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Thenonprofittimestm •September 1 2014 NPT_Layout 1 8/20/14 1:49 PM Page 1 Special Report on Donor ManagementPages 17-21 HE ON ROFIT IMESSystems TM TThe Leading Business PublicationN For Nonprofit ManagementP • www.thenonprofittimes.com •T $6.00 U.S. September 1, 2014 Jimmy Fallon and guests take the ALS Ice Bucket Challenge on The Tonight A Seat At The Table Show Nonprofits spend $44 million on lobbying despite D.C. stalemate BY MARK HRYWNA “During the current war in Israel, the illiam Daroff campaigned vast majority of my time is focused on door-to-door for a candi- that component as it relates to interac- date running for local tions with the president and Congress council when he was just 7 as well as communicating with con- W stituencies, local federations, news AY OOL years old. Fast forward 40 years. Daroff W C ! continues to work impacting the demo- media and the like,” said Daroff. “We’re An ‘icy’ reception by donors heated cratic process, this time as senior vice very engaged and work closely with president for public policy at The Jewish AIPAC [The American Israel Public Af- up dollars and awareness for ALS Federations of North America (JFNA). fairs Committee] and other Jewish As director of JFNA’s office in Wash-groups,” he said, as well as on issues re- ington , D.C., Daroff oversees a staff of lating to Medicaid policy, Jewish social BY MARK HRYWNA largest viral campaign for a charity since 17 -- including six registered lobbyists -- service agencies, hospitals, and nursing ou Gehrig’s Disease probably Invisible Children’s #Kony2012, the who work on issues ranging from agencies. For instance, JFNA is working hasn’t received this much expo- Washington, D.C.-based national office of poverty, Medicaid, social services and with both Democrats and Republicans sure since the Hall of Fame first The ALS Association and its 38 chapters charitable giving to anti-terrorism fund- to try to get $5 million into the appro- baseman’s famous farewell nationwide reported donations of more ing, Israel-U.S. relations and the nu- priations bill for Holocaust survivors liv- L than $31.5 million between July 29 and speech at Yankee Stadium 75 years ago. clear ambitions of Iran. This summer’s ing below the poverty line. The Ice Bucket Challenge dominated Aug. 19 -- several times more than the flare-up of violence in Gaza became the The Center for Responsive Politics social media in August, sparking a viral $1.8 million raised during the same time top priority for the office. (CRP) in Washington, D.C., home of campaign that had people posting videos in 2013. The organization gained nearly OpenSecrets.org, estimates the non- but also donating to the ALS Association 638,000 new donors at presstime. profit industry last year spent $44 mil- and other charities related to amy- ALS Association and its affiliates had lion on lobbying, which pales in otrophic lateral sclerosis (ALS), or Lou reported $4 million raised since July 29 comparison to the likes of the pharma- Gehrig’s Disease as it is more commonly with 75,091 new donors, heading into ceutical industry, which spent $226 mil- known. the week of Aug. 11, when the campaign lion or even the automotive industry at In what has probably become the Challenge, page 7 Lobbying, page 4 Charity Navigator Goes To 100-Point Ratings System BY PATRICK SULLIVAN for the sake of simplicity and the intu- t might be time to dig out that re- itive understanding that people have,” tainer and tuba from your high said Ken Berger, president and CEO of school yearbook picture. Charity the Glen Rock, N.J.-based organization. I watchdog Charity Naviga- “Our educational system is tor changed in August the way it based on the 100-point system, issues its ratings. While the or- and grades are apportioned by a ganization has no plans to move numeric score. It’s a much more David Thompson, vice president to a letter grade system, the new familiar breakdown.” of public policy for the National system is based on 100 points, similar Users have expressed confusion at the Council of Nonprofits, and Tim to the school system and is more recog- ratings, said Berger. “We’ve gotten feed- Delaney, president and CEO, stand in front of the Minnesota state nizable to users. back over the years from users who have capitol after leading a regional The biggest reason for the change “is Charity Navigator, page 5 Advocacy Institute earlier this year. ADVERTISEMENT abila.comabilbila..cocom | (866) 592-454545 | [email protected] •September 1 2014 NPT_Layout 1 8/20/14 1:50 PM Page 2 Hassle-freeHassle-free reports.reports. Get easy,asy, real-timerereal-time reportingreporting right inside our peer-to-peerpeer-to-peer-peer fundraisingfundraising software.software. •September 1 2014 NPT_Layout 1 8/20/14 1:50 PM Page 3 Editor-in-Chief Paul Clolery September 1, 2014 Vol. 28 No. 10 [email protected] In This Issue Senior Editor Mark Hrywna [email protected] Staff Writers Patrick Sullivan [email