Philanthropy Front and Center - Washington, DC

Application Period Open for 2010 Echoing Green Fellowships

Echoing Green invests in and supports outstanding emerging social entrepreneurs to launch new organizations that deliver bold, high-impact solutions. Each year, Echoing Green awards 12-15 two-year fellowships to social entrepreneurs. The Echoing Green Fellowship provides up to $90,000 in seed funding and support. Echoing Green has provided support to social entrepreneurs like Wendy Kopp of Teach For America, John Alford of NOLA 180 and Karen Tse of International Bridges to Justice.

The deadline for submissions is December 2, 2009. Click here to apply - or visit http://application.echoinggreen.org.

Find out whether you qualify: http://www.echoinggreen.org/shouldyouapply.

Questions? Contact Deva Jones, Recruitment Associate, at deva@echoinggreen.org.

Thanks to Charlotte Dion, Director, Foundation Center's New York Library, for sharing this post.

The deadline for submissions is December 2, 2009. Click here to apply - or visit http://application.echoinggreen.org.

Find out whether you qualify: http://www.echoinggreen.org/shouldyouapply.

Questions? Contact Deva Jones, Recruitment Associate, at deva@echoinggreen.org.

Thanks to Charlotte Dion, Director, Foundation Center's New York Library, for sharing this post.

New Digital Publication - Celebrity Foundation Directory

The Foundation Center has just published the first edition of the Celebrity Foundation Directory.

This new title includes detailed descriptions of thousands of foundations started by VIPs in the fields of business, entertainment, politics, and sports. Through their private foundations, many notable individuals have made significant contributions to help underserved populations and provide support for medical research, green technology, and countless other causes they care about. Oprah Winfrey, Tiger Woods, and Michael J. Fox are just a few examples of individuals who have made headlines for their support to philanthropic causes.

This new directory links celebrities with their grantmaking organizations and will help you identify which individuals or organizations may have an interest in funding your programs and activities. The interactive digital format allows for faster access to foundation profiles and includes links to additional grantmaker data online. The directory is also fully indexed for quick reference to information on individuals and foundations.

The Celebrity Foundation Directory is available for purchase at our web site. Buy now >>

Visit the Marketplace section of our web site for more information on this and other Foundation Center publications.

Decline in 2009 Foundation Giving Steeper Than Anticipated, According to New Foundation Center Survey

In September 2009, the Foundation Center conducted a follow-up to its January 2009 giving forecast survey to determine foundation expectations for giving beyond 2009. The survey responses from over 600 grantmakers have been analyzed and indicate that giving from foundations is expected to decline by more than 10 percent in 2009, and continued reductions are expected in 2010. "Foundations will be giving less than they expected at the beginning of the year," said Bradford K. Smith, president of the Foundation Center. "But many are rethinking their grantmaking so that fewer dollars will not necessarily mean less impact."

Foundations' Year-end Outlook for Giving and the Sector is the latest in the Center's research advisory series that explores the impact of the economic downturn on the nonprofit sector. The advisories and the online chart "In Their Own Words: 2009 Foundation Giving Forecast" are available at the Center's Focus on the Economic Crisis web page.

The report can be downloaded at no charge from the Gain Knowledge area of the Center's web site.

Next Week at the Foundation Center (November 9-13)

Courses:
Building a Fundraising Board
Wednesday, November 11, 9:00 am-4:00 pm
cost: $195 per person;
Save $25 for each additional registration

Special Program:
Legal Issues Every Nonprofit Manager and Trustee Should Know
Monday, November 9, 10:00 am-2:00 pm

Classes:
Fundraising in a Challenging Economy
Tuesday, November 10, 10:00-11:15 am

Your Board and Fundraising: An Introductory Class
Tuesday, November 10, 11:45 am-1:15 pm

Grantseeking Basics
Thursday, November 12, 10:30 am-12:00 pm

Introduction to Foundation Directory Online
Thursday, November 12, 12:15-1:15 pm

Introduction to Corporate Giving
Friday, November 13, 11:00 am-12:15 pm

These classes are free to attend, but registration is required. For programs offered over the next three months, please see our Events Calendar.

Library:
Use Foundation Directory Online Professional, borrow books, and get reference help free of charge with no appointment necessary. See our website for directions.

Hours:
Monday/Wednesday/Thursday/Friday
10:00 am-5:00 pm
Tuesday
10:00 am-8:00 pm

New Partnership for Two DC Health Funders Simplifies Application Process

The Meyer Foundation recently announced that it is beginning a new partnership with the Consumer Health Foundation (CHF), the leading health funder in the Greater Washington region. Beginning next year, CHF will manage the application process for Meyer's health and mental health grants.

