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GRANT THORNTON

 

 

 

 

Thursday, May 18, 2006

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With more than 1.5 million nonprofits in the United States—where does your organization stand?

  • Learn how other nonprofits are faring in this competitive funding environment
  • Find out what your peers think are today’s most pressing nonprofit issues
  • Benchmark your organization against other nonprofits

Start by taking Blackbaud’s 3rd annual “State of the Nonprofit Industry" survey, and enter for a chance to win a new computer!

  

 


In this issue:

 



Special Report

IRS Finds Abuse At All 40 Credit Counselors It Audited


Fundraising Tips

 

 

Fundraising...Melding the art with the science if giving

 

Media...9 tips for pitching the media
 

Planned Giving...4 tips for gifts of securities


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IRS Finds Abuse At All 40 Credit Counselors It Audited

 

     Internal Revenue Service (IRS) this week released a report on tax-exempt credit counseling agencies and announced further steps to ensure these organizations comply with the law.

     During the past two years, the IRS has been auditing 63 credit counseling agencies, representing more than half of the revenue in the industry. To date, the audits of 41 organizations, representing more than 40 percent of the revenue in the industry, have been completed. All of the completed audits have resulted in revocation, proposed revocation or other termination of tax-exempt status.

     Each year many Americans turn to credit counseling organizations for financial education, advice and assistance. Furthermore, under the Bankruptcy Reform Act of 2005, anyone who files for bankruptcy must first visit one of these agencies.


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Fundraising Tips

Fundraising...

Melding the art with the science if giving

 

     Fundraising is both an art and a science. The art lies in fostering relationship with people. The science focuses on the utilization of data, research and testing. To raise the effectiveness of nonprofits, The Complete Guide to Nonprofit Management, Second Edition, by Smith, Bucklin & Associates, Inc., provides the following checklist for fundraisers to consider:

-- Clearly identify your mission and financial goals through a well-written Case for Support. Construct criteria and specific reasons that people and/or organization should give to you.

-- Develop a realistic list of prospects and an action plan to approach these sources annually.

-- Research potential funding sources and search for contacts to these funders.

-- Remember that individuals give most of the money in America. Focus your attention on developing relationships with people.

-- Identify and recruit good board members. They should have the capacity to provide wealth, wisdom, and work. They will be the foundation for all of your fundraising endeavors.

-- Send personal thank you letters immediately after all visits.

-- When a gift comes in, send a thank you promptly.

-- Be prepared for your visits. When meeting with prospects and donors, know your case, know the prospect, listen for common interests, anticipate objections and always ask for a specific gift amount.

-- Believe in yourself and in the value of your organization.

-- Remember that your best prospect is the one who contributed to you last.

 


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Media...

9 tips for pitching the media

 

     Pitching the media can be a tricky balancing act. Along with competing with the good works of thousands of other charities, nonprofits need to come to terms with the fact that what is often relevant in their circle is not necessarily groundbreaking to the larger news media.

     Short of a pulse-stopping news story, nonprofits can take a variety of angles to gain media exposure according to Author Katya Andresen, in her book Robin Hood Marketing: Stealing Corporate Savvy to Sell Just Causes.

-- Provide an exclusive. Media outlets may assign more significance to a story if it can report it as an exclusive. Scooping the competition makes a station or publication look good

-- Make it different. A story that is new, novel or original is news due to a “gee whiz” factor, which lands stories on the front page or top of the hour.

-- Involve a big name. We live in a star-obsessed culture where celebrities can add pop to what the media would normal consider a less interesting story.

-- Be at the extreme. Any kind of superlative helps, such as first, biggest, smallest, oldest.

-- Play up the stakes. Most types of controversy or conflict are news. The media loves stories with a protagonist and antagonist and the drama and emotion each brings to an issue.

-- Be part of the solution. The media often reports on the negative. Nonprofits can positions their causes as a “good news” story that provides solutions to an existing problem.

-- Put a face on the story. Make a compelling human-interest case with a human face.

-- Make it local. A national story given a local angle can be pitched to community outlets.

-- Provide pictures. Great visuals always enhance a story for television and print media.

 

 
 

 
 


Planned Giving...

4 tips for gifts of securities

 

     People can donate stocks and bonds (including mutual funds) in three different ways according to author Robert F. Sharpe, Sr., in his book Planned Giving Simplified – The Gift, the Giver, and the Gift Planner. A security can be given outright, which is worth more now than what they had previously paid; it can be sold to a nonprofit at a reduced price; it can sell a security that has declined in value since it was purchased and donate the proceeds to an organization.

     Sharpe lists a number of ways for people to transfer securities to a nonprofit organization:

     -- Have a broker transfer the stock certificate to the nonprofit by placing the nonprofit’s name on the certificate (use a stock transfer assignment form).

     -- Complete the back of the stock certificate and sign their name exactly as it appears on the front of the certificate. Have a stockbroker or bank officer guarantee the signature.

     -- Send the unsigned stock certificate in an envelope and a “Form Separate from Stock Certificate” (known as “stock power”) in a separate envelope. Sign the form and have the signature guaranteed by a bank officer or stockbroker.

     -- The best way for prospective givers to transfer securities involves writing the holder of the securities and asking for instructions

 


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