Version from Nov 2, 1994, 9:37:44 AM.
SOC.ORG.NONPROFIT and USNONPROFIT-L FREQUENTLY ASKED QUESTIONSPart 2 of 4
==============================
Subject: TABLE OF CONTENTS
-
----------------------------------- Part 1 ----------------------------
======== FAQ posting information
FPI-01 Copyright
FPI-02 Disclaimers
FPI-03 Format
FPI-04 Differences
======== Section 0: SOC.ORG.NONPROFIT (and relationship to
USNONPROFIT-L)
Q00-01 What is USNONPROFIT-L? How do I subscribe? Unsubscribe?
Q00-02 Is USNONPROFIT-L only for the United States?
Q00-03 What is soc.org.nonprofit?
======== Section 1: STARTUP AND DEFINITIONS
Q01-01 Where to start
Q01-02 How do I go about incorporating an organization as a nonprofit?
Q01-03 Do I need a lawyer to do this? How much should I pay?
Q01-04 What actual documents do I need? Which filings come first?
Q01-05 Can the organization operate during this process?
Q01-06 Which is right: nonprofit, non-profit or not-for-profit?
Q01-07 Will a trademark protect my organization's name on the net?
======== Section 2: HARDWARE/SOFTWARE
Q02-01: How important is a computer system? Can I get hardware donated?
Q02-02: My board really doesn't want to spend money
Q02-03: My Board member says to use his/her brother-in-law as a vendor.
Q02-04: What's reasonable to spend?
Q02-05: What if they won't even spend that?
Q02-06: How can I get software donated?
Q02-07: What's the best kind of accounting software?
Q02-08: What's the best kind of client or donor-tracking software?
======== Section 3: MANAGEMENT/BOARDS
Q03-01 What are good jobs to keep board members involved productively?
Q03-02 Shouldn't Board members be out raising money and doing PR?
Q03-03 How can my organization do a self assessment?
Q03-04 Do a nonprofit's board meetings have to be open to the public?
Q03-05 Don't Board lists have to be made public?
Q03-06 We can't afford a full office and staff. Where can we turn?
-
----------------------------------- Part 2 ----------------------------
Q03-07 Are Board members personally liable? Do we need D & O
Insurance?
Q03-08 What are some good programs in Non-profit Management?
======== Section 4: ANNUAL AND CAPITAL CAMPAIGNS/PROGRAM FEES/OTHER
SOURCES
Q04-01 How can I determine my program costs easily?
Q04-02 How can I get non-philanthropic corporate support?
======== Section 5: EVENTS
Q05-01 What kind of events are best to raise money with little cost?
======== Section 6: NON-CASH DONATIONS
Q06-01 Can donated equipment be deductible for the donor?
Q06-02 Can we sell the donated equipment and use the proceeds?
======== Section 7: GRANTSEEKING & GRANTWRITING
Q07-01 I keep hearing about people getting grants -- how do they do it?
Q07-02 Where do we start?
Q07-03 How can we decide which foundations to send proposals to?
Q07-04 How can we learn more about what funders want in a proposal?
-
----------------------------------- Part 3 ----------------------------
Q07-05 How do you get started writing a proposal?
Q07-06 What characterizes a good proposal?
Q07-07 How can we better the odds of getting a grant?
Q07-08 Sources of information for grantwriting and research.
======== Section 8: NON-DONATED INCOME
Q08-01: When can a NPO charge?
Q08-02: Can I sell things and still be a tax-exempt organization?
======== Section 9: PLANNED GIVING: WILLS, TRUSTS AND BEQUESTS [In
preparation.]
======== Section 10: MARKETING
Q10-01 What is marketing?
Q10-02 Why would nonprofit organizations want to market?
Q10-03 Why are nonprofits so reluctant to market?
Q10-04 Where can I find some simple marketing ideas?
Q10-05 What if all our money comes from government contracts and
donations?
Q10-06 How do I market my agency?
Q10-07 How do I define my programs so people will understand?
Q10-08 How do I determine my market?
Q10-09 To whom do I aim my marketing?
Q10-10 How do I set my marketing strategy?
Q10-11 What are some simple, low or no cost things I can do to start?
Q10-12 What is marketing research?
Q10-13 How is "market research" different from "marketing research"?
Q10-14 When should I conduct marketing research?
Q10-15 How do I do market research?
Q10-16 How do I do some low cost marketing research?
