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Nonprofit Fundraising Using Social Media

Nonprofit Marketing Professional Chris Romero — Thu, 02 Feb 2012 21:54:58 +0000

Nonprofit Fundraising Using Social Media:

Basic rules of engagement

By Thomas R. Reich and Chris Romero

This is the year to imporve you skills with nonprofit fundraising with social media

Nonprofit fundraising using social media can be a lot more fun than you may think! We are about to cover some fun, free projects your organization can try right out of this blog. Let us know how they work!

Today, in 2012, nonprofit fundraising using social media has gotten both easier and way more complicated! If you remember the basic rules of engagement, then nonprofit fundraising using social media can be a smooth running snap!

if you cause is the California Condor, nonprofit fundraising using social media lets you brand it that way!

One of the basic rules of engagement for nonprofit fundraising using social media is to come up with an event, because donation or item sales drive that is consistent with your mission statement. If you are a charity designed to feed the homeless, a food drive and donation drive is appropriate. If you an organization designed to save the California Condor, why not try selling logo embossed peanut brittle?

Letting the donor have something physical for their donation is a key method used today in nonprofit fundraising using social media, it gives the donor a feeling of value and lets them walk away with something that shows others they donated. Another advantage of an item for a donation, is that item is advertising to everyone that sees it, the donors family and friends, if they take the item back to work who knows how many will see it.

Another great fundraiser is donations for an event, dinner, concert or even a car wash. If it is to be a donation for a dinner or a concert, be very sure you have the funding to pull off the event even if you do not get the numbers of attendees you hoped for. Concert venues want paid, lighting and sound must be paid, so consult with professionals before you get in over your head.

Nonprofit fundraising using social media can increase results 3 fold!

Back to the car wash idea, you have seen them many times, but we have a new twist. Think in terms of old marketing first, sell tickets to get a car wash, this way you know in advance of the event that you will have money coming in and a successful event before it happens. But it gets better, some who buy tickets will forget to come, and others that don’t want to let some kids wash their new car will buy a ticket to support your cause, but never use it! Finally the event will draw the donors that see the car wash as a spur of the moment thing just like any other car wash anyway. Can you see how nonprofit fundraising useing social media could increase this method even more?

Same rule applies for bake sales, thrift sales, arts and craft sales and raffles. But where do the social media come in. Nonprofit fundraising useing social media is simple if you follow the basic rules of engagement for a nonprofit event, and then talk about it constantly on you twitter feed, Facebook and LinkedIn to boost your exposure.

Basic Rules of Engagement:

1) Design a realistic and achievable fundraising idea, make sure you have the funds to cover any eventuality and that your price point is affordable to your core donor audience

2) Have someone who is dedicated to the successful planning, running and execution of the event or drive, this is espicially critical for nonprofit fundraising using social media. If you have an experienced person on staff or a volunteer who is reliable and known to complete tasks properly

nonprofit fundraising using social media puts you in the web

great, if not there are professionals who can organize and execute it for you at a reasonable cost.

3) Set clear and attainable goals; don’t make the drive to raise a million dollars if you are selling 5 dollar car wash tickets.

4) Clarify the purpose of the event or drive, what are the funds going to benefit, if it is to benifit the general funds of the charity or foundation, great. If, however, it is to benifit the California Condor, then you might be able to get other organizations with similar goals to join in through the internet, remember nonprofit fundraising using social media offers a whole world of new options for partnerships in humanitarian goals.

5) Use social media and traditional methods to market market market! Nonprofit fundraising useing social media can be tied in with traditional methods to great effect; think about having a ticket sales booth at a cretin location and then announce it through social media as well as the way you normally do it, you will have the potential of many more coming by!

these are a key part of success in nonprofit fundraising using social media

6) Use social media to publicize the event, blog about the cause and push the effect of a donation or participation in the drive. Nonprofit fundraising useing social media expands your world, expands you influence and adds to the good you can do!

Let’s say your event is a Spaghetti Dinner, we will use that as our final example. Traditional marketing says you sell tickets to friends church members working with you and maybe at the local grocery store, using a table with a hand

Think differently

written sign.

Let’s look at how nonprofit fundraising using social media could work. In your announcements newsletter, you begin talking about the amazing spaghetti dinner coming soon, and that last year it sold out so buy tickets early. Then you begin to Tweet the event and list it on Facebook and LinkedIn, now remember not just your organization social media, but the Facebook and twitter of every member, volunteer and booster of your organization.

