Beginner's Guide to Non Profits

Are There Differences Between Different Types of Nonprofits?

Sun, 05 Mar 2006 16:05:07 +0000

Absolutely. If you go to the website for the Internal Revenue Service www.irs.gov, you can follow a link to information about Tax Exempt Organizations. Some organizations do not qualify as charities and therefore donations cannot be designated as charitable contributions. Another thing to watch: Unrelated Business Income Tax (UBIT). A key condition is that the nonprofit must use 'substantially all-volunteer' efforts while fundraising, otherwise the nonprofit might be hit with a tax bill for UBIT. Check with your accountant for details.

What types of nonprofits qualify for help? Which do not? Any nonprofit may use the self-publishing tools except for political purposes. In fundraising, some types of organizations qualify as charities while others do not. Determinations are made by the Internal Revenue Service.

Most likely to qualify as charitable donations

Charitable Organizations - 501(c)3
Social Welfare Organizations - 501(c)4
Labor & Agricultural Organizations - 501(c)5
Business League Organizations - 501(c)6
Fraternal Societies - 501(c)8; 501(c)10
Veterans' Organizations - 501(c)19; 501(c)23

Least likely:

Employee Associations
Political Organizations
Social Clubs

In general, there are some basic non-profit organizations that you need to know. They are:

Cooperative - voluntary nonprofit association of people performing some kind of economic activity for the benefit of its members. The three major classes are consumer, service, and producer cooperatives.

Consumer Cooperative - nonprofit association that buys bulk amounts of consumer goods so that its members can purchase at prices below those charges by regular businesses.

Service Cooperative - nonprofit association of consumers dealing with services rather than goods.

Examples include credit unions, and some insurance and credit agencies. A credit union, which is made up of employees from a particular company or government agency, receives its funds from members. In return, members earn interest on their deposits and may borrow money from the credit union. In most cases, they can borrow at better rates and more quickly than they could from for-profit banks or commercial loan companies.

Producer Cooperative - nonprofit association of producers helping members sells or market products. In the US, most coops of this kind are made up of farmers. The coop helps the farmers sell their crops directly to central markets or to companies that use the members' products. Any savings that the producer coop makes in marketing costs go to its members.

Professional Association - nonprofit association of professional or specialized workers seeking to improve working conditions, skill levels, and public perceptions of it profession. Membership can be either mandatory or voluntary.

Trade Association - A trade association is a group of businesses within an industry that work together to build industry awareness, advocate certain political goals and provide services to members. The government watches trade associations rather carefully so that they do not violate collusion and anti trust laws.

RESOURCES:

WWW.IRS.GOV
WWW.ACU.EDU
WWW.ALLIANCEFORJUSTICE.ORG
WWW.SOS.STATE.IA.US
WWW.LOCAL4ALL.COM
WWW.NONPROFITLAW.COM

Should Your NPO Start a Blog?

Wed, 15 Mar 2006 16:47:44 +0000

As internet marketing and information become more and more affected by the blog revolution, Nonprofit Organizations are starting to wonder whether blogging is the next step in their business development.

It's becoming easier as well as essential to add a blog to your business homepage. A quick guide:

- Summarize or link to other articles on the web that are relevant to your business and/or audience.

- Allow commentary by readers on critical topics.

- Bring in "guest bloggers" who are experts in certain fields related to your organization.

- Post technological or important information updates as soon as they occur, if possible.

- Promote any new content created for your webpage.

- Add headlines from blog entries onto your main website.

- Syndicate your blog via an RSS format.

An effective NPO blog uses this format to communicate efficiently with its members. Staff post around 3-5 times daily about quick announcements on special events or multiple entries about sessions of a recent conference or activity. Using a blog, staff members can easily get information to partners and clientele within minutes.

Non-profits benefit from Google Grants

Mon, 20 Mar 2006 19:11:57 +0000

Many NPOs are going nuts for Google Grants. According to WebProNews, Google has given $33 million in free advertising to non-profit organizations like the Best Friends Animal Society, Helen Keller International, the American Heart Association, Destination Cure and many more.

In all, over 850 or so organizations in at least 10 countries have gotten free exposure to interested searchers thanks to the Google Grants.

Information on Google Grants can be found here.

Non-profit organization debunks top ten credit myths

Mon, 08 May 2006 21:15:46 +0000

How hard it is to erase debt collections from your credit report? What happens to your credit after you tie the knot? These are just two questions about credit that are often answered incorrectly.