Q10-17 What's this business about "internal marketing"?
Q10-18 How do I carry out internal marketing?
Q10-19 What should we say to our employees about philanthropy?
======== Section 11: INTERNET RESOURCES
Q11-01 Where can I find useful resources on the net?
Q11-02 What are some ways that nonprofits can use the net?
-
----------------------------------- Part 4 ----------------------------
======== Section 12: COMMUNITY RELATIONS
Q12-01 Local Organizations State-by-State
Q12-02 National Support and Advocacy Organizations
Q12-03 White House and Federal Agency Liaisons
======== Section 13: INTERNATIONAL [In preparation.]
======== Section 14: BIBLIOGRAPHY
======== Section 15: THEORY AND BACKGROUND
Q15-01 Can a nonprofit be a business?
Q15-02 Who can benefit from a nonprofit's activities?
======== Section 16: CONTRIBUTORS TO THIS FAQ DOCUMENT
==============================
Subject: FAQ posting information
FPI-01 Copyright
This
document (c) Copyright 1994, all rights reserved. Redistribution of
this document is hereby freely granted so long as the document is
redistributed in its entirety (here interpreted as all text which were
not
automated generated by software as part of the distribution process); in
particular, with attributions and this copyright notice.
==============================
Subject: 2. HARDWARE/SOFTWARE
Q02-01 through Q02-06 are in Part 1 of the FAQ.
Q02-07: What's the best kind of accounting software?
Fund
accounting software programs are sophisticated software for
nonprofits that use/need fund accounting methods. They maintain
separate balance sheet data (assets, liabilities, fund balance) for each
account. Unless you need this level of accounting, you may find a
business
software suitable i.e. Quicken or Quickbooks or OneWrite Plus. Some of
the
following fund accounting software packages have not heard about the
meaning
of "user friendly."
Whatever
package you choose, be alert to complying to the regulations being
promulgated by the Financial Accounting Standards Board. Statements 116
and
117 (effective 1/1/95) alter how nonprofits should tabulate gifts and
present
their financial information in audited statements.
The
following are new fund accounting software. No recommendations are
made.
FundWare
- 16 modules (General Ledger, Accounts Receivable, Payable, etc.)
American Fundware (Denver, CO 800-551-4458
$695 - $2395 per module. Average cost $995 per.
Blackbaud
(Charleston, SC 800-443-9441)
General Ledger 5.10, Payroll 5 plus others
$2000 for single users.
Fund-Plus
Cougar Mountain Software (Boise, ID 208-344-2540)
General Ledger, a spreadsheet-based report writer, automatic tracking of
encumbrances.
$2000 single user, add $1000 for multi-user, add $150 for add on
modules.
Version
5.01
Echo Management Group (Center Conway, NH 800-635-8209)
General ledger, accounts payable, quick receivables, financial report
writing, budgeting.
$4,500 single user, $6300 for multi-users.
Fund
Accounting Software Series, Version 3.4 for small nonprofits
and Version 5.3 for larger nonprofits
Executive Data Systems, Inc. (Marietta, GA 800-272-3374)
A Windows application. General Ledger, Donor Records, Accounts Payable,
and
Payroll.
$425 for first 3 single user. Plus $425 for payroll.
Fund
E-Z
Fund E-Z Development Corp. (White Plains, NY 914-696-0900)
General Ledger plus other modules. Will work on 286's with 20MB HD.
$980 for General Ledger single user plus $500 for multi-users.
Institutional
Data Systems (New Rochelle, NY 914-659-2332)
Version 3.6 General Ledger with Budgets, Accounts Receivable, Accounts
Payable with Check Writing, Costs Allocations, 7 modules in all.
$395 per module plus annual support.
Fund
Accounting 4.0
Kenrick Technologies, Inc. (St. Louis, MO 800-659-2022)
$1295 for general ledger single user, Network starts at $995, and add on
modules are $595 or more.
MIP
Fund Accounting System 8.0
Micro Information Products (Austin, TX 800-647-3863)
General Ledger and other modules
No information on cost.
If
you are a small nonprofit with relatively simple financial reporting
needs, consider one of the small business packages as mentioned in the
first
paragraph. Unless you have an accountant or experienced bookkeeper using
the packages listed here, you will most likely find them daunting.
Recommend you ask others in your local area what software they are
using. Then you will have someone to talk with when you have questions.