Try a different approach; nonprofit fundraising using social media

Next, in your social cause’s blog you put a story about the cause followed by an announcement of the event. Finally you put out a press release, and all social media coverage on the unique recipe of the spaghetti sauce. Make sure there are comments listed on blogs and tweet responses expressing agreement at the unique good flavor of the spaghetti!

Can you see how this could cause a “viral” effect, because many people you never knew existed will now come and be exposed to your cause! This is how nonprofit fundraising using social media works.

If this sounds interesting, but you still want to learn more, join the staff of CharityNetUSA for a totally free seminar on Wednesday February 8, 2012. We at CharityNetUSA have helped a myriad of organizations with nonprofit fundraising using social media as well as all forms of business services. In fact we have helped over 12,000 organizations over the years, and we can help you too. We have a nonprofit webinar free on many topics every Wednesday and a small business webinar every Thursday also totally free!

Sing up now, it’s free and it is packed full of great information on fundraising in general and nonprofit fundraising using social media as well, remember as always this is not an infomercial, this is a true free webinar.

If you would like more information on the full range of services offered to set up and service a charity, foundation or church please contact CharityNetUSA by visiting www.CharityNetUSA.com or by calling, toll FREE 1.877.857.9002. Please follow us on Twitter and Like us on Face Book to receive free daily tips and tricks as well as notification of our FREE Award Winning Webinar series!

Modern Marketing and Nonprofits

Nonprofit Marketing Professional Chris Romero — Thu, 02 Feb 2012 17:19:02 +0000

Modern Marketing and Nonprofits

by Thomas R. Reich and Chris Romero

The Phoenicians invented modern marketing and nonprofits!

In today’s competitive nonprofit environment, modern marketing and nonprofits is essential. The first step in modern marketing and nonprofits is the same as it has been since the Phoenicians, develop a working marketing plan!

A marketing plan lays out your strategy and direction in the world of modern marketing and nonprofits. The first step is to secure a solid corporate identity, with a common look, color and design throughout all aspects of anything from your company that is seen by the public or another business. A complete corporate identity should include:

1) Corporate Branding and Logo Design

One consistent color pattern
Nonprofit strategy is part of modern marketing and nonprofitss.
Make sure logo is unique, distinctive and very reproducible to all media both media and print matter

2) Brochures – containing the Logo and the color and consistent design which is to become your corporate identity

3) Business cards and electronic signature – should also follow this developing pattern of color and design

4) Press release blanks – should carry the corporate identity

5) Newsletters with the look and feel of your corporate identity from front to back

CharityNetUSA can help with modern marketing and nonprofits

A company like CharityNetUSA can assist you in this type of design, inexpensively, and can get you on the road to modern marketing and nonprofits. However you create this “Corporate Identity” it must be of prime concern. Today, a business identity is your life’s blood, the key to modern marketing for small business.

The second step is to develop an integrated digital identity. In today’s nonprofit world, the internet is not only reality, but is indispensible to a modern marketing and nonprofit plan! You have, at this point, created a consistent corporate identity, logo, overall design and color scheme.

You must now carry this “Corporate Identity” into a “Digital Identity”, and do it correctly in order to survive

The internet must be part of modern marketing and nonprofits

modern marketing and nonprofits:

1) Create a website consistent with logo, overall design and colors to match your already developed corporate identity

2) Create a blog with consistent branding

3) Customize you Twitter with consistent branding

4) Customize your Facebook with consistent branding and create a fan page with a look consistent with your web home page

5) Customize your LinkedIn account; create a grope membership list consistent with your nonprofit type.

There are so many aspects to modern marketing and nonprofits and each facet has books written concerning all the things you can do to maximize your exposure. What I hope you take away from this writing, is that everything your nonprofit does must be with a consistent look. Today, due to the internet culture, you can have the look and feel of a much larger corporation, if you plan and execute your corporate identity correctly.

Having a great Marketing Plan is essential in modern marketing and nonprofits

CharityNetUSA has been helping nonprofits plan and execute corporate identity, and all aspects of small business operations for many years. CharityNetUSA has helped over 12,000 small nonprofits just like yours and we can help you with your modern marketing and nonprofits today!

Join us for a free webinar which will cover “Key Marketing Ideas” this coming Thursday, February 9, 2012. As always, this is not an infomercial, but a true free full hour of pure information. Want to know more about modern

marketing and nonprofits, we will see you there!

