Nonprofit Literature Blog

Experiences With Giving Circles

Angela M. Eikenberry, an assistant professor at the University of Nebraska at Omaha has released a new article “Fundraising in the New Environment: The Benefits and Challenges of Working with Giving Circles.” Eickenberry provides a brief overview of giving circles and discusses the experiences of nonprofit professionals who have worked with them. She notes that, in addition to financial support, some nonprofits may find giving circles to be a source of volunteers.

In some cases, nonprofits may receive extra funding from members of giving circles, in addition to the initial gift. Other nonprofits, however, have found that some giving circles may discourage grantees from building relationships with individual members.

For more of Angela Eikenberry’s analysis, ask our librarians to see the latest issue of Nonprofit Management & Leadership (Winter 2008 - v.19, n. 2). A report on Eikenberry’s research can also be found on the Association of Fundraising Professionals web site.

What's your experience with giving circles?

Let us know as we finish off 2008.  Have a wonderful New Year!

-Jimmy Tom

Online Activism and Philanthropy

If you are searching for examples and stories of how the Internet can be used to promote social change, journalist Tom Watson’s new book, CauseWired, may be a good starting point. Watson documents the online support and response in the aftermath of Hurricane Katrina, the rapid growth of the Causes application on Facebook, the rising popularity of peer-to-peer philanthropy (such as DonorsChoose and Kiva), and other case studies. Watson also discusses organized political activism, as well as “flash causes” that occur suddenly online.

-Jimmy Tom

Organizations We Believe In

Charismatic individuals have the ability to inspire followers and offer hope during challenging conditions. What about charismatic organizations? According to consultants Shirley Sagawa and Deborah Jospin, charismatic nonprofits build their social capital and have strong internal and external relationships that can help generate enduring support from the community.

A charismatic organization must be dedicated to its mission, have a strong organizational culture, make decisions based on data, promote innovation, and hire and retain the right staff. With these core competencies in place, the group also needs to develop strategies for effective communication, outreach, and community involvement.

Sagawa and Jospin provide examples and lessons to help nonprofit leaders develop high-impact organizations and attract supporters in The Charismatic Organization: 8 Ways to Grow a Nonprofit That Builds Buzz, Delights Donors, and Energizes Employees (John Wiley & Sons, 2008).

-Jimmy Tom

What to Consider Before Becoming a Fiscal Sponsor

If you manage a nonprofit and are considering becoming a fiscal sponsor, be sure to read “At Last—A Way to Evaluate Fiscal Sponsors” in the newest issue of Nonprofit World.  This article, by Gerald R. Solomon of the Samueli Foundation, sheds light on a practice that can confuse many organizations. 

Solomon defines a fiscal sponsor as a nonprofit that allows a group or individual to use its 501(c)(3) status to obtain grants for a project.  The group (also called a service provider) may be engaged in a short-term project, or it may intend to seek tax-exempt status of its own in the future, or it may even be awaiting IRS approval of its tax-exempt status.  For the purposes of the project at hand, the fiscal sponsor is the one who receives money from the funder, distributes those funds to the sponsored group, and includes the grant in its tax returns.  Fiscal sponsorship thereby becomes a three-way relationship between a funder, a nonprofit, and a service provider. 

For those considering fiscal sponsorship, Solomon advises caution, emphasizing that the nonprofit must be prepared to bear all risk and liability for the sponsored project.  To help organizations decide whether to pursue such a partnership, he assembles a list of 16 standards to evaluate a fiscal sponsorship.  These standards relate to the nonprofit’s mission, its financial capacity and integrity, its human resource capacity, board governance, grants management, and technology infrastructure.

The November/December issue of Nonprofit World is available at the Foundation Center libraries.  For additional information on fiscal sponsorship, search the Catalog of Nonprofit Literature, using “fiscal sponsorship” as a keyword.

-Tracy Kaufman

International Giving by U.S. Foundations

Learn more about giving for international programs with the new report, International Grantmaking IV: An Update on U.S. Foundation Trends. The report indicates that from 2002 to 2007, international giving rose by more than 50 percent after inflation, versus a 22.3 percent increase in overall giving. International giving by foundations in 2008 is expected to surpass the record of $5.7 billion set last year.

The report was produced by the Foundation Center in cooperation with the Council on Foundations. More information and highlights are available for download at the Foundation Center’s web site.

Named Gifts

The new book, Naming Rights: Legacy Gifts & Corporate Money provides guidance to help nonprofits understand naming opportunities for schools, museums, and other organizations. The volume covers a number of topics related to naming rights, including the effect of the Internet, strategies for endowment gifts, and corporate sponsorships.

Published by John Wiley & Sons, the book includes a chapter to help organizations develop policies, create an inventory of naming opportunities, and choose a pricing strategy. Author Terry Burton has included a number of gift examples to help you determine the value of naming opportunities. You will also find sample policy statements from the University of Pittsburgh, University of Washington, and Campaign University of Washington.