Social Impact InsightsOur blog provides insights for social impact professionals in business and nonprofits. We offer advice on making the greatest impact in your organization by giving clear real-world advice on important topics of today.
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Want your company to be more involved? Great. Ask your employees what they're passionate about. By Tom GimbelFounder and CEO, LaSalle Network@TomGimbel Published by INC. Magazine on February 26, 2016 Over the weekend, I joined about 50 of my employees (that's around 1/3 of the company) at Dance Marathon benefiting Lurie Children's Hospital in Chicago. It's an eight-hour dance fest that raised almost $400,000 for the foundation. My company has participated for four years, and two years ago I decided to make us a corporate sponsor. So what's unique about that? Our involvement with Dance Marathon didn't start with me. It's not my charity. It wasn't my idea; I wasn't involved at all. In fact, when one of our employees started promoting it internally, I was irritated because before we knew it, we could have hundreds of emails floating around for any charity, and that can result in apathy due to saturation. When I voiced this concern to the employee who sent the email, she told me that she wasn't the only one involved. There were four others. Then five. Then ten. You get the picture. So I decided to participate with them, and my kids have joined us almost every year. Last year we had over 30 dancers. This year, over 50. The point is, I allowed my employees to sell me on their passion. Rather than as a CEO, force my passion on them. In almost 18 years, I've never forced an employee to donate time or money to a charity of "mine." I've seen too many company leaders make that mistake and force their employees to participate in something, rather than letting them develop a passion. As a CEO of a high-growth company (doubling sales at least every five years), I ask a lot of my team. They don't have to support my charities. But seeing them get passionate about a charity on their own and working hard to raise money on their own motivates me. It shows me what they are all about -- in their job and outside of it. The ironic thing is, the people who are the most involved in the charity are huge producers at work. They've all been with the company at least four years and they all work hard. I am always a bit skeptical of the employee who wants to only talk about philanthropy, especially when they've only been with a company a few months. But I know that the reason so many employees participated was because it was led by key influencers of our company. Of the four, only one is in management, so it's truly peers leading peers. It's awesome. Now I'm passionate about the cause, which creates more synergy for them and not so coincidentally has helped business, as well. Doing well for others doesn't have to be mutually exclusive to helping your business. So my advice is don't just donate to your own causes; let your employees' passions help guide you. The important thing is giving back, but creating an environment where your employees can lead you is motivating and creates passion.
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Our brains are hardwired to serve. Here is why businesses and their employees benefit from embracing meaningful causes. By Susan SteinbrecherCEO, Steinbrecher and Associates@SteinbrecherInc Published by Inc. Magazine, May 31, 2019 At a recent celebration for Harvard Business School's Class Day, speaker Michael R. Bloomberg, extolled the value of graduates aligning themselves with companies that were deeply committed to philanthropic efforts, stating that at Bloomberg, "...philanthropy gives us a competitive advantage in recruiting and retaining talent -- and it's as good for the bottom line as anything a company can do." Literally translated, the word philanthropy means "love of humanity." By very definition, philanthropy is only philanthropy when it stems from giving without personal gain. It begins and ends with a selfless motive -- that of helping one's fellow man without seeking recognition or reward. Most of us know that charity is its own reward. The true wealth of charity is measured by good deeds, not ego and material gain. That's why many affirm that they get back far more than they give. In other words, what they receive is the joy of love in action, the manifestation of their gift of time or money in such a way as to make a visible difference. Interestingly, good people doing good work experience benefits that go beyond just their contentment in the knowledge that they are advancing the well-being of humanity. A well-known study examined the brain activity of a group of people, each of whom was given money ($128) and asked to make choices about whether to keep the money for themselves or to give some or all of it to charity anonymously. The outcome was fascinating. The participants who gave the money to charity experienced an extremely high level of pleasure. The researchers concluded that, "The warm glow that many donors get from giving to charity involves the same brain mechanisms that evoke pleasurable sensations after sex, eating good food, and using heroin or other drugs." Companies that embrace philanthropic efforts enjoy significant advantages that contribute to the mutual benefit of both management and employees on every level such as: Loyalty and morale rise. This occurs in direct correlation to the enhanced sense of personal engagement and connectedness of the employees since they are proud to be associated with a company that cares and does good for others. Employees experience an increased sense of personal satisfaction. The reward that goes with being part of a meaningful community effort is something bigger than themselves that makes a difference in the lives of others. Team building. This happens at a higher level since all employees are working side by side together towards a common goal. A sense of accomplishment. The collective group can work together to achieve something for the community while serving as a profound team-building event for the employees. We've been taught since we were children that it is better to give than to receive. This Chinese proverb illustrates the intrinsic worth of charitable works: "If you want happiness for an hour, take a nap. If you want happiness for a day, go fishing. If you want happiness for a year, inherit a fortune. If you want happiness for a lifetime, help somebody." What happens when your nonprofit is engulfed in scandal? Or what if you have a board member or highly visible donor who’s reputation is significantly on the rocks? As always, being prepared for crisis and scandal is always the best policy. Every nonprofit leader should know when and how to act in times of trouble. Managing these crises is especially important when it comes to fundraising and mission advancement. Fundraising is all about managing relationships. In times of controversy or not, nonprofit executives should be carefully navigating through their relationships with stakeholders. When there is a crisis, the trust they’ve built along the way will have the biggest impact on successfully wading through the times of murky waters. In general, it is good to have open, honest communication with all of your stakeholders so a crisis doesn’t tip you over the edge but makes everyone come out stronger. If news breaks that a major donor was engulfed in scandal, a nonprofit executive should remain calm and act swiftly with integrity. A solution and plan of action to mitigate the crisis should be immediately ready to go. This includes knowing who to pull into a room for immediate strategy, who to contact first, and who are the best people to carry out the plan. Communicating clearly, concisely is paramount. Your main strategy will need to be disassociating your mission with the person experiencing the scandal. Your core group of loyal stakeholders should continue to feel that you are an organization they can trust. Continue to align their passions and initial interest in the work of your organization with the impact and mission you make in the world. The scandal could, in effect, give you an opportunity to engage your stakeholders in a closer, meaningful way that ignites even more respect and loyalty than before. If you give money to charities and encourage your employees to volunteer, then you should be holding that money accountable. You can start simple to set goals and monitor your impact on the community and your company by starting to track these five measures right away.