If you would like more information on the full range of services offered to set up and service a Small Business please contact us by visiting CharityNetUSA or by calling, toll FREE 1.877.857.9002. Please follow us on Twitter and Like us on Face Book to receive free daily tips and tricks as well as notification of our FREE Award Winning Webinar series!

You Have it in You: Start a Nonprofit

Nonprofit Marketing Professional Chris Romero — Thu, 19 Jan 2012 22:13:17 +0000

You Have it in You: Start a Nonprofit;

Be a No Lack Person

Quit Saying I can’t and Say I Can!

By Chris Romero and Thomas R. Reich

You have it in you to do whatever you truly believe in! You know who is behind you, the greatest power in the universe, you can do anything!

Last weekend I was inspired by a sermon delivered by the great Joel Osteen. So much of it seemed fitting for those with the calling to start a nonprofit. His words of vision and action were my inspiration for what follows:

Maybe you are up against a Business obstacle, but remind yourself, you have the knowledge, the talent and the

Question: Is now the time to start a nonprofit?

experience to hit those challenges head on, maybe now is the time to start a nonprofit business.

Quit saying “I can’t” and know that you can! Any deal you can visualize, tell yourself you are a “No Lack Person.” Tell yourself “These obstacles aren’t going to get in MY way” Tell yourself now is the time to do good, now is the time I am going to start a nonprofit!

CharityNetUSA makes the obstacles lighter; we make them a bump in the road. See every adversity as being light and temporary. You are ready for and equal to anything that comes your way and you will overcome every obstacle, now is the time to start a nonprofit.

We are here to help you start a nonprofit every step of the way

Your obstacles may have been facing you for years, but they can turn around now – obstacles are never Permanente. You have seeds of greatness on the inside, you are a winner!

Brake out of your box; believe you can reach your goals. Don’t set limits for your success, you can accomplish whatever you believe you can, you are a No Lack Doer, now is the time to start a nonprofit!

Don’t have a cheap narrow vision; it will limit your accomplishments. Don’t wait for it to go on sale, create the competition that forces a sale, you can get what you deserve, you can make a difference. Don’t be dependent on one sale, have a bigger vision, don’t settle for what is on sale, and settle for what brings you an abundance of success, now is the time to start a nonprofit.

Have the vision to start a nonprofit

You are full of talent, strength, creativity and vision, live your dreams, make them a reality. You are a No Lack Person, and you will accomplish your dreams if you believe in yourself. let us help, now is the time to start a nonprofit!

CharityNetUSA can help you every step of the way, whether helping establish your charity as a 501c3 or helping perfect every aspect of your plans, which will help you successfully start a nonprofit.

If you would like more information on the full range of services offered to Set up a Charity, Nonprofit or Foundation please contact CharityNetUSA by visiting www.CharityNetUSA.com or by calling, toll FREE 1.877.857.9002. Please follow us on Twitter and Like us on Face Book to receive free daily tips and tricks as well as notification of our FREE Award Winning Webinar series! Now is the time to start a nonprofit!

Filling Out Grant Applications

Nonprofit Marketing Professional Chris Romero — Fri, 18 Nov 2011 14:48:19 +0000

Filling out Grant Applications

One of the best ways for nonprofit organizations to acquire the capital funding necessary to operate their programs is to solicit for nonprofit grants. Nonprofit grants usually are given to organizations from the local, state or federal government agencies or private organizations, and depend on the proper methiod of filling out grant applications. Many nonprofit organizations are great at fundraising and soliciting for donations but for whatever reason they have not ventured into sourcing funding from nonprofit grants. When soliciting for a nonprofit grant from either a government agency or private organization, you will need to create a grant proposal, Filling out Grant Applications. The grant proposal will introduce your organization to the positional funding source, give them a clear understanding of your organization’s purpose and give a decryption of your organization’s planned programs and specific objectives. It will also provide a clear description of your organization’s purposed budget, your specific qualifications, and a conclusion wrapping up all of the information. Below you will see an outline of a nonprofit grant proposal.

Cover Letter (one page)

Provide a clear, concise overview of the organization, purpose and reason for and amount of the funding request while fillint out the grant applications.

