 Closing a nonprofit organization is usually the last thing that comes to mind when considering potential futures for an organization you’ve dedicated so much passion and time towards. It is natural for companies to run their course whether from successfully completing their mission or from a variety of issues that may arise like financial instability or loss of resources. In fact, an article by Candid evaluating various scenarios showed that 4 percent of nonprofits would close in the absence of a crisis. Our country is currently going through a unique crisis, one that has occurred only once in the past century. Battling the coronavirus pandemic has been difficult for everyone. Even with government aid and public willingness to support nonprofits, organizations may still be facing a variety of challenges. Evaluating your nonprofit’s status during a global pandemic with an honest approach is a brave action to take. Here is what goes into consideration when it comes to closing a nonprofit:
What to Evaluate When Looking at the Life of Your Nonprofit There are a number of reasons for dissolving a nonprofit organization. These all tie into whether or not you’re able to continue running a nonprofit.
Other organizations that rely on donations are also feeling the stress of the pandemic trickle through. Members of the community have been struggling to make ends meet during the pandemic. There have been many instances of lay-offs and furloughs since last March. Families are also having to deal with loss of income from being unable to work due to medical problems or quarantining. “Nearly two in five American households say they’re making less money since the start of the pandemic.” This limits the amount of charitable donations that people are able to make. While emergency funding through grants and loans are an option, relying on these for extended periods of time is not a solid strategy for the health of your nonprofit. Look over your available funds and income sources and if you see continued issues, it might be time to consider closing.
The coronavirus pandemic, along with public unrest stemming from social justice issues, has also boosted specific nonprofits to the forefront of peoples’ minds. Those making charitable contributions are dedicating their resources to those working on the frontlines, COVID-19 related nonprofits, and, in the wake of the Black Lives Matter movement, nonprofits that work to promote social justice. This leaves others like those focused on arts and education, for example, struggling with unexpected competitors. At certain times, there may not be enough bandwidth in the system to support as many nonprofits.
Throughout the crisis, Johns Hopkins University found that over 1.6 million nonprofit workers have lost their jobs. With many nonprofits being under-resourced even before the pandemic began, holding on to staff during difficult times may not be possible. Less staff may lead to the inability to carry out your organization’s work and limit your work towards your mission. Nonprofits are also facing a new problem when it comes to volunteer numbers. The pandemic has prevented people from being in close contact with one another which means organizations that rely on the help of in-person volunteers may feel the strain more than before. Sacrificing the work of an organization in favor for the safety of people is never a bad choice. Sometimes, people just become too burned out. This is understandable when it comes to running an organization you are passionate about. The past year has taken its toll on people in unimaginable ways. A lack of energy to dedicate to an organization may also be an important resource to take into account when considering closing your nonprofit. Actions to Take When Closing a Nonprofit There are a number of steps to take in the event of a nonprofit closure. One of the key points to remember is to keep your staff and your clients at the center of your actions. This means keeping people informed and approaching the situation with patience and empathy. Many people have dedicated time, energy, hopes, and even their hearts in your organization. Take the time to walk them through this process and offer support where you are able. These are important actions to take when going about closing a nonprofit organization. Each organization’s dissolution plan will differ according to their structure and needs, but here is a basic outline of an effective closure strategy.
It is also important not to forget federal and state entities in your notification process. You will need to file a formal intent to close with the state as well as submit final tax documentation to the IRS within a few months of closing.
Clients may suddenly have a gap that needs to be filled. Refund fees for unused services, refer clients to similar organizations in the area, or offer what help you are able to in the final days of your organization.
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 The philanthropy landscape has changed just within the past year. With different causes emerging to the forefront of the news cycle, the priority of philanthropists has also shifted to focus on contributing to issues that have been highlighted since last Spring. The Black Lives Matter movement has been around since 2013, but only recently has there been a surge in donations towards this cause and many other Black-owned nonprofits. Philanthropists have switched gears and invested more of their time and money into nonprofits that support social change, Black communities, and Black leaders.
Businesses Contributing to Social Justice While the Black community and community of color have faced countless acts of injustice, it took the events of the pandemic and highly publicized murders occurring last year to shine light on many of the issues these communities have been dealing with. Since then, corporations have been taking a role in funding these movements and supporting people in these communities. The George Soros Foundation pledged to distribute $220 million to organizations and leaders in Black communities. These contributions were spread across a variety of organizations from those that foster civic engagement in Black communities to those working in public safety, incarceration, and the police. This foundation, like others, is dedicated to showing a long-term commitment to supporting organizations that work with social justice-related issues. Well-known corporations have also stepped in when it comes to donations. Chick-fil-A gifted $5 million in grants to serving black communities and nonprofits. Other business giants have reached out to Black and minority owned businesses to provide support. Netflix pledged to support Black-owned businesses in Los Angeles and PepsiCo planned to invest over $400 million in Black communities and in developing Black leaders, especially at their own company. They committed to making these contributions over the next five years. Organizations to Invest InThere are plenty of organizations focused in the racial justice sector to contribute to. Many websites like Charity Navigator can help you search for and evaluate nonprofits. They include highly rated charities that promote Black health, education, rights, and community development. Other nonprofits to donate to include:  The past two years have been a challenging time for many businesses. Restaurants are one of the many businesses that have faced struggles when it comes to making revenue and staying open. COVID-19 restrictions have limited the way restaurants are able to operate. Many face shorter business hours, restrictions with dine-ins, and less foot traffic in general due to fear of the pandemic. The beginning of the pandemic saw a major decline in business for restaurants, with the average daily revenue last spring averaging at minus 60 percent. Only in recent months have restaurant businesses started to improve and, even then, they are still operating around minus 30 to 40 percent revenue.
With so many new financial considerations and burdens for restaurants to take on, it is important for restaurants to cut expenses where they can. One of the first places to look to save on some money is through tax dollars. Finding deductions to apply to business income is a great way to minimize the amount of tax being taken off revenue. Here are some places to examine when looking for tax write-offs: Labor The cost of labor is usually a huge proportion of a restaurant’s expenses. Restaurant owners need to account for wages, benefits, and employment taxes for each staff member they have on their team. The costs of having these employees is fully deductible. Any money that comes from the restaurateur counts which means things like bonuses or meals provided while on the job can be considered. Supplies One constant expense that small businesses handle is supplies and restaurants deal with some of the largest inventories of supplies to keep their business running. Food and beverages need to be ordered frequently in addition to staple kitchen appliances or delivery vans and replacing smaller supplies like linens, glassware, utensils, etc. All of these items are tax-deductible in some way. IRS Publication 535 is a great reference for business expenses. Advertising These days advertising can occur through a variety of mediums.Whether a restaurant owner decides to use print marketing, radio, or other media, it is important to know that the cost of advertising is tax-deductible and has no dollar limit. Insurance All business owners take on some type of insurance to protect their businesses. This expense can also be a tax write-off and can include insurance that protects anything from the physical building to spoilage of food to back-up generators. Use IRS Publication 946 for insight on capital equipment write-offs.  Taking popularity contests into consideration is not something that first comes to mind when engaging in charitable work. While we would hope that all organizations doing nonprofit work on behalf of a variety of causes are receiving the aid they need, this is simply not the case. There are differences when it comes to the type of causes that people like to fund. This doesn’t mean that it is impossible for less “popular” causes to raise money, but that more innovation and dedication may be required to raise funding for their goals. Those willing to rise to the challenges of these obstacles can still do great work for their causes.
