Philanthropy Front and Center-Atlanta

For-profit Ventures for Nonprofit Organizations

I came across a really interesting article the other day about how some nonprofit organizations are setting up for-profit subsidiaries to help generate additional revenue and to further their mission.

You can find the article, "Safety Line", in the June 2009 issue of Fundraising Success Magazine.  The author gives several examples of nonprofits that have set up for-profit subsidiaries, including Open Hand, based here in Atlanta.  This local organization delivers meals and nutritional information to low-income people with chronic diseases.  In 2005, they began a for-profit arm, Good Measure Meals, in response to a demand for nutritious meals for people who could afford to pay for them.  Although it wasn’t initially set up as a fundraising venture, Good Measure Meals contributed $430,000 to Open Hand in 2008.

The article stresses the importance of mission fit—aligning the work of the for-profit subsidiary with the mission of the nonprofit.  This will help at tax time when the nonprofit doesn’t have to pay unrelated business income tax (UBIT) on the revenue that comes from the for-profit venture. 

Another key point discussed is that starting a revenue-generating venture may not be right for every organization.  Along with profits can come risks, but those risks can be lowered through proper planning.  A nonprofit considering starting a for-profit subsidiary should consider 3 important characteristics to make sure doing so is right for them:

• Organizational assets: brand or reputation, skills and expertise
• Market opportunity: potential customer base
• Organizational capacity: able to handle checks, process invoices, manage customer service; appropriate managerial talent in place

For additional information on earned income, look in our Catalog of Nonprofit Literature using the search terms “Nonprofit organizations-entrepreneurship” or “Social entrepreneurship”.

Has your nonprofit set up a for-profit subsidiary?  Share your story with us.

Kayron Bearden, Reference Library, Foundation Center-Atlanta

 

Upcoming Special Classes and Events at the Foundation Center-Atlanta

Coming up in July and August, we have a number of special classes and events scheduled:

What You Need to Know About Fiscal Sponsorship
Presented in collaboration with Pro Bono Partnership of Atlanta
Wednesday, July 22, 2:30-4:00pm
What is a fiscal sponsor? Does your organization need one? Have you been asked to become a fiscal sponsor? Attend this workshop to learn about:

• The pros and cons of having a fiscal sponsor
• The risks and benefits to the fiscal sponsor
• How to avoid potential problems by entering into a fiscal sponsorship agreement

Presenter: Rachel Epps Spears, Executive Director, Pro Bono Partnership of Atlanta

Click here to register.

Following our Finding Foundation Support for Your Education class on July 23, join us for an interactive discussion around the search and application process for scholarships to fund post-secondary education. In this session you will:

• Learn about programs supported by Coca-Cola and other scholarship providers.
• Learn how to be a successful college/scholarship applicant.
• Discuss how a weakened economy affects college funding.

Scholarship programs provide upwards of $2 billion a year in support of students realizing the dreams of higher education. It is never too early to begin planning for life after graduation.

Presenter: Ryan Rodriguez, Program Coordinator, Coca-Cola Scholars Foundation

Click here to register.

Following our Your Board and Fundraising class on July 29, join us for an informative presentation on the legal responsibilities of nonprofit board members. In this workshop, you will learn:

• What are the roles, responsibilities and proper activities of the board of directors of a nonprofit organization?
• What are the potential liabilities of board members?
• What role should the board play in the day-to-day operations of the organization?
• What legal protections exist for board members?

This workshop will address these and other topics relating to the legal and fiduciary obligations of a board of directors.

Presenter: Lori Gelchion, Associate at Rogers & Hardin LLP

Click here to register.

Financial Fitness: Good Financial Policies for Nonprofits
Presented in collaboration with Pro Bono Partnership of Atlanta
Wednesday, August 5, 2:30-4:00pm
Nonprofits need to have good financial policies and procedures in place in order to satisfy funders, comply with IRS requirements, and avoid misuse of funds or even embezzlement. Attendees at this workshop will learn best practices for:

• Financial recordkeeping and reporting
• Investment policies
• Internal controls

Presenter: Wendy Stewart, Senior Vice President/Senior Client Manager at Bank of America

Click here to register.

Following our Finding Foundation Support for Your Education class on August 12, join us for an information and interactive presentation on the scholarships offered through The Community Foundation for Greater Atlanta.

The Community Foundation currently manages more than a dozen scholarship funds on behalf of donors, including the Dreams2 Scholarship Fund, the George and Pearl Strickland Scholarship, and the Nancy Penn Lyons Scholarship Fund. In this workshop, you will learn about the various scholarship programs managed by the foundation, as well as who is eligible and how to apply.

Presenter: Kristina Morris, Program Associate, The Community Foundation for Greater Atlanta

Click here to register.

