Presentations for Professional Advisors on Charitable Giving

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charitable giving presentation

If you’re a professional advisor (such as a financial advisor, insurance agent, attorney, or accountant, among others) looking for more information on how to advise your clients on smart charitable giving strategies, I’d love to speak with you and your colleagues. At every chance, I’m happy to share my firm’s mission to “maximize charitable giving in Iowa” with groups of any size!

rows of brown chairs

In terms of topics, there is actually very little in the area of charitable giving that I do not feel comfortable presenting about. So, if you have a specific subject in mind, do not hesitate to propose it. The following is a sampling of topics I’ve spoken about previously. I can easily combine multiple topics to best fit the presentation to the group’s objectives.

Planned Giving 101

  1. What is “planned giving?”
  2. Gifting during lifetime versus gifting at death
    • Advantages and disadvantages of each
    • Meet clients/donors “where they’re at”
  3. What 2017 federal tax legislation changed for charitable giving
    • Two huge challenges: charitable deduction & estate tax
  4. The seven basic estate planning documents everyone needs (and how charitable giving fits in)
  5. IRA Charitable Rollover & other gifting opportunities through retirement benefit plans
  6. The numerous benefits of the Endow Iowa Tax Credit
  7. Ins and outs of donor-advised funds
  8. Highly appreciated stock and other non-cash assets

Planned Giving 201 (Advanced Gift Types)

When I give presentations on advanced gift types, I also include a short summary of Planned Giving 101 topics.

  1. Charitable gift annuity (CGA)
  2. Charitable remainder trust (CRT)
  3. Charitable remainder annuity trust (CRAT)
  4. Charitable remainder uni-trust (CRUT)
  5. Flip CRUT
  6. Charitable lead trust (CLT)
  7. Retained life estate

Working Together is Better

I can also speak to how nonprofit staff (most especially development officers) and professional advisors can best work together for mutual benefit and for the betterment of clients.

four people around a computer

Fundraising Ethics

Another topic I’ve also discussed in the past is the ethics of fundraising: how to spot warning signs of an impending ethical dilemma; the best ways to handle common ethics concerns; what actions to avoid; etc.

Free Guide for Professional Advisors: Smart Charitable Giving Solutions

Exceed Client Expectations

If you present me with a list of your most top learning objectives, I would be happy to tailor a high-quality presentation to the group targeting those specific points. Really, any presentation related to charitable giving should be about what can make an impact in the lives and decisions of your clients. Let’s work together to help you and your team exceed client expectations and make an actionable impact on charitable giving in Iowa.

Contact me via email or phone (515-371-6077) to get your learning session planned and scheduled!

 

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What Nonprofit Pros Can Learn From Fiji Water Girl

red carpet up stairs

For every Golden Globes show, a consensus emerges as to who The Big Winner was, the Biggest Winner of all the Big Winners. And, without any doubt, the most favored of the star-studded night (beyond the impressive Sandra Oh)…was “Fiji Water Girl.”

In case you haven’t heard, Fiji Water Girl (AKA model Kelleth Cuthbert) traversed the pre-show carpet in a bold blue dress and had a knack for finding the perfect camera angles while carrying a tray of Fiji Water. Her immediate job was to hydrate the stars on the red carpet, but, she went above and beyond. By working strategically, she made it into the background of photo after photo of high profile stars. Fiji Water Girl was so noticeable she soon became a meme-worthy “celebrity” herself, and her employer undoubtedly appreciated the free/extra publicity.

Fiji Water Girl’s moment of fame is also a moment for nonprofit pros to learn three important lessons.

Everything you do, do well

There’s an old saying in Hollywood regarding bit parts, “there are no small roles, only small actors.”

I don’t have to tell you not every job in the nonprofit world is glamorous. Sure, sometimes you’re receiving accolades from your peers, scoring that massive grant, or your board is celebrating a particularly successful program you started. But, often your day is taken up by gobs of paperwork, stay atop of fundraising, field messages from donors and potential donors, and handling a veritable ocean of other administrative tasks. But, when you do have to do mundane tasks, do them unceasingly well! When you keep up an enthusiasm for tasks, no matter how seemingly small, your reputation for being dependable will bode well with colleagues, donors, and board officers.

