Posted in NewsNotes Archive
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Issue 75 |
NEWSNOTES is a monthly email newsletter published by NEW. It covers resources available at NEW in Ann Arbor and Detroit as well as items of interest to the nonprofit community in southeastern Michigan. NEWSNOTES is proud to celebrate its seventh year of publication, with delivery to over 1,300 subscribers every month! We welcome your This e-mail address is being protected from spambots. You need JavaScript enabled to view it !
NEW would like to recognize the generous support of its Community Partners: The Ann Arbor Area Community Foundation, the DTE Energy Foundation, The James A. & Faith Knight Foundation, The Lloyd and Mabel Johnson Foundation, Online Technologies Corporation, The Power Foundation, and the W.K. Kellogg Foundation. And special thanks to NEW's founding partner, the McKinley Foundation.
IN THIS ISSUE
| THANK YOU |
Special Thanks to TCF Bank
for their support of this month’s articles and events on fundraising by boards of directors. |
LEAD STORY
How Do I Get My Board Involved in Fundraising?
by the Alliance for Nonprofit Management
There isn't a senior nonprofit manager alive that hasn't asked herself this question at some point in her career. Take some comfort in the fact that you are not alone in pondering this question. No one will argue with the notion that the ultimate responsibility for organizational success resides with the board of directors. Further, success not only requires good programs but it also requires the necessary funding to implement those programs and services. Yet this argument alone is rarely enough to motivate board members to spring to action around the fundraising program. True motivation springs from involvement in the life and mission of the organization.
It is a tremendous asset to any organization to have an active board of directors involved in the fundraising function. Most professional fundraisers will tell you that before boards get involved in fund raising, they must first be involved in the mission and governance of the organization. This involvement with the larger scope of the organization often leads to more focused commitment to the fundraising program. It is important to remember that fundraising is a means to an end, and therefore we must involve our board members in the ends if we are to secure willing help on the means.
First and foremost, board members must be engaged in the planning process to determine with staff what the organization wants and what it will do. Involvement in planning builds ownership of the plans which essentially become the organization's agenda for the future and the foundation for all subsequent fundraising. After goals, objectives, programs and services have been determined, planning turns to translating these aspirations into real financial needs, often reflected in budgets. It is essential that the Board participates in determining the financial needs if they are to be involved in serious fundraising in the future.
After this process has been completed, board and staff need to form a partnership to develop and implement a plan to secure the necessary funds required to go forward with the plan. The actual fundraising task is immeasurably strengthened when a true partnership between board and staff is in place. As with other management functions, staff manage the fundraising program, while board members get involved in those elements that are suited to their interests, skills and capabilities. A good fundraising plan is explicit about both board and staff responsibilities. The following breakout of tasks is an example:
BOARD
- Have input into fundraising plan
- Organize and participate on fundraising committee
- Identify and cultivate new pro
- Organize and participate on fundraising committee
- Identify and cultivate new prospects/donors
- Ask peers for donations
- Always be an advocate for the agency
- Make introductions for staff to follow-up
- Accompany staff on key visits to funders
- Help with expressions of thanks when appropriate
STAFF
- Accompany staff on key visits to funders
- Help with expressions of thanks when appropriate
- Research new and existing donors
- Write case materials
- Assist board in any way possible
- Write proposals
- Accompany board members on solicitation visits
- Ask for money when appropriate
- Take care of all logistics related to fundraising activities
- Plan, plan, plan
Most people do not gravitate to fundraising naturally or easily. It can be helpful to get board members involved in a process to explore their personal feelings about giving and asking. Several helpful exercises on overcoming reluctance to asking can be found in another FAQ on the Alliance for Nonprofit Management site. "Why Are People Afraid to Ask for Money? "
A related question to the larger issue of board involvement in fundraising is how much should a board member give? We have another simple answer: the goal should achieve 100% giving by the board and for each member to make a "generous" gift. Obviously, each board member will have to determine what constitutes generosity in terms of their personal financial situation. Another question to ponder: If you can't convince your board members to give, and give generously, what barriers are standing in the way? Answering this question forthrightly will be a critical step in turning a bad situation around.
