Characteristics of a Successful

Not-For-Profit

It’s not all about financials!

Introductions

• Patti Riordan– Consulting CFO-Cramer &Associates– Accounting Services Provider

• Mike Schmidt, CFRE– Vice President & Partner – Cramer & Associates

Today’s Agenda

• Non-Profits & How They Work• Non-Profit Trends & Traits• Understanding Governance • Resources• Service & Volunteer Considerations--Benefits

Types of Not-for-Profits

• Not-for-Profits are not all Charitable• A NFP is:

– An organization that does not distribute its surplus to owners or shareholders; but uses them to help pursue its goals

– Organized under Section 501(c) of the IRC• 26 Types • Exempt from some types of federal income taxes

Types of Not-for-Profits

• Trade Associations – OSCPA• Charities – Canine Companions• Foundation – Ohio State Bar Association

Foundation• Fraternal – Fraternal Order of Eagles• Arts Organizations – Columbus Museum of Art• Civic League – League of Women Voters

The Non-Profit Spectrum

Small Social Service Agency

Bill & Melinda Gates Foundation

Universities

Hospitals

Museums

Trade Associations

Service ClubsLibraries

Churches

Historical Societies

Arts & Culture Organizations

A Look Back at the Decade

2000 2008 2009 2010

Traditional donor fundraising. Giving

is strong on all levels – annual, capital and

planned. Organizations independently

engage issues and donors.

Financial Crisis. Fundraising is

focused on basic human needs. Giving is more

localized. Only the strongest of cases were supported.

Funding levels improve. Donor

interests are reset and new patterns of

communication, participation and

funding are emerging.

Giving USA: The Numbers2008 Contributions: $307.65 billion by source of contributions

($ in billions – All figures are rounded)

Individuals$229.28

75%

Corporations$14.50

5%

Foundations$41.2113%

Bequests$22.66

7%

Source: Giving USA 2009 - Giving USA FoundationAll Figures Are Rounded. Total May Not Be 100%

Religion 35%

Education 13%

Human Services 8%

Health 7%

Public-Society Benefit 8%

Arts, Culture & Humanities 4%

International Affairs 4%

Environment/Animals 2%

Foundation Grants to Individuals 1%

Gifts to Grantmaking Foundations, 11%

Unallocated Giving 6%

2008 Contributions: $307.65 BillionType of Recipient Organization

Donor Pyramid

Annual Giving

Planned Giving

Major Giving

Donor Contact

Donor Growth

Donor Commitment

Identification

Interest

Involvement

Investment

Gift Table

Today’s Environment

• Highly competitive - organizations can not afford mistakes or mixed messages

• Duplication of services no longer tolerated – donors expect collaboration and partnerships

• Entrepreneurial/earned income strategies most successful – funding to help generate new revenue for the organization to become more self sustaining

Today’s Environment

• Transparency and Accountability– Cost Accounting

• Donors want to know where their money is going• Donors increasingly want to fund specific initiatives

– Restricted and Unrestricted Funds

• Allocating General Costs

Today’s Environment

• 990 Enhancements– Public information on salaries, policies, etc. has

caused some heartburn• Since the information is reported both calendar and

fiscal year in places; questions arise:– “I didn’t think we paid ‘him/her’ $xx,xxx”!

• Spousal travel and other perks sensitivities • New disclosures make it mandatory that a point-person

be capable of fielding questions about 990 data• Form 990 information will receive heightened

attention

Cure Cancer

Eternal Salvation

Send a kid to camp

Support your University

Rescue Puppies

Save the EnvironmentGirl Scout Cookies

PTO & Booster Clubs

Performing Arts

Historical Society

Hospital Parks & Recreation

Grant a WishDisaster Assistance

The Competitive Environment

Non Profit Roles

• Executive Director (most important!)• Development Director• Board of Directors • Advisory Council • Other Paid Development Staff • Paid Staff in Non-Development Roles• Other Volunteers• Outside Contractors and Consultants

Successful Traits

• Strong Charismatic Leader– Small organization leaders must wear several hats– Large organizations – visionary, strong manager

• Board Leadership– Sometimes boards are well-intentioned but not

effective– Effective Boards have defined job descriptions

with term limits

Successful Traits

• Development Office (think like a for-profit)– This person must be able to wear many hats– Has to be comfortable with people and asking for

money– They have to believe in the organization– They have the highest turnover rate due to burn

out, lack of passion for the organization, often follow money rather than cause

– Longevity helps

Successful Traits

• Focused and Clear Mission– Do one thing and do it well

• Diversifying sometimes leads to losing sight of the mission.

– Over 500,000 NEW not-for-profits have been established since 2000.

– The Columbus and Cleveland Foundations have encouraged similar NFPs to merge

– New Forms of Communication

•Challenges

• Branding– Recognition does not equal Understanding

• Easter Seals• Salvation Army• March of Dimes

– Central Ohio Furniture Bank• fka Columbus MAP (Material Assistance Providers)

– Painted Dog Conservation• fka African Wild Dogs

– Ronald McDonald House– Buckets for the Cure!

New Forms of Communication

New Forms of Communication

New Forms of Communication

Resources

• Guidestar – www2.guidestar.org

• Free online resource to capture 990• Paid subscription gives access to more information but

data is generally available on not-for-profit’s website

• Foundation Center Online– Fconline.foundationcenter.org

• Paid subscription only• US Public Foundations

– Mission, Grants information, Board Members

Resources

• Association of Fundraising Professionals– www.afpnet.org

• Fundraising and philanthropic trends• Fundraising News

• Chronicle of Philanthropy– Philanthropy.com

• Pulse of philanthropic giving worldwide• Expanded content for subscribers

– Discounted online subscription

Resources

• The Center of Philanthropy @ IUPUI– www.philanthropy.iupui.edu

• Research institution on philanthropy

• Blogs– Some recommendations:

• www.futurefundraisingnow.com (Jeff Brooks)• www.burksblog.com (Penelope Burk)

As a Client or Volunteer• Loyalty• Exposure• Greater Sense of Fulfillment• Impact causes close to you

Caution – Do not treat unprofessionally!

Benefits of Non-Profits

Summary and Conclusion

Thank You!

614.766.GIVE (4483) Mike@cramerfundraising.com877.926.GIVE (4483) Dawn@cramerfundraising.comwww.CramerFundraising.com Patti.Riordan@priordan.net

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