Every Tuesday, The Chronicle of Philanthropy has a great online discussion on various topics impacting the nonprofit sector. Today’s topic was on compensation.  Here is a portion of the transcript that features Susan Egmont,  president of an executive search firm in Boston. You can read the full discussion by clicking here:

Question from Peter Panepento:
How do you see the current economic picture affecting executive compensation in the nonprofit world? Do recessions tend to have much of an impact on salaries in this sector?

Susan Egmont:
Nonprofit organizations are nervous right now (as are we all!). For organizations funded by government, tax collections are less than projected, and State budgets are being revised downward. Some of those cutbacks will be made in funding to human services, environment, arts and education and healthcare nonprofits. At the same time, employees may be seeing increases in food, housing, child care and other necessities. I expect most organizations will try to keep up with the cost of living, but larger merit increases may wait until there is a sense of more predictability. On the flip side, an executive who is “rainmaker” and can assure the board of the ability to meet the budget will be highly valued and may be able to ask for a salary that will insure s/he isn’t looking elsewhere.

The Chronicle of Philanthropy addresses how the Wall Street crisis will impact the nonprofit workforce:

The crisis on Wall Street – and the likelihood that billions in federal money will be spent soothing it – portend an era when government will need to turn more eagerly than ever to nonprofit organizations to serve social needs, said experts speaking Monday at a conference here on the state of the nonprofit work force.

The federal government is “going to have to find more efficient ways to do more,” said Paul Schmitz, president of Public Allies, a group with headquarters in Milwaukee that prepares young people for nonprofit jobs.

Lawmakers need to be educated about the role the nonprofit world can play in furthering their goals for society, he said. “This is a place when they can move things quickly, get them on the ground working.”

Continue reading ‘Nonprofit Conference Discusses Implications of Financial Crisis on the Nonprofit Community’

The Nonprofit Quarterly asks the question; “How will our communities, our constituents and stakeholders, not just our nonprofit organizations, fare as a result of various bailout ideas?” among others in this article:

Sound Off on the Bailout
Written by Ruth McCambridge and Rick Cohen

As community activists and organization leaders, Nonprofit Quarterly readers probably have a lot to say about the various proposals for a purported financial sector “bailout” currently being debated on Capitol Hill. It is truly a bipartisan issue — liberals and conservatives, Democrats, Republicans, and libertarians are debating the pros and cons of the largest federal intervention in the financial system since FDR’s Banking Act of 1933. We want to hear what you have to say about this debate.

As community activists and organization leaders, Nonprofit Quarterly readers probably have a lot to say about the various proposals for a purported financial sector “bailout” currently being debated on Capitol Hill. It is truly a bipartisan issue — liberals and conservatives, Democrats, Republicans, and libertarians are debating the pros and cons of the largest federal intervention in the financial system since FDR’s Banking Act of 1933. We want to hear what you have to say about this debate.

Here at NPQ, we’ve written about the “financial sector meltdown ” for its impacts on philanthropic grantmaking and nonprofit budgets. But the real import is much larger: What will the bailout mean for our economy and our communities? Is it the right thing or the wrong thing to do or something in between? How will our communities, our constituents and stakeholders, not just our nonprofit organizations, fare as a result of various bailout ideas? Based on what you see and know, watching what’s happening with mortgage foreclosures and bank failures, looking at the shaky footing of the nation’s largest insurers, seeing the nation’s largest brokerage houses collapse almost overnight, what do you think should be the preferred response of Congress, the Administration, and perhaps the two major party presidential candidates to the prospect of a financial sector bailout?

And then back to our beat — charity and philanthropy: What should the nonprofit sector do, locally, regionally, and nationally, to make sure our voices are heard on what could be not only the largest federal government intervention in the economy in modern history, but the most threatening economic climate since the Great Depression?

 Post your comments on this article below.

This is an interesting article, on how a nonprofit based in San Francisco is making philanthropy a “lifestyle choice,” and raising money along the way:

Spark, a young nonprofit, is changing the notion of philanthropy. For its members, philanthropy is a lifestyle choice-one that engages them on many levels. According to Executive Director Shannon Farley, Spark helps you change the world-and network, find a tennis partner, and a new apartment all at the same time!

Spark-whose mission is to build a community of young global citizens invested in changing patterns of inequality that impact women globally-is a network bent on making philanthropy different. According to Shannon, “We are primarily a global network. We want to change the way we engage in philanthropy and our role in the world.”

One way they do this is by appealing to busy professionals. Spark events are fun, accessible, and convenient, says Shannon. The energy in the room is exciting and down-to-earth, and events are inexpensive and held on nights and weekends, with the knowledge that young professionals work long hours. Although women make up the majority, 40 percent of Spark’s membership is men, and the group consists mostly of twenty-five to forty-five year olds. Spark’s events also tend to relate to the issues men and women face in their daily lives-and it’s a fun and easy way to connect and network with others. Here’s a sampling of recent events in and around San Francisco:

Spark welcomed members to a brunch to discuss Bill Clinton’s book Giving: How Each of Us Can Change the World
Spark hosted an event with YourOnRamp to discuss the issues women face leaving and re-entering the workplace, featuring Dr. Sylvia Ann Hewlett, renowned author of On-Ramps and Off-Ramps

Spark is also different because they have a flexibility and openness not always seen in nonprofits. According to Shannon, Spark has an open process, which engages members on several levels. Organizations and community partners approach them with ideas or vice versa. In some cases, members present an idea they care about and Spark finds a way for them to get their mission off the ground, whether it’s working with girls and women in San Francisco-or halfway around the world in Africa or Vietnam. It’s like taking that conversation about poverty you had with a friend over coffee to the next level. In fact, Shannon even mentions how she loves talking to members about issues over coffee.

