Part II of this series suggests that financial professionals, donors, and even nonprofit organizations perpetuate misconceptions that hurt giving and organizational effectiveness. Effective communications may be critical to the success and survival of nonprofit organizations.

Part III focuses on the role of online communication in donors’ decisions to give to charities and nonprofit organizations.

The March 2010 Convio study, “The Next Generation of American Giving,” offers information useful to nonprofit organizations challenged by the need to appeal to four generations of possible donors. Each generation has communication channel preferences and different needs and expectations.

The communication channels range from phone calls and direct mail to social networking sites and web sites. In order to reach donors and other constituents, nonprofit organizations need to leverage these communication channel preferences to reach each generational audience. 

According to an excerpt from Jakob Nielsen’s report on web site usability, the ability to find and understand a nonprofit organization’s mission and goals are a “key factor” in the giving decision. Regardless of the communication channel used, potential donors and other constituents expect to find basic information about a nonprofit organization:

• Mission
• Vision
• Services provided/clients served
• Success stories/outcomes
• Current projects/goals
• Donation information
• Contact information

Communicating key messages and making important information easy to find are important aspects of the donors’ experience – how donors feel about the organizations.

Since giving decisions can be based on emotion, the value of clear, accessible communication cannot be underestimated.

Our jobs as marketers and fundraisers are to find stories that can be easily told and re-told, but that are sufficiently compelling to get a response. Good stories have three key elements — a character you care about, escalating conflicts and a payoff.

Homer Simpson for Nonprofits

If donors can’t find the information they are looking for, they will look elsewhere. Looking elsewhere could mean giving elsewhere.

Donors have plenty of external resources available. For example, the Better Business Bureau provides the Wise Giving Guide and links to accredited charities.

Charity-rating organizations and watchdog groups provide information that can influence donors’ decisions. Organizations such as Charity Navigator, Philanthropedia, GiveWell, GreatNonprofits, and Guidestar each use different criteria to evaluate nonprofit organizations.

Communication that is accessible how and where each of the four generations of donors may be looking for it stands the best chance of reaching them. Communication that allows potential donors and other constituents to assess nonprofit organizations’ effectiveness based on their outcomes – the difference they are making – provide an alternative to financial ratios. Combining accessible information with compelling stories can be a powerful combination. For the nonprofit organization, a well-designed website with accessible, basic information can be a 24-hour communication tool. It is a great resource that can be used to influence donors.

Please share your stories about the role of online communication in donors’ decision-making.

Plan B. 4.0 written by Lester Brown is an excellent illustration not only of the challenge that we face as a species, but also some very sound prescriptions for charting a path out of the maelstrom.  One of the clear solutions is renewable energy; a symbol of the task facing our generation both to reduce C02 emissions and for providing for humanities energy demands.

I had been working towards finishing the review; then, on April 20^th, the Earth Policy institute beat me to the punch.  Their review was ahead of my schedule, but just in time for Earth Day.  And who can beat an abridged review by the author himself?

Resolving to stay within the subject, I’ll use Plan B. 4.0 as segue to the next trail that I found myself on.  Sunday April 24^th was the Earth Day celebration at Forest Park.  Among the venders and booths, I ran across a couple that specializes in wind energy auditing.  They explained how they actually audit the energy efficiency of homes.  Our discussion led us to the topic of renewable energy for the future, living off-grid, and leading a sustainable lifestyle.  They pointed me towards the Evergreen Institute, and the author of some two-dozen books on renewable energy and many of the related fields of expertise, Dr. Dan Chiras was a pleasure.  He’s spent the past 15 years working with renewable energy systems, and now has two homes both off-grid, and grid connected that are completely sustainable.

Passive Energy

The concept of getting energy from an abundant and renewable source is powerful.  In a world where humanity is dependent on constant availability of energy, we are faced with limited options, but we must make our choices carefully.  On March 24th, 1989 the Exxon Valdez oil spill was the largest in US history.  That 11 million gallon spill was limited to the oil inside the supertanker and while irreparable damage affected wildlife and ecology, large-scale human impact was seemingly less of an issue.  The effects of that disaster are still felt today.  The April 20th spill in the Gulf of Mexico adjacent to large population hubs is expected to approach the scale and degree of damage that was seen in Prince William Sound and it is flowing from a source that keeps on giving.

