The sole purpose of my previous piece, Defining a Conduit Organization, was to address the more important question of this post, “How to Choose the Right Conduit?”

After all, for many organizations operating outside the United States, specifically those in Israel, fundraising in America plays a vital role in the business strategy of the nonprofit.  Some charities choose to establish an organization known as an “American Friends of” charity to offer American donors a tax-deductible option. Others, however, will decide to use Conduit Organizations to process the donations on their behalf — also a valid option.  But I digress. (If you, on the other hand, would like to digress, see 4 Reasons Why NOT to Establish an “American Friends of” Organization.)

Those Israeli nonprofits that choose the second option of a Conduit (also referred to as an Intermediary or Fiscal Agent) are in luck, as recent years have seen an quasi-explosion in the number of American charities that offer Conduit services.  This being the case, foreign organizations have the luxury and liberty — and some might argue the responsibility and obligation — to investigate the various Intermediaries so as to choose the best fit for the nonprofit. And, yes, all Conduits are by no means the same.

My six criteria for judging a potential Fiscal Agent: Cost, Currency, Time, Payment Method, Communication and Association.

1. COST

What will the Conduit charge me for the service?

The logic being that the less a charity pays in fees, the more money actually makes it the organization’s bank account to fund programmatic and administrative expenses.

Fees generally come in three flavors:

(a) Flat

The advantage of Flat fees is that you know them upfront. While the other options are calculable, this method is the most straight forward.

There are actually two structures for this option:  (1) Flat rate regardless of the amount sent and (2) Flat rate per range of money sent.  For example, $25 up to $2,000, $50 up to $10,000 and $100 up to $50,000 etc.

Example: The Jewish Funders Network, as of March 2010, offers Intermediary Services to nonprofits based in Israel. According to a seminar I attended in March of 2010, it is a flat fee of $200 for transfers up to $100,000. (As this information was obtained when the product was first launched back in March, it may not be up-to-date.)

(b) Percentage

A percentage of the amount transferred, sometimes with a minimum fee.  The advantage of this option is that you “only” pay per what you send.  This seems to be the most popular option.

Example: The Jerusalem Foundation, The New Israel Fund, The One Israel Fund and others use this method.

(c) Free

Use the service will cost the beneficiary nothing. However, to offset costs our reduce expenses, the Intermediary might impose some restrictions on the funds, turnover or method of payment

Example: The P.E.F. offers this service free of charge but will generally only forward the money to the recipient after a month (although some have told me it could be up to three) and in the form of a dollar check. I have heard some organizations get it shorter, but truly the exception.

2. CURRENCY

In what currency will the donation arrive in my account outside the United States? Will the donation be received in the original currency (dollars) or in local currency (in this case, shekels)?  Do I get to choose?

Currency is an important factor for three reasons:

(a) Conversion Rates

Conversion rates can have a big affect on donations received from abroad; namely, the better the rate the more local currency is created when converting the money. As demonstrated above, even a small change in the rate can have a substantial effect. By receiving the money in the original currency, the beneficiary can retain control over when and how much to convert.

(b) Accountability

Certain donors like to know exactly how much buying power their donation has and might demand to know the conversion rates that their money is getting. It is quite possible that an organization might be unable to obtain this information and relevant information from its partnering Conduit.

(c) Cost

Generally speaking, it is more expensive to work with foreign currency than local currency. Thus, receiving money it is original money with come with a higher handling fee for the handling bank or financial institution.  Although, these higher fees might be mitigated by other concerns (like items one or two).

3. TIME

How long will it take me to receive the donation in my account outside the United States?

As the axiom goes, time is money.  Knowing the turn-around time is important for two reasons:

(a) Currency Exposure

One of the biggest unknowns and worries for a nonprofit that relies on donations received in foreign currency is currency fluctuation. The longer a transaction through a Conduits takes, the greater risk to a change in conversion rate.

I have seen firsthand organizations that relied on Intermediaries that didn’t forward monies in a timely manner. By the time the money was received, rates had changed for the worse (though they could just as easily change for the better).

Example: Back in September of 2010 the shekel vs. dollar rate was 3.81. The following Monday morning, only four days later, the rate stood at about 3.77 – a four agurot (4/100 of a shekel) difference. For a donation of $50,000, this four-day delay would have cost the recipient 2,000 shekel (over $500), an over 1% cost (2,000/190,500).

