•June 1 2014 NPT Layout 1 5/20/14 11:43 AM Page 1 THE … · 2020. 1. 6. · Fundraising With Funding BHY PATRICK SULLIVAN ave you changed your donor management system’s pass-

THENONPROFITTIMESTM

The Leading Business Publication For Nonprofit Management • www.thenonprofittimes.com • $6.00 U.S. June 1, 2014

abila.com/TheClimb #K2CureAlz

A D V E R T I S E M E N T

Heartbleed, page 8

BY MARK HRYWNA

The Tisch Multiple Sclerosis Re-search Center of New York(Tisch MSRCNY) raises some $7million a year for its operations,

but for a clinical stem cell trial, the organ-ization turned to crowdfunding. Tischsurpassed its $300,000 campaign goalwithin four weeks on Indie gogo.com,raising $317,540 from 960 funders (an av-erage $331 per donor).

Charities are beginning to raise allkinds of money through crowdfunding. Arecent Forbes article estimated crowd-funding hit $5 billion annually -- almostone-third of it for causes. That’s poten-tially $1.5 billion for charities throughsites such as Kickstarter, Indiegogo.comand many others in the market.

To make sense of the options fordonors, David Neff and Miriam Kagan es-tablished a Crowdfunding Bill of Rights.Since presenting at various conferencesthis spring, including South By South-west Interactive (SXSWi) and the Non-profit Technology Conference (NTC), theduo has been crowdsourcing the Bill ofRights, soliciting feedback from the on-line nonprofit community.

There’s a general sense of both excite-ment and apprehension from nonprofitsabout crowdsourcing, according to

Crowdsourcing:Donors AreConfusingFundraisingWith Funding

BY PATRICK SULLIVAN

Have you changed your donormanagement system’s pass-word lately? If you’ve heardabout the Heartbleed bug,

you probably did. If you haven’t changedyour passwords, do it now. We’ll wait.

Heartbleed is a coding bug within theOpenSSL open-source web security soft-ware. A “heartbeat” is a signal that passesbetween the server and a user’s computerto check that a session is still active. Thetwo entities ask each other to return arandom phrase at a specific characterlength, such as “Good: 4 characters.”

A hacker can trick the server into re-turning much more memory by askingfor “Good: 64,000 characters.” Hidden inthat extra data can be usernames, pass-words, encryption codes, credit cardnumbers, and a number of other sensi-tive bits of information.

Many of the most popular donor man-agement systems, such as those made byAbila, Blackbaud, Softerware and WildApricot, do not use OpenSSL. “Our pri-mary platform of choice is Microsoft-based,” said Grant Howe, vice president ofresearch and development for Austin,Texas-based Abila. “Most of our web-basedproducts are using Internet informationservers with Schannel (Microsoft’s secu-

Nonprofit DatabasesOften Too Small ForHeartbleed HackersTo Try To Infiltrate

BY MARK HRYWNA AND PATRICK SULLIVAN

It’s almost a time-honored tradi-tion that some charities -- anddonors -- don’t want to talkabout. Someone makes a fortune

on the misfortune of others and turnsto charity to help shine up their publicperception.

History provides plentyof examples of oil or railroadbarons giving away theirmoney to causes as a way toimprove their images. Thelatest, and most public, ex-ample is Donald T. Sterling. The billion-aire owner of the National BasketballAssociation’s (NBA) Los Angeles Clip-pers made his money in real estate andpersonal injury law. The same year hesettled a multimillion-dollar housingdiscrimination suit he was honored by

the local chapter of the NAACP.Sterling is having trouble even giv-

ing money away lately, whether per-sonally or through his eponymousfoundation. In April, it was revealedthat Sterling made derogatory remarksabout blacks during a conversation

that was recorded by an as-sociate. The NBA took ac-tion once the recordingwent public, including a fineand lifetime ban. Charitieshave followed suit.

The local chapter of theNAACP pulled what would have been asecond lifetime achievement award forSterling and its president resignedafter questions and criticisms aboutthe award came to light. The NAACP’snational office plans to develop guide-

Sterling, page 6Crowdsourcing, page 8

Turning Away MillionsThat Could Fund Mission

Sterling controversy shines lighton charity gift acceptance policies

Donald T. Sterling bashes MagicJohnson in a May 12 interviewwith Anderson Cooper on CNN.

•June 1 2014 NPT_Layout 1 5/20/14 11:43 AM Page 1

NEW!

Attending the DMAW Bridge Conference?

Contact us to set up a meeting!

The HEART of a successful nonprofit campaign

NONPROFIT LISTS The HEAR

THEAR of a successful nonpr

ofit campaignof a successful nonpr

ofit campaign

s Association’AlzheimerActive Donors (exchange only)732,000

Is with the NONPROFIT LISTS

Active Donors (exchange only)League of W77,000 Active

NONPROFIT LISTS

otersomen VVoLeague of WDonors77,000 Active

of a successful nonpr

NONPROFIT LISTS om Infogrfr

ofit campaign

Thirteen WNET14,000 Active 1

argeting Solutionsoup Tom Infogr

Thirteen WNETDonors14,000 Active

argeting Solutions

American ForestsActive Donors4,000

Heart AssociationAmerican Donors1,369,000 Active

American Indian College FundUniverseotal 18,000 TTo

American Printing House for the BlindActive Donors (exchange only)12,000

Arthritis Foundation

Heart Association

American Indian College Fund

American Printing House for the BlindActive Donors (exchange only)

Make-A-W296,000 Active

March of Dimes1,530,000 Active

The Marist Brothers47,000 Active

Memorial Sloan Kettering824,000 Active

Mercy Home for Boys and Girls

Americaish Foundation of Make-A-WDonors296,000 Active

March of DimesDonors1,530,000 Active

The Marist BrothersDonors47,000 Active

Memorial Sloan KetteringDonors824,000 Active


America


United 225,000 Active

United States Golf 736,000 Members

United States Holocaust Memorial Museum68,000 Active

U.S. Olympic Committee526,000 Active

etVVe

Spinal AssociationUnited Donors225,000 Active

AssociationUnited States Golf 736,000 Members

United States Holocaust Memorial MuseumDonors68,000 Active

U.S. Olympic CommitteeDonors526,000 Active

etsFirst

United States Holocaust Memorial Museum

Arthritis FoundationDonors327,000 Active

ownBoys TToDonors1,176,000 Active

Catholic Donors Helping the Poor andorld - TAbandoned of the W

Donors216,000 Active

Donors71,000 Active

Catholic Donors Helping the Poor andrinity Missionsorld - T

Mercy Home for Boys and Girls227,000 Active

Muscular 489,000 Active

National Audubon 252,000 Members

National Committee to Preserve SocialSecurity & Medicare954,000 Members/Donors

Mercy Home for Boys and GirlsDonors227,000 Active

Dystrophy Association Muscular Donors489,000 Active

SocietyNational Audubon 252,000 Members

National Committee to Preserve SocialSecurity & Medicare954,000 Members/Donors


Dystrophy Association NEW!

National Committee to Preserve Social

etVVe168,000 Last 12 Month Donors

WFMT Chicago19,000 Members

ildlife ForeverW9,000 Last 12 Month Contributors

WTTW Chicago121,000 Members

etsFirst168,000 Last 12 Month Donors

WFMT Chicago19,000 Members

ildlife Forever9,000 Last 12 Month Contributors

WTTW Chicago121,000 Members

Church of St. John the BaptistFileotal 18,000 TTo

Citizens Utility BoardActive Donors (exchange only)50,000

Common CauseDonors41,000 Active

Covenant HouseDonors552,000 Active

Church of St. John the Baptist

Active Donors (exchange only)

National Organization for W43,000 Active

New 128,000 Active

Our Lady of V29,000 Last 12 Month $5-$49.99 Donors(exchange only)

Rock the V841,000 Active

omenNational Organization for WDonors43,000 Active

elevision Doork Public TTeYYoNew Donors128,000 Active

ictory Homes of CharityOur Lady of V29,000 Last 12 Month $5-$49.99 Donors(exchange only)

oteRock the VVoMembers841,000 Active

omen

elevision Donor DB

ictory Homes of Charity29,000 Last 12 Month $5-$49.99 Donors

Attending the W Bridge ConfeDMAAW


Attending the W Bridge Conference?


asserman SchuDebbie WWaDonors12,000 Active

eteraVVeDisabled American Donors4,446,000 Active

Feed the ChildrenActive Donors (exchange only)660,000

Friends of the High LineActive Donors (exchange only)6,000

Graymoor Franciscan Friars of the

asserman Schultz for Congress

eterans



AtonementGraymoor Franciscan Friars of the

Sacred Heart League786,000 Active

Shrine of St. Pio of Pietrelcinaat the Church of St. John the Baptist40,000 Active

Smile T350,000 Active

St. Labre Indian School710,000 T

841,000 Active

Sacred Heart LeagueDonors786,000 Active

Shrine of St. Pio of Pietrelcinaat the Church of St. John the Baptist

Donors40,000 Active

rainSmile TDonors350,000 Active

St. Labre Indian SchoolUniverset l710 000 TT

Shrine of St. Pio of Pietrelcinaat the Church of St. John the Baptist

Graymoor Franciscan Friars of the Donors489,000 Active

1,731,000 Subscribers/Buyers/Donors

Guideposts Foundation DonorsDonors431,000 Active

RescueInternational Animal Donors14,000 Active

AtonementGraymoor Franciscan Friars of the

1,731,000 Subscribers/Buyers/Donors

Guideposts Foundation Donors

Rescue

710,000 T

St. Joseph’719,000 Active

Susan G. Komen for the Cure448,000 Active

T59,000 Active

The Province of St. Mary of theCapuchin Order

Universeotal710,000 TTo

s Indian SchoolSt. Joseph’Donors719,000 Active

Susan G. Komen for the CureDonors448,000 Active

s Hospitalexas Children’TTeDonors59,000 Active

The Province of St. Mary of theCapuchin Order

The Province of St. Mary of the

6,000 Members

Request a customized recommendation for your next campaign! W

Capuchin Order251,000 Active


Capuchin OrderDonors251,000 Active


fffer targetede ofRequest a customized recommendation for your next campaign! W

fer targeted lists and segments


UPFRONT___________________________________________________________________________________________________________________________________________________

11 Turning Away MillionsThat Could Fund MissionBY MARK HRYWNA & PATRICK SULLIVAN

11 Nonprofit Databases Often Too Small ForHeartbleed Hackers To Try To InfiltrateBY PATRICK SULLIVAN

11 Crowdsourcing: Donors Are ConfusingFundraising With FundingBY MARK HRYWNA

COLUMNS_______________________________________

GENERAL RAMBLINGS

10 Charitable LaundryBY PAUL CLOLERY

OPINION11 New CFC RegulationsBY PATRICK MAGUIRE

STREETSMART NONPROFIT MANAGER

12 Counting On ItBY THOMAS A. MCLAUGHLIN

REGULATION

14 Government Doesn’t PayBY MARK HRYWNA

SPECIAL EVENTS

20 Bogied PrizesBY PATRICK SULLIVAN

ON VOLUNTEERS

22 The HuntedBY SUSAN J. ELLIS

INSURANCE

23 Risky BusinessBY SIOBHAN KELLEY, JD

TECHNOLOGY

25 Taking Sides On ’Net NeutralityBY ZACH HALPER & PATRICK SULLIVAN

In This Issue June 1, 2014 Vol. 28 No. 7

JUNE 1, 2014 THE NONPROFIT TIMES www.thenonprofittimes.com 3

Editor-in-Chief Paul Clolery

[email protected]

Senior Editor Mark Hrywna

[email protected]

Staff Writers Patrick Sullivan

[email protected]

Zach Halper

[email protected]

Contributing Editors Rick Christ

Susan Ellis

Herschell Gordon Lewis

Thomas A. McLaughlin

Tim Mills-Groninger

Amy Sample Ward

President John D. McIlquham

Business Manager Barbara Nastasi

[email protected]

Production Manager Jeff Nisbet

[email protected]

Marketing Director Deanna Quinones

[email protected]

Advertising Sales Director Scott Vail

[email protected]

(973) 538-3588

Business Development Dir. Peter Manfre

[email protected]

(973) 401-0202 Ext. 219

Classified Manager Mary Ford

[email protected]

(973) 401-0202 Ext. 206

Corporate John McIlquham

President & CEO

Paul Clolery

Vice President/Editorial Director

Circulation Manager Charles Mast

[email protected]

Executive Offices Mack-Cali Lake View Plaza

201 Littleton Road, 2nd fl.

Morris Plains, NJ 07950

(973) 401-0202

Postmaster Mail address changes to:

NCS Fulfillment

P.O. Box 0567

Selmer, TN 38375

1-888-400-4963

THE NONPROFIT TIMES is published semi-monthly A one-year subscription is $65 US, $89 US Canadaand $129 US for international. The NonProfit Times (ISSN 0896-5048) USPS #001-548 is a publication ofNPT Publishing Group, Inc. Periodicals postage paid at Morris Plains, NJ and additional entry points. Unso-licited manuscripts are welcome, but The NonProfit Times does not assume responsibility for their return.None will be returned without a self- addressed, stamped envelope. No material in this publication may bephotocopied or reproduced in any form whatsoever with out permission of the Publisher. Views expressed byindependent columnists or correspondents are theirs and do not necessarily represent the views of NPTPublishing Group, Inc. © 2014 NPT Publishing Group, Inc.

SPECIAL REPORT______________________________________________________________________________

17 Unseen & Uncounted: Volunteer LevelCalculations Might Soar If Online/VirtualVolunteers Were Properly AssessedBY MARK HRYWNA

4

17

20

1

DEPARTMENTS___________________________________

34 News In Brief

28 Resource Marketplace

28 Advertisers Index

31 Calendar

31 NPT Jobs


Headquarters Layoffs At NAACPAmid a search for a new president and CEO

and the recent resignation of its Los Ange-les chapter president, the NAACP plans to cutabout 7 percent of staff at its Baltimore, Md.headquarters.

The national office released a 94-wordstatement that offered few details: “Like manynonprofits in transition during adifficult economic climate, theNAACP has taken proactivesteps to improve the financialstability of the 105-year-oldAssociation moving forward. Infurtherance of this goal the Na-tional NAACP is undergoing a 7percent reduction in staff. Webelieve this step will yield aleaner, more nimble organiza-tion for the 21st century.

“The NAACP will remainsteadfast and undeterred aswe continue to advance the mission of theNAACP -- to ensure the political, educational,social, and economic equality of all persons toeliminate race-based discrimination.”

Staff at the national office was reduced bynine positions, from 130 to 121, according to Di-rector of Communications Derek Turner. The or-ganization hopes to introduce a new presidentand CEO at its national convention July 19-23 in

Las Vegas, Nev. A search committee is complet-ing its process and expects to make a recom-mendation to the board soon on a new CEO,Turner said. Lorraine C. Miller has been servingas president and CEO on an interim basis.

Ahead of the transition to a new leader,Turner said the organization is trying to secure

its financial stability. “Givingthis organization over to anew leader relatively soon,what we want to do is beproactive,” he said. “It’s acombination of the economicclimate we’re in, plus thetransition, that people arehesitant to dive in making thatfinal commitment.”

Past President and CEOBenjamin Jealous is creditedwith growing the NAACP’sdonor base and stabilizing its

finances before leaving at the end of 2013. Thenational organization’s Internal Revenue Serv-ice (IRS) Form 990 for 2012, the most recentyear available, reported $43.2 million in totalrevenue and 181 individuals employed duringcalendar year 2012. Turner did not have an es-timate for 2013 revenue. As CEO, Jealousearned total compensation of about $320,000last year. – Mark Hrywna

4 JUNE 1, 2014 THE NONPROFIT TIMES www.thenonprofittimes.com

The recent opening of the latestRay and Joan Kroc Corps Commu-

nity Center in Norfolk, Va., was thesecond to open this year, leaving TheSalvation Army with two of the 27 cen-ters left to unveil.

Approved to receive funds to builda Kroc Center in 2005, The SalvationArmy Hampton Roads Area Commandheld a weekend of activities to kick offceremonies.

The most recent Kroc Center toopen was in Memphis, Tenn., where a100,000-square-foot facility opened inFebruary. A Kroc Center in Camden,N.J. has scheduled a ribbon-cutting forOctober. The would leave the 27th KrocCenter, planned for Staten Island, N.Y.,as the last remaining facility to open.

The centers were the result of a $1.5-billion bequest left in 2004 by JoanKroc, the widow of McDonald’s founderRay Kroc. The mammoth gift stipulatedthat half of the money go toward con-struction of new community centers inunderserved areas around the country.Local affiliates approved for the fundingwere required to raise the other half ofthe funds for construction.