We can choose to continue looking towards fossil fuels, the once abundant and “inexpensive” –at least in the short term- resource, or we can be honest with ourselves and account for the whole cost of our energy choices.  Chiras book reflects this very real choice.  His work towards promoting sustainable lifestyles and specifically solar, and wind energy systems has been multifaceted.  At the Evergreen Institute, Dr. Chiras teaches a variety of courses on all things solar, wind power, green homes, and specific techniques and products for building green.  He is also the president of sustainable systems design, a consulting company for green building design and renewable energy.

Wind Power Basics is an introduction to wind power that covers the various aspects of generating energy from the wind with a comprehensive and straightforward voice.  The book is full of insights that the author and his colleagues have learned through years of actual experience in the wind industry.  These ideas are explained both thoroughly and simply, and are enhanced by relevant photos, graphs, and illustrations.

The most admirable aspect of this book is the careful but precise way that Chiras navigates his advocacy and support for alternative energy.  He does an admirable job of acknowledging critics and their concerns about possible drawbacks of the industry without handing out a verbal beating if they decide not to agree.

Structure and Content

Wind Power Basics is structured in nine parts.  It begins with an introduction to small scale wind energy with a short history of windmills and wind generators.  It follows with a layout of the pros and cons of constructing including “falling ice from turbines after an ice-storm.”  The book is completely fair.  Aside from a Massive windspill, you have to be pretty imaginative to come up with a scenario that would make wind power more damaging to the environment and our lives than fossil fuels.

The second chapter discusses wind generation and goes into how to assess the wind that is available in your area.  Height is the clearest part of this chapter.  That is, proper height of your wind generator will pay off in energy returns.  Less turbulent wind that is located at an appropriate elevation above obstructions will ease ware and tear.  Your machine will last longer, and the homeowner will have less cost associated with more frequently replacing parts.

Chapter three has a to-the-point overview of three types of wind systems.  Anyone considering buying or building their own wind system has a variety of set ups to choose from.  For a home that is completely off-grid an introduction is found here; for more, the reader will find chapter seven useful on batteries and storage.  A battery-less, grid-tied system is also introduced.  Using the grid to store electricity is the most efficient, least expensive, and environmentally [carbon] neutral method.  Chiras also explains the pros and cons of a grid-connected system with batteries in reserve for places that have frequent blackouts.

Assessing your electricity needs

The next chapter details how to determine your electrical needs as well as your site potential for generating electricity from the wind.  Assessing energy needs is also complimented by the flip side of using energy- that is: efficiency and conservation.  Chapter five is all about the types and functions of wind turbines as well as some shopping tips and how-to on building your own system.  Chapter six is all towers, the pros and cons of free standing, free standing guyed, and collapsible guyed with a knuckle boom hinge.  As mentioned above, chapter seven discusses storage of electricity and the different types of batteries.

Converting the electricity from wild wind to grid compatible voltage is achieved with an inverter.  Chapter eight covers how they work, what they do, and what to consider when shopping around.  Finally, the most important skill to learn about when considering which type of system to build is maintenance.  The type of system, what kind of tower to purchase, batteries, and more are tied to the question of maintaining your home power plant.  The chapter also covers information on types of insurance, financing methods, permits and zoning.

Extensive resources wrap up the book; a map that can lead anyone interested in learning more in the right direction.  An unabridged version of this book called Power From the Wind by Dan Chiras goes into even more detail.  For more about Wind Power Basics, go to www.evergreeninstitute.org.

San Francisco, California is a great city with numerous cultures and history driving it to be a hot destination this summer!  It has also been a favorite travel destination for many years which is why it rounds out the top 3.

The Icon of San Francisco: The Golden Gate Bridge

Why You Should Travel to the Popular spot of San Francisco

Just like in Las Vegas, San Francisco has been long suffering from the drop in the hotel business.  These two cities are popular with business travel but as businesses strive to make ends meet they cancel unnecessary business trips and conventions.  So this is another city where deals are there to be had by vacationers!  If you do your research right and plan your trip in advance you could easily score a four star hotel room well under the regular price! So if you do you research right, I prefer kayak, you could end up with a great hotel with the perfect price tag.  Another option to consider with San Francisco is to check out their travel site which even lists great hotel deals for you.  I found this to prove to be extremely useful.  But the key to finding the best deals is to do research and plan ahead otherwise you may have lost your chance to snag a great deal!

