In This Issue: Charity? Or Mission-Driven Business? Changes in the IRS Form 990 for Smaller Nonprofits Please Don’t Attend This Event! Internet Resources for Nonprofits Two Great Books Available Now Online Book Order Form How Can I Help You? Take This Quickie Quiz What People Say About Jean Block Sign Up for Future Newsletters! If you find this newsletter helpful and interesting, there’s only one way to keep receiving it  - become a part of the email subscription list. If your email address changes or you want to add a second address, just send me an email with the new or additional information so you don’t miss out on a single issue. IMPORTANT: Remember to include your email address printed carefully and clearly! THANKS! Click here for the electronic form "I love your newsletter! It's refreshing, fun  and filled with helpful hints" Toni Paglia, Director of Development, The ARC Syracuse, New York

Although I have written about this issue in the past, it bears repeating, so I hope you will read carefully and give some thought to how you might diversify your funding base.

Perhaps you have already discovered that traditional funding sources are not as easy to tap into in many ways. For example, corporate funders are less willing to support special events and want to invest in your ability to be more self sustaining. Many donors are increasingly interested in outcomes and results. Federal monies are being redirected and are shrinking.

But your agency still needs funds to support and enhance its mission, doesn't it?

It is time to consider ways to diversify your funding base. It is time to consider social enterprise. While this concept has been around for more than twenty years, more and more interest and emphasis is being placed on the concepts of earned income.

What is social enterprise? Social enterprise is not typical fundraising such as annual campaigns, grant writing, special events or other types of income that require you to work as hard to repeat it as to get it in the first place. Think of traditional funding as a funnel—you fill it, everything drains out the bottom and you have to scramble to refill the top of the funnel...constantly.

Social enterprise is money you have earned that you control. It is unrestricted income. You can use it to fund administrative costs, to enhance current programs and services or to develop new ones. In time, earned income builds on itself and should constantly increase.

Keys to successful social enterprise include several things. First, your organization must be willing to invest the necessary resources of time, money and personnel into doing it right the first time...not jumping into an earned income venture without a clear understanding of what is involved. You will need to build a team of entrepreneurial thinkers—both board and staff and others—who understand that the journey to social enterprise will require fundamental and systemic change in the way your organizations thinks abut itself and the ways it does business.

Through my second consulting/training business, Social Enterprise Ventures, we have learned what works and what doesn’t for an organization to be successful in social enterprise. Our new training program called Expedition has seven modules that lead an agency toward a goal of more money for more mission:

• Internal organizational focus, goals and desired outcomes, stakeholder communication planning.
• Identifying assets and opportunities based on current core competencies.
• Venture market research part I—the customer(s).
• Venture market research II—the competition.
• Costing, breakeven, financing and UBIT.
• Sales and promotion planning
• Business plan development.

Are you ready to diversify and become more self-sufficient? If so, visit www.socialenterpriseventures.com to learn more about Expedition and Road Trip or call me to discuss how you can learn the program and become a certified trainer, using this as earned income for your organization or agency.

It’s Time!

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Did you know…

Beginning January 1, 2008, changes in the IRS Form 990
will affect smaller nonprofits—those with
less than $25,000 in annual gross receipts.

Now these small nonprofits will be required to submit an annual electronic notice. The new filing requirement applies to tax periods beginning after December 31, 2006.

A few nonprofits are exempt from the new filing: organizations that are included in a group return, private foundations required to file Form 990-PF and Section 509(a)(3) supporting organizations required to file a 990 or 990-EZ.

If this new requirement applies to your organization, you should have received a letter from the IRS. If not, visit www.irs.gov/pub/irs-tege/epostcard_faqs_final.pdf to learn more. The new form is called Electronic Notice for Tax-Exempt Organizations Not Required to File Form 990 or 990-EX. It is also known as the e-Postcard.

The IRS stresses that only electronic filing will be accepted—no paper forms. The Pension Protection Act (2006) allows the IRS to revoke the tax-exempt status of any organization that fails to meet its annual filing requirement for three consecutive years...and this requirement now applies to small tax-exempt organizations and the new e-postcard.

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Is your annual appeal getting stale? When you ask Board members to bring a list of 25 people they’ll ask for money, is there no quorum? Getting tired of all the resources invested in special events?

This year, try holding a Non-Event! What is it? Well, that’s the point—it isn’t! Here is how it works:

1. Brainstorm a fun (or serious) theme for an event that relates to your mission, your community, or is way out there: a 175K run kicking off at noon in mid-summer...a kayak trip down the river in mid-winter...a huge and expensive banquet and ball…a new year’s eve party in July...you get the idea.
    
2. Develop a non-invitation to the non-event. Include reasons not to attend, each with a price, starting with the highest value first, of course.
    
3. Develop your mailing list. Include all from your agency mailing list. At a Board meeting, put up the flip chart and ask every Board member to identify the number of invitations they will send. Don’t worry about vetting the lists...if someone gets more than one invitation, it adds emphasis.
    
