Research:Nonprofits Focus on Cash, Not Volunteers

From the Erie Times-News. This story about research showing that nonprofits and funders alike seem to focus on cash and not better utilization of volunteers to help bridge gaps in service.

Poll: Nonprofits focus on cash, fail to capitalize on volunteer expertise

While nonprofits often say they need more pro bono support, nearly 40 percent plan to spend upward of $50,000 on outside consultants this year, according to a recent survey.

The research suggests corporate grant makers and nonprofits are more focused on giving and getting cash rather than making effective use of skilled volunteers to offset falling contributions, said Evan Hochberg, national director of community involvement for consultancy Deloitte LLP, which commissioned the poll.

"The challenges are that businesses and nonprofits are still stuck in the old school thinking when it comes to volunteerism, treating it as simply a nice thing to do," Hochberg said. "But if we're serious about making volunteerism a powerful solution, we have to be more thoughtful in how we leverage intellectual capital and value skills and donation of time as currency."

About a quarter of nonprofit respondents said they have no plans to use skilled volunteers in any capacity in 2009, and about a third said they do not have the appropriate infrastructure needed to successfully deploy volunteers. Meanwhile, 95 percent said there is a great need of pro bono -- or no-cost -- support, especially in the current economic climate.

Don't Panic over the Economy: Dr. Phil Geist

Check out Phil's presentation from May 14, 2009 "Dont panic over where the economy is right now." Dr. Philip R. Geist, a Certified Business Analyst with the Small Business Development Center of the University of North Florida, in Ocala, Florida, discusses the American Recovery and Reinvestment Act 2009, the Recovery Act, funding for small businesses with stories and information for easy understanding. This edited recording is a portion of a speech presented at the Citrus Lodge, in Herando, Florida, funded by the Recovery Act.
Video produced and edited by Jannet Walsh, Workforce Connection, Ocala, Florida Workforce Connection © 2009

Nonprofit Restaurant Thrives: Social Entrepreneurship

My wife subscribes to More Magazine and I am surprised at how many good articles they publish about business, entrepreneurship and reinventing oneself. This article is about a nonprofit restaurant that does things very differently than others. Considering how many restaurants have failed in this down economy, this story written by Jennifer Margulis is particularly poignant.

 Her Restaurant Breaks All the Rules, and Thrives

"Boiler Room" Nonprofit Fundraising Crackdown in Florida

This has been a nationwide problem as long as I can remember. Sometimes a nonprofit organization (usually an association) doesn't bother with creating relationships that are meaningful for long term fundraising. Instead the go for fast money. They hire a "boiler room" fundraising agency to make calls to local citizens posing as nonprofit employees. The fund raising call center keeps most of the money donated over the phone. The contracting nonprofit takes what is left as found money as there was no effort on their part. I remember a PBA drive in New Jersey in the early 1990's. The callers were soliciting to send deserving kids to an "ice show". It turned out to be two skaters on a piece of plastic that was 20 feet by 20 feet. Let the donor beware!

Here is the article as presented by the South Florida Business Journal.

Florida has joined a nationwide crackdown on fraudulent charitable solicitors who claim to help police, firefighters and veterans.

The effort, dubbed Operation False Charity and announced on Wednesday, was led by the Federal Trade Commission, along with 61 attorneys generals, secretaries of state and other law enforcement agencies.

The actions were filed against 32 fundraising companies, 31 individuals and 22 nonprofits or purported nonprofits on whose behalf donations were solicited, according to the Florida attorney general’s office.

“These defendants allegedly tricked consumers into giving by claiming affiliations with law enforcement and veterans groups or misleading consumers about how much of the money donated would actually go to those groups,” according to a news release.

As part of the operation, Attorney General Bill McCollum said Florida and numerous other states have filed a lawsuit against Community Support Inc., which solicits donations on behalf of more than 35 charitable clients, but allegedly kept more than 80 percent of donor money.

In addition to misrepresentation, the organization is alleged to have harassed callers, falsely claimed to be law enforcement or veterans, or falsely claimed a person had previously made a pledge when they had not.

Community Support has agreed to stop all improper or illegal conduct, and a settlement is imminent.

The company also will have to regularly report information to the states and be more responsible for its employees’ training, conduct and representations made to consumers. Community Support also agreed to reimburse the states $200,000 for the costs of the investigation.