Funding Priorities Around the World Donors around the world have different viewpoints on organizations they are willing to fund. A study from WealthInsight has shown that, overall, philanthropists are most involved when it comes to funding cultural institutions, academic institutions, and healthcare. In 2017 alone, health related charities saw a 15.5 percent rise in donations from American households. Causes that seemed to be less popular among donors in the world include religion, sports, human rights, and military causes. However, preferences vary by region with those in the Americas and Europe seeing more donations to health and culture causes while education dominates donations in Asia, Africa, and the Middle East. There are also more variations when you investigate each sector. While health may be a top priority for many philanthropists, areas in health that touch on issues like mental health, addiction, or sexual health see significantly less donations than health organizations that address topics like cancer. For example, the nine cancer charities in the top 100 fundraising charities have a combined income larger than the 13 charities in the top 100 related to other health issues. Facing the Road Ahead There’s plenty of actions organizations can take if they are looking to boost their donations. The key is showing others the importance of advocating and supporting the cause the organization is passionate about. Take an active role in educating about the cause and show evidence of the impact a donor’s funding can make. Continue to appeal to the public’s emotions and take advantage of opportunities to elevate the nonprofit’s profile. A good reference is an article published in the International Journal of Nonprofit and Voluntary Sector Marketing touching on “unpopular causes and how they can achieve fundraising success”. There may be a tough road ahead but, holding on to a positive outlook and having specific strategies on the fundraising journey can play an important role in how successful an organization is.  First and foremost, we want you to know that the staff and leadership of Kruggel Lawton offers our most sincere condolences to you and your family following the death of your loved one. Death is an emotional and troubling reality, and navigating the complicated and often overwhelming landscape of tax requirements after someone passes away can make it all the more difficult.
If you are facing the difficult task of acting as executor to your family member’s estate, we are here to help to make this process easier for you. Working with our team of accounting professionals will help you to ensure the tax administration portion of your loved one’s estate is taken care of, allowing you to focus on the grieving process and supporting your family and friends. You are not alone in your grief, and you are not alone in this process. In the midst of the pain of losing a loved one, it can be difficult to focus on the tasks required of you as executor. Even if your loved one did not have a taxable estate (over $11,580,000), there are many items to consider during the process:
Navigating the filing of taxes after the death of a loved one is no simple matter, and there is a huge range of issues that could pop up along the way. With the help of our Kruggel Lawton CPAs Fiduciary Tax Services team, you can rest assured that your loved one’s estate will be properly handled and that you won’t need to worry about future tax compliance issues. While this experience may be new and difficult for you, our team has decades of combined experience and can handle these tough trust and estate tax matters with ease. If you are dealing with the death of a loved one and would like help with your role as executor, contact Kruggel Lawton and our Fiduciary Tax Services right away. We’ll take care of the finer details of these tasks to give you the time you need to process and grieve and give you the best advice for allocating funds toward retirement plan accounts, asset titling, and more. The Kruggel Lawton Fiduciary Tax Services team is waiting to help you and your family begin to heal from your loss, and to give you financial peace of mind for yourself and the future of your loved ones.  Accounting can be a time-consuming aspect of running a business. This involves tracking, recording, and analyzing all of your business’ finances and using that information to create records, reports and perform tax returns. Maintaining a good bookkeeping record can be vital not only to be compliant with laws and regulations but to keep a watch over the health of your business. Startups can have a number of questions when it comes to accounting. Here are relevant tools and tips to keep in mind when managing the accounting side of your small business.
Use a Business Bank Account Setting up a bank account separate from your personal account is one of the things a small business should look into. Not only does this make tax season easier for you, it also makes it clear where expenses and profits are coming from. Some tips to keep in mind when opening a business bank account:
Find a Method for Expense Tracking There are different options to choose from when tracking your expenses. The important thing to keep in mind here is that the IRS requires documentation of income, credits, and deductions in order to process tax returns each year.
Types of information to keep include receipts, bank statements, canceled checks, proof of payments, W2 and paychecks, W2s, tax forms, etc. Make sure to keep close track of expenses related to meals and entertainment, out of town business travel, and vehicle related expenses. Determine Pay Figure out how your business will get paid and how you will pay your employees. You could set up a point of sale (POS) system or choose to use online payment methods like PayPal or Venmo. When setting up a payroll system, make sure you categorize your workers correctly depending on whether they are employees or contractors. Develop a Bookkeeping System Bookkeeping can be learned or outsourced. This involves recording the day-to-day transactions of the business and organizing them in a way that can then be used by accountants to analyze the business. Bookkeeping is an ongoing process that needs to be completed each month. Companies like Kruggel Lawton CPAs can help with this if you want to focus on your business. Their Client Accounting Services take care of bookkeeping and financial forecasting meaning you’ll have a hands off routine business accounting procedures and advisory services for financial needs.  Philanthropic giving may seem like an easy process. Many who get involved have the ability to make significant impacts on the causes and nonprofit organizations they are helping. But, simply having the desire to help others doesn’t necessarily mean you will be effective at it. There’s plenty of forethought that goes into charitable giving. This is why creating a strategic philanthropy plan allows you to be intentional with your donations and guides you through your decision making.
How to Give Money Away...Strategically The following questions will help you determine the best way to distribute your income. What are you and your family’s values, concerns, and beliefs? Figuring out what you care about is one of the first steps when it comes to philanthropic giving. You want to have a clear understanding of why you are doing what you’re doing and that starts with anchoring your philanthropic efforts in ideas, beliefs, and values that are important to you and your family. This helps you begin your process in solving complex problems. Once you’ve determined this you can go about looking for organizations or issues you hope to impact. This is also the time to see what others in the field are working on and the types of aid a specific issue needs. What does success in philanthropy look like to you? Success can look different to everyone. This could mean seeing the organization you are funding reach their goals, you reaching your own philanthropic goals, or even just being able to actively contribute your time and money to the cause you care about. The main focus is understanding what you would like to see yourself achieve. Take time to think about potential outcomes and research whether or not your goals are feasible. How will you go about giving? This is the stage where you map out the type of resources you can bring to the table and how you will go about contributing them. If it’s money you are looking to donate, look into how often and how much you are willing to give as well as any risks involved. Giving can also be done through other avenues such as through volunteering, mentoring, or creating connections for the organizations. Divide up your time and resources into something that makes sense for you and stick to it.  Whether you have been giving for a few decades or just stepping into the philanthropic world, you might be curious about different styles of giving and wonder what your tendencies lean towards. Well, according to the Foundation Source, there are five common methods of giving that they have noticed among clients in the charitable giving world. Curious to see where you may fall within these categories? Read ahead to discover the five types of philanthropists!
Checkbook Philanthropists Those who are labeled checkbook philanthropists can be pictured as someone who whips out their checkbook without much notice or forethought and is ready to donate to needs as they come their way. There is more spontaneity when it comes to these donations and oftentimes, this means that they are simply happy to contribute to the organization’s work and do not expect much in return. Responsive Funders Philanthropists who are focused on a very specific cause or field of interest and actively respond to requests for funding within their interests. These types of donors can be good for nonprofit organizations targeting strategic philanthropy because they know the exact guidelines and circumstances under which responsive funders are willing to provide monetary support. This concentrated focus on certain giving areas can be very impactful to organizations in those sectors. Venture Philanthropists Donors who focus on applying venture capital tactics and strategies using hands-on involvement and mentorship fall under venture philanthropists. They are much more likely to be involved with the organization in more ways from day-to-day tasks and with setting goals for long-term success. Venture philanthropy is looking to grow organizations. Results-based Philanthropists Those who want to fix the problem and not just treat the symptoms are results-based philanthropists. These donors work with individuals involved on all levels from nonprofits to government sectors to make an impact. They are more likely to invest a lot of time in researching nonprofit organizations before taking any on as a philanthropic project. This is because they have a desire to understand all aspects of the problem before setting and tackling achievable goals. Collaborative Funders Those who understand the need for the involvement of multiple parties to work towards a common goal are collaborative funders. This could involve bringing together family foundations, corporate philanthropists, etc. to share the responsibilities of supporting a cause based on their ability. These types of philanthropic setups involve diverse individuals concentrating on specific tasks to accomplish an overall goal.  About a decade ago, a number of the world’s influential billionaires came together to share ideas on how they could motivate other wealthy people to contribute their wealth to philanthropy. This was the inception of “The Giving Pledge,” a campaign that encouraged the rich to dedicate at least half of their wealth to philanthropic efforts.
