Not For Profit

Licensing your not-for-profit’s name to a for-profit company can provide a valuable new revenue source — but it can also be risky. If you’re considering a licensing arrangement, ensure that the partnership really will generate funds and, possibly more important, a positive impression of your brand. Success . . . and controversy When licensing arrangements work, both charities and companies can experience significant benefits. AARP and ... more

A not-for-profit’s growth stage generally starts two or three years after formation and continues until maturity at around age 7. This period comes with a sense of accomplishment and the opportunity to refine and expand, but these “adolescent” years can pose challenges as well. Board shifts Perhaps the most common marker of a growth-stage nonprofit is changes in the composition and focus of its board of directors. Boards usually continue to be ... more

All nonprofits should think about setting aside money for a rainy day, but it’s a bigger consideration when you do it through an endowment. Endowments, by their nature, are not usually collected for the purpose of spending the money. The definition of an endowment, is the portion of funds set aside that are “permanently restricted” unless a donor or the court says the organization can spend it. The interest and dividends from the endowment, ... more

The amount of money your not-for-profit raises in fundraising campaigns is meaningful, but so is how efficiently you’re able to raise it. Such costs can be measured using two metrics: Cost ratio and return on investment (ROI). Let’s take a look. Find a formula These two metrics can be used to evaluate both fundraising activities as a whole and individual fundraising events or campaigns. Concentrating not only on the big picture, but also on ... more

Attracting quality employees is a tough challenge. And despite assumptions, money is not a motivating factor for employees, especially if other aspects of their job are unsatisfying or even toxic. With sufficient pay and benefits as a baseline, employees actively select workplaces for more personal reasons. They will also stay longer when those personal needs are met. The Nonprofit Times reported in May that neuroscientists are now mapping out ... more

A recent survey of almost 1,500 donors from all generations found that only 9 percent factored direct mail into their decision to support a charity. The Chronicle of Philanthropy reported in April that all of the donors surveyed had made a gift to a charity that they hadn’t previously supported. They were asked about how they made their decision to choose a specific charity. A full report was published by Cohort3, a fundraising consulting ... more

The relatively new federal procurement standards significantly alter the way not-for-profits receiving federal funding handle purchasing. And while your organization may have changed its written policies to comply with the revised standards, it may be easier to follow the rules on paper than in practice.   Summing up the standards The standards, “Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards,” ... more

Chances are, your not-for-profit is governed by a board of directors. However, an informal advisory board can bring complementary — and valuable — skills and resources to this group. Enhance representation Look at the demographics and collective profile of your board members. Does it lack representation from certain groups — particularly relative to the communities served by your organization? An advisory board offers an opportunity to add ... more

Thousands of not-for-profits lose their tax-exempt status every year because they’ve neglected to file required annual forms with the IRS for three consecutive years. Fortunately, if your organization is on the revocation list, you can re-attain your exempt status by following the proper steps. File the right form Assuming you lost your exempt status due to one of these automatic revocations, you can regain your status by filing: Form ... more

The National Flood Insurance Program (NFIP) is slated to expire at the end of September. Since 2004, it has racked up more than $24 billion in debt — most recently due to 19 major flooding episodes across the country last year. This year’s tragic hurricane season is only more cause for worry among lobbyists and lawmakers on the topic of new NFIP legislation. As Congress negotiates a reauthorization package — or at least a short-term extension — ... more