Board Leadership Essential in Troubling Times

April 12, 2009

Those of us working for and volunteering with our favorite nonprofits over the past few months have no doubt been mired in a daily, if not hourly, quandry of either-or decisions as we continue to feel the impact of the economic downturn.

It is at times like these that nonprofits must count on their board leadership for guidance and – well, leadership.

A few recent publications offer some insight as to how:

The BoardSource article Educational Resources for Boards on Leading Through the Financial Crisis presented 10 smart things boards can do NOW to address the financial crisis: Don’t panic. Think strategically. Get a realistic picture of your organization’s financial situation. Create a contingency plan. Work more closely with your chief executive. Step up your fundraising. Tighten your belt. Pump up your engagement. Evaluate your compensation structure. Be a mission guardian.

In Improving Nonprofit Decision-Making Amid Economic Crisis, published in The Nonprofit Quarterly, author Kate Barr, executive director of the Nonprofits Assistance Fund, offers what she calls “Critical Considerations for Organizational Decision Making,” saying, “Understanding the environment in which you make decisions empowers you to understand the impact of potential decisions.”

Innovation-focused business magazine Fast Company offers tips on how best to leverage a board in a recessing economy, with advice for nonprofits, grantmakers and even business people looking to serve on boards. The author, Alice Korngold, writes:

 ”These will be the toughest times for nonprofits to access revenues, but there will still be a flow of funds from government, corporations, foundations, individuals, and fees. The dollars will skew to organizations that have CEOs and boards who make sure that their missions are relevant, their staffs are delivering high quality and meaningful programs, and their boards are generous and fully engaged in building relationships and advocating for support.”

Join the conversation: How can boards best provide leadership, guidance and whatever else is needed to steer their organizations through this crisis? What resources (articles, workshops, etc.) are available for board members looking to increase their skills and effectiveness during economic downturns?

- Chris Murakami Noonan, MCF Communications Associate

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Posted by Chris Noonan

Did You Lose a Few Pounds?

April 9, 2009

Earlier this year, we reported on General Mills’ support of the Pound for Pound Challenge. The contest encouraged Americans to lose weight, and every lost pound triggered a donation by General Mills to Feeding America, a hunger-relief charity.

 

If you took the challenge and lost some weight, you must now register your loss with the Pound for Pound Challenge, www.pfpchallenge.com. It’s the registration that generates the donation, so don’t forget this all-important step. You can register anytime before May 5, but why not do it today?

 

The Pound For Pound Challenge matches every pound of registered weight loss with a ten cent donation to Feeding America, where ten cents buys one pound of groceries. Donations will be distributed based on participants’ ZIP codes, so the higher your area’s level of involvement, the larger the donation to your local food bank.

 

 

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Posted by sstehling

Everyone Counts: Getting Ready for the 2010 Census

April 8, 2009

April 1st was “Get Ready for Census Day” in Minnesota. Getting an accurate census count is important for a couple of reasons:

  • $300 billion in federal dollars, as well as billions of additional state dollars, are apportioned to local communities for health, education, transportation and other programs, based on census data.
  • The reapportionment of legislative seats at the federal, state, and local levels are determined based on census data.
  • Census data can be used for planning purposes, to understand population distribution and needs.

There are a number of ways that foundations, nonprofits, governments, and individuals can prepare for the 2010 Census, to be held on April 1, 2010. 

The Population Resource Center, which was originally established to encourage foundations to fund “population” programs and to provide them with population data, has a collection of relevant links and information, including the Foundation Guide to the 2010 Census. The guide includes information for foundations interested in assisting with census-related community outreach efforts.

The Minnesota Participation Project offers information on why accurate census data matter to nonprofits around the state. MPP will be convening nonprofits to plan a coordinated, targeted census outreach effort.

The State Demographic Center is hosting a series of Town Hall meetings in communities around the state designed to help local governments increase participation in the census.