Diversity is What Makes San Francisco Popular

San Francisco is known for it’s landmark park of the Golden Gate which is a landmark that is recognizable around the World.  Among the virtually unlimited eateries and endless shopping, visitors can plan fun trips to the Aquarium of the Bay, Fisherman’s Warf, Presidio National Park, or check out an architectural tour or take a tour of the notorious prison Alcatraz.  But besides the noteworthy attractions San Francisco also offers other treasures and surprising finds on the streets:

• Ferry Plaza Farmer’s Market – Home to the idea of slow food, this farmers market is rated one of the best in the U.S. and offers some of the best cheeses, endless piles of mushrooms and delectable gelato that will surely fill any traveler’s belly!
• Take A Cable Car Joy Ride -  Buy a ticket for about $2 and take a relaxing ride around San Fran to enjoy the sights in a different way that offered in most cities!
• Travel to the Orient – Established in the 1800s, Frisco’s Chinatown is one of the oldest and famous in the U.S. This area of San Francisco is packed with stores selling everything from scarves and t-shirts to oriental fans and paper lanterns!
• Layout on Baker Beach – Mind you that the north end of this beach is clothing optional and it is not suitable for swimming it is a great site to have a picnic and to bronze your body!

Pier 39 located at Fisherman's Wharf offers many things to do and see!

These three destinations have all been suffering from low travel which create great travel opportunities for all travelers.  But just like with any deal it is all about the timing and you have to strike while the iron is hot (I know it is corny but so very true).  There are great adventures and experiences to be had at any destination.  Orlando, Las Vegas, and San Francisco just happen to be at the top of the list for travelers in 2010!

IMAGE CREDIT:

“Golden Gate Bridge”, Kevincole // CC BY 2.0

“Sea Lions, Fisherman’s Wharf, San Francisco”, Bill Lim // CC BY 2.0

“DSC15589, Pier 39, San Francisco, California”, Jimg944 // CC BY 2.0

In 2007, U.S. giving totaled $306 billion, of which nearly 75 percent came from individuals/households and more than 12 percent from roughly 70,000 foundations… The top 5 percent of donors account for 59 percent of all giving, 56 percent of the assets invested in donor-advised funds are held by the top 10 providers, and the largest 7 percent of nonprofit organizations command 58 percent of revenues.

The Nonprofit Marketplace: Bridging the Information Gap in Philanthropy

A philanthropic capital advising service for high net worth clients purports to be in the business of helping its client “do good.” Yet, according to the article, “How to Help Charities Even During Hard Times,” published in the Associated Press on July 25, 2009 and picked up by other national media outlets, they advise clients to “pay especially close attention to the overhead. Anything above 9 percent to 14 percent is out of line, and signifies that too much money goes to staff or office space and not enough to the beneficiaries.” No mention is made of any other metric, and the message is reinforced to anyone reading the article.  

Wealth Advising Services With Misconceptions Hurts Giving

With capital advising services steering high net worth clients away from nonprofit organizations with overhead costs that are perceived to be too high, at more than 9 to 14 percent in this example,  it’s important that any misconceptions are cleared up. (This bare-bones percentage is lower than many grant-giving organizations allow at 15 percent. At 15 percent, the amount allowed for overhead by some grantors does not even cover the cost of grant administration.) From the statistics cited by the Nonprofit Marketplace: Bridging the Information Gap in Philanthropy, it is clear that donor-advised funds and high net worth clients control  an extremely high stake in giving. Disqualifying nonprofit organizations on the basis of incorrect advice could have profound implications.

Imagine trying to run an organization without spending more than 9 to 14 percent on overhead expenses. Compare that to the for-profit world. According to the article, “Why Overhead Isn’t Evil in the Nonprofit World,” by Nancy Lublin, in the fourth quarter of 2008, Apple, Inc. spent 78 percent on sales, general and administrative expenses.

It’s not just the wealthy and their advising services who share misconceptions about overhead costs in nonprofit organizations. A Bridgespan Group article that cited a 2001 survey by the  Better Business Bureau Wise Giving Alliance Donor Expectations Survey found that more than half of American adults believed that nonprofit organizations should have overhead rates of 20 percent or less. Four out of five felt that it should be less than 30 percent. They also ranked overhead ratio and transparency more important attributes in determining their willingness to give to a nonprofit organization than the success of their programs.

