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Monday, June 23,
2008 |
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The NPT Weekly Update:
Table of Contents
News
Update
Mail Versus Online: It's Lifestyle, Not
Generational
Tips of the
Week:
Finance ...
Measuring
long-term investment income
Communications ...
Donors and nonprofits
separated by a common
language
Major Gifts
...
Securing the big one takes
practice
Click here for all useful
Tips
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News
Update
Mail Versus Online:
It's Lifestyle, Not Generational
By Mark Hrywna
Back in 1995, people were
transfixed by the O.J. Simpson trial, had more VHS tapes than
DVDs, and probably couldn’t point to Iraq on a map. And,
direct mail fundraising was supposed be starting a slow
death.
A survey of progressive donors by The Mellman Group and A.B.
Data Group that year warned that more than 40 percent of the
progressive donor base would be dead by 2005, making it
“imperative to reach out to young progressives to
replenish this critical donors base.” At the time, the
average age of a direct mail donor was 65, with just 6 percent
younger than 40.
(Click
here for more)
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Tips of the Week
Finance ...
Measuring
long-term investment income
Keeping track
of finances, especially for someone who is not an expert in such
a field, can be a baffling job. For the uninitiated, even
keeping track of ways to keep track of finances can be filled
with frustration.
In her book
Nonprofit Financial Planning Made Easy, Jody Blazek outlines
four possible ways of reporting long-term investment income. She
also notes that the term “realized” denotes capital
gain or loss from transactions that actually occurred.
“Unrealized” capital gain is the hypothetical gain
calculated assuming securities still held as investments were
sold on the balance sheet date.
The four
measures include:
-
Current
return method. Using this method, actual interest, dividends,
rents or royalties paid are treated as income (unrestricted).
Any realized or unrealized gains or losses added back to or
subtracted from the principal fund (restricted).
-
The overall
return method. This method classifies the current return plus
realized capital gains and losses (those resulting from actual
sale of the investement asset) as operating (unrestricted)
income.
-
The total
return method. This method reports overall return actually
received plus or minus unrealized gains and losses as
unrestricted income.
-
Constant
return. Based on a historical average amount, a fixed annual
percentage of the value of the investment pool is treated as
unrestricted income.
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Communications ...
Donors and nonprofits separated
by a common language
Even as it faces the
new challenges of the 21st century, the nonprofit sector must
withstand the ageless challenge of staying alive and
relevant.
Lack of information, or even misinformation, can prove to be
a barrier to nonprofits in trying to fulfill their missions,
just as awareness will be a big help.
Irv Katz, president of the National Human Services Assembly
in Washington, D.C., has offered several suggestions that he
thinks can help to better position the sector:
- Adopt more descriptive, precise common language. Terms like
“nonprofit enterprise” and “civic
sector” could be better understood through common
usage.
- As those in the sector adopt such language, stop using the
word “charity,” especially when it does not apply.
Many top “charities” do not distribute resources to
those in need.
- Weave together the strands of effort in which many in the
sector are engaged in their organizations to attract and develop
talent.
- Strive collectively to reframe and reintroduce the civic
sector and civic enterprise as integral to people’s lives
– as citizens and potentially as a career focus, both for
young people and for people seeking encore careers.
- Grow the pool of talent for each individual field and for
the sector. Strive diligently to meet the talent challenges of
individual organizations, but join in collective
efforts.
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Major Gifts ...
Securing the big one takes
practice
Yes, let’s secure that major gift. And it was done.
Wouldn’t it be nice if it all came that easily?
At the Association for Fundraising Professionals (AFP)
international conference on fundraising, Priscilla Bratcher,
director of development of Carolina Performing Arts at the
University of North Carolina at Chapel Hill, offered several
views on securing the major gift.
Bratcher used her arts involvement and background to compare
the solicitation of a major gift prospect to a theatrical
performance: script, casting, and rehearsal, followed by the
performance. She said the following considerations are of
importance:
- Analysis of your situation and creation of your own
standard. Think of the size of the organization and fundraising
goals, and additional benefits beyond immediate dollars.
- Prospect identification and research. Research profiles
should contain name, address, birth date/place, family members,
educational achievement, professional achievement,
board/community involvement, other causes supported, wealth
analysis, connection with your organization.
- Issues affecting solicitor assignments. These include
relationship to prospect, qualifications of solicitor and your
intuition
- Training and preparing of volunteer solicitors. This
includes formal training sessions, fully informing the volunteer
about the case and assigning a staff liaison to support the
volunteer. It also includes communicating job expectations to
volunteers and starting with the best prospects in order to
build confidence.
- Setting up the visit, making the visit, following up
on the visit.
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Copyright ©
2008 The
NonProfit Times.
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