From Morgan to Moab, from Payson to Ogden and even Chicago! As we close out 2011 your community foundation has grown to 51 individual funds and endowments worth nearly $5 million. Our donors have made gifts of well over $800,000 to Utah nonprofits. Thank you to all who have made the Community Foundation of Utah grow from an idea, to a start up, to an important part of our philanthropic landscape.
Explain, do not apologize. Some disturbing trends out there... are foundations and donors less willing to support the capacity of nonprofits now than before the recession? Many in the field argue nonprofits need to do a better job explaining their need for capacity building and infrastructure funding, Here are some tips I know I will find helpful, from a terrific source called Social Velocity
"So how does a nonprofit organization find money to build their organization? Here are the steps:
Create a Plan. Develop a road map for the future that includes a budget for the real costs of the real infrastructure and capacity you need to get there.
Determine the Ask. Split the overall cost for these infrastructure elements into reasonable ask amounts given the relative capacity of your donors.
Create the Pitch. Create a compelling capacity funding pitch that connects these infrastructure elements to an increase in your ability to create impact in the community. A more seasoned development director means that you can raise more money, more effectively, more quickly. With that additional revenue, your services can reach more people.
Analyze your Donors. Look for the individuals, foundations, and corporations who love what your organization does, have the ability to give at the ask levels you determined in #2, and could be made to understand the argument that money to build can allow your organization to do so much more.
Explore Alternative Funding. Find new ways to fund capacity building. For example, PRIs, or program-related investments, (essentially loans to nonprofits) could be used to build fundraising infrastructure because once a nonprofit’s capacity to raise money has been increased, the loan could be paid back out of the additional revenue. Explore creative options like this with funders.
Make the Ask. Present your plan and pitch to the donors you have identified and educate them about the critical importance of capacity capital."
“Regardless of who is at fault for society today, we must take care of each other. Since governments cannot find a way to do this, it has fallen to non-profit organizations. We have risen to the occasion. However, we need you to stop making it harder for people and business to give. Actually, you need to make it easier.”- A nonprofit leader
Report to the Legislature 2011
We were honored to present the findings from our latest study to the Joint Social Services Appropriations Committee last week. Here is an experpt from the full report
Like the private sector, our studies have shown Utah’s nonprofits to be responsive to changes in the economy. Our nonprofit sector is increasingly collaborative and innovative. They have created or deepened collaborations, allowing them to continue to meet community needs and reach out to new populations. They have found efficiencies in operations and made very significant, and repeated, cuts to their budgets. They have dismissed staff and taken reductions in both pay and benefits.
Nonprofits are also actively seeking to ensure their future in the following ways. In 2010:
- Community Foundation of Utah’s “Enlightened Entrepreneurs” programs have linked 65 nonprofits with 100 entrepreneurs to develop new business models.
- 27% entered a new collaboration or partnership with a business entity
- 40% entered a new collaboration with another nonprofit; and
- 29% entered a new partnership with a government entity
Top Concerns and Recommendation for Legislative Consideration
Nonprofit leaders are entrepreneurial, determined, and passionate – and astute. They anticipate changes in the political and economic landscape, and perceive real threats in changes in public policy. Chief among these is an increasing reliance on the nonprofit sector to take care of community needs coupled with a further reduction in government support for human services and education.
Nonprofit leaders do not believe – or universally want – the state to tax its way out of this recession. They understand that a competitive tax policy can help drive economic growth. But, they are concerned that those businesses that relocate to Utah using favorable tax policy are not sufficiently held accountable for contributions back to their local communities.
Nonprofits also encourage the state to develop favorable economic climates for their long term financial health. Proposals to create state tax incentives for donations and endowments to Utah nonprofits are highly supported.
- Strong majorities (86%) agree or strongly agree with the creation of a state tax incentive for individual donations and corporate donations to Utah nonprofits.
- Slightly smaller majorities (70%) like the idea of creating state tax incentives for individual and corporate gifts to create and build endowments.
Where We are Today
More than half of the agencies we surveyed said they conduct little or no legislative advocacy. Most say they do not have the staff or the time.
Nonprofits want their elected officials to understand that they are working hard on behalf of all the citizens of our state and that they cannot continue to absorb the need indefinitely.
- 70% of Utah’s nonprofits are today either running a deficit or operating on less than three months of reserves.
- 44% do not think they will have the resources to meet community demand in 2011.
