Category Archives: Boards & Leadership

Building Blocks to a Successful Campaign Steering Committee

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Mary Ellen Clark By Mary Ellen Clark
Senior Vice President

The Feasibility Study is completed and your Board has voted to move forward with a capital campaign. Some around the boardroom have a skeptical look on their faces; others are excited, ready to roll up their sleeves and get started. Everyone realizes that the organization has need, but they also wonder how much of this gargantuan task is going to depend on them. Will they be required to ask for gifts? Will they have to ask their friends for money?

For a capital campaign to be successful, it will need the support of not only Board leadership but other leaders within the community as well. These campaigns need a volunteer group who is passionate about the organization, its mission and its values. In many cases, more depends upon who asks for money than the amount asked. The top-level leaders that will be telling the story and soliciting gifts must be able to identify with and be involved with the campaign for such an effort to succeed.

Like building blocks in a child’s playroom, where each block has to be placed carefully on top of the other in order to build the tower, building a strong Steering Committee requires that activities build one on another:

  • Active Board members.  Board members and executive directors are the pillars of an organization. No matter how slick the print pieces and brochures look and no matter how  long an organization has been operating, without an active Board and a strong leader who is qualified, volunteers will not follow.
  • Built with careful planning. Good Steering Committees are not started overnight. Identification of interested and supportive community volunteers begins during the Feasibility Study. They are cultivated and recruited for their campaign experiences, the organization’s specific needs, connections in the community and their support of your organization’s plans.
  • Community Assets.   Nonprofit leaders and Board members must be highly visible in their community. Attracting and retaining strong committee members can be a simpler process when you see them on a regular basis at association meetings and community events.
  • Determined.  Steering Committees must be able to withstand turbulence. Campaigns go through periods where gifts are slow to close and volunteers become apathetic. It requires a strong motivator, leader, cheerleader and      occasionally, a good sense of humor to stay the course and complete the work of the committee.
  • Enjoy!   Be certain that your Steering Committee celebrates. Celebrate finalizing your Committee, your first major gift, the completion of the Inner Family phase and your final gift. Small goals, baby steps and building blocks finish the “tower”.

To further discuss how your organization can build a strong Steering Committee, contact me directly through Jeffrey Byrne + Associates, Inc. at meclark@fundraisingjba.com.

Giving Institute and Giving USA Foundation Board Meeting, Spring 2013

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by Jeffrey D. Byrne
President + CEO

At the Giving Institute and Giving USA Foundation Spring Board meeting (the publisher of the Giving USA annual report on philanthropic giving) where I am a Board member, we had the pleasure to engage with Dr. Una O. Osili, PhD, Director of Research for The Center on Philanthropy at Indiana University. Una’s presentation was around tax policy changes proposed in the U. S. Congress on itemized charitable giving.

As you may know, Congress enacted the charitable giving deduction in 1917, four years after instituting a federal income tax. Changes over the past 96 years have occurred in various ways, but the charitable deduction, as we know it, has not been in jeopardy of elimination until recent discussions by Congress.

Congress is currently debating a number of options to close “loopholes” in the tax code to raise revenues. Philanthropic Industry Leaders are watching closely these actions and are quickly reacting and mobilizing their constituencies to inform their Congressmen and Congresswomen and Senators about the impact that their votes can have on constituencies in their districts and states.

Recently, C. Eugene Steuerle, the Richard B. Fisher chair, an Institute Fellow at the Urban Institute, a cofounder of the Urban-Brookings Tax Policy Center and the Center on Nonprofits and Philanthropy, in his testimony before the Committee on Ways and Means of the House of Representatives (2/14/13) said: a tax subsidy like that for charitable contributions should be treated like any other government program, examined regularly, and reformed to make it more effective. The good news is that the charitable deduction can be designed to strengthen the charitable sector and increase charitable giving at the same or even lower revenue cost.

Steuerle further stated that to increase giving, Congress can:

  • create a charitable contribution for all taxpayers, not just itemizers;
  • allow people to make contributions until the filing of their tax returns or April 15;
  • make it easier for people to donate from accumulated amounts, such as retirement accounts and lottery winnings; and
  • remove or reduce and certainly simplify the dysfunctional excise tax on foundations.