Stay Current With Your Calendar

There are certain community events that nonprofit leaders must attend. You likely know what they are in your situation, for example, the grand opening of a donor or potential donor’s business or the big annual gala in your town. Make certain that you, or representatives from your nonprofit, are properly seen at these must-attend events. The vast majority of such events will be publicized well in advance, so it might be good to do a little brainstorming at a board meeting, to identify must-attend events and decide who’ll attend on your nonprofit’s behalf. Before anyone does attend on the nonprofit’s behalf it’s a good idea to be sure they are well versed on talking points, and fully understand the connection the nonprofit has with the event.

Build an Even Better Nonprofit in Iowa

Go Ahead and Rock the Boat

Think about doing conventional things in unconventional ways. As many have written before, sending a receipt to a donor is mandatory – but that doesn’t mean it can’t be fun, imaginative, or convey a meaningful message in a memorable way. Make waves! Or, let’s say your fellow board members or staff are hesitant to invest in a set of influential, important policies. Maybe they’re dragging their feet on updating a set of outdated formational documents. Make your mark by explaining the many benefits and how it will further the organization’s mission. Or, bring in a speaker (like me!) to explain the legal consequences of NOT having quality policies and procedures in place.

Smart Employment Policies for Nonprofits

In short, when you’re working with a nonprofit, you could just keep to the status quo. Or, you can seize this moment, your moment, to find your light and shine. Sure, the Internet may not make a meme of you, but you can smile knowing you’re making a difference where it matters. Want to strategize? Don’t hesitate to contact me or to read more information useful for nonprofit pros.

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The Ethical Nonprofit: Beneficial Policies

never settle ethics picture

Acting ethically as a charitable organization is paramount to success. Even the illusion of unethical operations can cause lasting damage to your organization. (Case in point: Look at what happened to the Donald J. Trump Foundation and, by association, Eric Trump’s foundation.)

Smart nonprofit boards adopt, in writing, crucial values such as honesty, integrity, transparency, confidentiality, and equity. Sure a policy or two cannot “create” a certain culture or ethical operations by itself. But, well-drafted policies CAN actively promote and reinforce ethics in conduct and decision-making to all involved within the organization.

Reasons to Enlist an Attorney to Write your Nonprofit’s Policies

Major Benefits of Promoting Ethics

The realities of modern communication and social media mean that just about anyone can be a publishing “journalist.” This also means that organizations, especially nonprofits, can be subject to intense scrutiny. Because of tax-exempt status and dependence on charitable donations, nonprofits tend to be held to a higher standard than their for-profit counterparts.

An ethical issue—even the illusion of one—can split boards, cause stakeholders to pull back, snap donors’ wallets shut, and even result in expensive litigation. Fortunately, there are policies and procedures that can prevent your hardworking organization from having to deal with such controversy, by deterring unethical situations from every occurring. These policies include:

Code of Ethics

Every nonprofit should adopt a set of ethical principles to guide its decisions and conduct of its board members, officers, employees, independent contractors, volunteers, and other stakeholders. These ethical principles are typically called a “code of ethics,” “statement of values,” or “code of conduct.” Regardless of the title, the purpose of formally adopting a set of ethical principles is to provide guidelines for making ethical choices and to ensure that there is accountability for those choices. When board members adopt a code of ethics, they are actively expressing their deep commitment to ethical behavior. Making such a commitment can help earn and maintain the public’s trust.

 Confidentiality

Respecting the privacy of donors, prospective donors, employees, and volunteers, as well the nonprofit itself, must be a paramount value. For example, financial information of a donor must be treated as highly confidential, and not be disclosed or discussed with anyone without the express, explicit permission.

Care should also be taken to ensure that unauthorized individuals do not overhear any discussion of confidential information and that documents containing confidential information are not left in the open or inadvertently shared. In short, it is critical to adopt a confidentiality policy regarding identity, financial institution accounts, credit card numbers, and all such information about finances.

 Ethical Fundraising

Federal and state law significantly impact nonprofit fundraising. Beyond merely meeting what the law requires, nonprofits can demonstrate a first-class commitment to legal compliance by adopting an ethical fundraising policy. This would codify, for example, that all communications to donors and potential donors are honest and accurate. Another example: requirements to provide attributions for marketing imagery and never include information with minors that could be considered personal identifying information.

Fresh Iowa Lawyer Mag Read: Policies & Procedures Iowa Nonprofits Need

 Financial Management

Nonprofit board members, both individually and collectively, owe a fiduciary duty to ensure the organization’s assets are used in accordance with donors’ intent and the charitable mission. To ensure prudent financial management, nonprofits should adopt financial management policies.