These two foundations have worked closely together for nearly a decade and have overlapping interests in their funding priorities and grantees. This partnership will allow them to share knowledge and will help to streamline and simplify the application and reporting processes. CHF will accept proposals for Meyer's health related funding by invitation only starting in 2010. You can find more details about this collaboration on the Meyer Foundation web site.

This partnership serves as an excellent example of grantmakers working to improve the application process for grantseekers -- which is the main goal of Project Streamline. Project Streamline is a collaborative effort of organizations from both sides of the grantmaker/grantseeker divide who are studying grant application and reporting practices, their impact on grantseekers and grantmakers, and the implications for the field.

The Meyer Foundation and the Foundation Center, along with many  other organizations, are participating in this discussion to explore ways to simplify the application process and reduce costs on both sides. You can visit the Project Streamline web site to review recommendations issued by this group, download its report Drowning in Paperwork, Distracted from Purpose [pdf], or register for an online newsletter to keep up with new information.

Listen! David La Piana Discusses How Nonprofits Should Approach Strategic Restructuring

David La Piana, author of Strategic Restructuring: Mergers, Integrations and Alliances, recently sat down with Janet Camarena, Director, Foundation Center-San Francisco, to talk about best practices in how nonprofits should approach collaborations, mergers, and other types of partnerships. Listen>>

David La Piana, author of Strategic Restructuring: Mergers, Integrations and Alliances, recently sat down with Janet Camarena, Director, Foundation Center-San Francisco, to talk about best practices in how nonprofits should approach collaborations, mergers, and other types of partnerships. Listen>>

Next Week at the Foundation Center (November 2-6)

Courses:
Earned Income: Assessing Your Nonprofit's Revenue Options
Tuesday, November 3, 9:00 am-4:00 pm
cost: $195 per person;
Save $25 for each additional registration

Developing a Fundraising Plan
Friday, November 6, 9:00 am-4:00 pm
cost: $195 per person;
Save $25 for each additional registration

Classes:
Principios de la escritura de propuestas
Proposal Writing Basics (in Spanish)
Monday, November 2, 9:00 am-12:00 pm

Grantseeking Basics for Individuals in the Arts
Wednesday, November 4, 2:00-3:15 pm

Before You Seek a Grant: A Checklist for New Nonprofits
Thursday, November 5, 9:30-11:00 am

Introduction to Fundraising Planning
Thursday, November 5, 11:30 am-12:30 pm

These classes are free to attend, but registration is required. For programs offered over the next three months, please see our Events Calendar.

Library:
Use Foundation Directory Online Professional, borrow books, and get reference help free of charge with no appointment necessary. See our website for directions.

Hours:
Monday/Wednesday/Thursday/Friday
10:00 am-5:00 pm
Tuesday
10:00 am-8:00 pm

Frightening Proposals

Foundation staff review stacks upon stacks of grant proposals each year. From time to time, they may even see proposals that are downright scary. In the spirit of Halloween, here are three 'monster' proposals that you should hope to avoid.

Frankenstein's Monster
Sure - it sounds easy enough. Everyone writes their respective sections of the proposal and then puts them together in one document and sends it to the funder. Too often, however, the result can be a loosely-stitched-together proposal that is confusing and full of inconsistencies and repetition. Reviewers can tell when a proposal has been patched together without substantial revision, and a narrative that is disorganized and incoherent is much less convincing than one with a uniform voice that flows smoothly from section to section.

While it's not uncommon for several different individuals in an organization to be involved in the proposal writing process, it is imperative that one person take the lead when it comes to editing and formatting the final document. This individual should review the proposal for accuracy, consistency, organization, and especially continuity. A well-edited proposal will flow naturally from section to section and convey the story of your organization and its programs with ease.

The Blob
It starts with an executive summary and a statement of need. Then the narrative hits the project description and continues to grow - rapidly surpassing 3, 5, 10 pages - until the proposal has become a bloated mass of paper and ink.

Brevity can be one of the most difficult traits to develop as a proposal writer. There is a compelling urge to include as much detail as possible when describing programs to prospective funders. However, this can cause a proposal to become lengthy and cumbersome for the reader. Besides, most applications now come with strict guidelines that limit sections of the proposal to certain page lengths. How can a proposal writer cope with these restrictions?