Consumers are urged before donating to:

• Recognize that the words “veterans” or “military families” in an organization’s name don't necessarily mean that veterans or the families of active-duty personnel will benefit from the donation.
• Check an organization before donating. Some phony charities use names, seals and logos that look or sound like those of respected, legitimate organizations.
• Donate to charities with a track record and a history. Charities that spring up overnight may disappear just as quickly.
• Do not send or give cash donations. For security and tax record purposes, it is best to pay by a check made payable to the charity. Ask for a receipt showing the amount of your contribution.

Nonprofits Suffer When Auto Dealerships Fold

Interesting point made by Melissa Trujillo, in this AP article. As a kid I remember it was always the car dealerships who supported the little league and sponsored a team. Car dealers donated cars to charity for fundraising raffles or put a car up on the par three hole as the hole in one prise at charity golf outings. Our Coggin School of Business here at UNF is named so because of a local dealer's  support.  It appears nonprofit donations are be down from last year among car dealerships who are cutting costs to stay afloat. Those who have closed (or will be closing) are a loss which will not be replaced anytime soon.

Dealers' cuts means less cash for charities

By MELISSA TRUJILLO –

BOSTON (AP) — Jim Dimopoulos can't remember every organization his car dealership helped out in its 36 years of operation: police and fire associations, cheerleaders, baseball teams, even high school yearbook classes in his town.

But now those donations are finished, just like his business.

Seacoast Motors of Salisbury, a small coastal town, closed Thursday after getting word that it was one of the 789 dealerships Chrysler was dropping within weeks as part of its restructuring.

"We did the best we could," Dimopoulos said of donating to local charities. "They are going to have a tough time, a lot of places."

When Chrysler LLC, based in Auburn Hills, Mich., and the General Motors Corp., based in Detroit, close nearly 2,000 dealerships across the country by late next year, many communities will lose key sources of charitable funding — the businesses that helped sponsor everything from Little League to libraries, rodeos to road races. In return for their donations, car dealers got their names printed on jerseys, programs and signs, and customers were often happy to repay that generosity when it came time to buy new vehicles.

"You try to stay involved and support the community and keep your name out there also," said Charles "Buddy" Merrill IV, owner of Keystone Dodge, in Allentown, Pa., which was on Chrysler's cut list.

Merrill said he sponsors children's baseball, softball and peewee football teams and charity golf outings. And while he retains Kia and Isuzu truck franchises as well as used cars, he said he would probably have to reduce his charity work.

"Before I could spread the expense among three different franchises, so I'm sure I'll tighten the belt a little bit," he said.

Charities across the country were bracing for reduced help not just from the dealerships but also from their laid-off employees.

Robbie Baxley, a board member of the Lions Club, an international service organization in Mullins, S.C., said he expected some of the club's members to move away after losing their jobs at the local Chrysler dealership.

"We lose all the way around with that deal," Baxley said. "No doubt about it. It hurts when you lose someone that's been around as long as they have."

Smaller towns could expecially feel the pinch, because there are few other businesses to turn to for donations.

The Eastern Oregon farming community of Hermiston may have to find someone else to sponsor its local pro rodeo because Dodge dealer Larry Campbell is on Chrysler's list for closure, Mayor Bob Severson said.

Douglas Graft, one of the owners of Graft Chrysler Dodge-Jeep in Scottdale, Pa., said his company had already reduced its charitable activities because of the recession and poor sales.

"We cut a lot of things out this year because of the economy," he said. "Spring and summer stuff, we just couldn't do it with the automobile market. We do the YMCA every year, but they have other sponsors. We do a community car show, and they'll just have to find another company."

But it's not just the local charities that will be hurt, said Ray Ciccolo, who represents Massachusetts' car dealers on the National Automobile Dealers Association's board of directors. The association's members give money each year to be distributed by the national and state organizations, such as the several million dollars donated to the employees of dealerships affected by Hurricane Katrina.

"When you have a shrinking dealer body," Ciccolo said, "that's much less we'll contribute to our local charitable foundation and our national charitable foundation."

Some dealerships, though, have vowed to do everything they can to keep helping their communities.

"I think the first thing we cut is the more expensive advertising," Ciccolo said. "This type of one-on-one, very personal, where you look someone in the eye and cut them a check, that would probably be the last thing we want to give up."

Ed Schartman's Dodge dealership in suburban Cleveland gives a scholarship to a high school graduate in North Olmsted every year and provides cars for community parades. He vowed that wouldn't change even if it lost the Chrysler franchise.

"Do we intend to stay part of this community?" he asked. "Absolutely."

Dr. Stephen L. Goldstein: Free Fundraising Answers for Nonprofits Via Hotline

Stumbled upon this press release. I would recommend someone in our area try Dr. Goldstein out. There is nothing to lose! He has a blog that looks pretty good as well. Check it out here.