(b) Cashflow

Checks, pledges, and grants come with dates attached.  Budgets are then built around these deadlines.  Donations that are delayed because of a Conduit can severely hamper a nonprofit’s ability to pay its bills or run its programs, possibly leading to ruined reputations, frayed nerves, debt, and/or unexpected credit charges (to name but a few) .

Allow me to tangent for a moment: Conduits that fail to forward monies in a timely fashion are doing a disservice to the end-recipient.  As a matter of fact, receiving the money on time can be even more important that being approved for the donation/grant in the first place. Without a grant or donation a program might never have taken place. No harm, no foul. With the promise of financial support, however, commitments have now been made and money spent.

4. PAYMENT METHOD

Will the money be given to me as a wire transfer or as a check?

This question is more of a concern for those organizations that will be receiving their money in its original currency (dollars).  In Israel, for example, shekel grants and donations can be easily be forwarded by wire, though, even shekel checks clear within a few days.

Foreign currency — whether in Israel or in other countries — is more costly to process and takes longer to clear.   Two points that refer to the earlier questions of Cost and Time.

5. COMMUNICATION

How will I or my donors contact the Conduit if we need to? Or vise versa?

For two reasons, never underestimate the power of communication:

(a) Donors

Donors will have to mail/wire the money to these Conduits. It is imperative when trusting a third party to deal with your donors that it is an organization you can rely on. There will be times when the Intermediary will need to contact your donor — will this be a pleasant interaction that will ensure continued support by your donor and a swift transaction?

Organizations have told me stories of their donors that were driven away or even rescinded their check due to unpleasant experiences with a Conduit.

Furthermore, referring back to an earlier point, will the Intermediary release specific information about your donor’s check/wire, such as wiring dates and conversion rates? This is important information to donors that are looking for transparency and accountability.

(b) Turn-around

Better channels of communication and trust between recipient and Intermediary can help ensure that monies are transferred as efficiently and as quickly as possible.

6. ASSOCIATION

How will my association with this Fiscal Agent affect how people view my organization?

No nonprofit exists in a vacuum. This question can have two types of affects (not mutually exclusive):

(a) Character

Does the organization that is accepting donations on my behalf have religious or political leanings that might color the organization in the eyes of the public (for good or for bad)?  Is the Intermediary known for anything unsavory? What headlines has the Conduit made?  Do people think very highly of the organization and its leadership?

These questions and others like them can alter the flavor of even the most pareve, middle-of-the-road nonprofits.

(b) Fundraising

Will the good name, reputation, or connections of a Conduit help the organization raise more money?

…AND DON’T FORGET TO BE HELPFUL

These Conduits are taking a risk vis-a-vis the I.R.S. by providing this conduit service, regardless if the Intermediary is being paid or not.  Participating charities should, therefore, appreciate a Conduit’s position and provide the necessary paperwork requested of them.

And, of course, being helpful could lead to some of those much-desired exceptions that I mentioned above.

Tizku Lemitzvot,

Shuey

Disclaimer: This blog houses my personal opinions and is for informational purposes only — not advice. As charity laws can be quite complex, please refer all questions to qualified and licensed professionals. Read the full disclaimer.

The fiscal responsibilities of an American charity have become more complicated in recent years. Increased scrutiny from the IRS, more intricate tax documentation, the recent economic crisis, and donors’ need for transparency, are just a few of the challenges facing the sector. When a charity operates internationally these difficulties are only exacerbated. These global organizations are expected to be familiar with regional and global charity regulations, comfortable working in foreign languages and cultures, able to cope with inherent increased expenses, and capable of forging new relationships – all while maintaining a high level of accountability.

A powerful tool in helping a “Friends of” organization cope is an additional account abroad in the country in which it operates. When used to its potential, this kind of account is invaluable.

(For this purposes of this article, I’ll be using Israel as my example, as American fiscal support for Israel is wide-spread and well documented.)