Q02-08: What's the best kind of software for client tracking and donor
tracking? Easiest for mail merge?
Depends.
How many records might you have? How flexible do you
want it to be?
Q & A (Symantec; versions for DOS & Windows)
Appears
to be most flexible for up to about 5000 records.
Capable of doing donor tracking and even billing (precluding need for
separate software) as well as having own Write feature for mail merge.
[Some
other database programs require a link from a document
generated in a word processor (e.g., WordPerfect) to the database.
Generally much less convenient.]
The
following responses have been received recently on the group to
questions about software. Clearly, agencies use a variety of programs
and most recommend developing your own to meet your own needs.
This
section does not apply to software specifically designed
for fundraising or donor tracking; however, you may not need
such narrow applications.
ACT! for DOS by SYMANTECS
Comments:
It's simple, It's effective, it works. You can enter custom
information, track expenses, fax, email, telephone and schedule as well
as do
mass mailings and print lables.
Filemaker Pro and Filemaker Pro 2.0 by Claris
Comments:
Can design for very detailed information, comes with terrific
ready-to-use templates and a tutorial. Very flexible, easy to learn,
non-relational database program. You can determine the number, size, and
type of fields you'd like. Shouldn't cost more than $200 through
mailorder.
Sidekick for Windows $29 at Egghead No comments.
"shareware"
stand alone DOS program called Prospect and/or In Control from
Paul Sax, Richardson TX 75085.
Comments:
User has used for six years and does not know if Sax is still at
this address.
Q & A for Windows
Comments:
No trouble using it. It comes with a converter to convert Q&A for
DOS files and has a network version. A flat file database.
Writer's
2 cents worth: Q&A was fast, easy, and just what I needed 4-5
years ago to set up databases (sophisticated mailing lists, really) for
clients. I've since used Paradox for DOS and Windows and now Access 2.0
and
believe Access for Windows is the way to go. It is fast, powerful, easy
to
use, and has the same MS interface you know and love."
Paradox by Borland
Comments:
Its OK but has some non-intuitive, poorly documented features that
someone has to show you or you have to be a real computer maven to
figure
out. Watch out for the Windows version as it uses up memory and you may
have
to upgrade your computer/s. However, can get from Gifts in Kind.
Access
and Access for Windows
FoxPro
Microsoft Works
Again,
some users recommend buying a database package and developing your own
applications and customize it to your needs.
One
opinion is: If you have your own, in-house programmer, you can
write your own applications programs. Paradox is available from Gifts in
Kind of the United Way for a $35 processing fee. Your local United Way
can
help or write to the national United Way. Q&A has been suggested.
FoxPro,
is another, and now Dbase is out with a friendly Windows version. These
are in the $500 range.
If
you need prewritten applications software, see the list above. Some have
demo disks you can review. There were three articles in the October 1994
issue of FUND RAISING MANAGEMENT MAGAZINE you will find helpful.
"Selecting
Computer Software for Fund Raising," "1994 Non-Profit Software
Directory" (a
listing of 63 applications software developers, their programs, and
prices),
and "Development Software Requirement Checklist" Since the material is
copywrited, it is not included here. Write or call
Fund
Raising Management Magazine
224 Seventh St.
Garden City, NY 11530
516-746-6700 800-229-6700
FAX 516-294-8141
==============================
Subject: 3. MANAGEMENT/BOARDS
Q03-01 What are good jobs to keep board members involved productively?
First
and foremost: Think about leaders in a different way than you might
think about office volunteers. Leadership leads. They set policy.
Maybe with professional staff's guidance and recommendations; but it's
their responsibility, both legally and organizationally.
Committees
are one of the best ways to engage people who want to help.
Engage them in areas where they have an interest and can be most
helpful.
Committees do much of the preliminary work on certain topics; they
gather
information and make recommendations between board meetings. If the real
work doesn't happen then, it's very difficult for the organization to be
effective.
Common
committees are: Executive, development (both people and money,
though usually the latter), nominating, personnel, finance, audit and
education.
[See also Q03-02 below]
Jane Garthson adds:
I
think they should be out fundraising and raising public awareness on the
agency's mission.
Are there some other "regular" activities they should be involved in?"
The
role of a Board is something the Board and Executive Director (ED)
should
spend time defining, as it is critical and not simple.