4. Print invitations, mailing envelopes, return envelopes and a response card repeating the reasons not to attend or participate. The envelops for the agency mailing list have the agency’s address; the envelopes for the Board to send are both blank.
    
5. Send invitations. Board members will address and mail their own with their return address. Board members will write a personal note in each invitation they send. Board members mail their own invitations and note their initials on the respond card so you can track their success.
    
6. Thank every donor who responds. Board members thank those that are returned to them and forward to the agency for an additional thank you. Add all respondent’s names to the agency’s master mailing list for other important mailings.

Warning: From experience, I suggest that you include the date and time but not the place, or the place and not the date...some people just won’t ‘get’ it and show up!

Variation: Hold a virtual event by creating and sending your invitation via email. You’ll need to have credit card availability on your web site for this and probably some way to email in bulk without being shut down as a spammer. If you need help with an email event visit www.nonevents.com. You might also visit www.afp-net.org/resource_center/fundraising_news for examples of invitations, reply cards and envelopes.

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Keep up to date with nonprofit governance issues at www.BoardSource.org and www.theindependentsector.org.

Read the latest statistics about giving in America at www.givingusa.org.

Locate corporate giving sources easily at www.foundationcenter.org. Monthly, annual and two-year subscriptions are available at cgonline.foundationcenter.org.

A fantastic magazine for nonprofits of all sizes is available at www.fundraisingsuccessmag.com.

A wealth of information at all levels is available at the Association of Fundraising Professionals site at www.afp-net.org.

Learn more about social enterprise at www.sealliance.org.

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Now you can add two great books to your agency library. The ABCs of Building Better Boards is just what you need to improve your Board’s potential. It includes ideas for recruitment, retention and recognition and has some great forms for you to copy and use.

The Association of Fundraising Professionals says of this book: “Here is a book that every senior fundraiser responsible for board recruitment and development should read once and then review annually...takes up where books full of theory fall short...give it a chance and you will discover a gem to be treasured.”

Learn how to deal with unproductive Board members and how to better define the roles of staff and Board. There is a chapter on financial and fiduciary facts, one on simple parliamentary procedure and much much more.

Discover how Board Job Descriptions and annual Commitment Letters will dramatically improve your Board’s effectiveness. See how a truly effective Nominating Committee will lead to a better Board.

Get good ideas for more efficient Board management and administration, including how to set up and manage effective committees.

It’s only $24.95 plus shipping and handling. Take advantage of a volume discount of up to 20% and give this book to all new Board members as part of their orientation.

The 3rd Edition of Fast Fundraising Facts for Fame & Fortune is full of ideas to improve your fundraising, including how to ask effectively, special events essentials and new ideas for fundraising.

Help volunteers get over the fear of asking for money and in-kind resources for your organization. Learn how marketing principles will make fundraising easier.

Learn about Jean’s Ten Rules for Fundraising Success and apply them to your organization immediately. This book puts the FUN into FUNDraising and gives good examples and ideas that really work, rather than using hard to follow formulas and theories.

It’s only $24.95 plus shipping and handling. Take advantage of a volume discount of up to 20% and give this book to all new Board members as part of their orientation...

Or buy both books for only $45.00 plus shipping and handling. Order your copies today!

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Please give me a call if you want to turn any NO into a YES. I can help with:

• turning your Board into a dynamic group of volunteers,
• facilitating a strategic planning session,
• analyzing your current fundraising and suggesting some new ideas, and
• training volunteers and staff in becoming more effective fundraisers.

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Here is what people have said about my training and facilitation:

“You certainly shifted my paradigm. After hearing you last Friday, it is the first time in 11 years as an ED that I was excited abut fund development. And you got my Board members to that point as well.

Kay Hopper
RDC for Children, Richardson, TX

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“Your seminar in Dallas was the best I ever attended. You are wise and hilarious.”

Mary Jo Dorn
Catholic Charities of Dallas

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"Jean conducted an extremely well organized and productive [Board] retreat, one that I can say with confidence that our members count as the finest ever conducted for us. Jean's follow-up report was in-depth and meaty, and both Board and staff have referred to it time and again. The knowledge of boardsmanship the members took with them has made a remarkable difference in their levels of commitment and support."

Eileen Cook, Executive Directorr
Casa Esperanzaa

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“Your training was invaluable to me. I dreaded doing this because I couldn’t even sell someone a candy bar in the past but I was inspired by your advice to try. I raised about $377,000!"

Joan Shepack
Keystone Botanical Garden, El Paso, TXX

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"I attended the Corporate Sponsorship Workshop - WOW! You were amazing! What an OPPORTUNITY for me!!

Your presentation style was EXCELLENT. By far the best workshop I've been to in a long time (content and style both!)."

Vicki Kopplin
Epilepsy Foundation of Minnesota

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"As a senior-level development officer, I have a hard time finding useful workshops. Jean's programs should be required for even us old CFREs."

Trisha Dunbar
Visiting Nurse Association, Dallas, TX

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Jean Block Consulting, Inc.
7915 Cliff Road NW
Albuquerque NM 87120

(505) 899-1520
Fax (505) 890-5285
Email:

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