A Full Proposal includes the following proposal sections: Executive Summary, Introduction (Organizational Background), Problem Statement (Need Statement), Objectives, Methodology,
Evaluation, Sustainability, Budget and an Appendix.
Executive Summary (1-2 Pages)

This summary is the most important component of your nonprofit grant proposal. Summarize all of the key information, when filling out grant applications, and convince the grantmaker to consider your proposal for funding.

Problem Statement (3-4 Pages)
(Needs Assessment)

Statistically document the specific situation, opportunity, problem, issue, and/or need, existing in the community your proposal addresses.

Program Goals and Objectives (1 – 2 pages)

Describe the outcome of the grant in measurable terms; including the proposed project outcome and accomplishments when filling out grant applications.

Methodology (4 + Pages)

Describe the process to be used to achieve the outcome and accomplishments.

Evaluation (1 – 2 Pages)

Explain how you will measure the effectiveness of your activities when filling out grant applications.

Sustainability (1-2 Pages)

Determine the long term financing of the program, after the initial funding period has concluded.

Budget

When filling out grant applications, clearly describe costs to be met by the funder and all other funding sources; outline both administrative and program costs.

Appendix

IRS501(c)(3) letter of tax exemption determination

Your organization’s most recent annual report

A list of your Board of Directors and Trustees, their board titles, their contact information, qualifications, and affiliations

Your organization’s most recent financial audit (if unavailable, please submit the last two years of financial statements or your most recent Form 990)

A list of foundation, corporate, and major individual support (including givers name, address, amount donated, and date donated) with the amount that was given for the last fiscal year.

A list of foundation, corporate, and major individual donations (including givers name, address, amount donated, and date donated) for the current fiscal year.

A Personnel Chart which shows the employee, their staff position, their work duties, their qualifications, their hours per week, and their yearly salary.

Program or organization brochure

Letters of support and/or recommendation from influential members of the community.

Project Timeline

For specific projects, include separate budgets for the general operating and the special project. Show income and expenses in columnar form (according to general accounting/bookkeeping principles).

Hopefully this article will allow your organization to add a new funding source to the fundraising, donations, and soliciting that you are currently undertaking. When filling out grant applications be sure that your grant proposal clearly introduces your organization to the positional funding source, gives them a clear understanding of your organization’s purpose, and provides a description of your organization’s planned programs and specific objectives. It should also provide a clear description of your organization’s proposed budget, your specific qualifications, and a conclusion wraps up all of the information.

There is an easier way, Grant funding operations coordination by CharityNetUSA. There are costs associated with this, but probably much less than the cost of the time involved with you and your staff generating and preparing, filling out grant applications and the complicated package required by the grant provider. And that is only one grant proposal, what if you could work with an organization that has prepared hundreds if not thousands of non-profit grant proposals for similar organizations? The savings in associated costs of filling out grant applications due to the experience of such an organization as CherityNetUSA.com and time it may save your organization could be substantial. The additional contacts for similar grant filings could make it well worthwhile to discuss your particular non-profit grant needs with a representative at CharityNetUSA.com and could be the difference between securing the funding and spinning your wheels.

As with any award, Grants are never 100% assured by any applicant, but with the help of a long established company which deals primarily in the area of Non-profit Business complexities to help in filling out grant applications, your odds of securing a grant is naturally greatly increased. In today’s market any edge is important, and CharityNetUSA.com can be just the edge you need!

These are the keys to filling out grant applications, if you have questions we are here for you:

If you would like more information on filling out Grant Applications and the full range of services offered to the nonprofit community please contact CharityNetUSA by visiting www.CharityNetUSA.com or call 1.877.857.9002

Free Nonprofit Webcast: Is your Nonprofit in Compliance with the IRS?

Nonprofit Marketing Professional Chris Romero — Thu, 09 Sep 2010 21:03:57 +0000

Find out how to Avoid Heavy Fines and Loss of 501c3 Tax Exemption in CharityNet USA’s Free Nonprofit Webcast!

You have waited months and finally have received your letter of determination from the IRS awarding your nonprofit with 501c3 Tax Exempt status. While this is a great milestone for your organization, it is important to remember receiving and maintaining your 501c3 status is not a simple “wham-bam-thank you-ma’am” deal.

In order to keep your tax exempt status, the IRS and State Governments require that specific federal returns and notices be filed annually. Failing to file or filing incorrectly, could result in heavy fines that your organization cannot afford and possible loss of the status you have worked so intensely to achieve – your 50c13 tax exempt status!