First, it's all about finding the right amount of detail to include. For example, if you are seeking funding for a tutoring program, the grantmaker probably doesn't need to be told how many desks are in each classroom. They might want to know, however, the number of volunteer tutors you plan to recruit and how. Other ways to keep your proposal concise include using simple, direct language and avoiding long, rambling sentences. Having an outline can also help you stay focused and remember the key points you want to get across to the reader in each section. Brevity doesn't just apply to the narrative, either, so remember to limit your attachments and supporting materials to those items that the funder specifically requests in their guidelines.

Night of the Living Dead
Who among us hasn't pulled an all-nighter? Whether it was cramming for that final exam in college or staying up to get that presentation ready for the big meeting, we've all been guilty of procrastination at some point in our lives. Still, this is no way to succeed in grantseeking.

What quality do reviewers look for most in a proposal? Clarity. This is something that you're not likely to achieve while hunched over your laptop at 2 o'clock in the morning. Moreover, the less time you leave to check through a proposal, the more likely it is that the reviewer will find troubling mistakes in grammar and spelling that may contribute  to a negative response. How do you fight the urge to put off finishing a proposal until just before the deadline?

Keeping an updated grants calendar with important submission deadlines and follow-up dates will help you stay on track with your proposals. Going even further, creating self-imposed due dates for proposals well in advance of actual deadlines is one way of ensuring that you have plenty of time to revise and edit the document before sending it off. Also, on those occasions when you become aware of a new opportunity only at the last minute, consider waiting until the next funding cycle to apply. Keep in mind - you only get one chance to make a first impression with a grantmaker. Don't let it be a frightening one!

Want some more tips on proposal writing? Try these titles from our collection:

Grant Proposal Makeover: Transform Your Request from No to Yes.
By Cheryl A. Clarke and Susan P. Fox.
San Francisco: Jossey-Bass Publishers, 2007.

The Foundation Center's Guide to Proposal Writing
(5th ed.)By Jane C. Geever.
New York: Foundation Center, 2007.

Thanks to Stephen Sherman, Reference Librarian, Foundation Center-Atlanta for this great post!

Foundation staff review stacks upon stacks of grant proposals each year. From time to time, they may even see proposals that are downright scary. In the spirit of Halloween, here are three 'monster' proposals that you should hope to avoid.

Frankenstein's Monster
Sure - it sounds easy enough. Everyone writes their respective sections of the proposal and then puts them together in one document and sends it to the funder. Too often, however, the result can be a loosely-stitched-together proposal that is confusing and full of inconsistencies and repetition. Reviewers can tell when a proposal has been patched together without substantial revision, and a narrative that is disorganized and incoherent is much less convincing than one with a uniform voice that flows smoothly from section to section.

While it's not uncommon for several different individuals in an organization to be involved in the proposal writing process, it is imperative that one person take the lead when it comes to editing and formatting the final document. This individual should review the proposal for accuracy, consistency, organization, and especially continuity. A well-edited proposal will flow naturally from section to section and convey the story of your organization and its programs with ease.

The Blob
It starts with an executive summary and a statement of need. Then the narrative hits the project description and continues to grow - rapidly surpassing 3, 5, 10 pages - until the proposal has become a bloated mass of paper and ink.

Brevity can be one of the most difficult traits to develop as a proposal writer. There is a compelling urge to include as much detail as possible when describing programs to prospective funders. However, this can cause a proposal to become lengthy and cumbersome for the reader. Besides, most applications now come with strict guidelines that limit sections of the proposal to certain page lengths. How can a proposal writer cope with these restrictions?

First, it's all about finding the right amount of detail to include. For example, if you are seeking funding for a tutoring program, the grantmaker probably doesn't need to be told how many desks are in each classroom. They might want to know, however, the number of volunteer tutors you plan to recruit and how. Other ways to keep your proposal concise include using simple, direct language and avoiding long, rambling sentences. Having an outline can also help you stay focused and remember the key points you want to get across to the reader in each section. Brevity doesn't just apply to the narrative, either, so remember to limit your attachments and supporting materials to those items that the funder specifically requests in their guidelines.

Night of the Living Dead
Who among us hasn't pulled an all-nighter? Whether it was cramming for that final exam in college or staying up to get that presentation ready for the big meeting, we've all been guilty of procrastination at some point in our lives. Still, this is no way to succeed in grantseeking.