Dan Pallotta and Charitable

A very passionate and outspoken advocate of leveling the playing fields for non-profit and for-profit organizations is Dan Pallotta, the author of Uncharitable. He talks about his views in this interview with Reason TV.

Studies, Reports and Briefs on Nonprofit Overhead Costs

The Urban Institute’s National Center for Charitable Statistics (NCCS) and the Center on Philanthropy at Indiana University did a five-year study on nonprofit overhead costs. Researchers examined more than 220,000 IRS Forms 990 and conducted 1,500 in-depth surveys of organizations with revenues of more than $100,000.

From that study, several briefs,and guides were issued including :

1. What We Know About Overhead Costs in the Nonprofit Sector
2. Who Raises Contributions for America’s Nonprofit Organizations?
3. Getting What We Pay For: Low Overhead Limits Nonprofit Effectiveness
4. The Quality of Financial Reporting by Nonprofits: Findings and Implications

Other work such as, “Nonprofit Overhead Costs: Breaking the Vicious Cycle of Misleading Reporting, Unrealistic Expectations, and Pressure to Conform,” by William Bedsford, Ann Goggins Gregory, and Don Howard and “The Nonprofit Starvation Cycle,” by Gregory and Howard of the Bridgespan Group illustrate some of the other findings.

Misleading reporting: The majority of nonprofits under-report overhead on tax forms and in fundraising materials.
Unrealistic expectations: Donors tend to reward organizations with the “leanest” profiles. They also skew their funding towards programmatic activities.
Pressure to conform: Nonprofit leaders feel pressure to conform to funders’ expectations by spending as little as possible on overhead, and by reporting lower-than-actual overhead rates.

The Vicious Cycle as described by William Bedsford, Ann Goggins Gregory, and Don Howard

Addressing Misconceptions about Nonprofit Costs and Overhead

After reviewing these reports,  a few points stood out that addressed some preconceived notions about nonprofit costs and overhead:

• Nonprofits have an obligation to manage finances responsibly
• Some financial ratios can be useful tools
• Without contextual information, they can be misleading or useless
• The best measure of nonprofit effectiveness is accomplishment of mission
• Spending money on overhead, contrary to popularly held beliefs, frequently helps nonprofits achieve mission
• Organizations respond to perceived and explicit pressures to keep administrative and fund-raising expenses low
• Organizations that spend too little on infrastructure risk the ability to effectively deliver positive outcomes for clients
• Donors can be educated about evaluating nonprofits by mission and outcomes rather than costs or overhead ratios

Whose responsibility is it to educate donors about the better ways to measure nonprofit effectiveness? What role do charity rating services and watchdog groups play in donor perceptions of nonprofit organizations?

Bearing all of this in mind, effective communications from nonprofit organizations can be critical to their success and survival.

Part III of this three-part series addresses Communication and Donor Decision-Making.

Part I of this three-part series addresses Shifting the Focus to Outcomes.

Image Credit: http://www.bridgespan.org/nonprofit-overhead-costs-2008.aspx

Where I Was

Leaving my job was one event in a series that made me realize I’d been living out of obligation, expectation and fear. I defined myself by the job I worked and the company I kept, fulfilling the roles I played for other people. I thought I was just distracted and stressed. I kept thinking that relief and homeostasis were just around the corner, just beyond whatever issue I was worried about at the time. In hindsight, I realize that I was distracted because my mind was trying to crawl out my ear to escape my life. There wasn’t anything particularly wrong with my life. It was just time for change.

When all the things that I had come to regard as defining qualities of me were stripped away–my job,  my income bracket, my friends, my relationship–I realized I was still standing. Within a six-month period my domestic and professional lives as I had known them had become history. I had an empty bed, an empty wallet, and an aging portfolio of creative writing that had collected nearly an inch of dust on its cover page. I felt like I had amnesia. Who the hell am I? What happens now?

Hitting Bottom

Enthusiasm is organic. It cannot be synthesized with positive thinking or self-discipline. If you have to convince yourself you’re excited or having fun, then you’re full of crap. I tried to get into stuff. I tried to establish points of interest on the horizon for me to anticipate. Nothing changed. I felt anxiety about everything but never excitement. I never woke up and thought, “I can’t wait to…” There wasn’t a thing in the world I wanted to do.

