March 2015

Mohammad Anas Wahaj | 31 mar 2015

Non-profit organizations need to focus on their mission and objectives, and design and implement effective governance practices and align them with the interests of their main stakeholders. They should keep in mind the laws of the land and regulatory processes while pursuing their charitable goals. Non-profit organizations in the state of Pennsylania in US have the following main stakeholders - (1) Attorney General: Has responsibility for ensuring that nonprofit charitable corporations and their boards of directors operate in accordance with their nonprofit mandates. (2) Internal Revenue Service (IRS): Has the authority to grant tax-exempt status to charitable nonprofit corporations, has an interest in ensuring that charitable corporations are governed appropriately. (3) General Public: That contributes to and supports a nonprofit corporation's goals and objectives has economic and mission-related interests in the organization's affairs to ensure that their donations, contributions and support are used to further the organization's charitable purposes. Board of directors of non-profit organizations plays an important role in corporate governance and oversees its effective working. The directors have to carry out their duties in a responsible and conscientious manner. Two principal fiduciary duties of the director are - Duty of Care (Calls upon a director to actively participate in the decisions of the board and to appropriately review data relevant to such decisions); Duty of Loyalty (Requires that each director of a nonprofit corporation make decisions based on the best interests of the corporation and not based on any personal interests). To design an appropriate corporate structure, two tools can be of importance to guide and direct the board in the right direction - (1) Carefully Drafted Bylaws: They identify, shape and inform the corporation's governance structure. They provide a clear roadmap of the corporation's internal management structure while retaining flexibility to respond to operational and governance changes that may occur over time. (2) Judicious Adoption and Use of Corporate Policies and Procedures: Conflict of interest policy; Whistleblower policy; Document reduction and destruction policy. Read on...

The Legal Intelligencer: Effective Corporate Governance in the Nonprofit Sector
Author: Noel A. Fleming

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Mohammad Anas Wahaj | 31 mar 2015

In US charitable giving was about US$ 335 billion in 2013. Recently released '2014 Charitable Giving Report' by Blackbaud covers a sample size of US$ 16 billion in US-based giving. The report shows 2.1% increase in philanthropic giving in 2014 (Total Growth in US economy was 2.4%). The main highlight of the study was the rise in digital-based giving, which increased a total of 8.9% from the previous year. This points towards the digital future of fundraising. Moreover there is clear indication of use of digital strategies by smaller non-profits due to its lower costs as compared to traditional methods of fundraising like postal mail, phone calls etc. Todd Cohen, founder of Philanthropy North Carolina, provides insights on the importance of peer-to-peer fundraising in the digital age. Read on...

NonProfit Quarterly: Fundraising Insights for Smaller and Mid-sized Nonprofits - From a Blackbaud Report
Author: Steve Boland

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Mohammad Anas Wahaj | 08 mar 2015

One of the most challenging tasks for nonprofits is to attract donors and obtain funds for their operations from external sources. Lack of funds can bring great causes and social movements to a halt. To raise money needs specific talent and skills. According to Dan McGinley, director of the Sanford Institute of Philanthropy at National University in San Diego, 'A more effective technique to seek money is to approach a philanthropist the same way a salesman approaches a client... We're adopting the already proven practices of professional selling. The process includes building relationships and getting to know a person's interests, then showing that person how a particular product or nonprofit can meet those interests.' T. Denny Sanford, a successful businessman and philanthropist, advices to keep the process of asking for money simple and says, 'I want everyone to tell their story as if it is to their grandmothers and no more than a 10-story elevator ride. Short and sweet and easy to understand. Because (with) some of the technology people get too technical and talk way over everybody's head.' Read on...

U-T San Diego: Teaching nonprofits how to raise money
Author: Gary Warth

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Mohammad Anas Wahaj | 02 mar 2015

Indian society is facing multiple challenges like high poverty rates, child labor, female foeticide, illiteracy, malnutrition etc. To overcome these issues, considering the substantial population size, requires mobilization of large amount of resources, social innovations, entrepreneurial spirit and commitment from government, private sector and civil society. Philanthropists, alongwith NGOs and local level community and grassroots organizations, are trying to tackle old problems in innovative ways. And there is still large untapped potential that is waiting to be harnessed to make required changes for the betterment of Indian society particularly in the rural and tribal areas. Santanu Mishra, co-founder and executive trustee of Smile Foundation, explains how an initiative by Rajasthan government 'Padharo Mahari Lado' to protect the girl child is bearing fruit due to the collaborative efforts of Department of Health, Barmer, National Rural Health Mission (NRHM), Cairns India Limited and Smile Foundation. According to him, 'When a social innovation is intended through collaboration, it is very necessary that it features a common agenda, unbroken communication, effective measurement systems, and the presence of a core organization.' Read on...

Business Insider: How Indian NGOs are marrying Philanthropy with Social Innovations?
Author: Santanu Mishra

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