SBA, Microsoft create technology guide, online course

The U.S. Small Business Administration (SBA) today announced a new technology resource is available for small business owners.

The SBA and Redmond, Wash.-based Microsoft Corp. have teamed up to create "Business Technology Simplified," a free guidebook that offers tips on how to use technology and innovation to make businesses work more efficiently, the SBA said in a news release.

The guidebook includes material on simplifying work tasks, do-it-yourself marketing, time management, and finding and cultivating customers.

"Business Technology Simplified" is available in a printed format at the SBA Syracuse district office. Computer users can also access the guidebook online at the Microsoft website.

It's also available as a free distance-learning course, according to the SBA.

The course is available at www.sba.gov/training.

Winners and losers among NY's top nonprofits

Crain's annual list of the largest nonprofits shows some surprising results.

The recession didn't hurt all nonprofits last year.

The Institute of International Education, a 91-year-old nonprofit that creates international study and training programs, and manages the renowned Fulbright Program for the U.S. government, actually increased its operating budget a whopping 18.4% in fiscal year 2010 to $342.4 million.

Executives at the IIE attributed their success last year to having a wide range of international donors.

“The IIE is fortunate to have a diverse set of program sponsors and donors, including some government and private sector funders outside the United States and in sectors that were less affected by the economy,” said Peggy Blumenthal, chief operating officer of the nonprofit.

In addition, the IIE administers programs for private foundations and corporations that expanded their international training initiatives last year, Ms. Blumenthal said.

The increase bumped the IIE up to third place from fifth on Crain's annual ranking of the 25 largest nonprofits in the New York area, which was released Monday.

[Learn more by downloading the full Crain's list.]

The Top 5 nonprofits on Crain's list also include the United States Fund for UNICEF & Affiliate, the New York Blood Center Inc., the International Rescue Committee Inc., and the Metropolitan Museum of Art.

The IRC, which helps refugees around the world, also grew its operating budget last year to $312.9 million from $287.8 million the previous year. The U.S. Fund for UNICEF slightly cut its budget to $433.8 million from $483.6 million; and the budget for the New York Blood Center remained the same.

The Met suffered more than other institutions during the economic downturn. Because of a drop in donations and losses in its endowment, the museum was forced to cut its operating budget to $289.2 million for fiscal 2010, which ended June 30, from $309.5 million the previous year. The cuts pushed the museum down to fifth place on the list from third the previous year.

Thomas Campbell, the museum's director, said despite the budget cuts, the museum managed to sustain its full exhibition and educational program and keep all of its galleries open.

“While the ongoing financial challenges call for rigor and discipline in expenditures and programmatic priorities, the museum is fundamentally sound,” Mr. Campbell said. “With its outstanding collections, talented staff, and devoted supporters, the Met will weather the economic challenges, just as it has weathered previous challenges in its 139-year existence.”

Charitable Nordstrom store slated for NYC

Crain's New York Business.com reported that the retailer to donate earnings from its downtown location to charity; mix of merchandise has yet to be determined ahead of fall 2011 opening.

Nordstrom has signed on for a downtown location. The Seattle-based department store has inked a long-term lease for more than 11,100 square feet at 350 W. Broadway, a new building between Grand and Broome streets. The retailer plans to open what it bills as a “unique” concept store at that address in the fall of next year. All earnings at the new store will be donated to nonprofits. Earlier this year, the retailer opened a Rack discount store in Union Square.

“Nordstrom chose 350 W. Broadway as an ideal venue because it is a one-of-a-kind property in a cutting edge, highly trafficked neighborhood that appealed to the company for this new concept,” said Oliver Katcher, senior vice president of landlord RFR Realty, in a statement. Details of the lease, including the duration and asking rent, were not disclosed. However, asking rents for the building were $175 per square foot for the ground floor, and $45 per square foot for the second level, according to brokers.

The name of the new concept store has yet to be determined, but will not contain the name Nordstrom, according to the company.

