Archive for ‘Current Events’

July 29, 2015

Update: Spelman College Returns Gift from Bill Cosby

Seven months ago, I first reported that Spelman College announced the suspension of an endowed professorship in humanities that was funded by Bill and Camille Cosby. At that time, I called on the College to either renegotiate the gift or return it to the Cosby family.

Post No Bills by Jon Mannion via FlickrOn July 26, 2015, the College revealed its decision to terminate The William and Camille Olivia Hanks Cosby Endowed Professorship and to return the donation to the Clara Elizabeth Jackson Carter Foundation, established by Camille Cosby.

Last December, Spelman issued this one-paragraph statement:

December 14, 2014 — The William and Camille Olivia Hanks Cosby Endowed Professorship was established to bring positive attention and accomplished visiting scholars to Spelman College in order to enhance our intellectual, cultural and creative life; however, the current context prevents us from continuing to meet these objectives fully. Consequently, we will suspend the program until such time that the original goals can again be met.”

Amid mounting accusations of sexual assault involving Bill Cosby, the College decided to terminate the endowed professorship. As of this publication date, Cosby has not been charged with any related crime.

As I stated in my December post, nonprofit organizations are ethically required to use a donor’s contribution in the way in which the donor intended. The applicable portions of the Donor Bill of Rights “declares that all donors have these rights”:

IV. To be assured their gifts will be used for the purposes for which they were given….

V. To receive appropriate acknowledgement and recognition….

VI. To be assured that information about their donations is handled with respect and with confidentiality to the extent provided by law.”

The relevant passages from the Association of Fundraising Professionals Code of Ethical Principles state:

14. Members shall take care to ensure that contributions are used in accordance with donors’ intentions….

16. Members shall obtain explicit consent by donors before altering the conditions of financial transactions.”

By returning the gift after deciding not to use it for the intended purpose, the College acted ethically. However, a number of other ethical questions remain unanswered:

July 23, 2015

IRA Rollover Poised to Make a Comeback

I have some good news.

The US Congress has begun the process to revive the Charitable IRA Rollover which expired at the end of 2014. Now, it’s time for you to take action.

On Tuesday, July 21, 2015, the Senate Finance Committee approved a number of tax extender provisions including the IRA Rollover. While the Committee considered making the IRA Rollover provision permanent, it ultimately settled on a two-year extension.

US CapitolFinance Committee Chairman Orrin Hatch (R-UT) said, “This markup [of the bill] will give the Committee a timely opportunity to act on extending a number of expired provisions in the tax code that help families, individuals and small businesses. This is the first time in 20 years where a new Congress has started with extenders legislation having already expired, and given that these provisions are meant to be incentives, we need to advance a package as soon as possible.”

Ranking Committee Member Ron Wyden (D-OR) said, “The tax code should work for, not against, Americans. We need to extend these tax provisions now in order to provide greater certainty and predictability for middle class families and businesses alike. However, as we look beyond next week, it’s critical we all recognize and take action to end this stop and go approach to tax policy through extenders.”

The House of Representatives has yet to take action though Rep. Paul Ryan (R-WI), Chairman of the Ways and Means Committee, remains interested in legislation that would make the IRA Rollover permanent. However, ultimately, the House might bring its thinking into alignment with the Senate Finance Committee. The House is expected to take up the issue as early as September.

When Democrats controlled the Congress, the IRA Rollover extensions were done a year at a time and often very late in the year. This made it challenging for both donors and nonprofit organizations to plan and to take full advantage of the provision.

With Republicans in full control of Congress, the House and Senate are considering the IRA Rollover provision earlier in the year and are considering a longer extension term. These are both good things for donors and charities.

It remains to be seen when final action will be taken and what that action will look like. It’s also unclear whether the Obama Administration will support the measure.

The Charitable Giving Coalition has long advocated for the IRA Rollover and other provisions that provide incentives for charitable giving. In addition to encouraging Congress to take action, the Coalition has sent the following letter to all Presidential candidates:

July 8, 2015

Nonprofit Sector is a Powerful Force for Freedom

This past weekend, my fellow Americans and I celebrated our nation’s Independence Day. On July 4, 1776, representatives from the colonies gathered in Philadelphia to declare independence from Great Britain. The Declaration of Independence, in part, states:

We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness.”

Around the world where democracies have flourished, we see a robust nonprofit sector. Under dictatorial regimes, charities are either not permitted to exist, operate under government control, or function underground.

Independence Hall by Michael RosenDemocracy and the right to vote are not the same thing. While voting is certainly an essential element of a democracy, the term means so much more. Among other things, true democracies maintain an independent judiciary, ensure the rights of all citizens, and protect the most vulnerable members of society.