Mike Sullivan, director of education for Take Charge America, a non-profit credit counseling company, says the credit system is complex, and that's why it is important to turn to an expert for help.

"If you have questions about your credit, see a credit counselor or financial planner for the most accurate answers," he said. "We all have varying levels of financial security. What's best for your sister or co-worker, may not be the best solution for you."

WTC Memorial Woes

Tue, 09 May 2006 20:23:46 +0000

And they just keep on coming for the ill-fated WTC Memorial.

Fundraising for the World Trade Center memorial has been halted. Memorial Foundation board member Tom Johnson says "It's only fair to donors to be able to expressly say how their money will be used and how much the project will cost." WNYC's Dan Blumberg reports.

The non-profit's fundraising has already been hamstrung by the controversies that have dogged nearly every aspect of rebuilding. Still, the foundation has raised $130 million from private donors and another $300 million has been committed by government. That's far short of the $972 million a contractor estimated Michael Arad "Reflecting Absence" design would cost.

History of American Philanthropy

Tue, 27 Jun 2006 22:17:42 +0000

The dictionary defines philanthropy as “the effort or inclination to increase the well-being of humankind, as by charitable aid or donations.” While the term is generally associated with wealthy individuals, by definition anyone can be involved in philanthropic causes. Whether the donation is a multi-million dollar endowment, or just a handful of change in a Salvation Army Christmas bucket, everyone can be a philanthropist.

Philanthropy in America evolved out of a combination of necessity and the religious roots of the early settlers. The colonists found themselves ruled by a distant government unable to provide them with the services they needed in their new communities. This need caused them to rally together to create libraries, schools, volunteer fire departments and healthcare services. Their religious beliefs prompted these initiatives as they sought to take care of the poor and needy. Some historians believe the first organized philanthropic effort took place at Harvard University in 1643 when a well-managed funding drive raised a significant 500 pounds.

Benjamin Franklin is considered one of the country’s first major philanthropists. He was the founder of several civic organizations such as the Pennsylvania hospital, the Pennsylvania public library and the University of Pennsylvania. Franklin was a strong believer in giving financially to help the local community. He also believed in aiding others to better themselves so they could become thriving contributors to society.

The First Modern Philanthropist

Tue, 27 Jun 2006 22:19:01 +0000

Modern philanthropy owes much of its foundation to Andrew Carnegie. Born in Scotland, his father brought him to America in 1848 where he worked in a cotton mill. By 1873 Carnegie recognized the nation’s impending need for steel, and he began to acquire companies, ultimately forming the Carnegie Steel Company. He amassed great wealth and by 1900 his company was producing one-quarter of all the steel used in the United States. The U.S. Steel Corporation was eventually formed for the purpose of buying out Carnegie’s company.

In the midst of his extraordinary financial success, Carnegie authored “The Gospel of Wealth” in 1889. In the document, he proposed that wealth should be administered for the public good, and that a person’s life should have two primary cycles: the amassing of wealth and the distribution of it to others. He suggested that a wealthy person is only a “trustee” of that wealth, and it is up to the individual to use the wealth for the betterment of mankind.

Carnegie radically lived what he believed, and after the sale of the Carnegie Steel Company to the U.S. government in 1901, he spent the rest of his life as a philanthropist. Among numerous efforts in the States and in Scotland, his benefactions include Carnegie Hall, Carnegie Mellon University, the Carnegie Foundation, and over 2,800 libraries. By his death in 1919 Carnegie had given away $350,695,653. The remaining $30,000,000 was donated to various foundations and charities.

20th Century Philanthropy and Beyond

Tue, 27 Jun 2006 22:19:30 +0000

Andrew Carnegie’s efforts paved the way for later philanthropists such as John D. Rockefeller and Margaret Olivia Sage. Rockefeller’s Rockefeller Foundation was chartered by the state of New York in 1913. Under increasing pressure from a highly charitable population, the U.S. government enacted legislation in 1921 offering tax-relief for personal contributions. New laws in 1935 allowed corporations to form philanthropic organizations, a successful model that continues to this day.

America’s philanthropic roots have only deepened into current society. U.S. citizens are responsible for billions of dollars in charitable giving. Recent causes have included natural disasters such as 2004’s Tsunami and 2005’s Hurricane Katrina. The 9-11 terrorists attacks in 2001 prompted record number in charitable contributions to the Red Cross and other organizations.

