Everything You Need to Know about Increasing Donor and Board Member Engagement

Research shows that up to 70% of your first year donors don’t give the following year – and we know how much work it is to get that first gift. At the same time, many nonprofits struggle with keeping their board members excited about their mission and actively fulfilling their roles within the organization and in the community.

On Wednesday, February 6, 1-2pm (EST) - Join Jay Love, co-founder of eTapestry and now Bloomerang (www.bloomerang.co ), and Bryan Orander of Charitable Advisors and the Not-for-Profit News (www.CharitableAdvisors.com) , for an insightful webinar discussion about how your organization can better retain donors and motivate board members. Jay will share the latest research, and new developments in technology, that can help you retain the support and loyalty of more of those donors. Bryan, a Certified BoardSource Governance Trainer, spends much of his time with dozens of nonprofit boards each year. He will share insights from research and his experience that can help your board members become more fully engaged with your organization.

No cost to participate but registration is required. To register, go here. At last count, registration was already pushing 50 participants.

Nonprofit Sector Predictions for 2013 from Nonprofit Quarterly

Written by Rick Cohen

Nobel Prize-winning chemist Neils Bohr reportedly once said, "Prediction is very difficult, especially if it's about the future."

New York Yankees catcher Yogi Berra once said "The future ain't what it used to be."

Based on dozens of predictions received from smart people in and around the Nonprofit Quarterly orbit, this Cohen Report excerpts some telling commentaries that lay out thematic predictions for the coming year.

- Relationships with Government - is decreasing funding the new normal?

- Charitable Deductions - how could it affect your specific base of donors?

- The Changing Nonprofit Sector - will this be the comeback year for
nonprofits? If so, in what form?

- The More Things Change - the growing importance of advocacy to almost every nonprofit

Read the full article here.

New Year for Nonprofits: 4 Steps To Achieving Lasting Cause Marketing Partnerships

The following is a guest post by Ashley Halligan, nonprofit analyst at Software Advice.
The new year is upon us, so why not make a resolution to focus on making lasting relationships with businesses that can benefit your nonprofit? Cause marketing is a mutually beneficial marketing strategy for nonprofit organizations and for-profit businesses. But there are key questions that nonprofits must ask themselves to ensure a ROI for both parties. What kind of partnership is your organization seeking? Strictly funds? Co-marketing? Enhanced public visibility? Hard goods?

After speaking with professionals from both established nonprofit organizations and for-profit businesses, we developed a checklist with steps to assist nonprofits as they seek a lasting business partner.

1. Identify Your Goals
Identifying your needs is essential to identifying prospective businesses to partners with.

Catherine Chapman, CFRE at Fullanthropy, suggests seeking businesses with similar philosophies. "Look for businesses that have commonalities with the organization. They might have the same values or culture, or they might have a similar target demographic with clients or donors," she says.

Bruce Burtch, the author of "Glowing Your Business," agrees, "Search for organizations aligned with the mission and philosophy of the nonprofit." As an example, he suggests, "If you are trying to build a homeless shelter, look for construction companies, architects, etc."

2. Develop a List of Prospective Partners
After prospects are identified, developing an outreach strategy is important. Begin by finding connections within your own organization-if possible. An existing connection can open a promising door within a for-profit company. Otherwise, it's important to reach out to the appropriate person within the organization.

Read the entire article on the GuideStar Blog.

(The following is a guest post by Ashley Halligan, nonprofit analyst at Software Advice.)

Are You Protecting Your Nonprofit from Fraud?

According to the most recent Fraud study conducted by the Association of Certified Fraud Examiners, nonprofits reported a median loss of $100,000 along with an even greater potential cost for reputational damage. It may be surprising, but the external audit is only likely to detect fraud just over 3% of the time. The top fraud detection methods include tips from staff or others (43%); management review (15%); internal audit (14%); and accident (7%). Nonprofits of all sizes have limited back office resources and the lack of staffing and controls makes them vulnerable to employees who see an opportunity. High staff turnover makes segregation of duties and training more difficult which increases likelihood of fraud.

Billing schemes are one common fraud scheme. Typically, these billings schemes involve billing organizations for personal items or marking up goods or services excessively. Nonprofits have large numbers of checks and cash from numerous sources, including handling by many volunteers, making them vulnerable to Skimming and Cash Larceny Schemes.

Read the full article to answer these questions:
- What types of fraud schemes are most common?
- What kinds of anti-fraud policies should your organization have in place?
- How do you support and protect your finance and accounting staff?
- What is a Fraud Risk Assessment?
- What role can a Certified Fraud Examiner play in preventing fraud?

Since 1999, Financial Technologies & Management (FTM) has provided accounting and financial solutions exclusively to nonprofits. James Simpson, CPA, founder and President of FTM, recently obtained his Certified Fraud Examiner or CFE designation and FTM is excited to announce the addition of fraud prevention and forensic accounting services to their comprehensive accounting and financial solutions for nonprofits.

FTMs next nonprofit forum will focus on Preventing Fraud and will be held on Thursday, January 31st at 12:30 EST.

To read the full article or learn more about the January 31st training opportunity.