The SBDC will seek to interview Dr. Goldstein in the near future. In the mean time, I would say he has made a very generous offer to the nonprofit community. 

FORT LAUDERDALE, Fla., May 18 /PRNewswire/ -- Totally free, one-on-one fundraising consulting is now available for all Hawaii and U.S. nonprofits 24/7 at www.fundraisershotline.com.

"No boilerplate. Every question personally answered. Hawaii nonprofit fundraisers may ask anything they want--like How can I find donors? or How can I get my board to give more and to ask others to give? It's one-on-one attention," says Dr. Stephen L. Goldstein, creator of the hotline and president of The Nonprofit Institute, Educational Marketing Services in Fort Lauderdale.

"Nonprofits always have a hard time raising money. But many are really struggling in today's bad economy, including in Hawaii. They need immediate professional advice tailored to their specific needs. But most nonprofits cannot afford to hire an expert to give them quick answers to their pressing questions. So, www.fundraisershotline.com gives them personal access to an experienced professional as their sounding-board to increase their fundraising success," Goldstein adds.

That's what's so unique about the hotline. It's quick, efficient, direct--and free, of course. Getting answers from the hotline is simple. Go to www.fundraisershotline.com, fill out the short user form, ask a question, then send it to Dr. Goldstein. There is absolutely no cost or obligation. Every question is answered personally and within 24 hours.

Columnist, author, consultant, TV and radio personality, and workshop leader--Dr. Stephen L. Goldstein is a nationally recognized marketing, communications, and fundraising executive, as well as a trends analyst and forecaster. For more than 30 years, he has developed strategies for nonprofit success.

Dr. Goldstein is now the co-producer and host of "The Forum for Nonprofits," which airs on WNN & WSBR and may be heard 24/7 at www.forumfornonprofits.com. He was the producer and host of "Fundraising Success," a weekly radio program on WXEL, 90.7FM/National Public Radio and still available at any time from anywhere in the world at www.wxelpodcasts.org.

Dr. Goldstein's "Fundraising Guru" columns have appeared in The South Florida Sun-Sentinel and have been a regular feature of the Scripps papers on Florida's Treasure Coast. He is the author of the bestseller, 30 Days to Successful Fundraising.

Goldstein is also the developer of "Fundraising Briefing Books," the basis for the workshops and tailored consulting programs he offers nationwide.

Nonprofits Adopting Social Media

Lini S. Kadaba wrote this piece from Philly.com describing how nonprofits are using social media to do more effective fundraising and host successful events. It is really about telling the story of what the nonprofit has done to accomplish its mission. Tell the story well and fundraising becomes alot easier. Getting the message out via social networks is a natural for nonprofits and it is certainly happening in Jacksonville. The Clara White Mission, St. Johns River City Band, our own organization and many others have either already implemented social networking or are in the process of doing so. In facilitating nonprofit strategic planning, we are seeing social networking or "new media" prioritized as a way to create and maintain positive branding.  "Jack and the Social Media Beanstalk" featuring Damien Robinson is a social media workshop planned for June 26th at the University Club. For more information go here.

Nonprofits tap online networks to raise funds

Living Beyond Breast Cancer has won supporters for one of its biggest fund-raisers with e-mail blasts, brochures, and personal calls to big donors.

But that's so yesterday.

For the first time, the nonprofit based in Haverford is posting to its new Facebook page information on this year's Yoga Unites event, which takes place Sunday. It also is tweeting on Twitter as @YU4LBBC and uploading video to YouTube.

Of course, Living Beyond also blogs, and it shares photos on Flickr, including one of women saluting the sun on the steps of the Art Museum, where the annual Yoga Unites takes place.

As a result, the number of teams signed up for the event has nearly tripled, the group reports.

That's the bottom-line promise of "social giving," which uses online networks to raise awareness and, ultimately, money. Organizations with a cause are "friend-raising" on Facebook, Twitter, YouTube, and elsewhere to bolster that old-as-money objective: fund-raising.

How does it work? Social giving exploits online networks, which offer exponential possibilities for building personal relationships. Once an organization makes a connection to an individual, that person can leverage his or her personal contacts - the old "friends of friends" gone viral. When campaigns also include interactive contests, creative video clips, and real-time information, donating money becomes less of an obligation and more of an experience.

"Everybody saw the success of the Obama campaign," said Jean Sachs, who leads the national cancer group. During the presidential election, lots of small donations through online networks added up to big bucks for the candidate.

Nonprofits across the country - more than 85 percent use social media, according to a new survey - want to replicate that success. In an economy where purse strings are triple-knotted, the strategy has particular appeal.