Once the estate was settled, the gifttotaled more than $1.8 billion and wasdistributed to the Salvation Army’s fourterritories between 2005 and 2010.Each territory administered $450 mil-lion it received, and set requirementson how much local affiliates were re-quired to raise to match the Kroc gift,which would fund construction andpart of the facility’s endowment.

The Salvation Army in 2009 acquireda former hospital site for the Kroc Cen-ter planned in Staten Island. The Salva-

tion Army continues to discuss theStaten Island Kroc Center and expectsto make a “definitive announcement re-garding the plans for this location bythis fall,” according to The SalvationArmy’s Greater New York Division.

In some areas, Kroc bequest dollarsearmarked for Kroc Centers were can-celed due to difficulties raising local

matching dollars and eventually weredisbursed to other centers. The firstwave of Kroc Centers opened in 2008,including San Francisco and Atlanta.

The Memphis Kroc Center raised ap-proximately $26 million locally to match$59 million from the Kroc gift ($30 mil-lion for construction and $28 millionfor the endowment). The goal was toraise about $28 million for Norfolk facil-ity, with $56 million in the Kroc funds tosupport construction and endowment.

PAGE4N E W S I N B R I E F

THENONPROFITTIMES

Kroc Center OpeningMarks #25

Giving Local Event Exceeds $53 MillionG ive Local America, the 24-hour giving

campaign by community foundationsaround the country, raised almost $50 million indonations on Tuesday. The exact tally atpresstime was $53,155,009.36 from 306,054gifts, according to the leader board atwww.GiveLocalAmerica.com, outpacing themore than $32 million raised on Giving Tuesday.

More than 7,000 nonprofits in 120 commu-nities nationwide took part in the 24-hour giv-ing campaign on May 6 that was meant tocelebrate 100 years of local philanthropy bycommunity foundations.

Among the highest revenue campaigns:• GiveBIG (Seattle Foundation), $12.89 million

from 64,000 gifts (average gift of approxi-mately $201.40);

• Pittsburgh Gives, $4,633,910• Sarasota, Fla., $3.127 million;• Big Day of Giving (Sacramento Region Com-

munity Foundation), $3,019,913 from 18,915gifts ($159.66);

• Lift the Lowcountry (Coastal CommunityFoundation, Charleston, S.C.), $2,494,023from 6,677 gifts ($373.52);

• GiveNOLA Day, $2,264,512 from 19,625 gifts($115.40);

• The Big Give S.A. (San Antonio CommunityFoundation), $1,956,587 from 21,260 gifts($92.03);

• Give Local Ann Arbor Area, 1,919,922 from7,875 gifts ($243.80);

• Great Give (Community Foundation for PalmBeach and Martin Counties), $1,906,063from 7,406 gifts, ($257);

• Give Local Louisville, $1,892,211 from 2,563gifts.

Other areas were not nearly as active, withas many as two-dozen regions collectively rais-ing less than $100,000.

While Giving Tuesday was a sector-wide ef-fort, Give Local America was the brainchild ofAustin, Texas-based fundraising firm Kimbia asa mid-year complement to December’s GivingTuesday. For some giving days, new donors canrepresent up to 60 percent of all contributors.Kimbia’s 2013 North Texas Giving Day raisedmore than $25 million in 17 hours, inspiring thecreation of Give Local America.

Giving Tuesday – held the Tuesday afterThanksgiving – raised at least $33 million, ac-cording to a survey of payment processorscompiled by The NonProfit Times. Most of thedonations were processed via Blackbaud butGive Local America is the first event strictlyusing one processing firm.

Kimbia received a fee equal to almost 3 per-cent of funds processed, which covers “projectmanagement, nonprofit training, project imple-mentation and executive, software usage,” ac-cording to Chief Marketing Officer ChristineLowery. She estimated that Kimbia investedmore than two years and $500,000 in market-ing and support expenses for the event.

Joan Kroc

BenjaminJealous


Where Does Your Direct Response Fundraising Hurt?

Tell us where your fundraising hurts.

Call Tim Kersten at 508.474.2793

or email [email protected].

Be sure to ask about our no-risk, quick-start

solutions that can put your fundraising on the

road to recovery, fast.

STRATEGY

“I need a long-term strategy but we seem stuck on tactics.”

GIFT FREQUENCY

“Our donors are giving less frequently. Why?”

robbinskersten.com

Feel Better SoonIf you’re not 100% satisfied with the health of your direct response fundraising program, get help now.

Introducing RobbinsKersten Direct, a fundraising services company with proven multichannel solutions that can help you feel better soon.

ACQUISITION

“How do I acquire enough new donors when available

names are shrinking?”

DONOR LOYALTY

“ I’m afraid we’re losing touch with what our donors really want.”

ONLINE

“ We should be raising much more money online than we are now.”

WespR

erehWonseesp

oes Denu Fonse

uo YYooessiardn

ecri Dru Hugnis

tec?tr Hu

?

espR

d a leeI n“

onseespTEAATTRS

tatrm sret-gnod a l

nu FonseYTEG

y get

siardn

Hugnis

?tr Hu

?

ee st wub

csitcan tk octum see

”.cs

ONORD

arfm a’I“ wichout

YTLLTAYYAO LONOR

g nisoe lr’ed wir outha wht wi

RE FTFIG

no druO“qers fsel

YNCEQURE

gniiv ger asron”?yh. Wylnteu

rsronod

NEINLO

uohe sW“

”.tna wlylae r

NE

g nisiae rd blu

w doH“no dwen

amn

ONITISIQUCA

h guone eriuqco I aw delbaliav ane whsro”g?niknir sher aesam

ON

h e”

h mcum

e thnilno

g

y enoe mroh m”.woe nre an wae th

lFe

tt Be

g?

S

eTTe

un furo yerhe w uslle

.stur hgnsiiardun

leFet 1oe nr’uof yInopset rcerid

RgincudortIn

rett Beh ttid wefisita% s00t 1gog prnisiardnue fsn

rei DnetsreKsinbbo R

noo Srruof yh otlaee hhh t.wop nlet he, gamrg

ginsiardnu f at,cre

e

C

mr eo

ue sB

oiutlos

unuro yehe use

t n aetsrem Kil TalC

l aim bor@tecnnco

uut oobk aso ae tru

out yn pat cahs tno

voceo rd taor

surgsiadun

t 3972.744.805com.netsreksnibb

ats-kciu, qksir-or nu

n tg onisairdnur fuo

.tsa, fyrev

com.

tra

ehn t

gms coceivresahs tnoitulos

n mevoh prtiy wanpml beeu fop ylet can ha

gt,lenanhcitlun m.noor settel b

obbinskersr

.comentobbinskers



lines for its 1,200 active branches to helptheir award selection process.

UCLA said thanks but no thanks to a$3 million pledge, including a $425,000initial payment Sterling recently made insupport of basic kidney research by theschool’s Department of Nephrology.

“Mr. Sterling’s divisive and hurtfulcomments demonstrate that he does notshare UCLA’s core values as a public uni-versity that fosters diversity, inclusionand respect,” the Los Angeles-based uni-versity said in a statement. UCLA also re-ceived numerous inquiries about anadvertisement in the Los Angeles Times,in which it appeared the university waspublicly thanking Sterling for the gift.The ad was placed by Sterling, not theuniversity, the statement noted.

“The statement says it pretty clearly.The comments that were made runcounter to UCLA’s values,” said SteveRitea, a spokesman for UCLA. The uni-versity’s development staff is workingwith prospective donors who havestepped forward to discuss the possibil-ity of making up for the rejected dona-tion, he said.

“It’s a pretty rare thing for this univer-sity or other universities,” Ritea said, ofrejecting or returning a donation. Thegift was made relatively recently but hedeclined to disclose the specifics ofwhen it was made, or Sterling’s historyof giving to the university.

The $3 million would be a lot ofmoney to almost any charity, but it’s adrop in the bucket in the scope of howmuch UCLA raises. The school reportedraising almost $420 million last year, atotal that put it among the top public

universities in the nation when it comesto fundraising. “Not that they comealong every day, but they [UCLA] areraising hundreds of millions of dollars,”said Angela Seaworth, ACFRE, directorof the Center on Philanthropy and Non-profit Leadership at Rice University inHouston, Texas.

The more a university is tied to diver-sity and inclusion, Seaworth said, themore difficult it is to accept a gift from aperson who’s at least been publicly por-trayed as intolerant. It’s common fornonprofit boards to have gift acceptancepolicies but gift acceptance committeesalso would help in weighing a decisionon a donation, she said.

“Sometimes gifts arise and you justdon’t have enough information whetheryou should accept right away,” Seaworthsaid. “Boards have to exercise great care

when they sit down as a Gift AcceptanceCommittee. The decision encompasses afull range of ethical concerns, not justdo we need $5 million more this yearand this gift fills it,” she said.

Gift acceptance policies are fairly com-mon among nonprofits. “People under-stand the need for them,” Seaworth said,but like research, there is always going tobe a gap. “A policy is there to guide youbut it’s not going to be all encompass-ing,” she said. There will be seriousthoughts that can’t be written in every sit-uation, and a committee is helpful be-cause “it would have people who’ve beentrained and understand an institution’sneeds.” The charge of a committee,which could be a subcommittee of the de-velopment committee, would be to solelythink about: Does this gift make sense forthe organization, and make a recommen-dation to the full board.

“This is a classic tainted money prob-lem,” said Eugene R. Tempel, foundingdean at Indiana University’s Lilly FamilySchool of Philanthropy, adding that anorganization must examine whether it

can withstand an assault on its integrity.That process can be driven by an organi-zation’s ethics committee.

“Not everyone has an ethics commit-tee but this is a real teachable momentabout why they should have one,” hesaid. Confronted with a problem likethis, an organization can turn to a groupof people who are trained and informedabout whether they should accept, rejector rescind a gift.

“It’s an ethical issue, typically an ethi-cal dilemma because of a conflict be-tween integrity and perhaps somethinglike fairness. People could be helped ifthe money is kept, versus cleansing a per-son’s reputation. Those are the kinds ofthings that get discussed,” Tempel said.He cited a Jewish code that if the moneyis spent, and on a good purpose, that itnot be sent back, but also, if a person hasalready been humiliated, there’s no sensein humiliating them further by sending agift back. “It’s all very complicated.”

It’s one reason why many institutionsare adding some type of return policyinto gift agreements, where they wouldhave an opportunity to remove a name

STERLINGContinued from page 1

TenQuestions

On GiftAcceptance

Policies

Angela Seaworth, ACRE, ana-lyzed gifts around the countryand found that nonprofit

boards often are lacking informationon how to guide them in gift accept-ance. Her research led to the cre-ation of a series of questions basedon broader ethical ideas to help giftacceptance committees.

The 2006 paper, “ContemplatingConditional Gifts to Universities,”was part of doctoral seminars that fo-cused on ethics in philanthropy. The10 questions can be adapted by non-profits as a guideline for boards toconsider about conditional gifts:• Does the gift appear to be the right

type of gift, at the right time, forthe organization?

• Could the conditions of the gift po-tentially damage the organization’sreputation?

• Does the gift add strategic value tothe organization, possibly beyondits immediate strategic plan?

• Is the gift opportunity sustainablebeyond the initial gift?

• Does the gift benefit the greatestnumber of individuals in the uni-versity community or address anidentified need among a smallerconstituency?

• Despite any vices the conditionsexpose, does the gift intent seem tocome from a desire to improve, as-sist and benefit the university andits students?

• If conditions surround gift recogni-tion, are they within the scope ofthe university’s practices and arethey reasonable?

• Do the conditions impose interfer-ence upon the organization’ssound operating practices?

• Has the institution adequately con-veyed its needs and expressed anyconcerns about the gift to the donor?

• Does the gift align with the missionof the organization?The director of the Center on Phi-

lanthropy and Nonprofit Leadershipat Rice University in Houston, Texas,Seaworth is a doctoral candidate andholds an M.B.A. from the Universityof Chicago’s Booth School of Busi-ness and a graduate certificate innonprofit management from IndianaUniversity’s School of Public and En-vironmental Affairs. NPT

Former NBA star Magic Johnson has been the target ofsome of Donald Sterling’s rants, with incorrect informationregarding the work of Johnson’s foundation and insinuationsregarding his HIV infection.

Donald Sterling’s girlfriend V. Stiviano, withouther customary visor shielding her face.

This is the ad that UCLA official said DonaldSterling ran without their knowledge regardinga gift to the school’s Division of Nephrology.



on a building or program if a donor isconvicted of a crime. “The language issoft enough for other things to comeinto play, as well,” Tempel said. “It’s avery difficult spot for organizations. Thesmaller the organization and the moreneed for money, the more difficult tomake that decision in a completely un-encumbered way. It’s why an ethics com-mittee, that’s trained on how to thinkabout it in a very dispassionate way, isvery useful for an organization,” he said.Whatever decision is made, the organiza-tion must be able to explain that deci-sion to their donors and stakeholders.

Boards often are lacking informationon how to guide them in gift acceptance,said Seaworth. Research led to the cre-ation of a series of questions based onbroader ethical ideas to help gift accept-ance committees as part of her 2006paper, “Contemplating Conditional Giftsto Universities.” The 10 questions can beadapted by nonprofits as a guideline forboards to consider about conditionalgifts. (See the related box.)

Some of the questions that could re-late in the Sterling case include:

• Could the conditions of the gift po-tentially damage the organization’s rep-utation? An organization must seriouslyconsider whether an individual withbaggage is simply using it to whitewash

their image.• If conditions surround gift recogni-

tion, are they within the scope of theuniversity’s practices and are they rea-sonable? Sterling’s Los Angeles Times adwas outside the scope of traditionalstewardship practice, Seaworth said. IfUCLA’s board knew about it in advance,maybe they would not have accepted thegift. “None of that benefits the univer-sity,” she said.

• Despite any vices the conditions ex-pose, does the gift intent seem to comefrom desire to improve, assist and bene-fit the university and its students? “That’sone in which we get into ethical connec-tions and the reputation of the donormore than any other,” Seaworth said.

On a considerably smaller scale, lead-ers at some organizations that have re-ceived grants from the Donald T.Sterling Foundation have vowed not toaccept any more funds. Others have saidthey would return donations.

Sterling contributed between $330,000and $450,000 to his foundation in each ofthe past three years, according to its fed-eral tax information Forms 990. Thefoundation’s priority is “primarily to non-profit events and organizations focusingon issues of poverty, homelessness, edu-cation and literacy while benefiting at-riskchildren and families in Greater Los Ange-les and Southern California.” Organiza-tions are limited to one request percalendar year and out-of-state requests

would be declined unless special circum-stances warranted consideration, accord-ing to the tax form.

The foundation typically awardsabout 40 general purpose grants of$5,000 to $10,000, ranging from Jewishand educational organizations to healthand human services groups. The Mu-seum of Tolerance in Los Angeles re-ceived $30,000 in grants over the lastthree years but will no longer seekmoney from Sterling’s foundation. Thefunds will not be returned because theywere used for “programming that helpfight and prevent the very racism andhate that was expressed in Mr. Sterling’stape,” according to a statement.

Los Angeles-based Goodwill South-ern California was slated to receive$100,000 during the next decade butwill no longer accept financial supportfrom Sterling’s foundation, including re-turning the latest $20,000 grant, saidPresident and CEO Craig Smith.

Grant recipients also included theAmerican Red Cross Los Angeles, Chil-dren’s Hospital Los Angeles, the localchapter of the United Negro CollegeFund and the Black Business Associa-tion. A local Red Cross spokeswomansaid they do not comment on donorswhile calls to other grant recipients werenot returned by presstime. NPT

‘‘Not everyonehas an ethicscommitteebut this is areal teachablemoment aboutwhy they shouldhave one.

--Eugene R. Tempel

CohnReznick is an independent member of Nexia International

cohnreznick.com/nfp

Joe Torre2014 National Baseball Hall of Fame Electee

IT TAKES INSIGHT TO HELP YOUR NONPROFIT SUCCEED.

Nonprofits need more than technical accounting proficiency. You need proactive insight and guidance that can enhance your financial stewardship, protect your

tax-exempt status and improve performance in a changing tax and regulatory environment so you can stay focused on what matters most—your mission.

Find out what CohnReznick thinks at CohnReznick.com/nfp. Forward Thinking Creates Results.



Kagan, a senior principal at Kimbia. TheAustin, Texas-based technology firm hashelped raise millions for nonprofitsthrough regional Giving Days in recentyears, including one of the biggest,North Texas Giving Day, which last yearraised $25 million -- $17 million online.The growth in crowdfunding is similarto the buzz about social media severalyears ago, with constituents and sup-porters talking about a charity but out ofits control, said Kagan.