Fundraising requires commitment from people. The first place to look for the this commitment is within the board. After all, the board is the vital link between a nonprofit organization and the public. Board membership in itself represents a significant level of commitment. The fundraising process demands a deepening of this commitment. Once in place, the organization has a powerful asset for reaching out into the larger community for gift support.
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Copyright, Alliance for Nonprofit Management. All Rights Reserved.
Reprinted with permission. See the original version and other answers to nonprofit management questions on the Alliance for Nonprofit Management website.
Additional resources
- See ResourceConnect's database under "fundraising" for several books on the topic of the board's role specifically.
FEATURED ITEMS
BoardConnect® Program Associate Position Open
NEW is seeking a team member to assist with the operation and expansion of NEW’s BoardConnect® program, the goal of which is to strengthen nonprofit boards through the provision of recruitment, training, matching, consulting, and related services.
Participate on a fun, entrepreneurial team of talented professionals! See the position described in detail. Submit your letter and resume via email to This e-mail address is being protected from spambots. You need JavaScript enabled to view it by October 3.
Get Connected with ResourceConnect®: Fundraising—the Board’s Role
Tuesday, September 30, 3:30 p.m. – 5 p.m.
Hannan House, 4750 Woodward Ave., Detroit
NEW’s monthly networking and learning event features Ann Clark of Development Directions who will provide insight into and guide discussion on the board’s role in fundraising. Register online for just $10. Call (734-998-0160 x 218) or fax (734-998-0163) your registration request for $15.
If you would like to receive email notices about the Get Connected program, contact ResourceConnect® (734-998-0160 x 218). Our October 28 event (last Tuesday of the month) will take place in Ann Arbor and feature the topic of IT Assessments. We’ll be at the Hannan House again on Tuesday November 25.
Nonprofit Buzz: Fundraising — the Board’s Role
Thursday, September 25, 9 a.m. – 10 a.m.
Tune in to The Nonprofit Buzz on Thursday morning, September 25 at 9 a.m. to hear host Diana Kern's discussion on the board's role in fundraising. Her guests will be Cedric Richner, Partner, Richner and Richner, LLC and John Fike, President, Philanthropy Solutions . Listen to NEW's live Internet radio program on the web on MetroChick Radio hosted by Lisa Marie. Past shows on a wide array of subjects are available as podcasts.
Upcoming Trainings
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BoardConnect®:
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Starting Off Right: Board Member Orientation
ARISE Detroit!
5830 Field Street, Suite 103
Detroit, MI 48213
$50 if you register online
Description and registration -
Building Your Board
Thursday, October 2, 9 a.m. - noon
Hannan House, 4850 Woodward, Detroit
$50 if you register online
Description and registration
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Starting Off Right: Board Member Orientation
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Strategic Mergers Alliance Resource Training (SMART)
Wednesday, October 8, 9 a.m. – noon
JARC Office, 30301 Northwestern Highway, Farmington Hills,
FreeStrategic alliances—from simple cooperation to complex mergers—can reduce costs and help your organization deliver high quality client services. Attend a free preview of Strategic Mergers Alliance Resource Training (SMART), a new program offering some of the most innovative business building tools in the sector.
Find more information and a registration form.
SMART is a collaborative effort of Community Legal Resources, Detroit Executive Service Corps, Michigan Nonprofit Association, Nonprofit Finance Fund, and United Way for Southeastern Michigan, funded in part by the generous support of the Hudson-Webber Foundation.
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Training a Busy Staff to Succeed with Volunteers with Betty Stallings
Friday, November 14, 8:30 a.m. - 2 p.m.