But even though some national groups, such as the Humane Society, have had huge success reaping donations through social giving, many others have not come up with a successful strategy.

"It's not a magic cure-all," said Rick Cohen, director of membership and technology for the National Council of Nonprofits in Washington. "They're wonderful tools. It's just not automatic, that if you're there, your fund-raising is going to go through the roof."

Social giving at its best, however, can be the gift that keeps on giving.

"It has tentacles," Sachs said. "You have so many more people you can reach. . . . If we can get donations, even small amounts, from lots of people, we can continue to grow our goal."

Despite the tough economy, Living Beyond has bet on social giving to reach its new fund-raising target of $100,000 - twice the amount of last year's goal. So far, so good.

As of yesterday, the event had 690 registrants, compared with 460 at this time last year. It also had 56 fund-raising teams (compared with 22) that so far had collected $96,059, according to the cancer group. An event sponsor also was found through Facebook.

Michelle Zeigler, Living Beyond's communications assistant, said she enjoys the status updates and tweets that allow her to have "two-way conversations" with supporters and that demand about 20 percent of her time. "We have Facebook friends from Africa," she marveled.

Social networks can be a marketing bonanza. "It's the fastest way to get to people," said Bill Cowen, director of the public relations program at Villanova University. "In a downturned economy, it's one of the most cost-effective means of promotion."

A national survey, released in late April and sponsored by three groups that help organizations use social media, found that 86 percent of the 980 nonprofit professionals who responded had joined at least one social network. Nearly three-fourths have a presence on Facebook, and 43 percent on Twitter.

The vast majority of nonprofits have entered the online soiree in the last two years. Nearly 60 percent of Twitter users came on board in the last three months, as the network that allows only mini-posts (140 characters or shorter) has soared in popularity.

"I think there's a lot of experimenting in the sector," said Holly Ross, executive director of the Nonprofit Technology Network, one of the survey sponsors.

Recently, the network tried to raise $10,000 for its scholarship fund through Facebook and other online technology. Its successful approach fit the medium. Ross agreed that if the goal was reached, she would star in her take on Beyoncé's "Single Ladies" video, wiggling her derriere and all.

"I did," she said, laughing. "It's the fun, irreverent nature of the social-media world."

One of the top dogs in successful social giving is the Humane Society of the United States. A February Spay Day campaign that involved a pet photo contest netted $550,000 - largely due to a Facebook application that allowed owners to upload pet profile pictures, write the pet's story, and ask for votes, according to Carie Lewis, the society's Internet marketing manager. Each vote cost $1. Last year the contest (without the ability to post to Facebook) raised $70,000.

"It was brilliant," said Beth Kanter, a scholar-in-residence at the Packard Foundation who writes on nonprofits and social media at Beth's Blog. "You need to reach out to people in the right way."

That's the hurdle that can trip many nonprofits, especially smaller ones that may not have the expertise or staff time to devote to clever contests and frequent updates.

"It's important to understand how this fits into your nonprofit," said Katherina Rosqueta, executive director of the Center for High Impact Philanthropy at the University of Pennsylvania. Some groups might use social media more to share information than to raise money.

Cohen, from the nonprofit council, worries that social media, while low-cost, can distract from a group's core mission. "It's a drawdown on time," he said. "Nonprofits need to focus on doing the public good."

Others caution that fast-paced, informal updates and tweets can backfire if poorly vetted messages get uploaded for the wide world to see.

Living Beyond is still exploring the possibilities and pitfalls of social networks but for now, Zeigler is busy working her connections.

She might post a tweet to 145 followers that touts "studios all over Philly region are offering special yoga classes to raise money for Yoga Unites for LBBC."

And she might update 995 Facebook fans about Living Beyond's latest blog post on a conference; a memorial for a community member who died; or its public-service announcement on YouTube.

"You just keep the cycle going," Zeigler said. "It's exciting to reach people who we never would have otherwise."

Nonprofits as Franchise Owners

The SBDC has certainly seen First Coast nonprofits start for profit businesses. Clara White Mission and Challenge Enterprises are two that come to mind immediately as being entrepreneurial. I do not know of any franchises owned by a local nonprofit, but it is certainly happening elsewhere. There has been a trend in recent years for nonprofits to explore franchises as a way to create another income stream while either employing or training a target population. Ben & Jerry's were early adopters in helping nonprofits get into the ice cream franchise business. This article from the NonProfit Times reveals a resurgence in nonprofit franchise ownership.