Want to go a few steps further? Learn more about the LBG measurement tool. By using the LBG model, measuring your impact from year to year is pretty easy. You track INPUTS (what's contributed), OUTPUTS (what happens), and IMPACTS (what changes). Yes, this takes some work but it's worth it. Why are you are investing thousands of dollars into but not measuring where it's going or what impact you're really making? Think strategically with every gift -- ask yourself why questions and how it will add value to your company and the people who make up your company. Planned Corporate Community Investment programs has many clear benefits.
BLACKBIRD PHILANTHROPY ADVISORS: We are here so you can be certain you're making an undeniable impact on the world around you. Our main services center on starting or perfecting corporate philanthropic giving programs (for both corporate giving newbies and veterans). We work smart and use data to determine trends and impact to help set you on a more strategic path in philanthropy. We also provide public relations, special events work, and corporate communications services so you can make sure the good you're doing is recognized. Our Philanthropy Management option is perfect for companies who dream of having in-house philanthropy experts but who aren't quite large enough to hire a full time community affairs staff member. Philanthropy management can also be a good addition to your existing marketing teams and can add an expert layer of hands on deck without having to add a full or even part-time position. What do Exxon Mobile, Toyota, Coca Cola Berkshire Hathaway, and Apple all have in common? In addition to being some of the most successful companies in world history, they are all also leaders in Corporate Social Responsibility. Entire teams are deployed to build strategic implementation plans to invest in the communities they serve. They develop their community investment plans and corporate philanthropy alongside the highest levels of leadership and produce annual reports to measure, monitor, and report on their social impacts just as they would report on financial returns to investors. 93 percent of the world's largest companies publish an annual report that details community investment and social responsibility initiatives. You may already guess we absolutely think every company should have a community investment plan -- but should you also plan to publish an impact report? Don't overthink it. A community impact report could be a small as a quick letter to stakeholders with some facts and figures about philanthropy and volunteerism for year. Or, on the complete other end of the spectrum, you could publish a full multi-page, professionally produced report that holds your company accountable to your commitment to the communities you serve year to year. Key questions to consider when building out a Philanthropy / CSR / Impact / Community Investment annual report:
Read more about what an annual report could include in Boston College's helpful "How to Read a Corporate Social Responsbility Report" guide. Don't know where to start? Take a cue from American Express, CISCO, Blue Cross Blue Shield and others in the sample reports we've compiled for you below. When you take a look at the reports, consider all the different ways companies can measure impact, philanthropy, and achieve their financial goals while doing it. Motivations matter. They are what drives a company’s Corporate Community Investment. The LBG Framework enables community activities to be classified according to three categories of motivation.
This analysis provides an indication of the strategic nature of the community program, shows the degree to which it is aligned with wider business goals and helps companies understand the extent to which they are driving their contributions OR are being driven by external demands and circumstances. The three categories of motivation identified in the LBG Framework are:
CHARITABLE GIFTS A general response to a charity request for funds Charitable gifts tend to be reactive in that they respond to appeals for help either directly from charities or through requests from employees (including matched funding or payroll giving) or in response to short-term or one-off events. They tend to be ad hoc or one-off contributions, made because it’s ‘the right thing to do’, not because of any strategic aim or anticipated return to the company. Some might refer to this as traditional philanthropy or grantmaking. COMMUNITY INVESTMENT Targeted investment, long term partnership, major commitment of resources Community investments tend to be more proactive and strategic than charitable gifts. They can center on a smaller number of larger-scale, longer-term projects and are often run as a partnership with, rather than a donation to, a community organization. These projects address the social issue(s) that the company has identified as being relevant to both the company and the community in which it operates. They will often be: linked to a wider community strategy; be measured; and be expected to help protect the long-term corporate interests and reputation of the business. COMMERCIAL INTIATIVES Primary purpose PR/ marketing, business development, or promotion for competitive advantage Commercial initiatives in the community are business related activities, usually undertaken by departments outside the community function (e.g. marketing, R&D), to support the success of the company and promote its brand and other policies, that also deliver community benefit. The most common example of this is cause-related marketing. These are primarily marketing campaigns but involve a contribution from the company to a charitable cause. Written by Julia M. Profeta Johansson for the Twenty Thirty Blog: 7 Ways to Rethink Your Business through an impact lens. There are three big questions that you can ask yourself to kick-start the process to become an Impact Business:
If your operation somehow already relates to one of the topics, the first step is to identify a specific target within that topic that you can intentionally improve through your business. The next step is to create a strategy with defined indicators, so you can measure your progress towards that target. Please note – simply working in an industry related to these topics does not guarantee that you are generating positive social/environmental impact. Unfortunately, this is something that we see happening more and more: people claiming to be impact businesses just because the business is in education or healthcare, for instance. We saw a lot of “green washing” back in the 2000s, when the topic of environmental sustainability became trendy. Now, we are at risk of seeing more “social washing.” That’s why in my previous article I recommend starting slowly and not getting attached to labels. It can be a long way to really become an impact business, especially if you are not a start-up, but it can be done. And you have to start somewhere. Going back to our process then, the following workflow may help to guide you through this thinking process of understanding where you are now and what are the first steps you can take.
