DMA Nonprofit Federation News Feeds
Stop me if this scenario sounds familiar to you: You applied for a job for which you seem perfectly qualified yet never heard back from the organization. If you are like a lot of job seekers, you are probably wondering why didn’t get called in for an interview since you appeared to be well suited for the position. The reason for the radio silence lies in the changing definition of the word “qualified” in today’s job market.
Peter Weddle a recruiter, HR consultant and business CEO, explained in a video on our Career Learning Center that, because employers are constantly changing what they define as qualified, job seekers are going to have to do some adjustments to meet that definition. How can you do this? Take a look at the preview of his video below:http://www.thenonprofittimes.com/wp-content/uploads/2013/12/Avoiding-Career-Obsolescence-Preview.mp4
Want to learn more? See the full 16-minute video on our Career Learning Center.
“Mother issues” in the board room and not so subtle conflicts of interest in a start-up gather like storm clouds in nonprofit land. Call the ethicist!
Nonprofits were owed more than $200,000, on average, for services provided to state governments during 2012 and nearly a third of nonprofits reported receiving late payments from governments, according to a new survey.
Nearly half of the nonprofits affected reported that late payments were creating problems for their organizations, according to the results of the “Nonprofit-Government Contracts and Grants: Findings of the 2013 Survey,” a collaborative project of The Urban Institute’s Center on Nonprofit and Philanthropy and the National Council of Nonprofits.
More than 4,000 completed the survey, which included organizations that are required to file a federal Form 990 and have more than $100,000 in expenditures. Results were weighted to represent all nonprofits that had contracts and grants with government agencies in 2012.
During the recession, nonprofits reported some level of difficulty with five problem areas:
- Complex application processes;
- Burdensome reporting requirements;
- Payments not covering the full cost of services;
- Changes to government contracts; and,
- Late payments
The study, funded by the Bill and Melinda Gates Foundation, is the second such survey by the Urban Institute in Washington, D.C. The other was conducted in 2009. “From the perspective of human services nonprofits, little improvement has been made in the past three years in streamlining the application and reporting processes to reduce the cost and burden of applying for and reporting on government contracts and grants,” according to the survey’s authors.
Almost 40 percent of nonprofits in the survey reported continued struggles in the wake of the Great Recession and ended the year with a deficit, survey results show. Approximately 15 percent reported deficits of 10 percent or more at the end of 2012. Almost half reported decreased government revenues from 2011 to 2012.
Late payments were prevalent among all levels of government but state agencies had the highest average owed — significantly more than the average owed by federal agencies ($108,500) or local governments ($84,899). The median amounts owed were smaller, but still highest by the state ($40,000), followed by local ($30,000) and federal ($26,808).
Late payments were regarded as a problem for 45 percent of nonprofits with almost half of medium and large organizations reporting that late payments were a problem. Experiences varied by type of organizations; more than half of health nonprofits reported problems versus a quarter of those in the arts.
Among those that responded late payments created a problem, almost half were more likely to draw down reserves, about a third would reduce employee salaries and a quarter would increase lines of credit. Only 15 percent would affect the number of programs or services and less than one in 10 would reduce the number of offices or program sites.
Organizations involved in education experienced the shortest delays in payments from government. At the local level, a third of arts organizations experienced delays in payment of more than 90 days, but no health organizations reported such a long delay.
Local, state and federal governments worked with nearly 56,000 nonprofits in 2012, with contracts and grants ranging from $1,000 to $325 million. More than two out of three agreements were with human services organizations. The roughly 42,000 agreements with human services organizations were more than the next two subsectors combined – arts, culture, and humanities and health made up almost 18,000, or less than a third. In terms of dollars, human services (59 percent) and health (27 percent) organizations dominated as well, gobbling up 86 percent of funds, with the average $5.5 million for health and $2.8 million for human services.
