Resources

Do you plan to start a new nonprofit? Make sure you know what is involved! It can be a lot of work.

Legally, nonprofits exist in a different space from government or business; more importantly, they provide essential services that governments and for-profit businesses often cannot or will not deliver. Here is how the National Council of Nonprofits defines our role. Donors can claim a tax deduction for their gifts to 501(c)(3) groups (but only the “public charity” kind). In exchange, they pay no/lower taxes. In the Adirondacks and many rural areas, the needs are vast, budgets are small, and competition for the few sources of funding is great. Fundraising in general takes more time. State and Federal grants come with requirements that are challenging for small nonprofits to meet.

Building and maintaining successful Organizational Leadership

1. Train and support your nonprofit board to represent and strengthen the community, lead with vision based on the life-cycle status of the group, govern the institution using best practices, and provide fiduciary oversight.
2. Invest in a clear Strategic plan and Vision for the organization, with buy-in from board and staff members
3. Tips for creating the first board

Planning for your organization’s Financial Success

1. Map the fundraising work out over a fiscal year, to include cultivation of core donors, appeal letters, grant deadlines, fundraising events, and general communications to your audience.
2. Locate and have available: board-approved annual budget, case statement/project descriptions, annual report (if you do one), IRS determination letter. Maintain donor and grant information carefully
3. Plan for yearly revenue needs from a diverse mix of sources (an example to adapt to your circumstances):
   1. 60-75 percent individual donations (Unrestricted for Operations)
   1. 15 percent membership
   1. 15 percent grants (Restricted for Programs; not budgeted)
   1. 5 percent interest income from an endowment/planned giving
   1. 5 percent board gifts
4. Maintain a reserve of three-six months operating costs at all times

Key principles of Fundraising

1. Rule of Thumb #1: It is all about Relationships. Find and cultivate champions; they will be partners in accomplishing your mission. Thank donors immediately.
2. Rule of Thumb #2: It’s about Being Engaging and Transparent. Review your communications with the reader in mind: what will their takeaway be? Will they want to be more engaged? Will they want to give more? Will they feel confident about their decision to invest? Will you share impacts with them?
3. Typically, 70-80 percent of your funding will come from 20 percent of your donors. Spend the most cultivation time on them.
4. Measure (with data and stories) and Communicate about the impacts your organization is having, with donors’ support
5. Teach everyone in the organization to be a fundraiser and ambassador for your mission.

Making your group Donor-friendly

1. On your website, make sure that board bios are up to date, organization information is clear, donate button is easy to find and electronic payment option is operational
2. Keep your GuideStar profile (GuideStar is a comprehensive database of every registered nonprofit; with public information, including tax IDs, contact information, website links, and 990 tax returns, which donors can use to get to know your organization) or set one up on Charity Navigator
3. Keep your NYS SFS (The Statewide Financial System is New York State government’s accounting and financial management system used to manage contracts and payments) up to date
4. Consider subscribing to GrantStation (GrantStation offers nonprofit organizations, educational institutions, and government agencies the opportunity to identify potential funding sources) or other online research tools to find funders.
5. Apply for what supports your mission, not opportunities that will add to your workload unnecessarily

Helpful Resources

Nonprofit networks to support and use:

1. Adirondack Nonprofit Network | Adirondack Foundation
2. National Council of Nonprofits
3. New York Council of Nonprofits

Professional development newsletters to follow for free training (sample list):

1. Chronicle of Philanthropy | News, Opinion and Advice about Philanthropic Giving
2. Funding for Good
3. Candid | Foundation Center
4. Capital Campaign Pro | Campaign Support System for Nonprofits
5. Webinars | FreeWill

Guidebooks every nonprofit should own:

1. How to Raise $500 to $5000 from Almost Anyone, Andy Robinson
2. Fundraising for Social Change, Kim Klein
3. Train your Board to Raise Money, Andrea Kihlstedt and Andy Robinson
4. What Every Board Member Needs to Know, Do, and Avoid, Andy Robinson