At 75%, Minnesota had one of the highest response rates to the 2000 census; let’s aim even higher in 2010.

–Juliana Tillema, MCF research manager

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Posted by julianatillema

ABFE Announces 2009 Award Winners

April 7, 2009

 The Association of Black Foundation Executives has announced the 2009 James A. Joseph Lecturer and the recipients of the Emerging Leader in Philanthropy Award and Institutional Award for Philanthropic Leadership.

  • Ms. Amina J. Dickerson, Senior Director of Global Community Involvement for Kraft Foods (retired), is ABFE’s 18th James A. Joseph Lecturer on Philanthropy.
  • Mr. Rahsaan Harris, Programme Executive for Atlantic Philanthropies, is ABFE’s 6th recipient of the Emerging Leader in Philanthropy Award.
  • Southern Partners Fund is ABFE’s 6th recipient of the Institutional Award for Philanthropic Leadership.

The James A. Joseph Lecturer on Philanthropy is a tribute to Ambassador James A. Joseph, ABFE co-founder and distinguished leader in the field of philanthropy. It recognizes an outstanding individual whose leadership and contributions as a visionary philanthropic leader have helped advance progressive philanthropic ideals, strengthen grantmaking institutions and build vital Black communities.

The Emerging Leader in Philanthropy Award recognizes an outstanding individual whose innovative leadership promotes philanthropy as a means of social change in Black communities and advances ABFE’s mission.
 
The Institutional Award for Philanthropic Leadership recognizes significant efforts and contributions of grantmaking organizations to promoting philanthropy as a means for social change in Black communities. The award recipient is an exemplary grantmaking institution that models effective and responsive grantmaking practices.

Dickerson, Harris and the Southern Partners Fund will be recognized at ABFE’s annual program on May 2nd in Atlanta, Georgia.

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Posted by MCF Webmaster

Is Special Event Fundraising Facing an Uphill Climb?

April 6, 2009

Spring is in the air – bringing with it a mailbox and inbox full of invitations to a myriad of special event fundraisers.

The recent flurry of mailbox activity got me thinking about a finding released last month by The Conference Board:

  • 55 percent of companies surveyed said they will decrease funding for event sponsorships in 2009.

I spoke with several local corporate grantmakers as I wrote articles for the spring issue of MCF’s Giving Forum, which will be published in mid-April. They echoed similar concerns about continuing their funding of special events amidst increasing inquiries for support.

As the universe of funding dollars is getting squeezed, worthy causes are working extra hard to garner the financial support they need to continue their work. For some nonprofits, this means making an extra push to seek contributions toward special events. This comes as many corporate grantmakers rethink whether their limited resources are best given directly to putting food on the food shelves or to the dinner gala that then puts food on the food shelves.

The Charity Navigator analyzed the efficiency and effectiveness of special events fundraisers in 2007. Some food for thought:

  • About half of all charities use special events as a way to fundraise.
  • Organizations in the Midwest receive 13 percent of their contributions from special events (compared to 20 percent in the Northeast).
  • Health and arts charities are the most likely to hold special events.
  • On average, the charities studied spent $1.33 to raise $1 in special events contributions, compared to an average overall fundraising rate of $.13 to raise $1.

There are, of course, so many good reasons to host special event fundraisers in addition to the actual fund-raising: They rally volunteers, increase visibility for the organization and its cause, strengthen ties to current supporters, cultivate prospective donors and volunteers, and provide leadership and organizational opportunities.

I’ve invested, as I’m sure many of you have, a great amount of time and resources supporting the missions of many organizations by attending or helping with dinners, auctions, raffles, concerts, walk/run/bike/read-a-thons, carnivals, races. All have depended heavily on support from grantmakers, as well as from individuals.

As economic struggles continue to stress all of us, what will be the ramifications if I, we, funders choose to skip the event? Will we still give to the cause without the event to inspire us? What is it about a special event makes it special and worth the investment by organizers, attendees and supporters? What does the future hold for fundraising through special events?