Governments more frequently had agreements with large nonprofits, nearly half (48 percent) with operating budgets of $1 million or more, and 36 percent with budgets of between $250,000 and less than a million. Only 17 percent of organizations with budgets of $100,000 to less than $250,000 received a contract or grant.
Giving to evangelical churches and ministries largely outperformed secular charities between 2011 and 2012, according to a new report released by the Evangelical Council for Financial Accountability (ECFA).
Annual cash and non-cash charitable giving to ECFA-accredited organizations increased 6.7 percent between 2011 and 2012, according to the 2013 ECFA Annual State of Giving Report. It reflects total cash donations of $11 billion in 2012, an increase from the previous year’s $10.3 billion. Secular giving had increased by 4 percent within the same period, for cash and non-cash giving.
In last year’s report, ECFA reported a 1.7 percent increase in giving to its members for 2011, compared with a 5.8 percent increase the previous year.
“As many American families experience economic challenges, church and nonprofit donors continue to demonstrate faithfulness in supporting God’s work,” said ECFA President Dan Busby.
The largest cash giving increases occurred in the following organizational segments:
- Foundations – 25.1 percent;
- Orphan care – 12.4 percent;
- Adoption – 12.2 percent;
- K-12 Schools – 12 percent;
- Short-term missions – 12.1 percent; and,
- Higher education – 10 percent.
While the 2013 ECFA Annual State of Giving Report mainly focuses on cash giving, it does break down non-cash giving to member organizations. The report found that these types of gifts were worth $3.4 billion in 2012, a 4.8 percent increase from $3.3 billion in 2011. Total revenue also increased 8.7 percent to $21.4 billion for 2012, compared with $19.7 billion for 2011.
ECFA, founded in 1979, provides accreditation to Christian nonprofits that faithfully demonstrate compliance with the ECFA standards pertaining to financial accountability, fundraising, and board governance. You can find more information about the 4th Annual State of Giving Report at www.ecfa.org
#Giving Tuesday was yesterday, more or less kicking off the giving season. Studies show that more than one-third of all annual giving to causes happens from October through December, with more than 17 percent in December alone.
Most organizations have already spent considerable time and energy planning their year-end fundraising campaigns. But too many of these efforts will lack what I call matterness.
Matterness is the deep desire we all have to count, to be heard, to be considered important as individuals and not just donors or customers.
I asked my friends online when and how nonprofits have made them feel as if they don’t matter. The litany of complaints began: When they spell my name wrong; When I send in a donation and the next month get another ask; and, When I go to an event and am treated like a stranger. It is a lonely, alienating, dehumanizing experience to be treated like you don’t matter.
Everyone has something important to contribute to a cause — ideas, time, expertise, and, of course, money. Too often, organizations treat donors just as current or potential check writers. And once the first check is written, we are coded, batched and categorized in an automated giving system to be asked over and over again.
It happens because of the overwhelming pressure on organizations to meet their financial goals. The mantra of constant growth is one of the poor lessons taken from the for-profit world that nonprofits have adopted. Nonprofits don’t need to grow bigger. They need to better connect with other people and organizations in more meaningful ways to be more effective. Treating individuals like they don’t really matter, as opposed to treating them like passionate, smart, creative, social beings, is a huge lost opportunity for organizations.
Here are a few ways organizations can begin to build matterness into year-end giving this year:
Stories Over Testimonials. Stories are about people, testimonials are about organizations. People stories are what inspires and moves people. Here is a great story produced by Dove soap about how women feel about their looks. The stories don’t mention Dove soap, and Dove’s sales increased. You don’t have to create stories like this one, your people have beautiful, moving stories to tell and your job is to find them and help tell them.
Thanking People Publicly. The idea of thanking every donor personally is, of course, overwhelming. However, there is an opportunity to showcase your thankfulness by taking to your social media channels and thanking one person publicly as a representative of others. Thank the donor who has been giving $10 every month for years. Call out the volunteer who spent hours organizing meals for other volunteers, or the board member who put up a match for the annual campaign. By helping them to tell their story about your cause and thanking them personally and publicly, others will feel good about how your organization treats its people.
