So many organizations are feeling the strain of funding cuts and decreased giving — this report confirms just how hard the sector is being hit. It is very worthwhile reading, especially to understand the context for fundraising and organizational management these days. Even if the economy is improving, 2010 is not going to be an easy year. More layoffs, budget cuts, closures and mergers are on the horizon. Click here to download the full PDF report.

From the press release…

Key findings of the survey were:

• Almost every charity was impacted in some way by the economic downturn in 2009. However, certain organizations – smaller charities, arts and culture and environmental groups – were the most negatively impacted by drops in their revenue base.
• Overall, more than half of all charities (53 per cent) experienced a drop in revenue in their 2009 fiscal year, with the average decline being 19 per cent.
• For certain charities, the bigger challenge this year was the increased demand on their services. Social service and health care organizations were both significantly affected by a jump in demand for services.
• Many charities dealt with this year’s budget challenges by looking for new sources of revenue (62 per cent) or undertaking more fundraising (58 per cent). This means that more organizations are searching for what is, essentially, a shrinking pool of funds.
• One-quarter (25 per cent) of charities surveyed had to layoff staff in order to cope. Of those who did reduce their roster of employees, the average reduction amounted to a 21 per cent cut to their total workforce.
• Looking forward, charities are not overly optimistic about 2010. Most anticipate they will continue to experience a drop in key revenue areas, while some also predict a marked increase in demand for their services.
• Half of all charities feel they are either “not prepared” or only “somewhat prepared” for the challenges of 2010. Several charities reported they had already cut to the bone, and there was no more left to cut: any further erosion of their revenue would likely lead to closure next year.

“We chose the name of this report very deliberately,” said Faye Wightman, CEO of Vancouver Foundation. “The experience that charities, including ourselves, have been through this past year is equivalent to a hurricane plowing through the community. Now the storm may be passing but it has left a lot of devastation in its wake. There is much repair and rebuilding that needs to be done. And some structures are now so fragile they could collapse at the first gust of wind. We expect 2010 will be harder than this current year for many charities.”

If you are in the Metro Vancouver area, a Philanthropy Day lunch will take place on November 10th at the Westin Bayshore. Tickets and details can be found here. It’s a great event for saying thank you to your donors and volunteers.

I’ve always liked the slogan: “Change the world with a giving heart.”

I urge you to speak out and express your concerns to the government, through letters to politicians or through the provincial budget consultations on now. The deadline for public input on the budget is October 23, 2009. You can answer their survey, make an online submission or sign up to take part in a public hearing. All the details can be found on the government’s budget consultation page.

If you want to express support for arts and culture, here is a sample letter you could send. Here’s some news about the impact of cuts on the environment. And here’s the latest on cuts to domestic violence prevention programs. And here is an op-ed on how gaming was intended to support community organizations, but that promise is being broken.

Click here to find out more and to register.

The speakers, Ken Mayhew, a member of the AFP Canadian Government Relations Committee and chief development officer of the MS Society of Canada, and Terrance S. Carter B.A., LL.B., trade-mark agent, managing partner of Carters Professional Corporation and a member of AFP, will present material that will give participants a better understanding of the CRA guidance on fundraising process, purpose and application. There will be a Q and A session at the end.

54 – 1101 Nicola Street
Vancouver, BC V6G 2E3
Canada

Phone and fax remain the same.

Thanks for the coffee and conversation, Dane!

This workshop will help you understand and get comfortable with the asking process – from preparation to a face-to-face solicitation. Choose from September 30 from 1-4 pm or October 8 from 9 to noon. The early bird fee is $175 and you can register online or call me at 604-682-6582 for more information.

The Fundit in its old stand-alone blog form has been retired and I’m now going to share thoughts, news and ideas through the News part of the site.

Thanks very much to Christine Rondeau of Bluelime Media for smoothly upgrading us to the latest version of WordPress and for the many many tweaks and improvements along the way.

Some of the highlights:

Ratio of fundraising costs to fundraising revenue

• Under 35% – Unlikely to generate questions or concerns.
• 35% and above – The CRA will examine the average ratio over recent years to determine if there is a trend of high fundraising costs. The higher the ratio, the more likely it is that there will be concerns and a need for a more detailed assessment of expenditures.
• Above 70% – This level will raise concerns with the CRA. The charity must be able to provide an explanation and rationale for this level of expenditure to show that it is in compliance; otherwise, it will not be acceptable.

Best practices

1. Prudent planning processes.
2. Appropriate procurement processes.
3. Good staffing processes.
4. Ongoing management and supervision of fundraising practice.
5. Adequate evaluation processes.
6. Use made of volunteer time and volunteered services or resources.
7. Disclosure of fundraising costs, revenues, and practice (including cause-related or social marketing arrangements).

Areas of concern that could lead to further review

1. Sole-source fundraising contracts without proof of fair market value.
2. Non-arm’s length fundraising contracts without proof of fair market value.
3. Fundraising initiatives or arrangements that are not well-documented.
4. Fundraising merchandise purchases that are not at arm’s length, not at fair market value, or not purchased to increase fundraising revenue.
5. Activities where most of the gross revenues go to contracted non-charitable parties.
6. Commission-based fundraiser remuneration or payment of fundraisers based on amount or number of donations.
7. Total resources devoted to fundraising exceeding total resources devoted to program activities.
8. Misrepresentations in fundraising solicitations or in disclosures about fundraising or financial performance.

If you work in fundraising, this is a must-read! The whole policy is here.