I looked at my creative work with the eyes of a stranger.  I was a different person when I wrote those things, and I couldn’t remember who that person was. I worried that whatever fire had burned itself onto those pages had long since been extinguished, that I had peaked at an early age. For years I had been working a job that I was able to put down when I came home, but during all that time I hadn’t produced anything.

When I was younger I had a love affair with my word processor. We became one under the cover of my darkened bedroom. The blank page was merely an extension of my mind, the counter space upon which I crafted ideas. When I was working, I would fail to blink. I would only notice when my eyes would begin to burn. My fingers couldn’t type quickly enough. Passion flowed from me. I would regularly weep while I worked. Writing was life. But, it was all gone. And I didn’t know how to get it back.

Looking Up

I felt like life wasn’t worth living for a while. The only cares I had in the world were for my family and a few very close friends. I knew I didn’t want to feel that way anymore. Since I had so much negativity, I decided to use it. I started an incomplete list of things I knew I didn’t want. It included jobs, school, relationships…everything. From there, I started thinking about who and how I wanted to be. When people asked me about myself, what did I wish I could say?

I have a theory that people go through multiple periods of adolescence–maybe every 10 to 15 years, depending on the person. I think of adolescence as a simple transitional period. You realize that what you thought life was all about turned out to be nothing. You’re left feeling disillusioned and exhausted, not to mention pissed off because so many of your misconceptions have come to light. Teenagers epitomize this transition, but I don’t think dealing with hormones and the angst of young adulthood is the last time you’re scheduled to visit that territory.

My Secondary Adolescence

It was time, again, for me to shed skin and begin fresh, and that is never a neat and tidy process. The plan from here is to make all my decisions with love and respect for who I am and what makes me happy. Janis Joplin said, “Don’t compromise yourself. You’re all you’ve got.” I believe that to be true. The obligation I have is to myself. Everything else is a choice that I am free to make, and I will never forget that again.

I have approached my job search like I was going on a date. When looking into a detailed image of what the job was and what it meant for me, I’ve respected myself and the employer enough to admit to myself that it just wouldn’t work. Rather than contorting and contriving, putting someone else’s best face forward–I just let it be.

Living and Working with Passion

I wrote a review of Brenda Ueland’s book If You Want to Write: A Book about Art, Independence and Spirit. The book does not directly address unemployment, nor did my review. I wanted to feature that book because of its power to motivate. There are plenty of books and blogs that talk about unemployment and depression. There is a lot of advice available for taking care of yourself, with suggestions like, “stay active.” Those things are great. Still, I can’t help shake the image of someone in dirty house-clothes, reluctantly dragging herself along for a daily walk. My concern is the fire within us.

After graduating from college, I was unemployed for about year and a half. That period was a more common unemployment experience. I thought I was leaving college to walk into my future. Instead, I walked into dozens of brick walls and closed doors and eventually into my aunt’s basement apartment where I spent about eight months playing video games to fill up all my free time. I’d get interviews but never get the job. I was inexperienced or over-qualified. I thought temp agencies would provide me with the opportunity for experience. I had a degree in two reading and writing intensive fields, after all. I was more than capable. I had been a general office assistant for a doctor for more than a year while I was in college. I had two years of experience as an office assistant for one of my professors, and a year of experience as a T.A. for Greek philosophy.

For a while the temp agencies I told me that I didn’t have enough experience to work for them. I failed to understand in light of my education and job history. After a while, they changed their tune and said that the experience I had was simply not recent enough. I’m still not sure what bold advances were made in the field of alphabetizing during that four-year period, but clearly it was critical. I have no idea what issue temp agencies anticipated having with me. “Smart, capable, responsible and reliable…I have a bad feeling about her.”

I ended up getting jobs that didn’t allow me to use my degree, which my dad still mentions regularly. The life experiences that those jobs have given me has been just as valuable as my education. From working shoulder to shoulder with large, strapping boys on the loading docks, to shaking and pouring cocktails for weekend-warrior yuppies, I have learned something worth knowing from every person I’ve encountered.

A Broken System

I still harbor resentment for temporary agencies. I could never get over how technologically stunted the people working within them seemed to be. Their word processing tests, for instance, were usually in Microsoft Word. I had Microsoft Works on my computer. I once tried explaining to a woman behind a desk who administered my test that the programs did the EXACT same thing, and that I thought the score reflected by their particular test was an inaccurate assessment of my abilities. That didn’t go well.