“The Bill of Rights is for people givingto a crowdfunder,” Kagan said, explain-ing what a donor should expect from anentity. “What’s the basic engagement, be-cause it’s a free-for-all right now,” shesaid. Eventually, they also could create acrowdfunder bill of responsibilities andexpectations. “If you’re a nonprofitworking with a platform now, or build-ing your own, what basic rules of en-gagement should we expect from you,”Kagan said.

“As we are creating the crowdfundingBill of Rights, we’re crowdsourcing,”Kagan said. “We did not put out a planand say, what do you think?” Instead, thefirst draft was consolidated from conver-sations at conferences and put to thecommunity for feedback. “It’s really theultimate way. It’s constituent and sup-

porter driven, like crowdfunding,” shesaid.

Crowdfunding can include GivingDays as well as peer-to-peer campaigns,such as galas, events and relays -- any-thing that solicits donations in a short-ened timeframe. In some cases it refersto commercial entities aiming to raisestartup capital. In a way, fundraising is aword that has been stolen from the non-profit sector by crowdfunding, accord-

ing to Kagan. “Traditional fundraisinghas been a word that belonged to thecharity world,” she said.

For instance, if someone is crowd-funding for a trip to display their art at ashow, it’s not necessarily fundraising inthe traditional sense and there mightnot be any charitable giving aspect to it,Kagan said. They might just not have themoney to go. “As a donor, it’s very con-fusing. How do I understand what

you’re doing? How much of that moneyare you actually getting? What’s happen-ing to my data?”

The bill of rights creators aim to es-tablish a set of standard expectationsthat legitimate crowdfunding and peer-to-peer campaigns should follow and tobuild an educated donor base, explain-ing the ins and outs of what to expectfrom crowdfunding initiatives.

Whether someone gives to a projectthat’s being developed in its infancy ordonates to a charity via a crowdfundingplatform, there’s no difference in whatfunders are looking for: they want to seehow their money is being used. Themodern donor is looking for trans-parency and feedback about how theirgift was used or made a difference, Neffsaid.

The Securities and Exchange Commis-sion (SEC) this past fall issued proposedguidelines for crowdfunding but therules were aimed primarily at startupsand for-profit entities seeking alternativecapital financing. Kagan said she and Neffwere inspired by the SEC’s proposal aswell as a crowdfunding rule passed inthe United Kingdom, which also mostlyaddressed the commercial side about re-funds and assumption of risk.

The term crowdfunding might be of

rity analog to OpenSSL).”Howe said that the most commonly

affected are Apache servers. Accordingto a survey by Internet services companyNetcraft in Bath in the United Kingdom,an estimated two-thirds of web serversworldwide are open-source servers fromApache and nginx, both of which wereaffected by Heartbleed.

Big websites affected by OpenSSL’sHeartbleed include Facebook, Google, In-stagram and Dropbox. “A lot of times, verylarge SaaS (software as a service) vendorsare going to gravitate to open source,”said Howe. “As you scale an applicationwider, the expense of a license scales.”

Howe said it’s “a little bit of a crap-shoot” as to what thieves can get whenthey exploit the Heartbleed bug. That’swhy they have to return so much mem-ory. The bug has since been patchedwith a line of code to check that thebuffer is the same size as the word it’ssupposed to return.

Your donor database software couldhave been affected by Heartbleed. But thegood news is, even if it was, “Nonprofitswould be pretty far down the list” of tar-gets, said Steve Kirsch, founder and CEOof oneID, in Redwood City, Calif. When itcomes to nonprofits, “there’s so many tar-gets and so little time, people would goto the targets” with the greatest value.

“The information people typicallygive to a nonprofit isn’t super valuablecompared to another web server,” saidKirsch. “The other thing is frequency. If

you’re looking at donors, nonprofitshave a fairly low rate of transactions persecond compared to e-commerce sites.Those are much richer targets.”

Most organizations don’t store SocialSecurity numbers in their databases. “Ithink donors would be hesitant to givethat out,” said Howe. But informationsuch as addresses, phone numbers andemail address could be accessed, as wellas staff usernames, passwords, and en-cryption keys.

“I think the obvious concern is thatdonor data is explicitly personally identi-fiable information, and it’s not some-thing that can be changed, unlike thecredentials to a website. It might alsohave credit card information stored orlinked to it as well,” said Kevin Lo, sen-ior program manager for TechSoupGlobal in San Francisco, Calif.

If Heartbleed isn’t quite the disasterfor the nonprofit sector as it is to onlineretailers, there are plenty of other secu-rity threats. “A lot of attacks come inter-nally,” said Howe. “You can get attackedfrom the Internet, but also by insiders.”

Security issues are the same for non-profits with their own databases and forco-op databases. DonorBase, in Armonk,N.Y., works with more than 250 organi-zations and has approximately 60 mil-lion donor records, according to BruceDemaree, vice president of cooperativedata services. “You cannot get to ourdatabase through the open Internet,” hesaid. “You wouldn’t be able to find it. Ifthere’s a really clever hacker who can

identify it, good luck getting in.”Howe advocates a defense-in-depth

approach to database security. “Basically,defense-in-depth means you need to putin layers of security,” he said. “It’s like afilter or a sieve. You can never be com-pletely secure, but you can reduce yourrisk with successive layers of security.”

Firewalls are an example of one layerof security. Howe advocates for what hecalls a “demilitarized zone” on servers.“Next, you can apply vulnerability as-sessment tools,” he said. “That’s a goodprotection for Heartbleed. If yourservers have Heartbleed, assessmenttools will pick that up.”

If you’re part of a co-op, you probablydon’t have to worry about technical ex-ploits that allow your data to be accessedimproperly, Demaree said. “Most fraud iscommitted on the human level,” he said.“This is not through technical malfea-sance, it’s through bad intent: people en-trusted with data who misuse it.”

Make sure your legal counsel reviewsthe contract you have with the provider.“Many agreements are ambiguous, andoften when data is given on trust, it hasthe potential to be misused,” he said.

The contracts might “appear to bestandard but you need to be aware ofthe nuances and be very clear about howyour data is used in a co-op environ-ment,” said Demaree. “The biggest vul-nerability is to give your data to a co-opand then have that data resold withoutyour overt knowledge.”

Defense-in-depth is “tried and true,

and most certainly (a strategy) that non-profits should think about,” said Lo. Aperiodic security audit is also good. Lorecommends security training as part ofnew staff and volunteer orientation.While security might seem to be an ar-cane or remote possibility in your organ-ization, that shouldn’t be an excuse notto have proper safeguards in place.”

Complexity around data security iswhy Howe suggests moving to a cloud-based option. Hosting a database on asoftware company’s server can free youup to focus more on your mission andworry less about security concerns. It’s aquestion of scale and being able to takeadvantage of an IT company’s expertise.

Many nonprofits, said Howe, “havetheir servers unsecured right out in theopen, or maybe they have a server room.They don’t have the capabilities to reallysecure it or manage vulnerability.” He saidthat if someone can get physical access to aserver, they have free reign with the data.

“There’s a lot of stuff, a lot of skillsets” involved in a holistic approach tosecurity, said Howe. “It’s hard to findone individual who is an expert in all ofthem. It kind of takes a village, and mostnonprofits don’t have those resources.”Many potential SaaS clients have beenwary of cloud security, but Howe said hefinds himself having to justify the secu-rity benefits of the cloud less and less.

Lo said there are some basic ques-tions to ask of your security protocols.“Is the data redundant,” he asked rhetor-

CROWDSOURCINGContinued from page 1

HEARTBLEEDContinued from page 1

David Neff and MiriamKagan presented theCrowdfunding Bill of Rightsat this year’s South BySouthwest Interactive.

Crowdsourcing, page 9

Heartbleed, page 12



recent vintage, Neff said, but really it’snot that different from what nonprofitshave been doing for years: soliciting do-nations to raise money during a short,limited amount of time, sometimes for aspecific objective. Crowdfunding is amore recent buzzword for it but some or-ganizations have been doing it for years.Kiva (a for-profit) and DonorsChoose (anonprofit) are essentially crowdfunders.

It’s complicated because there areonline crowdfunding platforms, pitchcontests, accelerators, giving days, andthey “all kind of fit together but not re-ally and no one’s really hitting homeruns with it,” Neff said. “It’s on the edgeof gaining a lot of traction,” he said.

A senior associate at PwC and co-founder of Lights.Camera.Help, a non-profit film festival in Austin, Texas, Neffsees crowdfunding at the same pointthat online fundraising platforms wereless than 10 years ago -- lots of experi-menting but no one’s sure how to do itjust yet.

For the Tisch Center’s campaign, In-diegogo was a way to reach new donorsand people who didn’t already knowabout the organization and its work.“There is a new generation of peoplewith a philanthropic spirit, however themajority of them use social media heav-

ily,” said Tisch Center spokeswomanPam Levin. Email blasts or letters to sup-porters didn’t have the reach that an on-line crowdfunding site provides and theFederal Drug Administration (FDA)-ap-proved Phase I Clinical Stem Cell trial of-fered a very specific cause for donations.“Our detailed campaign explained ex-actly how the trial will be conducted andwhere the funding will be applied. Peo-ple like to see where their money goes,”Levin said.

Even with the release of the Bill ofRights last month, Neff expects it to be“sort of a living document,” with inter-ested sites and people suggestingchanges.

The initial draft summary Bill ofRights was open to public commentthrough mid-April and a revision was re-leased in May:

“We the people, who are asked formoney, hereby resolve that crowdfund-ing sites will:

• Show a Clear Connection: What’sthe relationship of the people raisingmoney to the project? This should beclearly evident and endorsed by thegroup.

• Explain About The Benefitting

Organization(s): Information about theorganization benefitting should be easilyavailable, with info or links to site, lead-ership, key projects, and verification oflegitimacy of nonprofit status.

• Provide Fee Transparency: Be up-front about the fees that may be associ-ated with the platform and the project.

• Report Back: Show impact on the

charitable giving. Report back. On a reg-ular basis. At the minimum the projectleader should provide monthly updates.

• Provide Clear Timelines: Post reg-ular updates on how the project beingfunded is progressing (toward the goalor otherwise) or when work will takeplace.

• Have a Lemon Policy: Spell outwhat happens if the project doesn’tmeet its goal.

• List Your Disclaimer Clause: Ex-plain and disclose any kind of moral im-perative considerations that might gointo funding the project. Define what istax-deductible and what’s not. Makesure you are clear about fair marketvalue of any incentives or offers.

• List Risks and Benefits: Make surethere are clear disclaimers about the pos-sible risk of the project, from a financialand outcome perspective. Be clear aboutbenefits to backer, society and beyond.

• Go Beyond the Ask: Explain howdonors can get involved with the organi-zation beyond just writing a check. Cod-ing, Volunteering, Board of Advisors?

• Offer Perks or Prizes: Clearly de-fine what donors or participating fundsmight get by giving at different givinglevels or reaching funding milestonesand make sure it’s followed through on.Make it fun!” NPT

‘‘Traditionalfundraising hasbeen a wordthat belongedto the charityworld. --Miriam Kagan

Continued from page 8



End-stage renal disease can beunbelievably painful. In somecases the pain medicationssimply do not work. Research

must be continued to find a way to com-bat a painful and growing health men-ace. One of the best research facilities isat the University of California, Los Ange-les (UCLA), Division of Nephrology.

With the need for research and the suf-fering involved, it makes little sense thatUCLA has rejected a $3 million gift fromdisgraced Los Angles Clippers ownerDonald Sterling. He received a lifetimeban from running his club and the Na-tional Basketball Association is attempt-ing to force a sale of the team after racistremarks made by Sterling in his homewere taped and released to the public.

UCLA officials can say that other donorshave stepped in to replace the Sterlingcash but that new money could have donemore by being added to the Sterling gift orby being directed at other programs.

The issues of what one says in the pri-vacy of their own home and California

law regarding taping an individual can beargued in other venues. And to be sure,Sterling is not the picture perfect human-itarian. But, the charitable sector is lit-tered with donors with checkered pastsgiving away their fortunes.

This isn’t a case such as The Founda-tion for New Era Philanthropy, a Ponzischeme that ran from 1989 until its col-lapse in 1995. It raised more than $500million but nonprofits that “invested”had to give back the gains from “donors”when the scam was revealed and col-lapsed. John G. Bennett Jr., went to jailfor running the scam.

Leona Helmsley was a notoriouslymean employer at the hotels owned byher husband and then jointly owned andoperated. She was sued numerous timesfor her legendary exploits and known asThe Queen of Mean. That doesn’t stoporganizations from applying for grantsfrom her legacy foundation. The LeonaM. and Harry B. Helmsley CharitableTrust has done remarkable work andfunded important research that has had

a positive impact on people’s lives. Whatmakes that money cleaner than Ster-ling’s gift?

There is no difference between thetwo. Humans are not perfect. We allhave foibles, some much worse than oth-ers. Here’s a scenario. A celebrity dies ofa heroin overdose. The person leavesmoney in a bequest for the healthcare ofothers. Heroin is an illegal substance soclearly the law was broken. Should adrug treatment and education organiza-tion reject the money?

The majority of citizens probably sup-port police departments when the prop-erty of criminals is seized and auctioned.The money goes into the government’spocket to fund other anti-crime meas-ures. How is that different from a non-profit taking slightly tainted cash andwashing it for good? Are charities inNorth Carolina rejecting the cash fromtobacco fortune heirs? Oh, there’s somehandwringing and a few gifts areblocked or sent back. The vast majorityof the gifts are accepted without a sec-ond thought.

Through how many generations mustcash be laundered before it’s cleanenough to donate?

The fact is that cash is good. Youmight not like how the donor earned it

but if it isn’t illegal the people who gethurt are those who would have bene-fited from the gift. The donor will blowthe money elsewhere and that would bea waste.

All nonprofits need a gift acceptancepolicy. A gift should not be accepted ifthe money was gained through a crimi-nal act or something that smells of acriminal act. Likewise, the money can berejected if the product sold, such as ciga-rettes, had a hand in the deterioration ofhealth and a health system doesn’t wantit. But if the cash was legally earned, whynot accept the gift and attempt to easesuffering?

Research shows the donor pool isshrinking. Giving is increasing after theGreat Recession but generally fewerdonors are giving more. Governmentgrants at all levels are a challenge andfunding is being cut by government toservice providers. Foundations have notyet rebounded to the point where grant-making is at pre-recession levels.

It makes no sense for nonprofits toreject gifts simply to be politically cor-rect. Life is precious and short. If slightlysoiled cash can ease suffering, feed thehungry and cure disease it is fiduciarymalfeasance to reject the gift. Consider itrecycling or composting. NPT

Charitable LaundryTake the money and run, donors did

Keynote Luncheon SpeakerDavid Isay Founder & President StoryCorps

For registration and sponsorship questions, email [email protected] For exhibiting, email [email protected]

Becoming a better fundraiser. All in a day’s work.

www.frdny.org

June 27, 2014@ The Marriott Marquis New York City

IN NEW YORK

(800) 421-9512 [email protected]

PAUL CLOLERYGENERAL RAMBLINGS

2014 UPCOMING WORKSHOP

Des Moines, IAAugust 4-8Louisville, KYJuly 28 - August 1

Los Angeles, CAJuly 21-25eenville, SC GrJuly 14-18

Chicago, ILJuly 14-18rainingGrantsmanship TTr

2014 UPCOMING WORKSHOP

Los Angeles, CAOctober 6-10Philadelphia, PAugust 11-15

July 28 - August 1 Colorado Springs, COJune 9-13

Competing for F

Des Moines, IALouisville, KY

Los Angeles, CAeenville, SC

raining Program

S2014 UPCOMING WORKSHOP

Los Angeles, CAAPhiladelphia, PPA

Phoenix, AZJuly 28 - August 1 Colorado Springs, CO

ederal GrantsCompeting for F

with this code: NPSave $50 on any training

San Antonio, TXOctober 27-31 AlbuquerSept 29 - Oct 3

DenverSeptember 15-19ucson, AZTSeptember 15-19

Charlotte, NCSeptember 8-12 Orlando, FLAugust 4-8 Des Moines, IAAugust 4-8

TIMESwith this code: NPSave $50 on any training

Charleston, WVAugust 21-22 Grant Management Essentials

Milwaukee, WIJune 17-18 Spokane, WJune 10-11

Essential Grant Skills

San Antonio, TXque, NM Albuquer, CO Denver

ucson, AZCharlotte, NC

Orlando, FLDes Moines, IA

Charleston, WVGrant Management Essentials

Milwaukee, WIAokane, WWA

Essential Grant Skills



The U.S. Office of Personnel Management(OPM) recently issued new regulations over-hauling the structure and operations of theCombined Federal Campaign (CFC), the at-

work employee charity fund drive for federal workers,the military services, and the Postal Service.