Financial management policies clarify the roles, authority, and responsibilities for essential activities and decisions. Examples of nonprofit financial policies commonly used include a description of how cash is handled; whether and how travel expenses will be reimbursed; and the board’s role in reviewing executive compensation. 

Financial Transparency

Nonprofits also should adopt a financial transparency policy. An example of a fundamental financial transparency practice is to make information accessible to interested individuals regarding the nonprofit’s budget, sources of revenue, and information about board composition, programs, outcomes/impact, and staffing.

Basic “Good Governance” Practices

There are several basic practices every nonprofit should engage in to maintain “good governance”:

  1. Maintain corporate minutes
  2. Annual review of “conflicts of interest”
  3. Annual review of compensation
  4. Self-assessment process
  5. Diversity
  6. Board orientation/training

Updating Ethics Policies

If you already have some (or all) of the above-listed policies in place, seriously consider the last time they were updated. How has the organization changed since they were written? Have new legislative policies impacted these policies at all? It may be time for a new set of ethics policies for your organization.

Additional Policies Need

Note nonprofits also need additional policies for optimal compliance. In addition to the ten major policies and procedures that support the best possible IRS Form 990 (such as public disclosure, gift acceptance, and whistleblower) nonprofits should have documents in place covering the topics of employment; grantors and grantees; endowment management; and legal training for directors.

Smart Employment Policies for Nonprofits

Questions? Please don’t hesitate to contact me via email (gordon@gordonfischerlawfirm.com) or on my cell phone (515-371-6077). I’d be happy to discuss your nonprofit’s specific needs and policies promoting ethics, with you at your convenience.

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Smart Employment Policies for Nonprofits

man holding glasses talking about employment policies

Employment policies are vital to the well-being of your nonprofit. Such policies set workplace expectations, define work guidelines, reduce or eliminate confusion and misunderstanding, and provide steps for any necessary disciplinary action. Because every nonprofit organization is unique, your organization may well need a particular set of specific policies. However, the following are the general ones that benefit most all nonprofits.

Benefits of Employment Policies

An official set of employment policies provides many benefits for your nonprofit. For nonprofit employers, policies capture the values you wish to instill in your workforce, outline the standards of behavior you expect, and provide a clear guide for rights and responsibilities.

Instituting strong, fair, and unambiguous policies not only contributes to a happier workforce it can also improve employee retention. Further, employment law is vast, complicated, and can be tricky to navigate. Well-drafted employment policies can also help you avoid legal issues and costly mistakes.

Employee Handbook

Employee handbooks are not required by law, but having one is in the best interest of your nonprofit and those who work for you— even if you have just one employee! A good employee handbook effectively communicates the nonprofit’s policies and procedures and makes clear the rights and responsibilities of employees in your organization. Many disputes can be avoided by a clear, easy-to-read, and straightforward employee handbook.

When is an employee handbook not an employee handbook?

Employment Agreement

Not to be confused with the handbook, an employment agreement sets the conditions, terms, and obligations between you as the employer and an employee. Employment agreements often include details regarding salary, benefits, paid time off, work schedule, mandatory mediation/arbitration, and defining the at-will employment relationship. Employment agreements need to be individualized to suit each employment relationship. It is considered a binding contract that should be administered in writing and signed by both employer and employee.

Formal Performance Review

Formal performance reviews are an assessment of an employee by a supervisor and the employee themselves. It’s a two-way, not a one-way discussion! The review should be based on jointly pre-determined goals and performance objectives. While often overlooked (and sometimes dreaded), performance reviews are of great value to nonprofit employers and their employees.

three people at table talking over computers

You should have in place a standardized form and consistent processes for conducting individual performance reviews of all employees. Evaluating the quality of an individual’s work, ability to meet goals, communication skills, adherence to your nonprofit’s mission, attendance, and dependability, among other criteria, is key to effective workforce management and to building trust with employees. You may also consider whether performance reviews for board members would be advantageous to the organization.

Employee Personnel File

A personnel file is a hard copy folder and/or digital file that contains information related to every new, existing, and former employee. Knowing what needs to be stored (and what should not) in a secure personnel file will help your nonprofit in promotion and termination decisions; provide a means of tracking vacations, training, and achievements; and is necessary to comply with regulations.

