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Volume
10, Issue 2 - March 2008 |
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"I
love your newsletter! It's refreshing, fun
and filled with helpful hints"
Toni Paglia,
Director of Development, The ARC
Syracuse, New York |
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Making Your Organization
Remarkable...Not Just Good |
There are lots of How To books written about nonprofits and effective
management , including Jim Collin’s Good to Great and his short
Good to Great for the Social Service Sector, which are great resources.
And now there is another terrific resource that I highly recommend:
7 Measures of Success - What Remarkable
Associations Do That Others Don’t, published by ASAE and The
Center for Association Leadership.
Not an association? Doesn’t matter! Get it today! Read it! Incorporate
its findings into your organization!
To write the book, researchers plowed through mountains of data from 50
diverse national organizations and found that remarkable associations
all did the same 7 things that made them remarkable instead of just
good.
The
7 Measures of Success fall into three broad categories:
Commitment to Purpose, Commitment to Analysis and Feedback and
Commitment to Action.
Commitment to Purpose. The first two
measures fall into this category.
- A customer service culture,
expressed not just in words framed and hung on the wall in the lobby, but a
true ‘we’re here to serve you’ approach that not only permeates all
individual encounters with members [and all stakeholders] but also is built
into organizational structure and processes.
- Alignment of Products and Services with Mission
demonstrated by an unwavering commitment to deliver products and services that
are consistent with mission, regardless of changes even in the midst of changes
in the external environment...in other words, not allowing ‘mission drift’ to
follow money or other resources.
Commitment to Analysis and Feedback. The
next three measures fall into this category.
- Data-driven strategies. The
remarkable organizations have expertise in gathering information and has
processes for sharing and analyzing the data that drive appropriate actions.
In other words, decisions are based on fact not assumptions.
- Dialogue and Engagement means that
internal conversation constantly occurs among staff and volunteers about the
organization’s direction and priorities. There are no ‘silos’ in remarkable
organizations and information is shared easily.
- CEO is a Broker of Ideas. Even if
the CEO is a visionary leader, the remarkable CEO facilitates visionary
thinking throughout the organization and at all levels.
Commitment to Action. The final two
measures appear in this category.
- Organizational Adaptability.
Remarkable organizations learn from and respond to change - although they
are willing to change, they also know what not to change [based on
Measures 1 and 2, for example]. These organizations are not afraid of
failure and they learn from any mistakes made.
- Alliance Building. Remarkable
organizations that are secure and confident seek partners and projects that
complement their mission and purpose, not willing to be and do
less.
The book is easy to read, filled with insights and specific examples of ways
to incorporate what made the remarkable organizations remarkable - things
you can begin to do immediately to enhance your organization.
The nine organizations that made up the study group for the book are: AARP,
American College of Cardiology, American dental Association, Associated
General Contractors of America, Girls Scouts of the USA, National
Association of Counties, Ohio Society of Certified Public Accountants,
radiological Society of North America and the Society for Human Resource
Management.
You can order your copy from
www.asaecenter.org, Amazon.com, or
find it in bookstores.
Here’s an idea - contact me about facilitating your next planning meeting
around the 7 Measures!
Back to Table of
Contents
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Reporting Special Events Income on the IRS Form 990
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Once
again, I offer good advice from Rhonda Williams, CPA. This time she discusses
Special Events Reporting. This reminds us that our tax professional must
understand nonprofit accounting principles!
Fundraising events are reported on Line 9 of Form 990 and are called “Special
Events and Activities.” Fundraising expenses are reported in Column (C) of
Section II – Statement of Functional Expenses. Fundraising expenses are any
direct or allocated expenses whose sole purpose is to raise funds for the
organization. Most organizations use the term “fundraising event” when they mean
“special event.”
A special event or activity is one whose primary purpose is to raise funds by
offering goods or services that have more than a nominal value (compared to the
price charged) for a payment that is more than the direct cost of those goods or
services, e.g. dinners, dances, and carnivals. Buyers pay more than the retail
value of the goods or services they receive and the excess is a charitable
contribution. Event expenses reportable on Line 9 are the costs of those goods
and services: food, facility rent, entertainment, etc. Fundraising expenses
related to a special event are reportable in Section II and include printing and
mailing the invitations, advertising, etc.
