Showing posts with label funding. Show all posts
Showing posts with label funding. Show all posts

Monday, March 16, 2015

The politics of funding – Is your program relevant to grantors?

The reality of nonprofit funding is that sometimes your mission isn't trendy enough to attract support.

Take the current interest of increasing participation in post-secondary education, and contrast it with the goal of helping low-income people get jobs.

One the one side you have millions being poured into missions supporting STEM education, such as instruction in how to access financial aid for college.

On the other hand you have more local nonprofits struggling to get enough funding to do things like improving access to the workplace for people who just need a steady paycheck.

One group with the latter mission focuses on providing decent clothes for interviewees and training to improve interviewing skills and focuses primarily on workers aged 40 and up, displaced from the job market during the recession. Typically they purchased clothing from local retailers and made it available to interviewees. The program budget was in the low five-figure range annually.

This group is starting to find that even jobs which shouldn't require any sort of post-secondary degree are suddenly being restricted or at least are preferential to college grads only.

An example of this is seen in an advertisement for seasonal employees for a major home improvement supplies retailer. The specific opening was for a seasonal week-end position assisting customers in the lumber department.

The ad reads as follows:
"Preferred Qualifications:  Associate's Degree in Business, Retail Management, Specialty related to department (e.g., design, appliances) or related field OR Certification in trade related occupation required."

Most potential applicant's never get past that sentence, although much further on in the ad it does say a minimum of one years experience is also acceptable.

The low-income-focused nonprofit had several people available who had actually done the job for other employers, or who have experience in other types of sales, but they don't have any of the paperwork required. No degrees, no certifications, just decades in the building material or building trades. Several of their people applied, but none were even interviewed.

That matters, because it lowers the impact, i.e. the provable results of their program, making their program appear less effective.

The aforementioned NPO working with the older jobseekers stated that most of their previous funding sources had switched over to what the frustrated ED called "more media-attractive" support. Their funding has dropped by over 50% since 2010, due to grantor mission realignment.

I suggested that perhaps they needed to incorporate programs that were more, shall we say, "funding-friendly" such as programs to get their people into some type of educational setting or training to make a complete career change.

His answer was that maybe funders need to start looking at the world his people lived in today.

He said "These are people with an excellent work ethic and fully marketable and useful skills, who have from another 15 to 25 years left in the labor force. They have families to support NOW. They have household expenses NOW. They haven't done a thing wrong except to become politically and socially irrelevant. Maybe by the time they can retire or die, we will all be replaced by robots, but that time isn't NOW"

Unfortunately that conundrum is the reality of funding. Sometimes, no matter how worthy or timely the cause, it doesn't resonate with grantors.

That reality will eventually impact your results, so getting a handle on a solution will definitely affect your future.

The answer is to either pursue a shift in your own focus or seek out new funding streams and new supporters, and continue to educate the public on the value and relevance of your mission.

In the end, we designed a campaign to appeal directly to individual donors, utilizing both direct clothing donations and a crowdfunding appeal that ultimately raised enough money to meet goal. Longer term, the NPO is seeking to develop relationships with new grantors.

If I can help you with funding solutions, drop me a line at rightwords@ida.net

Tuesday, September 17, 2013

Dot Org doesn't mean nonprofit

One of the suggestions I make so often that it should be a recorded message is that nonprofits need to provide substantiation of their status on their website home page. Here's a good reason why that is going to result in more donations.

Recently a friend asked me to research a charity. She had gone to their website, where everything suggested it was a nonprofit. It had a dot org DNS address, nice home page, well crafted mission statement, heartfelt stories of people they helped, donation button, in short, all the things you would expect on a nonprofit website. On the "about us" page however, there was some wording that disturbed me. It was subtle, and I don't think it would have set off alarm bells for most people.

I checked with all the usual verification sites, including the IRS. No listings. I checked social media. Nice page, but none referenced their NPO status specifically. Then I did a press release search, and there they were, back in 2008. "Local entrepreneurial group (name here) opens OJT training and placement firm".

This "dot org" is a business, plain and simple. Is it misrepresenting itself as a charity? It sure looks that way. Just for kicks, I clicked on the donate button, and there it was…"donations are not tax deductible" in little tiny print. It didn't specifically say that they are a business. They were relying on that "dot org" and the slick website to plant the suggestion that they are a charity. I also sent an email requesting a copy of their nonprofit paperwork, either Federal or state, but I never got a reply.

If you are putting up or revising a website, and you are a real nonprofit, I strongly suggest that you provide a link to a copy of your determination letter, or at least the date you got the letter on your site. Even if you are only a state-registered nonprofit corporation, don't make prospective supporters spend an hour or more trying to verify your status. They won't. They will just leave.

The dot org designation used to be more or less reserved for nonprofits, but that is no longer true. Schools, churches, some clubs, cities and really just about anyone can use that domain designation. I have seen some suggestions that nonprofits should have a DNS registry of their own, but so far it hasn't happened. Wikipedia states that the number of dot org registrations jumped from one million or so in the 1990's to over ten million as of June 2012. Could some of those be fraudulent charities?  Ab-so-lutely!


You should be proud enough of your nonprofit to provide irrefutable proof up front of your status. My friend is really into the cause this phony nonprofit supposedly supports. She would support a legitimate group well. But I can guarantee that she isn't going to support this one, and she'll be a lot more discerning about believing a website again, based solely on their URL and a donate button.  She is also reporting them to her state attorney general's office.