The new regulations centralize a number of formerlydispersed “back-office” administrative operations andrequire participating charities to pay an up-front fee tocover the costs of the fund drive. Previously, these costswere deducted from employee gifts before the balancewas forwarded to the charities.

United Way of America and several other CFC feder-ated groups have vociferously criticized the new regula-tions, calling on Congress and the Administration tostay their implementation. They say the changes willhurt the campaign.

They are wrong. The changes might be inconvenient for the federa-

tions, but they represent a better deal for federal em-ployee-givers, and those are the stakeholders whomatter most and whose interests OPM has put first.

Not everyone agrees with United Way and the othercritics. The CFC federations and member charities Iwork with -- accounting for about 40 percent of total an-nual CFC revenues nationwide -- are broadly supportive

of OPM’s plan. They especially support the provisionthat charities should pay the costs of the campaign upfront so that gifts can be forwarded 100 percent to thecharities that federal employee-givers select.

The CFC is the largest and one of the most success-ful workplace fund drives in the world. Despite recentdeclines in the number of employees participating, thecampaign is still supported by more than a half millionfederal workers. Even with the hostile fundraising cli-mate the campaign faced in 2013, with the governmentshutdown and pay freezes and furloughs, federal em-ployees still gave more than $200 million, a testamentto their generosity.

But decline in employee participation has been aworrisome long-term trend for the CFC. In 2012, OPMassembled a commission of various CFC stakeholdersto consider ways to keep the campaign vital and rele-vant. (Disclosure: I was a member of that commission.)

PAY-TO-PLAYThe commission recommended a “pay to play” pol-

icy as a way to increase the value proposition of theCFC for givers, allowing for a 100 percent pass throughof gifts from donors to charities. Deducting funds fromthe gifts “off the top” to pay campaign expenses was apolicy left over from a time when most givers did notspecify which charities were to benefit. These days,however, almost all CFC givers specifically name thecharity or charities they want to benefit and the specificamount each is to receive.

CFC givers understand that there is no free lunch,that ultimately some of what they give will go to pay theexpenses of the solicitation asking for their gifts. Whatthey don’t want is for a third party over which they haveno control to take funds from their gifts -- often 10 to 20percent or more depending on the local CFC -- beforethe charities they support see the money. And, theydon’t want to have their gifts reduced to pay for the ex-

New CFC RegulationsThe Office of Personnel Management got it right (mostly)

All Your Constituent Information Perfectly Organized

Picture PerfectPulls together all your consituent data into one place so you see the whole picture

A Perfect Fit

Powerful ToolsPerfectly Simple to Use

Easily customised - no costly

programming required

Build lasting constituent relationships that deliver more donations, and keep fundraising costs low

So you have more time to give your cause

For a Free Demo and to learn more, visitdonorperfect.com/simple or call 800-220-8111

o n l i n e f u n d r a i s i n g s o f t w a r e

o n l i n e f u n d r a i s i n g s o f t w a r e

cpa2biz.com/NOT I 888.777.7077

The Not

up to 8 value-addeRecommended CP

dmanarMarriott WWaJune 12–13, 2014

Industry

facing today’

financial and managGain a deeper unde

and those who servmost crucial issues f

fer theileaders to offfs top experindustry’’s

it br,for this sectorr,ed THE anConsider

$100 Discount


to Receive a imes Subscribers Enter Profit TNonPr

ganization oyour ors nonpfacing today’

$100 Discount


UPYomo Code imes Subscribers Enter Pr

UPY


PATRICK MAGUIREOPINION

Opinion, page 12



One of the infrequently ac-knowledged confusionsthat some nonprofit man-agers and even some board

members struggle with is the differencebetween the rules of auditing and thoseof budgeting. The result is that the budg-eting process can be seen as a miniatureaudit that becomes unnecessarily com-plex, while the auditing process is oftenshrouded in misconceptions.

Most of this confusion comes fromthe tacit assumption that, since budget-ing deals with numbers, it must operatein a similar way to auditing, which isoften regarded as being derived from akind of higher mathematical authority.

THE SIMILARITIES To get at the differences, let’s start

with the similarities. The biggest like-ness is that both are accountability de-vices. Audits provide information thathelps board members and executives tobe accountable to funders, governmentofficials, and the public at large. Thepublic nature of the nonprofit tax return(the Form 990) and the various national

Counting On ItRules govern audits; economics rule budgets

websites that keep years of these reportson file are the ultimate in low-cost, high-visibility accountability.

Budgets, by contrast, are internal ac-countability mechanisms. Where theForm 990 holds the entire organization

they spend it on, better known as a chartof accounts. While this might seem triv-ial, it’s not. Consistency in the way onecategorizes revenues and expensesmakes it easier for insiders and outsidersto communicate about, track, and meas-

accountable, budgets are the primaryway to hold divisions, departments andprograms accountable. Even here thereis a crucial difference. Budgets allow “in-siders” to hold each other accountable,while audits allow outsiders to hold theentire organization accountable.

Budgets and audits also share defini-tions of the money they raise and what

ically. “Is it encypted? Is two-factor au-thentication an option? For example, inthe wake of Heartbleed, your providershould have audited their systems rightaway and notified you of any action youmight need to take or passwords youshould consider changing. Besides mak-ing sure your workstations are patchedand updated, I always recommend drive

encryption, which comes standard withmany OS (operating systems) now.”

Another security risk is theft and dataloss. “Your data may be leaked not be-cause of some hacker, but due to a weaklink in your staff,” said Lo. “I work underthe assumption that all software hassome sort of security flaw. It’s whetheror not it’s been exploited. I would bemore concerned about a volunteer hav-

ing access to an online database usingtheir own computer, and that computerbeing compromised, or in an on-prem-ise scenario, an employee’s car gets bro-ken into and a laptop or tablet is stolenand there’s a copy of the donor list onit,” said Lo.

A strategy that is gaining traction, andmight be one of the better layers for adonor management system, is an intru-

sion detection system. “These are soft-ware or appliances that you first train asto what normal traffic is,” said Howe. “Itlearns, then you throw the trainingswitch off and it looks for nonstandardtraffic. It’s not looking for a particularvulnerability, it looks for somethingthat’s odd. New attacks come out com-monly, and there’s value in seeing whensomething’s not normal.” NPT

ure actual and planned activities. This isone of the reasons an audit includes ahigh level summary of revenues and ex-penses whose raw data should be able tobe tied back to budget documents.

A less compelling similarity is thatboth budgets and audits tell a story -- atleast to readers knowledgeable enoughto infer it. But each approach tells the

story differently: Audits present facts;budgets represent hope.

THE DIFFERENCES If the list of similarities is short, the

list of differences is long. Here are someof the more important elements of both.

The major difference between thesetwo standard financial tools is a simpleone: Audits look only at the past; budgetslook only at the future. Audits accomplishtheir objectives by asking two fundamentalquestions: Did the financial event reallyhappen? And, was it recorded properly?These two questions get at the core of anaudit’s value -- outside assurance that in-siders aren’t defrauding the company, andthat they’re following accounting rules.

Budgets, on the other hand, are aslikely to raise questions as to answerthem. (Will we get that grant we’re count-ing on?) Budgets exist in real time, repre-senting the hopes and expectations oftheir creators. This happens more for-mally when the budget document turnsinto a reporting tool (actual, monthly dif-ference, etc.). Interestingly, the budgetthat becomes a monthly reporting toolalso usually has a high level structure sim-ilar to an audit’s “statement of activities,”which is the yearly compilation of 12months of internal financial reporting.

A little-understood aspect of audits isthat although they contain a year’s worth

THOMAS A. MCLAUGHLINSTREETSMART NONPROFIT MANAGER

OPINION

HEARTBLEED

penses of other CFC charities they may not support. United Way and other critics say charging participa-

tion fees to finance the campaign might deter smallercharities from applying, thereby lessening choice forgivers. It is more likely, I think, that participation feeswill only deter those charities that do not make enoughrevenue in the CFC to cover the cost of participation. Isuspect those will be relatively few.

In any case, the way the system works now, askingCFC givers to underwrite the participation costs ofcharities that don’t make enough to cover their owncampaign expenses is not sustainable.

LOCAL CONTROLThe CFC previously was organized into about 160

“local campaigns.” Senior federal officials and militaryofficers in the campaign area were responsible for or-ganizing the campaign and for issuing a contract forcampaign administration and management supportservices. The contracts often but not always went to thelocal United Way.

The problem, however, was that conducting 160“mini-campaigns” led to much duplication of effort andfew opportunities to leverage economies of scale.That’s the reason for that 10 to 20 percent and growingcampaign overhead charge.

OPM’s plan is to have slightly fewer but slightly larger(geographically) local campaigns. Local senior federalmanagers and military officers will still lead the cam-paigns. They will still contract for campaign supportservices. But those contracts will no longer include fiscalservices or other services, such as the CFC website thatcan be more economically centralized at one location.

United Way and the other critics characterize thischange as a “loss of local control” which will lead tofederal management and employee disinterest in thecampaign.

There is nothing in the new regulations that pre-vents local United Ways or other organizations fromproviding local CFCs with consultative expertise and“boots on the ground” campaign staff. What will disap-pear, along with the fees that supported it, is the waste-ful, duplicative effort of providing funds receipt and

redistribution services for each of the 160 local CFCswhen one national receipt and disbursement centercan do the job more effectively and less expensively.

NOT PERFECT BUT GOODNeither I nor the charities and federations I work with

endorse 100 percent of OPM’s plan. For example, thecharity participation fee structure makes no distinctionbetween charities that participate via their respective fed-erations. That means they are already paying for much ofthe administration of the CFC and the “unaffiliated” char-ities that CFC management has to deal with on a one-by-one basis (meaning increased administrative costs for thecampaign and therefore higher fees for all participatingcharities). That’s not right and should be fixed.

We believe the restructuring plan is basically soundand that many of the changes are long overdue. OPMmostly got it right. NPT

Patrick Maguire is business manager of Independent

Charities of America in Larkspur, Calif. His email is

[email protected]


MAJOR DIFFERENCES BETWEEN ACCOUNTING & BUDGETING

Accounting Budgeting

Responsible to external parties (auditors) Strictly internal

The records are ‘closed’ at some point Can always be revised

Must follow certain principles and standards Good budgets follow conventional standards

Accuracy is attested No attest required

‘Rules’ made by national groups Rules are self-imposed

Laws may be involved No legal requirements

Responsibility to outside parties No outside oversight

Record historic conditions Predict future decisions




of information, they really only representone small point in time -- the last day ofeach fiscal year. While this sounds like atechnicality, it can have significant conse-quences for non-analytical readers.

Organizations can choose their ownfiscal year. This option can permit shrewdmanagers to report at their best time ofthe year. One Wall Street-traded for-profitcompany that provides higher educationservices throughout the U.S. has set its fis-cal year to end in August. That is themonth during which they have receivedthe majority of their first semester tuitionpayments -- without making any associ-ated expenditures, such as faculty salariesand educational materials. August is themonth when their revenues and cash bal-ances are high, while their costs are low.

Budgets are intended to cover a widerange of time, usually a fiscal year, andno particular day matters more thanmost. This makes them more representa-tive of the full set of conditions likely tobe encountered during the year. The in-ternal advantage is that wise plannerswon’t be fooled by temporary good for-tune. Budgets are also dynamic in waysthat audits are not, because budgets arenot susceptible to widely accepted“rules.” Budgets are forward-lookingand can flag expected ups and downs.

The standard budget document is lessa fiscal tool than an economic one. Thenormal budget-in-a-spreadsheet attemptsto give predictability and timing to impor-tant economic elements such as staff time(FTEs) and revenue receipt. Other typesof budgets such as the cash flow projec-tions that we will deal with later explicitlytry to predict the ebb and flow of the or-ganization-wide quantity of money.

By contrast, an audit validates andpotentially re-categorizes quantities ofmoney that existed in the past. By defini-tion, audits are not about the future butrather about decisions that have alreadybeen made. This is why audits can in-clude what are called re-categorizationsand subsequent events, which are waysof making retroactive adjustments basedon information that was not available atthe time of the initial statement.

DIFFERENT KINDS OF BUDGETS Board members and nonprofit execu-

tives are usually accustomed to yearlybudgets with month-to-month reportingon revenues and expenditures. But thereare at least two other forms of budgets thatnonprofits should be aware of and thatfunction in a similar planning capacity.

The first is a cash flow “budget.” De-signed to track cash inflows and outflowson a monthly basis, cash flow budgets areespecially useful for nonprofits without alot of cash -- or with a lot of it. Unlike anaudit, a cash flow budget has no requiredformat. The common chart of revenueand expense accounts, with monthlycolumns, is usually the backbone. Cashflow budgets are a good way to anticipatewhen cash inflow might slow down, or

when there is a major change in cashspending for some reason.

Another form of budgeting is the cap-ital budget. Again, there are no rules ex-cept economic ones. A capital budgetwill include the acquisition cost of anasset, such as a building or a piece oflarge equipment, its “useful life” (mean-ing how long it is expected to stay inuse), its yearly depreciation, and the left-over value -- if any -- after its useful life

ends. The sum of all capital assets’ cur-rent values should align with a part ofthat year’s balance sheet. This is a goodexample of the interrelationship be-tween certain ‘budgets’ and the account-

ing/auditing function. Accounting and auditing is about

your records, budgeting is about yourfuture. Both are important, intercon-nected and essential. NPT

Thomas A. McLaughlin is the founder of the nonprofit-oriented consulting firmMcLaughlin & Associates and a faculty member at the Heller School for Social Policyand Management at Brandeis University. He is the author of Streetsmart FinancialBasics for Nonprofit Managers (3rd edition), published by Wiley & Sons. His emailaddress is [email protected]

Foundations. Nonprofits. Corporate Allies. Together.

2014 INDEPENDENT SECTOR NATIONAL CONFERENCE

NOVEMBER 16-18, SEATTLE, WASHINGTONIn collaboration with Philanthropy Northwest

Register today and save!ISimagines2014.com

Independent Sector is the nonpartisan leadership network for nonprofits, foundations, and corporations committed to advancing the common good. Our members’ networks collectively represent tens of thousands of organizations and individuals, locally, nationally, and globally.

Independen

thousands of orcommon good.

offoits,,nonproffip is the nonpar

ganizations and indof orrgnes’’ Our memberood..porand coroundations,, foundations,pt Sector or

nationallylocallidualsganizations and indivy represent tens of elks collectivor netw

ations committed to advancing the porpship netwtisan leaderr or

y and globally nationally represent tens of

ations committed to advancing the k ffoor

thousands of organizations and indof orrg nationa,,yy,localliduals,,ganizations and indiv .yy. and globall, yy, nationall



Despite the improving econ-omy since 2009, it’s the samestory for nonprofits with gov-ernment contracts and grants:

Governments pay organizations late, donot pay the full cost and impose arbitrarycaps on reimbursement and indirect costs.

“Government-nonprofit contractingproblems first documented in the UrbanInstitute’s 2010 landmark study were notan anomaly of the Great Recession,” ac-cording to the National Council of Non-profits, which recently released its owndata proposing solutions to address con-tracting problems. The 56-page report, To-ward Common Sense Contracting: WhatTaxpayers Deserve, was a companion ofsorts to The Urban Institute’s release ofstate profiles of its Nonprofit-GovernmentContracts and Grants: Findings from the2013 National Survey.

The National Council suggestedmore than a dozen “common sense solu-tions,” including prompt payment andcontracting laws; reducing redundancyin the application process through an

electronic repository or “documentvault;” standardized monitoring and re-porting and language, and government-nonprofit task forces.

The Urban Institute’s 192-page reportbreaks out by state the data presentednationally earlier this year. “These stateprofiles and state rankings can help non-profits assess their experiences with gov-ernment contracts and grants andcompare their state with other states,” ac-cording to the report. Nonprofit-govern-ment contracts and grants reachedapproximately 56,000 nonprofits and to-taled $137 billion, and the effects of therecession were still evident.

Problems reported with governmentcontracts and grants in 2009 are not con-fined to human services nonprofits, al-though problems are less pronouncedfor grants than contracts.

Nonprofits in 2012 were still dealingwith many of the same issues as in 2009:

• Nationally, one in five nonprofits re-ported that the experience with govern-ment contracts and grants was worse in

2012 than in previous years, led by 44percent in Georgia and 40 percent inUtah; the lowest reported was 10 percentin both Massachusetts and Colorado.

• More than half of nonprofit officials(54 percent) reported a problem withgovernment not paying the full cost ofcontracted services. The biggest prob-lems were in New Jersey (75 percent)and Rhode Island (74 percent), whilethe lows were in Colorado (28 percent)and Alaska (31 percent).