A personnel file should only contain items related to his or her job or employment status. These include, but are not limited to:

  • Application and resume
  • Signed acknowledgment page from the employee handbook
  • Pay information including time sheets, W-4s, and withholding forms

Just as important as having the right information in a personnel file, is to avoid placing the wrong documents in a personnel file. Some items that should not be in an employee’s personnel file include:

  • Medical information and accommodation requests
  • Whistleblower complaints
  • Court orders, such as garnishment or restraining orders

Build an Even Better Nonprofit in Iowa

Independent Contractor Agreement

Self-employed, freelancer, consultant…people who provide goods or services to your nonprofit, but are not your employees, are considered independent contractors. Independent contractors differ from employees in that they control their financial and work-related relationships and pay their own self-employment, Social Security, and Medicare taxes.

When you hire an independent contractor, you should have a written and signed contract that clearly outlines the scope of work, rate/payment, severability, deliverables, and clearly identifies the person as an independent contractor. Also, you can minimize and avoid legal liability by placing the right provisions in an independent contractor agreement.

three employees talking at cafe table

Updating Employment Policies & Additional Policies You Need

If you already have some (or even all) of the above-listed employment policies in place, when were they last updated? Think about the many ways your organization has changed since they were written, including new employees you hired and existing employees whose roles have evolved.

Changes to state and federal laws may have rendered some elements of your employment policies incomplete or out of compliance. It may be high time to renew your commitment to a productive, happy workplace by revising employment policies.

Also, be aware this memo discusses only employment policies. To work toward optimal IRS compliance, you should adopt the nine key policies and procedures which appear on IRS Form 990. Also, you should consider having documents in place relating to the organization’s ethics, grantors and grantees, endowment management, and legal training for board directors.

Reasons to Enlist an Attorney to Write your Nonprofit’s Policies

To discuss further, please don’t hesitate to contact me via email (gordon@gordonfischerlawfirm.com) or on my cell phone (515-371-6077). I’d be happy to speak more to the particulars of employment policies, with you at your convenience.

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5 Resolution Ideas for Nonprofit Pros

fireworks with man reaching up to the sky

The talk around New Year’s resolutions tends to focus on personal goals, like getting in better shape, traveling more, reading more, going to bed at a regular time every night, eat less chocolate…the list goes on. But frankly, most of those great January 1 intentions fall by the wayside around Valentine’s Day (and for me, usually even earlier!). But resolutions don’t just have to focus on the personal—what about the professional?

Professional resolutions are promising because they involve the accountability, inputs, and outputs of more than just yourself. Your entire network of employees, volunteers, and/or donors can help the resolutions become a reality. For nonprofit professionals and leaders, now is the perfect time to set actionable goals that can help further your organization’s mission, progress, and fundraising. Here are five ideas to get you started:

Optimize policies and procedures

Both internal and external policies will guide your organization and set standards. These policies should cover certain legal issues including, but certainly not limited to, conflicts of interest, investments, document retention, whistleblower protection, gift acceptance, and endowments. Your organization is always evolving and so should your policies. If your nonprofit is new, you’ll want airtight legal policies in place from the start. (For example, do you have appropriate disclaimers in the employee handbook, so it’s not considered an employment contract?) If your policies have been in place for a while, should you make an annual overview part of your standard operations? Pay attention to provisions that should be added/edited due to government and tax law changes.

Nonprofit Policy Special: 10 for Form 990

Best board ever

Make this the year of the most efficient, effective board ever. Invest in educating and training the board of directors on issues that impact your industry and the nonprofit sector in general. Prepare your board with materials that will set them up for success such as an updated, comprehensive board handbook.

This is also a good place for a reminder to connect and leverage your board members’ experience, connections, and talents. Consider, when was the last time you had a one-on-one conversation with a board member outside of the monthly board meeting? Inviting a board member to lunch or coffee is a good opportunity to ask for valuable ideas on the organization and fundraising. Plus, taking the time to connect as individuals actively shows the board member you care for their connection and investment in the organization.

Collective Responsibilities of Nonprofit Boards

Excellent ethics

Let this be the year that you put ethics in operations above all. Does your entity have a conflict of interest policy in place? Does it need to be updated? Are there any areas for potential ethical infractions? Make a point to address these BEFORE they become an issue. Provide ethics training to your stewards—board members, employees, volunteers—so that everyone is on the same page of standards.  

Perfected planned giving

Managing planned giving programs is an art in the practice of effectiveness. And, as you may already know, such a giving program is a beneficial investment in future financial well-being; it takes significant time to construct and even more time to see results. From charitable gift annuities to even simple bequest programs, it’s likely that your planned giving program can be better organized and publicized to prospective donors. Review the readiness of your organization’s ability to accept a planned gift or endowment. Don’t be afraid to enlist an external auditor for improvements and legitimate practices.