It also made perfect sense that I wasn’t allowed to backspace while taking my typing test. A single wrong keystroke could throw off an entire paragraph of text, causing cascading errors that counted against my WPM count. Well, clearly I couldn’t work for their clients. Unless you can type without making a single mistake, you have no place in the challenging world of data entry.

It’s Not Me

It took all that real-world experience I mentioned to realize that it’s the system, not me. There are some people who can work within that system. They just get it. For some of us others, though, I think we’re better off heading out on our own. I often think that the world of self-employment is the most logical decision. That way we’re not at the mercy of other people telling us what we can do, when we know damn well we can do so much more. Maybe after years of thriving as an independent and establishing a portfolio of hard evidence to attest to our worth, someone will say, “Come work for me. I’ll give you benefits.”

Until then, I think I’ll be plugging away at freelancing along side whatever job I get to do next. And I feel good about that.

How It Finally Happened

I left on my terms, after saying exactly what I needed to say to the person who needed to hear it, and I have had no regrets. The people closest to me congratulated me on my decision, but people who didn’t know me that well couldn’t believe I would leave a steady job in such a bleak job market. That perspective gave me the feeling that I had done something wrong, but I shook it off. I just knew it was time.

Inactivity Breeds Inactivity

Choosing unemployment over working for bad people may seem rash and irresponsible, but all I can say is that my gut told it me it was the right thing to do. In my experience, you have to take a flying leap into the unknown from time to time. For the sake of security you may sit idly on the sand, waiting for the next big thing to wash ashore at your feet. But that’s not how life works. When the tide goes out, as it inevitably will, it’ll take the sand right from under you. Why just wait around to see what happens? Sometimes, making rash decisions is good for you.

Rash Rewards

I have a history of making seemingly rash decisions while teetering on the edge of financial ruin, and those decisions usually work out in my favor. I call those decision rash only because other people have perceived them as such, but I don’t really feel that way at all. When I make a definitive decision, I feel like I have taken control of the situation. I never do anything without over thinking it first. History has taught me that I am the only person who can know what the right decisions are for me, and I don’t have to apologize to anyone for following through with what’s right for me.

The last time I voluntarily left a job, I was far more scared because I felt like I had so few options. I worked for a parcel service for almost a year. I quit that job at three in the morning–when my shift was supposed to start–after sitting on the edge of my bed crying for 45 minutes and debating on whether or not to call in sick. They had screwed up my paycheck, refused to correct it, and denied me compensation for the bank fees that resulted.

Dock work was no joke. I worked too damn hard for that money to be dismissed. They counted on the fact that I was a young girl–and a nice girl at that. They thought I’d just take it and keep busting my butt for them. But after four months of trying to get things straightened out with minimal effort on their part, I just said no. At 11:00 a.m. that same day–eight hours after I quit–I got a call for an interview. That interview was at the bar where I would spend the next four years working.

Thoughts On the Matter

I know I’ve said it before, but…Sometiems things just work out.

This scenario is based on an example given by Kennard T. Wing in his commentary, “Overhead is Overrated in Financial Reporting,” in the October 1, 2009 edition of The Chronicle of Philanthropy. Wing is a senior consultant to the Center on Nonprofits and Philanthropy at the Urban Institute.

He wrote that a crisis hotline center did not upgrade its phone system because if it had, it would have been denied a “much needed” grant. Upgrading the phone system likely would have helped the crisis hotline center serve more clients and better perform its mission. But phone systems are overhead expenses, not directly related to programs and services.

What if, instead of upgrading the phone system, the crisis center wanted to provide additional training to the unqualified staff members who answer the hotline calls most of the time? Or what if they wanted to add a full-time psychologist to the staff?

Wouldn’t any of these expenditures benefit the organization and its clientele? Wouldn’t any of the expenditures help the organization in achieving its mission?

Upgrading the phone service, training the staff, or adding qualified professionals to the staff are all considered overhead expenses. Overhead expenses are viewed as less essential than program expenses, even though no nonprofit organization can run without adequate investment in infrastructure.

What if the distraught woman calling was your sister? How would you want the money spent?

