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Online Giving: An Opportunity & Legal Pitfall

June 9, 2014 by Spokes For Nonprofits

What do Blackbaud’s 2013 Charitable Giving Report, the 2013 Millennial Impact Report and the 2013 eNonprofits Benchmark Study have in common? More and more donors are donating online. All three reports announced double-digit increases in the percentage of online gifts received in 2013 over 2012. The Boston Marathon bombings, Midwest storms, Philippines’ typhoon disaster and #GivingTuesday are cited as key drivers in increased online giving, however, the trend also reflects a cultural shift in philanthropic values and donor engagement. Having a “Donate Now” button on your nonprofit’s website has become a requirement for any nonprofit that wishes to grow its donor support.

But, online donations present a unique legal challenge for nonprofits. Every nonprofit must register in any state where it conducts fundraising activities. So what does an organization do when faced with the prospect of online giving and soliciting gifts nationally – or worldwide? Do you register your organization in all 50 states?

In response to these questions and as an effort to minimize charitable solicitation fraud through the internet, a group of attorneys and state charity officials convened as The National Association of State Charity Officials (NASCO) and defined a set of guidelines for internet fundraising known as The Charleston Principles (visit www.afpnet.org for details).  The following is a summary of the principles to help determine when and where your organization needs to register:

  • Every nonprofit must register in the state identified in its principal place of business address. If you are hosting fundraising or educational events where donations are accepted or soliciting local volunteers and donors, your non-Internet activities alone require registration in your home (“domicile”) state.
  • Every nonprofit using an interactive website (“Donate Now!” button) should register, at minimum, in its home state with the assumption that most of the online gifts received will come from your surrounding proximity.
  • If your organization specifically targets persons physically located outside of your home state – either by email or website – it must register within that targeted state. Clarification: If your organization receives a handful of donations from donors located outside of your state, there is no need to register in the donors’ states. If, however, your organization later sends an email  appeal requesting a second donation from one of those donors located outside of your state then  your organization is targeting persons physically located outside of your home state and would be required to register with the donor’s state.
  • If your organization receives online contributions from persons located outside of your home state on a repeated, ongoing basis or of a substantial amount, it should be registered within those states where the online donors are located. Clarification:  As an example, if a donor from Nevada makes a $50,000 online donation to your California-based organization (a gift that represents 25% of your total annual funds received), such gift would be considered “substantial” by the Internal Revenue Service and require your organization to register with the state of Nevada.

Keep your nonprofit current with these 5 online giving trends.

Keep Your Nonprofit Current with Online Giving Trends

June 9, 2014 by Spokes For Nonprofits

Here are some quick tips to help your nonprofit stay current with online giving trends and maintain legal compliance:

  1. First, good news! Most local nonprofits are already registered with the California State Attorney General. And, unless you are receiving very large donations or many smaller, passive donations from donors outside of California, no further filing is required. If you start to email those smaller donors for new donations, or if the amounts of the donations increase, you will need to file in other states.
  2. Consider filing the Uniform Registration Statement which, can be found at www.multistatefiling.org. Note, the form only applies to 31 jurisdictions; please review the form carefully to determine if additional filings are needed in the states where your donors are located.
  3. New York, New Jersey, Pennsylvania and Florida have very strict filing requirements for online solicitations and the use of “Donate Now” website buttons. Because these states have large populations, if you’re conducting an extensive national online fundraising campaign, you can minimize legal risk by directly filing in each of those states. Likewise, you can also choose to have a statement on your website stating that your organization is unable to accept donations from donors located in New York, New Jersey, Pennsylvania and Florida.
  4. When in doubt of whether or not to file, simply call the state’s charity regulatory offices. The staff at regulatory agencies are usually very helpful and responsive.
  5. If you’re just not sure where to start, remember that Spokes is always here to help! Call us at 805-547-2244 or email us.