I
assume in this case there are staff and non-Board volunteers, so the
Board
is not delivering the services of your agency. In that case, the Board
role
is normally defined as primarily policy-setting the overall direction
for the
organization (desired "ends") and leaving the "means" and details up to
the
Executive Director and staff. The Board must manage its relationship
with
the ED, including hiring, appraisal and dismissal as for any management
relationship, but also including setting any limits on his or her
authority.
For example, does the Board want approval of capital projects but will
leave
operational cost decisions to the ED?
The
Board's role is to represent members, clients and other stakeholders in
making the major decisions for the organization. It also represents the
agency to the community, and as such must be involved in public
awareness and
fund-raising to some extent. The extent relates to the availability of
staff
time and expertise and the relationship with major donors and partners.
Board member time on fund-raising is usually better spent in meeting
with
foundations, corporations, service clubs and the like than in event
organization.
The
Board must take responsibility for its own renewal and development. In
other words, it must find replacements for members whose terms are
expiring,
and should do so in consideration of skills gaps, representation gaps
(e.g.
if no clients are on the board, find some, or some proxy clients; for
example, all clients are children, find parents for the Board). Thus, if
the
Board has no other committee, it should have a Nominating Committee
preparing
for the election and Annual General Meeting.
One
Board I am on has split the work of Board members between "Board"
committees-Nominating, Fund-Raising, Public Relations, Planning and
Evalution
(at the organization level, not the program level), and
Finance/Audit-and
"Management" Committees. The Executive Director decides what management
committees are needed and whether he wants any board members on them,
basically they let him have access to board members with special skills
so
they can help him carry out his management responsibilities. Board
committees report to the Board at Board meetings; management committees
do
not although the Executive Director's report may deal with their issues
and
progress.
Another
board I am on has no staff, only an association management company
that charges for each task, so we even do things like banking ourselves.
We
have no choice about being hands-on, but as much as possible such
details
should be kept out of Board meetings so that the Board as a group can
concentrate on its leadership responsibilities.
Our
Board also includes people who are regular volunteers in our programs,
so
we don't lose touch with the clients, staff and other volunteers.
There
are a number of books about boards (don't bother with anything written
before 1990; the thinking is changing too much) and many colleges and
unversities have courses in non-profit management, ranging one day
seminars
to MBA programs. If there is an umbrella group in your community they
may
also run conferences or seminars; in my community the United Way takes
lead
on this.
Q03-02 Shouldn't Board members be out raising money and doing PR?
Sure.
If they're not committed, who will be? They are the most
effective spokespersons for the organization or institution. However,
there are other basic responsibilities that boards should be aware of:
-
Determine the organization's mission and purposes
- Select the executive staff through an appropriate process
- Provide ongoing support and guidance for the executive; review his/her
performance
- Ensure effective organizational planning
- Ensure adequate resources
- Manage resources effectively (the buck stops with them, ultimately)
- Determine and monitor the organization's programs and services
- Enhance the organization's public image
- Serve as a court of appeal
- Assess its own performance
From
Ten Basic Responsibilities of Nonprofit Boards,published by the
National Center for Nonprofit Boards, Washington, DC 20036.
Gopher: ncnb.org 7002
Q03-03
How can my organization do a self assessment without a full-blown
retreat plus designing the assessment itself?
The
Hogg Foundation at the University of Texas, Austin will
be publishing an organizational self assessment manual (OSA) contains
complete step by step guidelines for voluntary organizations wishing to
do their own low cost assessment.
It
includes a survey, how to adapt it for your organization, and how to
adapt procedures for small and large organizations. The manual walks you
through the entire process from choosing a committee and getting your
members motivated to what to do with the data once you've
collected and analyzed it.
The
manual is currently under review, but it should be available this
year from the Hogg Foundation for a minimal charge. Their number is
512-471-5041.
Q03-04 Do a nonprofit's board meetings have to be open to the public?
What if a group hostile to the organization wants to attend?
Check
your own state for its specific regulations concerning both
membership and non-membership regulations.
For example:
According
to state law in Pennsylvania, there is no requirement to have
board meetings open to the public.
If
it is a membership organization, there must be one annual
meeting open to the membership (but not the general public).
If it is not a membership organization, all board meetings can
be closed to the public. This is according to the PA Nonprofit
Corporation Law of 1992.
Basically,
the organization's by laws should state the policy regarding
open or closed meetings; when they are allowed to operate in "executive
session" (i.e, when doing performance reviews or professional staff
contract negotiations.)
