build them into your calendar for recruitment, orientation and recognition.

5. Plan times for database and technology management. Set aside times each quarter to update technology, database, software and equipment.

Trending towards NPO collaboration…
G&A is a proponent of greater collaboration among NPO’s, particularly in the same locale. We do not have all the answers to what our industry is going to look like as we come out of this recession. We have been saying to our clients that the future cannot be business as usual.

In a recent Chronicle of Philanthropy Tax Watch report, the IRS addressed the fact that the NPO industry has slowed its rate of growth during the current recessionary period. New filings for new NPO’s have slowed. Existing, small, struggling NPO’s are not succeeding. According to the report, the latter group may shrink even more dramatically given the new reporting requirements imposed by the IRS. The number of new groups seeking NPO status was down 30% in 2010. While the economy is a presumed impact, the new procedure the IRS is requiring to gain status is surely another reason for the declining numbers.

A colleague in Michigan, Katie Laverty, president for the Society for Nonprofit Organizations, thinks in a similar vein as G&A. Katie said, “We have really been somewhat discouraging of people starting a nonprofit if they haven’t done the research, (G&A calls it “due diligence”), to see if there are others that are providing that [same] or similar service.”

G&A, along with Katie and others recognize the challenge in finding the right good board members of affluence and influence to carry the organizations’ banner, other good volunteers, and the organizations’ capacity to raise money needed to run a really successful organization.
Laura Otten of the Nonprofit Center at LaSalle University adds her concern by raising the question, “Do we really need all these independent organizations?”

So, once again, G&A encourages you to look introspectively. Are you really making an impactful difference? Could you be more effective if you addressed the efficiency issue and chose to partner or be more collaborative with “like-kind” organizations in your community or region? Think on these things. Perhaps G&A can help you.