The Benefits of Maintaining an Account in Israel

1. Deposit Checks in Israel

Checks designated for the U.S. charity that are received in Israel can be deposited locally. Because the account in Israel is owned by the American charitable organization any check deposited in the account can receive an IRS tax-deductible receipt. Donors can write the check while the feeling is hot, as opposed to waiting until they return back home to the United States. The organization can save: (1) money by not using postal or delivery companies; (2) time as checks can be deposited immediately in the Israel account, and; (3) hassle as there is no need to hold on to checks to mail them in bulk, photocopy and catalog mailed checks, worry about lost mail, etc.

2. Wire Monies to Israel when Convenient for the U.S. Charity

Similarly, because the account is owned by the American entity, money sitting in the account in Israel still shows in the American organization’s books. This allows the nonprofit to transfer funds according to their own schedule and not just when Israel charities need support. With this flexibility, the U.S. nonprofit can cut costs by transferring funds in bulk and increase feelings of control, while at the same time reducing the hassles of constantly operating on someone else’s timetable.

3. Transfer Funds Immediately to Israeli Nonprofits

As money can, theoretically, already be in the U.S. charity’s account in Israel, when support is approved, money (converted and) transferred the same day. No longer are groups on both sides of the ocean dependent on anonymous, ambiguous banks to make sure that money is transferred in a timely manner.

4. U.S. Nonprofit’s Israel Account can Act as Collateral

Should an Israeli organization connected to or supported by the U.S. charity need credit – whether in the form or a loan or line of credit – the American account can act as collateral. This allows money that the “Friends of” organization prefers stay under its ownership do so while still providing the necessary credit to a worthy Israeli nonprofit. (ex: This can prevent the undesirable situation when an American organization would have to “loan” funds.)

5. Pay Expenses Directly from Israel

Any type of expense can be paid locally – whether flights, hotels, or travel expenses – from the “Friends of” account in Israel. This allows for payment in local currency (i.e. shekel), as opposed to dollar, which can be cheaper both in terms of actual cost and associated fees. Additionally, an account abroad provides a variety of payment options to the American charity; such as check, wire transfer or credit card. Furthermore, the American entity can opt to pay for certain expenses directly instead of the Israeli recipients to minimize Israeli tax or charity regulatory complications that might occasionally surface.

6. Greater Oversight in the Eyes of the IRS

While the United States Government acknowledges the need for international charity, it is concerned that US based nonprofits might not exercise adequate control over its funds or be subservient to foreign organizations. Maintaining an account overseas where the American entity operates – providing that the Foundation and the Keren avoid overlaps in its board membership and authorized account signatories, among other things – is a hands-on management approach that demonstrates to the IRS a high level of budgetary control and transparency.

Closing Words…

Please note that, as said before, an account managed in Israel by the American tax-exempt organization is still considered under the ownership of the “Friends of” charity and should be treated as such. Additionally, many of the tips raised in this article are not simply about banking and require the consultation of a charity’s Board of Director and its accountant/lawyer.

Tizku Lemitzvot,

Shuey

Disclaimer: This blog houses my personal opinions and is for informational purposes only — not advice. As charity laws can be quite complex, please refer all questions to qualified and licensed professional. Read the full disclaimer.

A collection of links to the great articles covering the nonprofit sector that I have reviewed and posted to Twitter between December 1 – December 12.  This week’s topics include: U.S. Tax & Law •  Israeli & Jewish Nonprofits  •  Strategy & Governance  •  Marketing & Fundraising  •  Potpourri.

You can stay up-to-date with these links and more like them by following me on Twitter or subscribing to the blog.

Tizku Lemitzvot,

Shuey

U.S. Tax & Law

• CharityNav: Liberal Deficit-Cutting Plan Proposes New Charitable Tax Credit 
• Status update on potentially game changing L3C (U.S. registered low-profit co.) on CharityLawyer http://ow.ly/1rMmeZ
• Debating turning a struggling NGO into a for-profit? DonKramer talks legality & raises good points http://ow.ly/1rMk2X
• DonKramer: Is tuition payment to a nonprofit school tax deductible? http://ow.ly/1rSGQ3 >> very applicable for parents whose kids are studying in Israel post high school
• Tough questions >> GTak: Highly unlikely now, but later…? PndBlog: Eliminating the Charitable Deduction http://ow.ly/1rP58X