Background "The Giving Pledge” was a campaign that was discussed at a private dinner meeting in May of 2009 that consisted of some of the most well-known billionaires like David Rockefeller, Michael Bloomberg, and, reportedly, even Oprah Winfrey. While this meeting was kept secret when it occurred, a year later, its hosts, Bill Gates and Warren Buffet announced the launch of the modest campaign. This desire for change was fueled by the lack of donations from the billionaire population. The call for action was not too specific or demanding. It requested that billionaires pledge 50 percent of their fortune to philanthropy. Those who made the pledge would not be bound by requirements meaning they could give to any causes they desired through any method and without time constraints, although donations to political parties would not count. Gates and Buffet hoped that the relaxed guidelines would serve as a strategic choice to get more billionaires to commit to donating. At its start, 40 of America’s wealthiest individuals signed up for the commitment and it has since grown to over 200 of the world’s richest individuals, couples, and families from 25 different countries. The pledge works by having those who sign up issue a public commitment towards its mission. Those involved are able to independently work on their contributions and are then invited to an annual gathering to celebrate, share, and learn from one another as well as experts. These billionaires come from different backgrounds and have diverse philanthropic interests ranging from issues including poverty, education, health, research, environmental sustainability, etc. A full list of pledge signatories can be found on the pledge’s website. It also includes the public pledge that each signatory released at the time of commitment. Here are just a few of the pledges made:
While the purpose of the pledge was to encourage billionaire’s to contribute their wealth, the sentiment of giving generously is relevant to capable donors of any financial status. For some insight on strategic giving, visit our blog for information!  Estate planning requires juggling a variety of decisions involving property, money, and entities. When trying to decide what happens to your valuable possessions, many will usually set aside something to loved ones while also dedicating some of their fortune to a good cause. Those interested in pursuing a philanthropic option can do so by seeking out nonprofit organizations whose missions closely align with your values. When these plans are incorporated, it is known as “planned giving.” The trend used to be that many philanthropists would leave behind a trust or a foundation for giving to occur after they have passed. The responsibility then falls on heirs to ensure organizations are being properly funded and your wishes are being carried out. But, this tradition has become a way of the past. Many are choosing to give actively throughout their lives rather than saving everything for later. There’s plenty of good that can come from choosing to engage in philanthropy now rather than the future but it is understandable that many considerations come into play when deciding this. Pros and Cons of Giving Now and Later
 One of the considerations that comes up when you decide to participate in charitable giving is the topic of anonymity. Depending on the type of person you are and the effects you are looking for, giving anonymously may seem like the way to go rather than making your donations well-known to everyone. There’s arguments for each side and ultimately, the decision is up to you. Before making your next philanthropic move, weigh the advantages and disadvantages of giving anonymously and publicly.
Giving Anonymously There are plenty of factors that go into making the decision to be anonymous in your giving. These can include your background, the organization you are supporting, etc. Here are the advantages and disadvantages associated with giving anonymously: Disadvantages
Advantages
Giving Publicly Disadvantages
Public donations are preferred by many organizations and offer them more opportunities and benefits than you may realize. For example, the more donors they are able to publicly include on their list, the more likely they are able to grow their work with the community. Not only does your donation help fund their projects, you name attached to a charitable gift can be used to help elevate fundraising efforts, create compelling stories, and help the organization build a relationship with you as a donor.  Joining the board of directors for a nonprofit organization can be a major responsibility as well a major source of pride and excitement. Guiding a nonprofit and being along to see it obtain its goals is a worthwhile experience. But there are a few things to consider before taking on this role. Nonprofit board members should be actively involved with the organization and are expected to contribute financially in some shape or form whether this be through giving your time, dedicating your skills towards advancing the organization, or donating money. Before making the decision to become involved with a board of directors, make sure you understand the commitment you’re making as well as the organization you are serving.
1. Can I see a copy of your latest IRS Form 990? A form 990 is the form submitted to the IRS to determine whether or not a nonprofit organization can maintain its tax-exempt status. This form will include all of the nonprofits income and expenses including any money they have awarded through scholarships or grants, salaries of the organization’s five highest paid employees, donations, fundraising, etc. As a potential board member, you can use this form to evaluate the financial health of the nonprofit and whether its spending and saving habits fall in line with your expectations as a future member on their board of directors. Most nonprofits will make this form available to those who request it and some may even be found online through sites like Guidestar. 2. How much will I be expected to give each year? When you join a board of directors for an organization, it is usually expected that members will make some sort of personal contribution to the organization themselves. Board giving is a common way to demonstrate your support to the organization you serve and also positions you as a role model in the community for other donors. Expectations can vary based on the nonprofit you are working with so be sure to get informed before getting involved. 3. How much will I be expected to raise each year? Fundraising should always be one of the top priorities for board members. This is one of the key ways many nonprofit organizations raise enough money to accomplish their goals. Board fundraising can look like a variety of situations from creating connections with your own circle and identifying prospective donors to helping with fundraising initiatives and requesting gifts. It also includes bringing in resources, support, and skills into the organization.  Making philanthropic donations is not just for the rich and famous. Anyone can easily get involved with contributing to their communities and causes that they care about. Giving circles are becoming a popular way for everyday people to give back. Through giving circles, those that want to make an impact are able to be a part of a giving and decision-making process. Giving circles have been around for many years and are becoming increasingly well-known and used. In fact, the number of giving circles in existence have tripled in just the last decade alone and is expected to grow to 350,000 people in the next five years. So what is a giving circle and how might you get involved with these communities of giving? It is easy to get involved once you’ve decided you want to help out. Here’s all you need to know when it comes to your own journey in philanthropy.
What Is a Giving Circle? Giving circles are charitable giving groups made up of friends, family, coworkers, or other members of a community. These circles can be made up of a handful of people or up to thousands of people. The main purpose is for them to serve as a way for a group of people to come together, pool their finances, and decide on a cause to contribute their funds to. The giving circle model is infinitely flexible and has no limitations when it comes to membership. Each individual giving circle decides for themselves how much each person will contribute, how often to meet, and what to give to. This means they are accessible and easy ways for anyone interested in philanthropy to get involved. How Do Giving Circles Work? Giving circles operate in a variety of ways depending on the individual goals and make up of the group. However, most will function based on similar steps in order to get their charitable contributions into the community. It begins with a group of any number of people who have decided they want to come together for philanthropic reasons. This group then determines the amount of funding they are wanting to give to their community. Next, giving circles will discuss what the group’s values, interests, vision, etc. are in order to determine what issues and organizations to fund. A grant-making process is then created, and financial logistics are sorted out. Finally, the group makes their contribution before setting up additional meetings or community engagements. How Do Giving Circles Invest Their Money? Giving circles choose to invest their money based on the decision-making of the group. This is where financial logistics are determined. Individuals in the group come together to decide their funding criteria which can be based on creating applications, deciding who qualifies, and how to report this. There’s a variety of ways to go about the actual investing. Some organizations prefer to vet and vote together while others pool funding without any grant approval process. Some larger giving circles will even create a committee that does most of the vetting and sends out information to members. How Can You Start a Giving Circle? Starting your own giving circle is an option if there aren’t any created that you’re interested in. The bulk of creating a giving circle involves forming your group of philanthropists and figuring out what your commitments and values are. The United Philanthropy Forum gives a great ten step summary of how to start your own circle and Amplifier offers a downloadable document for giving circle essentials. From start to finish this will involve building your membership, deciding on contributions and grant process and following through so organizations you have chosen are getting their funding. Remember to revisit your short- and long-term goals often and take feedback from those around you to continuously improve your giving procedures. Where to Find a Giving Circle To Join There are plenty of giving circles that are already established if you’re looking to join one. Many are open to membership and have local contacts for you to reach out to. The great thing about this is that there is already a wide variety of causes and organizations to choose from which means you can find one that aligns with your own passions. Use these resources to find a giving circle to join:
There are endless possibilities when it comes to giving circles so take your time and search through directories for what interests you or start your own to get your own social circle mobilized in giving. These circles are a simple way for everyone to get involved regardless of financial background. Join this movement in bringing about change in the world.  There are many routes to take when you are a philanthropist running your own private foundation. When it comes to registering your organization, different factors may come into play when deciding if you are going to register it as a Limited Liability Corporation (LLC) or a 501c3. Some well-known philanthropists like McKenzie Bezos and Mark Zuckerberg have chosen not to register as a 501c3 but instead set up their organizations as an LLC foundation.