We invite you to join us for a free webinar that will review the critical deadlines and many obstacles organizations face when attempting to stay in compliance with the IRS. This free one hour event will prove to be invaluable to your organization and its future success.

Topics of Discussion:

Federal Compliance
State Compliance
Penalties and Revocation
Common Compliance Issues

Join us for this live nonprofit webcast event! Register Today at: https://www2.gotomeeting.com/register/939385082

Have specific items you would like for us to touch on? Enter them in the comments section below!

Nonprofit Economic Trends

Nonprofit Marketing Professional Chris Romero — Tue, 01 Jun 2010 15:26:56 +0000

Although the United States Economy has been going through an economic crisis and many nonprofit organizations had projected decreased donations, research has shown that there is actually good news for the nonprofit organizations. According to research, last year’s nonprofit organizations were not down as much as they had originally projected and they are projecting increased donations into the future.

The research indicates that fundraising in 2008 trended higher than in 2000. The majority of organizations across the board predict a recovery time of two years or less. For many groups, the economic downturn is an opportunity to focus on strategic priorities, reconnect with their mission, build relationships, collaborate with new partners, and get creative. Many have seen an increase in the use of their services and/or plan to expand programs/services in 2009.

Organizations that are doing well are not necessarily the ones with the biggest budgets or the ones that had the best fundraising year in 2008.

Trends of these organizations include:

Diversified revenue streams and a variety of ways to give
Engaged leadership (executive, development/fundraising, and board) that is prepared to address the changes in the coming year
More effort expended into donor outreach and cultivating relationships
Investment in development staff, resources, and/or activities
Proactive planning. They are looking to do more, not less

Many organizations that saw a decline in fundraising attributed it to the economy in some fashion; few were contributing organizational factors. A significant number of groups started the year with only short-term solutions planned, such as cost containment, reducing staff/programs, or dipping into reserves or credit lines as a first-line strategy. For those that predict a longer recovery time, there are two common elements: organizational issues, including leadership problems; and insufficient effort/focus/staff for development and fundraising.

Organizations that are not doing very well are not necessarily the ones with the smallest budgets or number of staff. “Worst” fundraising year in 2008, or the longest predicted economic recovery time.

Trends of these organizations include:

Leadership, board, or organizational problems (lack of engagement, turnover, communication, unity of vision)
Lack of planning or proactive strategies to address changes in the future; strategies are often reactive and focused on cost containment
Lack of donor stewardship
Reliance on fundraising sources not particularly fruitful in the past
Lack of effort/staff in development/fundraising

2009 Plans:

Organizational missions will not change (75%) or will expand (17%)
Programs and services are set to either increase (38%) or not change (36%); only a small number will decrease them (13%)
Communication with donors will increase (81%) or not change (15%)
Many respondents (71%) expect to partner or collaborate with other agencies
Morale is reported to be good. So far, current circumstances have either had no effect (37%) or increased unity (33%);
While most respondents (70%) are not worried about losing their job in the next year, it is a concern for the remainder

The good news is that while the economy has not recovered completely, it is recovering faster than originally projected. The nonprofit sector has fared better than expected and the downturn actually strengthened many organizations. The projections for the future include a positive trend.

Conflicts of Interest in Nonprofit Organizations

Melanie Guin — Thu, 27 May 2010 16:00:38 +0000

When the IRS examines a 501(c)(3) application, one of the major issues they are looking for is any potential conflict that exists. This conflict of interest could exist between the nonprofit organization and its board members, directors, trustees, or key employees. In my experience working with clients who are applying for their 501(c)(3) status, I have seen many situations arise in which a conflict of interest presents itself and may jeopardize the approval of the application. Even if this issue does pass the initial review completed by the IRS, if the conflict of interest is not addressed and dealt with appropriately, it could jeopardize future compliance with the IRS as well as damage the organization’s reputation; which, in turn, will damage funding.

Conflicts of interest in nonprofit organizations must be addressed very seriously whether they seem small or large. How an organization manages conflicts of interest that arise will determine whether an organization is frequently involved in legal problems and public scandals or actually accomplishing the organization’s mission. Conflicts of interest can arise whenever an individual, who has authority or decision-making power in a nonprofit organization, will privately benefit from a transaction, agreement, or activity of the organization.