Choosing an Auditor

Steven K. Stucky, CPA, Sikich LLP

Being part of a non-profit organization, you know how important it is to timely and accurately report your financial information. These include how much money you are receiving in donations and for what activities those funds are being used. Though many non-profits are not required to have audits performed, your organization’s bylaws may require one.

How do you go about selecting an auditor?

1. Qualifications: First and foremost, find a few potential candidate firms that have the capabilities for which you are looking and dig into their qualifications. Who are the individual staff members with whom you’ll be working directly?
2. Experience: Do they have audit experience in the non-profit sector, or even better, do they have dedicated teams that only work with non-profit organizations? What is their reputation in the industry?
3. Geography: Is it important to have a local auditor, or can you work remotely with one? If you want a local auditor, does the firm have an office in your geographic area?
4. Education: Regulations and laws are constantly changing. How do your audit candidates keep current in the non-profit sector? Are they personally involved with any non-profit organizations at the leadership level?
5. Services: Is it possible that you’ll want or require other services in the future, other than audits? If so, look into a firm that can provide a wide range of services—whether that’s additional tax-related services or even human resources, marketing or technology consulting. Keep in mind that these additional services do not create a conflict of interest with the audit.

The bottom line: Choose an auditor with whom you are comfortable working. Take the time to request proposals, examine what each firm has to offer, engage in interviews with candidates and ensure that your selection is the best fit.

FMI, contact By Steven K. Stucky, CPA; Partner, Sikich LLP. Steven can be reached at 317-842-4466 sstucky@sikich.com.

Surprise People!

Those were the parting words of Michael Kaiser, the President of the Kennedy Center (for the performing arts) and a nationally recognized guru in revitalizing and rejuvenating struggling arts organizations. He joined a panel of local arts leaders in discussing the importance of arts to our community and strategies to strengthen local arts organizations. The session was initiated by Kathleen Hacker of UIndy and took place before a full house at the DeHaan Fine Arts Center on the UIndy campus. Dennis Ryerson, former publisher of the Indy Star was moderator. I have read several of Mr. Kaiser’s books, including “Art of the Turnaround” and really appreciate his perspectives. A few of his comments that stood out to me:

General
- Build a positive cycle based on “Great Art, Well Marketed” that creates a “family” of active supporters that “attracts funds” through attendance, donations, and sponsorships and supports more “Great Art”.
- Plan your programming several years out so you can be ambitious and rally support
- Most organizations should be doing something to surprise their “family” and the community at least four times each year – large arts organization should aim for monthly.
- There are not too many arts organizations but many are not providing “Great Art, Well Marketed”.
- Institutional marketing, making a name for the organization, is at least as important as marketing specific performances in building financial support.

Economics
- There are limited economic efficiencies possible in the performance of most art forms.
- Our venues limit our options – locking ourselves into a facility limits our flexibility and earned income potential.
- It would make a dramatic difference if arts organizations put the same energy into developing managers, audiences, and resources, as they put into developing their programs, artists, and artistic directors.
- It is common for a mainstream arts organization to raise 60% plus of its support from individual donors and corporations, that % drops to 8% for arts organizations in minority communities who are mainly supported by government and foundations.

I refrained from asking him my question about whether there have been any communities who have recently established United Arts Funds or workplace giving programs to promote arts in a broader context to their communities. Cincinnati and Louisville created the first programs in 1949 and now they exist in more than 60 U.S. cities raising $10s of millions of dollars, and just as importantly, visibility and buy-in for the arts. Maybe he would respond to an e-mail.

For more information
- History of United Arts Funds (Cincy efforts www.theartswave.org)
- Michael Kaiser’s efforts in training and educating arts leaders at www.ArtsManager.org
- Jay Harvey at the Indianapolis Star did a nice job capturing the conversation.

Be part of 'Walking for Dreams 2013', Raise $$

Last year, over 1500 walkers raised over $100,000 for the 35 participating nonprofits. Over the past 8 years, close to 100 organizations have raised hundreds of thousands of dollars, in total. I have been involved since the 2nd or 3rd year. I think of 'Walking for Dreams' as the walk-a-thon event for organizations who: 1) aren't big enough to do their own event or 2) don't want to spend valuable volunteer or staff time on event organizing, or 3) want to gather a group of their supporters around fund raising for one particular program.

Here's how it works: There is a $400 upfront fee, but then the Sycamore Foundation plans, manages, and runs the event and your organization keeps the remainder of funds that you raise. They even provide an on-line donation website where your walkers can form teams and receive donations. All your nonprofit does is solicit walkers to participate and raise funds for your organization. Whether you have 5 walkers or 50, it is a fun event and can raise a meaningful amount of money for the effort you invest.

Promoted as the 'Walking for Dreams Family and Pet 5k Walk', the event encompasses just a couple hours of a beautiful Sunday afternoon on the scenic Canal Walk downtown. The energy is terrific, the colors are bright, the faces are happy. Each organization is assigned a table to greet and gather their walkers plus promote their organization to others in attendance. Everyone steps out together and then winds their way through the walk route and back to food and festivities at their own pace.

I have discovered that a Walk-a-thon event is a great way to introduce people to your organization, a good strategy to give reluctant board members or staff a 'harmless' way to talk about your organization with friends and family, and a nice time for social connection between people who care about your organization. To learn more or get your organization signed up for the May 19, 2013 event, visit: www.WalkingforDreams.org.