Short Sighted Solutions

I get it.  We are a culture of immediate gratification and demand “results now”.  However, that is not a long-term solution for most issues.  It doesn’t work with diets.  It doesn’t work with making money.  So, it shouldn’t work for the Federal Budget either.

For too long, the Charitable Deduction Allowance has been target for removal or adjustment in order to reduce the deficit.  Jay Carney said earlier this week, “The President’s proposal, as you know, includes the provision that would cap deductions for wealthier Americans at 28 percent—a very common-sense proposition,”  I am typing this to inform people that this is not a common sense proposal!  Click here for a link to the article.

Those wealthier Americans are those individuals who can and do make transformational philanthropic gifts to nonprofits.  These individuals substantially fund the sector, which in turn, creates economic development opportunities throughout the Country.  Furthermore, the nonprofit sector as a whole conducts services that the private sector won’t (because there isn’t money to be made at it) and the public sector can’t (or at least shouldn’t).

Limiting the deduction takes away any leverage these philanthropist have.  With out them, the sector and the services provided, will die.



Nonprofits CAN Raise Money for Operations

“We can’t raise money for operations.  Donors don’t want to pay for salaries.” 

I have heard it all too often.  The well-connected, respected, influential (and often affluent) board member makes the statement that virtually kills the fundraising for an organization.  I know you’ve heard it too.

I have a request of my fellow nonprofit fundraisers and executives.  The next time you here this, please speak up.  Please inform your board members that your organization’s entire operating budget is your organization’s mission.  “Salaries” is the largest line item in an organization’s budget.  That’s because it takes people to do the mission of the organization.  And yes, they need to get paid.  If you need an example, use mine.

I work for a psychiatric hospital.  We don’t have operating rooms or fancy equipment.  We do however, have expert doctors, compassionate nurses and mental healthworkers who have choosen to work in field that requires a special kind of person.  With out these people, my hospital couldn’t function.

Donors will pay for salaries.  They will pay for programs. And they will pay for organizational missions that make an impact.  I have included part of a presentation on “Raising Money for Operations” on my blog.  Please watch it, share it and use it to become empowered to raise money for operations.