There are a number of reasons why one may choose to to use one method of setup over the other. Before deciding which type of foundation you would like to use for your philanthropic endeavors, look into the benefits and considerations of both. 501c3 Foundation Organizations that register for the 501c3 are commonly known as charitable organizations which are used to help the general public. These organizations strictly serve the interests of the public which means no private shareholders or individual’s can benefit from the organization’s earnings. If you are open to the idea of others making charitable contributions to your foundation, you will need to setup a 501c3 foundation, otherwise their gifts will not be considered tax-deductible. The 501c3 is what many nonprofit organizations strive to adhere to in order to be tax-exempt. This is one of the major benefits of registering as a foundation rather than a LLC Benefits related to tax-exemption include:
Those that choose to register as a private foundation should also keep in mind that there are strict guidelines in order to keep their tax-exempt status. Organizations that are registered as a 501c3 tax-exempt organization need to do the following to maintain their status:
For more requirements that 501c3 organizations must follow, reference the IRS website on exemption requirements. Contact us if you would like more information on filing for 501C3 status. Limited Liability Company A limited liability company operates more within a business structure. This means that there are roles like managers or directors within the organization, flexibility due to less rigid requirements, and limited liability meaning members are not held liable for a company’s debts. This vehicle of charitable giving comes with a number of advantages. Many philanthropists have begun seeing this as an ideal opportunity for gift giving because it offers them much more control and freedom than the traditional route. Benefits of a charitable LLC include:
Overall, the LLC model avoids many of the restrictions that would be in place for a foundation on both state and federal levels making it flexible for philanthropists to engage in activities related to giving and investing that would otherwise be prohibited. However, unlike traditional nonprofit organizations, an LLC does not give you a large tax deduction until the money is donated. In addition, any money the LLC makes is taxable. Contact us if you would like more information on filing to start a LLC Foundation. Alternative Options There are alternatives to those who are looking for a blend of both or just looking for another way to give to charitable causes.
Please be advised: Blackbird Philanthropy Advisors is not a law group. We do not offer legal advice. We provide general information to help lead you on a course of action. Blackbird Philanthropy Advisors will provide a referral to you if you wish to have additional assistance on legal matters related to your nonprofit application, entity formation, and bylaws.  Find Your Partner
There are a couple ways you can go about finding a good philanthropy to partner with. While your Corporate Social Responsibility (CSR) team is great for helping with the search process, make sure you are contributing your own thoughts and opinions as well. At the end of the day, the nonprofit you choose to partner with will need to align with your own missions and vision. If your CSR team is able to present you with a list of potential philanthropy partnerships, that’s great! But make sure to do the work on your own end to make the final call. Base your decision off of research, respected opinions, and reviews. You can even take a page out of the handbook of larger foundations when it comes to finding a good partner. Take a look at companies like Microsoft, The Global Fund, or LUSH for ideas and inspiration for your own charitable partnerships. Build Genuine Relationships There are plenty of steps a corporate foundation can take to create meaningful relationships with a philanthropy. Start by establishing consistent and continuous interactions with your corporate philanthropy. Prioritize the nonprofit as you would your own company. This means being respectful, open to ideas and feedback, and responsive. Everyone has a busy schedule. It makes a difference to know they will receive follow-up whether it is an answer to their questions or a quick response letting them know you have received their message and will get back to them as soon as you are able. There are plenty of other ways to show your nonprofit that you are there to support them and dedicated to helping the organization. While you are the one that is making contributions, be sure to show them appreciation for the work they are doing in reaching out to the community and working on projects that align with your vision. Check in often enough to show them you are interested in the work they are doing without becoming overbearing or hovering. This could mean monthly phone calls to ask about what the nonprofit has been working on or even occasional visits. On top of your enthusiasm, make sure to bring your appreciation with you. Introduce yourself to those working in the office and remember them by name. Little things you do can make the nonprofit you are working with feel seen, supported, and appreciated rather than feeling like another name on the list of people you donate to. Considerations to Keep in Mind Remember that nonprofits may run in a completely different way than your corporate business does. There will not always be enough resources or staffing available for all of the projects you’re excited about. Keep an open mind when working with nonprofit organizations. More often than not, those working at the nonprofit organization are volunteering time out of their day. For example, staff members may be late to meetings or have tight schedules to work around. Do not take this to heart. Many of these individuals may hold jobs in addition to their involvement in the nonprofit and their schedules could vary daily. Your personal time commitments to the nonprofit organizations can also help alleviate the commitment imbalances, especially if you plan on investing your time and resources for the long-term. Showing nonprofit organizations that you’re dedicated in supporting them in the long run not only shows your passion and commitment but also helps form trusting relationships between corporate foundations and the philanthropy. When to Rethink Your Relationship Once you have an understanding of the organization you’ve chosen, you may find that the partnership is not as sustainable as you originally hoped. There can be many reasons behind this. Maybe you are not receiving an equal level of respect, are running into creative differences or are dealing with issues concerning your own business. Your first action should be to try to mend the situation before retracting your support. Some things can easily be fixed through re-strategizing, brainstorming, or through a candid conversation. If you find that you do need to withdraw your corporate support, be transparent with your philanthropy. If possible, create plans to ease the transition for them. This might mean gradually reducing your contributions over a period of time rather than pulling out immediately or setting up other methods of support. Since you have personal experience working with the nonprofit, you will have insight on what they might need to succeed. For example, if they have been struggling with fundraising, you could offer to fund a consultant for their organization. Or, if they are having a hard time engaging their audiences, you could look into freelance content creators to help boost their social media presence. Making the decision to end a partnership can be difficult and is often unexpected. Take an active role in providing as smooth of a transition as you can for the nonprofit.  As a company, you can do plenty to make your business a more appealing place to work, and you can do even more to enhance the loyalty and satisfaction of your current employees. A Harvard Business Review article emphasized the importance of “reinforcing the right reasons for staying”. Creating conditions compatible with an employees’ values for working and living can include altering the work environment, providing more recognition, or investing in training. Tackling the aspect of an employee’s offer is also a way to go about instilling company loyalty.