If
the by laws do not address this issue, they should say which guidelines
for operations do apply; e.g., Roberts Rules of Order or other
commonly-accepted, comprehensive guidelines.
Also:
Any 501(c)(3) is required to make both its 1023 and its 990
available to anyone on request. We understand there are recent changes
is just *how* the organization must make them available. Regardless:
There are realistic and painful penalties for refusing to do so. Both
documents include board lists.
Perhaps
there are non-charitable nonprofits which could get away with not
letting someone know who's on the board. But we have not been talking
about such organizations in this file.
Further:
Any organization wanting to maintain public confidence and support
would be /very/ foolish to exclude people without a watertight reason.
Q03-05
Don't Board lists have to be made public by the department in
state government that keeps records on corporations granted non-profit
status?
One
research team reports that when they were surveying nonprofit board
composition, they found that some organizations would not provide them
with lists of current board members -- and that there was no way they
could legally compel them to do so.
Q03-06 We can't afford a full office and staff. Where can we turn?
The
Tides Foundation is a small but very innovative organization in San
Francisco which provides administrative support to non-profits.
Paraphrased excerpt from their own literature:
If
an organization wishes to be a Tides Foundation project, essentially
they turn over all of their administrative non-program activities to the
Tides Foundation and pay the foundation 8% of their gross revenue.
All organization employees are then employed by the Tides Foundation,
provided with a benefit package and operate under the foundation's
personnel
policies. All governmental filings, tax reports, annual reports, etc.
are prepared and submitted by the Tides Foundation. All legal contracts
are reviewed by TF lawyers prior to their being executed. All purchases
greater than $250 must be OKed by TF program representatives before
purchase. Staff hirings/firings must be reviewed by TF representatives.
In
return, TF assigns an individual to that organization to assist with
day-to-day non-programmatic operations. A fundraising plan is worked out
and closely monitored. Other sources of potential funding are directed
toward the program by TF representatives.
In
essence, Tides Foundation has found a way to (paraphrasing
appropriately)
"let activists be activists." The observation from TF is that
progressive
activists are probably pretty good at actually doing things in their
communities, but not very good at handling administrative chores, like
timely reporting, personnel administration, etc.
Q03-07: Are Board members personally liable? Do we need D & O Insurance?
For valuable information on everything related, contact
Nonprofit
Risk Management Center
1001 Connecticut Ave NW, Suite 900
Washington, DC 10036-5504
They
offer many analytical publications, including "Guidebook for
Directors of Nonprofit Corporations" ($19.95) and "D&O - Yes or No?
Directors and Officers Insurance for the Volunteer Board" ($6). Shipping
is $3 for the first item and $.50 for each additonal.
Q03-08: What are some good programs in Non-profit Management?
There
are many, throughout the country. In the West, there is a
program at University of California - Berkeley. Four others are:
The
University of San Francisco, which offers:
- - - --Master in Nonprofit Administration
- - - --Executive Certificate in Nonprofit Managment
- - - --Development Director Certificate
- - - --Executive Certificate in Nonprofit Management for Religious
Organizations
1-800-281-5180 if
you are outside the 415 area code
415-750-5182 for
the certificate programs
415-666-6000 for
the master program
San
Jose State University offers:
- - - --Certificate in Nonprofit Management
- - - --Certificate in Development
Call the Nonprofit Development Center at 408-452-8181
(I did most of the Management program a while ago; it was excellent)
Indiana
University Center of Philantrhopy Fund Raising School offers courses
all over the U.S., including San Francisco; 317-274-7063
Golden
Gate University offers an M.A. Degree, and MBA degree, or a
Certificate in Arts Administration through their School of Management
[No number available; located in San Francisco.]
Andy
Sachs wrote 10/31/94:
Still yet another nonprofit management program is at the Duke
University School of Continuing Education run by Marilyn Hartman.
It offers a certificate in Nonprofit Mgmt and in addition to courses
each semester holds a fantastic 3-day Institute in a retreat setting
in the North Carolina mountains on Nonprofit Leadership.