The Tennessean has a story today on the funding issues facing nonprofits:

Financial services firms and their well-paid executives have historically been generous givers to museums, colleges, hospitals and social service organizations, both in New York and around the globe.

Now, nonprofit administrators are watching the crisis on Wall Street with queasy stomachs as reliable donors like Lehman Brothers, American International Group, Merrill Lynch and Bear Stearns change hands or go belly up.

For now, the firms that have taken over struggling companies aren’t saying what they’ll do, and it may be months before charities learn whether pledges are being honored.

“We’ve got a big question mark hanging over our heads,” said Marsha Stein, executive director of Citymeals-on-Wheels, a group that relies heavily on private donations to deliver food to 18,000 homebound New Yorkers.

Bear Stearns employees, alone, she said, were good for about $500,000 in donations to Citymeals each year – generosity due partly to the firm’s requirement that its 1,000 senior directors contribute 4 percent of their annual compensation to charity.

That support came into question overnight when the firm disintegrated in March and was purchased by JPMorgan Chase.

The crisis is likely to hit nonprofits on several fronts, said Gordon J. Campbell, president and chief executive of the United Way of New York City.

Troubled firms may slash corporate giving while they focus on their own problems. Wealthy individuals may scale back as well as their stock portfolios lose value and their pay bonuses vanish.

And with tens of thousands of layoffs expected, local income tax revenues are expected to slide, meaning that there will be less government money for social service organizations, even as the number of needy people rises.

“We could see an exponential increase in need and potentially fewer dollars coming in the door,” Campbell said.

Even now, some past beneficiaries of Wall Street largesse are trying to determine whether major pledges made by struggling firms will be paid.

Shop at  Ten Thousand Villages on Sundays beginning in October, and support local nonprofits!

Holiday Nonprofit Sundays at Ten Thousand Villages:

On Sundays in October and November, Ten Thousand Villages of Nashville will open its doors to celebrate the work of local nonprofits. Each Sunday from 12:00 – 5:00, a different organization will be featured and gifted with a percentage of store sales that day.

In an effort to address the shared need that bridges the global and local community, Ten Thousand Villages has initiated partnerships with nine organizations that represent and serve Nashville’s diverse community.

October 5-Big Brothers Big Sisters of Middle TN

October 12-Greater Nashville Susan G. Komen for the Cure

October 19-Adventure Science Center

October 26-YWCA of Nashville

November 2-Pastoral Counseling Centers of Tennessee

November 9-Miriam’s Promise

November 16-Monroe Harding

November 23-The Lost Boys Foundation of Nashville, Inc.

November 30-NAMI Nashville (National Alliance on Mental Illness)

Ten Thousand Villages has grown from a small grassroots project to a global business network of social entrepreneurs, with more than 80 retail locations nationwide striving to meet a triple bottom line goal of social, economic and environmental responsibility.

Ten Thousand Villages’ fair trade mission brings dignity and opportunity for a better quality of life to artisan partners. The Nashville store is an exceptional source for unique, handmade gifts, jewelry, home décor and personal accessories made by artisans in Asia, Africa, Latin America and the Middle East. Product sales help pay for food, education, healthcare and housing for artisans who would otherwise be unemployed or underemployed.

 

Here is an announcement from the Tennessee Bar Association on an upcoming workshop:

The Tennessee Charitable Gift Annuity Act of 2008 -What You Need to Know to Get Ready For It

Description: The Tennessee Charitable Gift Annuity Act of 2008 takes effect on January 1, 2009. With it will come new requirements for Tennessee non-profit organizations, maintenance of accounts, reserve funds, acknowledgment from donors, and information to be included in charitable gift annuity agreements.

Tennessee charities will be expected to comply with the act for any gift annuities issued in 2009 or later. This presentation will let you know what you need to do to comply with the act and stay in compliance.

All Non-Profit Agents will receive the member price of $45.

Speaker: Mike Parham
Format: WebCast
Course Dates: 11/10/2008 – 11/10/2008
All times listed are in Central Time
Course Schedule: November 10, 2008 | 12:00 PM | 01:00 PM |

For more information please visit:

https://www.tnbaru.com/CLE/index.php

 

Those of you familiar with the CNM Blog know that every once in awhile, we have a guest blogger put together a post on a topic that we think is of interest to nonprofits. This week, Jeremy Scott of Keystone Business Solutions, was kind enough to put together an interesting post on Search Engine Optimization. Read on to understand what SEO means, and why it matters to your organization:

The current economy creates some unique challenges for nonprofits. You need to continue getting your message out to as many people as possible while increasing the level of donations and grants you are able to bring in-and you need to do it spending less money than ever.