While salary may be an obvious factor on the mind of employees, it has been shown in recent years that offering a valuable benefits package is just as important. People like to feel appreciated, wanted, and supported, and will be more likely to remain with your company for years if they feel secure in their position. One way to help your employees to feel more secure and loyal to your company is by offering additional benefits, something many professionals will give up higher salaries to receive. Please note, we are not a law firm or accountant firm. This is for informational purposes only. For information on tax and legal matters, we suggest consulting with an attorney or CPA who is knowledgeable about your industry and needs as an employer. Non-Taxable Fringe Benefits Fringe benefits are additions included in an employee’s hiring package on top of the compensation. Examples of these can include a variety of insurances, employee discounts, stock options, tuition assistance, paid lunches, fitness reimbursements, or even pet-friendly work environments. According to the IRS, any fringe benefit you provide an employee is taxable and needs to be accounted for. However, there are exclusions to this that companies can focus on to bolster an offer package and keep employees loyal, happy, and retained. These are known as non-taxable fringe benefits. Non-taxable fringe benefits are particularly attractive to employees since these include employer-provided benefits that they won’t have to pay taxes on. Offering non-taxable fringe benefits helps your employees to keep a larger portion of their salaries while still receiving all the support they need, helping them to lead more financially secure and happy lives. De minimis (minimal) benefits De minimis benefits are considered tax-free because they are items or services offered by the employer that have so little value it would be difficult to account for. Under this section of IRS code, employers would be able to incorporate things such as occasional meals, snacks, and company parties, or gifts like tickets to events or holiday gifts. While these added benefits are minimal, hence the name, they make a big impact on office culture and employee morale. When paired with recognition and regular feedback, it was found that companies had 31% lower voluntary turnover than those with ineffective programs. Dependent care assistance Taking care of your employee’s family helps you take care of your employee. Childcare and dependent assistance ranked second on benefits that employees could not live without. Employers are able to cover the first $5,000 of dependent care assistance. This applies in a variety of situations and can cover children under the age of 13 as well as children or spouses who cannot mentally or physically care for themselves. Educational assistance Building new skills or earning degrees is a benefit that can attract and keep employees. The IRS allows an employer to make up to $5,250 in tax-free contributions each year to an employee’s educational expenses. This could mean covering tuition, class fees, or learning materials like textbooks. The way the funds are distributed is up to the employer, for example, you could give employees money in advance to cover classes, give employees money as reimbursement after classes are completed with passing grades, or split the money by giving them half the funds to start with and the remainder after successfully completing classes. To keep these benefits non-taxable, these funds are only for the employee to further their own skills or in education only for work. This means it doesn’t cover family members. While it can’t cover the children of your employee’s high school education, it can be used to help your employee achieve their own diplomas. In addition, educational assistance can also be used retroactively to pay off loans that employees may have taken out in the past for school. This can be done by adding money to each paycheck that is used specifically for student loan debts. Athletic facilities Employee wellness happens outside of the workplace as much as it does in the workplace. Access to exercise benefits ranked in the top 15 most popular benefits desired by employees. Unum, a benefits provider, found that a third of employees desired company-paid gym memberships or access to a fitness center on the job site. While paying for memberships can come out of your employee’s paycheck, building an in-office gym is a non-taxable option that companies can look into to boost their appeal. In-office perks come at no cost to employees but are shown to be desired by almost 80% of employees when looking at job benefits they want. Employee discounts Partnering with other companies and service providers to offer discounts to retailers, hotels, amusement parks, etc. is enticing to include in an hiring package. These discounts can range up to 20% off and may apply to discounted Disney World tickets or contribute to their next Apple shopping trip. A study found that more than a third of employees who didn’t already have company discounts wanted it. Employee discount programs can go a long way and it is easier for companies to take on these low cost-per-employee fees to curate discounts that their work staff will be interested in. A complete list of other benefits excluded from income taxes includes:
There are other benefits you should take into consideration if your goal is to create a world-class, competitive workplace that fosters growth and loyalty and allows you to recruit the most talents and qualified team possible.
Please note, we are not a law firm or accountant firm. This is for informational purposes only. For information on tax and legal matters, we suggest consulting with an attorney or CPA who is knowledgeable about your industry and needs as an employer. Learn more about how you can support your employees and help them lead happier, healthier, more prosperous lives by visiting Blackbird Philanthropy Advisors online today and checking out our blog!  Volunteers contribute greatly to nonprofit organizations. According to the 2018 Volunteering in America report, 77 million people volunteered in the United States. These volunteers make significant impacts on the organizations they are serving and doing volunteer work not only benefits others, it benefits the volunteers as well. Many companies have taken the initiative to encourage workers to volunteer in their time off or have dedicated days to put towards service events. But, what can your company do to encourage employees to continue serving their communities while ensuring their safety during the COVID-19 pandemic?
COVID Effects on Volunteering COVID-19 has restricted the work people have been able to participate in. To prevent the unintentional spread of the virus, gathering is discouraged and attending in-person volunteering is not as feasible as it was before. Many are choosing to stay home to protect themselves and their families from being exposed. This means that communities nonprofits serve will start seeing a lag in service or decreases in resources available. There are many reports that nonprofits are struggling to keep up with the workload due to the decrease in volunteer numbers. For example, Hunger Task Force, Inc. doesn’t have enough volunteers to help pack food boxes for seniors living in the Milwaukee area. COVID-19 has changed the way we go about our lives, but many have found ways to continue supporting their communities through volunteer work while staying safe. Socially Distanced Volunteering Opportunities Safe volunteering can take place at home. There are plenty of needs that still need to be addressed even in a pandemic.
Virtual Volunteering Opportunities Virtual volunteering events have also emerged in the past few months. These events can be just as beneficial as those that are taking place in person.
Group Volunteering Under Safe Conditions Nonprofits looking to host in-person events still have the option to do so by taking advantage of outdoor spaces. Some have invited the community to a local park with socially distanced work stations for each household to work on service projects like blanket making, card writing, or food or toy collections. The key guidelines to keep in mind are to maintain distance, sanitize often, ask those who show symptoms to stay home, and implement tools so contract tracing is easy in case there is an exposure. While the pandemic has shut down many activities, it’s important to continue encouraging acts of service. Especially in times of global crisis, these volunteer hours can end up being more impactful than before. Whether your company decides to look into remote volunteering projects or seek out safe and socially distanced opportunities, the work provided will make a difference in the lives of others. Corporate organizations looking to make an impact in the nonprofit sector can help out in a variety of ways. Many companies will offer to sponsor events or donate when needed to organizations that are looking for funds. However, there is a method that corporate philanthropy can adopt if it is looking to be more proactive in their giving. Creating a grants program is a great way to reach out to nonprofit organizations in need. Grants are just one of the many funding options for nonprofits to raise enough money to sustain their organizations and help their communities. By creating an ongoing grants program for nonprofits to apply to, corporate foundations can ensure the funding is going towards a cause that aligns with their values, goals, and mission.