Congress can more than pay for these changes with little or no reduction in giving if it would:

  • put a floor under deductions, which would have little effect on giving incentives;
  • reform subsidies that tend to be highly ineffective and invite abuse, such as the deduction for household goods and clothing; and
  • provide a better information system for charitable giving.

Our responsibility is to participate and actively engage with our elected officials. The stakes are too high. Our elected representatives need our active involvement and expertise because they will use our input in their calculations on how to maneuver through the maze of policy options. Don’t be shy. Engage.

For more information on how to become involved, reach out to me directly through Jeffrey Byrne + Associates, Inc. at jbyrne@fundraisingjba.com.

Board Cultivation is More Than Just New Board Members

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by Mary Ellen Clark
Senior Vice President  

You’ve worked hard to engage your board in the year-end appeal and it showed.   They’ve suggested new prospects, and opened doors to these individuals. Feedback showed that year-end giving is increased over that in 2011. These efforts paid off with new donors, increased gift size and happy faces at the first board meeting of the year. Share more than just the totals with your board. Be certain that they know how many are new donors, renewed donors and increased gifts. Involve them in the acknowledgement process, by phone calls, notes or emails. Engage them.

Bloomerang completed a study comparing the activities critical to keeping board members engaged with those critical to keeping donors engaged and retained givers. Recent statistics regarding new donors shows that 70 percent of new donors give only one year or make one gift. Some of the reasons cited for this disturbing statistic show that the donor: 

  • Doesn’t feel that the organization needs their support
  • They are not reminded to give to the organization
  • The organization did not inform them of how the monies were used

The effectiveness of a board is related directly to how they perceive their performance. They want to make a difference, make new connections, give back to their community through your organization and enjoy the experiences.

Engaging board members in the same way you would a donor will reap great rewards. Whether it’s inviting them to a special event, including them in your newsletter mailing, providing quick email updates or attending a meeting, studies show that increased engagement has a direct relationship to increased fundraising efforts. Charitable Advisors report that an engaged board has a clearer vision and purpose, and ultimately provides more sustained fundraising efforts.   

The following offers suggestions for engaging your board throughout the year. Make 2013 your most effective one with your board and your donors.

  1. Know exactly what you want a board member to do before asking them to do it. Be as specific as possible with your request.
  2. Have a beginning and end date in mind for each activity you request a board member to accomplish. Communicate that timeline. Volunteers should not worry that their commitment will go on forever!
  3. Be sure what you are asking them to do cannot be done faster, easier, better-or, more appropriately by staff.
  4. Provide all the necessary resources and staffing needed to get the job done right and in a timely manner.
  5. Make the accomplishment of your request as easy as possible to achieve by providing the board member with necessary tools (e.g. self-addressed, stamped return envelopes; easy to read and respond to lists; phone call rosters; specific instructions, etc.)
  6. Consider whether or not the board member has the skills, knowledge and expertise to accomplish what you are asking them to do.
  7. Assess the time the board member has already given to your organization before asking for that “extra” project. Consider the number of committee or task force meetings they are already committed to attend. Will they have the time and inclination to do this new task also-the way it should be done?
  8. Is this board member the best person for the job?
  9. Will they enjoy taking on this task? (Although this is certainly not a prerequisite, it does help motivate volunteers and keep them engaged if they enjoy what they are doing-so contributing their time does not begin to seem like a burden.)
  10. Is there a cost involved in the activity? Will they feel they are already giving a lot of time and enough money, and that this is an inappropriate expectation?

The important thing to remember is that by giving careful consideration to how you use your board members’ time, you motivate and encourage each of them to continue sharing this precious commodity with your organization. Good experiences increase the likelihood of repeat performances. (Click here to go to the Bloomerang blog page.)

Insights for Strategic and Tax Changes for 2013

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Jeffrey D. Byrne    

by Jeffrey D. Byrne
President & CEO

As Congress passed legislation in the early hours of the New Year, much changes for tax and fiscal issues for 2013. The two things we know about life is: sooner or later we all pay taxes and we can’t take our money with us when we die. So, let me tackle what I know about the fiscal and tax changes that were enacted earlier this month.

