Cash Crunch — Clearly this started with local government which became cash strapped due to lower tax collections, less funding from the State and huge cuts in Federal funding – a perfect storm.  Nonprofits from the arts to zoos had to dip into cash reserves, conduct emergency appeals and in some cases invade their endowments.  The social service sector saw demand for its services reach record levels.  Social media, like Facebook, kicked into high gear at many organizations.  Special requests for additional major gifts from longtime individual donors spiked.  It was a dash for cash.

Collaboration — In some situations, nonprofit leaders turned to grant making foundations for a special one-time grant to make it through the tough times.  A few succeeded.  However, many were quizzed by foundation executives as to why they hadn’t done a better job of seeing the cash crunch coming and were told they now need to consider collaborating with a similar agency if they expect a grant.  Collaboration is here to stay.

Consolidation — Those that did not give serious consideration to collaboration, found themselves facing consolidation of programs and services due to dwindling resources.  In other words, more focus on the core mission.  In some cases, even layoffs of staff.

Lessons Learned/Suggestions for Success in 2012

• Don’t let your organization get caught in a similar cash crunch in the years ahead. We have heard from dozens of board members during this recession and they are quite burned out and can’t wait until their term is up.  As they verbalize their experience to others, this will make enlistment of new board leaders a real challenge in 2012 and beyond.  The most common remark, “If only we had done a better job of strategic planning and building up our endowment to weather such ups and downs in the economy.”
• Follow the money.  Keep in mind 85% of all giving in the U.S. is from individuals.  It’s so easy to become dependent on that county grant of $100,000 each year and not have to organize a donor club of 100 friends at $1,000 each.  We call this kind of donor club a Living Endowment, as the 100 friends are giving $100,000 or the equivalent of the earnings from a permanent endowment that can generate this amount.  At today’s interest rates it would take an endowed fund of several million dollars to generate $100,000.
• Update your case for giving. Make it more compelling, urgent and relevant.  Test it, tweak it with donors, potential donors and friends. Make sure your case is about worthiness, not neediness.  Explain why your organization is worthy of the donor’s gift.  Donors respond to the former.

Call a Time Out

Step back and reflect. If there ever was a time to assess the past and think strategically about the future, now is the time.  No matter how busy your organization is keeping up, struggling to survive, there is always time to hold a retreat and ask these five key questions:

1. Where do our philanthropic resources come from now?
2. Where must they come from in the future?
3. What is our plan to keep the donors we’ve got, upgrade them and to obtain new donors?
4. What human and financial resources do we need to attract increased philanthropic support?
5. Where can we get assistance in securing those resources?

Consider Outside Assistance to:

• Conduct prospect research, a screening/wealth analysis of your current donors
• Conduct a Rapid Organizational Assessment to determine what is working and what needs fixing
• Plan and facilitate a day long board retreat to set strategic goals
• Conduct an Online Donor Satisfaction Survey
• Conduct a study to test the feasibility of your plan to increase philanthropic support
• Train volunteers and staff on how to solicit major and donor club gifts
• Ratchet up your planned giving efforts to take advantage of the trillion dollar transfer of wealth

All the best for a prosperous 2012.

          Jim Donovan                                                             Bill Carlton                                                                                                                  

Collaborating To Bring a Half Century of
Best Practice Experience to the Nonprofit Sector

For a free no obligation consultation, call or email us:

In Florida Jim Donovan at 407-321-0024 or email us at:  dmimgt@aol.com

In Colorado Prospect Screening, Barry Donovan at: 303-346-9001 dmimgt@aol.com

In the Northeast/New England Bill Carlton at: 1-800-622-0194.  Wlcarlton@aol.com

Nonprofit Financial Stability in Tough Times

Interview / Insights

Joe Bert, President & CEO
Certified Financial Group
Co-Founder of the Donor Motivation Program
Altamonte Springs, Florida

Q.  Board members of nonprofit organizations are struggling to keep money flowing in this economic downturn.  Many can’t wait until their term is over and will leave the strategic question / solution to financial stability to new and fresh board members.  After all, who wants to go through another cycle like this one?  What advice do you have for the new board?

Bert:  First you have to recognize that nonprofits are divided into three categories – those with sufficient staff, limited staff and no staff.  The first group has the luxury of thinking strategically and looking out on the horizon for several years and saying, “We aren’t going through this again.”  The others are challenged with keeping the cash flowing, and if they can find time, to engage in strategic planning.  In the latter group, that has no staff, everything is driven by volunteers.