“It's a unique, philanthropic-based store concept,” said Pamela Lopez, a Nordstrom spokeswoman. “All profits will go to nonprofit organizations.” It is not yet decided if the outpost will feature exclusive merchandise. The West Broadway shop will be the sole national outpost of its kind. Ms. Lopez added that, while Nordstrom would love to have a flagship in New York someday, the company has nothing to announce yet.

Donations To Nonprofits Decline Significantly

The Chronicle of Philanthropy reported that donations to the country's 400 biggest charities plunged last year by 11 percent, the worst decline since the Chronicle of Philanthropy started ranking the fundraising organizations two decades ago.

The Chronicle's Philanthropy 400 rankings show six of the top 10 charities reported declines in donations, including the United Way Worldwide and the Salvation Army.

In all, the 400 charities raised about $68.6 billion in 2009, according to the Chronicle. The median amount decreased from $105 million in 2008 to $98.8 million in 2009.

"Food for the Poor (No. 6) saw contributions fall by more than 27 percent, while donations to the Fidelity Charitable Gift Fund (No. 7) plunged by 40.3 percent, largely because it relies heavily on stock gifts, which were not very popular last year," a report from the Chronicle states.

But some charities enjoyed stronger donations. Catholic Charities USA had a 66 percent increase in donations, and the AmeriCares Foundation saw an 18.1 percent rise in giving, mostly in food, medicine, and other donated goods, according to the Chronicle. Feed the Children and Habitat for Humanity also grew by more than $1 billion.

The Philanthropy 400 list ranks charities that raise the most from private sources, The Chronicle said. Government funds are not counted. Read more here.

Foundation Center Offers "Tools and Resources for Assessing Social Impact"

The Foundation Center, the nation's leading authority on philanthropy, has launched an online database of proven approaches to measuring and analyzing the impact of social investments. As philanthropists and the nonprofit community shift towards more strategic approaches to get a "social return," evaluation activities must also operate at a higher level. TRASI ("Tools and Resources for Assessing Social Impact") addresses these growing needs by offering tools and methodologies that place a premium on evidence and metrics in tracking progress.

"Measuring the effectiveness of social programs has always been a challenge because it's not just about the numbers. TRASI helps organizations meet that challenge and go beyond simply determining whether projected outcomes were achieved," said Lawrence T. McGill, the Foundation Center's vice president for research. "The organizations that have generously shared their own strategic methods for measuring impact will greatly help others to find a solution that is a good fit for them."

Developed in partnership with McKinsey & Co., the assessment approaches in TRASI were authored by a range of organizations, including social investors, foundations, NGOs, and microfinance institutions. The Better Business Bureau, USAID, Annie E. Casey Foundation, and the Center for Effective Philanthropy are among them. The resources in the database range from off-the-shelf tools and concrete methodologies to generalized best practices and are complemented by multimedia features and social networking tools.

Each approach has been carefully indexed against a common set of key elements and presented in a way that makes it easy to compare their relative merits. The key elements include: who the approach applies to, what kind of organization or evaluation the approach is best suited for, and the costs and techniques involved in its implementation. Each approach was thoroughly reviewed by an Expert Review Panel convened by the New York University Stern School of Business.

Online Kick-off Event
The Center is hosting an online event to kick-off the TRASI launch. Beginning at 2:00 pm EDT on Wednesday, September 22, 2010, a live chat with some of the individuals from the Expert Review Panel will be held. Anyone interested in learning more about impact assessment and the TRASI platform is invited to attend by visiting http://trasicommunity.ning.com/.


About the Foundation Center
Established in 1956 and today supported by close to 550 foundations, the Foundation Center is the nation's leading authority on philanthropy, connecting nonprofits and the grantmakers supporting them to tools they can use and information they can trust. The Center maintains the most comprehensive database on U.S. and, increasingly, global grantmakers and their grants — a robust, accessible knowledge bank for the sector. It also operates research, education, and training programs designed to advance knowledge of philanthropy at every level. Thousands of people visit the Center's web site each day and are served in its five regional library/learning centers and its network of 450 funding information centers located in public libraries, community foundations, and educational institutions nationwide and beyond. For more information, please visit http://www.foundationcenter.org/ or call (212) 620-4230.

