Different classes of mailers will see the increase in postage rates.

In light of this and the current economy, does your organization find it is cutting back on postage? Are you looking for less expensive mailing options? Are your relying more on e-communications?

Image: http://www.flickr.com/photos/klmircea/3210506796/sizes/l/

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Postal Rate Increases Stick it to Nonprofits

I’ve been sending myself emails a good bit lately and using my iGoogle to-do list widget. So, it’s time for another poll.

Post from: EveryJoe

Poll Results: To-Do List Takes the Cake

The price tag on this economic stimilus package is $825 billion, currently. The relief portion earmarked for nonprofit associated organizations comes to several billion dollars.

Highlights include:

• $200 million to AmericaCorps for expansion by 16,000 members.
• $50 million to the National Endowment for the Arts
• $50 million to Youth Build USA, a group in Somerville, Mass. that provides jobs for low-income youths in constructing low-income housing.
• $87 billion for the a temporary increase in the federal part Medicaid.
• $110 billion to HeadStart to expand the service by 110,000 participants and 50,000 jobs.

This is just a portion of the list of funding proposals in the ”American Recovery and Reinvestment Bill of 2009.”

Please share your thoughts on this proposal. Do you think it’s enough, too much, or not enough?

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Economic Stimulus Package Proposal Includes Money for Nonprofits

The form applies to all organizations with tax exempt status from hospitals to colleges to private charities. A core section of the Form 990 consists of 11 pages where the organization “tells it’s story.” Several schedules follow the core form based on assets and organization structure.

One major change to the core form is that the organization is given the opportunity to describe accomplishments and mission up front. It also allows activities to be explained throughout the document. The core form is what most of the public is able to access on tax-exempt organizations.

Other changes were made to the form’s summary page, governance section and the various schedules. Worth noting is the change to the governance section. IRS Form 990 requires transparency of the information on the governing body of each organization, policies and practices of this governing body and an explanation of how it will make financial and governance information available to the public.

Many other transparency-driven changes were made to the document including information on executive compensation, related organizations, foreign activities, hospitals, non-cash contributions and tax exempt bonds.

This new form may seem daunting, but a goal of the form is to reduce the burden on the filing organization. We’ll see as it is integrated.

The transparency-driven changes are a good thing for the sector as it gives recipients and donors to our organizations a real view of how we operate. This inside view is designed to build trust in our missions, not take it away.

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Increased Transparency Goal for the Redesigned IRS Form 990

Are you letting your shoestring budget show?

I was sitting in a meeting recently with a committee of volunteers for a local nonprofit. The materials for the project we were working on just didn’t cut it. They didn’t have the polish you would expect from someone trying to raise money.

Now, I know that a brochure or a poster is never going to be the only reason someone gives money to a cause, but it will speak volumes about your professionalism. Everyone who works in the industry knows resources can be hard to come by – money and good people – but your organization is never going to get to the next level with an attitude of “good enough.”

Take the time to find someone who can create great pieces for your cause within your budget. Whether that’s sending your administrative assistant  to a Microsoft Office class to sharpen skills or working with a designer looking build a portfolio, finding a way to make your cause stand out from the crowd of shoestsring flyers is a must.

The same goes for your press releases, social media pieces, letters and e-mails. If it doesn’t look polished (words and design), you aren’t putting your best foot forward. It’s the same as going to a first job interview. If you don’t look the part (sharp, pressed professional attire), you probably won’t get the job. The same goes for meetings with big donors.

It’s time to grow up and put on our adult clothes. Take the time to get your “look” together.

Photo Credit: Zsuzsanna Kilián http://www.sxc.hu/photo/1108413

Post from: EveryJoe

Don’t Let Your Nonprofit Communications Look Like You Have a Shoestring Budget

What the regs do, realistically, is eliminate advance rulings for public supported charities. This became possible after a recent redesign of the federal form 990 which allows charities to demonstrate public support in a transparent way.

While I was surprised to see the advanced rulings for publicly supported charities disappeared, it makes sense. Statistically, almost 95% that receive an advance ruling are granted status at the end of the five-year period. That’s an extremely high approval rate. The decision to abandon the advanced ruling period for publicly supported charities and rely instead on information gleaned from the form 990 is basically a confirmation that the initial approvals have been thoroughly vetted.

So, what does the new rule mean for organizations that are currently in the midst of an advance ruling period? It’s good news! You can use your advance ruling letter as a final determination letter. Just make sure that you properly file your federal form 990 – the new ones go into effect for the 2008 tax year.

Post from: EveryJoe

The IRS Calls It “Streamlined”: New Regs for Applying for Status

These are misconceptions that hinder the growth of the organization and become obstacles to achievement of the organization’s mission. The nonprofit organization must be run as if it were a serious business if it is to be successful and continue to exist in a competitive market. To do this, the notion that a nonprofit group should not make a profit needs to be dispelled.

Saunders goes on to conduct that dispelling with five points that make the case for a business-oriented outlook for the sector. With respect to the paragraph above, these two points from his column bear repeating here:

• Dependable and knowledgeable staff must be paid livable salaries and benefits.
• Money must be spent on resources that help meet the organization’s mission.

It’s worth reading to digest all of Saunders’s points and to absorb his pragmatic, forward-thinking worldview. | 501(c)

Post from: EveryJoe

The Myth of Bake Sales as a Viable Fundraising Tool

With the growing impact of nonprofits on the communities they serve, the issue of how those charity dollars are spent is often a deciding factor for donors.

The Lower Eastern Shore’s top nonprofits spend about 20 percent of their charity receipts on management and fundraising, an analysis of figures reported to the IRS shows.

Administration expenses locally are under the Better Business Bureau Wise Giving Alliance’s efficiency benchmark of 35 percent.

The very fact that a newspaper is poking around this issue should tell you that someone thinks it’s news. All organizations have overhead, of course, regardless of their sector, but those that can keep theirs low reap the rewards — again, regardless of their sector. How are you spending your dollars?

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The Search for Nonprofit Efficiency Picks Up Steam

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The New 990 Is On the Way

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Notes, Follow-Ups, and Reminders | Nonprofit Tidbits from the Last Week