Revise, Revamp, Rejuvenate: Ways to Survive the Recession
Thursday, August 27, 10:00-11:30am
Join us for a lively, interactive discussion about the options facing nonprofit organizations in these tough economic times. We will explore the advantages and disadvantages of collaborating with other nonprofits and different types of outside organizations, and provide information and tools to gauge when it makes sense (or not) to engage in partnerships, strategic alliances, and mergers.

Presenter: Terri Theisen, Theisen Consulting LLC

Click here to register.

Networking in Today's Economy
Presented in collaboration with Culture Connect
Friday, August 28, 1:00-3:00pm
When looking for a job, the phrase "it's not what you know, it's who you know" is especially true. Networking is key to growing your circle of business contacts and this experience can be both intimidating and overwhelming. In this workshop, you will learn:

• How to network effectively to find a job or expand your professional horizons
• How to make a great first impression and build relationships that last

Knowing how to network properly will afford you with opportunities to develop knowledge and skills, allow you to boost your reputation and gather professional leads, and provide a direct source for information and support within your career field!

Presenter: Chi Chi Okezie, Owner/Producer, SIMPLEnetworking

Click here to register.

Stephen Sherman, Reference Librarian, Foundation Center-Atlanta

Following the Money Trail: The Impact of the Economic Stimulus on Education in Georgia

If you’re wondering about the impact the economic stimulus will have on education funding in the state of Georgia, join us for this special education month program on Tuesday, June 30th at 2:30pm. Lauren Veasey, program officer, Southern Education Foundation will discuss the new federal stimulus law, the American Recovery and Reinvestment Act of 2009 (ARRA). This law offers Southern states an historic opportunity to improve public education from pre-school through college - especially for low-income students. ARRA allocates over $100 billion directly to the 15 states of the South for creating jobs and spurring economic renewal during the next two years, and more than one-third of these funds will go towards education. Reserve your seat and join the discussion.

For more information and resources for coping with the economic crisis, see our Focus on the Economic Crisis web page.

Also at our web page, Jamie P. Merisotis, president and CEO of the Lumina Foundation for Education, discusses the foundation's strategic, outcomes-based approach to expanding college access and success, particularly among low-income, minority, and other under-represented populations.  Listen!

Asia M. Hadley, Training Coordinator, Foundation Center-Atlanta

Next Week at the Foundation Center-Atlanta: June 29 - July 3

The library will be closed Friday, July 3, in observance of the Fourth of July holiday.

We invite you to our classes this upcoming week:

Indicates a special Funding for Education Month program.

Tuesday, June 30, 10:00-11:15am
Introduction to Fundraising Planning

Tuesday, June 30, 11:30am-12:30pm
Introduction to Corporate Giving

Tuesday, June 30, 2:30-4:00pm
Following the Money Trail: The Impact of the Economic Stimulus on Education in Georgia

The classes above are free to attend, but registration is required. For programs offered over the next three months, please see our Events Calendar.

Can't visit the Foundation Center this week? Check out our webinars.

Use our library:

• Search Foundation Directory Online Professional and other research tools for free


• Borrow books about nonprofit management and fundraising


• Ask our staff of experts for information assistance

We're open to the public Monday through Friday, 10am-5pm (first Tuesdays of each month, 10am-8pm). No appointment is necessary. See our web site for directions and parking information.

Stephen Sherman, Reference Librarian, Foundation Center-Atlanta

New Study Examines Funding for Women and Girls and the Importance of Women's Funds

Accelerating Change for Women and Girls: The Role of Women's Funds, a study published jointly by the Foundation Center and the Women's Funding Network, examines institutional giving to projects targeting women and girls and explores the growing influence of women's funds in the philanthropic landscape.

According to the report, which draws on the Foundation Center's grants data, fiscal summaries, and survey research, the rate of foundation giving for women and girls has grown faster than foundation giving in all areas. The role of women’s funds has also gained in significance in recent years, both in terms of actual grantmaking and in terms of bringing attention to “…the catalytic power of investing in women and in women-led solutions” (Highlights, p. 2).

"Women are a rising force in philanthropy," said Christine Grumm, president and CEO of the Women's Funding Network. "This report demonstrates the power women-led solutions have in creating sustainable change in communities."

In conjunction with the release of the new study, Josie Atienza, assistant director of research at the Foundation Center, and Grumm presented report highlights to a group of more than 60 grantmakers and nonprofit organizations. Other speakers were Bradford K. Smith, president of the Foundation Center; Larry McGill, senior vice president for research; Ana Oliveira, president and chief executive officer of the New York Women's Foundation; and Merble Reagon, executive director of the Women’s Center for Education and Career Advancement.

For a free executive summary of Accelerating Change for Women and Girls: The Role of Women's Funds and information on ordering the full report, visit the Gain Knowledge area of the Foundation Center's web site.