10 Tips for Better Board Leadership

February 23, 2014 by Spokes For Nonprofits

  • Understand Your Role
    Are you the champion, visionary, ambassador, auditor, consultant, or investor?
  • Ask Questions
    Play Devil’s Advocate/Devil’s Inquisitor to create transparency and clarity.
  • Remember Why
    Why does your organization exist?  Whom do you serve? Why is it important to you?
  • Be Present
    “80% of success is showing up!” ~Woody Allen.
    Make attending Board meetings a priority.
  • Partner with the CEO/Executive Director
    Mutual respect, trust, commitment and effective communication.
  • Self-Assess
    Conduct regular assessments to measure Board member satisfaction and overall Board performance.
  • Plan, Plan, Plan
    Continually scan the environment for shifts and plan to meet them.  A strategic vision is like a living organism and needs regular attention and care.
  • Focus on Deliverables
    Micro-volunteering, ad hoc committees, internal vs. external committees; define a governance structure that works for you and allows you to best deliver on your goals.
  • Mentor
    Find your replacement and make sure he/she understands his/her role.
  • Operate For Impact
    Evaluate and quantify program impact so that you can obtain partners and investors.

Want more insight on being the best Board Member you can be? Get in touch with us, we’re here to provide resources and solutions. email [email protected] or call 805-547-2244.

Founders Circle Interview with Wells Fargo

October 9, 2013 by Spokes For Nonprofits

Founder’s Circle Member: 
Donor Level: $5,000
Interviewee: Mark Corella, VP & District Manager, Central Coast Market, Wells Fargo – on behalf of Wells Fargo

INTERVIEW QUESTIONS

Spokes: Tell us a little bit about Wells Fargo’s Giving Program

Wells Fargo: Wells Fargo directs its giving to areas it believes are important to the future of our nation’s vitality and success: community development, education, and human services. Wells Fargo is proud to support organizations working to strengthen our communities. Through the efforts of an enthusiastic team, member-volunteers, and contributions, Wells Fargo shares its success by giving back to non profits and educational institutions that address vital community needs and issues in its customers’ communities.

Spokes: Why did Wells Fargo choose to invest in Spokes?

Wells Fargo:  We recognize that the services that Spokes provides are important to Non Profits by helping them be administratively sound therefore allowing  them to spend more time achieving the mission and purpose of their organization.

Spokes:  How does the nonprofit sector support Wells Fargo in its business goals?

Wells Fargo: Wells Fargo can only be as successful as the communities that it serves.  By helping non profits help our communities our communities strengthen and everyone benefits.

Spokes: What recommendations do you have for nonprofits who wish to develop partnerships with corporations like Wells Fargo?

Wells Fargo: Our product is service.  Our value added is financial advice and guidance and our competitive advantage is our people.  I encourage everyone considering partnerships with Wells Fargo to get to know the people that are local to you.

Spokes: Is there anything else you can share about Wells Fargo’s community investment efforts?

Wells Fargo: Wells Fargo is proud that it ranked number 1 in the United States in corporate giving for 2012, according to the Chronicle of Philanthropy, which conducts an annual survey of Fortune 500 ranked companies.  Wells Fargo gave $315.8 million to communities and nonprofits in 2012, these contributions reached more than 19,000 organizations.  Our team members are also giving and volunteering in record numbers – teaching money management skills, helping build homes, mentoring youth, fundraising and serving on nonprofit boards our team members are “rolling up their sleeves” and making a difference in their communities.

A Note from Spokes to Wells Fargo!
Thank you Mr. Mark Corella for your thoughtful input. Spokes is deeply grateful to have your visionary organization as one of our earliest Founders Circle members, investing in the future of the San Luis Obispo nonprofit sector and its contributions to our community’s economic vitality, well-being, and lifestyle.

We appreciate all of our Founder’s Circle Members!

Leadership San Luis Obispo’s HINDsight

May 2, 2013 by Spokes For Nonprofits

What do you & Leadership SLO do?

I’ve been the executive director of Leadership SLO since 2010.  Leadership is a year-long program that has been developing passionate and effective community leaders for San Luis Obispo County business, agriculture, education, health, government and non-profits since 1991.  We’re about building authentic relationships and identifying SLO County’s challenges and opportunities.