Nonprofits Buying Into Franchises

The Evergreen Commons Senior Center, in Holland, Mich., never worked with a franchise before inking a deal four years ago with American Ramp Systems in South Boston, Mass.

The operation differs from the public health club the nonprofit purchased nine years ago. “Part of the decision to have the franchise comes from the uniqueness of the product,” said Larry Erlandson, president of Evergreen. “We determined that the product was very good and they offered services like a call center and marketing for support.”

Social Franchise Ventures, LLC, in Washington, D.C., brought the two parties together. While there is an estimated 900,000 franchise opportunities, Ventures lists fewer than 100 nonprofit-owned franchises.

“We believe partnering with a franchise brand that leverages a nonprofit’s strengths and assets is paramount to a successful social franchise venture,” said Doug Sudell, CFE, of Social Franchise Ventures. “It is of the utmost importance that a nonprofit use a highly disciplined approach when selecting a brand because that can significantly increase their likelihood of success.”

Figures show that franchised businesses provide more than 11 million jobs, or 8.1 percent of the national private-sector workforce with an annual payroll of $278.6 billion, or 5.3 percent of all private-sector payrolls in the United States.

Evergreen runs an in-home care service that could rival other such franchise operations. So taking on a franchise in that sector would not make sense, according to Erlandson. The health club requires no special support, so the ownership of that does not require a franchise arrangement.

“We saw the ramp product at a conference a few years ago,” he said. “We couldn’t recreate that product on our own and it was worth the franchise fee.”

Evergreen contacts rehab centers along with veteran administration facilities, and hospitals. In dealings with those groups, Erlandson saw that a product was in demand and could connect that to Evergreen’s already existing activities.

Deciding on having a franchise could depend on several factors. One could be the timing of your budget needs. Not every organization has the right capital and division for different types of operations or the ability to manage the activity. The organization also needs a board that gets behind the effort 100 percent.

“A danger exists with many nonprofits when they look at a business venture and overestimate how fast they can find a return,” Erlandson said. “Franchises are not a quick fix.”

Does the organization have a high-risk capability? “You have a risk when you start any business,” he said. What will the community think of the organization? “We had some donors question our activity, saying this was creeping away from our mission,” he said.

Franchises do offer another option from fundraising. “As a nonprofit, we regularly keep our eyes open for a business venture to help the organization,” he said.

Fees for service, membership dues, and program fees are just some ways to obtain revenue. Grants and fundraising are other methods. “Business ventures further add a diversity in revenue. This helps the nonprofit avoid depending on any one stream,” he said.

“We’re trying to have a diverse revenue base,” Erlandson said. The franchise offers a potential for a greater return than sticking the investment into an endowment fund.” 

Report on Nonprofit Social Networking

Social networking is a very hot topic in Jacksonville right now with small businesses rapidly raking advantage of free and/or low cost methods of creating relationships and getting their product or services noticed.

Nonprofits in Jacksonville are right behind as the see new ways to reach out and communicate their mission and achievements. Social media allows nonprofits to tell their story in a very cost effective way. 

Locally, Linked-in is the favored social media for conducting business related social networking, with FaceBook and Twitter also being used. While not featured in the article below. many people on the First Coast are on Plaxo as well.

For those of you who do not know where to start, we will be announcing two SBDC sponsored social networking workshops by the end of the week. Stay tuned as we have arranged for some superb presenters who are experts in social media.

Mark Hrywna, presents this excellent summary in the NonProfitTimes about a report just released on nonprofit use of social media.

Social Networks Are Red Hot, Web Sites Are Diddlysquat

By Mark Hrywna

Nonprofits have plenty of room for improvement to their Web sites while their presence on online social networks is growing and expect to continue, according to two surveys released during the Nonprofit Technology Conference in San Francisco this week.

A survey examining nonprofit use of social networking as a marketing and fundraising channel was co-sponsored by Atlanta-based ThePort Network, Inc., NTEN in Portland, Ore., and Common Knowledge in San Francisco. A survey by Ann Arbor, Mich.-based ForeSee Results gauged visitor satisfaction to a variety of nonprofit Web sites.

Commercial social networks might be popular, especially Facebook, but “average community sizes remain small, and presence is relatively short.” More than 86 percent of respondents said they have a commercial social network while more than 30 percent said they have a house social network.

Facebook is easily the most popular commercial social network, according to the survey, at 74 percent, followed by YouTube (47 percent), Twitter (43 percent), LinkedIn (33 percent) and MySpace (26 percent).