In the 2004 list of America’s most generous philanthropists, Microsoft co-founder Bill Gates, along with his wife Melinda, top the list with over $10 million dollars given annually to causes related primarily to health and education. Others in the top ten include Gordon and Betty Moore (co-founder of Intel), Warren Buffet (CEO of Berkshire Hathaway), Michael and Susan Dell (Dell founder), Paul Allen (Microsoft co-founder), and the Walton family (founder of Wal-Mart). Other famous philanthropists on the list include Oprah Winfrey, Ted Turner, Michael Bloomberg, David Geffen, and Charles and Helen Schwab.

Participating in Philanthropic Efforts

Tue, 27 Jun 2006 22:20:02 +0000

Most psychologists agree giving back in some way is healthy for the mind and soul. Participating in philanthropic activities does not require one to be wealthy in any way; rather it simply means being willing to give away some portion of your money, time and/or resources. When choosing what type of organization to involve yourself with, consider what areas of life you feel passionate about improving. Whether you want to help raise money for breast cancer research or increase awareness about educational needs in impoverished countries, find a charitable organization whose work you consider important and significant. Many individuals begin through a religious organization, and you may find many ways to give through your church or other house of worship.

Even if you cannot sacrifice financially, there are many ways to be involved in philanthropic efforts. Most charitable organizations hold fundraising events to raise money and awareness, and you can become involved as a volunteer. You can also make donations of everything from clothes to computer equipment to the charities of your choice.

Tax Benefits of Philanthropic Activity

Tue, 27 Jun 2006 22:20:36 +0000

Donating funds to charity not only fuels the spirit, it can aid your financial situation by providing a tax deduction. Before you make any donation, make sure the organization is classified by the Internal Revenue Service as qualified to receive tax-deductible donations. Such not-for-profit organizations are typically designated as 501(C)(3) organizations.

Within such organizations are three sub-groups: public charities, private foundations, and private operating foundations. A public charity receives most of its income from the public and/or the government. Private foundations receive income from investments and endowments and they typically use their funds to award grants to others. A private operating foundation is a private foundation that donates funds directly to causes, rather than to other charities.

When you are considering making a financial donation, contact the organization and request a copy of their Form 990. A Form 990 is required by law, and it lists an organization’s scope of activities and latest financial statements. You can view the information and determine if the organizational initiatives match your interests and beliefs. The National Charities Information Bureau recommends an organization spend at least 60% of their income on program activities, and only 40% on operating costs. If the Form 990 reveals vastly different ratios, you might want to consider another organization that makes more efficient use of the donations they receive.

When making donations, make sure you receive proper documentation of your gift. Check with your accountant or financial advisor to ensure you receive the proper financial benefits from your charitable giving.

Becoming a Philanthropist

Tue, 27 Jun 2006 22:21:08 +0000

You don’t have own a steel company like Andrew Carnegie or be a software magnet like Bill Gates to become a philanthropist. Simply involving yourself in causes you are passionate about through any level of financial giving and/or volunteerism can accomplish the ideals set forth by Benjamin Franklin and the other founding fathers. Giving back to the community not only creates a better environment for others, it nourishes the spirit as well. And as individuals give back out of their success, it allows others to be equipped to experience success as well.

Managing and Recruiting Volunteers

Thu, 03 Aug 2006 15:27:44 +0000

Fundraising

Thu, 03 Aug 2006 15:30:37 +0000

Philanthropy

Thu, 03 Aug 2006 15:32:18 +0000

Starting a Nonprofit Organization

Thu, 03 Aug 2006 15:34:06 +0000

Beginner's Guide to Non Profits

Are There Differences Between Different Types of Nonprofits?

Should Your NPO Start a Blog?

Non-profits benefit from Google Grants

Non-profit organization debunks top ten credit myths

WTC Memorial Woes

History of American Philanthropy

The First Modern Philanthropist

20th Century Philanthropy and Beyond

Participating in Philanthropic Efforts

Tax Benefits of Philanthropic Activity

Becoming a Philanthropist

Managing and Recruiting Volunteers

Managing and Recruiting Volunteers Overview

Why are volunteers so important?

How do I recruit volunteers?

Should I accept anyone's offer to help if I really need volunteers?

Fundraising

Fundraising Overview

Getting Started With Your Fundraiser

Motivating Your Participants

Approaching the Buyer

Philanthropy

History of American Philanthropy

The First Modern Philanthropist

20th Century Philanthropy and Beyond

Participating in Philanthropic Efforts

Starting a Nonprofit Organization

Starting a Nonprofit Organization Overview

File the Certificate of Incorporation

Select the Board of Directors

Develop Vision and Mission Statements