News You Can Use

Facing Budget Gaps, Many U.S. Cities Cutting Services, Personnel, Report Finds (5/20/09)

 A number of U.S. cities are cutting services and personnel in response to significant budget gaps caused by the ongoing recession, a new report from the Pew Charitable Trusts' Philadelphia Research Initiative (http://www.pewtrusts.org/our_work_detail.aspx?id=578)finds.

 Based on an examination of the causes of budget gaps and the  budgetary decisions that have been proposed or enacted in thirteen cities, the report, Tough Decisions and Limited Options: How  Philadelphia and Other Cities Are Balancing Budgets in a Time of  Recession found that declining consumer spending, job losses, and  a flagging real estate market have caused city tax revenues to  dwindle, while losses in the stock market have weakened city pension funds, forcing cities to increase contributions to those  funds. Although Pittsburgh is the only city in the study that reported a budget surplus, Seattle and Baltimore were found to be in the best fiscal situation, while Detroit was found to be in one of the worst positions.

 To read the complete article, click here.

Ten Things Non-Profit Boards Should Think About (Soon)
by Stephen L. Tatum

Most members of non-profit boards are unaware of the potential for personal liability that  became apparent in the recent case of Verret v. U.S.A., 542 F. Supp. 2d 526 (E.D. Tex. 2008) affirmed by the U.S. Court of Appeals for the Fifth Circuit on February 26, 2009.  The lower court opinion gave a very detailed account of the reasons why the board chairman of a non-profit hospital was held personally liable for payroll taxes the hospital owed but did not pay.  It also provides some good ideas for at least minimizing the risks of board members being personally responsible for a potentially large bill from the IRS.

To read the complete article, click here.

Now Is Not The Best Time

With the economic downturn constantly in the news, many organizations find themselves wondering whether they will meet fundraising goals for this year. Too often during these stressful times, decisions are made that are not in the best interest of your clients or consumers. Rather than putting in place a strategic plan of action, corners are cut.

Development Staff
Every day organizations across the country are cutting their development staff ... at a time when fundraising is critical. Of course, cutting individuals who are not performing, regardless of their role in your organization, is the right thing to do. But if a staff member has a good grasp on all aspects of fundraising, yet is still falling short of their goals, might a simple incentive plan be smarter? Now is not the best time to decrease your development staff.

Lights Out!
How many organizations are sending the "Lights Out" mailing, telling those who believe in you the most that you will have to turn the lights out if you don't get money ... and fast! If you send this letter, you've just told your donors you don't have a plan and are giving up. Why would they send you anything? Now is not the time to send this mailing.

Gloom and Doom
How many of you are giving this speech every time you talk to the Board, donors, or even strangers in the grocery line? If you don't believe in your organization, why should anyone else? Those organizations that stay the course and continue identifying, cultivating, soliciting and showing appreciation to donors will come out of this recession stronger. Now is not the time to talk of gloom and doom.

If you decrease your staff, send the "lights out" letter, or talk nothing but gloom and doom, how will you get your donors to jump back on your bandwagon when the economy gets better? They may leave you for an organization they perceive to be more stable, forward-looking, and worthy ... while they tell you, "Now is not the best time!"

-Susan Schneweis, Executive Vice President (Kansas City) susan@hartsookcompanies.com

NPT Instant Fundraising, May 14, 2009

Fundraising ... Assessing the cost to find a donor

Internet advertising can be tricky -- clicks, impressions, eyeballs. How about actual people? The newest addition to online advertising is cost-per-lead advertising, which only charges for actual leads.
 

President Obama’s presidential campaign used this cost model to build lists and other nonprofits are joining in, according to Arun Krishnan, vice president of marketing for Brooklyn-based Pontiflex. The cost-per-lead model is “taking it to the next level” for online advertising said Krishnan. Here’s what you need to know:
 

What it looks like. The advertising could be within a banner ad or can piggyback on an offer that requires a sign up. For example, if someone signs up for an e-newsletter subscription they could opt in to receive information from a nonprofit by simply checking a box off.

How it works. The contact information is transferred through the backend to the nonprofit. Instead of paying for clicks or impressions that might not convert, “The nonprofit doesn’t pay unless they actually get a qualified subscriber,” said Krishnan. Nonprofits can also segment for geographic area for targeted online subscribers.

“It’s much more effective -- say you want to grow your donor database by 1,000 subscribers. You could budget exactly how much you need to go in,” said Krishnan.

NPT Instant Fundraising, May 19, 2009

Hispanic Donors: Playing Up Family Ties In Appeals

Teletón, a Mexican charity that helps disabled children, puts on a radio and television telethon to raise money each year. But last year, Teletón wanted to expand to Hispanics living in America, the country with the second largest Hispanic population, and acquired more than 67,000 new donors in just 30 hours.
 

Fundraisers who want to reach Hispanic donors will have to speak the language -- both literally and figuratively, according to Michael Saray, president of Michael Saray Hispanic Marketing in New York City, at the Direct Marketing Association New York Nonprofit Conference.
 

To read the complete article click here...

San Antonio Nonprofits Struggling to Meet Demands for Services (5/27/09)

 As is true in most parts of the country, nonprofits in the San Antonio area are facing increased demand for their services even as donations decline, the San Antonio Express-News reports.

 According to a recent survey of more than 250 unidentified nonprofit groups in Bexar County, most nonprofits in the area have been seriously or moderately affected by the recession, with a third of respondents saying they had laid off staff. In addition,  a quarter of respondents indicated that the recession has seriously affected their revenue streams, 66 percent said the down-  turn has had at least a moderate impact on their revenues,  60 percent indicated they have postponed expansion plans, and

 84 percent are altering their fundraising strategies.

 Examples of struggling nonprofits in San Antonio are easy to find. For the first time in its 120-year history, the local chapter of the Salvation Army is using its red kettles outside of the holiday season to respond to serious needs in the community. And while the San Antonio Food Bank has seen donations of food increase 12 percent year-over-year, it has been unable to keep up with demand, which has jumped 26 percent. In response to growing needs in the area, the United Way of San Antonio and Bexar County recently boosted its basic safety net services budget by more than 10 percent, to $4.77 million.

 "While San Antonio as a whole is somewhat insulated from the wildest economic fluctuations, those living on the margin are most affected," said United Way senior vice president Jose Contreras. "We are receiving calls from first-time callers or the newly poor -- people laid off or whose hours in full- or part-time jobs were reduced, who have never had to ask for help  before."

 Preyor-Johnson, Nancy. "Nonprofit Groups Struggling to Keep Up."

 San Antonio Express-News 5/25/09.

 http://fconline.foundationcenter.org/pnd/20018393/story