Using Overhead and Ratios to Assess Nonprofits

Overhead can include such things as rent, electricity, payroll, and fundraising. Overhead is sometimes referred to as functional or indirect expenses. Many funders are unwilling to pay for a significant share of overhead expenses or to provide unrestricted general operating funds.

The program ratio for a nonprofit organization measures the relationship between its program expenses and its total expenses.

It is expressed as Program Expenses ÷ Total Expenses = Program Ratio

For a good overview of some basic financial indicators, such as debt ratio and liquid funds indicator, see “Why Ratios Aren’t The Last Word.”

Of particular concern to us is the use of overhead cost and fundraising cost ratios as stand-ins for measures of program effectiveness. No organization in our study was an extravagant spender on fundraising or administration. Yet contrary to the popular idea that spending less in these areas is a virtue, our cases suggest that nonprofits that spend too little on infrastructure have more limited effectiveness than those that spend more reasonably.

Nonprofit Overhead Cost Project

This article makes the point that while some financial ratios can be helpful in evaluating nonprofit organizations, without contextual information, they can be misleading. Factors such as size, age, location, and even the type of organization can have a bearing on operating expenses. For example, a zoo would require higher staffing levels, larger facilities, more insurance, etc. to run than a small pet rescue organization. It would cost more to run a food pantry in a major metropolitan area than in a small, rural community. It usually costs less to run an established nonprofit organization than to start a new one.

Using Mission and Outcomes to Assess Nonprofits

Looking at only one set of financial criteria cannot adequately assess nonprofit organizations. They are do not share a common measurable goal such as profit or adding to shareholder value as for-profit organizations do. Nonprofit organization have different missions and successful outcomes are defined differently. Perhaps a better way to evaluate nonprofit organizations is based on how well they have delivered on their missions and outcomes. Nonprofit organizations exist to solve problems. Having the ability to communicate how their outcomes have helped solve problems will provide opportunities for nonprofit organizations to increase their impact.

The outcomes should be easy to find on Web sites or on annual reports likes these for PetSmart Charities and Habitat for Humanity St. Louis:

PetSmart Charities
Lives saved through pet adoptions: 4,146,651 as of May 2, 2010

Habitat for Humanity St. Louis

When funders, donors, potential donors – any stakeholder – can readily see the effect a nonprofit organization is having, the focus will change. When the first thing that comes to mind is the results it has achieved, rather than the overhead it has spent, then a nonprofit organization will have made an impact, not only on their clients, but also on the minds of their donors.

Part II of this three-part series focuses on Misconceptions That Hurt Giving.

Part III of this three part series focuses on Communication and Donor Decision-Making.

Please send your success stories about using mission and outcomes to measure nonprofit results.

Our second destination is literally a playground for adults.  It is so easy to get lost in the bright lights of Las Vegas, Nevada and with some of the greatest shows on Earth it is easy to take in this destination in a just a couple of days.

The infamous welcome sign of Las Vegas!

Why You Should Consider The Popular Destination of Las Vegas

I dare you to name another city that is more infamous than Sin City.  In Las Vegas, a 24 hour city, a down on their luck individual can come out on top of the world, a wedding can be as easy as pulling up to a window, and bronzed beauties lay by the pool all day long.  Las Vegas has long since been an adults only club where there is always something to do.

Gorgeous architecture is only one part of the masterpiece that is the Aria.

However in all seriousness this hot destination has a lot of deals for vacationers on every single front.  From flights (many of the discount carriers fly there) to car rentals, Vegas has become a budget friendly location.

A huge reason Vegas is a great steal right now is due to the influx of new and large hotels like in City Center.  Because of these new additions Vegas has had a hard time filling those hotel rooms with guest.  Aria, a 4,000 room hotel in City Center, reported that on an average 1,600 rooms were empty.  To lure visitors to their luxurious rooms, Aria is offering deluxe rooms for $119 to $149 a night! And Aria is not alone in this price deduction as other hotels follow the trend making it easier to find the perfect hotel for the perfect price (Don’t believe me? Check out this search I did for 5 days in July)! Guests scoring this deal though avoid shelling out the original price of $400 while experiencing the finest luxuries a hotel has to offer.  Such luxuries at Aria include:

• State of the art electronic touch screen control panels which regulate the opening and closing of window shades, setting temperature, controlling theatrical lighting throughout the room
• the finest linens offering a comfortable sleep
• eye-catching decor

For more amenities check out Aria’s website!