Last year their staff spent a frenzied weekend helping four nonprofits in a variety of ways… renovating a playroom, creating a communications plan, and generally using their ingenuity to turn a small amount of money into a big impact for kids.

This year they will be selecting three groups. Go to their website and nominate your organization by June 1, 2009 if you are:

• - a registered non-profit organization;
• - based in Vancouver;
• - secular; and
• - make a difference in the lives of children and youth (under 24 years old).

This year’s Little Give takes place from 4 pm on June 18th to 4 pm on June 20th. You’ll also be able to follow the fun on Twitter and Facebook.
]]> http://blueprintfundraising.com/the-fundit/2009/05/11/the-little-give-is-back/feed/ 1 http://blueprintfundraising.com/the-fundit/2009/04/15/hugh-jackmans-100k-twitter-challenge/ http://blueprintfundraising.com/the-fundit/2009/04/15/hugh-jackmans-100k-twitter-challenge/#comments Wed, 15 Apr 2009 14:43:58 +0000 Andrea Seale http://blueprintfundraising.com/the-fundit/2009/04/15/hugh-jackmans-100k-twitter-challenge/ That elevator speech you’ve sweated over is really going to come in handy here!

Actor Hugh Jackman is giving away $100,000 to someone’s favourite organization. Tweet your case to him here.


]]> http://blueprintfundraising.com/the-fundit/2009/04/15/hugh-jackmans-100k-twitter-challenge/feed/ 1 http://blueprintfundraising.com/the-fundit/2009/04/01/insights-from-the-afp-international-conference/ http://blueprintfundraising.com/the-fundit/2009/04/01/insights-from-the-afp-international-conference/#comments Wed, 01 Apr 2009 16:07:37 +0000 Andrea Seale http://blueprintfundraising.com/the-fundit/2009/04/01/insights-from-the-afp-international-conference/ The annual Association of Fundraising Professionals International Conference is on now in New Orleans. If you aren’t there (I’m not), you can still access some of the ideas being talked about in the sessions.


AFP has some coverage on their own website and the Chronicle of Philanthropy is posting highlights in their Conference Notebook. They have  audio interviews with presenters that you can hear without being a subscriber, such as this interview about attracting younger donors.

I found this interesting — its from a survey of organizations in the midst of capital campaigns:

- When asked whether and how they would do things differently in budgeting for a big campaign, 31 percent of respondents said they would engage in more formal campaign planning. Twenty-three percent said they would monitor campaign costs more closely, and 13 percent said they would fold the campaign budget into the overall financial goal of the drive.

- The average campaign budget included 39 percent for staff members, 22 percent for consultants, 19 percent for marketing, and 20 percent for other costs such as events, travel, and office expenses.

]]> http://blueprintfundraising.com/the-fundit/2009/04/01/insights-from-the-afp-international-conference/feed/ 3 http://blueprintfundraising.com/the-fundit/2009/03/30/help-your-board-succeed-in-friend-raising/ http://blueprintfundraising.com/the-fundit/2009/03/30/help-your-board-succeed-in-friend-raising/#comments Tue, 31 Mar 2009 03:26:55 +0000 Andrea Seale http://blueprintfundraising.com/the-fundit/2009/03/30/help-your-board-succeed-in-friend-raising/ On April 15th Volunteer Vancouver is offering a workshop on a perennially important topic… “Increasing the Board’s Involvement in Friend-Raising.”

You’ll notice that says friend-raising not fundraising. It’s a good approach that many organizations could benefit from — you must walk before you can run and give board members the support, tools and environment to succeed in building relationships on behalf of your organization. Those relationships will naturally lead to all sorts of benefits for your cause, including donations. You can find out more and register here.

]]> http://blueprintfundraising.com/the-fundit/2009/03/30/help-your-board-succeed-in-friend-raising/feed/ 0 http://blueprintfundraising.com/the-fundit/2009/01/05/new-year-new-fundraising-realities/ http://blueprintfundraising.com/the-fundit/2009/01/05/new-year-new-fundraising-realities/#comments Mon, 05 Jan 2009 17:22:57 +0000 Andrea Seale http://blueprintfundraising.com/the-fundit/2009/01/05/new-year-new-fundraising-realities/ Happy New Year!

This my first day back to work after two lovely weeks off. I’m feeling apprehensive about what’s going to happen to both charitable giving and the pressure on charities for services in the year ahead. January will be the month to assess how your holiday giving compared to previous years and think hard about how your fundraising plans should change to deal with the economic climate.

I wanted to share a few random things with you:

AFP Vancouver has asked the government of British Columbia to increase the provincial portion of the charitable tax credit. The province’s Finance Committee is recommending that the government include AFP’s recommendation in the upcoming budget. Should the government decide to include the measure in the 2009 budget, it would place BC on par with Alberta and provide a combined (federal and provincial) charitable tax credit of 50 percent at the top-end. Please take the time to send a letter or email to Finance Minister Colin Hansen in support of this change. It is the kind of policy reform that could help encourage donors to give.

Also from AFP Vancouver, registration for First Course is now open. The course dates are February 16th and 17th. Early bird prices are available until January 16th.

Over the holidays The New York Times had an article about a fundraising success story that began at the BC SPCA and has gone on to raise more than $30 million for the American SPCA in the last two years. Their most successful fundraising appeal ever is a two-minute TV ad featuring Sarah McLachlan. Simple, emotional and powerful. The ad has generated 1,000 new monthly donors for the BC SPCA. It all came about because a board member, who knew McLachlan and that she loved animals, asked if she would do it. (Thanks to Mary-Ev Anderson for pointing out the article.) Here’s the ad:


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