Jewish & Israeli Nonprofits

• NonProfitBanker: New post: “The Carmel Fire & Haiti: No Need to Reinvent the Wheel” http://ow.ly/3lzmP
• NPQuarterly: Holiday shopping at the Mitzvah Mall in Anchorage. Merry Chanukah! http://ow.ly/1rThG3

Strategy & Governance

• CharityLawyer touts virtues of testing waters through fiscal sponsor b4 starting a new NGO http://ow.ly/1rM1dw
• ABACtrProBono: Top 10 Legal Risks 2 NGO Boards (BoardSource Forum summary by NonprofitLawyer) http://ow.ly/1rMl8G
• NPQuarterly: Watchdog CharityNav adjusts nonprofit ratings system for recession http://ow.ly/3nUHX
• Starting a nonprofit? Nice overview of relevant questions, challenges & strategyhttp://ow.ly/1rPl90 via GTak
• NAFund attacks recent Nonprofits & Social Enterprise study. A must for those following recent articles http://ow.ly/1rQ5pn
• Avoid “mission creep”: Dont chase the money; passionately pursue your missionhttp://ow.ly/1rSFlZ via CharityLawyer
• FundraisingNews: A Checklist to Gauge the Strength of a Nonprofit Organizations http://ow.ly/1rSM8m

Fundraising & Marketing

• Nonprofit_Mo: Great advantages to small nonprofits! KiviLM: 3 Fundraising Lessons from 365-Day Experiment http://ow.ly/1rUciP
• AFPIHQ creates site FULL of tools and media to help donors with their giving http://ow.ly/1rXJzR via Dan_Blakemore & KirstenBuloock
• Nice! Create personal campaigns w/FirstGiving’s “Bring Back the Giving” http://ow.ly/1rXJsR via AskDebra & CoreWebInc
• YeahService: 3 common PREVENTABLE grant proposal mistakes http://ow.ly/1vnFU >> Short & to the point!
• BTalisman summarizes the GuideStarUSA Fall ’10 Nonprofit Fundraising Survey http://ow.ly/3j3M1
• Nonprofits angry over Apple’s recent ban on donations through iPhone apps. Kanter starts a petition http://ow.ly/1rUhX6 via eJPhil
• Unraveling the mystery of the biological drive that motivates the body to give http://ow.ly/1rPkoW via CharityNav

Potpourri

• It hurts me to say, but life IS possible w/out big banks http://ow.ly/1rNsWs via Umairh & HildyGottlieb >> trust & ingenuity go a long way

Jews around the globe are mobilizing to donate to help fight the effects of the recent fire in Israel’s Carmel Forest.

One of the outcomes of the Haiti Earthquake (January 12, 2010) is an in-depth case study in disaster-relief giving. Hence, those donating to Carmel Fire relief efforts need not reinvent the wheel and can rely on the many lessons learned just 11 months ago.

Money is not the Impediment

In response to the Haiti disaster in January 2010, The Stanford Social Innovation Review (SSIR) wrote in an article entitled, “Don’t Give to Haiti Now”:

Money is not the impediment to getting aid to Haiti right now…they need military and security forces to help organize rescue, logistics and transport and security operations.

While on a much smaller scale, the same logic holds true for Israel.

The recovery and rebuilding efforts do not exist in a vacuum; without certain guarantees and logistics in place, money alone will not be effective. (Just look at the Interior Ministry’s refusal to accept fire trucks from certain charities. The money was there but the trucks were never bought.)

Plan for the Long Term

With nearly half of the Carmel Forest destroyed (about 37,000 acres) and rehabilitation efforts expected to take years — if not decades — donations will be needed for far longer than just the upcoming months.

SSIR went on to write that

The rebuilding effort survives over the long term, donors need to stagger their funding and guarantee it over many years, instead of sending the money all at once…For Haiti, my advice is this: set aside money now for what you would give Haiti this year and for at least the next 3 years. Give money when aid can logistically get there, when efforts get coordinated, when you can get reports on which nonprofits are doing what and which ones are actually on the ground making an impact.

Research Before Giving

1. Prior Experience

Prior experience working in a particular geographic area or a particular field is crucial in making sure that donors get the biggest bang for their buck (or shekel) — whether on the island of Haiti or in the State of Israel.

After the Haiti Quake, for example, The Miami Herald provided a link to a database that listed the charities assisting after the disaster and if these organizations had prior experience working in Haiti.

