[michaelwyland]

I really like Steve and Ruth’s article because it’s one of the few recent that focuses on nonprofits taking charge of their own organizations and their own capabilities.

One tactic alluded to in the article can be fleshed out in the medium and longer term. Namely, the analysis and planning of new development/fundraising strategies designed to minimize reliance on a single funding source, whether governmental or otherwise. This actually involves analysis of funding streams that are philanthropic, contractual, fee-for-service, and/or other in nature.

It also involves the sourcing and mapping of all revenue streams, such as when federal funds are granted to states on an allocation basis for subgranting to local governments for grants to nonprofits, or where states grant funds received from the federal government to nonprofits directly. Too many nonprofits misunderstand the extent of the funding stream and assume funds granted by local or state government are local or state funds when the ultimate funder is the federal government.

There are analogous situations where the federal government grants funds to a national nonprofit which, in turn, subgrants funds to local chapters and communities, either directly or through other intermediary organizations.

[michaelwyland]

I’m really on the fence with this one. Should we also ask for postage, mailing, third-part fundraiser fees, fundraising salaries, and other reimbursements of the cost of raising funds?

At the end of the year, I gave a $1,000 charitable gift online. I was asked to pay an additional $39.XX to reimburse the charity for processing fees. I paid the fee, but I wondered how good their contract with the processing company was and what other fundraising costs I should be concerned with as a donor. I snapped out of it pretty quickly because I’m not an average donor, but it made the donation process just a little awkward for me.

It also occurs to me that raising the issue of credit card processing costs also raises the spectre of overhead costs more generally, especially for less knowledgeable and less sophisticated donors.

Again, I’m on the fence and not sure there is a single, simple answer.

[michaelwyland]

I think the answer is situational, based on the organization’s mission, service model, geography, etc. The inflation/recession factors cited in the question are short-term or, at best/worst, medium-term in nature. Hence, the response to them should be more tactical than strategic; i.e., “How do we adapt to today and the next 12 months while keeping our eyes on the long-term sustainability of our organization and its mission?”

Arguably, the only “wrong” move is to focus on only one business model and ignore the others. Each business model is subject to change by external factors, and each business model is changeable based on an organization’s internal factors.

[michaelwyland]

Wade:

I’m surprised you’d need access after dissolution. I chaired a nonprofit board that dissolved nine years ago, and I dropped off the records for long-term storage and eventual destruction (this vendor no longer provides the service!). I was never contacted to access records, even though it was a statewide organization with all Federal funding.

Thanks!

[michaelwyland]

Mark:

Thanks! I hadn’t considered digitizing the records. If successful, I could store the electronic files and one remaining agency laptop myself. I’d probably need to get guidance from the state AG’s office on whether electronic copies are sufficient to meet retention requirements.

There are no local vendors who provide long-term records retention services culminating in destruction. My consulting partner thinks this means there’s a business opportunity for us, but I’m not so sure.