Solve Problems Together. Too often the social media channels are used as online press releases. Places to push out “look how great we are” information that no one really cares about. Making people feel that they matter means asking them to help solve real problems. Not window dressing problems (e.g. should our event be great or super great?) but real ones. This is a better alternative to, “Thank you for bringing this to our attention, we will take it under advisement.”
An organization I know did this by taking the complaint about getting too many emails to their Facebook group. We know how it feels to get too many emails, the group wrote, but we have information we think you need to know. How can we do this better? People chimed in and the solution was to segment the list and have people opt into the topics that were of greatest interest. Their participants felt appreciated, smart and important.
Matterness means that someone is really listening to your interests and concerns, that you are being cared for not just cared about, and that you have opportunities to help strengthen the institution. In return, institutions get the best kind of participant, a “sticky” one (To Keep Your Customers, Keep it Simple, Patrick Spenner and Karen Freeman, Aug 9, 2013, HBR) who is a repeat donor or volunteer and ambassador who recommends the organization to other people.
Online donations for #GivingTuesday through four of the nonprofit sector’s larger payment processors totaled more than $27 million, according to preliminary estimates. Their totals were slightly more than $12 million last year.
Three times as many organizations participated in #GivingTuesday this year, the second annual event that aims to be a national day of giving. More than 8,300 partners were involved, and some of the charities involved last year were much more active in the 2013 edition. Of the 8,300 partners more than 7,000 were nonprofits.
Henry Timms, interim executive director of the 92nd Street Y (92Y) in New York City, said the response far exceeded his expectations. “We were just overwhelmed by the outpouring of generosity,” he said. “I think it really showcased the creativity and entrepreneurism in the nonprofit world and the generosity of the heart of this country. The combination of traditional values and new technology proved to be a really powerful one,” he said.
#GivingTuesday originated with 92Y and the United Nations Foundation last year. Timms said there was no consolidated number of donations on #GivingTuesday. He pointed out that Blackbaud captured about 10 percent of the donations, but was unwilling to extrapolate that into a total. “That’s before you get to offline gifts,” he said. “We’ve always thought about #GivingTuesday as not just a day but the opening of the season.”
Blackbaud reported $19.2 million in online donations processed from more than 3,800 customers, nearly double the $10 million in 2012. The average gift was nearly 40 percent greater, to $142.05 compared with last year’s average of $101.60. The Charleston, S.C.-based firm handles approximately $3 billion in online donation processing annually.
Network For Good (NFG) reported a 74-percent increase in funds raised and an 89-percent increase in the number of donations. This year, $1,780,709 was contributed through 13,435 donations, for an average gift of about $132.55. The total $1,021,755 that was raised last year was surpassed by 4 p.m. Eastern yesterday. The 2012 total came via 7,120 donations, for an average gift of about $143.50.
The total reported by the Washington, D.C.-based donation processor includes all sites that it hosts for charities, in addition to platforms such as CrowdRise, Causes.com and other corporate websites.
Horsham, Pa.-based DonorPerfect reported fundraising of more than $5 million for the nearly 500 organizations on its platform, compared with $1.2 million in 2012. The average gift was almost $165 for the 473 organizations, almost 9 percent more than last year’s $151 average, which was among 222 organizations.
Comparing those organizations that participated in 2012 and 2013, DonorPerfect estimated that the dollars raised increased by 162 percent, the number of gifts increased 89 percent, and the total average gift jumped 39 percent, from $125 to $173.
Razoo, the San Francisco, Calif.-based fundraising platform behind Giving Days, reported $1,141,097 raised for more than 470 organizations, according to CEO Lesley Mansford. The highest total was by Karam Foundation, which raised $59,458 from 525 unique donors to share in $103,000 in prize money from the Razoo Foundation.