2. Needs Most Dire

Additionally, with a country as small as Israel, popular news outlets can provide the necessary research into what needs are the most dire — and there will be many. For, example, The New York Daily News article, “How to Make Donations to Haiti Wisely” stressed that large disasters will required both “disaster relief and extensive assistance to rebuild.”

3. Donor Advisers

It is important to mention that the Haiti disaster also saw consultants play an important role; likewise, donors to the Carmel Fire relief shouldn’t shy away from advisers to help them “structure effective support.” (Investment News)

Give Cash, Not In-kind Donations

If a donor has taken the time to vet a charity, he or she should trust the organization to use the donations as it deems wise.

Furthermore, in-kind donations — food, diapers, clothing etc — cannot always be used or might have already been purchased. Donors outside of Israel should also realize that Israeli charities are charged import tariffs even on donated goods. Not to mentioned the trouble sometimes with getting goods through customs. (Read this JPost article for more information on Israeli nonprofits and import tax.)

Additional problems connected with in-kind donations were elaborated upon by these international aid bloggers after the Haiti Earthquake: Good Intentions & Aid Watch.

Closing Words…

The Haiti Disaster, observed Tactical Philanthropy, marked a “turning point in American philanthropy where donors are now expected to ‘give smart,’ not just give.”

It is my hope that this still holds true — not just for Americans, but for donors worldwide.

Tizku Lemitzvot,

Shuey

Related Posts: NonprofitBanker Video Blog: Haiti & Relevant Donor Strategy

N.B. The articles in The Miami Herald, The Daily News, Good Intentions, and Aid Watch are credited to the Tactical Philanthropy post, where I first read of them and found their links.

A collection of links to the great articles on the nonprofit sector that I’ve read and posted to Twitter between November 15 – November 21, 2010. This weeks topics include:  U.S. Nonprofits  •  Israeli & Jewish Nonprofits  •  Strategy & Governance  •  Marketing & Fundraising  •  Social Media & Internet.

Tizku Lemitzvot,

Shuey (@nonprofitbanker)

U.S. Nonprofits

• NonProfitLawyer: Deficit Commission Targets Charitable Deduction (on Philanthropy) http://ow.ly/1ry2l7 // Good comments too
• DonKramer: Is there a limit on % fee that telemarketers charge #nonprofit orgs on $$ raised? http://ow.ly/1ry2qk
• Alltop_Nonprof: Obama Signs Order On Faith-Based Federal Funding 2 clarify Church-State issues http://ow.ly/1rAnAo
• NonProfitBanker: Is your NPO susceptible 2 losing its Public Charity Status? Public Support Test, by CharityLawyer http://ow.ly/1ryLwb

Israeli & Jewish Nonprofits

• NonProfitBanker: Mazal tov! 1 yr after changes to Israel law allow NPOs to merge, finally first 2 tie the knothttp://ow.ly/1rxIf0 (HEB)
• NonProfitBanker: Israel Finance Min. lifts veil of secrecy on State support to nonprofit organizations http://ow.ly/1rAmyh HT Religion_State

Strategy & Governance

• LJacobwith: Charity Navigator 2.0: A new world of nonprofit ratings is coming http://ow.ly/1ry24T via SVPMinnesota & TactPhil
• NonProfitLawyer: Measuring charities risks shattering illusions public has of NGOs http://ow.ly/1rzx32 // Eyeopening!
• JJPritchard: Are Nonprofit Annual Reports (in print) still relevant/effective? http://ow.ly/1rzvfp
• NonProfitBanker: New post on NPB: “Guest Post: Lessons from Starting, then Closing, My Nonprofit within 4 Months” http://ow.ly/3bK4J
• GTak: Celebrities hire philanthropy consultants to guide their giving http://ow.ly/1rzu8a // if only some reg donors could be as open

Marketing & Fundraising

• NonProfitBanker: New VIDEO post: “Why Local Organizations Should #Fundraise Locally First”http://ow.ly/1rxHvR
• NonProfitBanker: Disclosure rules for cause-related marketing via NYTimes http://nyti.ms/auLqgm
• NonProfitBanker: Jewish philanthropists examine religious & business reasons for giving http://ow.ly/3b6yB via eJPhil

Social Media & Internet

• NonProfitBanker: Encourage direct action with a website suited for mobile phones http://ow.ly/1ryVTE via FundraisingNews
• JohnHaydon & NPTech_Ash: A quick but helpful look @ Social Media Policy vs Guidelines (incl ex of 75 companies’ policy) http://ow.ly/3aECy

Chana Mason was born in Colombia and grew up in South Florida. She has a degree in Theatrical Directing and Engineering from Dartmouth College. She has worked in management consulting, high school education, and high-tech. Since moving to Israel in 2003, she has been involved in a number of Israeli non-profits.