Nonprofit boards must make plans to be here tomorrow to fulfill their mission. Otherwise they will go out of business.  This means making plans for long term financial stability.

Q.  What is the key to long term financial stability?

Bert:  Recognizing the financial impediments in tough times.  Too many nonprofits are in the “business as usual mode”.  They rely on special events, government grants and direct mail donors.  In tough times sponsorships for events dry up, governments cut back and some donors give less.  This causes what I call the SPS — Shortfall Panic Syndrome.  What makes matters worse is that most organizations in Central Florida never do get around to focusing on the long term.  That’s where planned giving comes into play.

Q.  So the key is having an endowment?  But if so, how can that help given the low interest rates today?

Bert:  At today’s rates, say 1% return, it would take $10 million to earn $100,000 in an unrestricted endowed fund.  As rates go up, so do the earnings.  The question is, when does an organization get serious and start building up that endowment in anticipation of better rates of return in the years ahead?  Again, it is a strategic board issue.  Frankly, I think the former chairs of the board would be a good group to convene to start this process as they have organizational history and insight.  And, they can devote the time to the strategic planning process because they aren’t attending monthly or quarterly board meetings.

Q.  What is the key to getting started on building up a financial cushion, reserve or unrestricted endowment that can fund unplanned, unmet and unanticipated needs of the organization?

Bert:  Focusing on the donors you have now.  They are the best prospects for future and planned gifts.  Put them first.  Make their financial planning goals first and foremost.  Discuss with them how they want to take care of their spouse, their family and then leave a legacy of giving through a planned gift to your organization.  Most folks will not give to their capacity until they are assured that they are not jeopardizing their family’s financial security.  This is why comprehensive financial planning generates far greater planned gifts.

Q.  How can nonprofits do this with limited or no staff?

Bert:  They can’t.  It takes an investment of time and money.  It also requires letting go and working with professionals in planned giving.  Too many groups think they will lose control of the donor once they are working with an outside professional. They say they will run their own planned giving program.  Trouble is, they don’t get around to it because of too many distractions.  Sometimes this means their donor becomes a prospect for a competing organization which is doing planned giving.  You want professionals that put the donor’s interest front and center, period!

Q.  What does a good planned giving professional do for the donor?

Bert:  Review ways to increase their income and not assume present investment strategies are the correct ones.  Second, provide future income for their family.  Third, define their giving legacy goal. Last — give less to Uncle Sam.

Q:  What programs do you offer to help nonprofits with their donors?

Bert:  The Donor Motivation Program^TM offers to planned giving/development officers and nonprofit organizations, a qualified and charitable-minded catalyst for motivating individual donors to meet community needs while achieving their charitable goals.

We offer a series of presentation services to educate and inform potential donors to view their wealth as a conduit for leaving a legacy based on ‘fingerprints’ of their life values. Our donor motivation team speaks with authority on the impact of philanthropy using insightful examples based on the knowledge and experiences of well-known authors, industrialists and wealthy families from America’s past.

Using layman’s language and illustrated concepts, donors can easily understand how taxes paid under the U.S. Tax Code can be redirected as voluntary social capital instead of as involuntary taxes, and how supporting charity during one’s lifetime leaves not only a legacy, but wealth to future generations.

For more information contact: 

Joe Bert, President & CEO
Certified Financial Group & Co-Founder of the Donor Motivation Program
Altamonte Springs, Florida
407-869-9800 / 800-393-9900
www.FinancialGroup.com

A main benefit of being a consultant in philanthropy is that you get to meet a wide range of major donors across the nonprofit spectrum – literally from A to Z, arts to zoos.  Oftentimes it’s in the context of an interview for a campaign feasibility study.  For more than 25 years our firm has conducted dozens of studies and interviewed hundreds of major gift donors.  Here are some insights/quotes from these donors on how fundraising staff and leadership volunteers can do a better job of asking them for a major gift.

“Spend time with me.”

In other words — make an effort to get out of the office and be with the donor and/or prospect.  Facebook is not engagement.  Face time is.

“Encourage me to give at a level my peers will approve of.”

Donors seek the approval of their peers and do not want to give less than they are capable of.  Aim high.  Their friends read the Honor Roll listings at your website and in your newsletters.  Donors often ask me where they should be on a gift chart used in the study so they are not embarrassed by giving less than what is expected of them.

“Ask me before the Holidays.”