Pam
Fox wrote 10/27/94:
Stanford University's Graduate School of Business has a special interest
in nonprofit management as part of its regular MBA program. I'm taking a
course right now in "Strategic Management of Nonprofits" and last
quarter
took "Financial Management of Nonprofits." For more information contact
Alison Davis at 415-723-4201 or
send me an e-mail at 95p...@gsb.stanford.edu
==============================
Subject: 4. ANNUAL AND CAPITAL CAMPAIGNS/PROGRAM FEES
This
section will not be a primer on campaigns. Rather, questions of
general interest and their answers will be posted as they arise.
Q04-01: How can I determine my program costs easily?
Jane
Garthson replies: I don't have an easy answer for your question on
assigning program costs.
I
do suggest that you force yourself to work through the numbers. My
charity
(which serves people with disabilities, like yours) is trying to help
more clients recover their fees from their health insurance plans. We
could
charge more for certain services that take much more professional and
volunteer time, if we could justify these costs better. We're working on
it.
Another
use for good figures is in fund-raising and sponsorship. We provide
therapeutic riding. If we can identify the right cost for a rider for a
semester, or to care for a horse for a year, we can use those amounts to
find
sponsors for specific horses or for needy individuals who can't afford
our
fees (we don't turn them away in the meantime). And we can use them as
suggested amounts in direct mail; people like to know what their
donation is
"buying".
I
don't think we are including major capital, as these projects can really
skew annual amounts and we have donors who will pay only for capital
projects.
I
think your board should re-think its fee policy if you are finding
fund-raising as difficult as we are. You may be giving 'charity' in
cases
where an insurance plan or a government program could and would pay. If
you
asked for a reasonable fee, you could still drop the fee for those who
couldn't pay, and perhaps you would be able to serve more clients or
meet
more needs of existing clients.
Q04-02: How can I get non-philanthropic corporate support?
You
might appeal to their corporate marketing program instead of
to the philanthropy area. If you can help a company get positive
publicity, favourable media coverage, etc., then they can treat the
donation as an advertising cost. The marketing department usually has a
much bigger budget than the donations committee does.
Make
sure the results are not just one-time. Give them good PR in your
annual report, at the AGM, on signs at events, etc., so you are building
a
long term relationship with an expectation of annual
partnerships/donations.
==============================
Subject: 5. EVENTS
Q05-01 What kind of events are best to raise money with little cost?
Events
rarely raise serious money until they have become well-established,
much-anticipated community traditions. This requires a great deal of
work,
faith, and donor cultivation, as well as years of refining and expanding
the event.
Unless
your community is hungry for events, time and energy might better
be spent in other ways. Most organizations considered successful in
fundraising regard events regarded as public relations efforts and
important elements for donor recognition, rather than significant
fund-raisers.
==============================
Subject: 6. NON-CASH DONATIONS
Q06-01 Can donated equipment be deductible for the donor?
I
am making a documentary film. My production group is a non-profit.
People are willing to give equipment to us in return for a tax
deduction.
Is that legal?
If
you have been recognized as a 501(c)(3) by the Internal Revenue
Service, probably. That's what such recognition is about. If you
haven't been, it's up to the donor to prove (if questioned by the IRS)
that you meet the qualifications -- you must be an organization
(donations to individuals are never deductible per se), and you have to
meet the conditions included in 501(c)(3) for eligibility. Many donors,
including nearly all foundations and corporate community-affairs
departments, require 501(c)(3) status as a condition of making any
donation.
Sometimes
donors are willing to countenance pass through arrangements
where a recognized 501(c)(3) accepts the gift on behalf of another
organization. In this case, the accepting organization must be sure that
the gift and the act of passing it on to the ultimate recipient are
consistent with its tax-exempt status (i.e., with the purposes and
activities which it declares in its articles of incorporation and
by-laws
and which have been accepted as the basis of its organization and
exemption by the relevant state and federal authorities).
In
general, it is recommended that if the amounts in question are small,
the
donors should forego the tax-deductions unless the situation is
absolutely
clear. They could easily spend more in accounting and attorney expenses
than the tax-benefits they would receive. If the amounts in question are
large, then you should probably explore both obtaining 501(c)(3) status
for yourself and creating a formal pass-through arrangement with a
suitable intermediary (an established film-training school, for example,
that is already recognized as a 501(c)(3)). Which option will prove best
for you will depend on what community resources you can call on to
smooth
the process and develop the necessary arrangements.
Q06-02 Can we sell the donated equipment and use the proceeds?
In
general, the question of what is done with the donation is of concern
to the +donor+. The authorities view the donation as support for your
mission and are not likely to be interested in how you go about
achieving
it.