After thinking about all these questions, there is a tool that can be helpful in framing the impact vision of the business and figuring out which KPIs, on an operational and impact level, will help move the business towards that vision. This tool is the Theory of Change. Theory of Change is a framework to define the impact vision of a business. It considers 3 different layers: inputs, outputs, and outcomes. Analyzing its inputs (products, services, etc.), it is possible to understand the outputs and design the desirable outcomes of the operation. Simply put, determine operational indicators in relation to what’s core in your operation (outputs) that in turn will lead to more in depth indicators, the outcomes, which should be the true impact generated, reflecting the impact vision of the business. The questions to ask when rethinking and repositioning a business, through the impact lens, are practically endless, but I hope this article has provided a starting point if you are interested in the topic. Written byJulia M. Profeta Johansson is an impact investing and venture capital specialist based in Berlin, Germany. Julia was previously a partner at Vox Capital, the first impact investing fund manager in Brazil. Before that she also worked with Yunus Social Business, Rocket Internet, Itaú BBA, and Mundo InNova. She is more than happy to continue this conversation and help your business start this journey of more intentional impact. Blackbird Philanthropy Advisors featured in Yahoo! Finance article on "How to Start a Nonprofit"12/4/2018 If you're passionate about a certain issue or cause, you may decide to go beyond donating your time and money to a charitable organization and start a new nonprofit. But before forming a nonprofit for personal fulfillment, there are a few crucial financial and logistical steps to address, including financing and taking advantage of tax exemptions to ensure the organization can solely focus on its core mission, not unnecessary expenses. You'll also want to consider whether you have the time to start a nonprofit, and if you'll need to be paid for the time you put into creating and operating the organization. Choosing whether or not to receive a salary is one of the fundamental differences between launching a nonprofit versus a for-profit business. With a for-profit business, you can earn as much as your business can afford to pay you; with a nonprofit, if you generate more than what the IRS considers "excessive," you could pay an excise tax and lose your tax-exempt status. So, if you're contemplating forming a nonprofit, there are a number of factors you'll need to consider to meet your organization's goals. With that in mind, here's what you need to know to get started. Research the prospective charitable cause. Conduct a competitive analysis to determine if there are other organizations addressing the same issue. If there are competing nonprofit organizations, it doesn't mean you shouldn't start a new nonprofit, but you do want to know the lay of the land, says Caitlin Worm, managing director of Blackbird Philanthropy Advisors, a nonprofit based out of South Bend, Indiana, that works to help businesses be strategic about their philanthropic giving. "If you can't find anyone doing the same exact thing, it could be a good sign, but maybe you can find an organization that does similar work and help them build a program to help your intended population rather than building a new organization from scratch," Worm says. "It's always a good idea to make sure you are not replicating services already being offered at satisfactory levels. ... For example, if you want to start a food bank, you may want to do a search for food banks in your community and find out what works and what doesn't work before you start a new one on your own." Consider incorporating your nonprofit. The process varies by state, but you'll likely need to register your nonprofit with your secretary of state's office, which typically requires a filing fee (in Ohio, for instance, it requires a $99 fee). You'll also want to choose a corporate name for your nonprofit. Weigh the pros and cons of tax-exempt status. If you've done your research, and you're certain that there is a need for your nonprofit, you'll want to make sure the IRS agrees. James Hsui, a New York-based attorney who specializes in offering legal advice to nonprofits, says that most nonprofits that are exempt from taxes are under Section 501(c)(3) of the U.S. tax code. "However, Section 501(c)(1) to 501(c)(29) all describe tax-exempt entities that could be classified as a nonprofit, and it is also not a requirement for nonprofits to be tax-exempt," Hsui says. How do you decide whether or not to file for tax-exempt status? Whether you seek out this tax exemption is something you should discuss with an attorney like Hsui, but assuming you're going to form a 501(c)(3) nonprofit, you'll be involved in a two-step process. First, you'll need to form the nonprofit as a corporation, trust or unincorporated associated with your state. "For most nonprofits, the corporation is often the best option because it provides the broadest amounts of liability protection for its directors, officers and other insiders," Hsui says. "Once the underlying entity is established, the next step is to apply for the entity to be recognized as a tax-exempt 501(c)(3). This involves filing either Form 1023 or 1023-EZ with the IRS." The latter form is faster, but if you expect to receive more than $50,000 in annual gross income for the next three years -- or you're starting a church or school -- you need to fill out Form 1023, Hsui says. "If everything goes well with the application for recognition, the entity will receive a favorable decision letter usually somewhere between two weeks and nine months," Hsui says. He adds that the time it will take to hear back from the IRS will depend on factors such as what type of form was used, the current backlog of applications, the complexity of the nonprofit's activities and whether any issues of concern were found by the officer examining the application. "I highly recommend hiring a lawyer, tax advisor or business consultant to help you walk through the steps of the form correctly the first time or you could risk having your application rejected or sent back for revisions," Worm says. "There are horror stories of these revisions and resubmit processes taking months, if not years, to complete because of minor errors on the application." Assemble a board of directors. If you're serious about starting a nonprofit, you'll need a board of directors. In fact, when you register your charity, you'll need to provide the IRS with names of three individuals who are your board of directors. Also, keep in mind the IRS prefers that the organization's board of directors are unpaid. You are allowed to have more than three board of director members, but experts suggest