New postage rate increases stick it to the nonprofits who use certain classes of direct mail.

To-Do Lists: Top Nonprofit Organization Tool (according to the 501cfiles.com unscientific poll).

An article in The Chronical of Philanthropy today discusses an economic stimilus package proposal released by the House Democrats. The proposal is for extensive funding of federal and state programs that channel money through nonprofits to ease economic situations for millions of Americans.
The price tag on this economic stimilus package is $825 billion, currently. The relief portion earmarked for nonprofit associated organizations comes to several billion dollars.
Highlights include:

$200 million to AmericaCorps for expansion by 16,000 members.
$50 million to the National Endowment for the Arts
$50 million to Youth Build USA, a group in Somerville, Mass. that provides jobs for low-income youths in constructing …read more

Tax-exempt organizations with years ending December 31, 2008 and larger organizations will begin the filing of the revamped IRS Form 990. The revised form is aimed at “enhancing transparency, promoting tax compliance and minimizing the burden on the filing organization,” according to the IRS website.
The form applies to all organizations with tax exempt status from hospitals to colleges to private charities. A core section of the Form 990 consists of 11 pages where the organization “tells it’s story.” Several schedules follow the core form based on assets and organization structure.
One major change to the core form is that the organization …read more

Considered the look of your nonprofit communications lately? Do they scream shoestring budget?

The IRS and the Treasury Department have issued new regulations that they claim will “streamline” the approval process for organizations seeking tax-exempt status for publicly supported charities.
What the regs do, realistically, is eliminate advance rulings for public supported charities. This became possible after a recent redesign of the federal form 990 which allows charities to demonstrate public support in a transparent way.
While I was surprised to see the advanced rulings for publicly supported charities disappeared, it makes sense. Statistically, almost 95% that receive an advance ruling are granted status at the end of the five-year period. That’s …read more

The notion among the general public that nonprofits should be able to operate successfully while maintaining absolutely bare-bones operations is not only annoying, says a California SPCA official, it is also dangerous. Writing in the Palm Springs Desert Sun, Fred Saunders offers a very cogent reason why:
These are misconceptions that hinder the growth of the organization and become obstacles to achievement of the organization’s mission. The nonprofit organization must be run as if it were a serious business if it is to be successful and continue to exist in a competitive market. To do this, the notion that a nonprofit …read more

If you don’t think that donors pay attention to how your nonprofit spends the money they give, think again. Check out this piece in the Daily Times of Salisbury, Maryland, on the success Lower Eastern Shore charities have had in funneling an atypically large percentage of their donations to their mission-oriented activities:
With the growing impact of nonprofits on the communities they serve, the issue of how those charity dollars are spent is often a deciding factor for donors.
The Lower Eastern Shore’s top nonprofits spend about 20 percent of their charity receipts on management and fundraising, an analysis of figures reported …read more

Consult your accountant, of course — your organization does have one, right? — but if you need an overview of the Internal Revenue Service’s new Form 990, you could do a lot worse than Larry Levy and Cathleen West’s piece currently running in onPhilanthropy. The two mix in explanations about new regulations with “practice tips” designed to get you going in the right direction. Wouldn’t want to get on Uncle Sam’s bad side, right? | 501(c)

The importance of policies encouraging and protecting nonprofit whistleblowers. | All Things Fundraising
What?! A nonprofit consultant might have something to teach to — gasp! — the for-profit sector?! | Getting Attention
A terrific primer for what to do when your organization’s CEO gets outta Dodge. | The NonProfit Times
The growing M&A trend among nonprofits. | Corporate Dealmaker
It’s wicked easy to subscribe to 501(c) Files feeds: Just click here and follow the simple instructions. As always, thanks for reading! | 501(c)