Most major donors give at year end for tax purposes before getting busy with family and company holiday parties.  Fall is the best time of year to ask for a renewed and/or increased major gift.

“State your case to me in a concise manner and allow me time to ponder it and ask questions.  Fundraisers too often talk too much.”

Ouch!  People are busy today, more so than ever with so many ways to communicate – e-mail, Facebook, Twitter and so much information via so many 24 hour news channels.  Donors are bombarded with information.  They don’t have time to cut through the clutter.  Those who keep the case concise and to the point help donors understand the need for their gift and appreciate their time not being wasted.

“Send me my gift receipt for tax purposes right away and then stay in touch. Don’t be a stranger until same time next year.”

Staying in touch, we have been told by donors, means by phone and in person.  E-mails won’t cut it.  When I was working at Clemson University, I had a list of donors that needed a lot of attention.  So I would give it to them.  Actually, I would tell them the President of the University wanted me to be sure to check in with them and thank them for their support.

For other tips check out our publication, Take the Fear Out of Asking for Major Gifts by clicking here.

Jim Donovan, President /CEO

Jim Donovan, President, DMI

1. Donors primary concern is usually their FAMILY not the charity. Most donors are worried about making a planned gift, because their fear is that a gift to charity will reduce what they are able to leave their family.  Recognize this concern and approach planned giving from a donor- centric position.  The largest planned gifts come when you can show donors how they can actually increase both their annual income and the amount they can leave to family through proper planned giving.

1. Don’t be the Grim Reaper. Face it; no one likes to talk about death or think of their own demise.  So when a planned giving professional calls to say “Please consider making a gift to our charity in your will” what donors HEAR is “Hey, we’ve come up with a savvy way to profit from your death, so we are just waiting on pins and needles for you to kick the bucket.”  Is it any wonder why donors are hesitant to take action?  Go beyond testamentary bequests and focus on what donors can do during their lifetime to start leaving  “LifePrints” (but don’t forget #1….donors want to make sure their family is taken care of first and foremost!)
   

1. Send a consistent message. When a donor is considering making a substantial gift, they want to know that the charity will be around for the long haul.  The best way for a charity to communicate this is to send a consistent message with your marketing and planned giving efforts.  Don’t try to reinvent the wheel.  Those organizations who constantly try out new methods, end up with a start-stop-start-stop approach.  If you decide to give planned giving seminars, do them regularly (we suggest once a quarter).
   

1. Don’t limit your outreach to just your “A” donors. Due to time and budget constraints most planned giving officers direct their attention to the donors on their “A” list.  However, this approach overlooks those donors on the B or C list, who may be the millionaire next door.   The well known book “The Millionaire Next Door” by Thomas J. Stanley reveals that the median annual income of millionaires was $131,000. These millionaires accumulate their wealth by living below their means.  It would be consistent with the demographics frugal lifestyle to refrain from making large annual gifts to a charity.  However, they could be prime candidates for planned giving.  So don’t ignore those donors who make smaller or sporadic annual gifts!

1. Donors want to leave a legacy. Create a lifelong connection with your donors by showing them how to leave a legacy beyond their financial wealth.   Planning encompasses three distinct dimensions: financial, personal, and social.  Focusing only on the financial dimension ignores the most important dimensions to the donor, family and social.  Planned giving is the most effective when all three dimensions are skillfully blended.   Some tools that will help you integrate the personal and social dimensions include ethical wills (“Legacy Letters” by Jodi E. Murphy, J.D. is available upon request) and Priceless Conversations (recorded audio conversations on specific topics that will assist your donor in gaining clarity on what their vision, priority and goals are).

To learn about the free Donor Motivation Seminars, call 800-393-9900 or contact Barbara@FinancialGroup.com or go to: www.donormotivation.com .

To view a PDF with information on the June 23, 2011 DMP Seminar, click here.

My Word: Racing for charity dollars

What do the recent Kentucky Derby and philanthropy have in common? They each have a lot of money at stake in regard to the outcome, and both attract a special kind of person.

The derby is about the fastest horse crossing the finish line in the shortest time. Philanthropy is competitive as well, as nonprofit organizations are chasing millions of dollars in contributions at the fastest pace in decades due to the recession.

Clearly, the derby draws horse lovers, of which there are thousands right here in Florida. Philanthropy, according to the Greek definition, philos (loving) anthropos (man), attracts lovers of mankind.