Charities contribute to freedom by diffusing power throughout society, encouraging expression, securing individual rights, meeting unmet needs, and in many other ways.

Brazil provides a good example of what I mean. When Brazil ended military rule and adopted a democratic system, the government maintained central control and limited the formation of charities. That democratic experiment ended relatively quickly with another military coup. When Brazil once again ended military rule, the new democratically elected government allowed the formation of charities and worked cooperatively with the sector.

Today, Brazil has a robust democracy, a reasonably healthy economy, and an effective nonprofit sector. Charities are indeed an essential part of civil society. You can read my article “Brazil: Two Countries Becoming One” by clicking here.

In the USA, charities are also an essential component of civil society. One of my favorite charities is the Philadelphia Children’s Alliance. PCA brings justice and healing to the victims of child sex abuse, protecting the most vulnerable members of our society.

Unfortunately, much more needs to be done to free children from the oppression of sexual abuse. In America, one in four girls and one in six boys are sexually abused. Sexual abuse knows no racial, ethnic, religious, geographic, or economic boundaries. Sadly, though, many people choose to ignore the problem or rationalize it away rather than engaging to protect our nation’s vulnerable young ones.

June 30, 2015

Free Webinar Will Help You Get Great Results

Fundraising can certainly be challenging. Have you ever wondered:

  • How can I raise more money at little or no extra cost?
  • Is my organization ready for a planned giving program?
  • What simple planned giving vehicles should I promote?
  • What is my organization’s Bequest giving potential?
  • Who are my best planned giving prospects?
  • Do I need to be an expert to do planned giving?
  • What motivates planned giving donors?
  • How should I ask for planned gifts?

If you’ve ever asked yourself any of those questions, then I have the perfect free webinar for you.

FreeI’m presenting “Planned Giving: It’s Easier than You Think!” During my free webinar, hosted by Wild Woman Fundraising, you’ll get answers to all of the above questions and more. In short, you’ll learn how to easily launch and grow a successful planned giving program.

For many nonprofit professionals, planned giving sounds complicated, with its CRUTs, CRATs, CLUTs, and CLATs. Admittedly, gift planning can indeed be incredibly complex. However, as this free webinar will demonstrate, it does not have to be. Furthermore, a planned giving program can be enormously worthwhile for virtually any organization, even those with little or no budget for it.

For valuable tips to help you grow your planned giving results, register for my free webinar today, “Planned Giving: It’s Easier than You Think!” [July 17, 2015, 3:00-4:00 PM (EDT)]. To register, CLICK HERE.

As a webinar participant, you will receive a number of bonus handouts including:

June 16, 2015

Strong American Philanthropy at a Record High!

Americans donated an estimated $358.38 billion in 2014, surpassing the peak last seen before the Great Recession, according to the 60th anniversary edition of Giving USA, released today. That overall total slightly exceeds the benchmark year of 2007, when giving hit an estimated inflation-adjusted total of $355.17 billion. However, Individual giving has yet to recover fully.

The 2014 philanthropy total increased by 5.4 percent, when inflation adjusted, over the revised estimate of $339.94 billion that Americans donated in 2013. Giving has grown for each of the previous five years. The growth in 2014 significantly outpaces the average growth rate of 3.4 percent (inflation adjusted) during the past five-year period.

All four sources of contributions that comprise total giving increased in 2014:

  • Individuals (72 percent of the total, 4 percent inflation-adjusted increase)
  • Corporations (5 percent of the total, 11.9 percent inflation-adjusted increase)
  • Foundations (15 percent of the total, 8.2 percent inflation-adjusted increase)
  • Bequests (8 percent of the total, 13.6 inflation-adjusted increase)

Giving USA 8.5 x 11 Infographic“The 60 year high for total giving is a great story about resilience and perseverance,” says W. Keith Curtis, Chairman of the Giving USA Foundation and President of The Curtis Group. “It’s also interesting to consider that growth was across the board, even though criteria used to make decisions about giving differ for each source.”

When combining the Individual and Bequest numbers, we see that individuals contributed 80 percent of all dollars given to charity in 2014. If we include family foundation giving, individual philanthropy accounted for 87 percent of all dollars given in 2014, according to Patrick Rooney, PhD, Associate Dean for Academic Affairs and Research at the Indiana University Lilly Family School of Philanthropy. Large Individual gifts of $200 million or more accounted for a significant portion of the overall growth in Individual giving while the actual number of gifts over $1 million has decreased.

“We saw several very large gifts greater than $200 million — a few were greater than $500 million and one was nearly $2 billion — in 2014,” says Rooney. “The majority of these mega-gifts were given by relatively young tech entrepreneurs.”

