Question of the Month
Be one of the first ten people to respond to this month’s question to be entered in a drawing for this month’s prize, the Hershey Holiday Pines Deluxe Tower!
Question: What do you think of our newsletter? If you have any ideas on how we could make it better for you, please let us know!
We recently received a message from a state Special Olympics organization about a call one of our agents had made. It read, "A lady…called and wanted to make sure I knew about an employee who called her yesterday afternoon named Anthony Thompson. She said he was so kind and understanding to her when she told him she could not give. And that he stayed and talked with her when she told him she had a handicapped child. She said he was so kind." Thanks for passing that along, and we’ll have Anthony and the rest of the team keep up the good work!
A few years ago, the director of the Little Rock Zoo received thousands of letters and phone calls from people in the community who were upset that the zoo’s elephant was being mistreated by not having a mate. The director invited one of the callers to inspect the animal’s treatment personally and met with her individually. Despite being critical, she gave a sizeable check to the zoo before leaving that day, and sent several more before her death this year. Her estate left $750,000 to the zoo, showing the importance of dealing positively with donors over time—even those who start off on shaky ground. Planned giving requires cultivation from the start with donors, and this example shows how powerful those relationships can be
The Salvation Army has been blessed with numerous major corporate sponsors this year. Some of the largest include the world’s largest retailer (Wal-Mart), as well as Target, Kroger, and Denny’s. The 2005 Kettle Drive produced over $100 million for the Army’s programs. Both Wal-Mart and Target kicked off their drives with donations of $1 million. With a great cause and great support, amazing things can happen, and will again this Christmas Season.
Changes in the regulations on Investment Retirement Account (IRA) withdrawals are expected to prompt up to $400 million in charitable donations over the next two years. Individuals may now give up to $100,000 a year to charity through a direct payment from their IRA, if the donor is at least 70.5 years old. The negative side of some contribution rules is that noncash gifts are now going to require stricter scrutiny in terms of their value in deductibility terms. Also, individuals who claim deductions for even small cash gifts must retain canceled checks or receipts to prove their gifts.
Many nonprofits depend on direct federal funding for their operations, and others receive generous gifts from the federal employees’ Combined Federal Fund (CFC). However, in 2005, the General Accounting Office (GAO) found that federal grants exceeding $1.5 billion went to nonprofits that owe federal taxes due to accounting and funding issues—especially payroll taxes. Further, the GAO found that CFC funds went to nearly 1300 nonprofits that owed taxes. Based on these findings, the GAO conducted detailed audits of 15 of these organizations, and found that all of them were abusive, and “possibly criminal” in their tax infractions. Such reports are unfortunate for the breach of public trust in nonprofits that they create. The bigger issue is the increased government oversight of nonprofits that is likely to come as a result of such issues, making it that much more important to ensure that even the best agencies are "doing it right" in all areas.
Last month, MADD Arkansas honored thirteen State Police Troopers with Blue Knight Awards for their efforts in stopping drunk driving in the state. These officers were recognized by Miss America 2006, Jennifer Berry, for their efforts. Many thanks go out to Miss Berry for raising public awareness of the dangers of drunk driving—and to these brave men for making our roads safer.
Speeches by New York Mayor Michael Bloomberg, CNN magnate Ted Turner, and former President Bill Clinton highlighted the Slate 60 Conference on Philanthropy in Little Rock last month. Those in attendance included over 70 of the largest nonprofit donors in the nation as compiled by Slate magazine and the Chronicle of Philanthropy. Mayor Bloomberg encouraged the participants to look for opportunities to serve those in need now, instead of just building everlasting foundations. Clinton discussed the rising role of non-governmental organizations (NGO’s) in helping those in need in the US and around the world, and remarked that while shaving one morning, he looked at himself in the mirror and said, "My God! I’m an NGO!" The Slate 60 list of the top nonprofit supporters will be released in February.
This Christmas, Heritage team members will donate over 1000 hours to handing out Salvation Army Angel Tree angels to the public. These angels are tools to get people to donate gifts to needy children this Christmas.
We do this as a way to recognize that we have a part to play in making the world a better place beyond what we do for our charity partners. This effort is just one of the many ways that our team "Inspires Hopes, Dreams, and Opportunities" for those in need around the nation—and in our own community as well.
The IRS received over 90,000 applications for nonprofit status in 2005, and there is currently a backlog of over 7000 applications that have yet to be assigned to a specialist. The lack of nonprofit status has hurt the fundraising ability of many of these organizations while their applications are pending. Of larger concern for the industry is the growing number of nonprofits competing for scarce dollars—further bloating a sector with over a million players already. The lesson for charities is clear: the need to have effective messages and efficient fundraising campaigns is more important than ever in this increasingly competitive environment.
This phrase—do more but spend less—has become the credo for one of America’s largest nonprofits, the US Olympic Committee. In response to a 2003 Senate committee hearing in which the USOC was criticized for its management and ethical practices, the USOC has leaned-out its permanent staff by a third, and reduced board membership by 90 percent.
In the tradition established by her famously giving every member of her audience a new car, Oprah Winfrey recently made headlines by giving her audience $1000 debit cards.
The catch: they had to give the money away to worthy causes, whether individuals or charities (family members excluded). Calling the show her "favorite giveaway ever," Winfrey noted, "I can honestly say that every gift I’ve ever given has brought at least as much happiness to me as it has to the person I’ve given it to…That’s the feeling I want to pass on". That spirit of giving is to be applauded. A future show will feature videos of how the audience used the money.
When your donors have a question about your organization, who do they call? Thousands of times each week, they call our Donor Services Team. These calls cover a variety of topics—some want to know how they can volunteer with the organization, while others want to know more information before sending in their gift. Our Donor Services Team is led by a long-time team member with decades of experience in the Inbound Teleservices field. The Donor Services Representatives (DSR’s) she leads have the best equipment in the industry, and are prepared to answer whatever questions come their way. By answering donors’ questions quickly, correctly, and politely, this team is an under-recognized but crucial part of our fundraising operation.