• Officials at almost three in four or-ganizations reported a problem with thecomplexity of or time required by the gov-ernment application processes for con-tracts and grants. The high was reportedin Rhode Island (87 percent) while thelow was in Mississippi (49 percent).

• Approximately 44 percent of non-profits reported a problem with changesto government contracts or grants mid-stream, once again led by Rhode Island(67 percent) while the fewest problemswere reported in Delaware (24 percent)and Washington, D.C. (23 percent).

Government Doesn’t PayContracting issues continue to vex nonprofit managers

Setting the Stage for Best-in-Show Strategies

SAVE THE DATE!

AUGUST 4-5, 2014

Get more information at http://ny.dmanf.org/

Block your calendar for a blockbuster conference, full of fundraising strategies

and sizzle that will leave you shouting, “Encore!” Book now before space is snapped up in a New York minute!

Grand Hyatt New YorkNew York CityNONPROFIT FEDERATION

Setting the Stagefor Best-in-Show

Strategies

UUGU

TA GU

4 5, 25,UST 4-5, 2014

VETHE!TE!2

ATHE DUST

DA

SASAVEASSA

or BestSettinorSSetSet

Settin

Strategiesfor Best-in-Show

for Bestfor

-in-Show Strang the Statting the Stagtting the Stag

ng the Sta

Strategiesfor Best-in-Show

i Show St a

ateggee e

gefor Best-in-Show

ategies

snapped up in a Ne!””or“Enc

and sizzle tha, full of fundreenceronfc

our cBlock y

k minutorYYow esnapped up in a Ne spacorw befook no B

ou shoutinge yvt will leaand sizzle thaaaising str, full of fundr

bustor a blockalendar four c

e!k minute is e spac

, ou shoutingegies ta

er bust

Get more informa

TIONAOFIT FEDERNONPR

.dmanf

ork Cit

yttp://nht tion aGet more informa

YYoNewGrand Hyatt New

g/

y

.or.dmanf

ork CitkrYoGrand Hyatt New

ncdcconference.org

Register early and save!

The only conference for Catholic fundraisers. Get the best information for the best value!

eronfcdcnc g.oreencer

egistR nd savy arllyer eagistte e!d savve

MARK HRYWNAREGULATION

• Rhode Island again led the nation(81 percent) when it came to nonprofitsreporting problems with governmentsmaking late payments on contracts andgrants, compared with 45 percent na-tionally. New Hampshire reported thelowest percentage (14 percent).

• Precisely half of nonprofits nation-wide reported their government contractsand grants limit program administrative oroverhead costs. The highest percentagewas found in Hawaii (62 percent) while thelowest was Massachusetts (31 percent).

• Some 53 percent nationwide re-ported their government contracts andgrants limit general administrative oroverhead costs, with Hawaii again thehighest (72 percent) but this time Ne-braska was lowest (33 percent).

• More than a quarter of organiza-tions (26 percent) reported that govern-ment contracts required them to sharecosts, led by North Carolina (48 percent)and Georgia (47 percent), comparedwith the fewest in Louisiana (5 percent)and Alaska (9 percent). NPT


Why attend a learning eventwith Monica Wofford?

• They’re FUN and informative!• Contagious Companies' online

courses focus on leadershipdevelopment topics.

• These bite-sized nuggets of trainingare PACKED with techniques youcan apply immediately.

• Monica Wofford is a leadership developmentexpert with more than 10 years of corporatemanagement experience and 24 years as aninstructor, trainer, and professional speaker.

• Monica is the author of books such as MakeDifficult People Disappear and ContagiousLeadership and has been featured on CNBC,NBC, Forbes, Bloomberg BusinessWeek,Monster.com, Entrepreneur.com and morefor her insights and expertise.

LIVE LEARNINGEVENTS YOUWON’T WANT

TO MISS!Presented by

Contagious CompaniesTM

& The NonProfit TimesTM

Nonprofits are not immune to workplace conflicts that hamper pro-ductivity and happiness. So how do nonprofit leaders handle ironingout the bad to keep the organization on track for doing good?

Monica Wofford, CSP & The NonProfit Times present a new interac-tive series for nonprofit leaders that brings hands-on developmentinstruction directly to you. Six courses in June focus on teachingleaders how to reduce their own stress, minimize stress from oth-ers, and eliminate conflict with others in their organizations.

Save your travel budget and build your skills, choosing the coursesthat meet your needs::

Contagious LeadershipTM: How to Transitionfrom Managing to Leading

90 Mins | 1.5 HRCI Credit | 6/3/14 | 1:30EST

There’s Nothing Constructive About It: GivingFeedback that Doesn’t Set You BackTM

1 Hour | 1 HRCI Credit | 6/3/14 | 3:30EST

Asking for the Help You NeedFrom Those You LeadTM


Make Difficult People DisappearTM: How toReduce Stress in Your Non-Profit

90 Mins | 1.5 HRCI Credit | 6/10/14 | 3:30EST

Micromanagement: How Not to Hoverand Let Them Do Their JobTM


How to Praise for Improved Performance1 Hour | 1 HRCI Credit | 6/12/14 | 3:30EST

WHAT IF YOU COULD MAKEDIFFICULT PEOPLE DISAPPEAR(without snapping your mission statement in half!)

Register today at www.contagiouscompanies.com/nptimesDiscounts available for FOUR or more course selections.

HRCICreditsfor eachcourse!

Visit our web page for course descriptions and special pricing offer.



N P T V O L U N T E E R M A N A G E M E N T S P E C I A L R E P O R T


BY MARK HRYWNA

The finishing touches on the re-source guide of Bicycle Indi-ana were completed despitethe three main parties being in

different parts of the country during thefinal week of the project.

The publication, which includes theannual report and resources for mem-bers regarding rides, retailers and clubs,was created with the help of a volunteergraphic designer in northern Indiana.Meanwhile, Program Manager Jess Hallhappened to be in Florida that week,while the organization’s executive direc-tor was at headquarters in Indianapolis,Ind.

“There are certain times where it’d begreat to be able to walk down the hall tothe designer’s office, look at the layoutspread on a table together,” Hall said, butit’s no deal-breaker. The guide was com-pleted via email and conference calls.

With everything including somekitchen sinks connected wirelessly tothe Internet these days, the web hasmade virtually everything, well, virtual.It’s not just employee telecommutingthat is made easier and more wide-spread by using the web. Nonprofits areusing the help of volunteers without see-ing them on a daily or even weekly basis.

There are many myths when it comesto “virtual volunteers,” according to JayneCravens. Namely, that they’re not real.That’s why she prefers to refer to them asonline volunteers, or volunteers who dothings online. Cravens recently co-au-thored The Last Virtual VolunteeringGuidebook: Fully Integrating OnlineService into Volunteer Involvement.

Some of the best examples of onlinevolunteers are at organizations that

don’t call the people they’re workingwith volunteers. “They call them ourteam, our contributors. They really seethem as an integral part of the organiza-tion,” she said.

“When a nonprofit has problems em-bracing the idea of virtual volunteering,you can always trace back to how that or-ganization views volunteers -- thatthey’re not very well integrated into pro-gram,” Cravens said. “Rather than com-munity investment, these people carryour program farther, look for more ways

to involve them, create assignments forthem. Organizations that really see vol-unteers in a very limited way are theones that have trouble with the conceptof virtual volunteering,” she said.

The 22-year-old Bicycle Indiana advo-cates for bicycle legislation and infrastruc-ture and provides education programs.Indiana is about a six-hour drive from

north to south and a dozen board mem-bers are spread throughout the state, Hallsaid. While they meet in person quarterlyand have a conference call monthly, com-mittees communicate as needed. “We’retrying to determine a better way to makethose calls a little more engaging and per-sonable,” she said, whether throughSkype or Google Hangout.

Cravens calls it a digital divide ofsorts, between nonprofits that wouldnever think that online volunteers aren’treal, or don’t take real time and commit-ment. “They don’t need convincing,” shesaid. “They get it. They see it as a re-source, as an opportunity. Others seethis as a burden, a liability, even as a neg-ative,” she said.

“There doesn’t seem to be an in be-

tween,” Cravens said, adding that non-profits often do it but don’t realizethey’re engaging online.

Those who track volunteering don’tseem to realize it, either. According tothe U.S. Bureau of Labor Statistics (BLS),volunteering is at a 10-year low, with therate of volunteering dropping to 25.4percent of the population last year. While

traditional volunteering might be down,the power of the Internet and wirelessnetworks could be propping up laggingnumbers. But online volunteering isn’tincluded in volunteering data compiledby the BLS, and entities like the Pew Cen-ter or Corporation for National andCommunity Service (CNCS) don’t trackonline volunteering.

Mainstream organizations that pro-mote volunteering, such as the Pew Cen-ter in Philadelphia, Pa., and Points ofLight Foundation in Atlanta, Ga., need tostart including questions about onlinevolunteering in their surveys, Cravenssaid. “Too often, they don’t include it atall or segregate it,” she said, and it’s im-portant for them to realize it’s not a radi-cal idea. The data don’t take into accountonline volunteers who build websitesand web pages or volunteer “hacka -thons” or “Wikipedia-thons.” Technol-ogy-related assignments are not gettingcounted and the data are exclusive of“some of the most exciting things in vol-unteering,” she said.

The Points of Light Foundation hasan Economic Impact of Volunteers Cal-culator on its website but has very fewonline categories. The worth of a volun-teer web designer, for example, is$30.05 per hour, according to the calcu-lator. The average value of a volunteerhour was $22.14 in 2012, according toIndependent Sector in Washington, D.C.

Cravens found a group of volunteerswho regularly update Wikipedia with sci-ence-based information, debunkinghomeopathic or psychic entries. They’reorganized, there’s a screening processand guidelines, peer-to-peer mentoring,and they reward people who do the

Unseen & UncountedVolunteer level calculations might soarif online/virtual volunteers were properly assessed

‘‘There are certaintimes where it’d begreat to be able towalk down the hall tothe designer’s office,look at the layoutspread on a tabletogether. --Jess Hall

NPT Special Report, page 18



most and best work. “I can’t believesomeone would say, ‘Oh, but they’re notvolunteers,’” she said.

Cravens said there also is confusionabout defining the term virtual or on-line. She relayed a story about askingnonprofit workers at the start of a recentworkshop how many were involved withonline volunteers and only a third an-swered in the affirmative. By the end,after presenting what online volunteersdo, almost twice as many people saidthey involve online volunteers.

“The reality is, organizations thatdon’t embrace some aspect of onlinevolunteering, they’re going to go away.It’d be like an organization saying, ‘Werefuse to use the phone to talk to volun-teers.’ You can’t say you’ll refuse to useonline tools to talk and engage with vol-unteers. Those days are limited; just asyou don’t stop having events because allyour volunteers can’t come to them,”she said. “All volunteers don’t haveemail, either. You have to cater to arange of ways your volunteers want tocommunicate. You have to do this to adegree. Sometimes that’s a motivator.”

Staff at Literacy Mid-South found anew way to engage and communicatewith volunteers. Some 250 tutors cannow download an app to access educa-tional and interactive resources forteaching and communication.

The Memphis, Tenn.-based nonprofitwas in search of a central and secure re-source to manage volunteer tutors. Man-agers thought about printing a manualbut an app made more sense, accordingto Kevin Dean, executive director. It wasmore cost-effective and fit with the orga-nization’s “progressive mindset,” he said.

The app costs the organization $700annually, including developer fees. Ap-proximately 150 volunteers have down-loaded it and use it to submit monthlyreports instead of filing through thewebsite. Literacy Mid-South also cansend push notifications about libraryclosings or changes in library hours atany of the 31 facilities where tutors andstudents meet.

Projects that have volunteers workingone-to-one, visiting with a senior citizenor a child in an afterschool reading or tu-toring program, generally had a goal ofmeeting weekly, according to SusanEllis, president and CEO of consultingfirm Energize, Inc., in Philadelphia, Pa.“The personal visit is still important butall those things changed dramatically”with the advent of the Internet andemail, Ellis said. “You don’t have to waitto see them. The literacy program getsmore out of it if you can communicatemore often. Online service strengthens

and enlarges what volunteers can dowithout asking them to travel,” she said.

There are examples of very creativeways to “virtually volunteer” that aren’tnecessarily centered entirely on technol-ogy. Ellis cited a California children’stheater’s online playwriting project, inwhich a class worked with children withdisabilities to collectively write a play. Itwas performed by other kids and thenbroadcast online. “The whole interactivepart, that was really exciting. It tookwhat would have been a good project toanother level,” she said.

“The thing is, there’s virtual volun-teering going on all around us which wedon’t think about,” she said, namelyWikipedia and the Oxford English Dic-tionary – both are all-volunteer efforts.

If a nonprofit’s staff is unaware of gen-eral principles of volunteer management,they are not ready to plunge into virtualvolunteering, according to Ellis. If youdo, it’s a matter of adapting to an online

environment. “The clearer you are indefining work that volunteers will do, themore successful you will be in recruitingand getting them,” she said. When youmove to online service, the concept ofclarity takes on even more importancebecause you’re not watching the person.

Big Brothers Big Sisters always had a

remote workforce. Ellis said the organi-zation meets, screens and trains volun-teers but then they work with kids awayfrom the office. “It’s nothing differentthan letting someone work online, ver-sus work in the field, but it feels differ-ent because you have this technologicalpiece to it. Organizations want volun-teers but might not want to accommo-date them, like give them a desk orsomething,” she said. “One of the thingsthat’s frustrating us, many organizations


Memphis, Tenn.-based Literacy Mid-South re-cently launched a mobile app that gives volun-teer tutors access to educational material andother resources. They also can submit monthlyreports via the app instead of through a website.

Kevin Dean


Fundraising on your mind?Increase the effectiveness and effi ciency of your organization’s development, fundraising and marketing functions with AccuFund CRM.

• Marketing & Constituent Communication• Comprehensive Reports & Dashboards• Major Donor & Gifts Management• Pledge Processing• Built on the Salesforce.com Platform

Our complete, integrated fundraising and accounting solutions are designed exclusively for nonprofi ts. Learn more at www.accufund.com/commadnpt or call 877-872-2228 ext. 272.



want virtual volunteers but might haveall kinds of rules of who gets to use anagency email address. There are somepolicy decisions that have to be made.”

At the Pulmonary Hypertension Associ-ation (PHA) virtual volunteering is in theorganization’s DNA. Or as Debbie Castroputs it, volunteers are the skeleton: “Wesort of put every piece together and movein the right direction with our board.”

PHA aims to provide resources of allkinds to its volunteers and supportgroups, said Castro, senior director ofvolunteer services. If left untreated, 50percent of those with pulmonary hyper-tension could die within two years, shesaid, so patient support and education iscritical and comes in the form of PHA’s245 support groups.

Three women sitting around akitchen table started PHA in 1990. It wasan all-volunteer organization for the first10 years of its existence, with peopleworking via phone, mail and then even-tually email, according to Castro. Thefirst part-time staff person, an executivedirector, was hired in 1999.

PHA has a staff of about 35 people inits Silver Spring, Md., headquarters, in-cluding a special events coordinator andconference planner. “In some capacity,everyone works with volunteers,” Castrosaid, whether it’s creating content for itswebsite or editing. “Volunteers guide us

in whatever work we do, they’re in-volved in creating materials and re-sources,” she said.

The organization has established a se-ries of resources and policy infrastruc-ture to streamline every aspect ofvolunteer management, whether it’s forthose interested in participating or over-seeing a support group to sponsoring agolf fundraiser or other special event.

PHA offers a training kit and provideshow-to resources for its volunteer sup-port groups, which meet monthly or bi-monthly. “They’re in front of patients wehope to serve and reach, make sure it’sthe right message. But, they’re also pa-tients and volunteers. We work withthem to make sure they know what the

expectations are, but also that we’re notreally imposing too many requirements,restrictions or expectations that are toohigh that they can’t manage. We’d losegroups if we ask them to do too much,”Castro said.

People used to call to get involved.Now prospective volunteers can com-plete necessary forms online, saving timefor both volunteers and management. In-stead of starting a conversation abouthow they found PHA and setting up aninitial meeting, prospective volunteerscan complete an online form that helpsreduce the conversation to more impor-tant relationship building, Castro said.

“The greatest value we can provide isnames of people in our database. With a


‘‘The thing is,there’s virtualvolunteeringgoing on allaround uswhich wedon’t thinkabout.--Susan Ellis

rare disease, you can’t just put up a signin the grocery store,” Castro said. PHAhelps to coordinate these group meet-ings, working with group leadersaround the country and pairing them upfor support.

Getting involved usually means learn-ing a little about the organization, con-necting with some people and pitchingthe idea of what they’d like to do, andworking to see what can be done, ac-cording to Castro. “We’re there for themwith the web pages we have, supportand email members. Our organization iseverywhere.”