Looking at the nine gift recipient categories, all but one saw an increase in giving:

June 4, 2015

Do You Care If I Renew My CFRE? Vote Now.

I’m frustrated.

I’ve been a Certified Fundraising Executive (CFRE) since 1994. That means I’ve held the credential longer than at least 89 percent of all current CFREs! I’ve also taught the CFRE Review Course. Clearly, I’m committed to the idea of professional certification for fundraising practitioners.

Unfortunately, the CFRE designation has failed to realize its potential. In fact, the credential is becoming less, rather than more, relevant.

That’s why I’ve tentatively decided not to renew my certification this month UNLESS you tell me I should renew.

VotingI’ve come up with a creative way for you to vote. My method will allow you to not only register a vote in favor of renewal, you’ll be able to convey how passionately you feel about renewal. To vote in favor of my renewal, simply go to my GoFundMe site (VOTE: Michael’s CFRE Renewal Fund) and make a donation. I estimate that renewing my CFRE and running this mini-campaign will cost approximately $600. If you think I should renew, contribute one dollar. If you feel more strongly that I should renew, contribute more, up to the $600 goal.

If we reach the goal of $600 by June 14, 2015, I will submit my renewal application to CFRE International. If we do not reach the goal, I will evaluate the feedback I receive and make a final decision about renewal by June 14. In any case, I will donate any unused funds to either CFRE International or the Association of Fundraising Professionals Foundation. Donations to this mini-campaign are not tax-deductible.

If you believe that I should not bother renewing my CFRE designation, you do not have to do anything to register your vote. I’ll see how many people visit this blog post and be able to compare that number with the number of people who vote with their dollars. So, I’ll see how many readers are voting by not actively voting.

With this method of voting, I will be able to gauge not just how much casual support there is for CFRE, but how much passionate support there is.

For now, I’m not passionate enough about CFRE to continue to spend my own money on renewal. Let me explain my position:

Lack of Commitment. By tentatively deciding not to renew my certification, I’m in good company. Of the eight past Board Chairs of CFRE International, the organization that controls the credential, three did not hold the CFRE designation as of 2013, according to the group’s annual report. In other words, 37.5 percent of past CFRE International Board Chairs do not hold the CFRE designation!

While CFRE International claims to have a high overall retention rate among CFREs, there is really no way to evaluate this. All the numbers reported by CFRE International prior to 2013 are suspect, according to Eva Aldrich, CFRE, President/CEO of CFRE International.

Anemic Numbers. Supposedly, a new technology system now allows for accurate reporting. Nevertheless, Aldrich has refused multiple requests to provide counts of the number of CFREs by country. So, we have no way of knowing, for example, whether the number of CFREs in the USA is growing, shrinking, or remaining the same. However, since 85 to 90 percent of all CFREs reside in the USA, I’ll assume, for the sake of this post, that the American CFRE growth rate is comparable to the overall growth rate.

In January 2015, CFRE International issued a statement, complete with a photo of fireworks, boasting that its 5,451 CFREs in 2014 represented a three percent growth rate over 2013. (Incidentally, the number of CFREs reported for 2012 was 5,630, which Aldrich now conveniently claims, was an inaccurate number; she further claims that she cannot ascertain the real number nor can she even estimate the degree of variance.)

The 2013-2014 growth rate of three percent seemed modest to me, certainly not worthy of fireworks. So, I did some research. Using data reported by The Urban Institute, I discovered that the growth rate among nonprofit organizations with revenue of $500,000 or more — in other words, among those organizations most likely to have someone on staff doing at least some professional fundraising — the growth rate was 3.6 percent. What this means is that the universe of nonprofit organizations doing fundraising has grown faster than the number of CFREs.

I’ll express this another way: Despite its modest growth, CFRE is growing more slowly than the market and, therefore, is actually losing market share.

CFRE is becoming less relevant!

May 29, 2015

Avoid the Pitfalls to Raise More Money

Yesterday, I made my first public speaking appearance since my successful battle with cancer began just over a year ago. I served as the plenary presenter at the Philanthropic Planning Group of Greater New York Planned Giving Day Conference. My topic:

Ripped from the Headlines: Learning from the Planned Giving Mistakes of Others”

It was a particularly moving day for me. You see, I was scheduled to speak at PPGGNY’s conference last year. Unfortunately, because of my health, I had to cancel. It marked the first time I ever canceled a professional appearance.