Two-Year Retroactive IRA Charitable Rollover Extension: H.R. 8 includes a two-year retroactive extension of the IRA Charitable Rollover provision that lapsed on December 31, 2011. Specifically, the new law retroactively reinstates the Rollover for 2012 and allows any otherwise eligible gifts made after December 31, 2012 and before February 1, 2013 to be treated as a 2012 donation. The new law also specifies that any portion of a distribution from an IRA to a taxpayer made after November 30, 2012 and before January 1, 2013 may be treated as a qualified charitable distribution for purposes of the IRA Charitable Rollover. Finally, the IRA Charitable Rollover has been reinstated for all of 2013 and will now expire at the end of this year, on December 31, 2013. (The Chronicle of Philanthropy, 7 Jan. 2013)

Core of the Fiscal Cliff Legislation & Tax Changes: According to an article I read in a U. S. Trust Investment Strategy Strategic Insights Advisory recently: The core of the 2012 tax Act once again extends “most” of the so-called Bush tax cuts, but not all. The 2012 Tax Act will permanently extend taxable income tax rates for all single taxpayers with taxable incomes below $400,000 and married couples with incomes below $450,000. The top marginal income tax rate increases to 39.6% from 35% and the top marginal dividend and capital gain tax rates rise to 20% from 15% on investments held for more than one year. Adding in the 3.8% health care tax results in an even higher effective tax rate. Additionally, various tax deduction and credits phase out for individuals earning more than $250,000 and couples making more than $300,000. The agreement also extends unemployment benefits for one year, delays automatic spending cuts for two months, raises the estate tax rate to 40% from 35% with a $5 million exemption, indexes the Alternative Minimum Tax (AMT), extends accelerated depreciation allowances for businesses for another year, renews the research and development (R&D) tax credit and extends the “Doc Fix” (cuts in Medicare payments to doctors).

Finally, the Estate Tax Exemption beginning January 1, 2013 is $5,250,000. This exemption is permanent. It is subject to an inflation adjustment annually.

The bottom line is it’s all generally good news for your organization and the donors who care for it. While there are still discussion of further limits on charitable deductions, we will keep you informed of major changes in legislation that impact your donors. In the meantime, I recommend letting your donors know about the opportunities presented to them by the changes in the IRA Charitable Rollover. They may find that NOW is the time to make a gift to your organization.

Jeffrey Byrne & Associates Inc. Achieves Giving Institute Re-Qualification

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We are very pleased to report that The Giving Institute has announced that Jeffrey Byrne & Associates, Inc. has successfully achieved membership re-qualification. JB&A was one of several firms that successfully met the rigorous requalification requirements. “We are proud of the results that reflect your company’s ethical practice in the philanthropy field and are pleased to work alongside other like-minded professionals, like you, who advance the causes of the non-profits we serve so successfully” stated Wendy McGrady, Membership Co-chair for the Giving Institute.

The Giving Institute was founded in 1935 to promote the need for professional and ethical standards of practice and to influence the creation of laws governing philanthropy. It has been involved in many milestones of philanthropy – developing the widely accepted Standards of Professional Conduct; helping to fund the start-up of the United Way; working with the New York State Legislature to develop and enact the Charity Registration Act, the basis for a nationwide model; creating the Giving USA Foundation™; and initiating GIVING USA, an annual publication that is the longest running, most comprehensive report on philanthropy in America.

Giving Institute membership currently consists of fundraising consulting and service companies that assist not-for-profit organizations. Members are professionally and geographically diverse, annually raising billions of dollars for and providing invaluable types of counsel and services to philanthropic institutions. To become a member of Giving Institute, a firm must meet certain ethical standards as well as undergo an extensive client review process. In addition, once it has become a member of Giving Institute, a member firm must be re-qualified every five years to maintain its membership in good standing.

 

“I am delighted and deeply grateful to the Giving Institute for granting our firm membership re-qualification. Being awarded continuing membership is not only an accomplishment, but a real honor as well. We look forward to upholding the principles of the Giving Institute by providing our clients with the highest levels of integrity and passion” stated President & CEO Jeffrey Byrne.

If you would like to know more about The Giving Institute, please contact us and we will be happy to provide you with information.