Eastern Michigan University Student Center, Ypsilanti
$100Today's manager of volunteer programs must become the resource person to other staff who supervise volunteer activity. Learn from an expert in the field how to respond to staff resistance, orient staff to the volunteer program, get administrator buy-in, and more. A pre-conference reception with Ms Stallings on November 13 from 4 p.m. - 6 pm. is also available to 20 people.
Sponsored by Washtenaw Association of Volunteer Coordinators and Eastern Michigan University. Continental breakfast and lunch provided. Register
National Philanthropy Day
Thursday, November 13, 5:30 p.m.
Hyatt Regency, Dearborn
$90 individual tickets
Join the Detroit Chapter of the Association of Fundraising Professionals (AFP) to celebrate philanthropy and volunteerism throughout our community. For more information see the AFP website or call 248-478-6076.
Michigan Nonprofit Compensation and Benefit Survey
The 2008 survey of salaries and benefits for nonprofit employees is available for purchase from the Michigan Nonprofit Association. Data from 70 Michigan counties and over 650 nonprofit organizations provides an analysis of salary and employee benefits for 72 nonprofit positions. Use the data to determine pay increases, prepare budgets and compare pay ranges. The report is available in hard copy or CD for $60. View a copy at NEW's office in Ann Arbor or Detroit.
Michigan Dropout Prevention Leadership Summit
Monday, October 20, 9 a.m. - 4 p.m. (Optional pre-conference at 8 a.m.)
Lansing Center, Lansing
Educators, parents, students and community activists from across the state are invited to a summit in Lansing to learn more about the dropout crisis, why graduating more students from high school is critical for every part of our society and economy, and what can be done at the local level to keep students in school. Communities are encouraged to register a core group of stakeholders for the Summit who will take new knowledge home and grow alliances in their area. Details and registration. For more information contact This e-mail address is being protected from spambots. You need JavaScript enabled to view it (517-485-3500 or 800-330-8674).
Junior League Applications Due Soon
Done in a Day (DIAD) project applications are due October 10, 2008 for projects that can be completed in a few hours by Junior League of Ann Arbor volunteers in this coming Winter/Spring 2009 season. Feel free to apply if your organization works with children/youth, education, women’s health or family issues in Washtenaw County.
Contact the This e-mail address is being protected from spambots. You need JavaScript enabled to view it (734-996-8818) with questions or to have an application sent to you.
Annual Electronic IRS Filing Requirement for Small Exempt Organizations
The IRS wants to make clear the new filing requirements for nonprofits.
Small tax-exempt organizations whose gross receipts are normally $25,000 or less may be required to electronically submit Form 990-N, also known as the e-Postcard. The Pension Protection Act of 2006 added this filing requirement to ensure that the IRS and potential donors have current information about your organization.
The first e-Postcards are due in 2008 for tax years ending on or after December 31, 2007. The e-Postcard is due every year by the 15th day of the 5th month after the close of your tax year. For example, if your tax year ended on December 31, 2007, the e-Postcard was due May 15, 2008.
Exceptions to this filing requirement include: organizations that are included in a group return, churches, their integrated auxiliaries, and conventions or associations of churches.
The following organizations cannot file the e-Postcard but must file different forms instead:
- Tax-exempt organizations with annual gross receipts that are normally greater than $25,000 must file Form 990 or Form 990-EZ
- Private foundations must file Form 990-PF
- Section 509(3) supporting organizations that are required to file Form 990 or Form 990-EZ
- IRC section 527 (political) organizations required to file an annual exempt organization return must file Form 990 or Form990-EZ
If you do not file your e-Postcard on time, the IRS will send you a reminder notice, but you will not be assessed a penalty for late filing. However, an organization that fails to file required e-Postcards (or information returns – Forms 990 or 990-EZ) for three consecutive years will automatically lose its tax-exempt status. The revocation of the organization’s tax-exempt status will not take place until the filing due date of the third year.
See the IRS website for more information and clarification of terms.
Reminders:
- Big House Big Heart Run, Sunday, September 28.
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