For Those Big Donation Moments: Make Gift Agreements Standard

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Many nonprofits have at least one story to share of a game-changing gift. That gift may have allowed a facility to be built, significant equipment to be purchased or programming to expand. Such gifts might come in the from of designations (bequests) made in someone's last will and testament.  Such gifts also might come from appreciated assets like stock that allow a donor to see all value to go a nonprofit mission and avoid capital gains tax. 

The list of potential scenarios involved in a major gift is long and varied. The amount that comprises a major gift varies for each organization receiving the generosity and their fundraising history. 

What one thing can you do to best make every possible effort at a strong fit and lasting donor relationship with your major donor? Ensure executing a gift agreement becomes your standard operating procedure for major commitments made to your organization.

Capturing exact details and potential future scenarios of your organization's major gift with the help of experienced legal counsel will be among the best investments you can make in moving your mission forward ethically and completely. 

A recent high profile major gift court case is one illustrative example of the critical nature of gift agreements.  Music icon Garth Brooks was recently awarded $1,000,000 in a breach of contract lawsuit in Oklahoma for what a jury determined was breach of contract over a major donation he made to his hometown hospital. If you're not familiar with the story, you can read the details here. 


Significant time, emotional pain and expense might have been saved by all parties to this lawsuit if a written gift agreement had clearly captured Brooks' wishes to honor his late  mother. 


What has your experience been with gift agreements for major gifts? Please add your thoughts below.

Memorial Gifts: A Most Meaningful Donor Connection Opportunity

In visits with public safety organizations across Iowa, I have learned a common thread in donations coming in are memorial gifts. While these gifts are virtually impossible to predict but are among the most emotional your organization might receive. What an honor to have a life memorialized with a gift to your organization! Memorial gifts typically come in to public safety and other nonprofits in the several ways, including:

1. The family of the person who has passed away asks that any memorial gifts be designated to your organization. 

2. Someone who knew the person who passed away chooses to make a memorial gift to your organization due to their existing affinity for your good work. 

3.  The person who has passed away had a provision in his or her will that allowed for a gift to your organization.

After you receive such a meaningful gift, what are your next steps? Here are some ideas you might apply to ensure you bring honor to these incredible gifts and the life being  honored with them:

1. Mail a prompt and personal thank you to each person making a memorial gift. Aim for 24 hour turn around on these letters or notes. 
2. Track and provide the family with a list of those who make memorial gifts directly to you. 
3. Fill a current and relevant need with the memorial gift. Leaving funds in a checking or savings account does nothing to honor the life of the person for whom the gift was made. 
4. Communicate the impact of the memorial gift to the donor(s). Yes, this probably means a second communication to your memorial donors and the family of the person who passed away. 
5. Stay in touch with the family of the person who passed away. If possible, invite them and your memorial donors to your organization to see their support of their loved one at work. 
6.  Consider whether you have an appropriate place at your organization to add a plaque listing your memorial donations with space to add future names.
7. Immediately enact provisions to ensure any gift restrictions are honored. For example, if the gift specifies that it be used to cover volunteer training costs, setup a separate account  with the gift proceeds and only process training expenditures through that fund. 

Now it's your turn. Please share in the comments below what has worked well for your organization to honor your memorial gifts. 

If You Don't Know Where You Want to Go, How Will You Know If You've Arrived?

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Your nonprofit work is exciting in its mission focus. It's your chance to give back in a format you believe in. Thanks for what you do!

Especially in all-volunteer organizations, it can also at time seem overwhelming. How do you make the most of limited time? Where should the focus be, given the myriad of different directions that could be followed under the umbrella of your mission.

In terms of moving your nonprofit forward, if you don't know where you want to go, how will you know if you've arrived? Without overall goal planning, you could end up just treading water feverishly in the same place.

Strategic planning helps bridge the gap between limited resources and limitless directions. It can be conducted in a series of in person meetings. It can also be supplemented with online surveys, phone interviews and more. It is a nice opportunity to give all board members and/or general membership a chance to be heard.

Many new strategic plans cover a three year period, with opportunities to update as operational situations change. Too many realities change  and participants can get burned out if longer time frames are utilized. 

Utilizing an outside facilitator for strategic planning helps keep your process on track and helps ensure process and input impartiality. 

FlashPoint offers customized strategic planning facilitation services  that reflect your current realities. Contact us to discuss your strategic planning process today.

Now is a Great Time to Get Ready to File Your Nonprofit's 990

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Whether you're filing your own taxes or getting all your information organized for your accountant,  the United States is now knee-deep in income tax preparation season for the 2011 calendar year. 

Income tax preparation season is a great reminder to keep filing your IRS Form 990 if your nonprofit is a 501 (c) (3) organization. 

If  your nonprofit is a 501 (c) (3) and your fiscal year ended December 31, 2011, your 2011 990 is due to the IRS no later than May 15, 2012. If your nonprofit's fiscal year ends on any other date, your 990 is due on the 15th of the 5th month following the end of your fiscal year.

If your nonprofit's 2011 gross receipts were $50,000 or less, you may file a 990-N, or an e-postcard, directly on the IRS website.

You may find a full listing of the eight items you will need to file your organization's 990 here.

You may find a list of frequently asked questions about filing your organization's 990 here.

When you've read all the IRS information and feel ready to do your actual 990 filing, you may do so here.

Once you complete the filing process, you will receive an email confirmation of your filing. Save this email and back it up at your office or with other organizational volunteers.  These IRS receipts for your nonprofit are as critical to your organizational record as your personal tax returns are to your own finances.

What tips and ideas do you have to share regarding filing your 990?

If you're considering applying to become a 501 (c ) (3), the links above will help you understand your annual filing requirements.

Submit your ideas, suggestions and questions for future FlashPoint blog posts here.