Listen! Bruno Manno Discusses Annie E. Casey Foundation's Investments in Education

Bruno Manno, Ph.D., senior associate at the Annie E. Casey Foundation, discusses the key role that schools play in advancing the foundation's efforts to improve outcomes for families and children. As the lead in the foundation's education portfolio, Dr. Manno shares information about the foundation's experiences investing in programs that give low-income parents the opportunity to send their children to high quality schools and to get services that strengthen their community-school connections. Listen!

June is Funding for Education Month at the Foundation Center. Check out our Focus on Funding for Education page for more podcasts, news, and resources.

Thanks to Cynthia Bailie, Director, Foundation Center-Cleveland, for sharing this post.

New Funding Guide for Preserving Historical, Cultural Collections

Working in collaboration, the Foundation Center and the Library of Congress have just released the second edition of Foundation Grants for Preservation in Libraries, Archives, and Museums. This publication, issued as a PDF file, includes over 1,900 grants awarded by close to 500 foundations to public, academic, research, school, and special libraries, as well as to archives and museums, for work in conservation and preservation.

Deanna Marcum, associate librarian of Library Services at the Library of Congress said, “We are currently developing new initiatives to help libraries, archives, and museums care for our country's vulnerable cultural patrimony, including modern media during challenging times. We are delighted to partner on this Guide, which will lead people to funding sources that can support their preservation efforts."

Foundation Grants for Preservation in Libraries, Archives, and Museums is available for free download at the Library of Congress web site, http://www.loc.gov/preserv/foundtn-grants.html.

Next Week at the Foundation Center-Atlanta: June 22-26

Evening hours next week! We will be open until 8:00pm on Thursday, June 25.

We invite you to our classes this upcoming week:

Indicates a special Funding for Education Month program.

Monday, June 22, 11:00am-12:00pm
Prospect Research Basics: Researching Individual Donors

Monday, June 22, 12:00-1:00pm
AFP Brown Bag Lunch: Prospect Research Tips & Tactics

Tuesday, June 23, 1:00-2:30pm
Grantseeking Basics

Tuesday, June 23, 2:45-3:45pm
Introduction to Foundation Directory Online

Wednesday, June 24, 2:30-4:00pm
 Early Childhood Education: Making a Big Impact on Little Learners

Thursday, June 25, 5:15-6:45pm
Proposal Writing Basics

Thursday, June 25, 7:00-8:00pm
Proposal Budgeting Basics

The classes above are free to attend, but registration is required. For programs offered over the next three months, please see our Events Calendar.

Can't visit the Foundation Center this week? Check out our webinars.

Use our library:

• Search Foundation Directory Online Professional and other research tools for free


• Borrow books about nonprofit management and fundraising


• Ask our staff of experts for information assistance

We're open to the public Monday through Friday, 10am-5pm (first Tuesdays of each month, 10am-8pm). No appointment is necessary. See our web site for directions and parking information.

Stephen Sherman, Reference Librarian, Foundation Center-Atlanta

ARRA – Keeping Track

By now, you’re probably familiar with Recovery.gov, the federal government’s web site that provides the public with information about the American Recovery and Reinvestment Act (ARRA), including updates on how the money is being spent. There’s a new kid on the block – Recovery.org. This web site was recently established by Oniva, a Seattle company that collects data about purchasing by governments at all levels. At Recovery.org, you can view all of the active projects by state, county, and city. You can also track by type of project and cost. A couple of interesting features include (1) a glossary of terms and (2) an opportunity for the public to comment on each project. Check it out.

Also, in your search for ARRA info, don’t forget the Foundation Center’s Mapshot:  Best ARRA Funding Sources by State, which is a collection of the best resources on how nonprofits may be able to access stimulus funding. Just click on the state you’re interested in. 

If you are with a social service agency, I hope you are tracking the Strengthening Communities Fund, which is making $50 million in ARRA funding available to the communities most impacted by the economic downturn. The focus of this Fund is to build the capacity of nonprofits that are addressing various economic recovery issues, such as employment. 

Have you found any particularly helpful web sites about ARRA?  Has your organization applied for stimulus money?  We'd like to hear about it. Please share via the Comments section below.

Pattie Johnson, Director, Foundation Center – Atlanta

  

Voices from the Field: Making the Most of a Wave of Volunteers

Aaron Hurst, founder and CEO of the Taproot Foundation, writes about how a confluence of factors including inspiration from President Obama's Serve America Act to the ongoing recession have led to an abundant supply of volunteers for the nonprofit sector and the challenges the sector faces in making the best use of this new wave of volunteers.  His Op-Ed piece appeared in the June 4 issue of the Chronicle of Philanthropy and outlines the lessons the Taproot Foundation has learned about managing volunteer teams effectively in its eight years of providing pro bono service grants to more than 1,000 nonprofit organizations in seven cities around the country.

Tell us what you think.  Do you have more volunteers than you can handle?  Or are you having a hard time matching your organizational needs to the types of things your volunteers are interested in doing?

Originally posted by Janet Camerena, Director of Foundation Center-San Francisco