Do Your Research & Assess Your Resources The first step in creating a grants program is to assess your company. You will want to examine your company’s finances to determine whether you are in a place where you can create a grants program. It would not be a good idea to offer the money without being able to back it up. Carefully prepare for your grant program and make sure you have specific amounts set aside to contribute. Take time to investigate the needs of the community and research your philanthropic interests. You can reference the Corporate Grants Guide to see what other companies are involved in and to gain ideas. A key component of making a grants program is to ensure there is a need for it. You can start by looking locally and getting in contact with experts in the area. For example, if you are wanting to make an impact with arts in the community, try reaching out to local theaters or art learning centers to gauge their need. These sources can inform you about the funding they currently receive and redirect you to other organizations in need if they are getting along fine with funding. Integrate Your Mission and Vision When looking to create a grants program, keep your company’s mission and vision in mind. By tailoring your grants program to the goals you have, you will more easily be able to attract specific projects and work in issue areas that you are interested in. This gives your company more control over how the money is used as well. For example, you may specifically want to provide arts funding for afterschool programs. By holding your mission and vision at the center of the creation process, you’ll be able to come across organizations that align with your strategy, core values, and goals. Set Up the Application Structure for Your Grant Once you have determined what you are wanting to fund, you are able to start setting up the various components of the program. This includes creating an application, guidelines, and requirements that nonprofit organizations need to meet in order to apply for your grant. You can adapt your application using a template or create a completely new application. Usually, these packets contain instructions, a cover sheet, grant proposal, and budget information for the applicants. Instructions Include clear instructions for nonprofit organizations to follow. These need to outline the deadlines you have set for applying as well as the materials they need for submission. It also helps to provide tips that touch on what you’re looking for in an application. For example, you can suggest researching your company and its philosophy. Cover Sheet Cover sheets are used to provide you more information on the nonprofit that is applying for your grants program. This should include the date, important information related to the organization like their legal name, address, website, executive director, and a good phone number. Provide space on the cover sheet for the nonprofit to also include their tax identification number as well as more background on their founding, mission, staff, and budget. This is also a great section to ask about information you would be interested in before awarding them grant money. You can include space to ask about the organization’s objectives, programs, and accomplishments- anything that would help you with your decision-making. Funding Determine the type of budget form you will use as well as any additional attachments you may need. Your decisions can be based on things such as financial information, a budget, or the income and expenses of the nonprofit organization. Spread the Word The last step is to share your newly created grants program with everyone. Get the word out there so that nonprofits know there is funding available. You can also use grant databases like Foundation Center, Grant Station, or others to share information. These sites can help you organize your grant based on your areas of interests, making it easier for nonprofits to search for your program.  The past year of events have taken a toll on people all over the world. The COVID-19 pandemic has affected individuals, families, and businesses in heartbreaking ways. One positive that has emerged, however, is the kindness that has been shown during this chaotic time. Areas require donations or aid and there are many nonprofits and charitable organizations that work endlessly to provide aid to those who need it. Their work takes some of the burden off of those that are struggling during these unprecedented times. Philanthropy is a powerful way to aid the work that so many are already doing. Those that are eager to dedicate themselves to the cause and respond to coronavirus can do so in a number of ways. The first step to take is to determine the organization or charity that you are looking to contribute to. These organizations could be ones that you regularly work with/ donate to or it could be ones that are close to your heart in other ways. These organizations could be working with certain populations like those living in urban areas or organizations with specific goals of helping remedy housing or food insecurity. Monetary Contributions One way to directly help those in need is by giving money. The pandemic has brought about financial pressures for everyone, especially nonprofits working to meet the needs of the community. Financial donors can make a big difference during this time by providing the means for organizations to buy medical equipment, supply food, etc. Just a few of the nonprofit organizations working on the frontlines include: Those looking for general COVID-19 funds to donate to can look into GlobalGiving, GoFundMe’s COVID-19 Relief Fund, and The New York Times’ Neediest Cases Fund. Where To Start Not sure where to start? There are even organizations that help research charities and nonprofits. While it’s important for you to vet potential organizations yourself, these entities help with the legwork and provide you with a base level of knowledge. Explore websites like GuideStar, Charity Navigator, GiveWell, and CharityWatch for more insight. These organizations have rating systems, gold standards, and grading scales in place to help people be informed donors. Outside of online research, look into charities and nonprofit organizations that those around you care about, for example, the places your alma mater, your pastor, or your employers have donated to. Finding connections within your own circle usually leads to helpful ideas since your personal values will usually align more closely with those that you surround yourself with. Volunteer Time Volunteering time is just as valuable as contributing money or supplies. Companies that have employee volunteer programs can look into organizations where more volunteer labor is needed. Many organizations are short handed due to health and safety considerations. A few volunteer opportunities to look into are:
Socially Distanced Volunteer Work Nonprofits are also working to ensure that volunteers are safe, for example, activities like meal delivery can be done in a contactless environment. Many activities like making care packages, preparing food, and working in pantries have been modified so volunteers are protected. Many projects have coordinated delivery routes or even worked out a drive-through system to limit the amount of contact people have with each other. In addition, those that are still wanting to donate time without having to be at risk of any exposure in a volunteer setting can look to online opportunities. Those with language experience can spend time getting involved with Translators Without Borders, a nonprofit organization working to make information accessible to diverse populations. It is even easy to volunteer using a smartphone. Organizations like Amnesty International’s Decoders Initiative requests help with flagging human rights violations on the internet. This involves dedicating time to sifting through digital content, documents, satellite data, etc. to help identify acts of injustice. Technology these days makes it simple for anyone with an internet connection to help out a cause and join global networks of other volunteers. The work that you and others do could help fill an important gap.  The COVID-19 virus has rapidly changed the way we live our daily lives. Businesses and nonprofits have been struggling with the economic impact and additional hardships brought about by the pandemic. There are a variety of relief funds available for businesses that need extra help during this unprecedented time. Recently passed legislation included $900 billion in aid to those affected and many foundations have set aside COVID-19 specific funding available to small businesses, nonprofits, and individuals.
CARES Act and Pandemic Relief Bill The new stimulus package passed just before the holidays included relief and aid to individuals and businesses who were awaiting news of the next stimulus package. This relief bill contained renewals of a variety of funding offered through the first stimulus package and includes a variety of aid for specific populations and small businesses/nonprofit organizations also. COVID-19 Economic Injury Disaster Loans The CARES Act includes $20 billion for EIDL grants (economic injury disaster loan program). These grants are meant to provide economic relief for small businesses and nonprofit organizations that are experiencing a temporary loss of revenue and include aid for businesses in low-income communities. EIDL funds can be used to help cover normal operating expenses including health care benefits, rent, utilities, etc. Entertainment and Theatre Venues $15 billion of CARES Act funding has been set aside to help entertainment and theatre venues. This is known as the “Save Our Stages” Act and includes live venues, independent movie theatres, and cultural institutions. Organizations will need to have experienced a 25 percent revenue decline compared to same quarters from previous years. These allocations can include up to $10 million in aid for each organization. The Small Business Administration (SBA) is currently working on applications which will be posted on grants.gov and will host a pre-application informational webinar beforehand. Paycheck Protection Program (PPP2) An additional $285 billion in loans was approved under the Paycheck Protection Program. This funding is available to those with fewer than 300 employees that experienced at least a 25 percent decrease in revenue from quarters from previous years. $12 billion of this funding was specifically earmarked for minority-owned businesses, ensuring that many diverse and low-income communities will receive the aid they need to sustain their businesses. Applications for Paycheck Protection Program loans are currently being accepted by the Small Business Administration (SBA) from participating community financial institutions (CFIs) and lenders. Click here for access to the full text of the bill. Grant Funders and Foundations For those looking for funding outside of federal opportunities, there are many grant funders and foundations who are providing aid to small businesses, nonprofits, and individuals. Small businesses, nonprofit organizations, and individuals who are looking for a resource list of available grants and funding opportunities can utilize the following websites for their searches:
Small Businesses
Nonprofit Organizations
Individuals
 Going green is the way of the future and this shows. Not only does sustainability in business help the planet, it is also shown to help the business. According to The Natural Marketing Institute, consumers are 58% more likely to buy products or use services from a company when it is conscious of its environmental footprint. Establishing eco-friendly practices within a business can lead to a wide range of benefits on top of attracting customers. Companies with sustainable ideals reduce the costs of operations, qualify for eco-friendly incentives through federal tax credits and energy companies, and have higher employee retention rates with surveys showing that 52% of employees want their companies to be more environmentally aware.
Businesses That Use Sustainable PracticesIt’s possible for any company to build a sustainable business regardless of size. Implementing a green business model only takes innovation and dedication and is feasible for small companies with a handful of people. Examples of small to medium sized businesses that can incorporate green practices include eco-friendly retailers like West Paw or Thread, organic food companies like Galactic Pizza, or even green housekeeping services. These types of companies are focused on reusing materials, using environmentally friendly packaging, implementing renewable energy, and sourcing ingredients from responsible places. Other companies are focused on energy consumption and reducing their carbon footprint. 1&1, a web hosting company has lowered heat loss in their data centers by 20% and also purchased Renewable Energy Certificates (RECs) that go towards funding renewable energy projects. The Basics of Implementing Green Practices In Your Company Implement Environmentally Friendly Lighting
Reduce Paper Use
Minimize Single Use Products
Be Conscious of Device Use
Ready to Take it to the Next Level? Does your company have all your entry-level “going green” bases covered? Try taking it up a notch by investing in some of these suggested practices.