- Chris Murakami Noonan, MCF Communications Associate

2 Comments | corporate, fundraising, giving forum, individual giving, nonprofits | Permalink
Posted by Chris Noonan

MCF Members Visit Federal Lawmakers

April 3, 2009

Last week I attended Foundations on the Hill as part of a group from Minnesota and North Dakota that met with staff and members of the House and Senate to ask for their support on issues affecting philanthropy. I teamed up with several MCF members to visit with the staff of Representatives Bachmann (R-06), Ellison (D-05), Peterson (D-07) and Walz(D-01). We also had a chance to meet Congressmen Ellison and Walz.

It was an exciting time to be in Washington and advocate on behalf of the philanthropic community. There was strong support for philanthropy and an interest in how grantmakers are responding to the economic downturn. After the meetings, it made me realize how lucky Minnesotans are to be represented by such smart, hard-working people.

Our meetings focused on four main issues:

Estate Tax Reform: MCF supports an estate tax with reasonable thresholds and rates and opposes full repeal of the estate tax. Most of the Minnesota delegation agreed with this position.

IRA Charitable Rollover:Through 2009, taxpayers aged 70 ½ or older can make tax-free distributions of up to $100K from their IRAs to charitable organizations. However, gifts to donor-advised funds do not qualify for the incentive. MCF supports legislation that expands and permanently extends the IRA Charitable Rollover to include gifts to donor-advised funds, supporting organizations, and private foundations and eliminates the $100,000 cap. The congressional staff generally agreed with this position.

Excise Tax: Private foundations that are exempt from federal income tax are generally subject to a 2% excise tax on their net investment income. However, the tax is reduced to 1% in any year in which the foundation’s percentage of distributions for charitable purposes exceeds the average percentage of its distributions over the five preceding taxable years.

President Obama’s proposed budget calls for replacing the 2-tier structure of the excise tax with a single rate of 1%. The private foundation excise tax bill (S. 676) would remove the current two-tiered excise tax and replace it with one flat rate. The proposed rate, which will be determined by the Joint Committee on Taxation, would be set between 1 and 2 percent at a revenue-neutral level.

Recognizing the current economic downturn and fiscal challenges Congress is facing, MCF supports pursuing a revenue-neutral excise tax. Again, the congressional staff that we met with generally agreed with this position.

Charitable Deduction Rates: President Obama’s 2010 budget outline calls for tax changes that would affect individuals and families in the two highest tax brackets. The proposals include reducing the value of itemized deductions that families earning more than $250,000 or individuals earning more than $200,000 can take in charitable donations. The change is intended to help pay for health care reform.

A reduction in the charitable deduction rate will reduce the incentive for donors to give, thus reducing the amount of money available to support nonprofits. At a time when charities and nonprofits are faced with increasing demands from their communities, it is important that policies support and encourage charitable giving.

In general, the congressional staff agreed with the President’s proposal but understood that reducing the deduction rates would negatively affect giving. To learn more about this issue, check out this information from The Center on Philanthropy at Indiana University, the Center on Budget and Policy Priorities and the Tax Policy Center (Urban Institute and Brookings Institution).

Leave a Comment » | economy, government, individual giving, public policy | Permalink
Posted by Ryan Johnson

Foundation Giving Increased in 2008 Despite Economic Downturn

April 2, 2009

The nation’s foundations increased their giving a modest 2.8% in 2008, to an estimated $45.6 billion, according to a new report by The Foundation Center. Grantmaking is expected to decrease in 2009, according to the report, with community foundations being most likely to say they anticipate a decrease this year.

Based on a survey of 1,200 large and mid-sized foundations, the authors found that 47% of respondents had decreased their giving in 2008. When the survey was conducted the previous year, before the economic downturn took hold, only 29% of respondents had anticipated decreases in 2008.