While those surveyed prefer traditional marketing channels to promote their social networks, such as email lists, events and their own Web sites, they’re experimenting with new social media channels. Nonprofits are allocating “small but real sources, staff and budget to their social networks according to the survey.” More than half of those surveyed intend to increase social network project staffing over the next year and about 80 percent commit at least one-quarter of a full-time staff person.

“For now, there is very little real revenue generated on those communities via fundraising and advertising,” according to the survey. Less than 40 percent of respondents have raised money via fundraising on Facebook, but 29 percent raised $500 or less during the past 12 months. Only about 9 percent of those surveyed raised $500 or less on MySpace, followed by 6.6 percent on Change.org, 5.5 percent on Twitter, 4.4 percent on YouTube and 1 percent on LinkedIn.

About a third of organizations have built and manage their own house social networks. Among those, about 87 percent said their communities are comprised of 10,000 members or less. About a quarter of those doing it in-house reported fundraising, and a third raised $10,000 or more during the past year.

The average size of a community on Facebook is 5,391 members, with almost all respondents (94 percent) present for two years or less. That might not be so striking when you consider Facebook was launched exclusively for college students in 2004 and only opened up to the public in 2006.

Nearly all of Facebook communities (97 percent) are less than 10,000 members, with three very large communities of 500,000+ members. Discounting the three that skewed the average, Facebook’s average community would be 1,369 members. Only MySpace has an average community that is larger, with 1,905, followed by 291 on LinkedIn, 286 on Twitter, and 268 on YouTube. Change.org, a nonprofit-specific network, had an average 243 members.

Almost 94 percent of organizations reported using Twitter for less than a year. Of those on Facebook, a majority have had a presence for six to 24 months. Twitter is only about three years old, but nearly 60 percent of those on the network joined within the past three months, and 19 percent in the past three to six months.

For those without a presence on social networks, 44 percent said it was because of a lack of expertise, 21 percent specified a lack of budget and 13 percent did not believe that having a presence was a good use of funds.

The number of members and the amount of user-generated content were cited most as the “metrics that include in their definition of success,” at almost 69 percent each. Fundraising was the lowest ranked metric (16 percent) cited as an important variable in measuring the success of their house community.

Almost 1,000 nonprofit professionals were surveyed between Feb. 20 and April 15 about their use of commercial social networks, such as LinkedIn, Facebook, Twitter and MySpace. For complete results of the survey, visit www.nonprofitsocialnetworksurvey.com.

Nonprofit Web sites scored just below the threshold of what’s considered excellence in Web site satisfaction, trailing e-government, e-retail and automotive Web sites, and far behind online banking, according to a new survey.

“Trends in Constituent Satisfaction with Nonprofit Web Sites: Building Membership, Donations and Loyalty through the Web Channel,” included more than 2,000 respondents visiting a variety of nonprofit Web sites to gauge satisfaction with these Web sites.

“Our research shows that the Web site is a colossal area of opportunity for nonprofits suffering from decreased giving,” according to the report by ForeSee Results.

The nonprofit industry still has a ways to go to catch up with other fields in terms of their Web presence. Nonprofits scored a 73 on a 100-point scale used by the University of Michigan’s American Customer Satisfaction Index (ACSI). A score of 80 is generally considered to be excellent. Only online banking scored that high (83) in the study, followed by automotive Web sites (78), and e-retail, and e-government (both 74). “Private sector standards aside, even satisfaction with federal government Web sites slightly edges out satisfaction with nonprofit sites, which may be a sign that it’s time for nonprofits to advance to the next evolution in their sites,” according to the survey.

A satisfied visitor to a nonprofit Web site is:

• 65 percent more likely to recommend the site to others;
• 57 percent more likely to have a favorable overall impression of the organization;
• 55 percent more likely to return to the site;
• 49 percent more likely to donate; and,
• 38 percent more likely to volunteer.

The top two reasons people gave for visiting nonprofit sites are news and events (40 percent) and to stay informed about the organization’s cause (40 percent), while almost one in five (18 percent) specifically go to make a financial contribution.

Key areas of improvement for nonprofit Web sites in general are functionality and the expression of the organization’s image online. Areas that have the greatest impact on a visitor’s likelihood to donate, volunteer and return, are site functionality and image, even more than content, navigation options or look and feel. Site functionality encompasses usefulness, variety and convenience of features while image includes how well the site reflects the nonprofit’s image.

Get the entire report here.

Guest Column: Brian Smith, Forensic Fundraising

My youngest daughter is a big fan of the crime scene investigation shows. She tries to solve the mystery before the solution is revealed at the end of the show.

While watching television with her one night, it occurred to me that fundraising was a lot like crime scene investigation. Except, of course, for the corpses lying around.