making sure your number is uneven, so when you have big decisions, such as how to spend money, you won't have a tie. Remember: Nonprofits require financing. Starting a nonprofit is tough enough, but running it indefinitely isn't easier. You'll need to have an interest in raising money or your board will need to be passionate about it. It's also beneficial to have a business plan. You'll want to create a road map that shows a fundraising and operational plan, and include an executive summary to entice organizations and foundations to offer grants for your nonprofit. "Startup nonprofits need to have board members who will aggressively and unashamedly lead, bringing in donations and other influencers that can help the nonprofit grow and get the traction that will lead to a healthy, sustainable inflow of donations," says Peter Dudley, chief development officer of Cancer Support Community San Francisco Bay Area. That's because fundraising will be a big part of your nonprofit's existence. "I've seen a lot of nonprofits struggle with cash flow because they underestimate the amount of time it takes to bring in donations. People passionate for their work often think that passion will translate into donations, and they also think that if a person will donate to this, then they will donate now," Dudley says. But it doesn't always quite work out that way. "In reality, a lot of people who are willing to donate will need to be asked several times, over a period of time, before writing that first check," Dudley says. "People often will also want to see some traction or a critical mass before writing bigger checks. They'll donate $25 or $50 but will wait until you're established before giving at a personally meaningful level." Written by: Sherri Welch
Detroit-based nonprofit Michigan Women Forward will offer $10 million in community impact notes to support Michigan's women entrepreneurs. Over the past five years, MWF (formerly known as Michigan Women's Foundation) has used philanthropic contributions and money from the state loan fund (that had to be paid back in just three years) to make microloans to 180 women entrepreneurs through loan programs and pitch competitions. About 90 percent of those investments have been in Southeast Michigan, the rest scattered around the state. The businesses range from drinking vinegars and a coffee shop, a hydroponic farm and a mushroom factory to an architecture firm and a phlebotomy training school. All but four of those companies are still operating, Cassin said, noting they collectively produced $18.5 million in revenue last year. With the additional "patient" capital from the new offering, MWF could invest in up to 1,000 additional women entrepreneurs, giving them longer terms to pay the investment back, along with technical assistance and other support to help them succeed, Cassin said. "If these businesses perform at the same rate the first 180 have performed," the notes could create $100 million in new revenue when it is fully deployed in 10 years, she said. "It starts to be significant. You start to talk about real impact." The $10 million Michigan Women Forward Community Impact Note offering is modeled after a similar program the Maryland-based Calvert Impact Capital Inc. offers to fund microloans, or make loans for buildings such as schools or affordable housing, Cassin said. MWF is seeking:
"Before you're ready for angel investing or venture funding, women, especially, have a very hard time finding small amounts of equity funding," Cassin said. Issuing notes is contingent upon MWF garnering commitments totaling at least $1 million within 12 months. Individual investors must make a minimum investment of $50,000, and institutional investors must commit at least $500,000. MWF promises returns of 1 percent for five-year notes, 2 percent for seven-year notes and 3 percent for 10-year notes. With assistance from Auburn Hills-based Gingras Global Group Inc., it will also provide investors with quarterly impact statements to document the tangible impact they are making in women's lives, Cassin said. All summer, MWF has been talking with local, private and family foundations and banks "that might want to turn a philanthropic donation into an investment" that could be redeployed again and again to help women entrepreneurs, Cassin said. "We would not have gotten this far if we hadn't received positive reinforcement from them," she said. MWF has also been talking with foundations in other parts of the state, such as Grand Rapids, that have an interest in investing in the notes to support women entrepreneurs in their regions, Cassin said. Beyond the support the new offering could bring to women entrepreneurs, microlending is a sustainable business for MWF, Cassin said. "The more we lend out and (entrepreneurs) pay back ... that gives us this opportunity to really create a larger and larger pool of money we can access" for more microloans, she said. "That's better for getting more women the capital they need and for getting us more flexible, earned income to start paying for the organization instead of having to go out and fundraise all the time." By Dina Buchbinder This article first appeared on the Twenty Thirty blog here. Children are the changemakers of tomorrow – if we encourage them to be their most innovative and creative self. Dina Buchbinder wants to give children an education that not only prepares them for their own future but also makes them agents of change for their communities and beyond. This is how everyone can get involved. Anyone can be an agent of change, and it is up to everyone to promote community development and active participation. With the 2030 Agenda for Sustainable Development including its 17 Sustainable Development Goals the United Nations provides a comprehensive framework for equality and development. Sustainable Development Goal #4 specifically seeks to promote equal access to quality education. We can all contribute to ensuring not only a quality education but also one that is meaningful for girls and boys around the world. At my organization, Education for Sharing, we view students, regardless of age, as able to, ready to and passionate about identifying and tackling problems in their own communities. We refer to our Education for Sharing students as changemakers, because we work with the students and entire school ecosystems to equip all students with the skills to improve their own communities through action. Here are three ways how you can unleash the power of play to form young agents of change in your community: 1. Understand your community. What problems are the children from your local community facing? To build a connection with children, it is imperative to understand the unique context framing their perspective. Talk to them and to other community members, visit community centers, and learn more about the daily problems they are facing and the solutions they come up with. Even if you have been a part of a community for most of your life, there is always something to learn, especially from children. Learning with your community will allow you to develop a sense of shared vision about what needs to change. Get started! 