What was the original goal tied to your HINDsight?  What did you set out to do?

Well first, I love it that Greg Hind inspired us to look at (and talk about!) the growth that comes from failure. I’ve been in environmental, arts and community nonprofit management for over 30 years and will happily talk to anyone about the many time-consuming and costly mistakes I’ve made! How about the 5,000 Pops by the Sea postcards I sent out with the wrong ticket-line phone number when I was at the Symphony? Or forgetting to include 25% of the labor costs in a large contract when I worked at ECOSLO?   I refuse to call it a mistake that time we did square dancing on Arts Day at Leadership SLO.

What I really want to talk about though is being a boss and managing staff.  What did I set out to do?  I set out to be good; to be inclusive in decision-making, to listen, to be supportive, to encourage personal growth. And most importantly to create a team atmosphere that made our organization relevant and meaningful to our community.

What actually happened?

Hmmm.  Well, hang in for the happy-ish ending, but I can think of three pivotal instances where I failed as a boss and it about crushed me at the time.

  1. I worked with this brilliant and creative person and in the name of maintaining standards I asked her to show me all the work that she generated before it left the office. Actually a really good idea….for awhile. I praised her often and told her (and our board members) how lucky we were to have her with the organization. One day, after months of good work on the job, she came into my office and handed me a document to “review.” As I changed a word, added a comma and underlined a phrase, she asked me “Sandi, do you really think redlining those items makes the document better…or are you trying to remind me that you’re the boss?”  Ouch. I’m sure I protested but her question really touched me.
  2. Several years later I had the great fortune to work with a person who was innately competent in all she did; warm and kind in all her communications.  I felt truly blessed to work with her and told her so often.  One day she came into the office, closed the door and asked to speak with me confidentially.  I was certain that she had an observation or complaint about a colleague that I would wisely solve. To my utter disbelief she told me that working in close proximity to me was becoming intolerable: I interrupted her interactions with folks as they came into the office; I basically fed her “what to say” while she was on the phone and generally I was rude and minimized her role in the organization.  WHAT?
  3. My last example is really the hard one to admit-and that’s my failure to protect the team by refusing to do something about that one person in the office- you know the one- the time-suck, the toxic one, the one who interferes with the productivity, creativity and happiness of others.  Oh yeah, I’d try to manage, try to set boundaries, appear to commiserate and even vow to “do something”.  But several times in my career I had the wrong person in the wrong seat on the wrong bus…and what did I do?  Once I enthusiastically encouraged the person to pursue a new job where they’d find more satisfaction and they did.  Once I brought in a staff development expert who would lead us all through exercises until this person “saw the light” and their own flaws. The person didn’t see the light, didn’t see their flaws, but did eventually leave. And once, I was the one who left…. and left behind a bigger and badder problem for the whole organization.

What was the final outcome?  What did you learn?

Oh man.  I really did want to be a good boss.  So in the first two instances I took to heart the brave observations of the folks who worked for me.  When an employee (say, someone creating a donation letter or a grant proposal) handed me their work for review I learned to ask them: Did you review how we handled this same project last year? Was it successful last time? Do you clearly understand the expected outcomes this year? Have you asked a peer to review this document for clarity and grammar? Do you believe this is a finished product? THEN, I reviewed the work, carefully asking myself “Do I really need to change anything?” or can I admit that, even though it’s not exactly the words I’d use, I can confidently say to this trusted, valuable team member “Good job. Thanks.”

And in all three instances I came to realize that saying you trust someone, and giving praise and having all the good intentions of an open door, and inclusive decision making, being supportive, etc. does not alone a-good-boss-make; does not loyalty-and-productivity-engender. Action is what demonstrates to the team your commitment to them, the organization and your community.  I took actions that demonstrated to staff that they could trust me and rely on me.  I took action to listen more, to plan in advance (with their workloads in mind), to find agreement in clear goals and outcomes and to recognize that individual expressions of the same idea are worthy. I took action to put the right person on the right seat on the right bus.

Work life got better… for everybody.

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