Nonprofit leaders are optimistic. They have to be. So while they worry that they will not have sufficient resources to meet demand in 2011, most are looking forward to 2011 positively. In fact, more nonprofits view things as looking up than expect more hardships in the coming year (33% to 16%). They know the decisions you make will directly impact their ability to meet their mission.
Nonprofits ask the state legislature to remember their role in our collective society.
“How many legislators have experienced a service or a program and not even thought about how empty the community would be without these opportunities? The Zoo, the Arts Festival, EVE. The emergency services, health and homeless, the preventive groups, Volunteers of America, Red Cross, Alliance House, Hope House etc, keeping people in a fragile place safe. The support social services: Bad Dog Arts, Spy Hop, after school programs, grief support programs, scout programs, dance programs funded by the ZAP tax money. Organizations like the Assistance League, Donated Dental Services, Neighborhood House, The Children's Center, YMCA … The list goes on and on. I charge every person to try and say they have never interacted with a nonprofit of some sort. They could be here today, and gone tomorrow... - An Executive Director
We are busy planning for the next phase of our Enlightened Entrepreneurs initiative, and are grateful for an early commitment from our friend Phil Hansen and CLEARLINK.
Here are three new case studies from the Social Innovation Challenge published by BYU's Grantwell Project. JJ Oliver and the Net Impact students are hard at work analysing the final ROI from the challenge. get ready to have your doors blown off.
“We just decided to declare victory and go home. Money is a scarce resource, and there are lots of other good causes out there, so there is no point in hitting up our friends and contacts for gifts simply to perpetuate the organization.” Robert Daum, chairman of Out2Play,
Don't hear that very often. Should we?
One of the main criticism the Community Foundation hears about Utah nonprofits is that they soemtimes seem more interested in perpetuating themselves than solving the problem. Certainly not all problems are solve-able - hunger, violence, shelter to name a few. But some, like this organization that built playgrounds in NYC, are honest enough to know when they have finished their work. Other recent examples noted in this New York Times article are Malaria No More and Water Advocates - which at one time was a $100 million dollar charity.
What would it take to 'declare victory' and move on? Any one close?
8 human services organizations merged with some serious pushing and financial and capacity building support from a group of local foundations. Utah does not have a similar funders network - in fact we are one of the only regions of the country without a grantmakers association. And here is just one The local Funders Collaborative, a group of eighteen foundations led by Deaconess Community Foundation president and the Saint Luke's Foundation brought the organizations together during the recent economic downturn. Nearly all employees of the eight organizations were retained in the mergers". There's strength in numbers," said Center for Families and Children president Sharon Sobol Jordan. "We'll be better off facing these challenges together than we would as competitors going after scarce dollars." And these are not small numbers: largest partnership is the merger between the Center for Families and Children, which has a $23 million budget and 325 full-time employees, and the West Side Ecumenical Ministry, which has an $8.7 million budget and 132 employees. According to the Plain Dealer,
You can read the article describing the mergers in the Cleveland Plain Dealer.
Forbes has comepleted is annual "world's most generous philanthropists" list - and all but one is a self-made entrepreneur. The includes 19 people who have given at least $1 billion to their foundations or charitable causes, up from fourteen in 2009. You can read the list here
We have an amazing line up of talent for our speed mentoring on June 21.Thanks everyone!
Lawrence Capital Management
Sun Tooling & Molding
Merrill Lynch Wealth Management
Attorney at law
Worldwide Book Drive
Start Up Princess
IP Development Professionals
University Impact Fund
Health Indistry Consultant
Smith's Food & Drug Stores
Holland and Hart
University Venture Fund
Energy Solutions Foundation
University of Utah
President, Simply Mac
Old Glory Mint
The long awaited list of charitable organizations that failed to file tax reports with the IRS was released ... and its a interesting list. many of the groups are not well known, there are some surprises. Who knew the Division of Workforce Services, and Kennecott Copper Corporation ever had tax exempt status! It may be that these organizations closed years ago, or merged with other chapters ... but there are some the You can read the list here.
The organizations on the list automatically lost their recognition of tax-exempt status because they failed to file a 990 tax return for three consecutive years. They are no longer listed in Publication 78, Cumulative List of Organizations described in Section 170(c) of the Internal Revenue Code of 1986, or in the IRS Business Master File extract. They cannot accept charitable donations.