But,
as John H. Taylor has said, a "donor" can't convert trash to a
tax-deduction by "giving" it to a worthy recipient who connives in
the transaction and then simply discards the unwanted stuff.
There
are lots of good books and other reference materials about these
subjects. Many public libraries and community foundations (even in
small communities) have a "fund raising center" where materials of
this sort are collected. If the issue is important to your success
(or the amounts of money could get large), it's worth more research.
==============================
Subject: 7. GRANTSEEKING & GRANTWRITING
By Carol Bowles-Tyndale <car...@oldcolo.com>
Q07-01 I keep hearing about people getting grants -- how do they do it?
With
diligent research, sound organization, and supportable proposals.
Do not be lured into chasing grants just because they are apparently
available; stick to your organization's mission and real needs, then
search for funders who are interested in the kind of thing you do and
cultivate those funders.
Q07-02 Where do we start?
First,
assess your organization. What is its niche? How is it different
from (better than) others of the same type? How do its activities fit
its
mission? Where is it going? Has this changed recently? Have you a
long-range plan? What are the staff's qualifications? What is unique
about them? Are your Board members committed to the organization
both financially and in spirit? What experience do they bring to the
organization?
Next, define what you need money for, and how much you need. Is
there a logical connection between your organization's background and
the program or project for which you want funding? Can you clearly
identify the constituency the organization serves? How is the
organization uniquely suited to meet their needs? Do you have hard
evidence of the need for your program or project?Is it part of the long-
range plan? Why is your organization the best choice for doing this
program or project? Will you need continuing funding? If so, where
will it come from?
Then spend a lot of time doing your research. Most fair-sized libraries
will have directories of foundation and corporate grantmakers, indexed
by interest. There are also databases avialable for purchase. If you are
interested in Federal grants, make it a habit to read The Federal
Register frequently, or to check Internet listings from government
agencies. Also call pertinent state agencies to learn how to get on the
mailing lists for their RFPs.
Q07-03 How can we decide which foundations to send proposals to?
Look
first to those that are located in your state, then to national
foundations that have very narrow interests which include a close fit to
your program or project. Be alert for key words or phrases in the
foundation's stated purpose and statement of limitations.
Q07-04 How can we learn more about what funders want in a proposal?
Send
a brief letter describing your organization and requesting
guidelines. If the directory shows that a foundation publishes an annual
report, ask for it, too. Some foundations will respond (in polite
language) that you haven't a chance with them; some will ignore your
request; and some will send very helpful information. Study it
carefully.
Many foundations welcome phone calls and will give you a frank estimate
of
your chances. Be prepared to answer pointed questions about your
organization, your project, and your plans.
==============================
Subject: 16. CONTRIBUTORS TO THIS FAQ DOCUMENT
The
editor of SOC.ORG.NONPROFIT FAQ is Ina Frank. Suggestions and
comments for new questions, new answers, corrections and additions to
this document should be sent to her <inaf...@rain.org>.
The
maintainer of the FAQ is Putnam Barber. Complete new entries (such
as the names and addresses of organizations, books to be included in the
bibliography, etc) can be sent to him, as well as comments on the
general
formatting and presentation of the FAQ or ideas about how to make is
more
useful to the on-line community.
The
list of known contributors to the first posting of SOC.ORG.NONPROFIT
FAQ is below. Not every name was properly recorded, though, in the early
days of capturing traffic in the newsgroup. If you can help us correct
or extend this list to give fuller credit to the many people who
contribute to the field by posting here, please do.
Putnam
Barber <pba...@eskimo.com>
Carol Bowles-Tyndale <car...@oldcolo.com>
James R. Caplan <capl...@servax.fiu.edu>
Jayne Cravens <Jcra...@aol.com>
Ina Frank <inaf...@rain.org>
Michael Goldstein <mgol...@capcon.net>
Madeline Gonzales <made...@SPOT.COLORADO.EDU>
Alice Hershiser <hers...@clpgh.org>
Munn Heydorn <mu...@interaccess.com>
Ping Huang <psh...@MIT.EDU>
Cliff Landesman <clan...@panix.com>
Tim Mills-Gronigner <it...@igc.apc.org>
Thomas A. Newman <new...@cobra.ordata.com>
Nancy Normen <NaA...@aol.com>
(11/2/94)
End
of soc.org.nonprofits FAQ Digest Part 2/4
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