Volunteer regularly

As a nonprofit leader, you’re dealing with the administrative details of development, human resources, and budgeting. Unfortunately, when you’re in the management weeds, you may not have much time to be on the ground executing programs. Make a commitment to volunteer with the organization at regular intervals. It will remind you of the all-important “why” behind the dollars and will enable you to better communicate this to board members, donors, volunteers, and other stakeholders. Better yet, encourage other employees at your organization to join you or set up a calendar of consistent volunteer slots.

change neon light

As I mentioned, these are just a few ideas to get you started. What resolutions can YOU and your organization’s board members, donors, volunteers, and other stakeholders imagine? Perhaps you should set some time aside for everyone to think about priorities moving forward into the new year. In any case, I’d truly love to hear from you about any and all resolutions you and your fave nonprofit have made!

Working with nonprofit leaders in Iowa is one of the best aspects of my job. The opportunity to help people achieve their goals for the cause or issue they care deeply about, is perpetually awe-inspiring. I believe that nonprofit leaders should focus on what’s most important—the mission and communities their organization serves—and I’m here to help with the necessary legal matters that come with nonprofit operation, like personnel contracts, internal and external policies and procedures, record-keeping requirements, and maintaining compliance with all local, state, and federal laws. Of course, don’t forget the complexities surrounding legal and sustainable fundraising.

I’m looking forward to helping you meet your nonprofit’s resolutions this year; please don’t hesitate to contact me.

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25 Days of Giving: Global Trends in Giving Report

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25 Days of Giving: Global Trends in Giving 2017 Report

The 2018 Global Trends In Giving report is full of important and valuable statistics for nonprofit professionals. These statistics are not just interesting, but can also impact your donor plans and marketing strategies. But, December is an incredibly busy month with all the year-end fundraising pushes and policy reviews in prep for the coming operating year. So guess what? I read it for you! (You’re welcome.)

The 28-page report, sponsored by Public Interest Registry (PIR) with research completed by Nonprofit Tech for Good, surveyed a global sample of more than 6,000 donors in a time period from April through June of 2018. (It should be noted that although global, the results only represent the views of respondents that read in languages Arabic, English, French, Portuguese, or Spanish; have access to the Internet, and use email and/or social media.) 

Here are just a few highlighted insights from the report:

  • There are some clear similarities across generations. For instance, Millennials, Generation X, and Baby Boomers all prefer to give online, compared with options like cash, bank/wire transfer, and mail. Furthermore, approximate 14-15% of each generation group gave on #GivingTuesday 2017. Additionally, approximately 56% of donors from each generation group attend fundraising events. 
  • Millennials and Generation X donors are both most inspired to give through social media and their top cause category is children and youth. In comparison, Baby Boomers are most inspired to give through email and their top category cause is health and wellness.

Occassion of tribute gift

  • By gender, women make tribute gifts more often than men (35% v. 21%). However, male and female donors are within 1 percentage point of one another when it comes to enrollment in a monthly giving program (~55%) and volunteering locally (~67%).
  • Social media, closely followed by email, are the communication tools that most inspire giving.

nonprofit communication

  • Planning your social media awareness and advertising for the year ahead? Facebook remains the undisputed champion of online donations.

Global giving social media

  • Your nonprofit’s website should end in .org. 68% of donors most trust the “.org” domain extension. 
  • Adopting policies such as those regarding ethics, document retention, and confidentiality are essential! 92% of donors say it is important charitable organizations “make a concerted effort to protect their contact and financial info from data breaches.”

how donors prefer to be thanked for donations

  • When thanking donors, the majority (69%) prefer email the most.

Free gifts report giving

  • When thinking about incentivizing and inspiring donors, free gifts don’t always do the trick. Only 20% of donors are more likely to donate if they’re offered a free gift. (Plus, donors need to be aware of considerations when claiming quid pro quo donations.)

Again, these are just a few of the most important figures picked from an extremely well done and detailed report, 2018 Global Trends In Giving. If you give the report a read, what were the most unexpected and unique statistics to you? I’d love to hear your thoughts and insights!

For any aspect of donation facilitation, organizational compliance, as well as legal training, I’m happy to provide beneficial services to help your nonprofit best pursue its mission. Don’t hesitate to reach out via email or phone (515-371-6077) at any time.

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What’s the Difference Between Public Charity & Private Foundation

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Holding lights

Since 1968, every Section 501(c)(3) organization is classified by the IRS as either a private foundation or a public charity. This classification is crucial for at least two reasons to anyone considering forming a nonprofit or anyone considering making a significant donation to a nonprofit.

