GuideStar Blog

Generally, the IRS limits lobbying by a public charity to what is called an “insubstantial” amount of its overall activity. Because the meaning of that word is obviously open to interpretation (and disagreement), over the past 40 years, Congress has attempted to clarify what is or is not considered excessive lobbying.

On September 10th, we held the webinar “Finding Funding with Foundation Center" with George Ford and Leeanne G-Bowley of the Foundation Center — in which we discussed best practices in diversifying an organization’s funding mix through foundation grants and an introduction to Foundation Directory Online Professional, the comprehensive database of U.S. grantmakers and their grants. (GuideStar Exchange participants receive a 10% discount on Foundation Directory Online Professional). We also discussed grantseeker training with the Foundation Center and walked through the options available. (GuideStar Exchange participants receive 20% off these courses — excluding Grantseeker Training Institute).

While we answered many of your questions during the live event, we wanted to provide more insight from George and Leeanne for the questions we did not have a chance to answer.

Don’t forget that you can access the recording of the event here and the slides used during the event here. You can also find this Q&A on our Tumblr.

Q: I am new to the Foundation Database. Where is the first place to start my research for funding?

Leeanne G-Bowley (LGB): I would suggest starting with the Search Grantmakers database and begin your search using the Fields of Interest and Geographic Area fields relevant to your organization and programs. You’ll then be able to refine your results from there. The Help section offers tips and tutorials for getting started.

Q: Where can I get information on boot camps and classes?

LGB: Visit www.foundationcenter.org/training for up to date information about our training classes — this includes the Boot Camp and other courses.

As a reminder, GuideStar Exchange participants receive 20% off training courses (excluding Grantseeker Training Institute).

Q: I’m a total newbie — 3 weeks on the job. I have been asked to seek funding for my organization. Where is the best place to start?

LGB: If you are a newbie, you should definitely check out Grantspace.org and view all of our free and fee based courses. If you are near one of our offices or a Funding Information Partner (www.foundationcenter.org/locations), you should stop by and speak to a reference librarian or network supervisor. In terms of our full day courses, it is a good idea to start out with our Foundation Funding Essentials course.

Q: If I subscribe to one of the categories beyond the basic version, how long does that subscription last and how can it be canceled if I find it doesn’t meet my needs?

George Ford (GF): Foundation Directory Online is offered at monthly, annual, and two-year subscription plans. You can cancel at any time by sending an email to our Customer Service department. Once you cancel, you will be able to access FDO until the end of your subscription period.

Q: Given a limited budget, if you had to sell the cost of your programs to your CEO how would you do it? What would you say?

LGB & GF: In terms of the courses—we keep the registration fees for our classes low because we know organizations do not have very large professional development budgets. Along with expert information you will receive during the training, you will receive a hands-on experience. Our classes are geared toward professionals who need skills and knowledge they can utilize right away. We offer practical activities and group work that really gives participants an understanding of best practices and concepts before they leave the training room. Also, many of our classes come with very comprehensive materials and some even come with a trial of the Foundation Directory Online Professional. As for the Foundation Directory Online Professional—it is a very comprehensive and easy-to-use database. The monthly billing option is great for smaller organizations that may just need access to the database a few times a year. Larger institutions with a dedicated fundraising team will benefit greatly from an annual subscription—as they will use it on a regular basis. Again, the cost is very low considering the power and usability of the database.

Q: Can you go over the costs again?

GF: Subscription rates for all the plan levels are available at http://foundationcenter.org/fdo.

Q: Is there a sliding scale of pricing depending on the size org you are? Meaning, we have a smaller and cannot afford this, but we need the granular data provided at that Pro level.

LGB: There is not a sliding scale, but there are over 470 Funding Information Network partners located around the United States and there are sites in 10 other countries. These Network Partners offer the Foundation Directory Online Professional for free within their location. You can find these Funding Information Network partners at http://grantspace.org/Find-Us

Please understand – I am not an advocate of knee-jerk action-for-the-sake-of-action. Good cultivation and stewardship require deliberation and creativity. But there is a vast chasm between fruitful contemplation and procrastinating. Do you get stuck reaching for the phone when you are about to call a donor to set up an appointment or ask for a gift? If so, read on.

David Lansdowne, the author of two books on fundraising, recently spoke with his publisher about raising major gifts. GuideStar has published excerpts from Mr. Lansdowne's books (see the links below), and we're pleased to be able to share his additional thoughts with you.

