I am the type of person that likes to be informed by facts.  I read daily to keep up with as much of the information as possible.  I have found that the connecting of a fact to a  particular issue is not always easy for every individual.  I have nicknamed it ”The Day Job Barrier.”

When the National Committee for Responsive Philanthropy released their report in March of 2009 there was strong criticism of the report.  However, the debate should be viewed in the context of a thought out documented means to spark discussion. 

The one aspect of the report that should be adopted by all entities associated to the nonprofit industry is measuring the goal of meeting or exceeding of benchmarks. 

The both line is to stop talking about exploring what benchmarks to follow and adopting a set of best practices.  It just might make the nonprofit industry new friends in high places.

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The Internet is an ever changing entity due to the many companies adding options on how to interface with it.  There is so many features to use for free to keep informed.

The number of nonprofits still using traditional communication tools is just one reason that overcoming the economic recession has been hard.  However, for some nonprofits they have actually grown.  So try the new, especially if the old is costing you money.

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The Chronicle of Philanthropy conducted a survey of 325 large charities and the result was a substantial number making salaries placing them in the top 1% earners. For a peek at the list check out the NPR article through this link. 

I am in agreement with many in Congress that these salaries are not in line with the intent of the creation of the 501 C 3 tax code for charitable organizations.  The top executive in the United States is the President.  This Chief Executive makes no where near these salaries and oversees the largest economy in the world.  A nonprofit’s mission should be first and foremost where dollars are spent.  The compensation of executives at these organizations is clearly out of line with the organizations mission. It says to the community that the organizations have so much money that they can afford to pay large corporate salaries for an outcome that is charitable.  The executive receiving the compensation certainly is not being charitable to the organization by accepting a salary placing them in the top 1% income bracket.

Any nonprofit who says that they must pay the high salary exceeding that of the the Office of the President of the United States to recruit the most qualified person has placed more importance on a person then on the mission of the organization. Placing importance on a single person instead of the institution risks the mission of the organization.

I support Congress passing legislation to limit compensation on executives.   However, lets make it simple.  No salary for a nonprofit can exceed the salary of the President of the United States. If a nonprofit is to exceed said salary they must convert to a for-profit.   Plain and simple.

I believe Socrates would have questioned the merit of the decision by which such a decision had been made by a Board of any nonprofits wishing to pay these extremely high salaries.

For me these organizations represent the beginning of a list of nonprofits for donors not to donate to.

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It is not so important to be the first nonprofit to create a service or an approach to be the most successful.  It is more important for a nonprofit to understand how the organization got to where it is today, identify where it wants to be and devise a plan to get there.  The plan should include an opportunity to learn, the means to identifying those components of the organization that are successful and those that need work.

Another aspect to an internal review of the organization is to review the transition plan for changing leadership.  A majority of the nonprofits will be going through the retirement of the current leadership.  The switching over to the next generation of leaders is better served by recruiting at least six months before the leadership change.  Institutional memory and community relations are difficult to maintain after a turnover in leadership.

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There are a number of organizations that have been promoting themselves as the best source to obtain ratings for charities.    The Better Business Bureau, Charity Navigator,  and American Institute of Philanthropy are the most popular.

However, they are all misleading since they only report on a very small fraction of nonprofits when compared to the 1.6 million plus nonprofits that exist.

I would promote that anyone interested in learning about a nonprofit first start with Guidestar for basic information and to obtain the 990 of the nonprofits that interest you.  It is the best way to truly know the financials of a nonprofit.   Check out the web site of the nonprofit.  Send an email with questions to the nonprofit.

Nonprofits have to realize the importance of promoting their organization through the Internet.  Utilize the fact that there are many sources of information one reports to government agencies that are in the public domain.   Do not let outside organizations take control of your story.   Link them to the stories you tell all of the time and the reports you have created on the results.

Nonprofits should unite to demand that ranking organizations conduct their rankings on nonprofits by industry or those with similar missions.

Promoting large organizations does not mean effective use of the mighty dollar.  However, it is a means to hide high paying salaries.  The highest paying salary information listed on the 990 ranking organizations seem to have given a back seat to identifying the use of funds.  If you one looks at these numbers it will give one a better sense of whether it is about mission or recruiting and paying top dollar regardless of results.

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Stop thinking of just getting money from a company.  Stress a way for the company to have its employees to do volunteer work for your nonprofit and get paid by the company to do it.  Have a list of projects that a company can work on and see completed.  Satisfaction will always bring people back for more and they just might bring more friends or be a great source for referring more companies to you.