An Eye of the Future Conference in NYC September 28th

For Nonprofit Executives, Board Members, Marketing Managers, Fundraisers & Students

Join us for a unique, one-day educational event for nonprofit professionals on Tuesday, September 28th from 8:30am to 4:30pm at the Down Town Association Club.

An Eye of the Future will feature three panels of corporate and nonprofit experts as they explore cutting-edge strategies in Marketing, Board Leadership and Fundraising to help nonprofits sustain their organizations in today's uncertain economy.

Speakers include:

-Anu Gandhi, Director of Consumer Marketing for American Heart Association's Go Red Campaign, will discuss how to make your nonprofit stand out in a crowd of worthy causes

-Beth Stellato, VP, Goldman Sachs and Manager of the company's partner placement program, will discuss recruiting young professionals

-Rob Carter, Vice Chairman of Changing Our World and a global fundraising strategist, will discuss how to go from predicament to partnership when funding your cause

-Scott Roen, VP of American Express OPEN Forum and Steve Rubel, VP of Digital Insights, Edelman PR, will discuss social media techniques to promote your brand and cause online

-Asif Talukdar, Director of Business Development for GuideStar, will address how to position your nonprofit as a viable organization

And more! To register, email: events@ebsr.org or call: 866.287.3937

This event is open to ALL nonprofit organizations.

Nonprofit Knowledge You Need: Independent Contractors and Consultants

NYCON's national association, The National Council of Nonprofits, offers Nonprofit Knowledge Matters and a look at Contractors and Consultants:

You’ve just hired an independent contractor or consultant to work on a special project. Did you first evaluate whether the worker should be treated as an employee instead? Does it matter?

Yes, it matters because the government makes a distinction between the two classifications of workers (independent contractor/consultant versus employee) and requires nonprofits to treat them differently for payroll and withholding purposes. Also, insurance issues will surface when the consultant is injured and tries to file a claim for workers’ compensation. Is she covered? It depends on whether she is a consultant – or not.

Federal and state governments have regulations that define who is an independent contractor/consultant and who is an employee. If a nonprofit misclassifies a worker, the nonprofit is at significant risk. There are serious penalties and back taxes owed when a nonprofit incorrectly treats someone as an independent contractor/ consultant, when in fact the worker should have been classified and treated as an employee.

Additionally there are risks to misclassifying a worker as an exempt employee, when s/he should be classified as non-exempt. For tips and tools for avoiding misclassifying workers, read more about this topic from the resources available on the National Council’s website.

IRS guidance provides that someone is properly classified as an independent contractor/consultant “when the nonprofit has the right to control or direct only the result of the work done by an independent contractor, and not the means and methods of accomplishing the result.” We hope you feel comfortable with the distinction between independent contractors/consultants and employees. If you are not sure, here are some resources to help you classify workers correctly and avoid associated risks:

• Guidance from the IRS on everything you’ve always wanted to know about how to pay independent contractors correctly.
• Distinguishing between employees and independent contractors (written by the IRS for small business owners, but equally applicable to nonprofits.)
• IRS Publication 15-A (2010) provides guidance on classifying workers and includes a special section on tax issues relating to employees in exempt organizations.
• IRS Ministers’ Audit Guide (highlights special rules for religious organizations)
  

Spread the word: Deadline extended to October 15th for nonprofits to file their 990s.
Please join the State Association network of the National Council of Nonprofits, the IRS, and others to spread the word – to small nonprofits in particular – that they need to file with the IRS annually. Most urgently, many small nonprofits will lose their tax-exempt status if they have not filed in the past 3 years and fail to file by October 15th of this year. The IRS has announced a one-time relief program for nonprofits required to file the 990-N or 990-EZ that missed their deadline earlier this year.

• This short video from the IRS explains the filing deadline.
• The one-time relief program will not help organizations required to file the Form 990 or Form 990-PF. Their tax-exempt status will be automatically revoked if they fail to file for three consecutive years.
• Guidance from Guidestar.org explaining what you need to know about revocation of tax-exempt status.
• Electronic Filing Tool: Organizations with gross revenue under $100,000 may file their IRS Form 990-EZ electronically at no charge through the Urban Institute’s eFile program.