“Collect the evidence” – CSI

Our campaigns begin with a thorough examination of the scene. We call this a Feasibility Study. The investigation calls for the study director to canvas the area, learning as much as he or she can about the community, the client and “known associates.” This includes board, staff, volunteers, donors and community leaders. 

By learning all we can about the client and their needs, we are able to prepare our investigative tools -- interview questionnaires, mail surveys and other instruments. Using these tools, we “collect the evidence” of potential support for their mission and proposed project.

“Round up the usual suspects” – Claude Raines, Casablanca

A comprehensive feasibility study gives us background information we need. With this evidence and a list of “suspects” we can conduct research into the motives and motivations of each suspect, to determine whether they are capable of committing the act of philanthropy. As the detectives say, we look at “motive, means and opportunity.”

The campaign provides the opportunity. The suspects’ assets and financial status provide the means. Motive is frequently the most difficult to establish.

What are an individual’s “hot buttons?” What compels him or her to invest in an organization? Obviously, the more closely associated that person is with the organization, the more likely they are to give, when asked. But when the connection is tenuous, or the association unclear, how do we determine the individual’s motivation?

Assessing the capability of a potential prospect is relatively straightforward. You can access county tax roles to see what type of property they own, and its value. If they are listed in Hoover’s Rich List, or in Forbes.com, you have a pretty good indication of their capacity to invest. A Google search or other Boolean search engines can provide you with links to a person’s background and assets, if the information is public.

“Quick Watson, the game’s afoot!” – Sherlock Holmes, The Hound of the Baskervilles

Determining motivation and interests is another story. This is where our investigator must get creative and dogged.

Most libraries have a Periodical Index which lists area newspapers, magazines, etc. These are indexed by subject, so you can look up an individual’s name and see which publications have articles written about or by that individual. The media coverage of a person’s life and activities gives an indication as to that person’s interests and motivations.

With what organizations is this person affiliated? What boards does he or she serve on? To which organizations has the prospect made significant investments?

A private individual’s tax returns are not part of the public record. But the gifts one makes to private nonprofits are. Any organization which files a 990 form, the nonprofit corporate tax return form, must list their major contributors as well as identify their board members.

Guidestar (www.guidestar.org) can provide information on nonprofit organizations – 990 forms, board members, etc. You must register (it’s free) with Guidestar online, then conduct an Advanced Search, seeking all organizations within a particular geographic area. A search of their Boards and 990 forms can reveal who supports those organizations.

Many states will also provide information on board members and registered agents of corporations, including private for-profit and not-for-profit corporations. This is generally available through the Secretary of State from each individual state government. Some states make the information readily available, others charge a fee. But you can identify which boards a person serves on, as well as any private enterprises with which he or she is associated. Annual reports of those corporations may be available to you.

Motive, means and opportunity. The ingredients necessary to commit first degree philanthropy. 

Brian Smith

President & CEO

Th(inc), LLC

6999-02 Merrill Road, Suite 317 Jacksonville, FL  32277

Mobile:  904-553-2354               Office:  904-720-1852

$50 Million Announced for Nonprofit Best Practices

Michelle Obama Announces $50 Million Fund for Nonprofits

Philip Rucker of the Washington Post writes that nonprofit best practices that can be replicated nationwide are in line for funding. We will keep you posted on any further news related to this initiative.

President Obama's budget for next year will include $50 million to help expand nonprofit programs across the country to promote national service, first lady Michelle Obama announced tonight at an event in New York.

The White House initiative, known as the Social Innovation Fund, is a component of the new Serve America Act. Mrs. Obama said that it would provide capital to support innovative nonprofit organizations and to help social entrepreneurs expand "their successful approaches to tackling our most pressing national challenges."

"The idea is simple: Find the most effective programs out there and then provide the capital needed to replicate their success in communities around the country," she said in a speech at Time magazine's "100 Most Influential People Awards," according to her prepared remarks, released by the White House.

Mrs. Obama added, "By focusing on high-impact, results-oriented nonprofits, we will ensure that government dollars are spent in a way that is effective, accountable and worthy of the public trust."

Mrs. Obama, who founded Public Allies Chicago, a AmeriCorps nonprofit program that prepares youth for public service, has made advocating for national service a key component of her mission as first lady.

Interview with Lucy Cortese: Tree Hill Nature Center

What is the Mission of Tree Hill Nature Center?

Tree Hill is Northeast Florida’s center of excellence for environmental education, conservation and awareness.

What do you think sets you apart from other nonprofit organizations?