For the first time, the nation’s community foundations surpassed corporate foundation giving, at $4.6 billion in 2008, an increase of 6.7% from 2007. Corporate foundation giving remained steady, at $4.4 billion, while independent and family foundation giving increased by 2.5%, to $33 billion.  

Recent Philanthropy Potluck discussion has focused on the question, what value does research have when data are lagged and results are about yesterday – especially during this unprecedented downturn. This recent report is a good example of why it’s important to look at both what foundations say they are planning, and then again, at what they actually did. Comparing planned vs. actual is only possible with an after-the-fact look-back; without it, we wouldn’t know that the decrease in foundation giving in 2008 was actually 18 percentage points greater than anticipated. And that kind of information is likely to be useful in predicting what might happen in 2009.

Leave a Comment » | community foundations, corporate, family foundations, private foundations, research | Permalink
Posted by julianatillema

In the Media

April 1, 2009

Roundup of media coverage of the world of philanthropy and nonprofits.

Economy:

Financial Safety Net of Nonprofit Organizations is Fraying, Survey Finds
The New York Times: Only 12 percent of nonprofits surveyed expect to end the year with an operating surplus.

Foundation Giving in ’08 Defied Huge Asset Decline
The New York Times: Foundation giving for 2008 fell by just 1 percent on an inflation-adjusted basis.

Downturn Thinning Ranks for Charity Walkathons and Other Events
The Chronicle on Philanthropy: Pledge-based fundraising events are attracting fewer participants who fear they won’t meet pledge-collection commitments.

Silver Lining of Downturn: Pro Bono Aid
onPhilanthropy: Many law firms are increasing pro bono legal programs, which is good for nonprofits.

As Detroit Struggles, Foundations Shift Mission
The New York Times: Faced with declining resources and exploding need, foundations are picking winners and losers.

Local:

Editorial: Foundations Urge Look at Reform Ideas
Star Tribune: Five of Minnesota’s leading philanthropic foundations say it’s possible for Minnesotans to be served as well or better by government, without paying a lot more.

Minnesota Community Members Ponder What to do to Address Continuing Racial Achievement Gap
MinnPost.com: Minnesota’s black students are performing below black students in Alabama and South Carolina.

McKnight Approves $6.8 Million in Grants
Minneapolis/St. Paul Business Journal: Grants support arts, children and families and more.

Frey Foundation Gives to End Homelessness
Twin Cities Business: Heading Home Minnesota will receive $5 million.

Guthrie Theatre to Trim Budget by Nearly $4 Million
Star Tribune

MN Orchestra Scales Back Sommerfest
Star Tribune

National:

National-Service Bill Clears Final Major Hurdle, Winning Senate Approval
The Chronicle of Philanthropy: U.S. Senate adopts Serve America Act.

Analysts: Giving by Wealthy Would Decline Slightly Under Obama Budget Proposal
The Washington Post: Under Obama’s proposal, the tax deduction for those with incomes over $250,000 would be capped at 28 cents on the dollar.

Senate Measure Seeks to Spur Foundations to Give More
The New York Times: Senators introduce legislation encouraging foundations to give away more of their money.

Giving Less but Leading More
onPhilanthropy: It’s vital to showcase foundations’ value beyond dollars and cents.

Community Foundations Increase Funding for Human Services
Dayton Business Journal: Fifty-one percent of community foundations are increasing funding for human services assistance in 2009.

Council Tells Lawmakers 28% of Donor-advised-fund Grants Went to Social Services
The Chronicle of Philanthropy: More than a quarter of grants support basic social services.

Pay at Nonprofits Gets a Closer Look
The Wall Street Journal: Nonprofits bracing for scrutiny of their executive pay practices.

YouTube Ads Earn Nonprofit $10,000 in a Single Day
Watching TV Online: YouTube launches “Call to Action” feature.

Leave a Comment » | arts, community foundations, economy, education, family foundations, fundraising, government, in the news, individual giving, leadership, nonprofits, private foundations, public policy | Permalink
Posted by sstehling

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