Today, nonprofit organizations in pursuit of philanthropic support are in stampede mode as they try to replace the cuts in government funding at all levels, keep the donors they have and find new ones to help close budget gaps. Those organizations that obtain a majority of their income from special fundraising events are far back in the pack. They have seen many of their sponsors dry up. Other groups dependent on government grants are racing to find new donors.
The combination of declining sponsorship donors, government cuts, donors worried about their declining portfolios and organizations expecting the same results from their special events is forcing nonprofit leaders to reconsider their fundraising strategies.

How can they do better? By riding a horse I call Best Practice. He has been a winner every time. He competes and wins despite recessions, a declining stock market and negative news. Best Practice deploys three key strategies to win.

First, he creates and researches a sufficient pool of individuals who not only have the ability to make major gifts to his nonprofit organization, but have a passion for the mission, be it to wipe out cancer in our lifetime, rescue an abused dog or clean up the Everglades.

Second, he leads by example. He makes his gift first. Then he invites others to join him by making the case for giving in a clear, concise and convincing matter.

Finally, Best Practice surrounds himself with competent and disciplined fundraising staff that can support the volunteer-driven fundraising process by emphasizing the importance of face time with major donors and prospects rather than Facebook time.

There is no shortage of money to be given despite the present economic climate. People are generous. They just have to be invited to take a few laps around the track and experience the joy of giving to a winning cause to help people, pets or the planet.

James A. Donovan of Sanford is president of Donovan Management Inc., which assists organizations engaged in philanthropy.

Three Steps To Increasing Philanthropic Giving In Today’s Economy

• Step I               Update your fund raising plan.
• Step II              Follow the money.
• Step III             Get face time with prospects.

Step I   Update your fund raising plan.

If your fund raising team of staff and volunteers is experiencing a steady increase in philanthropic gifts, grants and pledges, keep working your plan.  On the other hand, if giving is down you have to replace one methodology with another.  For example, if in the past you relied heavily on special events and in the past six months you have had to cancel events due to a lack of sponsors, why not try an in-home donor/prospect cultivation event?  Mix current donors with potential donors, socialize and then discuss the gap in giving and how vital it is that individual donors help close the gap as 85% of all giving is from individuals.  Pick the right host, allow guests to mingle and keep the “pitch” to a minimum.  The best way is to have a donor give a two minute testimonial.  Don’t ask for a gift on the spot.  Have information available as they leave that explains the gap in funding and how after the party guests will be contacted by a member of your fund raising committee or they can go ahead and give before they are contacted.  Be sure to point out giving options, especially online giving.

Step II  Follow the money.

Forbes just released its list of The Richest People On The Planet and over two dozen are from Florida.  Between the super wealthy and high income earners, there is plenty of money out there for the asking.  The challenge is researching those individual current donors and prospects on your list to determine their financial capacity to give.  That’s twice as important in this economy, locating the wealth.  We do this for clients with our eZ Screen Prospect Research Service and it helps clients segment their database from greatest to least financial capacity to give.  Pinpoint the wealth and you will be able to raise those funds to close any funding gap this year.

Step III Get face time with prospects.

You hear a lot about the use of Facebook in fund raising today.  It works and has provided a new stream of funds to many nonprofit groups.  On the other hand, most fund raising departments are understaffed and more time spent on Facebook, means less Face Time with major gift donors and prospects.  Again, in a tight economy staff and volunteers have to focus their time where they will get the greatest results.  As Peter Drucker would say, “time management isn’t about getting things done, it’s about getting the right things done.”

Be sure to equip your volunteers and staff with key talking points on how to make the ask.  Our publication, “Take The Fear Out of Asking for Major Gifts” can help.  Here are a few highlights from it.

Always answer for the prospect four key questions – where your organization has been, is today, where it wants to go in the future and what philanthropic investments are needed to get there?  Don’t presume the prospect understands your funding gap.  Your progress on keeping the gap narrow is one way to win over the prospect.  Let the prospect know that if he/she makes the gift, that inspires others to give and puts you that much closer to your goal.

One closing thought – I have been raising money since my days in high school, in college and since graduation from college.  It’s all I know.  What I have learned of late is just how many donors feel they are ignored by the organizations they give to.  How do I know that?  Because donors tell me and our Associates that when we interview them for studies and assessments. Make the centerpiece of your fund raising efforts, the faces of those donors who provide your philanthropy.  Showcase them in your newsletters, in ads and online.  Make it about them, not your organization.