Recently, within a matter of months, I opened and then proceeded to close a amutah [Hebrew referring to a registered charity in Israel] here in Israel.  I wanted to open up a seminary [school focusing on religious studies] and, with the advisement of experts in the field, decided it would be best for the seminary to run under its own administrative body.  Unfortunately, we did not come to this understanding until late into the process of developing the seminary, which meant that we were rushed to register the amutah, file in the tax authorities, and open a bank account.  I learned many things in this process that perhaps can help others looking to start their own non-profit organizations.

1.  Work Through a Fiscal Sponsor

Though it can be an administrative hassle, I recommend working under the auspices of another charity until you have your organization strongly in order.  Opening up an amutah and all it comes with can cost up to 2000 shekels (around $550) and takes a lot of your energies away from creating a strong organization and getting to know how the various government bureaucracies work.

2.  Foundations for Success: A Good Lawyer & Accountant

Having a great accountant and lawyer make a huge difference.  They can explain the process along the way.  A smart accountant will prepare you ahead of time for tax issues you could have never imagined in your wildest dreams.  My accountant wanted to read every contract I signed and wanted to know about every person I had an interaction with in regards to the amutah.  He is incredibly sharp and honest and let me know what was legal and what was illegal but unnoticeable.  A good lawyer wont charge you for every little thing and will charge an honest fee for his work.  When opening a charity in Israel, a lawyer in mainly just a notary, so getting a notary you know for a small amount of money is a great place to save.

3.  Never Underestimate the Importance of Your Banker

I never thought that in Israel my bank would be my greatest ally and asset, but it truly has been.   In a process where the learning curve is steep, having good advisement and support means a great deal.

While having staff that is pleasure and helpful is a definite plus (maybe even a must), there were other aspects of the bank’s service that were important to my small non-profit: (1) explained the types of accounts available; (2) provided a minimal-hassle process for opening and closing the amutah’s bank account; (3) worked openly with my accountant; (4) negotiated an appropriate fee structure; and (5) agreed to meet at a convenient location (outside the bank) for the charity’s signatories to sign the paperwork.

4. Budgeting: Reduce Costs and Seek Advice

Make sure you have squeezed every shekel you can out of your budget.  Fundraising in this economic climate, especially for a novice like me, can turn out to be a disappointment.  Reducing costs to an absolute minimum can make a huge difference.  This is where getting advice from people in the know and having lots of people analyse and churn through your budget is also useful.  For my non-profit it is clear looking back that my fundraising expectations were too high and my budget was also too high.  We relied quite heavily on one main donor, who in the end could not afford to support the institution and we also budgeted to offer the best to our students.  It would have been better to offer lower salaries, smaller spaces and a smaller scale program at the beginning to create a safer budget.

5. Make the Tough Decisions Earlier Rather Than Later

We also saw that though many people were to be disappointed by our closing the amutah, it was better to close the organization as early as possible.  Otherwise higher debts would have been incurred over the long run.  Looking back, we are incredibly happy with our decision.  Accruing debt is no small matter and is counter to the mitzvah of tzedakah [charity] that we are aiming for when creating a non-profit institution.

Wishing all of us much success in working to improve the lives of people everywhere!