Just as with in-person volunteers,PHA requires quarterly training and as-sessments of its volunteers. Castrostressed the importance of setting ex-pectations of services that are provided.

“The volunteer spirit is somethingwe’re very strongly mindful of. Our jobis to make sure anyone affected by PHcan and do as much or as little as theycan to contribute,” Castro said, estimat-ing that 99 percent of their volunteersare “virtual.”

“We create a structure and move italong, they inform us of what’s impor-tant,” she said. “They give us ideas, thenwe go to foundations and funders, spon-sors and pitch those ideas, telling them,this is what’s coming out of the commu-nity.” NPT

2014Nonprofit OrganizationsSalary & Benefits Report

What can our comprehensive Salary

and Benefits Report do for you?

• Avoid trouble with the IRS by being able to check

YES on your Form 990 regarding salaries set for

your chief executive and key employees using

comparability data for similar positions.

• Learn about 94 employee benefits — going way

beyond dental plans and summer hours.

• Get data by nonprofit field, budget size, number

of employees, and region throughout the U.S.

• Attract and retain the best employees by knowing

how to offer fair and competitive compensation.

Purchase your digital copy of the 2014 Nonprofit Organizations Salary and Benefits Report today!

Go online to www.thenonprofittimes.com/store

Published by The NonProfit Times in conjunction with Bluewater Nonprofit Solutions

The 2014 Nonprofit OrganizationsSalary & Benefits Report



Spring is in full bloom and thatmeans baseball, allergies, bar-becues and charity golf tourna-ments. While you might need to

watch for foul balls, the pollen reportand undercooked burgers, it’s the lastone -- golf tournaments -- with whichnon profits should be most concerned.

Kevin Kolenda, 56, of Norwalk,Conn., was sentenced in February inWashington state to 86 days in jail andhe was ordered to pay $15,000. Kolendasold hole-in-one insurance without a li-cense, and often failed to pay when agolfer made the shot.

According to a statement from Wash-ington state Insurance CommissionerMike Kreidler, Kolenda “has been inves-tigated or prosecuted for similarcharges” in Montana, Ohio, Georgia,California, New York, Hawaii, Alabama,Massachusetts, Florida, Connecticut andNorth Carolina. “I am delighted that Mr.Kolenda has finally been brought to jus-tice after years of thumbing his nose atstate regulators, golf tournaments andcharities, and golfers,” said Kreidler viathe statement.

“If (insurance is) regulated properly,they can’t do that,” said John Everhart,chairman and CEO of the National HoleIn One Association (NHIOA) in Richard-son, Texas. “I don’t mean to say everystate doesn’t regulate properly, but Mr.Kolenda has operated since 1995. Likemost people who are stealing from thepublic with a fountain pen, they’re try-ing to evade laws and regulation.”

A hole-in-one prize is usually used todraw more participants into a charitygolf tournament. It’s often a big-ticketitem, such as a luxury car. “The peoplewho want to be visible to this audiencewill do so by putting up a high-valueprize,” said Everhart. “Those prizes areoffered to add excitement and conversa-tion to the golf tournament. It increasesthe participation, which benefits thecharity through greater participation.”

Insurance on a hole-in-one prize issimply the transference of the risk of los-

Bogied PrizesA hole-in-one is rare, and possibly expensive

ing the prize from the tournament or-ganizers to an insurance company, ac-cording to Everhart. He said thecoverage price is based on the value ofthe prize, the number of participants,and, to a lesser extent, the difficulty ofmaking a hole in one on a particularhole. When someone such as Kolendafails to pay a claim, the tournament or-ganizer is on the hook for the prize.

Maria Clark, vice president of distin-guished partners at the American CancerSociety, oversees all of ACS’s golf events

nationwide. She said about half of ACStournaments have a hole-in-one prize,and it’s usually the prize sponsor thatpurchases the insurance. “If it’s a high-value prize, it’s a hard expense for thenonprofit to assume,” she said.

“The biggest challenge is finding aprize that’s exciting enough to draw par-ticipants,” said Clark. “We rely on volun-teers if they have connections oropportunities to work with a car dealer-ship or other businesses. It’s not a makeor break for a tournament.”

Clark said ACS often runs silent auc-tions as a way to engage participants.“We’ll get nice gifts donated from golfshops, such as clothing or golf clubs, orrestaurant coupons,” she said. “And, wealways try to provide an opportunity fora direct gift to the American Cancer Soci-ety. People feel really good about whatthey’re doing.”

Everhart does not believe that fraudis more common in hole-in-one insur-ance or more generally in charity golftournaments, but the potential is there.“Hole-in-one insurance has been ratherlax in state regulation,” he said. “It’struly an insurance product but becauseit’s not a large premium producer, a lotof regulators have been complacent inpursuing these few people acting im-properly.”

The best way to get reputable spe-cialty insurance, such as hole-in-one in-surance, is to ask your own agent, saidEverhart. Your insurance company caneither provide it directly or put you incontact with another agency that can.

Clark said ACS doesn’t spend muchtime thinking about legal issues andfraud, aside from purchasing relevant in-surance. “The legal ramifications are notwhat we focus on first,” said Clark. “Ourfirst focus is creating a golf tournamentin a community that can support it. Wework to find volunteers and sponsors tomake it happen, and we make sure wehave a safe environment for all partici-pants so we cover ourselves for anyrisks.” Clark said ACS usually has specialevent insurance and asks the venue andany vendors to provide proof of theirown insurance.

Charity golf tournaments are bigfundraisers for nonprofits. Golf wasused as a vehicle to drive $3.9 billion tocharity in 2011, according to a study bythe National Golf Association. Everhartestimates it will grow to $4 billion by2015. Golf tournaments raised approxi-mately $9.5 million for ACS last year, andthis year Clark is hoping it exceeds $11million. ACS runs some 85 golf tourna-

Kevin Kolenda playing golf in Connecticut

‘‘I am delightedthat Mr. Kolendahas finally beenbrought to justiceafter years ofthumbing his noseat state regulators,golf tournamentsand charities, andgolfers. --Mike Kreidler

PATRICK SULLIVANSPECIAL EVENTS


ments a year and the organization ismaking a push into new markets.

Most of the revenue, said Everhart, isfrom entry fees, but smart nonprofits canstretch the tournaments’ usefulness. “Alot of fundraisers are appreciative ofentry fee revenue, but the real money isin sponsorships,” said Everhart. “If theywant to buy hole-in-one insurance andthen sell a sponsorship, that’s an excel-lent source of getting other revenue. Ifyou go to all the trouble of running a golftournament, go out and ask a sponsor tosponsor holes for a valuable prize.”

It shouldn’t be difficult to secure

sponsors for your tournament. The peo-ple who play in golf tournaments areoften at an income level attractive tosponsors. “Golf has great demograph-ics,” said Everhart. “So many people inmanagement and mid-management arethe people who take off from work onMondays to participate in a local charityfundraiser at a country club. For thesehole-in-one prizes, these are (sponsors)who want to be visible to the profile whoparticipate.”

Sponsorships are extremely impor-tant for ACS golf tournaments, saidClark. When sponsors are covering alarge amount of setup costs, the revenuefrom entrance fees and auctions can goback to the ACS’s mission. Clark looks toher volunteers to help obtain sponsor-ships. “Volunteers are the backbone ofthe American Cancer Society,” she said.“They know the community, the playersand the people who have an interest infighting cancer. They know the compa-nies and firms that have an interest inour cause but also want to engage withthe people in the market.”

In addition to monetary benefits, char-ity tournaments can also help nonprofitsto build their email lists. Participants, bythe very fact they are participating, havesome affinity to your organization, andgenerally have the capacity to give. “Whenpeople register for a golf tournament, youget their email address, street address,maybe the name of their company,” saidEverhart. “The primary benefit (of a golftournament) is monetary, but an indirectbenefit is building that mailing list.”

Golf tournaments are a great way tobuild ACS’s email list and engage morepeople with the organization’s mission,said Clark. “Most people know who weare and have a good feeling about us,but we want to have deeper relation-ships,” she said. “It’s always good to ac-quire new donors, and golf tournamentsare very good for that. The more peoplewe can get to participate in golf events,the more people we can engage with theAmerican Cancer Society.” NPT


SPECIAL EVENTS GUIDE

Is Your Event Online?

Get started for FREE in 1 minute!

Accept donations or Sell tickets online.

Fast & Easy. Only takes a minute.

Perfect for any Fundraiser (o-thons, galas, auctions...)

One Stop Shop - The most competitive rates and no merchant account required.

Live customer support 7 days a week.

12 Years online and more than 100,000 events.

More than 100 templates available.

Comes with a Free Fundraising ebook including 50 fundraising ideas (value $29.95)

Go to Fundraising.Myevent.com to get started today or call us for more information

at 1-877-769-3836!

r EuoIs Y

nt Onevr E

?enil

d fetratt seG

n 1 mE iREr Fod f

e!tunin 1 m

ept donations or Sell tickcAc

ts online.eept donations or Sell tick

ts online.

chant acand no merop Shop - The most cOne St

auctions...)or any Fect ferfP

. Only tast & EasyF

ed.equirount rcchant actitivompeop Shop - The most c

-thons, gaiser (oundror any F

e.es a minutak. Only t

es ate rtitiv

alas, -thons, g

aising ideundr50 fComes with a F

e than 100 tMor

s online and morare12 Y

omer support 7 days a we custLiv

alue $29.95)as (vaising ideaising ebook including undree FrComes with a F

ailable.es avemplate than 100 t

e than 100,000 es online and mor

eekomer support 7 days a w

aising ebook including

ents. ve than 100,000 e

.eek

aising ideundr50 f

atar cy oadotingsairdnuFo o tG

alue $29.95)as (vaising ide

! 383669-7-771-8rofne iror mos fl ulao tmoc.tneveyM.ing

noitam

dteart st geo

‘‘Those prizes areoffered to addexcitement andconversation to thegolf tournament.It increases theparticipation, whichbenefits the charitythrough greaterparticipation. --John Everhart


Have you ever noticed thatvolunteer recruiters seem toend up in the same places?They speak to the same

community groups, place notices on thesame physical bulletin boards, post op-portunities to the same online sites.And, therefore, they are all talking to thesame audience of prospective recruits.

One reason for this multiplication ofvolunteer messages seen by a limitedpool of prospects is that recruiters tendto go where there are as many people aspossible. The reasoning looks fine onthe surface: Let’s inform a lot of folks atonce and, by the law of averages, at leasta few will be interested in us. Maybe.

We live in a world saturated with com-mercial messages, within which the pitchto volunteer can become simply morenoise. So the most effective volunteer re-cruiters assess their outreach strategiesby two key criteria: Will we be talking tothe right, targeted prospects? Will we getthis audience’s full attention?

The best way to ensure a “yes” an-swer to both questions is by correctlymatching each available volunteer op-portunity to organizations and individu-als with some connection to the centralneed being addressed. This means find-ing the “points of juncture” that lead tonew contacts.

A REAL EXAMPLE A Midwestern hospital with a large

campus planned to install an exercisetrail, the kind with different pieces ofapparatus at regular intervals, with in-structions for how to use them. Theywanted to open this trail to the publicas a community wellness project anddecided to recruit volunteers to pro-mote it and monitor it. It became evi-dent that they could not simply askcurrent hospital volunteers to do thisnew work, as many of them were notinterested in or able to do the neededactivities.

Instead, the volunteer resources man-ager convened a brainstorming team andthey began to think outside their usualvolunteer recruitment box. They beganwith the characteristics of the new exer-cise trail itself. What would its successmean to those who would use it?

Among the themes identified were:Physical fitness; wellness; the outdoors;fun; running; walking; weight loss; week-end activities; lunchtime activities; look-ing cute in exercise outfits; recoveringfrom illness; and, so on. It was an inter-esting variety of serious and recreationalconcepts.

Then they looked at each identifiedtheme in turn, asking: Who might al-ready share an interest in this same

The HuntedRecruit volunteers at points of juncture

thing? They were trying to find points ofjuncture – the one area where the inter-ests of the hospital (via the exercisetrail) connected to the communitysource, even if they had absolutely noth-ing else in common. You can see howthis led to a very long list of possibili-ties. For example:• Physical fitness: All the gyms and ex-ercise centers in the community, andtheir members; amateur sports leagues,both for children and adults; stores thatsell exercise equipment; stores that sellathletic wear, especially shoes; physicaltherapists; chiropractors; physical edu-cation teachers and coaches; and, healthfood stores.• Lunchtime activities: Their thinkingwas that anyone in proximity to the trailduring the day might welcome thechance to exercise easily during their

lunch period. So they used a map toconsider what physical places of workwere within 1-2 miles of the trail – anytype of work, but especially officeswhere people were most likely to enjoyan outdoor break during the day. The va-riety of nearby businesses was quite im-pressive. Very few of them already had adirect link to the hospital other than ge-ographic location.

By the time the brainstorming wasdone, each point-of-juncture cluster re-vealed a number of potential recruit-ment strategies. Whether the approachwas going to be direct contact by phone,mail or e-mail, or some sort of presenta-tion, the opening line was always goingto be a variation of: We are building thisexercise trail and know that it meshes sowell with your work/interests that youwill want to be part of it!

Not only was volunteer recruitmentin this way fun, but it also turned up a

number of unexpected offers of help be-yond attracting individual volunteers: fi-nancial donations, in-kind services suchas sign painting, and additional promo-tion of the trail.

STRATEGIC CONNECTIONSYour work may not immediately sug-

gest the kinds of potential partners asthe exercise trail did. But every organiza-tion intersects with many different com-munity resources, if you take the time toidentify them. The accompanying gridmight help: Of course you can slice yourorganizational pie into as many pieces asneeded, adding special projects or one-time events.

Notice the three columns across. Notenough nonprofits look to other non-profits as potential sources of volun-teers, but they should. The same is true

for public agencies. All sorts of large andsmall for-profit companies can be invitedto join in, not just the Fortune 500 oneswith formal workplace volunteer pro-grams. Sole practitioners and individu-als, from hobbyists to retirees, are poolsof prospective volunteers, too, as are themyriad service clubs, all-volunteer asso-ciations, and neighborhood groups.

If you ask, “who is doing what we doin our community?” there really shouldnot be many other organizations identi-fied! This grid allows you to pinpointmuch more specifically “who is alreadycommitted to this particular aspect ofour work?”

Let’s say you are with a homelessshelter that provides temporary housingfor single mothers and their childrenunder age 12. You also run several pro-grams, including a service that helps thewomen find part-time jobs. Here’s a startto filling in your grid:

• Major issue: Family welfare (thoughyou could also do it for homelessness)

• Nonprofits/government: Public assis-tance agencies, public schools, pedi-atric health clinics, family counselingagencies, domestic violence programs

• Businesses: Children’s clothing stores,children’s book publishers, low-incomerental properties

• Individuals: Pediatricians, elementaryschool teachers, truant officers, clergy,women’s support groups

• Service: Finding part-time employ-ment (You would create a list for eachof the services offered, because the re-sponses will be different)

• Nonprofits/government: State em-ployment centers, “dress for success”clothing services

• Businesses: Businesses with openingsfor part-time help, stores with afford-able clothing for women in business,job placement agencies

• Individuals: Career coaches, hair-dressers, makeup specialists

• Population: Do a list for women andfor children

• Geography: List any organization andbusiness in close proximity to your loca-tion, no matter what they do. The pointof juncture with them is that you areneighbors, making your issue somethingthey cannot avoid or with which theycan easily become involved.You have used the grid properly if all

boxes show different connection points.

ACTING ON JUNCTURE POINTSAs with any other brainstorming,

once you have your long lists, it’s time toedit and prioritize them.

Do you already have a successful col-laboration going with one type of agencyor business that could be duplicatedwith a few more, perhaps in differentareas? Have you never before considereda type of agency or business, but feel theconnection is so logical you should findthe closest one and give it a try?

Which ideas do not seem workable?Of course some will be more appropriatethan others, but do not dismiss aprospective source of volunteers simplybecause you have never tried to reachout to this group before. Rely on yourpoint of juncture to give you an excellentconversation starter: “It seems to us thatwe have this in common. Let’s talk.” NPT

Susan J. Ellis is president of Energize, aPhiladelphia-based training, publishingand consulting firm specializing in vol-unteerism and Everyone Ready® onlinevolunteer management training programwww.everyoneready.info. Her email [email protected]. Her Web site iswww.energizeinc.com


SUSAN J. ELLISON VOLUNTEERS

OurOrganization

Major issue orneed we address:

Serviceswe offer:

Populationwe serve

Geographicarea we serve

Nonprofit/governmentagencies withsame focus

Individuals andother resourceswith same focus

Businesseswith same focus



Aparent looks away from acrowded swimming pool to an-swer a phone call; a drivermakes a split-second decision to

try to make it through a yellow light with asudden burst of speed. We recoil when weread these scenarios because we knowonly too well that tragedy can result.