What quality do reviewers look for most in a proposal? Clarity. This is something that you're not likely to achieve while hunched over your laptop at 2 o'clock in the morning. Moreover, the less time you leave to check through a proposal, the more likely it is that the reviewer will find troubling mistakes in grammar and spelling that may contribute  to a negative response. How do you fight the urge to put off finishing a proposal until just before the deadline?

Keeping an updated grants calendar with important submission deadlines and follow-up dates will help you stay on track with your proposals. Going even further, creating self-imposed due dates for proposals well in advance of actual deadlines is one way of ensuring that you have plenty of time to revise and edit the document before sending it off. Also, on those occasions when you become aware of a new opportunity only at the last minute, consider waiting until the next funding cycle to apply. Keep in mind - you only get one chance to make a first impression with a grantmaker. Don't let it be a frightening one!

Want some more tips on proposal writing? Try these titles from our collection:

Grant Proposal Makeover: Transform Your Request from No to Yes.
By Cheryl A. Clarke and Susan P. Fox.
San Francisco: Jossey-Bass Publishers, 2007.

The Foundation Center's Guide to Proposal Writing
(5th ed.)By Jane C. Geever.
New York: Foundation Center, 2007.

Thanks to Stephen Sherman, Reference Librarian, Foundation Center-Atlanta for this great post!

Getting Social at the White House

The Young Nonprofit Professional Network of Greater DC held its annual networking reception at the White House on October 22 in the South Court Auditorium, and I was glad to be able to attend. Guests were treated to talks by a number of Obama staffers including:  Buffy Wicks, Deputy Director, White House Office of Public Engagement; Trooper Sanders, Deputy Director of Policy, Office of the First Lady; and Sonal Shah, Director, Office of Social Innovation and Civic Participation.

Macon Phillips, Director of the White House Office of New Media, however, stole the show with his lively presentation on how the White House is using social media tools. He acknowledged that many administrators fear social media because it opens you up to "failing big in public."

In sharing tips for success with new media, Mr. Phillips stated that content is key -- a message we have heard from others during our TechSense programs. He counseled the audience not to go online just because everyone one else is. You need to have a clear message. His message is simple -- "Obama." He also underscored the need for a social media strategy. Theirs is to open up the White House so that is seen as belonging to the people, increasing engagement in government, and amplifying the administration's agenda. In fact, his post to the White House blog on Inauguration Day focused on their new media priorities.

So take a look at the White House web site to see how Mr. Phillips and his team are working to engage people. And if you missed our previous blog posts on our TechSense programs, including how nonprofits can use social media, you can find them here.

Legal Issues Every Nonprofit Manager & Trustee Should Know

Wouldn't you love the chance to get free legal information directly from an expert?  Register now for our program on November 9 -- Legal Issues Every Nonprofit Manager & Trustee Should Know.  Regina Hopkins of the D.C. Bar Pro Bono Program will discuss some of the most common legal issues nonprofits face.

In the meanwhile, the following post, originally featured on the Foundation Center-Atlanta blog, gives a great overview of what your organization can do to avoid some legal problems during the current financial crisis.

Staying Legal in Tough Economic Times By Rachel Epps Spears

Donations are down; requests for assistance are up.  Nonprofits that already operate on a lean budget are tightening the belt another notch or two.  Now is not the time to let down your guard when it comes to the legal health of your nonprofit.  Here are tips for keeping your organization out of legal trouble while you weather the economic downturn.

#1.  Don’t stop paying your taxes.

With decreased revenue, nonprofits sometimes fall into the trap of not paying employment taxes to the IRS .  Don’t do this!  The IRS won’t be moved by your charitable works; the Service wants its money.  Also, Board members should know that they can be held personally liable for a nonprofit’s failure to pay employment taxes.  As a related issue, make sure that any one you are treating as an independent contractor is correctly classified as such.  Follow the IRS guidelines or seek legal counsel to determine whether a worker is an independent contractor or an employee.  Make sure that you are properly withholding and paying employment taxes for anyone who should be treated as an employee.  See the IRS web site for more information.

#2.  Be careful when laying off employees.

When laying off employees, you must keep several things in mind to avoid future legal challenges to your decisions.  First, prepare a written layoff plan and carefully document layoff decisions.  This will help protect you from accusations that your decisions were made improperly.  Make sure that the business reason for the layoffs is clear and that the selection criteria for determining who is laid off is clearly defined so that you will have evidence if your decisions are later questioned.  Always remember that you cannot make termination decisions based on an employee’s race, national origin, sex, age, or any other characteristic protected law.  Also, before an employee is laid off, you must check if the employee has an employment agreement  and if there is an agreement, check for a certain period of service and for a severance payment.  Be aware that when you lay off an employee, he or she may be eligible for unemployment compensation.  It is important that you consult legal counsel to assist in creating a layoff plan that will be compliant with various applicable laws.