Chana Mason

A collection of links to the great articles on the nonprofit sector that I’ve read and posted to Twitter between November 8 – November 14, 2010. This weeks topics include:  U.S. Tax & Law  •  Israeli Nonprofits  •  Strategy & Governance  •  Marketing & Fundraising  •  Social Media & Internet

Tizku Lemitzvot,

Shuey (@nonprofitbanker)

U.S. Tax & Law

• NonProfitBanker: Important legal tip for the international charity sector, Define: American “Friends of” Organization, by CharityLawyer http://ow.ly/1rx7eX
• NonprofitLawyer: Form 990 is more than numbers; it’s a proactive PR tool – tell a story, add details, put best foot forward
• NonProfitBanker: Wow! IRS to study correlation between governance & tax compliance. Guidelines: http://ow.ly/1ruSsc via NonprofitLawyer

Israel Nonprofits

• NonProfitBanker: Amen! “It’s time for Israeli Gov to stop forcing Nonprofits to pay sales/import taxes”http://ow.ly/1rx8jV via eJPhil

Strategy & Governance

• NonprofitLawyer & KatyaN4G: When nonprofits fail big-time (Stanford Social Innovation Review) http://ow.ly/1rrsSw
• NonProfitBanker: Study questions efficiency of charities engaging in unrelated business activity  via Philanthropy
• NonProfitBanker: A different take on the above posted study questioning efficiency of nonprofits engaging in unrelated biz activity http://ow.ly/1rsKRW via eJPhil
• NonProfitBanker: As predicted, after the initial rush, relief to Haiti has slowed to a trickle http://ow.ly/36ShR via FCWashington
• NonprofitBanker: Do we give Boards enough room to foster growth? Food for thought by NPMaven http://ow.ly/1rtrwe via NancyIannone

Marketing & Fundraising

• NonprofitBanker: Enjoyed watching 7 min video on Branding for Nonprofits from the Columbia Business School http://ow.ly/1rtDGK
• FundraisingNews: Is Your Web Site Ready for Year-End Fundraising? There’s an App for That http://ow.ly/1rxa4P
• NonprofitBanker: Let My People Know – a great case study of social media done right for a nonprofit http://ow.ly/362sa via eJPhil

Social Media & Internet

• JohnHaydon: The Secret Weapon that Makes Your Blog Content Successful (from CopyBlogger) http://ow.ly/1rqZzz
• NonProfitBanker: Looking for ROI from Twitter? Augieray: 30+ Twitter Tools for Research: http://ow.ly/1rtxO5 (Great list!)
• NonProfitBanker: Jewish media outlets try to adjust to new internet reality & avoid Blockbuster’s fate http://ow.ly/1rtO23 via eJPhil
• Franswaa & Deirdrereid: 6 Reasons WordPress is great Website Platform 4 Small NPOs, JohnHaydon http://ow.ly/37P7R
• JohnHaydon: Sparked.com Helps Nonprofits Find Micro-Volunteers Online (on WildApricot) http://ow.ly/19Uulc

Welcome to the first of a new style of video posts, “Money Musings,” which will cover issues and challenges inspired by conversations with nonprofit professionals.

In this episode, I discuss 2 reasons why local nonprofit organizations should fundraise from their constituents first. While the video specifically describes a nonprofit operating in Israel, the principles are true for any charity in any country.

Alternatively, the video can be viewed directly in YouTube: http://www.youtube.com/watch?v=jFpP4wxjnOU

As always, comments are welcomed and appreciated.

Tizku Lemitzvot,

Shuey

Disclaimer: This blog houses my personal opinions and is for informational purposes only – not advice. As charity laws can be quite complex, please refer all questions to qualified and licensed professionals. Read the full disclaimer.

A collection of links to the great articles on the nonprofit sector that I’ve read between October 26 – November 7, 2010. This weeks topics include:  International Philanthropy  •  US Tax & Law  •  Strategy & Governance  •  Marketing & Fundraising  •  Social Media & Internet  •  Jewish/Israel Nonprofit & Finance  •  Skills & Personal Development.

