Links to the articles I’ve reviewed and posted to Twitter between March 7 – 13, 2011.  This week’s topics include:  Donating to Japan  •  U.S. Regulations  •  Israel & Jewish Sector  •  Strategy & Governance  •  Budgeting  •  Fundraising  •  Marketing  •  Social Media  •  Personal Finance  

This week’s a doozy because it includes last week’s, as well.  (I didn’t post last week because of the Jewish holiday of Purim.)  I’ve added a few more categories to make finding articles of interest a bit easier.

You can stay up-to-date with these articles and more by following me on Twitter or subscribing to receive The Nonprofit Banker by email.

Tizku Lemitzvot,

Shuey

DONATING TO JAPAN

GuideStarUSA offers 6 good tips for people thinking of international relief efforts http://ow.ly/4h0lG

Wow, 256 comments so far! Do u agree? >> Pndblog & FelixReuters: Don’t donate money to Japan http://ow.ly/1sfrpc >> While the main point of this piece is noteworthy, I cannot agree with its recommendation of Doctors without Borders, a group which is virulently anti-Israel.

U.S. REGULATIONS

DonKramer: Can a pastor discuss politics at the pulpit or host political events? http://ow.ly/1saE6S

DonKramer: Can a nonprofit own a for-profit subsidiary taxed as a C Corp? http://ow.ly/1saJww

On Philanthropy: The important difference between hiding your donation from the public & from the IRS http://ow.ly/1sbsOL feat. interview with GTak

DonKramer: Does the IRS restrict nonprofit orgs to use donations only as donor intends? http://ow.ly/1sfr4s #Fundraising

ISRAELI & JEWISH SECTOR

Wow, this certainly inspired some response >> Marketing Israel Nonprofit Orgs to the Diaspora http://ow.ly/1sb6Ab on eJPhil // read the first 2 comments

Why management & fundraising for synagogues should resemble regular nonprofit orgs (on eJPhil) http://ow.ly/1sdpYt

STRATEGY & GOVERNANCE

Study: Funders should share expertise & knowledge about their fields for bigger impact http://ow.ly/1sac8g via eJPhil

When & how should a nonprofit org set up a subsidiary for-profit company? (by Charitylawyer) http://ow.ly/1saFag

State of Nonprofit Sector 2011 results are in. Nedgington provides great summary: http://ow.ly/4nkIr via GTak

“We analyze failure often, but successes rarely”: Dan Heath at the Nonprofit Technology Conference (on Philanthropy) http://ow.ly/4nlxq via GTak

How nonprofit orgs can manage free-agents & vice versa http://ow.ly/1sb7YK Notes by Askdebra

BUDGETING

NAFund: Nonprofits need to be realistic about “wear & tear” on building, tech & other assets 

Never take foundation support for granted (& how to react when the support disappears) http://ow.ly/1saiLf via eJPhil

FUNDRAISING

Gaylegifford: 7 ways that fundraising can strengthen your nonprofit programs // it’s the journey that’s important

Seemabhende: Top 12 Online Fundraising Platforms for Donors & Nonprofit Orgs from Mashable http://ow.ly/1sb85B

NonProfitBanker: New post: “Fundraising as a Journey” http://ow.ly/1sbqAz

How to manage a volunteer led initiative to encourage more Board fundraising http://ow.ly/1sb7rm

Helpful, concrete tips >> Askdebra: Awesome: “How much money should your NPO be fundraising online?” by Jocelynharmon http://ow.ly/1sfr0q

Nonprofit Orgs That Invested in Fundraising Resources Were More Likely to See Increases in 2010 http://ow.ly/1sdTQh

Worth reading: Bill Gates on philanthropy, metrics, CSR http://ow.ly/4gonB via AuctionExpert & LJacobwith

MARKETING

3 mistakes nonprofit marketers should avoid http://ow.ly/4eO4W via Marcapitman, AuctionExpert & LJacobwith

SOCIAL MEDIA

Npquarterly Your social media and you. Tweet freely http://bit.ly/hOQh0f via GTak

5 things that really don’t work in email, by KatyaN4G http://ow.ly/1sag2G

Wild Apricot offers a convincing argument why your nonprofit organization should consider LinkedIn http://ow.ly/1sdsT8

No need to reinvent the wheel! >> Askdebra: 30 Facebook Pgs for inspiration & info, by Karvetski “BorrowNobly”

Recommended: Askdebra reflects on her NTC presentation “Integrating Social Media Into Your Website” http://ow.ly/1seasf

PERSONAL FINANCE

The 4 components of a personal financial plan (by Jon Degani, Shomer Shekalim) http://ow.ly/1sageh

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