From the President's Office
Dear Friend:
Nonprofits are in the news again. A series of front-page stories in the Washington Post has highlighted a long list of compensation and expense abuses at the Smithsonian Institution, an important—and prominent—national cultural institution. And once again, the actions of one nonprofit organization have introduced one more element of mistrust and suspicion among the public and the media, affecting us all.
An independent review committee linked the problems at the Smithsonian directly to governance. The committee's June 18 report stated, "The root cause of the Smithsonian's current problems can be found in failures of governance and management. The governance structure of the Institution is antiquated and in need of reform."
A newly released study from the Urban Institute confirms that governance is a problem at nonprofits throughout the country: ... Read more
Beware Publicity When Raising Big Gifts
When should you—and should you not—use publicity as a fundraising tool?
Don't expect publicity to raise money. It doesn't, at least most of the time.
The reasons are simple. To raise substantial money you must ask people in person, regardless of any well-placed stories. Second, most campaigns depend on a relatively small number of major donors—about 10 percent of the prospects—whose decision to give won't be much influenced by the media. ... Read more
Introduction to Competency-Based Hiring
Learn more about core competencies and how to incorporate them into your hiring practices.
Over the past few years, there has been a lot of talk about utilizing core competencies in the hiring process. You may be wondering what exactly core competencies are and how they can help your organization make better hires.
The term core competency was originally introduced in 1990 by the Harvard Business Review to describe the management concept of corporations possessing specialized expertise in a specific area. Corporations quickly adopted the concept of core competencies to communicate what they did "best" and to leverage the competitive advantages of their brands. ... Read more
Anatomy of an External Brand Audit
How to find out what your audiences really think of your brand.
Question: What is an external brand audit?
Answer: There's an old saying in the communications business that states: It's not how a message is delivered but rather how it is received that makes all the difference. Put another way, it doesn't matter what you may want to say about your organization through brand messaging. If those messages don't resonate with the audiences you are trying to reach, they're mostly a waste of time, energy, and valuable resources. An external brand audit, therefore, is an effort to determine what impact your organization's messages are having on clients, funders, partners, and policy makers. ... Read more
IRS Updates, July 2007
Tell the IRS what you think of the revised Form 990, and find out about a proposal for a voluntary compliance program for exempt organizations.
Revised Form 990: The IRS seeks feedback on the draft of the revised Form 990, which was released for public comment last month. In August, GuideStar will publish a special Newsletter issue focusing entirely on the proposed 990 revision. In the meantime, you can find more information on the IRS Web site.
Voluntary Compliance Program for Exempt Organizations: On June 13, 2007, the Advisory Committee on Tax Exempt and Government Entities recommended that the Exempt Organizations Unit of the IRS establish a voluntary compliance program for tax-exempt nonprofits. Such a program would allow nonprofits that find they are not in compliance with tax laws to take the initiative to rectify the situation. ... Read more
Do Your Homework, Do Your Duty: 10 Ways to Protect
Your Organization When Engaging Outside Services
Forewarned is forearmed, in business transactions as well as elsewhere.
Whether you're hiring a consultant to advise your organization on a major restructuring effort, looking for an IT solution from an outside source, or even just considering accepting a service for free, it pays in the long run to do your due diligence, i.e., to research the service provider. It's not a matter of doubting your potential business partner but of protecting yourself in the event of any unforeseen difficulties or misunderstandings. Especially with the fluctuations in legislation regarding nonprofit funding and finances, it's essential to cover all your bases to make sure a transaction will go smoothly for all involved.
Here are some tips to consider when dealing with a contracting party. ... Read more
GuideStar on the Road
GuideStar staff members will be at the following events this month.
Click here to learn more.
- July 8-10: 2007 Bridge to Integrated Marketing and Fundraising Conference, Washington, D.C.
- July 11: Bethpage Federal Credit Union Leadership Seminar, Bethpage, N.Y.
- July 17: 3rd Annual DonorEdge Community Leadership Conference, Kansas City, Mo.
- July 19-20: Alliance for Nonprofit Management Conference, Atlanta, Ga.
- July 26-27: Corporate Community Involvement Conference, Chicago, Ill.
In This Issue
Beware Publicity When Raising Big Gifts
Introduction to Competency-Based Hiring
Anatomy of an External Brand Audit
Do Your Homework, Do Your Duty