Tree Hill is a unique 50 urban wilderness in the center of Jax and is the only environmental education center in NE Florida serving 15,000 school children annually in direct science education programs.

What is your most pressing funding need?

State and local education budget cuts have directly impacted Tree Hill due to cuts in our school board contract. It the contract is not reinstated for next fiscal year, thousands of school students will be denied field study experiences and environmental programming.

How do you recruit and train volunteers? Volunteers are recruited from websites, corporate volunteer programs and college and high school community service programs. Training for varied duties are provided.

How long have you been at the center and what makes you passionate about your job?

I will celebrate my 22^nd year at Tree Hill on August 1. Here is what I wrote last year about loving my position here:

Following a hectic drive through rush hour traffic, I arrive at an oasis in the heart of Jacksonville. The stress of the commute from the beach to Arlington melts away and I am at work. My job as executive director is actually more fun than labor as I spend the day in the midst of majestic live oaks, running streams and hummingbirds gardens. No wonder I love my job at Tree Hill Nature Center!

I observe joyful sights…students awestruck by their first walk through the woods, a toddler enchanted by an encounter with a butterfly, or a family overcoming Nature Deficit Disorder. Simon the goat, Virgil the opossum and Snappy the baby alligator eagerly greet me-- especially when I am offering their favorite foods. My dynamic staff thanks me, their boss, for the opportunity to work as a team where we strive daily to make a difference.

On August 1^st I celebrated my 21^st anniversary, still happy to come to work every day. I am fortunate and proud to lead an organization whose mission is to promote an appreciation of our natural world. Working at Tree Hill for two decades has been satisfying. Having the job of my dreams, Priceless!

About Tree Hill Nature Center:

Located in the center of Jacksonville, Florida, TREE HILL Nature Center is the place in our community to experience family fun in a natural environment. TREE HILL is a center of excellence for environmental education, conservation and awareness, offers programs, facilities and access to natural areas, which promote understanding of and respect for our natural world. Green Your Imagination in 2009 by participating in TREE HILL programs, events and membership opportunities. (Open to the public Monday through Saturday from 8 am to 4:30 pm. Closed on Sunday and Holidays.) CONTACT: Lucy Cortese, Executive Director ADDRESS: 7152 Lone Star Rd., Jacksonville, FL. 32211 PHONE: (904) 724-4646 https://webaccess.unf.edu/exchweb/bin/redir.asp?URL=http://www.treehill.org

Guest Blog: Brian Smith

Brian Smith is a very successful capital campaign fundraiser, and a nonprofit management guru. He is a new and hopefully frequent contributor to The Third Sector.

Now is the Time to Prepare for Success

Community organizations have been undergoing an incredibly difficult time over the past several months. The economic recession has brought an increased demand for services, while philanthropic investments are either static or shrinking.

And most economists say this situation will be with us for awhile, and may even get worse before it gets better.

And to top it all off, most organizations are forced to use a system of funding that is, at best, fundamentally flawed. Organizations are forced to compete for funding from those whose own self-interest should dictate they advocate collaboration and partnerships.

Let’s take advantage of the current economic situation to complete re-invent fundraising and philanthropy. And those who start soonest, grow strongest.

Value Relationships

It has long been conventional wisdom that fundraising is based upon personal relationships. As a Board Member or supporter of Organization X, I go to see my friend and ask for his support for the organization. And we build our donor base upon those types of relationships and support.

But when my friend goes on the Board of Organization Y, guess who he’s coming to see? And so we go round and round with the check-swapping philanthropy. And it becomes evident that personal relationship fundraising is self-limiting, and reaches the point of diminishing return very quickly.

But when there is a value relationship between the donor and the organization’s services, we can move beyond the check-swapping philanthropy cycle into the realm of community investments. If I have a vested interest in the organization’s success, either personally or professionally, I am more apt to view any support I provide as an investment. And I continue to make an investment in the organization when I see that there is a return on that investment, in the form of positive outcomes that mean something to me.

When we reach the level of investment support rather than gift support, we can become a more sustainable, stronger organization.

What value does your organization demonstrate? Can you show the Return on Investment?

Th(INC), LLC --- The Innovation Company, can help you in securing investment support. We also work with you in helping forge the strategic collaborations and partnerships you will need to succeed for the future.

Call us at 904-553-2354. We offer a unique, cost-effective service that not only saves you money, but will help you earn the investment support you need.

Brian Smith

President and CEO

Th(INC), LLC

The Innovation Company

6999-02 Merrill Road

Suite 317

Jacksonville, Florida 32277

http://www.forensicfundraising.blogspot.com/