Let's start with a few misunderstandings boards may have about fundraising. First: Publicity raises money. True or false?

I think it was an Irish poet who said, "All publicity is good, except an obituary notice." So, certainly, publicity can be helpful sometimes. Just don't expect all your well-placed stories to raise money unless yours is an extreme case like the Boston Marathon bombing. To raise significant sums, you have to visit your prospects in person—sit right across from them and ask. Hear your heart thump. Those who think publicity raises money tend to be novices or mildly committed volunteers. They hope the media will do the heavy lifting. When it doesn't, they blame the failure not on themselves but on the lack of exposure.

Social media and nonprofit crowdfunding (or online fundraising) go together like peanut butter and jelly. Or Bonnie and Clyde. Or Bert and Ernie...

The 13^th edition of the GuideStar Nonprofit Compensation Report is now available. The report uses Form 990 compensation data for more than 94,000 organizations to report statistics on executive compensation by gender, organization type, and geography.

Here are a few highlights from the report:

• Median compensation of females continued to lag behind that of males when considering comparable positions at similar organizations. The gap ranged from 9.0 percent for CEOs at organizations with budgets of $250 thousand or less to 21.0 percent at organizations with budgets between $5 million and $10 million.
• Since 2001, the percentage of female CEOs has increased for organizations of all sizes. The majority of organizations with budgets of $1 million or less have women as CEOs, although female representation in that role declines as budget size increases. Only 16 percent of organizations with budgets of more than $50 million had female CEOs in 2011.
• Economic uncertainty continued to affect compensation increases in 2011. In 2008, median increases in incumbent CEO compensation were generally 4 percent or higher. In 2011, increases were below this level for the third consecutive year. However, increases were generally higher than in 2010.
• As usual, health and science organizations had the highest overall median salaries. Arts, religion, and animal-related organizations brought up the rear.
• For the eighth consecutive year, Washington, D.C., had the highest overall median salary of the top 20 metropolitan statistical areas (MSA). Portland, Oregon had the lowest.

The Pension Protection Act of 2006 increased the penalties for excessive benefit transactions, including overpayment of nonprofit executives. Accurate, complete, and authoritative information on the nonprofit sector is more important than ever, and the GuideStar Nonprofit Compensation Reportis a comprehensive resource to help you ensure compliance with IRS regulations on executive compensation.

Information about purchasing the report can be found here: http://www.guidestar.org/compensation.

Is your Bay Area nonprofit looking to raise funds online, use social media to drive advocacy, and turn your followers into fundraisers? Learn how at Social Media for Nonprofits and Nonprofit Boot Camp in San Francisco on October 10 & 11. The program will be the biggest nonprofit gathering of the year in the Bay Area and features an all-star lineup sharing practical tips and tools for online fundraising, marketing, and advocacy, as well as all aspects of nonprofit management.

Transparency – it’s one quality that donors, funders and other stakeholders are looking for in a nonprofit and it’s something that nonprofits are striving to achieve. Making information accessible and easy to share isn’t always a simple task, however. With this in mind, we recently overhauled our GuideStar Exchange program to better align with the information our research indicates donors and funders are looking for, and to make it easier for nonprofits to showcase their commitment to transparency. This overhaul included a new tiered program structure, new benefits for participation, a new, easier platform to update information, and many other features.

For years, the segment of donors contributing most generously to successful fundraising events have been the moneyed generation, now known as the “matures.” This group ranges in age from the late 60s to the late 80s, with the average being in the early 80s.

Nothing raises interest in a good cause like telling a good story. And nothing tells a good story like the real-life people behind the real-life cause.

Only Two Hours Per Week to Major Gift Success!

If you truly want to raise major gifts next year, the time to start is now!

Reprinted from the GuideStar Blog

If you aren’t using the Web to raise funds for your nonprofit or campaign, you’re missing out. According to a report by Chronicle, online gifting yielded $2.1-billion in 2012, up 14 percent since 2011. With the help of new sites and technology designed to streamline campaigns, online fundraising is easier, and more lucrative, than ever. For instance, one Minnesota radio station raised $128.8 million in online donations just by offering an online auto-renewal for monthly donations, notes Philanthropy.com. If you want in but aren’t sure where to begin, read on to discover the many resources designed to help you succeed: