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The Nonprofit industry has evolved into a business model giant and should be recognized as a force in the economy.  There are very few sectors where nonprofits do not exist.  As a business model the nonprofit mission is to bring a service with a mission of charity.  This means the service is affordable.  For those for-profit businesses where profit comes first, the nonprofit business model is a threat because it is a model where a business can be built and survive without ownership by investors. There is no reason to promote a nonprofit solution as the model that will destroy any particular industry.

However, I would ask this question, “If the price of a nonprofits service is not considered affordable or charitable should the entity be considered a nonprofit?”

Two nonprofit sectors that I place at the forefront of this discussion are hospitals and colleges/universities.

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Should nonprofit hospitals reap more in tax breaks than the charity work they provide?  That is just one of the questions that Congress has been asking during the debate of what is a fair price.  One trend that has been occurring is the decrease in medical charity to individuals in other countries from the US.  One group calls them “the neediest children,” another calls them “those with no voice” and another “those not visible and forgotten.”

Each argument seems to be missing that the tax code for charity was created for creating public good.  Further, that legislative intent was that public good was to basically impact the US. Therefore, should nonprofit hospitals be allowed to utilize their current rate structure for their charity work to non US citizens.

There are two question that health care reform will need to answer.

1. How should charity be measured?
2. Whom is eligible to receive that charity.

One attitude could be that with no clear distinctions every business and individual is supporting charity work in the health care costs they pay and therefore should be allowed to fully deduct said costs.

The other attitude could be that costs should be clear, up front and part of one pricing system.  The fact that none of us knows what to expect to pay for medical services is outrageous.  Even those who think they are fully cover find out that there are caps when serious illness occurs.

All of us need to support efforts that stop; ” Surprise you owe money for medical services not in your budget.”

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Making the most of your strengths.

Many foundations give out the approximately 5% of their assets each year.  If one was to review the purpose of the foundation set by its founder to its mission of today in most cases it has changed if the organization is older than 25 years. 

So there are two question to ask yourself when deciding to establish a foundation.

• Do I want to make the impact while as the donor I am alive or leave the impact to others to make on my behalf?
• Do I want to set a family legacy of philanthropic giving that lasts forever? 

Depending on your answer preserving cash or giving cash will be the key objective of the foundation that is established. 

According to the Foundation Center 2004 study limited-life foundations represent just over 10 % of the family foundations and has been growing.  I would agree with the likes of Warren Buffet and Bill Gates that today’s pressing issues should be ones focus.  Each year new family foundations are created with their own mission, vision and priorities that meet the concerns of the time. 

Is letting the Philanthropists of tomorrow resolve the problems of tomorrow and have the Philanthropists of today resolve the problems of today such a bad idea?

The economic crises of today has caused many foundations to cut back their issuing of grants or stop giving any grants to conserve cash.  This action provides clear evidence that a foundation is more interested in preserving itself than resolving the problems of today.  I would suggest that a Family Foundation close and move its funds to a Community Foundation.  Community Foundations are much better at keeping in touch with the pressing issues of the day and bringing new Philanthropist to the act of giving. 

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When the money comes easy an organization assumes that everything being done is within reason and acceptable to the donor.  When money becomes hard to come by the organizations practices and actions are reviewed.  The reality of which almost always results in finding gaps in communication and flaws in an organization.

An annual review of practices, processes, programs and the strategic plan is a must to keep strong and improve.

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Check out the Kindle by Amazon as a solution to increase the accessing of knowledge by students.  It is also a resource to create a reduction in the budget of the cost of textbooks for schools, it has an ability to search content, it has an ability for students to write notes in the margin and no back pain for the students from being loaded down with textbooks.  As an electronic instrument set up for individual needs and interests the IT unit of the school can ensure the tools for each student is one step away from them.

Great idea for businesses and foundations to support their local public schools and see an immediate result.

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Education requires teamwork from multiple people and institutions.  A good example is a recent fund raiser I was part of for my sons school.  Businesses donated goods and services for the auction, more partnerships were formed board members were responsible to bring 10 people to the party, parents donated their time and money, neighbors and friends attended a party.  Everyone was entertained, fed and made at least one new connection.  The result is money to enrich the education of students.

This is the fifth year the nonprofit group created to support a particular public school has built upon previous connections to improve.  The results show that even in a down economy, the strength of the past connections and building blocks helped to weather an expected decrease in giving.
Every public school should have a 501c 3 organization supporting their efforts because support for education starts locally.

Every one  says that school is boring but it’s not. It’s where you learn to do what you think is right. Be a Police man,  A dancer, a Football player or anything you want.  Well all that stuff you can do and anything else but you have to finish school .  If YOU learn about it, your wishes will come true. Don’t listen to your friends.  Telling you school is dumb, stupid and boring means they are not a smart person. It is not about how well you do.  The smart move and cool thing is staying in school.

If you are thinking school is not for you, make your own home school.  But I think you should go to school so you can learn new things.

Heh adults support us kids to learn more.  Consider helping your neighborhood school.

Write me and tell me what you did to help.

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Economic Downturns are times to create opportunities of reflection and retooling of a business.

What is your mission?
What is your vision?
What is your targeted population?
What does the targeted population need and at what price?
Where does the money go?
What outcome occurs because of said expenditure?

People by nature do not like Change.
Economic downturns force decisions that should have been made in years past.

Business 101 “Evolve or Die”

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Congress has done its piece.  Prepare now by partnering with other nonprofits, foundations, donors and businesses to maximize the federal dollars to go even further.

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Seek out corporations whom are willing to have their employees perform charitable work for your organization.  Companies do not usually advertise their commitment towards backing an employees’ volunteer effort.  This asking of an employer for their support should be structured to ensure that they will see a measurable result.

These companies usually pay the employees during this volunteer time.  Imagine showing this match when seeking other funding for your programs.  Imagine the success of one employee as a volunteer helping to identity for their fellow employee other potential volunteer opportunities.

During these tough economic times most companies are likely to keep up the efforts of their volunteer program.  Studies have shown that paid time off for volunteering can help a company in its recruiting and retention of employees.  Further, at an employees suggestion, companies often are willing to help out in bigger efforts for the nonprofit.

For more ideas on how to get corporations to invest in your organization check out the three documents noted below.

Giving in Numbers: 2007 Edition Link

Giving in Numbers:  2008 Edition Link

Business’s Social Contact: Capturing The Corporate Philanthropy Opportunity Link