Tizku Lemitzvot,

Shuey

International Philanthropy

• NonProfitBanker: Relying on donations from abroad? New post: “3 Danger that Money-Changers Pose to Charities” http://ow.ly/2ZQzW
• LJacobwith: Comprehensive overview of Philanthropy in China http://ow.ly/2Zjbc // Impresive

US Tax & Law

• HUGE! IRS releases revised “Rules & Procedures” to obtain tax-exempt status http://ow.ly/1rlEnL via Nonprofitlawyer
• NonProfitBanker: IRS highlights what’s new & dif in the revised “Rules & Procedures” to obtain tax-exempt status: http://ow.ly/32rWU
• PACs & 501(c)4 charities are turning nonprofits into the new money laundry http://ow.ly/1rj66y via Npquarterly
• Npquarterly: What’s at stake in yesterday’s US elections? Nothing short of nonprofit oversighthttp://ow.ly/1rnCdW
• PatrickSternal: Gov, church at odds as NY cities want to tax vacant churcheshttp://ow.ly/1roe3y // logic could apply to synagogues too
• DonKramer: Can a US nonprofit solicit donations b4 it receives a recognition of exemption? http://ow.ly/1rodVF
• DebtCreditHelp: 5 Things You Need to Know About US Credit Scores (on WiseBread) http://ow.ly/1rqNEO

Strategy & Governance

• Recession Changing Corporate Philanthropy: Less cash, more goods/volunteering http://ow.ly/2ZSRE via TonyMartignetti
• Part business & part social venture, hybrid model 4 nonprofits is proving problematic http://ow.ly/1rkZcR via eJPhil
• Advice on how board members can avoid losing track of time http://ow.ly/328za via Philanthropy
• Philanthropy: Advice on setting prices for nonprofit services // Interesting analysis
• Transforming Nonprofit Business Models – check out link in 2nd section for 3 pg resource http://ow.ly/ via NAFund
• GailPerrync & Rjleaman: Is Your Nonprofit Losing Members? Maybe It’s Not You http://ow.ly/1roi4Z
• Npquarterly: Recession encourages nonprofits to merge http://ow.ly/1rodp4
• Npquarterly: More reports of nonprofits suspending activities or closing http://ow.ly/1rqLP1 // $$ issues can be avoided for only so long

Marketing & Fundraising

• JoeWaters: “Double Tap” & other lessons for fighting zombies & marketing causes http://ow.ly/1riYt4 // Loved it!
• Philanthropy: Heavy-Handed Fundraising Tactics Alienate Some College Students http://ow.ly/1rkYFJ
• GailPerrync : 4 donor questions every appeal must answer. Excellent quick read from KatyaN4G http://ow.ly/33XZ9

Social Media & Internet

• CitizenEffect & 3BLMedia: 3 ways any nonprofit can get more from social media http://ow.ly/1ri9sz by JohnHaydon // Great principles!
• AugieRay: Want To Change Your Facebook Page Name? You May Soon Be Able To http://bit.ly/93p5Sg
• NonProfitBanker: Without celebrities’ recommendations or a looming disaster, is text-giving worth the effort? (in NYTimes) http://ow.ly/1rmuS1
• AskDebra: 4 easy steps to get your YouTube video found, by Margelit http://ow.ly/33sWr // Great concrete take-aways!

Jewish/Israel Nonprofit & Finance News

• NonProfitBanker: Revealing intrview with Keren Hayesod [United Israel Appeal] Chairwoman about organization’s goals & its relationship with the Jewish Agency http://ow.ly/1rmN0k
• NonProfitBanker: Bank of Israel raises cost of mortgages to battle rising real estate prices http://ow.ly/2ZUwK
• NonProfitBanker: Israeli NPO acquires land to offer affordable housing. Interesting synthesis of public & private http://ow.ly/1rhoqO
• eJPhil: Jewish Donors Focus More on Basic Necessities http://ow.ly/1rl6vN // interesting, let’s see how it can be applied
• NonProfitBanker: The 2010 Forward 50: Jews who made significant impact on Jewish story in a Jewish way http://ow.ly/1rl0I2 via eJPhil

Skills & Personal Development

• ImpactMax: Great advice 4 speakers – What I Learned About Unpresenting from Heathr, by Kanter. http://ow.ly/2VwAE
• WildApricot offers tips & links 2 help small NPOs mange the many hats they wear http://ow.ly/2ZG8b via JohnHaydon
• Kivilm shares Favorite Tools for Keeping Track of Everything http://ow.ly/33sKl via CauseWire
• SavvyGrants: 6 Ways for Young NPO Employees to Become Next Gen Leaders, by @joannefritz http://ow.ly/2WI9a // Nice!
• KatyaN4G: Good advice for those who do too much – Pay Yourself 1st http://ow.ly/1rnGq8 // It’s not just about money!