2. Walk your talk. Promoting civic values – such as teamwork, empathy, respect, tolerance, responsibility, fairplay, inclusion – is most effective through demonstration. Many community organizations welcome the assistance and support of community volunteers to work with children. Be it your local Boys and Girls Club, YMCA, or Big Brothers Big Sisters, every community has a need, and you can be the example children need to look up to (you will be surprised how much you will learn from them in return). 3. Get moving. Ninety-one percent of American children have poor diets and less than half get the recommended 60 minutes of daily physical activity (Better Policies for a Healthier America). Globally, 81% of adolescents aged 11-17 years were insufficiently physically active in 2010. Adolescent girls were less active than adolescent boys, with 84% vs. 78% not meeting WHO recommendations (World Health Organization). It seems as if technology has completely taken over, and children are spending increasingly less time outside. Physical activity and play allow us to know ourselves and our communities better. Being outside and engaging in physical activity invite us all to communicate better to encourage cooperation, and to engage more. It's also a tool for expression and action. As Nelson Mandela said, sport has the power to inspire and unite, to create hope. Encouraging girls and boys to discover the outdoors will enable them to see a world beyond the internet and unleash their potential to improve their own communities. Play outside with them! These are a handful of ideas to get involved in your community in an effort to promote the formation of young, active citizens. There are many different ways to make global change at a local level, and ultimately each one of us is in a position to affect that change. Change starts with you! How will you contribute today? On your mark, get set, go! The closer details of charitable deductions on taxes only matter if a person is itemizing deductions on their tax filings. If so, you are able to deduct contributions up to 50% of your adjusted gross income when they are made to qualifying 501(c3) entity or other qualifying organization. Some organization types only qualify for a 30% limitation private foundations, others qualify for a 60% limitation (federal government units).
If you’re concerned with the tax-deductible status of your donations, you may request verification from the charity of your choice (ask to see a copy of their latest IRS 990 or a copy of their IRS 501(c)3 determination letter). You can also use irs.gov or guidestar.org to search for documentation. What can and can’t be deducted? In order for a donation to be deducted, it needs to be truly charitable. No goods or services can be received in exchange for the donation that is considered tax-deductible. If you attend a charity dinner and paid $500 for your ticket, you’ll need to find out how much was spent on the meal and beverages you received because you are only allowed to deduct the amount that exceeds the cost of your event attendance. Similarly, charity concerts, golf outings, and auctions are all types of events when your full donation amount may not count toward your charitable donation. You may pay $500 to play in a charity golf outing but find out that the charity spent $300 per player for gifts and greens fees. In this case, you would only be able to deduct $200, not the entire $500 you spent. It is up to you and your accountant to determine this amount by coordinating with the charity. If the charity is doing their job correctly, they will make it easy for you by adding it to the gift acknowledgement. For example, it should read: “$100 contributed. $60 total deductible donation after receipt of goods and services.” Do people need to keep track of receipts? Everyone should keep careful track of charitable contribution receipts, just as they would any other household or business expenses. Most nonprofits have a donor database system to keep records on gifts though and should be able to print you a new one should you lose yours. Some nonprofits will mail out a statement of giving around January or February each year which will include a complete history of your giving for the year – this document can be used for accounting purposes in place of the receipts of each individual gift you made to them that year. GET TO GIVING
As the clock winds down on 2018, many people are scurrying to make their final charitable donations of the year and tally up ones already made. In 2017, Americans gave $410 billion to charities, an increase of five percent over the previous year. For those looking for ways to make the most of charitable donations before the end of the tax year, here are some tips and insights from experts around the country. KNOW THE NEW TAX LAWS Under the new tax laws recently adopted, the standard deduction for filers has roughly doubled. It’s now $12,000 for single filers, $18,000 for head of household, and $24,000 for joint filers. Those increases will likely have a profound impact on people’s interest in making charitable donations. “If you’re taking the standard deductions, you cannot itemize,” explains Mark Charnet, founder and CEO of American Prosperity Group. “That’s going to horribly dissuade people from making charitable donations. Unless they itemize on their taxes, they will not get a reduction on their tax bill for the charitable contributions and therefore will be disincentivized to make donations.” KNOW HOW MUCH YOU CAN DEDUCT The law generally allows for deducting contributions up to 50 percent of your adjusted gross income, when such contributions are made to qualifying 501 (c)(3) entity or other qualifying organization, explains Caitlin Worm of Blackbird Philanthropy Advisors in South Bend, Indiana. “Some organization types only qualify for a 30% limitation, such as private foundations, while others qualify for a 60% limitation, such as federal government units,” says Worm. RESEARCH WHERE YOUR MONEY WILL GO If you’re planning to donate to a non-profit organization, otherwise known as a 501(c)(3), find out how your contribution will be used. How much will go toward the cause and how much goes toward administration? A variety of third-party evaluation and ratings sites can help with this effort, such as the Better Business Bureau’s Wise Giving Alliance, Charity Navigator, and Charity Watch, which review a charity’s finances, governance and effectiveness. “Better ratings will indicate that the organization allows for the majority of the donations to go right to the cause,” says Jacob Dayan of Community Tax. 1. Start Early!