#3.  Make sure you pay minimum wage and overtime as required.

As an alternative to layoffs, you might consider retaining your employees but reducing their compensation.  Any such compensation reduction program must comply with federal and state wage and hour laws.  If you decide to lower salaries, make sure that you are still paying at or above minimum wage.  Also, don’t slack off on paying overtime to non-exempt employees.  If you don’t know the difference between exempt and non-exempt employees or haven’t carefully considered this classification, seek help.  See the Department of Labor for more information.

 #4.  Keep up to date your insurance premiums.

Insurance is costly but you need it more than ever when times are tough.  Be sure to pay all premiums due on general liability, workers’ compensation, director’s and officer’s liability and any other insurance that is vital to your organization.

#5.  Keep the Board informed and engaged.

Make sure the Board of Directors is well aware of the financial challenges facing the nonprofit and be sure to give them time to respond to those challenges.  Board members should meet more frequently, if necessary, and stay on top of any potential problems.

#6.  Check your contractual obligations.

If a lease or contract (including an independent contractor agreement) becomes too expensive or unnecessary to your business and you want to terminate, be sure to read the termination clause first and understand what risk you face by ending the contract. There may be cancellation fees or other requirements. 

Also, don’t use funds from one contract or grant to cover shortfalls in operations or other less-funded programs without properly considering your obligations under the contract and taking any necessary steps.

#7.  Renegotiate outstanding debt.

If you have a mortgage or other type of loan and are having trouble keeping up with the payments, don’t avoid your lender.  Most lenders would rather renegotiate the debt than foreclose. Contact your lender and see what can be arranged.

#8. Be sure subcontractors are being paid.

If you are in the process of building or renovating, don’t get caught between your general contractor and any unpaid subcontractors.  Make certain that your general contractor signs a release that he has received payment to pay subcontractors and make sure he pays them. 

A subcontractor that does not get paid by the contractor can put a mechanic’s lien on the property to obtain his payment.  Mechanic’s liens increase during difficult economic times.   Make sure that you have evidence that the owner paid the contractor in order to protect your organization.

#9. Be careful about additional fundraising efforts.

Nonprofits look for new and innovative ways to raise money in a bad economy but be aware that there are many laws and regulations for fundraising.  For example, Georgia has strict gaming laws governing raffles, door prizes and bingo games.  The IRS has many regulations that affect fundraising, including rules about unrelated business taxable income (UBTI). 

The UBTI regulations may require organizations to pay tax on any income (including fundraising income) that is not directly related to their charitable mission.   Finally, if you decide to try to raise additional funds by hiring a professional fundraiser, make certain the agreement will not affect your tax-exempt status.

#10. To Merge or Not to Merge?

Combining forces with another organization may be the only way to survive an economic downturn.  Although it is important that your organization’s mission, programs and culture are sustained, you must consider that merger with another organization may be the key to surviving during a period of fierce competition for scarce resources.  Combined organizations are more likely to attract funding than each organization alone and also experience more efficiency in operations.  Attorneys can help with the many legal issues that arise in a merger.

Rachel Epps Spears is the Executive Director of Pro Bono Partnership of Atlanta, a nonprofit organization whose mission is to provide free legal services to other nonprofits

Wouldn't you love the chance to get free legal information directly from an expert?  Register now for our program on November 9 -- Legal Issues Every Nonprofit Manager & Trustee Should Know.  Regina Hopkins of the D.C. Bar Pro Bono Program will discuss some of the most common legal issues nonprofits face.

In the meanwhile, the following post, originally featured on the Foundation Center-Atlanta blog, gives a great overview of what your organization can do to avoid some legal problems during the current financial crisis.

Staying Legal in Tough Economic Times By Rachel Epps Spears

Donations are down; requests for assistance are up.  Nonprofits that already operate on a lean budget are tightening the belt another notch or two.  Now is not the time to let down your guard when it comes to the legal health of your nonprofit.  Here are tips for keeping your organization out of legal trouble while you weather the economic downturn.

#1.  Don’t stop paying your taxes.