One simple example of a conflict of interest is a board member with voting rights who will also be employed by the organization for other duties. The board of directors are responsible for reviewing and approving a nonprofit organization’s budget which would include the salaries and compensation of employees and independent contractors. If one of your board members will receive compensation then an obvious conflict arises if this board member has the authority to set his or her compensation. There are multiple ways to deal with this issue, some more extreme than others. For example, one solution would be to remove the board member from the board of directors altogether. However, such as drastic step does not need to be taken. A typical solution to such an issue would be to have this board member abstain from voting on his or her’s individual compensation. This in turn allows the board member to remain on the board and receive compensation for their duties as an employee, while avoiding a dangerous conflict. Although this issue may seem obvious, many board members do not see some of the more discrete conflicts of interests that arise throughout the lifecycle of their organization.

A useful way to discover if a conflict of interest exists during a decision-making process is to check and see if a decision will benefit any of your director. Of course, this will require all of your directors to be upfront and honest about any aspect of the decision that may benefit them.

Another asset to your organization is your conflict of interest policy. When you organization applies for its 501(c)(3) tax exempt status, the IRS requests that you adopt a conflict of interest policy and submit it with your application. However, you should always remember that this policy serves as a guideline and cannot replace careful consideration and an ethical approach to any decision made by a board. Each member of your Board should be required to acknowledge acceptance of the conflict of interest policy on an annual basis, and the policy should be reviewed at the initiation of all Board meetings. This will serve as a key reminder to every decision maker about their responsibility to disclose and avoid any conflicts of interest.

Nonprofit board members and executives must not only be able to recognize potential conflicts of interest, but they must determine when these conflicts present areas of concern and what to do about them. This can be a great responsibility and should be taken seriously – your organization’s tax exempt status and your future funding depend on it.

Should I Wait For The Cyber Assistant?

Nonprofit Marketing Professional Chris Romero — Mon, 25 Jan 2010 16:57:43 +0000

The Cyber-Assistant will do good things for first-time 501(c)(3) applicants but will it do enough to justify waiting to submit your 1023 application?

In 2003, the IRS started a review and revision process of how they examined applications for 501(c)(3) tax exempt status. They called this process, “Project ASPIRE,” and was created in response to the large increase in 1023 applications. At that point, the number of exempt applications was increasing by over 40% while the number of IRS Exempt Organization employees was remaining the same. The goal of Project Aspire was to find ways to streamline the 1023 application process, both for the applicant and the IRS. Following the project the IRS made some good strides, most notably, the elimination of Form 8734 (Advance Ruling Period). However, the major recommendation of this project was to continue previous efforts to develop a fully interactive filing for the 1023 application, termed the “Cyber-Assistant.”

One of the major changes in submitting your 1023 application through the Cyber-Assistant will be the stated decrease in the filing fee ($200 regardless of previous or projected revenue). It also may cut down on paper; however, since the last report, the application would still be printed and then mailed to the IRS.

For as much flak as the IRS takes, I must say that they are doing the right thing here. After all, that 2003 project that was mentioned earlier, Project ASPIRE, stands for:

Alleviate any application backlog

Streamline the determinations process

Prioritize application review

Improve customer service

Redirect resources to cases deserving enhanced review and compliance

Enhance quality control

But while all of this is good, is it really beneficial to wait for the Cyber Assistant to apply for your 501(c)(3) tax exempt status? After all, the idea for the Cyber Assistant dates back well beyond 2003 and the IRS has promised its release year after year.

Here are some reasons you should not wait:

Benefits of obtaining 501(c)(3) status that may apply to your organization include discounts on postage, exemption from state and sales taxes, property tax exemptions, and eligibility for private and government grants. In determining whether or not to wait, you need to determine if you can afford to miss these benefits.
Your 501(c)(3) status will be retroactive to the date of your incorporation as long as you submit your 1023 application within 27 months of being formed. This means that previous donations to your organization may qualify as tax deductible contributions. If you submit your1023 application after this, you will lose this benefit and be required to submit additional paperwork.
Delays and technical issues may plague the Cyber Assistant for many of its initial months once it is released. Although the IRS has designed it with the end-user in mind, good intentions do not always mean good implementation. As with most new software releases, the Cyber Assistant will not be immune to bugs and technical issues, which may add delays to processing your 1023 application. Furthermore, with the stated lower filing fee, I would guess that there will be more applications than ever…leading to further delays!

