Presented by:

Michelle Cramer, CFREPresident & CEO, CRAMER & ASSOCIATES

Columbus Accounting Show

October 29, 2009

WAKE UP!Why You Need to Pay Attention to the

Nonprofit Sector and Understand the Power of Philanthropy

AGENDA Nonprofit Statistics

United States Ohio

Why You Should Get Involved With A Nonprofit Business / Corporate Benefits Personal Benefits

Choosing The Right Board Opportunity For You Tips For Maximizing Your Board Opportunity

In the Workplace Networking Personal Strategies

Public Chari-ties; 63%945,000

Private Founda-tions; 8%120,000

Others (Chambers of Commerce, Fra-ternal Orgs, Civic

Leagues, etc.); 29%435,000

Over 1.5 Million NonprofitsIn the United States

Source: The Urban Institute

Quick Facts About Nonprofits in the United

States In 2007, Nonprofits reported:

Over $1.4 trillion in total revenue Nearly $1.3 trillion in total expenses Nearly $2.6 trillion in total assets

Source: The Urban Institute

2007: Total Revenue $1.4+ Trillion

Source: The Urban Institute

Contribu-tions; 22%

Gifts & Grants 67%

Other Sources; 11%

Giving USA: The Numbers2008 Contributions: $307.65 billion by source of

contributions($ in billions – All figures are rounded)

Individuals$229.28

75%

Corporations$14.50

5%

Foundations$41.2113%

Bequests$22.66

7%

Source: Giving USA

Sources of Contributions - 2008

Total giving = $307.65 billion

Decrease of 2.0 percent (-5.7 percent adjusted for inflation)

First decline in giving since 1987, and only decline attributed to economic climate. The 1987 drop was related to tax-law changes

Individuals remain the single most important source

Individuals + charitable bequests = 82 percent of total

Foundation grantmaking = 13 percent of the total

Individual + Bequest + Family Foundations = 88 percent

Corporate giving is an estimated 5 percent of the total

Consistent with the trend of the past decade

Source: Giving USA

Changes in giving by sourceCurrent $

Source: Giving USA

Recessions in dark gray: 1969–70; 1973–75; 1980; 1981–82; 1990–91; 2001; 2007–2008

Inflation-adjusted dollarsCurrent dollars

Total giving, 1968–2008$ in billions

Source: Giving USA

Types of recipients of contributions, 2008

Total = $307.65 billion ($ in billions)

*Foundation grants awarded to individuals

Environmentand Animals

$6.582%

Grants toIndividuals*

$3.71 1%

HumanServices$25.88

9%

InternationalAffairs$13.30

4 %Arts, Culture,

and Humanities$12.79

4%Public-Society Benefit$23.88

8%

Unallocatedgiving$19.39

6%

Health $21.64

7 %

Gifts toFoundations

$32.65 11%

Religion $106.89

35%Education$40.94 13%

Source: Giving USA

Types of recipients of contributions, 2008

Religion remains the largest single recipient at 35 percent of total

After religion, next highest categories are:

→ Education 13 percent

→ Foundations 11 percent

→ Human services 9 percent

Unallocated includes gifts to government agencies, public schools (not public school foundations), or new charities; grants to international organizations; and differences in fiscal year

Source: Giving USA

Changes in giving by recipient organization

Current $2007–2008

2006–2007

Source: Giving USA

Ohio Growth of Nonprofit Sector

1998- 2008 501 (c) (3) public charities:

25,762 to 39,481: 54% Increase Largest growth in small nonprofits: 66% increase Religious organizations not registered

Ohio has the 5th largest nonprofit increase per capita in the U.S.

Decrease among other 501 (c) organizations: Fraternities, chambers, labor and agriculture orgs.

Source: National Center for Charitable Statistics

Why You Should Get Involved With A

Nonprofit

Volunteering In The United States

Approximately 26.4% of Americans over the age of 16 volunteer This number has remained relatively constant since

2003 Volunteering is predicted to rise in the next 5 – 10

years due to Millennials and Gen-Xers

Source: 2008Population Survey

Why Get Involved

Business / Corporate Benefits of Nonprofit Involvement

Establishes and reinforces business / corporate identity Builds customer loyalty Increases networking opportunities Helps employee recruitment and retention Provides professional development opportunities Positions the business or corporation as a supporter of

the community

Why Get Involved

Persoanl Benefits of Nonprofit Involvement

Establishes and reinforces personal brand/reputation Increases networking opportunities Employment / career opportunities Provides professional development opportunities Opportunity to learn strategy / “big picture” thinking Personal fulfillment

Choosing The Right Board Opportunity

For You

Choosing The Right Board For You

Passion for the cause Ability to fulfill requirements

Board Meetings Retreats Financially

Skills / expertise the board needs Health of the organization

Choosing The Right Board For You

How to find board opportunities Use internal resources Do your homework

Research organizations – Annual report Board of Directors Major donors

Talk it up . . . .Ask Others Use personal network

Tips For Maximizing Your Board Opportunity

TIPSMaximizing Your Board Opportunity “IN THE WORKPLACE”

Don’t keep your board involvement a secret Create some buzz

Share with marketing department / newsletter Research company giving policies – foundation Circulate information about the board happenings

Events, invitations, successes Recruit volunteers / supporters when appropriate Include in your professional development plan Tell your clients / customers

TIPSMaximizing Your Board Opportunity “NETWORKING”

Networking & Relationship Building Create strong relationships with board & staff Take extra time to get to know fellow board members Use directories provided by nonprofit organizations to

expand your database Use events as opportunities to host colleagues / friends

/ clients Get to know the “champions” of organization

TIPSMaximizing Your Board Opportunity “PERSONAL STRATEGIES”

Dedicate yourself to a ‘primary’ board or cause Serve in various roles Move up to leadership Brand yourself with board Do not over-extend yourself

TIPSMaximizing Your Board Opportunity “PERSONAL STRATEGIES”

Determine best role for you to help the organization Ask executive director / board chairperson

Set personal goals re: your desired efforts / contributions to the organization

Actions speak louder: Perform to the best of your abilities Be Visible, Present & Active

Develop a credible reputation in the world of volunteer nonprofit leadership

TIPSMaximizing Your Board Opportunity “PERSONAL STRATEGIES”

Be the organization’s best PR agent – spokesperson Follow through on things you say you will do Exit gracefully and professionally

Suggested Reading

Giving USA: The Annual Report on Philanthropy – Giving USA Foundation

The Board Member’s Guide to Fundraising – Fisher Howe

Boards the Make A Difference – John Carver

Make a Name for Yourself – Robin Fisher Roffer

Doing Good Better: How to be an Effective Board Member of a Nonprofit Organization – Edgar Stoeszand Chestar Raber

The Power Of Nice – Linda Kaplan Thaler

THANK YOU!

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Michelle@CramerFundraising.com888.926.GIVE614.766.GIVE