From the President's Office
Dear Friend:
Issues around the management of endowments are an area of growing interest in the nonprofit sector.
For some time now, we've been seeing articles on the eye-popping size of some university endowments. Topping the list is Harvard, whose endowment as of June 30, 2007 (the latest figure available at this writing), was more than $34 billion, larger than the budgets of many countries. Other universities, such as Yale and Stanford, are not far behind, and 76 universities have endowments over $1 billion.
Concurrently, we've been reading about the amazing financial management performance of these endowments. According to the Chronicle of Philanthropy, university endowments had a median growth of nearly 22 percent last year, with Yale leading the pack at 28 percent. I wish my TIAA-CREF account had done the same!
With college costs continuing to rise well above inflation and with the college loan system mired in the credit squeeze affecting many parts of our economy, it's not surprising that the size of these endowments is attracting legislative attention as well. ... Read more
IRS Updates, September 2008: Revised
Instructions for the New Form 990 and More
No signs of the dog days of summer at the IRS last month.
The IRS has released revised instructions, background documents, and a summary of filing requirements for the new Form 990; guidance on political activities by 501(c)(3) organizations; information for sponsors of donor-advised funds seeking exemption under section 501(c)(3); and an update of the Tax Guide for Churches and Religious Organizations. The service is also requesting comments on the new Exempt Organizations Voluntary Compliance Program. ... Read more
Don't Forget about the Simplest Planned Gift
"Planned giving" can be as easy as suggesting donors give stocks.
A few years ago, the CEO of a large medical center foundation was meeting with a grateful patient who wanted to help fund a significant medical research project at the center. During the meeting, the donor told the CEO that she was planning to sell some stock and write a check. "If the stock is appreciated, there's a better way," the CEO said. The CEO then explained that by donating appreciated stock instead of selling it, the donor would avoid capital gains tax. "Is that legal?" the donor asked. "Absolutely!" the CEO replied. ...
Read more
IRS Changes Requirements on
Reporting Nonprofit Executive Compensation
Take steps now to prepare for filing the new 990 next year.
Just in case you have been so focused on your mission and fundraising in these tough times that you haven't noticed, the IRS Form 990 that most large charities will file has been dramatically revised. This new Form 990 will be used for fiscal years beginning on or after January 1, 2008, typically to be filed in 2009. So the records you keep and processes you follow right now might need to be changed so that it will be easier for you to complete the new form. ... Read more
Do This, Don't Do That:
How to Get Your Proposal Funded
Practical advice from the grantmaker's side of the desk.
In my role as executive director of the Cedar Tree Foundation (Boston, Massachusetts), I've noticed over time that certain questions come up again and again, because they're on the minds of many people who apply to many foundations. I'd like to deal with two of those questions here: How can I get my proposal read? and Are there common mistakes proposal writers make? ... Read more
The New Entry Level: Hiring Talent
from Leadership Development Programs
Learn more about these sources of new talent.
Nonprofit organizations hiring entry-level talent often face a difficult catch-22. Organizations search for candidates looking to enter on the ground floor, but they also want applicants who bring relevant professional experience. This reality creates frustration for first-time job seekers and nonprofit organizations alike. For organizations seeking entry-level candidates who also possess demonstrated experience, leadership development programs can open up a vast talent pool. ... Read more
GuideStar on the Road
GuideStar staff will be at the following events this month. Click here to learn more: GuideStar events calendar.
- Sept. 9: VANNO Tri-Cities Conference, Colonial Heights, Va.
- Sept. 18-20: 2008 ASF Conference, Denver, Colo.
- Sept. 23-26: ILA Annual Conference, Chicago, Ill.
In This Issue
IRS Updates, September 2008: Revised Instructions for the New Form 990 and More
Don't Forget about the Simplest Planned Gift
IRS Changes Requirements on Reporting Nonprofit Executive Compensation
Do This, Don't Do That: How to Get Your Proposal Funded
The New Entry Level: Hiring Talent from Leadership Development Programs