First, private foundations are subject to much stricter regulations than public charities. Second, public charities receive more favorable tax treatment than private foundations. Let’s explore each classification a little deeper.

Public Charities

heart ceramics bowls

Public charities must attract broad donor support. Some organizations—churches, schools, and hospitals for instance—are by their very nature considered “publicly supported.” Other organizations must pass mathematical public support tests to qualify as a public charity. These tests require charities to obtain funding from numerous sources, rather than one singular source, or a small group of related funders.

When a charity passes one of the public support tests, it is demonstrating to the IRS that the general public (non-insiders) evaluated the charity’s performance and found it worthy of financial support. As a result, such charities are treated as having a sort of stamp of approval of the general public, lessening the need for the stricter IRS scrutiny applied to private foundations.

Private Foundations

Do something great in neon

Private foundations are funded by an individual, a family, a company, or a small group. Two prominent examples would include the Ford Foundation and Bill & Melinda Gates Foundation.

Private foundations are subject to a more strict regulatory scheme than public charities. There are penalties for self-dealing transactions, failure to distribute sufficient income for charitable purposes, holding concentrated interests in business enterprises, and making risky investments. The IRS recognizes two types of private foundations: private non-operating foundations and private operating foundations. The main difference between the two? How each distributes its income:

  • Private nonoperating foundations grant money to other charitable organizations.
  • Private operating foundations distribute funds to their own programs that exist for charitable purposes.

In general, private foundations can accept donations, but many do not and instead have endowments, as well as invest their principle funding. The income from the investments is then distributed for charitable activities/operations.

Deduction limits

Contributions made to public charities and private foundations may be deducted from the donor’s federal income tax. The amount of the deduction is subject to certain limits under federal tax law.

Money and receipts

Gifts to public charities receive more favorable tax treatment than gifts to private foundations—this includes donor limits. For example, a charitable cash donation to a public charity would be deductible at up to 50 percent of the taxpayer’s adjusted gross income (AGI), but the same gift to a private foundation is deductible at a rate of only 30 percent of AGI.

A word on the word “foundation”

Don’t assume that an organization with “foundation” in its title/name is indeed a private foundation and not a public charity. Of course, it could be, but many types of nonprofit organizations have adopted “foundation” as part of their name to help project a mission and/or identity. (Examples include Friends of Animal Center Foundation and the Iowa City Public Library Friends Foundation.) If you’re entirely unsure if a nonprofit you’re considering donating to is a private foundation or public charity, simply ask one of the nonprofit’s executives or appropriate contact.

If you’re wanting to make a complex gift or include nonprofits as beneficiaries in your estate plan it’s wise to work with an attorney experienced in those areas. Of course, I would be happy to help.

Have any questions? Want to discuss your charitable donation or formation of your dream nonprofit? Contact me by email or phone (515-371-6077) .

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Nonprofit Events and Opportunities in October & November

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events on calendar

Halloween and Thanksgiving aren’t the only things you should be looking forward to in October and November! I like to help spread the word about all the awesome events, awards, and grants available in Iowa. There are so many great opportunities for nonprofit pros, board members, volunteers, and donors, that range from webinars to workshops. But, life is busy, and it can be hard to keep track of what you should register for or put on your calendar. That’s why I compiled a list for your convenience!

Learning Events & Trainings

Grants

There are so many great events and opportunities for nonprofits and the people that advance them that there is no doubt I missed some in the list above. Please feel free to add applicable events for October and November in the comments below! If you would like to notify GFLF of any upcoming nonprofit-focused events and opportunities in the coming months, don’t hesitate to email GFLF’s Chief Content Officer at mackensie@gordonfischerlawfirm.com.

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Build an Even Better Nonprofit in Iowa

volunteers walking on grass

Even if you don’t work at a nonprofit organization, undoubtedly you know someone who does! There are more than 26,361 nonprofit organizations (including public charities, private and public foundations, civic leagues, chamber of commerce, veterans organizations, and others) in Iowa. Nonprofits not only make our state and world a better place to live, they also make a substantial economic impact in Iowa. The nonprofit sector employs 135,300 people (11% of the total workforce) and generates annual revenue of more than $20.3 billion (according to data from 2016)!

