Nonprofit & Partners LLC

11/15/2018

Is Online Fundraising a Bad Idea?

Four tips for avoiding the pitfalls of online giving.

11/02/2018

Nonprofit & Partners at work!

10/25/2018

Ms. Mugdha Arora has been appointed as nonprofit incorporation consultant for India and South East Asia to expand Nonprofit & Partners LLC presence in the region. She brings with her rich experience of working with NGOs and Nonprofits across the region. Welcome Mugdha!

10/21/2018

Giving USA 2018: Americans Gave $410.02 Billion to Charity in 2017, Crossing the $400 Billion Mark for the First Time. Stock market, economic conditions helped drive solid growth in contributions across the board.

Powered by a booming stock market and a strong economy, charitable giving by American individuals, bequests, foundations and corporations to U.S. charities surged to an estimated $410.02 billion in 2017,

According to 2018 Research, Giving exceeded $400 billion in a single year for the first time, increasing 5.2 percent (3.0 percent adjusted for inflation) over the revised total of $389.64 contributed in 2016. (Please see below for a more detailed breakdown of the numbers for each philanthropic source and sector.)

Giving USA, the longest-running and most comprehensive report of its kind in America, is published by Giving USA Foundation, a public service initiative of The Giving Institute. It is researched and written by the Indiana University Lilly Family School of Philanthropy at IUPUI.

“Americans’ record-breaking charitable giving in 2017 demonstrates that even in divisive times our commitment to philanthropy is solid. As people have more resources available, they are choosing to use them to make a difference, pushing giving over $400 billion,” said Aggie Sweeney, CFRE, chair of Giving USA Foundation and senior counsel at Campbell & Company. “Contributions went up nearly across the board, signaling that Americans seem to be giving according to their beliefs and interests, which are diverse and wide-ranging.”

Giving from all four sources and giving to all but one of the major types of recipient organizations grew in 2017, driven by economic conditions. While policy developments may have played some role in charitable giving in 2017, most of the effects of the tax policy changes adopted in late December 2017 likely will affect giving in 2018 and beyond.

“The increase in giving in 2017 was generated in part by increases in the stock market, as evidenced by the nearly 20 percent growth in the S&P 500. Investment returns funded multiple very large gifts, most of which were given by individuals to their foundations, including two gifts of $1 billion or more,” said Amir Pasic, Ph.D., the Eugene R. Tempel dean of the Lilly Family School of Philanthropy. “This tells us that some of our most fortunate citizens are using their wealth to make some significant contributions to the common good.”

In addition to the S&P 500, other economic factors, such as personal income and personal consumption, are associated with households’ long-term financial stability and have historically been correlated with giving by individuals. These factors also experienced strong growth in 2017.

Highlights about Charitable Giving by Source

Giving by three of the four sources of giving grew 5 percent or more.
Giving by individuals represented 70 percent of total giving.
Giving by foundations has seen strong growth for the past seven years, according to data provided by the Foundation Center. Its five-year annualized average growth rate of 7.6 percent far exceeds the 4.3 percent annualized average growth rate for total giving.
Corporate giving was boosted by $405 million in contributions for relief related to natural and manmade disasters.
“Donors and funders are becoming ever more sophisticated in their approaches to making gifts as they draw on the increasing availability of new data, new technology and new ideas,” said Rachel Hutchisson, chair of The Giving Institute, and vice president of corporate citizenship and philanthropy for Blackbaud. “We are seeing innovations across the philanthropic sector that are contributing to strong growth in giving, which benefits everyone.”

The Numbers for 2017 Charitable Giving by Source:

Giving by individuals totaled an estimated $286.65 billion, rising 5.2 percent in 2017 (an increase of 3.0 percent, adjusted for inflation).
Giving by foundations increased 6.0 percent, to an estimated $66.90 billion in 2017 (an increase of 3.8 percent, adjusted for inflation). Data on foundation giving are provided by the Foundation Center.
Giving by bequest totaled an estimated $35.70 billion in 2017, increasing 2.3 percent from 2016 (a 0.2 percent increase, adjusted for inflation).
Giving by corporations is estimated to have increased by 8.0 percent in 2017, totaling $20.77 billion (an increase of 5.7 percent, adjusted for inflation).
“Giving to nearly all categories of charities experienced significant growth, and giving to foundations achieved a double-digit growth rate,” said Una Osili, Ph.D., associate dean for research and international programs at the Indiana University Lilly Family School of Philanthropy. “Economic growth contributed to these widespread increases in 2017, and there is heightened interest in the overall economic environment and other factors that can help nonprofits sustain this growth over time.”

Highlights about 2017 Gifts to Charitable Organizations

Charitable subsectors receiving contributions generally experienced strong growth.

Giving to foundations saw the largest growth in charitable contributions, increasing 15.5 percent, based on data provided by the Foundation Center. This growth was driven by extraordinarily large gifts by major philanthropists, such as Michael and Susan Dell and Mark Zuckerberg and Priscilla Chan, to their foundations.
Giving to eight of the nine major types of recipient organizations increased in 2017.
The exception was giving to international affairs organizations, which declined after several years of steady growth. However, giving to this subsector still reached its third-highest level ever recorded.
Seven of the nine types of recipient organizations experienced growth of 5 percent or more.
“The broad growth in giving to virtually all charitable subsectors suggests that charities are connecting effectively with their donors and demonstrating their impact and case for support,” said Patrick M. Rooney, Ph.D., executive associate dean for academic affairs at the Lilly Family School of Philanthropy. “While it is too soon to know with certainty how recent policy changes may influence when and how much donors give, what is certain is that cultivating and nurturing strong, ongoing relationships with donors will only become more important as the changes to federal tax policy made at the end of 2017 take effect.”

