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6331 Module 1
- 2. Nonprofit versus
Charitable Nonprofit Organizations
• Nonprofit organizations may be eligible for
certain benefits such as state property,
sales, and income tax exemptions.
• Nonprofit charitable organizations are set
up and operated to improve some part of
society without a profit motive.
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- 3. Nonprofit versus Not-for-Profit
Organizations
• Not-for-Profit organizations are devoted to
some sort of activity, such as a hobby.
• Nonprofit organizations or agencies are
founded for purposes other than profit
making.
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- 4. Nonprofit Fundraising Registration
• The Federal Trade Commission is the
government’s chief consumer protection
agency. Laws may vary state to state.
• Applicants must submit determination
letters, audit paperwork, bylaws,
fundraising contracts, IRS 990 forms,
notarized signatures, and fees.
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- 5. Unified Registration System, 1997
• The URS was developed to merge the
information and date requirements of
those states that require registration of
nonprofit organizations, which solicit for
funds within their jurisdictions.
• As of August 2010, 37 states accepted the
URS.
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- 6. Three Stages of the URS
1. Assembling an inventory of registration
information requirements from all states.
2. Constructing a form which includes all (or
most) of these requirements.
3. Persuading states to agree to this
“standardized” format as a replacement for their
own forms.
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- 7. Unrestricted versus
Restricted Funds
• Unrestricted funds are available for the
agency to use toward any purpose.
• Restricted funds are limited to a
designated purpose as per the donor’s
request or are raised for a specific
purpose or project.
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- 8. Temporarily or
Permanently Restricted Funds
• Temporarily restricted funds have donorimposed restrictions; either by time or
purpose.
• Permanently restricted funds are also
restricted by the donor and never expire.
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- 9. Understanding the
Ethics of Fundraising
• Agencies may be tempted to seek funding
wherever they can find it.
• The leaders of the organization must
embrace ethical decision-making and
recognize the importance of values and
ensure that no one individual is to profit
from the organization.
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- 10. Some Fundraising Pitfalls
• Failing to have a solid team in place.
• Failing to motivate the team.
• Failing to have a mission statement and
set of goals.
• Failing to plan, develop evaluation, and
seek consultation.
• Failing to choose the best fundraisers.
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