Meryl Cosentino, the Vice President of PPGGNY and Senior Director of Planned Giving at Stony Brook University, was very understanding and kind. She stayed in contact with me during my recovery and, when she learned of my return to professional life, she invited me to speak at this year’s Planned Giving Day. I thank Meryl and her colleagues for the invitation to present.

So, PPGGNY Planned Giving Day marked my first speaking cancelation and, now, my return to the speaking circuit! I’ve come full circle!

To help me celebrate the happy occasion, The Stelter Company generously sponsored 20 copies of my book, Donor-Centered Planned Gift Marketing, so we could give them away to random winners during my presentation. I thank Stelter for its thoughtful support. I also thank Stelter for contributing valuable material to my book. The company’s commitment to the nonprofit sector is remarkable, though not the least bit surprising.

Michael Rosen at PPGGNY Planned Giving Day Conference.

Michael Rosen at PPGGNY Planned Giving Day.

During my talk, I shared several stories about well-known nonprofit organizations that have stumbled. I also shared plenty of useful tips, and a story that provided the overarching theme to my presentation. The story contains an important lesson for all nonprofit professionals:

Several months before my surgery, I visited southern Utah with a good friend. We went hiking in Escalante National Monument, a spectacular wilderness. On the more treacherous trails, I was particularly cautious. I carefully placed my feet with each step. I looked at where I was going to step next so I could pick the best spot. Because I exercised great caution, I didn’t stumble once.

Coming off one challenging trail, I found myself on a wonderfully flat, gravel path. I gave a sigh of relief. I was pleased to be able to spend more time looking at the lovely scenery rather than the trail and my feet. However, as soon as I had that thought, I stepped into a small gully, a tiny wash. And I went falling straight over. After grabbing my camera to make sure it was undamaged, I checked myself. With the exception of a skinned knee and bruised ego, I was fine.

From that experience, I learned a profound lesson.

May 25, 2015

Discover 5 of the Latest Trends Affecting Your Fundraising

Leading up to the 2015 Association of Fundraising Professionals International Fundraising Conference, a number of my readers contacted me to request that I gather information about emerging fundraising trends. (Yes, I take requests, so feel free to make one.)

It’s not surprising that development professionals understand the need to stay on top of the evolution that takes place in the world of philanthropy. After all, as Benjamin Disraeli has said:

Change is inevitable. Change is constant.”

Recognizing that ongoing change is part of our life is one thing. Understanding what that change means and how to capitalize on it can help even good fundraisers become stars. As John F. Kennedy has stated:

Change is the law of life. And those who look only to the past or present are certain to miss the future.”

None of us wants to miss the future.

So, with that thought in mind, I attended the session “Latest Trends in Giving and What They Mean for Your Organization” with presenters Stacy Palmer, Editor of The Chronicle of Philanthropy, and Jeff Wilklow, Vice President of Campbell & Company. Here are five of the key trends they cited:

Mega-Donors:

Among very wealthy, very generous philanthropists, much of their giving does not go directly to existing charitable organizations. While their philanthropy will eventually find its way to charitable purposes, it will first be funneled through special funds or foundations that the mega-donors create or contribute to.

Money by 401(K) 2012 via FlickrMany of those who earned their fortunes through entrepreneurialism will gravitate toward entrepreneurial philanthropy. This is particularly true with younger technology entrepreneurs. With a do-it-yourself attitude, these individuals may choose to create a charity or socially-responsible business rather than donate to an existing, mainstream nonprofit organization.

In any case, big donors are interested in funding big ideas. They’re interested in big solutions to big problems. To attract the support of mega-donors, your charity will need to focus on creative solutions for large challenges.

Legacy Donors:

Many charitable organizations embrace the idea that planned giving equals endowment building. For example, many charities have adopted policies that direct bequest revenue into the organization’s endowment fund unless otherwise designated by donors.

While your organization might have a bias in favor of building endowment revenue, donors have a keen interest in their own legacy. Donors want to make a lasting difference. So, they will likely be more interested in funding your programs and initiatives that help establish their legacy than they will in simply having their money deposited into your organization’s investment pool.

Just as we see that current donors have a growing interest in gift designations rather than unrestricted giving, we see a similar interest among planned giving donors who want to ensure their legacies. Some donors want to be assured of having a long-term, definable impact while other might be content with having their name, or the name of a loved one, on an endowment fund. The key is to understand what motivates the individual.

Social Donors:

Donors communicate with your organization in a variety of ways thanks to new technologies. They also communicate with each other like never before.

Donors are online. And it’s not just young donors. They view your website, they engage in crowd funding, they give online, they take surveys, etc. Here are a few simple things you need to do to make sure those experiences inspire support:

May 5, 2015

Will You Help Me Celebrate My (Re)birthday?