Teaching children philanthropy can start at a very early age. Lessons related to cooperation, compassion, kindness, sharing, and contributing to a family, school, or neighborhood all teach the foundation of philanthropy. 2. Time, Treasure, Talent It’s important to teach children of all ages that we all have time, treasure, or talent to share with the world. If you start with the framework of time, treasure, talent, you can easily incorporate that into helping children understand their unique attributes and capacity to give something to others who would otherwise go without. Kids are naturally altruistic -- it is up to adults to teach them how to act on their altruism by showing them ways they can volunteer time, give away toys or food, and share their talents for the benefit of others. 3. Needs vs. Wants If you start by teaching your kids about needs versus wants, they will understand that not everyone has extras and many do not even have enough to cover needs. A big part of teaching philanthropy to children is also teaching them to be grateful for what they have. You can talk to them about what it might be like to have less or to have more and ask them to think about how other people live. 4. Be a Role Model Children learn best by experiencing and modeling what they see their loved ones do. A great way to teach children philanthropy is by devoting yourself to giving back. You can invite your children along to charity events, to donation drives, and sometimes even volunteer service opportunities. 5. Reinforce Kindness When you see your child expressing concern or kindness for others, encourage them and show them that you are proud of how they reacted. This will reinforce their behavior so they have a positive association with kindness and empathy. Small businesses should create a budget, according to a new survey report from Clutch, a B2B research firm in Washington, DC. Blackbird Philanthropy Advisors’ Managing Director, Caitlin Worm, provided expert commentary on the data, based on her experience counseling nonprofits and small businesses. The survey found that 61% of small businesses did not create an official, formally documented budget for 2018. Small businesses may have skipped a budget because creating one seems restraining or intimidating. Perhaps they believe that it’s impossible to stick to a budget considering the daily obstacles small businesses face. Yet, the survey also found that exactly half of small businesses that did budget were able to stick to their goals for quarter one and quarter two 2018. Businesses have a bit more flexibility with their budgets than households, Worm explained. “Business owners need to keep in mind that a budget is just a plan,” Worm said. “Sticking to a budget does not always mean the same thing in business as it does for a household. In a business, the potential to generate revenue has fewer limits than a household budget where one or two people earn a fixed salary.” Clutch’s survey did find that more than one-third of small businesses with a budget (37%) spent more than they planned in the first half of the year. This doesn’t necessarily mean these businesses are in trouble, though. “Overspending is not always bad – there may be investments that cost more early on than expected but will pay off in the near future,” Worm said. “Also, many times, spending more than budgeted could also mean that far more revenue was generated than expected – in that case, more expenses could be a good thing.” For businesses beginning to budget for the first time, Worm recommends caution. “New business owners tend to overestimate their potential to generate revenue quickly,” Worm said. “It’s actually better to underestimate and be ultra-conservative, than to be overly confident. Basically, try not to overestimate the amount of money you think you’ll receive. It’s far better to budget conservatively and end up with more money than you planned for, rather than to fall short.” When budgeting, consider the goals you’d like to reach, as opposed to just random numbers. “When creating a brand new budget, you need to have some specific, realistic goals in mind,” Worm said. “These can include: ‘To break even in Q3’ or ‘To have ten customers paying $10,000/year or more by end of the year.’ The budget should tell a story of how you will run your business and what goals you want to achieve.” Read Clutch’s full survey report here. Many people wonder if their volunteer time at a charity completing professional tasks can be deducted on their taxes. You cannot deduct the value of services rendered in volunteer service to a nonprofit. You can, however, deduct the expenses you incurred while volunteering or traveling to and from the volunteer assignment.
Example 1 - The Artist: An artist who paints a mural on the wall of her local local Boys & Girls Club can deduct the cost of paint, paint brushes, and other supplies needed to complete the mural. She can also deduct the gas mileage it took to get to and from the charity to complete the volunteer service. She cannot deduct for the time it spent her. Example 2 - The Nurse: A Red Cross volunteer who is a Registered Nurse travels to Florida to help with hurricane disaster relief recovery. He can save the receipts for his airfare, lodging, and meals while on assignment. He cannot calculate the hours he spent working as a nurse for Red Cross and deduct the pay he would have been paid in his workplace. Always consult with your tax advisor to be certain. Bethza Studio and Salon J in Elkhart, Indiana will hold a month long donation drive to collect supplies for women at the Safe Haven Women's Shelter. They are asking community members to drop off feminine hygiene products, gently preowned purses, undergarments, cleaning supplies, and soaps from October 10 through November 8.