I founded Gordon Fischer Law Firm with a dream of a legal practice that involved consistently strives to promote and maximize charitable giving. A big part of that mission is assisting nonprofit organizations of all creeds and sizes be successful through all stages of operation. From formation to hiring, board building and donor retention, to legal compliance and facilitation of charitable gifts, GFLF is here to help nonprofits build up to be the best they can be. So, if not for your own use, pass along the good word of our services to just one person you know in the nonprofit sector, be it an executive, fundraiser, board member, or active volunteer! Click the image below to get an easily shareable PDF on how to build a better nonprofit.

Build a better nonprofit

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Back to School: Gym Class (How Nonprofits Should Not be Like Tennis)

tennis court net

Serena-ity Now!

On the blog we’ve been going “back to school,” and our lessons wouldn’t be complete without a mandatory gym class. Which brings us to the question: is there gender bias in sports? Duh, yes. Mos def. It’s been especially newsworthy in tennis too.

There was nothing wrong with Serena Williams’ catsuit. Please, if a guy wore that, it would be noticed for sure, but certainly not banned.

Even worse: France’s Alizé Cornet received a code violation at the U.S. Open on Tuesday for removing her shirt on the court sidelines (she had a sports bra underneath). This is something men do all the time, and even while on the court.

The conversation continues in the aftermath of the US Open Finals last night between Serena Williams and Naomi Osaka. Were the umpire’s penalties in U.S. Open Final match the result of sexism? I certainly think so. I mean, I’ve seen male players such as, say, Rafael Nadal or John McEnroe, go absolutely bananas on the court and not receive a penalty to the tune of $17k.

Three Truth Bombs

Here are three truths that aren’t changed by any contretemps at Arthur Ashe Stadium:

First, Serena Williams is the greatest tennis player in history.

Second, at least on this day, Naomi Osaka outplayed Williams thoroughly for an amazing upset win.

Third, America, I love you like crazy, the crazy way that only an immigrants’ kid could love America. But, you have serious problems with sexism and misogyny.

Pink tennis ball stuck in fence

From the Tennis Court to Law Court

Here’s yet another truth bomb: nonprofits, already under terrific scrutiny by board members, donors, stakeholders, and government agencies, can’t afford even a whiff of a controversy like the tennis examples above. Even allegations of scandal can destroy previously successful nonprofits. And, just like the game of tennis, both need to consistently be working toward implementing rules and standards that ensure equity.

Such situations can split Boards, cause stakeholders to resign or pull back, snap shut donors’ wallets, and even result in expensive litigation. Fortunately, there are policies and procedures that can prevent your hardworking organization from ever having to deal with controversy (particularly those relating to discrimination, gender bias, and the like), by deterring such actions from every occurring. Let’s first discuss the IRS Form 990 and then the policies that relate to this annual information return.

IRS Form 990

IRS Form 990. This is the form that (most) nonprofits have to annually file some version of. Say what you will about the IRS – but in Form 990, the IRS provides nonprofits a path to prosperity. On Form 990, the IRS asks about several major policies and procedures that actually help nonprofits govern smarter. Any and every nonprofit should have all of these policies and procedures in place, with regular updates as appropriate. But, in our context, three policies are particularly relevant here.

At this point in the blog post, I feel as though I can actually hear you: “I don’t think we could ever afford that in our budget…we don’t know where to start!”

Before I delve into specific policies that will help your fave nonprofit combat discrimination and bias, let me repeat a special offer. I offer all nonprofits 10 major policies and procedures on IRS Form 990, drafted specifically and individually to each organization. for a flat fee of $990. No jokes, tricks, or hidden fees. Interested in learning more? Give this post a read, and don’t hesitate to contact me to take advantage of this solid, straight-up deal.

When do Nonprofits Need to File Form 990?

Compensation Policy

Data related to compensation is reported in three different sections on Form 990: “Officers, Directors, Trustees, Key Employees, and Highest Compensated Employees;” “Statement of Functional Expenses,” lines 5, 7, 8, and 9; and Schedule J;” and “Compensation Information for Certain Officers, Directors, Trustees, Key Employees, and Highest Compensated Employees.”

Having a set policy in place that objectively establishes salary ranges for positions, updated job descriptions, relevant salary administration, and performance management, is used to establish equality and equity in compensation practices. A statement of compensation philosophy and strategy, which explains to current and potential employees and board members how compensation supports the organization’s mission, can be included in the compensation policy.

Generally, this policy provides the benefits of:

  • Enhanced confidence of donors and supporters
  • Consistent framework for decision making on compensation
  • Increased compliance with federal and state employment laws
  • Reduced risk to the organization and its management and governing board

This policy can state clearly an organization’s intention to abide by federal and state law under which it is illegal to have pay differentiate based on gender.