The busiest time of day for Network for Good clients was mid-day, with the largest number of donations (4,188/31 percent) made between noon and 4 p.m., followed by 8 a.m. to noon (3,315/25 percent). The biggest improvement from 2012 was during the noon to 4 p.m. hours, when fundraising jumped of 131 percent, followed by 8 p.m. to midnight hours, which improved by 111 percent.
The noon to 4 p.m. hours led all parts of the day in dollars raised with $538,457, roughly 30 percent of the day’s totals. Almost a quarter of the day’s totals came in on either side of that time period — the 8 a.m. to noon and 4 p.m. to 8 p.m. hours.
The highest average gift ($171) came in between midnight and 8 a.m. but that may be more a result of fewer donations – just 519, a fifth of the next busiest time of day. Throughout the other four parts of the day that NFG tracked, the average gift ranged from $127 to $131.
Nonprofits seeking to leverage #GivingTuesday’s momentum for their year-end campaigns should do two things, said Timms. Many charities received donations from first-time donors, and it’s important to make sure the relationship doesn’t begin and end with #GivingTuesday. “With new donors, this is the beginning of the relationship and not the end of a transaction,” he said. “And second, do a good job of saying thank you. People get excited about getting the gift but they’re not excited about thanking their donors.”
Some two-thirds of people who gave to DonorsChoose were first-time donors. Much like the broader nonprofit sector, the New York City-based charity was much more active this year. DonorsChoose sent an email to all its donors, which it did not last year, in addition to being among four charities that received an endorsement from Bill and Melinda Gates as an organization to support this year (the others were Heifer International, Save the Children and World Vision).
The result was $199,555 from 2,569 individuals to support classroom projects, for an average gift of almost $78. Last year, the New York City-based charity raised $69,086 from 752 donors; an average gift of almost $92. In each year, roughly two-thirds of the donors were first-timers, according to Chief Marketing Officer Katie Bisbee.
Timms said those involved with #GivingTuesday are already assessing the day and planning for next year. “The first thing we’re going to do is a lot of listening. We really want to try and understand what worked, where it worked, how it worked and what didn’t work,” he said. The 92Y and others plan to take those findings and distribute best practices as early as possible “so we have the best information early in the year,” said Timms. “#GivingTuesday has become a better project because of other ideas and I think we’ll see more and more creativity coming out of the sector. We see so much appetite for experimentation and new ideas.”
First Degree, LLC is looking to hire a Corporate Alliances Manager to work for one of its clients, Shriners Hospitals for Children, as a Corporate Alliances Manager. Are you interested in this position? Read on for more information.
The Corporate Alliances Manager will serve as an an extension of Shriners Hospitals for Children’s cause marketing staff, providing business development and cause marketing services to secure new corporate partners. Depending on the organization’s needs, this position will secure corporate partner support for specific cause-marketing platforms or work with prospective partners to design cause-marketing campaigns that deliver on the stated goals of the client and prospective partner.
Of course, there are many other responsibilities that the chosen candidate will take on. These include:
- Develop and implement a corporate development go-to-market strategy, researching and identifying a list of prospective corporate partners with synergies in mission and constituents with Shriners Hospitals for Children.
- Generate revenue opportunities for client, identifying and pursuing new opportunities with minimal supervision.
- Conduct business development activities, identifying the appropriate contacts within the corporation to contact and securing a meeting to present partnership opportunities.
- Provide ongoing advice, counsel and implementation support as required.
The ideal candidate will possess a Bachelor’s degree in a related field as well as five or more years of cause marketing experience, either with a non-profit or marketing/PR agency or similar environment. Additional information, including application instructions, can be found by visiting the NPT Jobs Career Center.
“Civic leaders and funders are increasingly exploring the potential for technology to promote healthy, vibrant communities. Though activity and investment in civic tech has grown over time, a lack of insights and common terminology for describing the full spectrum of efforts in the space has hindered collaboration around shared strategies for impact.”
—Jon Sotsky, Knight Foundation director of strategy and assessment