 Written By: Joana Breidenbach for the BMW Foundation Twenty Thirty blog
Published on Twenty Thirty on: June 19, 2020 The world as we have known it has suddenly come to a standstill. In this eerie pause we can see the gap between the habitual world we have inherited, including its many dysfunctions, and a possible better future: a society and an economy that are more equitable, healthy, and respectful of planetary boundaries. But for this transition to happen, we need a new type of leadership. We need people who have the right mindset and skills to navigate the complex transformation from the national-industrial to the global-digital age. Based on my own experience with new self-organized forms of leadership and collaboration in a social business, I will outline a few lessons learned over the past five years. These are, I believe, highly applicable to the volatile and uncertain post-COVID-19 era and can provide some guidance for organizations as they navigate the current transformation. 1. The coronavirus stress test has hurt impact businesses But before diving into leadership, let’s look at the current situation of many social entrepreneurs and impact businesses in Europe. Many of our organizations and companies are struggling under the coronavirus stress test. We are confronting a paradox: For the last decade, an increasing number of social entrepreneurs have developed agile and innovative answers to ecological and social challenges. Their market-based business models promised to make organizations not only more sustainable but also more responsive to the actual needs of clients and customers. But in the current crisis these very qualities are backfiring. With the economy in semi-lockdown, many goods and services provided by these organizations have broken down and with them all of their revenue. One prominent example is Dialog im Dunkeln (Dialogue in the Dark). This well-established social business based in Hamburg, Germany, which enabled sighted people to experience the world of the blind, had to close its doors after losing 90% of its revenue. Like most social businesses aiming to break even, the organization does not have the financial buffer to survive such a revenue loss. It also does not fit the criteria of the rescue packages provided by the German government, as non-profit social businesses are not eligible for commercial loans. Thus the crisis seems to be benefiting more traditional NGOs which rely on long-term grants from foundations or public institutions, few of which have withdrawn their support. Yet the more dynamic and agile initiatives, which rely on short-term funding to respond quickly to acute needs (such as the 2015/16 European refugee crisis or COVID-19 itself) are finding themselves in a much more difficult situation, as most funders are hesitant to invest new money. The current situation is dangerous, as many new digital-savvy, agile, and dynamic social businesses, well suited to tackle the “wicked problems” we are facing, are in danger of falling through the grid of both the market and the rescue measures. If we want to create a dynamic impact eco-system, we urgently need to provide tailored support to these new kinds of NGOs, social and impact businesses. 2. Navigating complex, messy environments requires new leadership competencies Not all impact businesses are suffering. Those with a strong digital component and/or a for-profit business model are very well positioned to thrive in the new environment. These include innovative and often local solutions in essential industries like energy, food, and mobility. They are based on antifragile systems (Taleb), which means they are decentralized, open source, environmentally friendly, and capable of repair and change. For these promising approaches to succeed in an increasingly messy and unstable world, we need new types of leadership. The hierarchical command–and-control style of running a business may have been suitable for the more predictable, standardized industrial world. But it’s proving too rigid, slow, and wasteful of talent for the current era, which is not only much more complex, but operates under the looming threat of climate collapse and societal and political fragmentation. In order to manage this fast-changing and uncertain world, companies and organizations have for some years tried to become more agile and responsive. They have flattened hierarchies, abolished fixed role descriptions, and introduced remote work. COVID-19 has accelerated this trend, as #homeoffice has suddenly become a mainstream experience. With this shift towards greater autonomy and self-management, founders and leaders are confronting new questions: How can I manage a decentralized team? How can I communicate effectively in a network? How can I motivate my employees and control the quality of their work? Decentralized and self-managed teams require very different leadership skills. Leadership functions such as strategy development, recruiting, or quality control are suddenly no longer concentrated at the top but distributed throughout the team. This requires a very different flow of information as well as different decision-making processes and control mechanisms. But, as I learned in my own company, if these reorganizations only touch on external structures and processes, they are doomed to fail. When I stepped down as CEO and introduced self-management instead, we learned that transformation, in order to be sustainable, has to be much more holistic, demanding new inner competencies of every team member. Why do we need to include our inner beings – our feelings, needs, values, and mindsets – in the change process? Well, in the wake of dissolving traditional structures, we are losing our habitual external markers for security and orientation (the boss, the rules, etc.). But as security and stability are basic human needs, we have to find them elsewhere: in a volatile and uncertain external world this can only be in our selves and in our relationships. Leaders (as well as team members) need to grow psychologically; they need to know their values, what makes them productive, and how to organize themselves. Lacking formal processes for many situations, they need to communicate much more transparently with their colleagues. And they have to be able to manage the fears and anxieties which will undoubtedly accompany their work. 3. Overcoming burn-out and establishing a wellbeing culture This new focus on inner competencies is all the more important, as many social entrepreneurs and impact executives are already struggling psychologically. Research findings among social entrepreneurship networks and co-working spaces are alarming: Well over 50% of founders and employees report burn-out and depression, up to 75% regularly consume drugs or alcohol to cope with stress. And many pioneers find themselves in precarious economic situations. There are many reasons for this wellbeing crisis: Most founders and executives are tackling grave social and environmental problems. They are highly self-motivated and have a tendency for self-sacrifice, while at the same time operating with limited and mostly inadequate resources. Funders for their part have for a long time focused on reducing overheads, leading to a chronic underinvestment in capacity building in the social impact sector. On top of that, the COVID-19 crisis has increased the stress level in many organizations enormously. All of this leads to a lot of individual suffering and reduced social effectiveness, as organizations built on scarcity and stress are unable to provide healthy services for others. Yet there is hope on the horizon: global initiatives such as the Wellbeing Project are advocating for a new culture of self-care and inner work in the social and impact sector. Wellbeing refers to deep personal development work which leads to wholeness and connection. Practices supporting wellbeing may include meditation, spending more time with family, reflecting on one’s life, or seeing a therapist. These practices lead to better mental health, more life satisfaction, a sense of meaning, and the ability to better manage stress. An ongoing series of articles in the Stanford Social Innovation Review explores this connection between inner wellbeing and social change in detail. I’m personally deeply committed to this agenda. With the support of a diverse range of funders, the betterplace lab is currently designing a program for German social change actors that focuses on individual wellbeing competencies, such as self-inquiry, as well as organizational skills for better collaboration. A new leadership paradigm appears on the horizon: creating thriving businesses whose ultimate aim is not shareholder value but a more equitable society and a healthy planet. For this we need to build human-centric organizations and enable more team members to realize their potential. Psychologically balanced and resilient individuals are well equipped to unlock their creativity in service of the larger mission of our organizations. As leaders, we can inspire our teams to embark on this new path, role model the new values, and support our employees to explore and acquire the new competencies needed. ABOUT THE AUTHOR: Joana Breidenbach Joana Breidenbach (@joanabp) is founder of betterplace.org, betterplace lab, and The Future of Work needs Inner Work. She is deeply interested in digital-social innovations and inner work and also invests in meaningful startups.  The Board of Directors of a nonprofit organization is tasked with the responsibility of considering, discussing, and voting on the affairs, actions, and decisions of the nonprofit. Being a member of the board can allow you to have some say in how money is spent, where resources are allocated, which steps the nonprofit will take next, and much more. If you are particularly interested in or dedicated to the work being done by the nonprofit, working on the board can allow you to make an impact on a cause you care about.
