Yearly Archives

2017

Jan 09

Considerations for choosing your nonprofit’s fiscal year end

By Sponsor Insight

By Nikki Kubly, director, BKD

Throughout the years, I’ve received questions from not-for-profit organizations (NFP) regarding the costs and benefits of changing to a fiscal year-end. I’ve seen organizations transition from Dec. 31 to fiscal year-end for many reasons, but the overarching motive is the budget challenge. Many organizations with individual-driven contributions receive a majority of revenues in the fourth quarter of the calendar year. With a calendar year-end, many NFP organizations are waiting for generous donors to contribute last-minute for personal tax reasons.

This article touches on some of the benefits and costs of changing to a fiscal year-end.

The IRS states a fiscal year should coincide with the organization’s natural operating cycle. These are some example questions:

  • What is your organization’s most significant quarter for revenue generation?
  • Do you rely mostly on individual giving, traditionally taking place near the December 31 year-end?
  • Are you an educational institution where a significant portion of tuition is generated in the fall?
  • Are revenues mostly generated in the summer months,g., zoos?
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Jan 09

Fundraising predictions for 2017

By Feature, Fundraising

Fundraising in the UK received several hammer blows in 2016, on top of a continuation of strong negative currents for some income streams, and uncertainty over Brexit and worries over the US elections didn’t help our donors or trustees confidence either. The resultant mood around our Top Table gatherings of the leading fundraisers was sometimes grim, but as the resourceful and optimistic natures of fundraisers kicked in new trends and possibilities began to emerge on which I have based my predictions for 2017.

Naturally these are also flavoured by our experience as consultants and it may be significant that the first three proposals we have sent out in 2017 are all in response to organisations expanding their international reach in one way or another.

  1. Overseas expansion

So, the first prediction is that international NGOs will step up their fundraising in new countries and new continents. This trend we saw take off in 2016 as we did market entry analysis in Latin American, Africa and East Asia. This is a step change from expansion across Europe which was perhaps stage one in the process of NGO globalisation.

We see this not just as asking local staff to raise funds where they happen to be, but the setting up of fundraising offices worldwide, the training of staff and investment in research and a variety of fundraising techniques.

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Jan 09

James Bond of philanthropy’ gives away the last of his fortune

By Feature, Fundraising

By Jim Dwyer, reporter, New York Times

As it happens, Donald J. Trump is not the only person to announce plans to shut down a personal philanthropy, just the best known.

This is the story of a man who made and kept that same promise.

Nearly five years ago, Charles F. Feeney sat in a cushy armchair in an apartment on the east side of Manhattan, grandchildren’s artwork taped to the walls, and said that by the end of 2016, he was going to hand out the last of a great fortune that he had made.

It was a race: Mr. Feeney was then 81, and Atlantic Philanthropies, a collection of private foundations he had started and funded, still had about $1.5 billion left. Flinging money out the window or writing checks willy-nilly was not Mr. Feeney’s way.

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Jan 09

On philanthropy: Seven trends in philanthropy to expect in 2017

By Feature, Fundraising

By Bruce DeBoskey, The DeBoskey Group, The Denver Post

Last year was a great year for philanthropy. It included record levels of giving and impact investing and more strategic approaches to charitable efforts. This year, 2017, will likely launch its own unique trends. I’ll be watching for these highlights:

1. Reduced tax incentives for giving

Many knowledgeable observers predict that Congress will reduce income tax rates for the wealthy — thereby decreasing the tax savings from charitable deductions. Many also expect the estate tax will be eliminated — reducing the tax incentive to make final charitable contributions.

Some predict the new administration will seek to limit or even eliminate charitable deductions. Others expect that changes will be made to donor-advised funds — implementing payout requirements similar to those required of private foundations.

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