What happens when these incidentsinvolve volunteers for your nonprofit?Your organization might be liable for theresulting injury.

Volunteers are the lifeblood of manynonprofits. But the actions of a volun-teer can also create devastating liabilityfor the organizations in a personal injuryclaim. While the law provides some re-lief for the negligent acts of volunteers,these laws vary widely from state to stateand are often misunderstood. Don’tmake the mistake of assuming that yournonprofit will be exempt from liabilitybecause its purposes are charitable, orbecause the person responsible for the

harm is a volunteer.A nonprofit will not necessarily be

able to avoid liability for the negligentacts of its volunteers simply becausethey aren’t being paid. A volunteermight “step into the shoes” of an em-ployee even where there is no actual em-ployment relationship.

In general, the most important factorwill be the extent of control that thenonprofit exerted over the volunteer’sactivity. The more dangerous the activity,the more important it is that the non-profit has exercised the appropriatecare. A lack of training and oversight is acommon theme in these cases.

For example, a California nonprofitwas found liable for the acts of its volun-teer scuba diving instructor after a stu-dent drowned. Nonprofit managersknew the volunteer was not a certifiedscuba instructor, and the court pointedout that activities that are extra haz-ardous or inherently dangerous may

subject the nonprofit to liability. A patchwork of laws offers limited im-

munity from personal liability for thevolunteers, often with special require-ments or exceptions. At the federal level,the Volunteer Protection Act of 1997

(the Act) offers qualified immunity forvolunteers for acts of ordinary negli-gence that were committed while volun-teering for a qualified nonprofit orgovernmental organization. Under the

Risky BusinessThere’s liability for the actsof your volunteers

SIOBHAN KELLEY, JDINSURANCE

®

a W. R. Berkley Company

‘‘The more dangerousthe activity, the moreimportant it is thatthe nonprofit hasexercised theappropriate care.

Insurance, page 24



Act, a volunteer for a qualified nonprofitgenerally will not be personally liable forharm caused if:

1. They acted within the scope oftheir responsibilities;

2. They were properly licensed orcertified (if required under the circum-stances);

3. The harm was not caused by negli-gence and not willful or reckless miscon-

duct; and,4. The harm was not caused by the

volunteer operating a motor vehicle,vessel, aircraft, or other vehicle forwhich the owner or operator is requiredto possess an operator’s license or main-tain insurance.

The Act was intended to encourageindividuals to volunteer by reducingtheir personal liability, but will not dothe same for the nonprofit.

Unfortunately, nonprofit managersoften mistakenly believe that these so-called Good Samaritan laws protect theorganization. Nonprofits will not be ableto avoid liability under state volunteerprotection laws as they only protect thevolunteer from personal liability. Lawsprotecting nonprofit organizations,called “charitable immunity” laws, havefallen out of favor. Courts have generallyagreed that individuals’ right to recover

for their injuries should not be limitedbecause the institution responsible forthe harm is a charity.

In a 1981 case, the U.S. Supreme Courtfound a nonprofit camp liable for the in-juries to a camper who was injured by arock thrown by another camper. Thecourt called charitable immunity an “anti-quated rule,” finding that “…a charitableinstitution is subject to liability for its tor-tuous conduct the same as any other per-son or corporation.” Although a minorityof states offer some form of charitable im-munity protection it is the nonprofit, notthe volunteer, who usually ends up liablefor harm caused by a volunteer.

While volunteer protection or chari-table immunity may provide a limiteddefense for certain claims, nonprofitmanagers still must consider the costs ofdefending a lawsuit. Without adequateprotection, in certain cases, a non-profit’s officers and directors could bepersonally responsible for a judgmentagainst the nonprofit. One of the mostimportant ways to protect the nonprofitis with appropriate insurance coverage,including general liability and directorsand officers coverage, that names volun-teers as additional insureds.

A Directors and Officers policy shouldnot be considered a replacement for otherimportant forms of insurance such as anautomobile, property and general liability.Ask whether a policy will cover acts of vol-unteers and in what circumstances. Forexample, most polices will not cover in-tentional acts. Some policies will providean attorney, and others will only reim-burse the legal costs after the conclusionof the case. Make sure you understand theexclusions, and what other coverage mayexist to help cover these gaps.

Of course, the most effective way tomanage the risk of being sued is to re-duce the risk of harm in the first place.Consider that your volunteers might ex-pose the nonprofit to the same risks asemployees, and treat them accordingly.Best practices include a comprehensiverisk management program, volunteertraining, informed safety proceduresand a robust procedure for reportingconcerns. Some insurance companiesoffer special discounts or programsavailable to help nonprofits reduce risk.

While there is no silver bullet thateliminates all volunteer risk, you canprotect your nonprofit and its boardmembers by obtaining the appropriateinsurance coverage and following bestrisk management practices. NPT

Siobhan Kelley is a labor employmentrisk manager with the Nonprofits Insur-ance Alliance Group. She previouslyserved as in-house counsel for a largetechnology corporation. Her under-graduate degree is from the Universityof California San Diego and her law de-gree is from Santa Clara UniversitySchool of Law. Kelley is a member of theCalifornia State Bar.

Grant Thornton refers to Grant Thornton LLP, the U.S. member fi rm of Grant Thornton International Ltd.

At Grant Thornton, our not‐for ‐profi t professionals work extensively with organizations just like yours. That focus gives them deep experience to help their clients grow in their ability to serve the greater good. See how they do it at GrantThornton.com/nfp.

Instinct says: Choose a master of one.

Reason says: Hire a jack of all trades.

INSURANCEContinued from page 23



Online protesters are clicking away,furiously attacking a Federal Com -munications Commission (FCC)proposal last month that would

allow Internet service providers (ISPs) to chargewebsites for faster service, a concept known aspaid priority or a so-called Internet fast lane. Non-profits around the ’net reacted with outrage anddismay.

“Creating a fast lane on the web serving afew commercial interests would fundamentallyhurt nonprofits by inhibiting the open innovation,reversing the democratized access to informa-tion, and creating real barriers for engaging com-munities and supporters,” said Amy SampleWard, CEO of NTEN (Nonprofit Technology Enter-prise Network) in Portland, Ore. “An open Webhas meant nonprofits of all sizes have had theopportunity to use the same tools and reach peo-ple all over the world, regardless of their organi-zational size or budget. This needs to continue.”

The proposal was approved by a three-to-twovote. FCC Chairman Tom Wheeler, a Democrat,wrote in a statement on the day of the ruling,“Today we take another step in what has been adecade-long effort to preserve and protect theOpen Internet. Unfortunately, those previous ef-forts were blocked twice by court challenges bythose who sell Internet connections to con-sumers. Today this agency moves to surmountthat opposition and to stand up for consumersand the Open Internet.”

Joining Wheeler in voting yes were fellow De-mocrats Mignon Clyburn and Jessica Rosenwor-cel. The no votes were cast by Republicancommissioners Ajit Pai and Michael O’Rielly. “AsI’ve said before, the premise for imposing netneutrality is fundamentally flawed and rests on afaulty foundation of make-believe statutory au-thority,” wrote O’Rielly in a dissenting statement.“I have serious concerns that this ill-advised itemwill create damaging uncertainty and head theCommission down a slippery slope of regulation.”

Despite voting yes, Wheeler wrote: “The poten-tial for there to be some kind of ‘fast lane’ availableto only a few has many people concerned. Person-ally, I don’t like the idea that the Internet could be-come divided into ‘haves’ and ‘Have nots.’ I willwork to see that does not happen.”

Josh Levy, campaign director for Free Press,with offices in Washington, D.C., and Florence,Mass., said Wheeler’s words don’t match up tothe proposal. “He claims to want to protect theopen Internet, and whether or not that’s true --and I think we should take him on his word thathe does want to -- he’s just not going forwardwith a proposal that would do what he says hewants,” said Levy. “He’s trying to appease cor-porate interests in a way that’s going to hurtpublic interests.”

Free Press and about a dozen other organi-zations held a rally outside the FCC headquarters

in Washington, D.C., on the day of the vote. Ac-cording to Levy, attendance was “a couple hun-dred strong. They came from all walks of life andwere super fired up.”

The ruling is not final, but rather opens afour-month public comment period, beginningimmediately. The FCC will then vote on a newproposal based on those comments. Individualscan email comments to [email protected]

A matter of hours after the decision was an-nounced and before the full proposal was re-leased, the FCC had more than 20,000comments. “I want to register my opposition toany proposal that allows specific ISPs or contentproviders to selectively adjust Internet band-width or throughput, based on any criteria,”wrote one commenter. “ISPs should be regulatedas Common Carriers and required to provide anequal level of service to all.”

The proposal also includes rules on:Transparency: Telling consumers how ISPs

manage Internet traffic;Censorship: Allowing all legal websites and

not slowing any website down; and, Complaints: A “multi-faceted process to

promptly resolve and head off disputes, includ-ing an ombudsperson to act as a watchdog onbehalf of consumers and start-ups and smallbusinesses.”

A large part of the issue is how broadband isclassified, as a Title I telecommunications serv-ice under the 1996 Telecommunications Act. Op-ponents of the proposal would like to seebroadband reclassified as a Title II broadcastservice. According to Levy, ISPs “would have theobligation under Title II to connect users to serv-ices without discrimination and they wouldn’t beable to block or degrade any of that communica-tion.” He said that because of the architecture ofthe Internet, “When you create a fast lane,everybody else gets slowed down.”

Michael Copps, special adviser to Washington,D.C., nonprofit Common Cause’s Media andDemocracy Reform Initiative, said via a statement:“This is an alarming day for anyone who treas-ures a free and open Internet -- which should beall of us. The FCC could have moved decisively toguarantee that the Internet remains an open plat-form for free expression and the exchange ofdemocracy-sustaining communications. Instead,the Commission again left broadband users with-out the protections they deserve. Let’s be clear:Any proposal to allow fast lanes for the few is em-phatically not net neutrality.”

Sample Ward encouraged nonprofit sectorleaders to demand the FCC preserve net neutral-ity by sending an email through the ElectronicFrontier Foundation’s Dear FCC initiative, dear-fcc.org. “I strongly encourage individuals to addtheir voices to the public response to the FCC,and suggest nonprofit staff tell the story not only

Taking SidesOn ’Net NeutralityCourts and agencies taking onspeed and privacy issues

FREE WEBINAR SERIES

The old days of buying software “off-the-shelf” are outdated and behind us.Today, it’s about the Cloud. For example, over 25,000 nonprofits now useSalesforce to power their missions. Learn the three secrets for:

• Increasing donations and bringing in more dollars• Automating your database• Saving money on the cloud

Join Tompkins Spann of KELL Partners, a top Salesforce.com consulting firmfor nonprofits, and Steve Heye, Manager of Technology at The Cara Program,for a free presentation and learn the secrets, simple rules and recommenda-tions for success on the cloud, including:

SECRET 1 Focus on the BasicsWhy is Salesforce better for nonprofits? Learn how to leave the dark ages ofdisconnected silos of software and high cost.

SECRET 2 Connect Across All Fundraising Utilities (Connectivity)How to use Salesforce to streamline all the development tools you need for asingle, unified view of your organization’s activities.

SECRET 3 Stop Wasting Money ... Demand Return on InvestmentHow to select the right solution; what to look for in options; and how toevaluate custom software tools that are available through Salesforce.

SPEAKERSTompkins “Tommy” SpannVice-PresidentKELL Partners

Steve HeyeManager of TechnologyThe Cara Program

Thursday, June 5, at 1:00pm ESTRegister now at

https://cc.readytalk.com/r/53p8om7r7nng&eom

Donor Managementon Salesforce:

The Three Secretsfor Success!

ZACH HALPER AND PATRICK SULLIVANTECHNOLOGY

Technology, page 26



of their personal story but also the importance ofan open Internet for their mission and programs,and for their communities,” she said.

Berin Szoka and Geoffrey Manne, CEO andsenior fellow, respectively, at the Washington,D.C.-based TechFreedom, wrote in a statementthat the FCC is overstepping its authority, andthat the proposed rules should be left to legisla-tors to decide. “(T)he Commission is trying to dowhat must ultimately be done by Congress: ef-fectively rewrite the 1996 TelecommunicationsAct, whose siloed approach was based on theassumptions of the pre-Internet era,” wroteSzoka and Manne in the statement. “The soonerthe FCC calls on Congress to update the Act, thebetter. A political consensus on this issue is pos-sible -- just not at the FCC, where policy ques-tions are inevitably intertwined with theintractable problem of the FCC’s authority in aworld that has changed completely since 1996.”

The nonprofit sector will be unable to competewith for-profit websites if paid priority is imple-mented, said Karen Coppock, vice president ofstrategy and impact at TechSoup Global in SanFrancisco, Calif. “Net neutrality principles supportthe free flow of resources between mission-driven organizations in the social sector throughthe critical infrastructure of the Internet,” she said.“A ‘fast lane’ means there is also a ‘slow lane,’and social sector organizations will inevitably beconsigned there, with consequences for their

mission achievement and with negative impact onthe millions who depend on social sector organi-zations as a lifeline and for other vital services.”

The U.S. Court of Appeals in Washington,D.C., paved the way for an Internet fast lane thispast January when it ruled against the FCC andsaid websites could make deals with ISPs forfaster service. The FCC shifted its stance on thefast lane in April when Wheeler announced thenotice of proposed rule making.

LINKING DECISIONMeanwhile across the Atlantic Ocean, a Eu-

ropean Union court ruled that individuals havethe right to have links about them forgotten, or“scrubbed.” The decision, from the EuropeanCourt of Justice in Luxembourg, came againstsearch engine Google. The impact on interna-tional nonprofits is still up for debate.

“An internet search engine operator is re-sponsible for the processing that it carries out ofpersonal data which appear on web pages pub-

lished by third parties,” according to a releasefrom the court. “Thus, if, following a search madeon the basis of a person’s name, the list of resultsdisplays a link to a web page which contains in-formation on the person in question, that datasubject may approach the operator directly and,where the operator does not grant his request,bring the matter before the competent authoritiesin order to obtain, under certain conditions, theremoval of that link from the list of results.”

The court ruled that the search engine oper-ator is, “in certain circumstances, obliged to re-move links to web pages that are published bythird parties and contain information relating to aperson from the list of results displayed follow-ing a search made on the basis of that person’sname,” even if the “the publication in itself onthose pages is lawful.”

It is unclear whether the decision, which isbased on a 1995 data protection directive, will af-fect requests for deletion of donor histories in non-profits’ databases. “Right now we don’t know

precisely what the law says,” said Fielding Yost,president and founder of database software pro-ducer Saturn Corporation in Cheverly, Md. “We justknow that Google lost. We’ve never been facedwhere someone would say remove my donationhistory, unless they sent in a delete from the char-ity. I don’t think we’re in the same application thatGoogle is. Maybe it’ll broaden and extend that.”

Yost said that at the moment, the law doesnot appear to require charities to scrub their do-nation history as Google must scrub links. Yostadded that charities generally do comply with re-quests to remove a donor from their databases,though they are not required by law to do so.

Steven Shattuck, vice president for market-ing at Bloomerang in Indianapolis, believes thelaw will require nonprofits to scrub donorrecords. “Probably in Europe, folks would havethe right to be scrubbed,” he said. “It is the elec-tronic identification of a person’s personalrecords. I think it sets a precedent, for sure.”

Shattuck said even if the ruling does apply todonor databases, nonprofits shouldn’t have toomuch of a problem if they’ve been following bestpractices. “We always tell folks, always give theoption to opt out, always give the option to do-nate anonymously, always honor any request todelete records,” he said. “The big one for this is,if you’re going to acknowledge someone publi-cally (on a website or a social media post), makesure you have permission to do so. If you do allthose things, this shouldn’t be an issue.” NPT

Register Now!bridgeconf.org

July 9–11, 2014Gaylord National Hotel and Conference Center National Harbor, MD (Adjacent to Washington, DC)

The 9th Annual Bridge to Integrated Marketing & Fundraising ConferencePRODUCED BY

The Power to Succeed

Premier Sponsors:

Limited Space Remaining!2013 Bridge Conference was Sold Out.