On May 2, I began my month-long (re)birthday celebration. One year ago, I underwent a 14-hour surgery to remove the rare cancer that had spread throughout my abdomen. The surgery was a success, and I am now in remission!

First Birthday Balloons by akadruid via FlickrPrior to surgery, I was told my life expectancy would be about two to five years. Following surgery, my doctor told me I can expect a full life. That’s why I consider May 2 my (re)birthday.

Having gone through what I have during the past year, I’m returning to professional life with a reinvigorated commitment to help the nonprofit community be more efficient and effective so we can make the world a better place.

I’m doing a number of private and public things this month to celebrate. While I normally ensure that my blog site remains largely non-commercial, I’m making an exception with this post because I want to enlist your help as I mark this important time in my life.

There are a number of ways you can join my (re)birthday celebration:

New Clients. I’m looking for at least three new clients. If you’ve found my blog posts helpful, imagine what we can achieve by working closely together, as some readers have already discovered. If you work for a nonprofit organization, I can help you with annual fund enhancements, donor retention efforts, ethics education and policy development, phone fundraising improvements, planned gift marketing, and training for staff and/or boards. If you work for a for-profit company serving the nonprofit sector, I can help you with service/product enhancements, new service/product development, and marketing.

Please contact me if you would like to discuss how I can help you achieve your goals.

Paid Speaking Engagements. As part of my return to professional life, I’m looking forward to getting back out on the speaking circuit. I’m an experienced, well-reviewed presenter and AFP Master Trainer. I’m also an adjunct faculty member at Drexel University where I teach Advanced Fund Development to graduate students. For your organization, I can facilitate a variety of training programs for your board, staff, or volunteers. For your professional associations, I can offer a variety of seminars or keynote presentations to meet the group’s needs and particular interests.

April 10, 2015

Can You Spot a Child Molester? Discover the Warning Signs

I know. The question is an odd one: Can you spot a child molester? It’s a particularly odd question for a blog dedicated to nonprofit management, marketing, and fundraising.

So, what’s going on here?

Child by Paolo via FlickrWell, April is National Child Abuse Prevention Month. To mark the occasion every year, I devote one blog post that will help you protect your loved ones from a nightmare crime that affects one-in-four girls and one-in-six boys. Fortunately, we can do something about this national tragedy. Let’s begin with how you can recognize child molesters and, then, we’ll look at actions you can take.

Years ago, I served on a jury hearing a child-sex-abuse case. At that time, I knew very little about pedophilia. My knowledge was limited to what I learned through the mainstream press. So, I assumed that most child molesters were priests or guys wearing trench coats and driving unmarked vans. However, during the course of the trial, I learned that about 90 percent of child-sex-abuse victims are molested by someone the child knows (i.e.: a relative, teacher, coach, family friend, etc.).

Because child molesters are usually people known to the child and his or her family and in their circle of trust, it’s often difficult to recognize them for the danger they represent. Fortunately, there are some helpful clues as to who might be a molester. The blog site news.com.au published a controversial article, “Could You Spot a Paedophile? Here are the Warning Signs.” In the post, veteran crime reporter Candace Sutton identified nine characteristics of a child molester:

1. The Everyman. Child molesters generally do not look like child molesters. If they did, they wouldn’t be very successful pedophiles. Instead, molesters tend to look “normal.” They are often clean cut, respectable citizens. Remember Coach Jerry Sandusky from Penn State University?

“Pedophiles are almost always men, more often married adult males and they work in a very wide range of occupations, from unskilled work up to corporate executives. What to look out for is someone who relates better to children than to adults, and has either very few adult friends or whose friends might also be sex offenders.”

2. Child-Related Workers. While child molesters hold a variety of jobs, many seek professional employment or volunteer opportunities that will bring them into close contact with children. You should not be fearful of all child-related workers. However, you should limit and/or monitor their one-on-one time with children.

“Watch out for teacher adoration beyond the bounds of a normal crush, accompanied by ‘secret’ phone calls and special individual attention.”

3. Happy Snappers. Child molesters often collect photographs and videos of children who are not their own. While they sometimes produce and collect child pornography, many more molesters seem to enjoy images of children who are clothed and engaged in typical childhood activities.

Be cautious around adults who enthusiastically photograph children who are not their own.

4. Close Relatives and Partners. This one is especially tough. Unfortunately, child molesters are often family members. In the child-sex-abuse case I mentioned above, the jury I served on ended up convicting a step-grandfather of sexually abusing his step-grandson.

“The incestuous or family molester is usually an adult male such as the father, stepfather, uncle, grandfather or live-in boyfriend of the mother, who then molests the child or children.”

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