All the best for continued $ucce$$.  If we can help you in advancing philanthropy for your organization, give us a call at 407-321-0024 or email dmimgt@aol.com.

Jim Donovan

How to Find, Enlist and Motivate Leadership

Recently I attended a memorial service for a local banker who was a pillar of Central Florida. He started out as a bank teller and rose to become CEO. The late Buell Duncan of SunTrust was a real gentleman and chief cheerleader for our region. He was the Chairman of the Board of the University of Central Florida Foundation in Orlando where I served as Executive Director in the early 80’s.

This made me recall how many bankers over the years I have had the good fortune to work with in several states. I learned in Fund Raising 101 years ago; don’t attempt a major community fund raising campaign without the leadership of a local banker, as bankers have clout and connections. Their phone calls are returned. They lean on their best and most successful customers to “give” to the community. And more importantly, they know where the money is.

Today the media is watching and reporting on bankers more than ever due to the Federal bailout of banks, thereby shrinking the pool of available board leadership. Nonprofit boards will always recruit bankers to their boards. However, in today’s environment they have to look beyond this traditional and dependable source of leaders.

Having a powerful board is always a plus. Engaging and motivating it is even better. Clearly this is a top priority today according to a recent survey conducted by the Nonprofit Finance Fund of 1,300 nonprofit leaders as reported in the March 25th issue of the Chronicle of Philanthropy. It noted that 60% of respondents ranked engaging the board as the best way to respond to budget shortfalls.

So how do you find, enlist and engage/motivate board leadership given the current market conditions?

Why not start with these qualifying questions to find board leadership:

• Which companies are driving the economy of your region?
• Who is on their top management team?
• What skill set do you need for transforming your organization in the future?
• Do these executives have those skills and talents?
• What other boards have they served on that are similar to your own?
• Can they provide access to key prospects and donors on your Master List?
• Will they make a significant corporate or personal gift as a board member?
• Will they ask others for major gifts to your organization?

What is the best way to enlist board leadership?

• By having a current or former board member who is a major customer or client of the company ask for an appointment.

• At the meeting, show the board candidate the list of current and former board members, particularly those who are customers or clients of his company. Familiarity breeds success.

• Explain the reasons why you are inviting the candidate to serve on your board.

• Outline expectations of board members, using Peter Drucker’s model in his book, Managing the Nonprofit Organization.

Board members serve as:

• Ambassadors to communicate the message and case of the organization.

• Consultants to provide their expertise in key areas.

• Governors to oversee the work of the organization.

• Sponsors to provide financial resources to fund the organization’s work.

• Don’t dwell on fund raising as a board member. That’s a given. Emphasize mission over money, as money follows mission.

Motivating the Board

• In all my years in this profession, nothing motivates the board more than a carefully planned and executed board retreat. It energizes everyone.

• Another way is to invite a guest speaker to address the board on issues and trends facing your sector of the nonprofit world.

• Tell a success story of how your organization changed a life. Let the client/customer tell his/her story prior to a regularly scheduled board meeting.

• Feature board members in your advertising as people who are making a difference in your community. Remember, people relate to people, not causes or needs. Who serves on your board is something to celebrate/feature.

• Constantly recognize and acknowledge the 3 D’s of your board members — their dedication, deeds and diligence.

For more ideas on motivating the board, check out my book, 50 Ways to Motivate Your Board, A Guide for Nonprofit Executives at: http://donovanmanagement.com/wptest/dmi-publications/

Local nonprofit organizations have had extensive news coverage this year — the termination of a homeless drop-incenter initiative by downtown churches, the closing of the Destiny Foundation, the hefty salary for the chief executive officer of Florida’s Blood Centers, record demand at Second Harvest Food Bank and a local couple starting Bags of Hope for the homeless in the woods.

Nationally, The New York Times recently reported that in a decade there has been a 60 percent increase in the number of nonprofit organizations in the U.S. to 1.1 million. California Democrat Congressman Xavier Becerra found this trend to be troubling. He questioned whether American “taxpayers are getting a big enough benefit in return” to justify the $50 billion loss to the U.S. budget due to $300 billion given to charity last year in the form of tax-deductible contributions.

The article points out that the Internal Revenue Service makes it easy for anyone who wants to start a charity. Who wouldn’t apply when the approval rate for such applications was 99 percent last year — or more than one every 10 to 15 minutes — according to a recent study by students at Stanford University.  As a consultant in philanthropy who has worked with more than 400 nonprofits from the arts to zoos, we don’t need more nonprofits. We need more nonprofits to work together for charitable, educational, scientific and public benefit to society. At least that is what donors tell us in the feasibility studies we conduct for clients.