The Numbers for 2017 Charitable Giving to Recipients:

Giving to religion increased 2.9 percent (0.7 percent adjusted for inflation), receiving an estimated $127.37 billion in contributions.
Giving to education is estimated to have increased 6.2 percent (4.0 percent adjusted for inflation) to $58.90 billion.
Giving to human services increased by an estimated 5.1 percent (2.9 percent adjusted for inflation) totaling $50.06 billion.
Giving to foundations is estimated to have increased by 15.5 percent (13.1 percent adjusted for inflation) to $45.89 billion, based on data provided by the Foundation Center.
Giving to health organizations is estimated to have increased by 7.3 percent (5.1 percent adjusted for inflation) to $38.27 billion.
Giving to public-society benefit organizations increased an estimated 7.8 percent (5.5 percent adjusted for inflation) to $29.59 billion.
Giving to arts, culture, and humanities is estimated to have increased 8.7 percent (6.5 percent) to $19.51 billion.
Giving to international affairs is estimated to have declined 4.4 percent (6.4 percent adjusted for inflation) to $22.97 billion.
Giving to environment and animal organizations is estimated to have increased 7.2 percent (5.0 percent adjusted for inflation) to $11.83 billion.
In addition, giving to individuals, which is less than 2 percent of total giving, is estimated to have declined 20.7 percent (22.4 percent in inflation-adjusted dollars) in 2017, to $7.87 billion, primarily as a result of an unusually high increase in 2016. The bulk of these donations are in-kind gifts of medications to patients in need, made through the patient assistance programs of pharmaceutical companies’ operating foundations.

Unallocated giving was negative $2.24 billion in 2017. This amount can be considered the difference between giving by source and use in a particular year. It includes the difference between itemized deductions by individuals (and households) carried over from previous years. The tax year in which a gift is claimed by the donor (carried over) and the year when the recipient organization reports it as revenue (the year in which it is received) may be different.

10/21/2018

Operating a Nonprofit in Multiple States!

If an organization is planning to conduct any type of activity outside its incorporated state, certain measures need to be taken to maintain state-level compliance. An organization must have a clear understanding of what it is planning so it can properly meet the requirements of the additional states.

To be considered as operating in multiple states, an organization must be conducting its tax-exempt activity outside its incorporated state. For instance, if an organization’s purpose is to provide children with music lessons in Tennessee and decides to expand its lessons to children in Kentucky, the organization is operating in two separate states. In this situation, the organization needs to file a Certificate of Authority in the state of Kentucky so it can legally carry out its mission in that state. This process is required for every state outside the original incorporated state (though each state varies in their guidelines and filing process). Many states are now requiring a Certificate of Authority if the organization will hold an event or anything that would require the organization to have liability insurance. For instance, a 5K fundraising event may require a Certificate of Authority, in addition to Charitable Solicitations registration (which is discussed below). Information about a state’s process for filing a Certificate of Authority can typically be found on the state’s Corporation’s Division website.

An organization can conduct or participate in events and fundraising activities in another state without being considered operating within that state. For these types of activities, the organization will likely need to file for charitable solicitations. Being registered for charitable solicitations allows an organization to legally solicit funds; if an unregistered organization is soliciting for funds in a state that requires registration, it will be subject to whatever sanctions exist in each state’s law. Currently, 40 states require organizations to register for charitable solicitations. Keep in mind that organizations need to file with their incorporated state as well as any additional state in which they are conducting activities. As an example, an organization may participate in benefit shows taking place in several different states. An organization’s participation in these events is not its tax-exempt purpose, but rather outlets that generate funds so the organization can carry out its purpose.

Because each state has unique compliance requirements, an organization must apply to meet the standards of each state independently. What if an organization wants to operate and/or solicit funds in each state? Unfortunately, there is not a one-size-fits-all solution to filing either document with all required states, so it is critical to understand the requirements of each state.

10/13/2018

Nonprofit & Partners LLC is proud to be the sponsor of NGO Expo 2018, Global NGO and Nonprofit conference and expo in New York City.

10/13/2018

Starting a Nonprofit Organization
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Starting a nonprofit is an exciting and rewarding opportunity, but it can also be challenging. We at Nonprofit & Partners find important information and services to help guide you through the process:
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Types of Nonprofits
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A nonprofit organization commonly performs some type of public or community benefit, without the purpose of making a profit. There are various categories of nonprofits recognized by the Internal Revenue Service.
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Charitable or religious organizations
Social welfare organizations
Labour and agricultural organizations
Business Leagues
Veterans organizations

Each category has different tax benefits and requirements. While the majority of nonprofits are classified under 501(c)(3) of the IRS Code as charitable organizations, you should review the categories to determine the right choice for your nonprofit organization.