With decreased revenue, nonprofits sometimes fall into the trap of not paying employment taxes to the IRS .  Don’t do this!  The IRS won’t be moved by your charitable works; the Service wants its money.  Also, Board members should know that they can be held personally liable for a nonprofit’s failure to pay employment taxes.  As a related issue, make sure that any one you are treating as an independent contractor is correctly classified as such.  Follow the IRS guidelines or seek legal counsel to determine whether a worker is an independent contractor or an employee.  Make sure that you are properly withholding and paying employment taxes for anyone who should be treated as an employee.  See the IRS web site for more information.

#2.  Be careful when laying off employees.

When laying off employees, you must keep several things in mind to avoid future legal challenges to your decisions.  First, prepare a written layoff plan and carefully document layoff decisions.  This will help protect you from accusations that your decisions were made improperly.  Make sure that the business reason for the layoffs is clear and that the selection criteria for determining who is laid off is clearly defined so that you will have evidence if your decisions are later questioned.  Always remember that you cannot make termination decisions based on an employee’s race, national origin, sex, age, or any other characteristic protected law.  Also, before an employee is laid off, you must check if the employee has an employment agreement  and if there is an agreement, check for a certain period of service and for a severance payment.  Be aware that when you lay off an employee, he or she may be eligible for unemployment compensation.  It is important that you consult legal counsel to assist in creating a layoff plan that will be compliant with various applicable laws.

#3.  Make sure you pay minimum wage and overtime as required.

As an alternative to layoffs, you might consider retaining your employees but reducing their compensation.  Any such compensation reduction program must comply with federal and state wage and hour laws.  If you decide to lower salaries, make sure that you are still paying at or above minimum wage.  Also, don’t slack off on paying overtime to non-exempt employees.  If you don’t know the difference between exempt and non-exempt employees or haven’t carefully considered this classification, seek help.  See the Department of Labor for more information.

 #4.  Keep up to date your insurance premiums.

Insurance is costly but you need it more than ever when times are tough.  Be sure to pay all premiums due on general liability, workers’ compensation, director’s and officer’s liability and any other insurance that is vital to your organization.

#5.  Keep the Board informed and engaged.

Make sure the Board of Directors is well aware of the financial challenges facing the nonprofit and be sure to give them time to respond to those challenges.  Board members should meet more frequently, if necessary, and stay on top of any potential problems.

#6.  Check your contractual obligations.

If a lease or contract (including an independent contractor agreement) becomes too expensive or unnecessary to your business and you want to terminate, be sure to read the termination clause first and understand what risk you face by ending the contract. There may be cancellation fees or other requirements. 

Also, don’t use funds from one contract or grant to cover shortfalls in operations or other less-funded programs without properly considering your obligations under the contract and taking any necessary steps.

#7.  Renegotiate outstanding debt.

If you have a mortgage or other type of loan and are having trouble keeping up with the payments, don’t avoid your lender.  Most lenders would rather renegotiate the debt than foreclose. Contact your lender and see what can be arranged.

#8. Be sure subcontractors are being paid.

If you are in the process of building or renovating, don’t get caught between your general contractor and any unpaid subcontractors.  Make certain that your general contractor signs a release that he has received payment to pay subcontractors and make sure he pays them. 

A subcontractor that does not get paid by the contractor can put a mechanic’s lien on the property to obtain his payment.  Mechanic’s liens increase during difficult economic times.   Make sure that you have evidence that the owner paid the contractor in order to protect your organization.

#9. Be careful about additional fundraising efforts.

Nonprofits look for new and innovative ways to raise money in a bad economy but be aware that there are many laws and regulations for fundraising.  For example, Georgia has strict gaming laws governing raffles, door prizes and bingo games.  The IRS has many regulations that affect fundraising, including rules about unrelated business taxable income (UBTI). 

The UBTI regulations may require organizations to pay tax on any income (including fundraising income) that is not directly related to their charitable mission.   Finally, if you decide to try to raise additional funds by hiring a professional fundraiser, make certain the agreement will not affect your tax-exempt status.

#10. To Merge or Not to Merge?

Combining forces with another organization may be the only way to survive an economic downturn.  Although it is important that your organization’s mission, programs and culture are sustained, you must consider that merger with another organization may be the key to surviving during a period of fierce competition for scarce resources.  Combined organizations are more likely to attract funding than each organization alone and also experience more efficiency in operations.  Attorneys can help with the many legal issues that arise in a merger.

Rachel Epps Spears is the Executive Director of Pro Bono Partnership of Atlanta, a nonprofit organization whose mission is to provide free legal services to other nonprofits