protected] Zach Halper [email protected] Contributing Editors Rick Christ Susan Ellis S______________________________________________________________________________PECIAL REPORT Herschell Gordon Lewis Thomas A. McLaughlin Donor Management Systems Tim Mills-Groninger 17 Amy Sample Ward Breaching The Walled Garden Y ARK RYWNA President John D. McIlquham B M H Business Manager Barbara Nastasi [email protected] N______________________________________________________________________________EWS __________________________________________________________ Production Manager Jeff Nisbet [email protected] 11 A Seat At The Table BY MARK HRYWNA Marketing Director Deanna Quinones [email protected] 11 Way Cool! Advertising Sales Director Scott Vail BY MARK HRYWNA [email protected] (973) 538-3588 11 Charity Navigator Goes Business Development Dir. Peter Manfre To 100-Point Ratings System [email protected] BY PATRICK SULLIVAN (973) 401-0202 Ext. 219 8 Classified Manager Mary Ford 18 Jail Time For Fraudulent Donor Receipts [email protected] BY MARK HRYWNA & TIM MILLS-GRONINGER (973) 401-0202 Ext. 206 Corporate John McIlquham 19 Red Cross Gives Up On ‘Sandy’ Financial President & CEO Disclosure Battle Paul Clolery BY MARK HRYWNA Vice President/Editorial Director _______________________________________OLUMNS D____________________________________EPARTMENTS Circulation Manager Charles Mast C [email protected] 14 GENERAL RAMBLINGS 10 ICYMI On The Web Executive Offices Mack-Cali Lake View Plaza 12 Checkmate 201 Littleton Road, 2nd fl. BY PAUL CLOLERY 22 Technology Guide Morris Plains, NJ 07950 TECHNOLOGY (973) 401-0202 28 Resource Marketplace 13 Crowdfunding Dreams BY PATRICK SULLIVAN Postmaster Mail address changes to: 28 Advertisers Index The NonProfit Times BURNT OFFERINGS P.O. Box 433292 Calendar Creative Masterclass 31 Palm Coast, FL 32143-3292 14 BY HERSCHELL GORDON LEWIS 1-386-246-0103 31 NPT Jobs ON VOLUNTEERS 16 The Organizational Chart THE NONPROFIT TIMES is published semi-monthly A one-year subscription is $65 US, $89 US Canada BY SUSAN J. ELLIS and $129 US for international. The NonProfit Times (ISSN 0896-5048) USPS #001-548 is a publication of NPT Publishing Group, Inc. Periodicals postage paid at Morris Plains, NJ and additional entry points. Unso- licited manuscripts are welcome, but The NonProfit Times does not assume responsibility for their return. STREETSMART NONPROFIT MANAGER None will be returned without a self- addressed, stamped envelope. No material in this publication may be photocopied or reproduced in any form whatsoever with out permission of the Publisher. Views expressed by Solving Insolvency independent columnists or correspondents are theirs and do not necessarily represent the views of NPT 26 26 Publishing Group, Inc. © 2014 NPT Publishing Group, Inc. BY THOMAS A. MCLAUGHLIN SEPTEMBER 1, 2014 THE NONPROFIT TIMES www.thenonprofittimes.com 3 •September 1 2014 NPT_Layout 1 8/20/14 1:51 PM Page 4 LOBBYING Continued from page 1 cluding the charitable deduction. done in a revenue-neutral way by taking $58 million, not including hospitals. The measure would make permanent away tax breaks, and the charitable de- Contrary to what sometimes is mis- several charitable giving provisions that duction is among those potentially on understood about nonprofits, charities expired in December, including the Indi- the block. As long as tax reform is talked can lobby, with some restrictions. Many vidual Retirement Account (IRA) Chari- about, it’s a threat, and will be talked have been involved during the past few table Rollover as well as a tax deduction about until it’s accomplished. It’s an im- years in trying to repel caps on the char- for donating food inventory and charita- portant time for the charitable commu- itable tax deduction and others have ble land easements and increasing dona- nity to be aware of what Congress is their hands in a variety of issues, fighting tion limits for both. The bill also would doing and to assert itself,” Shay said. poverty or securing funding for disease allow taxpayers to take a deduction on A Senate Finance Committee report research. charitable gifts until April 15 of the fol- on the bill would extend the measure “Much of our ability to advocate on lowing year, similar to making IRA con- one year, which Shay said would “leave us the Hill comes from relationships that tributions, and reduce the excise tax rate Much of our ability where we were before,” as of Jan. 1, 2015. federation leaders have locally, where on private foundations to 1 percent. Comprehensive tax reform is likely to they’ve known their senator since he or Among the things that must be done to advocate on the come up in the next Congressional ses- she was a city councilman or an aide. by Congress is approval of spending for sion, but it could be a matter of when They’ve grown up with them politically the new federal fiscal year that begins Hill comes from and how long that might take.
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