25 Days of Giving: Nonprofit Policies Your Organization Needs to Consider

Document Retention and Destruction Policy

This policy should clarify what types of documents should be retained, how they should be filed, and for what duration. It should also outline proper deletion and or destruction techniques.

The document retention and destruction (DRD) policy is useful for a number of reasons. The principle rational as to why any organization would want to adopt such a policy is that it ensures important documents—financial information, employment records, contracts, information relating to asset ownership, etc.—are stored for a period of time for tax, business, and other regulatory purposes. No doubt document retention could be important for proof in litigation or a governmental investigation.

When I was a litigator, I represented employers who could not find a key document–a personnel file; written warning; performance review, and the like. Needless to say, in all these situations, the missing documents were a huge disadvantage to the employer in defending itself. Make sure that doesn’t happen to you by setting down rules as to what documents to keep and how long to keep them.

You know, there’s even a question of federal code. You may have heard of the federal law, the Sarbanes-Oxley Act of 2002. It reaffirms the importance of a DRD policy. Sarbanes-Oxley reads:

“Whoever knowingly alters, destroys, mutilates, conceals, covers up, falsifies, or makes a false entry in any record, document, or tangible object with the intent to impede, obstruct, or influence the investigation or proper administration of any matter within the jurisdiction of any department or agency of the United States or any case filed under title 11, or in relation to or contemplation of any such matter or case, shall be fined under this title, imprisoned not more than 20 years, or both.”

While the Sarbanes-Oxley legislation generally does not pertain to tax-exempt organizations, it does impose criminal liability on tax-exempt organizations for the destruction of records with the intent to obstruct a federal investigation.

Nonprofits & Sarbanes-Oxley Compliance

Yet another reason a DRD policy is an excellent idea, is it forces an organization to save space and money associated with both hard copy and digital file storage, by determining what is no longer needed and when…it’s like sanctioned spring cleaning!

Whistleblower Policy

Nonprofits, along with all corporations, are prohibited from retaliating against employees who call out, draw attention to, or “blow the whistle” against employer practices. A whistleblower policy should set a process for complaints, including gender bias or harassment, to be addressed and include protection for whistleblowers.

Ultimately this policy can help insulate your organization from the risk of state and federal law violation and encourage sound, swift responses of investigation and solutions to complaints.

A whistleblower policy encourages staff and volunteers to come forward with credible information on illegal practices or violations of adopted policies of the organization, specifies that the organization will protect the individual from retaliation, and identifies those staff or board members or outside parties to whom such information can be reported. (Instructions to Form 990)

The Sarbanes-Oxley Act (referenced under the document retention and destruction policy above) also applies here. If found in violation of Sarbanes-Oxley, both an organization and any individuals responsible for the retaliatory action could face civil and criminal sanctions and repercussions including prison time.

Stanley Cup Inspired: How Policies & Procedures Help Nonprofits Win the Game

Employee Handbook

On top of the super important policies he first line of defense for nonprofits is a well drafted, individualized employee handbook. Really, how can you NOT have an employee handbook? An employee handbook even if you have but a single employee makes clear the rights and responsibilities of both the employer and employee. So many disputes can be avoided by a clear, easy-to-read, and direct employee handbook.

In terms of gender discrimination, there are several provisions that should help insulate your favorite nonprofit. Your employee handbook would have an equal opportunity statement; anti-harassment policy; complaint procedure; and rules about compensation, document retention, and whistleblowing.

I offer a free “starter” employee handbook that can get you thinking about the types of provisions you should/could include in your employee handbook.

5 Necessary Policies for your Employee Handbook

Update As Needed

If you already have some (or all) of the above policies or employee handbook in place, seriously consider the last time they were updated. How has the organization changed since they were written? Have changes to state and federal laws impacted these policies at all? It may be high time for a new set of policies that fits your organization.

Playing tennis Without a Net?

tennis shoes on red court

Robert Frost famously opined that writing free verse is like playing tennis without a net. Well, I don’t know about that, but any nonprofit without the 10 major polices asked about on IRS Form 990, or without an employee handbook, is definitely like playing tennis without a net, ball, lines, umpires, or rules! And, the best way to play the “game” while assuring equity and fairness for all the players involves preventing bias and discrimination from ever holding a place on the court.

Schedule your free one-hour consultation and let’s talk about your organization’s needs!

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