As a Popular Destination Las Vegas Offers Some Amazing Activities

Besides being the gambling capitol of the World, Vegas also offers some great things to do and see for FREE! Yes I said FREE!  These items are sure to keep you busy and away from the blackjack tables:

• Ethel M. Chocolate Factory – Tours run from 8:30am until 7pm. The tour is free and also includes a complementary chocolate tasting! Can we say YUMMY!!
  
• MGM Grand Hotel’s Lion Habitat – This attraction is open from 11am until 10 pm daily and offers some great photo opportunities!
• Wildlife Habitat at the Flamingo Hotel - Watch all the animals throughout the day. If you can make it at 8:30am or 6 pm you will be able to see the penguin feeding.
• Sirens of TI – Watch a battle between pirates and the sirens who are trying to entice them to die. This show is at 7 pm, 8:30 pm, 10 pm, and 11:30 pm daily.  This show however is not recommended for children FYI!!!
• Circus Acts at Circus Circus – This is a great way to see the amazing aerialists, jugglers, trapeze artists, and clowns for fun without the expensive tickets usually associated with attending the circus. The shows are 10 minutes long and occur on the half hour from 11 am until midnight.
• The Bellagio’s Fountain Show – The fountains put on a light and music show every half hour from 3-8pm on weekdays and 12 -8pm on weekends. After 8pm, shows run every 15 minutes until midnight.

There is a lot of amazing sights to see and things to do in the bright city of Las Vegas!  The last installment of 2010′s Popular Destination will touch on a city that along with a rich history is a destination that stimulates every sense!  Check out San Francisco here!

IMAGE CREDIT:

“Welcome to Las Vegas”, Sid/Stephen// CC BY 2.0

“Aria Hotel”, Sirsnapsalot // CC BY 2.0

Strawberries

I once got a very strong craving for strawberry shortcake. I just had to have it. So I went to the local supermarket where I was pretty sure I had seen some and was greatly disappointed because they didn’t have any. But this craving was too strong for me to give up now. I had never made strawberry shortcake before but I went around the store and grabbed some ingredients anyway. What happened was not exactly what I would call strawberry shortcake but I would call it amazing.

I used mostly premade ingredients but it was the flavor combinations that mattered:

This recipe is very personal so feel free to change what you want. I have never used chocolate cake but I’m sure that would be great; and if you don’t like cream cheese frosting you can use vanilla or chocolate. You can even change up the fruit if you want. I imagine peaches would just be fantastic. It is important though that you buy whipped frosting if you can find it. If it is not available you will have to whip it yourself using a hand mixer.

1. Following the instructions on the package, make some cupcakes. I sometimes make my cupcakes a little bigger than suggested though, by putting extra patter into each cup. This gives me more to work with later.
2. Let them cool completely. You can make the cupcakes in advance but make sure you cover them tightly over night.
3. Using a spoon very gently scoop out the center of the cupcake. Be careful not to go so deep that you threaten the integrity of the cupcake.
4. Cut up your fruit to the desired size. Remember to be careful if you are using a fruit with a pit, like peaches.
5. Fill the cupcake hole with the chopped fruit. On average 1 strawberry will fill 2 cupcakes.
6. Gently cover the top of the cupcake with the frosting. This is a little tricky but it sometimes helps if you put a lot of icing on the knife and just kind of lay it on there instead of spreading.
7. Enjoy.

It is important that you only fill enough cupcakes for you to finish immediately. If you let the fruit sit in there it will make the cupcakes soggy and this is not too enjoyable. If you want to channel your inner Martha Stewart, get a rounded tray (or large plate) and put all your finished cupcakes on it. Then, on all but the center cupcake put any extra strawberry pieces on the tops. For the one in the center make a fanned strawberry and place that on top. This looks exquisite and will definitely impress. Fanning a strawberry is surprisingly simple:

This recipe is simple but fantastic and you will impress anyone you make it for!  They are really messy, but quite tasty. It is a very versatile desert but the freshness of the fruit makes a great end to a meal that incorporates fresh ingredients, like a bruschetta appetizer or fresh-tasting chicken parmesan.

Image credits:
Strawberries (La Trinidad, Benguet) by ~MVI~ (CC 2.0)