The Internet is the single most powerful tool at your disposal. Today’s donors and volunteers will slowly be replaced by tomorrow’s donors and volunteers-college students and young adults who are “wired” in a way a lot of us can barely understand. This generation speaks the language of the web, and small businesses and nonprofits who wish to remain relevant will soon be forced to find a way to connect with this demographic online if they hope to prosper.

One of the basic ways most nonprofits have embraced this idea is in setting up a Web site. Ten years ago, it was novel for a business of any kind to have a Web site. Today, it’s commonplace.

According to the Kelsey Group, 54% of people have ditched phone books in favor of search engines for their local search needs. This means that if Bob needs a mechanic, he’s now more likely to look for one on Google than he is to use the Yellow Pages.

That’s a sobering thought. Do you know what comes up on Google if people search for you? Do you know what keywords and phrases they’re typing into the Google search box when they search for you?

Simply having a Web site is no longer enough… the Web site also needs to be easy to find.

Research shows that if people can’t find what they’re looking for within the first two pages of Google results… they give up and try something else.

So the straightforward question is this: How many young people are out there, passionate about your issue or cause, but unable to find you online?

Search Engine Optimization (or “SEO”) is the process of writing and coding your Web site to most effectively communicate to the search engines what your nonprofit is all about. It involves keyword research to determine what search phrases your target audience is using, and then inserting those phrases into the on-site text and behind-the-scenes HTML code of your Web site.

There are many reputable SEO firms to choose from, though you should take care to be cautious of those that make bold guarantees and use buzz-words like “magic” or “mojo.”

Typical SEO services can run anywhere from a few hundred dollars to a few thousand, depending on the size of your Web site and the work required to help it rank better-but it’s well worth the cost.

I’m sure each of you has budget constraints-it’s one of the hallmarks of running a nonprofit. But I urge you to strongly consider your marketing budget for the coming year. Traditional marketing like print, radio, and television, isn’t obsolete… yet. But online marketing and advertising simply cannot be ignored any longer.

Today’s young people, who will fuel your nonprofit’s future, are looking for you on MySpace. They’re looking for you on Facebook and Twitter. They want to read your blog. And they’re definitely using Google to discover things that move them.

You can throw up a billboard for a few thousand a month, cross your fingers, and hope that the right prospective customers see it and remember to call you. Or you can spend that money with a search marketing firm, get your site ranking well on Google, and know that your message will be right there in front of the very people who are already searching for you.

The Nashville City Paper reports on the legislation proposed by Councilman Charlie Tygard that would have funded nonprofits left out of Metro’s Community Enhancement Fund:

A resolution to award about $15,000 apiece to four Nashville area nonprofit groups left out of Metro’s new Community Enhancement Fund program was disapproved by Metro Council at its Tuesday meeting.

The resolution, championed by At-large Councilman Charlie Tygard, would have awarded the extra funds to the four programs which didn’t receive grants as part of Mayor Karl Dean’s new CEF program.

Council approved a total of $2 million to 26 area nonprofits in August. The program was created by Dean to take politics out of the process of awarding grants to nonprofits.

But the process came under scrutiny when the scoring structure used to rank the nonprofit applicants was set aside in the domestic abuse category. Two of those nonprofits received higher scores than some of the programs which ultimately received funding.

Because of that, Tygard advocated allocating $60,300 from the reserve fund balance for four nonprofits left out. The four nonprofits were Prevent Child Abuse Tennessee, the Exchange Club Family Center, Court Appointed Special Advocates and the Tennessee Coalition Against Domestic and Sexual Violence.

“Sometimes you have to do the right thing when the system breaks,” Tygard said.

But the bill only received four total votes, with 34 voting to disapprove along with one abstaining.

District 23 Councilwoman Emily Evans said the reserve fund balance is too low (according to Metro Finance Director Richard Riebeling the balance is about half where it should be) and voted against the resolution for that reason. District 12 Councilman Jim Gotto said Metro should wean nonprofits off reliance on government dollars in the coming years and also voted against the legislation.

Here is an interesting story in today’s Tennessean:

Back when bass player Bob Moore and his wife, Kittra, rode cross-country in tour buses, the two had a running joke about where they’d end up retiring.

“We’d pass some ramshackle of a place with a roof that was falling down … and Bob would say, ‘Look honey, there’s a retired bass player’s house.’ ”

Although Bob Moore, 75, went on to become one of the world’s most recorded musicians, Kittra worries about others who haven’t been so financially fortunate. Many of the musicians and songwriters who make up the Country Music Association’s more than 5,500 members don’t have the means to retire.

But help could be on the way. The CMA has partnered with two development firms to offer a retirement community specifically for those who have made a career in the music industry but don’t have the fame or money of country stars.

What’s proposed is a $95 million, nonprofit senior living community to be built in the Franklin subdivision of Westhaven. Those behind the project are slated to make a formal announcement there today.