Above all, you should know that the Cyber Assistant will not make foolproof the 1023 application, just make it more convenient. The point of the Cyber Assistant is to refer you to previous IRS publications when you arrive to a question that you do not know how to answer. But this still means that you will have to read that IRS publication and try to figure out what they are saying! In some cases, the Cyber Assistant will provide broad advice on certain subjects but that will not replace professional advice to your specific organization and questions. So weigh your options carefully when you are considering whether or not to wait for the Cyber Assistant.

Information taken from:
Advisory Committee on Tax Exempt and Government Entities
http://www.irs.gov/pub/irs-tege/act_rpt2_part1.pdf

Critical Element Of A Nonprofit Grant Proposal

Nonprofit Marketing Professional Chris Romero — Thu, 08 Oct 2009 17:12:16 +0000

Many non-profits do not take the time to hash out an estimated budget for their programs before embarking on the grant proposal process. However, establishing a budget is an essential step in the operation of every organization, regardless of whether or not they are seeking grant funding. Without conducting some research regarding costs and making financial calculations, a non-profit cannot accurately determine how much money they need in order to achieve their goals, and therefore do not know the amount of funding they should request from foundations.

Fortunately, The Foundation Center offers a free online Proposal Budgeting Basics course:

“This online course is designed to help with the basics of developing a project budget, and it is geared for those who have general knowledge of proposal development. (Beginners might want to take the Proposal Writing Short Course.) When you complete this course, you will know:

The basic components of a project budget
Different types of financial documents often required for proposals
How overhead costs and fringe benefits may be incorporated within the budget
How to access resources on the Web, which provide templates of project budgets”

You do not need an accountant to prepare your non-profit organization’s budget; however, if you have little knowledge about project budgeting, hiring an accountant can be useful the first time around.

Here are a few additional resources that will aid in preparing your organization’s budget:

Nonprofit Guides provides a sample budget, proposal cover letter, letter of inquiry, proposal, and other helpful examples.
The Cleveland Foundation’s website offers a Grantee Toolkit including sample templates for a project budget request.
Register on the CharityNet USA website and gain access to a variety of free non-profit tools and resources.

Avoid Conflicts of Interest in the Nonprofit Sector

Melanie Guin — Wed, 01 Apr 2009 14:14:50 +0000

On a day to day basis I have dealings with a variety of nonprofit organizations, and have discovered one pressing issue that seems to be faced by all organizations, startup and established, big and small-conflicts of interest. Because conflicts of interest can be a serious threat to both an organization′s reputation and their exempt status, administrators must be diligent in avoiding and addressing potential conflicts. The key for nonprofit boards is not to try to avoid all possible conflict-of-interest situations, but to identify and follow a process for handling them effectively. How an organization manages conflicts of interest and assures open and honest deliberation affects all aspects of its operations and is critical to making good decisions, avoiding legal problems and public scandals, and remaining focused on the organization′s mission.

The nonprofit sector depends on the spirit of volunteerism displayed by board members′personal and professional knowledge, experience, and community engagement. These board members can, however, face challenges in carrying out their board responsibilities because of the number and breadth of associations and connections they have. Therefore, nonprofit board members and executives must not only be able to recognize potential conflicts of interest, but they must determine when these conflicts present areas of concern and what to do about them.

While most people say they understand conflict of interest, most people cannot articulate a clear and general statement. They may be able to give extreme examples but cannot identify potential conflict in more mundane circumstances. A useful way of looking at conflict of interest is to turn it around and say that directors should avoid any self-serving conduct. If it benefits the director then the action is suspect. Most theorists allow that if the action benefits everyone in the community then it is not self-serving.

In order to help the board of directors understand and avoid conflicts of interest the board should develop or adopt a written expression of its intentions. Board members should remember that a written code serves as a guideline. It cannot replace careful consideration and an ethical approach. Each member of the Board should be required to acknowledge acceptance of the policy on an annual basis, and the policy should be reviewed at the initiation of all Board meetings. Finally, keep these things in mind to help you assure that your organization does not face potential conflict:

Full Disclosure to the board – Since when most conflict situations arise only a couple of people in an organization know, full disclosure can establish good faith among boards.
Distancing Oneself From Potential Conflicts – A Board member should excuse himself from portions of the meeting that may lead to any potential conflict, in addition to abstaining from voting on matters that may pose a conflict.
Best Interests In the Forefront – Create an arrangement that decides with out ones′ involvement in certain discussions, that the best interests of the organization, not that board member, will be emphasized.
Compensation – If a board member is compensated in any way by a nonprofit, make sure their pay is either fair market value or less, a common mistake among boards.