While some nonprofits are desperate for board members, and will happily take volunteers that are willing to dedicate their time and energy, others are more selective and require potential board members to prove themselves before being considered for a slot at the table. If you have found a nonprofit that you feel passionate about, and want to become more involved by joining their board of directors, here are a few pieces of advice to keep in mind:
Want more tips, tricks, and advice on living a philanthropic life? Visit Blackbird Philanthropy Advisors today, and be sure to visit our blog for more information.  Creating a thriving and efficient work environment isn’t always about what happens in the office - sometimes, it’s the time you encourage your employees to take off that makes the biggest difference. Offering your employees volunteer time off is an amazing way to get them engaged in the community, can help boost the image of your company, and can help further the mission of your business. What is VTO? Like paid time off, volunteer time off (VTO) policies offer employees the chance to take a day off with pay. Rather than going on vacation or taking sick leave, VTO is for volunteering. Offering paid days off to your employees encourages them to take advantage of the opportunity, and can even help boost employee morale. Most companies that offer VTO offer somewhere between 8 and 80 hours per year, with some even offering employees the chance to take paid sabbaticals to dedicate themselves purely to volunteering. An organization offering VTO can choose just how much time they will allow, and can even dictate which organizations employees should volunteer with to qualify. By requiring employees to volunteer for specific causes and organizations, you’ll be able to direct time, energy, and effort toward a cause that matters to you and your business. Some companies require employees to take at least 8 hours of VTO throughout the year, implementing mandatory minimum volunteer hours for all members of staff. Other companies leave the choice entirely up to the employee, allowing them to request as much or as little VTO as they want. Approving employees for VTO is a relatively straightforward process, and requires little more than a simple scheduling protocol for employees to submit requests for VTO with reasonable advanced notice. What Are the Advantages of a VTO Policy? Some business owners might frown at the idea of paying their workforce to ‘work’ elsewhere for a day, but despite the lost working hours, there are plenty of advantages to implementing a VTO policy in your organization.
Companies that Offer VTO If you decide to begin offering your employees VTO, you’ll be joining the more than 65% of companies that already have these programs in place. Some of the biggest, most well-known corporations are also those with the most generous VTO policies, and more and more professionals are beginning to expect their employers to dedicate a portion of their resources to community and social programs. Here are just a few of the companies that offer VTO to their employees:
How You Can Create a VTO Policy If you haven’t already, now is the time to begin offering your employees paid volunteer time off. Creating a basic VTO policy is fairly simple, and if you already have a PTO policy in place, you will be able to follow its basic framework. Some important details for your VTO policy to include are:
Ready to take it to the next level? These are companies who are going above and beyond and offering an even greater depth to their community service programs:
Want to learn more about making a difference in your community? Visit Blackbird Philanthropy Advisors insights blog to discover much more.  Nonprofit sponsorships are a great way for companies to give back while also helping to build their brand, but oftentimes, companies struggle to find the right nonprofit to sponsor. Briefly, sponsorships involve the sponsor giving the receiving organization money, goods, or services in exchange for marketing or advertising of some kind. For example, the sponsor may pay the nonprofit, and in exchange, the nonprofit may put the sponsor’s brand name and logo in all advertising for their next event.
Sponsorships benefit all involved, but that doesn’t mean you should accept every sponsorship opportunity that comes along, even if you can afford it. Choosing the wrong nonprofit to sponsor could hurt the image of your brand, so it is important to make the selection carefully. At Blackbird Philanthropy Advisors, we work with business owners to help them make strategic moves for the maximum benefit of all, and have helped countless companies to find the perfect sponsorship opportunities for them. Keep reading to discover a few key things to consider when choosing a nonprofit to sponsor. Company Connection As you begin your search for the right nonprofit, it is important to consider your company’s connection to various causes and organizations. You should be looking for nonprofits whose causes correlate with the work you are doing, the area in which you operate, etc. Sure, you could select a nonprofit doing work you find interesting, but that won’t directly help your brand. The goal with nonprofit sponsorships is to benefit both parties involved, but if you choose a cause that is entirely unrelated to your business, you could end up with the short end of the stick. Nonprofit Leadership When creating a sponsorship agreement with any nonprofit, it is important to know a little about the people that are running the organization. Sometimes, business owners discover nonprofit sponsorship opportunities that seem perfect, until they delve deeper into the beliefs or methodologies of their leadership. In some cases, it may be something small about the people associated with the nonprofit that turns you off from the opportunity, and in other cases, the amazing people you build connections with could seal the deal. Sponsorship Benefits While considering any sponsorship opportunity, it is important to look closely at the benefits you are being offered. At first glance, many nonprofit sponsorship seem like they could be highly beneficial for any organization, but it is important to look past the surface to make sure that you are truly a good fit. To ensure you stay on target and don’t miss out on the benefits you are looking for, it is a good idea to have your expectations set from the start. Once you find a possible candidate, communicate these expectations clearly, since knowing what you need from the sponsorship will help your nonprofit partner to fulfill their end of the bargain. Discuss topics like creative say and approval, how to establish public recognition, how you would like your brand represented, and so on. Values & Goals Sponsorship proposals come in many forms, and can include tons of varying information and detail. While looking through any sponsorship proposal, it is important to look out for signs that your company’s values or goals may not align with the proposal. You could, for example, discover that the nonprofit would only want to commit to putting your brand on their events for a few months, while you are looking for a longer-term agreement. If the sponsorship doesn’t align with where you want to go, and where you imagine your company will be in 3, 5, or 10 years, keep looking. If the values of your company and the nonprofit you plant to sponsor don’t coincide, you will be setting yourself up for disappointment right from the start. Potential Impact While you should certainly focus on the positive impact sponsoring a nonprofit could have, looking at the possible negative impact of not sponsoring the nonprofit can be equally as valuable. What would happen to your company if you didn’t sponsor? Would you be able to get the word out about yourself the way a nonprofit could? Will you choose to align yourself with another nonprofit? Would your company image be hurt if you didn’t take the sponsorship? Similarly, consider what impact choosing to not sponsor could have on the nonprofit. Is your company the one most suited to sponsor this organization? Would public perception of the nonprofit be hurt if you don’t sponsor them? Would they be better off with a different sponsor, or would your brand help raise their visibility? Whether you sponsor or not, you will be making an impact, so be sure to assess all your options before you make a decision. Reputation As you search for nonprofit sponsorship prospects, be sure to only seriously consider those with good reputations. It is relatively easy to find out whether or not a nonprofit has a good repudiation, especially since a quick Google will give you all the news and information you could need. Beyond simply researching public perception of the nonprofit, it is also a good idea to verify that they are a registered 501 c3, and that they have all their credentials in order. Audience Many nonprofit sponsorships include the chance to speak at or be featured at an event, which can be an amazing way to spread awareness of your brand. By sponsoring nonprofit events, and having your brand prominently displayed and mentioned throughout, you are showing potential customers the values of your company. Should you discover a nonprofit sponsorship with proposed events, think first about who will be attending and whether or not they would be interested in what your company has to offer. Standing in front of the right audience can spark tons of opportunities, but if the audience wouldn’t be interested in you if you weren’t the sponsor of the event, things can go a bit sour. Assess what kind of people are interested in the nonprofit you are considering, and determine whether their interests overlap with the interests of your customers. Recognition Sponsoring a nonprofit can be a great way to gain more brand recognition, and help your company to stand out from the competition. Alignment with a nonprofit not only boosts your advertising, but it can also make your company seem more appealing to prospective customers. If heightened recognition is the goal, choose recognizable nonprofits with track records of sponsored events. Interpersonal Respect Finally, one of the best ways to determine whether a nonprofit sponsorship is right for your company is by assessing how their staff treats yours. If you feel comfortable around the people running and managing the nonprofit, and your staff has good experiences collaborating with them, this is a great indication that you could create a highly successful sponsorship. Everyone should be benefiting from the opportunity, so be wary of anyone that seems negative, standoffish, or unwilling to communicate. Check out more tips, tricks, and advice for nonprofits and philanthropic organizations by visiting Blackbird Philanthropy Advisors online today! While you’re there, be sure to take a look at our blog for lots more content just like this. |
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