DARLING
NONPROFIT NEWSLETTER
September
09- Newsletter Issue # 4
Question of
the Day
How long
until fund raising turns around and what do we do in the meantime?
There are
some experts whom are saying that the market is "bottoming." Do
not believe the hype. Most of these guys have personal reasons or agenda for
being so optimistic. Most people still believe that we have a long time to go,
although we have a president that appears to be doing all he can to turn the
economy around.
I believe
that we are still a long, long way from the economy bottoming out. Warren
Buffet said he couldn't predict when the economy would bounce back "We
are not in a free fall but we are not in a recovery either." He later
suggested that the country needs a second stimulus package.
The signs
are saying we have a long way to go. Every week we hear about companies closing
down or filing bankruptcy. Unemployment is near or over the 10% level in many States. There are more
American either on food stamps or applying for food stamps than ever before.
More than 40 % of homes in the US are worth less than the debts on the
property. Families that are fortunate enough to not have lost any income
are simply putting off spending because they are unsure of what the future may
hold. Despite the fact that many banks received economic stimulus packages, banks still are not lending. Many profitable small businesses still cannot get loans and therefore are
unable to expand or hire new employees. Many other businesses and employers are
simply not hiring unless it's absolutely necessary.
President
Obama is doing all he can to stimulate the economy. The federal government has
dumped billions of dollars into the system but that action has not loosened
credit. There are some who suggest that we need a second stimulus, but
President Obama states that the first stimulus package will take some time to
really take effect. So, in the mean time, "What can your nonprofit do
to survive?"
Tough
time require tough action or more, creative activities. The first thing you
(board) need to do is take a look at your mission statement. Remember, the mission of your organization is always the priority. What are the most
important things you should be focusing on and who needs the most help? You
must be very clear on the results your nonprofit intends to delivers and how
you intend to deliver those results and with what resources.
Your
board must face and answer some tough questions. The board must engage in some
sound strategic planning. It must engage in accountability questioning. (What
results do we want? How much do these result really cost? What do we need to do
to reach our mission?) The board must ask these types of questions and come
up with answers and solutions to the questions.
The board
may have to make some tough decisions like cutting staff. Most nonprofits spend
about 80% of its funds on their staff, although most US nonprofits are not
over-staffed. In order to survive nonprofits will need to come up with more and
different ways to fund their organization.
In
today's economic environment, nonprofits must be very clear on their mission
and how they intend to accomplish that mission. To
reach its objective, a nonprofit needs everyone involved with the organization to
take an active role in pursuing its mission. Remember that although times are
tough and many are feeling the pain of the economy, people find ways to keep
giving to their favor charities.
In the
next several newsletters we will take a closer look at "How nonprofits
are seeking to survive and thrive during hard time?"
==============================================
Quote of the Moment
"Life is not
about waiting for the storms to pass, it’s about learning how to dance in the
rain."-unknown
==============================================
Tips and Things Too Ponder
·
Go back to old donors!
You have heard the saying “It’s easier to
keep an old customer than getting a new one.” Well, it also applies to
donors. It’s much easier to keep in touch with inactive donors. It may be worth
your while to go through your list of older donors and try to reactivate some
of the better ones. Staying in communication helps keep your organization in the
donor eye when the donor can once again, afford to make a donation. Donors feel
close to an organization that they have a continuous relationship.
· Find new donors and volunteer!
There are some industries that are still
thriving. Some businesses are recession proof and many new businesses are
developing because of the tough economy. Do your research and keep up with the
press to find companies that are doing well despite of the economy. Look for
volunteers. Get the word out that your organization needs and desire new
volunteers while also going back and reaching out to former volunteers.
The
first waves of baby boomers are just retiring and many of them will be looking
forward to something to do. The economy has caused a lot of unemployment and
some of these people will be looking forward to getting something to do with their spare
time while they seek employment or create their own source of income. There
is a very large pool of potential volunteers and many of them possess some very
special and unique skills that will be beneficial to your organization. Think
creatively and find ways to tap into these pool where other nonprofit
organizations may have over-looked.
· Have you considered
cutting costs?
Make the difficult decision to cut costs. In
tough times when raising funds are difficult, it makes sense to cut costs. However,
you must cut cost sensibly and in ways that do not have a negative impact on
your organization's ability to achieve its mission. You must look at what’s
working and what’s not working, what programs and activities are essential to
obtaining your mission. Make the difficult decisions, even if it requires
cutting programs and staff.
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Announcements
- Warren Buffet donated $1.53 Billion in
Berkshire Hathaway Inc, stocks to the Bill and Melinda Gates Foundation. Mr.
Buffet plan to transfer the majority of his wealth to the foundation, run by
Bill Gates and his wife, Melinda.
- Walmart Foundation Expands Hunger Relief
Efforts, by donating more than $7.8 million to support Summer Feeding Program
and the U.S. Food Banks. Walmart Foundation donating $7.8 million through
partnerships with Boys & Girls Clubs of America, Feeding America and local
nonprofits in 10 states to support food banks and provide healthy, summer meals
to children who receive free or reduced-price lunches during school year.
Wal-Mart Stores raised $15 million in six-week campaign for Children's Miracle
Network.
- Chicago Community Trust announced $9,619,000
in grants to support arts and culture, basic human needs, community
development, education, and health.
- THE NONPROFIT TIMES reported that a survey revealed that 72% of NPOs don’t have
a tag line. It asked, “Can people
understand your organization’s mission just by reading its name? Or, does
someone need to read your entire mission statement to figure it out?” The article further stated “A tagline can bridge that gap, giving more
information in an eight words or less punch – when done properly.”
- The Standard Insurance Company, The Standard
Charitable Foundation and its employees together awarded over $2.1M in 2008 to
nonprofits focusing on education, disability and empowerment, cultural
development and healthy communities.
- It was announced that British financier Chris
Hohn, last year donated $499.3 million British pounds or $810.7 million to a
foundation, run by his wife, that supports children’s projects in the developing
world for a total of more than $1.8 billion dollars over the last four years.
- South Korea President, Lee Myunp-bak donated
most of his personal wealth , in July
2009, $26 Million, to create a scholarship fund to help bride a growing gap
between the rich and poor amid a global recession.