There will also be a special event raising awareness for victims of domestic violence and additional funds for the women's shelter. The live event will take place on Thursday, November 8th at Bethza Studio in downtown Elkhart. There will be a professional photographer, music, door prizes, hair styling, brow shaping, lashes (strip), mini makeovers, and more available on-site from 5:00-8:00PM for donations only. Donations of all amounts in exchange for the services offered are welcome and will be collected at the event. Salon J Donation Goshen Drop Off: 130 Main Street Goshen, Indiana 46526 Bethza Studio Donation Elkhart Drop Off: 201 S. Main St. Elkhart, Indiana 46516 Many people wonder if it makes sense to donate property, cars, or other valuable items to charities in order to receive a tax donation.
Nonprofits are chronically short on cash and always in pursuit of seeking full sustainability. Of course, most charities will accept donations of all kinds but sometimes donations can be more of a hassle than the net benefit. There are horror stories of benefactors donating property, jewelry, art, or cars to a nonprofit where it took more staff time to sell and manage the goods than they received in net contributions. Make sure your donation will be an easy and manageable transaction. If a charity uses your property, car, art, or valuable items to carry out their programs and services, you may be able to deduct the full “Fair Market Value.” However, you may need an official, written appraisal. If the property, cars, or valuable items are worth more than $5,000 you will need a written appraisal from a qualified appraiser. On the other hand, if the charity sells your property, car, or valuable items for less than your appraised value, you may only deduct the amount the item was sold for, not the pre-determined market value. Example: If you donate a car to Boys & Girls Club for the estimated value of $3,500 in August but they were only able to sell it for $3,000 in December – then you can only deduct the final sale value of $3,000. Veer over to the IRS website to learn more before making your big donation: A Donor's Guide to Donating a Car Determining the Value of Donated Property Feel free to reach out to us if you have additional questions or need us to translate some of the IRS technical language. We're also happy to review your pledge and give you guidance on the best course of action. Can we seriously drive other people to change? I don’t think so. Change is a process of accepting someone else’s ideas. Therefore, it will always be a challenging process, especially in large multinational organizations. There will always be people who understand the logic and purpose of the change and who immediately buy in; these people are known as the early adopters. There will be a faction of people who are open to being convinced; known as either the early or late majority. For these people, it will be a matter of time and it will depend on the intensity, consistency, and frequency of the change messages, including those vital behaviors demonstrated by the senior leaders within the organization leading the change. "Change is a process of accepting someone else’s ideas." - Talita Ferreira It will also matter how these individuals are inspired to change, as opposed to being told to change. Then, there are the laggards who will take longer and will need more time to adapt. Lastly are those people who will never go on the change journey. The difficulty here, for leaders, is to accept this situation and not to invest too much emotional energy in these people, unless they become disruptors of the change, in which case swift action is necessary. I recently held a talk at an Integrity and Legal Affairs conference in Germany as an impulse speaker for change. One of the questions asked of me was: "How do we convince large parts of an organization to change, especially if they are operating in different cultures and they might not see the need for change?" At the time, my answer focused on finding the common ground around the change, such as shared values or the benefits for everyone. Of course, the answer is far more complex and I was inspired to elaborate, as below. 1. Find the right supporters for the change. If the board (top management) of an organization is leading a top-down change, it is immensely important to get the senior (middle management) leaders bought into the change. Gallup refers to leaders at this level as the permafrost: relatively impossible to thaw. The secret is to find those early adopters in this group and to convert them to being champions for the change. In turn, they will help convince the rest of the organization. Plus, my recommendation is that workshop-style, peer-to-peer learning sessions, with a trust-based psychologically safe environment, can be excellent multiplicators. 2. Adapt the change approach for different people. We are all different and we respond to messages in different ways. Having someone from the headquarters of an organization fly in to a foreign subsidiary and explain the why, what, and how is often not good enough. Especially when cultures are diverse or power play and hidden agendas between countries are the play of the day. Individuals also learn differently and an impactful audio-visual message adapted to their unique situation might suit them better. My advice is to tailor the change focus depending on the culture you are approaching, try to walk a moment in ‘their shoes’ and suggest interactions and arguments that might resonate with them from their perspective. "The top prize is when the change you want to create is role-modeled in the behaviors demonstrated by leaders and individuals and a momentum starts to form." 3. Repeat, repeat, repeat. I cannot emphasize enough how the change message needs to be repeated using different approaches, events, interactions, and methods of media. This was one of the most frustrating aspects for me to grasp as a former Chief Financial Officer trying to embed cultural change in a large organization. Previously, I had worked with finance professionals in my earlier career, where I had explained something new only once and they would be off, taking action and getting things done. However, from my experience, this is not how it works with a change agenda, especially cultural change. I had to learn to be patient with the laggards and ensure that the cultural messages were embedded in every opportunity we had to communicate, especially via daily interactions. The top prize is when the change you want to create is role-modeled in the behaviors demonstrated by leaders and individuals and a momentum starts to form. 4. Start with yourself. As leaders transforming organizations we must be prepared to start with ourselves. Making small adaptive changes every day that can be seen by the individuals around us are far easier to digest and believe than the messages we tell everyone. Getting one department wholeheartedly behind a change, changing their mindset, and starting to showcase the examples of change are a good barometer for whether a shift is happening. Only after starting with ourselves can we move on to finding other supporters, helping us to maximize our efforts. "As leaders transforming organizations we must be prepared to start with ourselves." 