Congress should establish a commission to review the inequities among nonprofit organizations. For example, donors who give to the University of Florida get a tax-deduction just as they would if they gave to Bags of Hope. The university adds thousands of potential life-long donors at each graduation, unlike Bags of Hope alumni who are poor. Nonprofits serving the poor should be able to provide a higher tax deduction to their donors, because such organizations do not have a built-in constituency like a university.

Furthermore, there is a lack of available leadership for existing nonprofits, let alone new ones. With the downsizing of corporate America, many CEOs don’t have the time to serve on nonprofit boards to exercise their clout, work their connections and provide cash support.  The $300 billion in giving last year represented less than 3percent of the Gross Domestic Product, according to the Giving USA Report. There are millions of uninvited contributions out there for the asking. Congress should focus its efforts on providing incentives to nonprofits to collaborate, merge and share resources, not increasing the number of them. 

What a holiday gift that would be for the least among us come December 2010.

James A. Donovan is President of Donovan Management, Inc., which assists organizations engaged in philanthropy.

Second, we ask the CEO and board how the organization is earning income.  Is there something they can do to generate more “retail” dollars? (Not another special event.) Sell more products, for example, or expand services, review their fee structure, as most organizations set their fees too low and they can often be increased.

Third, we ask about income from investments from the organization’s savings, reserves or endowments.  If returns are poor, we suggest that a review might be in order.  Given the present economy, many organizations are trying to augment the decrease in giving with an increase in investment income.  No small task given the swings in the stock market of late.

In the early 80′s, when I was the Executive Director of the UCF Foundation, I remember when the President of the University wanted me to hire more staff so we could raise more money.  I disagreed.  I felt it was time for the Foundation to establish an investment committee, as I was concerned about the stewardship of the endowed professorships we were obtaining through a combination of donor gifts and state matching funds — keeping it safe, doing a better job of investing.  Fortunately he agreed with me and we hired our first ever Business Manager who later took a leadership role in enlisting an investment committee that did a remarkable job.

In this Blog I thought it would be timely to discuss enhancing your investment returns.  So I turned to Tom Carhart of South Street Advisors in New York with whom we have collaborated over the years.  The firm, established in 1996, is independent and specializes in managing endowments of nonprofit organizations including some here in Florida.  Here are four suggestions from Mr. Carhart for improving your investment income.

1. Research, identify and enlist investment committee members who have a strong background in endowment management with a nonprofit organization similar in size to your own. Be sure they know and understand that the dollars you invest are donor dollars and you have a special obligation of stewarding donor gifts.
2. Prepare a policy statement that clearly describes the organization’s investment goals and expectations for return on investments.
3. Select an investment manager with a proven track record who will tailor investments to your organization’s financial requirements.
4. Insist on frequent “face time” update meetings with your investment advisors so your investment committee can have all your questions and concerns addressed.

Today, the competition among investment managers to obtain new accounts is quite competitive.  The recent decline in endowment portfolios has resulted in many nonprofits issuing new RFP’s in hopes of finding a firm that will get them back or close to pre-market decline levels.

We always encourage clients to keep their selection process wide in scope.  For example, don’t limit your RFP to just local firms. Resist the pressure to keep the local donated money invested locally.  Go where you get the best advice, return and service as the bottom line is just that, the bottom line.

Finally, we suggest that your organization be clear and forthright about investing donor dollars.  It is surprising how many nonprofit websites have little information on how their investments are handled.  We suggest a page, tab or click that includes these headings and a subsequent statement for each:

• Stewardship of Donor Gifts

Why is it so important to your organization?

• Investment Committee Oversight

What’s their purpose?

• Investment Committee Members and Affiliations

What are their qualifications and credentials?

• Investment Management Firm

What’s their track record with nonprofits, returns and service?

What distinguishes them from other firms?

• Investment Strategy

What investment products are being used?

What is the strategy for asset allocation?

In two weeks we will begin the final quarter of 2009.  Take time now to review your investment income so far this year.  Make plans now to maximize your investment income in 2010.  You owe it to your donors, organization and those you serve be they — people, pets or the planet.

Please let me hear from you, especially about our revised website.

All the best for continued success.

Jim Donovan