The charity work alternative to a party does not have to be centered around the holidays.  It might be during a slow time for the company or a specific day that represents something to the company.  It just might be a great tool for the company promoting itself in the community it serves.

Building these relationships takes time, but that slow building ultimately will bring the organization across the finish line a winner every time.  Consistency pays out.

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The conversation on making health care affordable seems to be forgetting its main goal.  Getting people insured at a level they can afford.  I would advocate that anything above 6% of an individuals income is unaffordable.

So Congress needs to stop having the conversation like their planning for some other planet of Utopia.  The public option needs to be a serious consideration to bring costs down.

I have provided below an example of how a person making $35,000  may allocate their income.

LIVING WAGE CALCULATION

Yearly $35,000

Monthly $2,917
I have provided a category, percentage, the yearly amount for the category and the monthly amount for a category.

HOUSING 40%   $14,000   a $1,167
CAR EXPENSES  5%   $1,750      $146
DEPENDENT CARE  3.50%   $1,225      $102
HEALTH CARE/DENTAL/VISION 4.00%    $1,400      $117
HEALTH CARE EXPENSES 2.00%    $700          $58
FOOD  6.00%    $2,100      $175
UTILITIES 4.50%    $1,575       $131
RETIREMENT/COLLEGE  10.00%   $3,500      $292
SOCIAL SECURITY TAX  7%      $2,450      $204
MEDICARE TAX   1.45%     $508      $42
LIFE INSURANCE  1%           $350     $29
TAXES   16%      $5,600      $467
TOTAL  100%

Congress try your hand at allocating what expenses use up ones income.

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The Pew Center on the States reported 7.3 million adults are in the US correction system, which amounts to 1 for every 31 adults.  $50 billion annually and growing.  It is second to Medicaid of state expenditures. 

• If you live in Georgia it is 1 for every 13 adults.
• If you live in New Hampshire it is 1 for every 88 adults.

The racial gap is nothing to be proud of.

• 1 of every 11 black adults
• 1 of every 27 Hispanic adults
• 1 of every 45 white adults

Costs on average are $29,000 for sending a person to prison.

Costs on average for community probation and monitoring is up to $2,750.

The Pew Center report provides an outline on how to deal with the growing problem.  I would highlight their findings on evidence base practices and performance measures as the correct means to decide what programs to fund. 

It is my opinion that a criminal system that is designed to ignore individual situations and the severity of the crime creates a failing system which can never achieve its outcome goals.  

Those programs that should be increased are those who show an impact in reducing recidivism. 

Pew Center on States Link:

http://www.pewcenteronthestates.org/report_detail.aspx?id=47134

Nonprofits should use the report to better understand the direction of evidence base practices and performance base contracting. 

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Scientific proof, a proof of concept and blind faith are three variables from which one can decide to operate. The reality of science provides a mix of emotions and reactions as discovery provides more about the inner workings of human kind development. 

Instinct as it relates to evolution does not mean anyone has to agree is always appropriate but one must agree in spirit it is there.  The same must be agreed upon as it relates to Creation.  Scientifically, such will likely never be confirmed, however the concept is not a bad place to place the unknown or to put ones faith towards. 

I would like to place one thought into the Creation concept.  The science is present showing the inner spirit of species to care about one another and to live in harmony. 

Society has created formally into law the means for it to be institutionalized and that is through organizations known as nonprofits and non governmental entities (NGO’s).  The role of nonprofits to be the base to the moral means of reaching the highest level of a caring society I foresee as a growing trend.

Further, I foresee the growing of more partnerships between for-profits and nonprofits to balance the return to society and the return to investors. 

Evolution of society continues and both theories are relative and not mutually exclusive.

Nonprofits should find those partners that they can evolve with and strengthen those bonds.  The strongest will survive. 

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Congress is famous for complaining and playing political games with important decisions. In the meantime, businesses spend millions to support foreign countries due to US reliance on foreign oil.

Nonprofits do not need to wait for Congress to begin to lower its energy costs.  Nonprofits should look to foundations and individuals to support the one time cost of installing alternative systems and end up saving in their operating costs.

In the states of California and Massachusetts there is the option to go solar and not have to buy the system.  Thereby, lowering the costs to a few thousand to have installed.

Another option for nonprofits is to think more about establishing cooperatives to lower their energy costs.  Bulk purchasing and implementing a plan energy conservation program as a group will save tens of thousands of dollars when done in conjunction with others.

In a sampling of providers in any particular zip code there seems to be a sufficient number of organizations in any geographic area to make this work.