Proud Program Partners of the 9th Annual Bridge Conference are:


TECHNOLOGY

‘‘We always tell folks,always give the optionto opt out, always givethe option to donateanonymously, alwayshonor any request todelete records. --Steven Shattuck



RESOURCE MARKETPLACETHENONPROFITTIMES

TM

COMPUTERIZED FUND ACCOUNTINGAUCTION SERVICES

BACKGROUND SCREENERS

COMPUTER SOFTWARE

CRESCENDO INTERACTIVE, INC......................................800-858-9154110 Camino Ruiz, Camarillo, CA 93012

CHARITABLE STATE REGISTRATION

COPILEVITZ & CANTER........................................................816-472-9000310 W. 20th St., Ste. 300, Kansas City, MO. [email protected]

Mitch-Stuart, Inc., leading provider of no-risk auction travel pkgs.www.mitchstuart.com 800-574-9991 over $1billion raised for charities.

COMPUTERIZED FUND ACCOUNTING

Nonprofit Accounting SolutionsAvailable on-premise or cloud877-872-2228 [email protected] www.accufund.com/npt13

COMPUTER SOFTWARE / PLANNED GIVING


AUCTION SERVICES — COMPUTERIZED FUND ACCOUNTING

The Future is Bright

Contact one of our Integrated Marketing Specialists to learn how you can increase your online presence and keep your future bright.

800.858.9154CrescendoInteractive.com

For Planned Giving.

NPT ADVERTISER INDEX________________________________________1 Abila abila.com/TheClimb

18 AccuFund 877-872-2228 x272 www.accufund.com/commadnpt

11 AICPA 888-777-7077 cpa2biz.com/NOT

32 Blackbaud blackbaud.com/drNPT

26 Bridge Conference bridgeconf.org

25 Click&Pledge Webinar https://cc.readytalk.com/r/53p8om7r7nng&eom

7 CohnReznick cohnreznick.com/nfp

14 DMA NY Nonprofit Conference http://ny.dmanf.org/

11 DonorPerfect 800-220-8111 donorperfect.com/simple

9 FANO www.fano.org

10 FRDNY www.frdny.org

10 Grantsmanship Center 800-421-9512 tgci.com

24 Grant Thornton GrantThornton.com/nfp

13 Independent Sector ISimagines2014.com

2 Infogroup List Services 402-836-5692 www.infogrouplistservices.com

15 Monica Wofford Leadership Series www.contagiouscompanies.com/nptimes

21 My Event 877-769-3836 Fundraising.Myevent.com

14 NCDC Conference ncdcconference.org

27 Nonprofit Executive Summit 202-785-3891 www.nonprofitrisk.org

16 Philadelphia Insurance 885-411-0797 PHLY.com/socialservice

23 Riverport Insurance www.riverportinsurance.com

5 RobbinsKersten Direct 508-474-2793 robbinskersten.com

9 Univenture 800-992-8262 try.univenture.com/np14

To place an ad in this section, contact Mary Ford at

973-401-0202 x206 or [email protected]




TM

COMPUTERIZED FUNDRAISING SYSTEMS — FUNDRAISING / FULL SERVICE CONSULTING

DIRECT MAIL CONSULTING

· strategic direct marketing· flexible database solution· multi-year, cutting-edge analytics· multi-channel campaigns· award-winning creative· integrated, predictive models

call Jack Doyle @ 800.370.7500

ea

ed

,@J

e· s raategic di eerrriiddcciiggeettaarrrrtttss·a· flexible da aattttaaddeellbbiixxeellff··c· mu tti-yea ,, c,rraey-itlllum·e· mu tti-channennnnaahhcciittlllluumm·n· awa dd-winnininniw-darraawa·p· i tteg aated, p,detarrrgetnni·

Doylecall Jack DoyleJack @call @@

gn

se

@@

gect ma kketingnniitteekkrrraammttcceenabase solutionooiittuulloosseessaabbaa

scu tting-edge analyticscitylanaegde-gnittttttttucsel campaignsnnggiiaappmmaaccllee

eng creativea vitaeercgnsp eedictive modelsledomevitciderrp

@@ 8 37 75800800..370.7500370.7500

A Perfect Fit

Picture Perfect

Priced to fit any size budget

All Your Constituent Information Perfectly Organized

Visit www.donorperfect.com/NPTor call 800-848-3279

Picture PerfectPulls together all your

constituent data into one place.

e budgety sizo fit aned ticrP

COMPUTERIZED FUNDRAISING SYSTEMS COMPUTERIZED FUNDRAISING SYSTEMS

800-676-5831 | www.telosa.com | [email protected]

Cloud-Based Fundraising Software

It’s Your Mission

PORTFOLIOTM BY AMERGENT....www.amergent.com.....800-370-7500Providing Powerful CRM Fundraising Software to Leading Nonprofits for 30 Years!

To place an ad in this section,

contact Mary Ford at


ALLEGIANCE SOFTWARE....................................................800-858-7654www.allegiancesoftware.com

THENONPROFITTIMESSUBSCRIPTION SERVICES

Call 800-535-8207Email: [email protected]

Additional information can be found 24/7 at Subscription Services Online: www.nptimes.com

• Have You Moved? • Changed Positions?• Got A Question? • Need Help?

FUNDRAISING

SCHULTZ & WILLIAMS........www.schultzwilliams.com.......215-625-9955Development, Direct, Staff Solutions, Planning, Marketing.

FUNDRAISING / FULL SERVICE CONSULTING

DOCUMENT/CONTENT MANAGEMENT WITH WORKFLOW

ENTERPRISE DOCUMENT/CONTENT MANAGEMENT WITHWORKFLOW & COMPLIANCE 866-367-3467


JUNE 1, 2014 THE NONPROFIT TIMES www.thenonprofittimes.com30


TM

FUNDRAISING LISTS — VOLUNTEER MANAGEMENT

GRANT WRITING

eri

aOn T. eimOn T

pexndaleabegdlenowKmtirece dhtetmeo tdesturt

.ynittyuommc

tsiLdnaegarekorBtsiLDnalPliiaMnoiitisiuqcAkcaB/g/g/ninnalPcigeetarrtS k--kMbtDitC

s

.tegOn Bud. trgea

lnaosiesofferpstliedcene nonhf ts odenel aim - ofitrp

tnemeganaMnoiitatnemelpmI/t/t/nempoleveD

- sisylanAngiiapmaCdnEildM

y

MesabbattaDeviitarepooCaP/secivreSgnititiirwyywpoC

wehttMaKris248)014(:leT - 0711

eryam.www

g

gniledoMeuqiitirCegakakaca

eltltlototosirAAr~

sw tneidresP248)014(x:aF - 5811

mocr.ngeggrae

FUNDRAISING LISTS HISPANIC MARKETINGINSURANCE

INTERNET PRODUCTS/SERVICES

CRESCENDO INTERACTIVE, INC......................................800-858-9154110 Camino Ruiz, Camarillo, CA 93012

PG CALC ....................................................................................888-497-4970129 Mount Auburn St, Cambridge, MA 02138

FUNDRAISING / MAJOR GIFTS

MAJORDONORS.COM...........................................................888-820-0620Everything you need to build a strong major gift revenue stream.

FUNDRAISING SOFTWARE

DoJiggy™ provides nonprofits with affordable, easy-to-use onlinefundraising software & management solutions for fundraising eventsand donation management. www.dojiggy.com. 888-436-1999.

LEGAL SERVICES

HandsOn Connect is a best in class volunteer management solutionfrom the experts at Points of Light and HandsOn Network. It’s built onSalesforce.com and manages, tracks, and reports on people, programs,and projects in real time. Find out more and get a free report on bestpractices at www.HandsOnConnect.org/nptrda

VOLUNTEER MANAGEMENT

LIST OWNERS, MANAGERS, BROKERS

UNEMPLOYMENT

MAIL MONITORING

The best thing about teamwork is that our team works.At Philadelphia Insurance Companies, we’ve raised money and pledged time for Ronald McDonald House Charities, the American Red Cross, The Children’s Hospital of Philadelphia, Face to Face, and the Challenged Athletes Foundation. We’ve shown these organizations and the nonprofits we insure every day that teamwork works. Because our team works. Learn more. Call 855.411.0797 or visit PHLY.com/socialservice.

MANAGEMENT CONSULTING

THENONPROFITTIMES.COM/JOBS

Get Actual In-Home Delivery Data!Mailstream Intelligence Benefits:

Pinpoints Mail Delivery Inconsistencies Provides Real-Time Trend Analysis Delivers Actionable Data to Investigate USPS Issues

Track your mailing with the Intelligent Mail Barcode and Strategic Decoys to confirm Actual In-Home deliveryGo to www.usmonitor.com/npt or call 845-875-6305

LISTEN UP ESPAÑOL ...........................................................207-774-1425A call center and online marketer specializing solely in the U.S. Hispanic mar-ket and helping major, global nonprofits. Please contact Randall Anderson.www.listenupespanol.com....................Email: [email protected]

Your Ad Here973-401-0202 x206

PERLMAN & PERLMAN, LLP.............................................212-889-057541 Madison Avenue, Suite 4000, New York, NY 10010Fax: 212-743-8120..........................................www.perlmanandperlman.com

To place an ad in this section,contact Mary Ford at



Director of DevelopmentANTI-DEFAMATION LEAGUE

Join the nation’s premier human relations/civil rights organiza-tion. We have a mission to fight anti-Semitism and hate, and tosecure justice and fair treatment for all. ADL is looking for tal-ented, passionate people who want to make a differencetoday…and tomorrow!

PRIMARY FUNCTIONBased in San Francisco and serving Northern California, Utahand Hawaii, the Director of Development plans, implements andevaluates regional fundraising programs to successfully meetannual, designated and endowment campaign goals establishedunder the direction of ADL’s Regional Director and approved bythe National Development Office. In fulfillment of these goals theDirector of Development identifies and cultivates donors and ex-ecutes targeted solicitation strategies to increase the donorbase and close gifts. The Director of Development also workswith staff, lay leaders and honorees to design and oversee theimplementation of fundraising events and special programs tar-geting select populations and in support of ADL initiatives.

ESSENTIAL DUTIES AND RESPONSIBILITIES• Plan, organize and manage the annual fundraising campaign

in collaboration with the Regional Director and National Devel-opment Office. Write the regional Development Plan and cre-ate the Development budget. Monitor effectiveness of regionalfundraising efforts and evaluate programs.

• Organize and implement fundraising events, including platedinners, parlor meetings and special events.

• Identify, cultivate, build and solidify relationships with new andestablished contributors. Analyze historic patterns of giving anddevelop strategies to encourage new gifts and identify newsources of revenue, as well as increase current contributions.Directly solicit and close gifts from major prospects and main-tain relationships through mail, phone or in-person contacts.Oversee direct mail campaigns. Solicit grants as appropriate.

• Oversee the administrative support for regional developmentincluding ensuring that donor acknowledgements are com-pleted and appropriate records, prospect lists and mailing listsare maintained.

• Recruit lay leaders for development committee and providementoring and staff support.

• Write speeches, press releases and promotional materials forfundraising events. Initiate and respond to media contacts topromote an awareness of ADL fundraising events and honorees.

• Participate in programmatic events to define and enhancefundraising potential.

• Cultivate and maintain community relationships and commu-nity outreach. Identify potential speakers for events.

• Contribute to regional management by participating in overallregional office planning and goal setting.

• Maintain and expand corporate partnership program based ondirect solicitation.

• Participate in development-related functions such as market-ing, design/preparation of print materials, event logistics, andpost-event follow up.

QUALIFICATIONS• Bachelor’s degree, plus additional related college courses or

professional training.• Five to seven years of fundraising experience in a volunteer

environment.• Successful track record of direct solicitation and closing gifts.• Demonstrated event planning experience.• Strong organizational, management and administrative skills

including the ability to multi-task.• Sound understanding of financial reports and budgeting.• Excellent interpersonal, verbal and written communication and

presentation skills; with interactive experience with business,corporate, philanthropic and Jewish communal leaders a plus

• Flexibility to work evenings and weekends to represent ADLand attend community fundraising events.

• Frequent travel within the region; occasional overnight travelmay be required.

• Familiarity with Microsoft Office and database managementsoftware.

For immediate consideration, please send resume and cover letterto [email protected], Subject: Director of Development.

ADL offers a very generous benefits/vacation package. EOE.Learn more about ADL at www.adl.org

Associate Directorof Philanthropy

Houston, TXThe Nature Conservancy

The Nature Conservancy is the world’s largest conser-vation organization, working in the U.S. for morethan sixty years and in more than 35 other countriesacross the globe. Our Texas Philanthropy Divisionseeks a Senior Associate Director of Philanthropy tobe based at its Houston, Texas office. This positionbears responsibility for engagement, cultivation, so-licitation and stewardship of portfolios of 75 - 100current and prospective donors with capacity of$100,000 + to support emerging state-based, re-gional and global priorities for conservation. The po-sition will also prepare the Texas Chapter forsignificant contribution to an upcoming organization-wide capital campaign. Requires undergraduate de-gree, 8-10 years of fundraising or related-experience,solid track record of soliciting and closing major giftsof $100,000 or more and developing long-termdonor relationships. Supervisory experience andknowledge of Houston fundraising market preferred.

BASIC QUALIFICATIONS

• Bachelor’s degree in marketing, communicationsor related field and a minimum of 7 years relatedwork experience or an equivalent combination ofeducation and experience. Major gifts fundraisingexperience required.

• Experience in managing and tracking multipleprospects and donors.

• Experience, coursework, or other training in cur-rent trends in charitable giving in the areas of capi-tal campaigns, major gifts and planned giving.

• Experience in asking for and closing major gifts of$50,000 or more.

• Experience building and maintaining long-term re-lationships with fundraising constituents such asmajor donors and corporations.

Apply online atwww/nature.org/careersSearch for Job ID 42163

Cover letter and resume are requiredApplication deadline is 11:59 PM on June 15th, 2014


To place an ad in this sectioncall 973-401-0202 x206or [email protected]

CALENDAR

JUNE 8-10 The Council on Foundations will hold itsannual conference at the Washington Hilton Hotel inWashington, D.C.Info: www.cof.org

9-13 The Competing for Federal Grants course of TheGrantsmanship Center will be held at the Pikes PeakWorkforce Center, Colorado Springs, Colo.Info: www.tgci.com

12-13 The American Institute of Certified PublicAccountants (AICPA) will hold its annual Not-for-ProfitIndustry Conference at the Marriott Wardman Park inWashington, D.C.Info: www.cpa2biz.com

13-15 Americans for the Arts will hold its annualconference in Nashville, Tenn.Info: http://convention.artsusa.org

16-18 National Conference on Volunteering and Service,convened by the Points of Light Institute, will be held inAtlanta, Ga.Info: http://www.volunteeringandservice.org

24-27 Philanthropic Service for Institutions (PSI)will hold its annual Conference on Philanthropy inBaltimore, Md.Info: www.psiconference.org

27 Fundraising Day in New York, sponsored by theAssociation of Fundraising Professionals Greater NewYork Chapter, will be held at the Marriott Marquis inNew York City.Info: www.nycafp.org

JULY9-11 The Bridge to Integrated Marketing & FundraisingConference will be held at The Gaylord National Resortand Convention Center, Oxon Hill, Md.Info: www.bridgeconf.org

21-23 American Marketing Association will hold itsNonprofit Marketing conference at the RenaissanceArlington Capital View Hotel, Arlington, Va.Info: www.marketingpower.com

30-AUG. 2 The Association of Prospect Researchersfor Advancement will hold its annual internationalconference at The Cosmopolitan Las Vegas, LasVegas, Nev.Info: http://www.aprahome.org

AUGUST4-5 The Direct Marketing Association NonprofitFederation will hold its annual New York City conferenceat the Grand Hyatt New York in Manhattan.Info: www.nonprofitfederation.org

To get your event added to the calendar, email it at least

eight weeks before the event to: [email protected]

thenonprofittimes.com/jobsTHE BEST PLACE FOR JOBSEEKERS

Find a job or post a resumé.Hundreds of jobs posted.

THE BEST PLACE FOR EMPLOYERSPost a job or search resumés.Over 60,000 views monthly.FOR MORE INFORMATION

[email protected] X206

NPTJOBSCAREER CENTER

thenonprofittimes.com/jobsWashington Hilton


Your Guide to the Donor Experience How to Move Supporters through the Constituent Lifecycle As people have evolved, so have their fundraising preferences and expectations. The Constituent Lifecycle, the latest eBook from Blackbaud, breaks the lifecycle of a constituent into four stages, identifying strategies you can apply to connect with and engage supporters in today’s digital world.

Download your free copy today at www.blackbaud.com/drNPT.

FREE eBook

available now!

ailaFREE eB

vvaaavEE eB

ailab

w!

able nooweBookeBo

able no


Documents

•June 1 2014 NPT Layout 1 5/20/14 11:43 AM Page 1 THE … · 2020. 1. 6. · Fundraising With Funding BHY PATRICK SULLIVAN ave you changed your donor management system’s pass-