5. Convince other people. This is a process that does not simply involve telling people why the change is a good idea. My experience has taught me that we sometimes need to repeat the same message in many different ways using different media stimulus to communicate our message. Everyone is not immediately convinced to take up the change baton and start moving. Finding common ground, such as shared values and motivations, can be a great way to get other people to buy in. I am not a firm supporter of the carrot and stick strategy, although many organizations believe in this approach as a way to motivate change. Be aware that it is proven to have limited longevity, especially in diverse environments with differing age profiles and basic motivators. Never ignore underlying fears...and find others to support your mission. 6. Find advocates for change. It is always better if other people are convincing their peers as opposed to the leaders only being involved in the change process. We need to create enough engagement and spot the people who are the early supporters; the ones who are passionate about the change. Often, change agents are chosen by their bosses or the leadership team and they don’t necessarily want to be leading the change, or they are not good at it and prefer to do something else. Finding those people who are passionate about the change and with the enthusiasm and drive to convince other people is what is needed. These advocates inspire other people to change and a multiplication effect is soon achieved. 7. Never ignore the underlying fears. Often, we ignore the underlying fears that people have because of change. They might feel they will lose control because the situation is not familiar to them or what they have experienced before, the fear of the great unknown. Or, it could be a fear of looking bad in the new environment; or a fear of feeling as if they won’t be able to perform, shine, or do a good job once the change is embedded. Acknowledging these fears openly and creating the safe space to talk about it in smaller groups, can help people to be open to the change and go on the change journey faster. 8. Show tenacity. Finally, accept that we will not convince everyone at the same pace and several people will need more time. There will always be people who never go on the change journey and that is fine, too. If the new environment is too offensive for them, they might want to move on and try something new. Leaders should never beat themselves up about the people who don’t go on the journey. We should use our inner resilience to come up with new arguments, find other supporters, and live to battle another day. I am convinced that we must inspire other people to change through various impulses that help them understand the purpose of the change and what is in it for them; how the change can improve their lives. We need to focus on the ‘togetherness’ in change, to inspire other people; moving from change being challenging to change being a thriving opportunity through a process of doing it together. This article was written by Talita Ferreira as a contribution to TwentyThirty. Talita Ferreira is a thought leader and change maker who is passionate about living in true authenticity, purpose-driven collaboration, and harnessing diversity of thought. She is the founder and CEO of Authentic Change Solutions. Many people wonder if they could afford to hire a nonprofit performance consultant. Our answer is simple in many cases: you can't. Do you want to be the best leader possible? Do you want to spend all of your energy working toward you mission? Would you like to improve in areas where you feel you face more challenges? These are all good reasons to hire a consultant.
Rates and fees vary greatly among consultants locally and nationwide. Some consultants charge by the hour or provide a flat rate based on the project. There's no easy answer because the range is so broad -- some may charge $15/hr, while others charge $250/hr. Some may charge you $100 for a task that someone else will charge $2,000 for. Typically, more experienced and seasoned professionals are going to charge more for their expertise -- but then again, sometimes they do not. Also some people work faster and produce better results than others. Would you rather pay $500 for something that takes one consultant a month to do with loads of editing and feedback required from you to complete? Or would you rather spend $2,500 to get something delivered within a week, error free? It really all depends on what you're looking for and what you're willing to spend. How does Blackbird Philanthropy Advisors determine rates? It's really hard for us to give you an estimate of how much a project will cost until we dive deeper into the details. We know that's not exactly the answer you're looking for but it's an honest one. Generally, a "one-off" short term project that involves highly skilled work on a very temporary, short-term basis (1 hour to 2 weeks) will cost a little more than an agreement where there is an ongoing, retainer-based relationship with guaranteed work over a longer period of time or for a larger project. If you hired Blackbird to completely manage, plan, and organize all aspects of an entire special event -- this would be charged as a flat fee rate on a payment structure that works for both parties. If you're looking to hire Blackbird for a short term project, you might end up having an agreement where our services are charged by the hour. Long story short, there's no one size fits all plan. Some things you'll want to knock out of the way before you hire a team to pitch in at your organization:
Volunteering is a great way for teens to explore higher education and career options while forming their identities as individuals. Through volunteer work, teens can build confidence, independence, leadership, and social skills that will catapult their lives into adulthood. In addition to building soft skills, teens can gain valuable hard skills related to computer systems, basic financial transactions, care taking, etc. that will show future employers and college admissions teams that they are responsible, reliable, and self-directed.
In general, volunteer jobs involve more scheduling flexibility than paid youth jobs and could be ideal for youth who are interested in holding a job but who cannot due to sports, extracurricular, and other academic commitments. How to Find the Right Cause Teens are often so curious about many different things in life. Volunteering on day projects for organizations is a great way to narrow down your interests to make a fuller weekly commitment to a cause you care about. Many communities have a local United Way who can serve as a liaison to match a teen volunteer with a cause of which they find to be interesting. There is no shortage of fantastic nonprofit organizations who rely on volunteer labor to fulfill their mission. Different Ways to Help Nonprofit organizations are always looking for bright, dependable, hard working young people who are committed to making a difference in the world. Once you narrow down the cause you are most passion about, write an email to the nonprofit’s volunteer coordinator or administration and make your case. You may start off working on menial or repetitive volunteer tasks but if you prove yourself to be committed and reliable, a volunteer position could turn into something even more valuable and rewarding. If you’re a budding writer, instead of stuffing hundreds of envelopes with a newsletter insert, they may eventually rely on you to write a feature or two in the newsletter. If you’re a basketball star and want to be a coach one day, you may go from cleaning the gym after youth practices to coaching one of the teams. |