Fundraising expenses not connected to a special event are reported in Section II
and include payments to professional fundraisers, printing and postage for donor
solicitations (or an allocation of such costs if a donation request is included
in a newsletter), and the payments (or an allocation of the payments) made to
anyone who is compensated for writing grant applications or spending part of
their time “fundraising.”
For an event to be considered a special event, participants must pay for
something that is unrelated to the exempt activities of the organization
(fundraising is not an exempt activity). If the organization holds a dinner to
honor its grant recipients and the charge for the meal is its retail value, it
is not a special event. If the organization holds a dinner and the ticket price
includes the retail value and a contribution portion, it is a special event. Any
activity that only generates contributions is not a special event. Straight cash
donations
and that portion of the ticket price which is a donation are reportable as cash
donations on Line 1 of Form 990. Donated goods are reportable as noncash
donations on Line 1. If those goods are used in the special event, they are also
reported as expenses on Line 9b.
To avoid IRS penalties, the organization must place a fair retail value on the
goods and services received by the buyer of a special event ticket. Whether the
organization received the goods or services by purchase or donation is
irrelevant when determining the fair retail value. Though they are included when
calculating the retail value of a special event, donated services and space are
not reported as income for tax purposes on the 990 (though they can be included
in the answer to Question 82).
The whole point of a fundraising event is to attract donations to support an
organization’s exempt activities. Isolating the income and expense of an event
on line 9 makes it easy to see if the event made or lost money. Some
organizations believe that if sponsors underwrite the costs of an event, the
event has made money.
That is incorrect.
If ticket prices do not cover expenses, the shortfall is covered by charitable
donations for which the donors got tax deductions. If the event loses money,
either the retail value of the ticket is too low or not enough tickets were
sold. If the retail value of the ticket is too low, then the contribution
portion of the ticket must be too high and the organization could be penalized
by the IRS for providing fraudulent acknowledgments to the buyers. Public
charities must keep in mind that the main purpose of a special event is to
attract funds to support worthy causes, not to provide “fun times” for the
organization and its friends.
An event that loses money reduces funds that could be used for charitable
purposes and should be discontinued.
Rhonda G. Williams, CPA, a Senior Tax Manager for Barraclough & Associates, PC
in Santa Fe, New Mexico.
She gives workshops for nonprofit organizations and teaches continuing education
classes on nonprofit topics for the National Business Institute. Her monthly
newsletter “Nonprofit Notes” goes to approximately 150 organizations in New
Mexico. Rhonda is licensed to practice accounting in Oklahoma and New Mexico
and is a member of the American Institute of Certified Public Accountants and
the New Mexico Society of Certified Public Accountants.
Back to Table of
Contentsts
If
you are interested in learning more about how you can diversify your funding,
visit www.socialenterpriseventures.com to learn about
Expedition™ and Road Trip™ training.
And if you wonder whether social enterprise is right for your organization,
contact to sign up for a live Internet webinar
that will explain the principles and answer your questions.
To receive our free email newsletter about social enterprise, contact and just ask to be included.
Back to Table of
Contents
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
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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!
Order Now So You Don't Forget
Go to the Order Form to order your copies of
The ABCs of Building Better Boards
and
Fast Fundraising Facts For Fame & Fortune ©
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Back to Table of
Contents
HOW CAN I HELP YOU?
TAKE THIS QUICKIE QUIZ
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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.
Back to Table of
Contents
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
“Your seminar in Dallas was the best I ever attended. You
are wise and hilarious.”
Mary Jo Dorn
Catholic Charities of Dallas
"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
“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
"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
"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
Jean Block
Consulting, Inc.
7915 Cliff Road NW
Albuquerque NM 87120
(505) 899-1520
Fax (505) 890-5285
Email:
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"I
love your newsletter! It's refreshing, fun
and filled with helpful hints"
Toni Paglia,
Director of Development, The ARCRC
Syracuse, New Yorkk |
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