In This Issue: Assessing the Impact of Changes to the Form 990 Trends and Other Stuff - What Can You Learn from This? Let it Happen By Listening Internet Resources for Nonprofits Two Great Books Available Now Online Book Order Form How Changes in Charitable Giving Laws Can Help You How Can I Help You? Take This Quickie Quiz What People Say About Jean Block Sign Up for Future Newsletters! If you find this newsletter helpful and interesting, there’s only one way to keep receiving it  - become a part of the email subscription list. If your email address changes or you want to add a second address, just send me an email with the new or additional information so you don’t miss out on a single issue. IMPORTANT: Remember to include your email address printed carefully and clearly! THANKS! Click here for the electronic form "I love your newsletter! It's refreshing, fun  and filled with helpful hints" Toni Paglia, Director of Development, The ARC Syracuse, New York

Nonprofit organizations are coming under increased scrutiny as a fall out from the Sarbanes-Oxley Act and proposed legislation aimed directly at nonprofits, so you must be ready for the consequences. The IRS has already begun to sharpen the `teeth' in the annual Form 990.

I encourage you to question your accounting professional about his/her familiarity with these changes.

In what appears to be an effort to increase disclosure on compensation, private inurement and potential conflicts of interest, additional questions and schedule requirements have been added to the Form 990.

Part V of the previous versions have been broken into two parts (Part V-A and V-B) to separate current and former officers, directors, trustees and key employees. Both sections disclose compensation, benefits paid and taxable fringe benefits.

A new question, question 75, involves Board of Directors' voting powers, relationships between Board members and related organizations, compensation relationships between Board members and other related organizations and the existence of a conflict of interest policy. Line 75b of Form 990 is also a new addition and asks you to disclose whether any officers, directors, trustees, key employees , highly compensated employees or highest compensated independent contractors are related to each other through family of business relationships.

Apparently, the instructions on the new Form 990 do not explain what is considered a familial or business relationship, which will result in confusion. Hopefully, your accounting professional will be able to help with this issue.

Line 75c of Form 990 asks you to disclose whether any officers, directors, trustees, key employees, compensated professionals or independent contractors receive any compensation from any other organizations. These include all organizations, both tax-exempt and taxable, that have "close connections" to your organization any of the following ways:

• Common control.
• Common governance.
• Direct or indirect ownership.
• Control through budgetary approval.
• Coordination of operations as to facilities, programs, employees or other activities.
• Common people "exercising substantial influence over all of the organizations."

Korenek notes that controversy and confusion over various interpretations of compliance and reporting on the new Form 990 may discourage organizations from sharing resources when it makes economic sense for them to do so.

She also asks whether the intrusive nature of the disclosure requirements may discourage current and potential Board members from volunteering.

The AICPA (American Institute of CPAs) has asked the IRS to clarify and adjust new sections to alleviate misunderstanding and noncompliance.

Jill Korenek, CPA, is a principal at JDS Professional Group in Englewood Colorado.

Nonprofit World magazine is an incredible resource, published by the Society for Nonprofit Organizations. Visit www.snpo.org for membership and subscription information.

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Volunteering. The volunteer rate for Americans ages 65 years and older has increased 64% since 1974. Baby boomers are volunteering at a much higher rate than the previous generation at the same point in their lives. Older teens (ages 16-19) have more than doubled their time spent volunteering since 1989, suggesting the emergence of a new civic generation. The proportion of Americans volunteering with an educational or youth service organization has seen a 63% increase since 1989. This and much more can be learned in a report Volunteer Growth in America. To read the report, visit www.bls.gov/news.release/volun.nr0.htm.

How does your state rate inn volunteering? In 2005, 65.4 million American adults volunteered a total of 8.2 billion hours, the equivalent of $147.6 billion dollars. A recent report shows that the number of volunteers in America increased by nearly 6 million since 9/11. To learn more about how Americans volunteer, read Volunteering in America: State Trends and Rankings from the Corporation for National and Community Service, the federal agency that oversees AmeriCorps. Visit www.nationalservice.gov/about/volunteering/index.asp.

College student volunteering increased by 20% between 2002 and 2005, more than double the growth in the adult volunteering rate, according to another report available at www.nationalservice.gov/pdf/06_1016_RPD_college_full.pdf.

In the March/April issue of Advancing Philanthropy, research findings released in January by Cone Inc, a brand strategy and communications agency in Boston, existing and potential nonprofit donors are looking for a full spectrum of engagement with their nonprofits of choice. When deciding which causes or nonprofits to support, nearly six of ten respondents said they wanted opportunities to get involved beyond dollar donations.

Also, the research found that trust in an organization (82%) and measurable community impacts (81%) are key to decision makers when choosing which causes to support.

The most effective ways for nonprofits to reach philanthropic consumers is through word of mouth (76%), through media coverage (56%) and through companies from which they buy products or services (44%). Lest effective communication tools include celebrity involvement (14%) and telemarketing (8%).

To learn more, visit www.coneinc.com.

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There are three financial stages of a person's life: the accumulation stage (earning money), the preservation stage (keeping and growing the hard earned money), and finally, the distribution stage (passing on, or gifting, the money to family or organizations).

Most of you reading this newsletter will meet with potential donors in the distribution stage of their lives. They are ready to give - let them. A good listener will garner funds for their charitable organization more through the process of letting than getting. You may ask a basic question such as, "Is there an organization that you would like to give back to for contributing to your success?" Then, be quiet. Be still. Listen. The first one to talk loses. The gift comes in the listening. Listening is the key to moving the potential donor from a low or medium level of interest to a high level of interest.

There are three levels of interest. Low interest is when you meet for the first time with a potential donor referred to you. Ah, but that interest can escalate to a medium level, by piquing their interest through posed thoughtful open-ended questions and then listening, really listening. When you intently listen without interrupting, you learn what people are interested in, what is most important to them, and can further engage them by asking probing questions specifically about their interests. According to the concept of physiological reciprocity, the potential donor is then honor bound to do the same for you. He or she becomes more willing to listen to you detail how their interests relate to your request. And because you've learned much about the potential donor through truly listening, you will know the ultimate question to ask and how to ask it which leads you to their high interest. High interest creates results because people are motivated to take action.

Contributed by Mary Lou Dobbs, President, Executive Benefits Strategies, Inc.
For additional information regarding this and related topics, contact Mary Lou Dobbs at 505.343.0617,  or visit her Web site at www.mldobbs.com.

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It bears repeating that www.irs.gov is an important resource for your organization. Certainly, the changes to the Form 990 must be complied with, and this web site does a good job of explaining the changes and definitions.

I also want to repeat my hearty endorsement of the Society for Nonprofit Organizations and their terrific magazine, Nonprofit World. I almost always clip an article from every issue for my resource file. Go to www.snpo.org to learn more.

The Social Enterprise Alliance annual Gathering in April was another huge success. I highly recommend membership in this organization is you want to diversify your resource development efforts . Visit www.se-alliance.org.

And, to learn more about earned income training, visit www.socialenterpriseventures.com.

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Now you can add two great books to your agency library. The ABCs of Building Better Boards is just what you need to improve your Board’s potential. It includes ideas for recruitment, retention and recognition and has some great forms for you to copy and use.

The Association of Fundraising Professionals says of this book: “Here is a book that every senior fundraiser responsible for board recruitment and development should read once and then review annually...takes up where books full of theory fall short...give it a chance and you will discover a gem to be treasured.”

Learn how to deal with unproductive Board members and how to better define the roles of staff and Board. There is a chapter on financial and fiduciary facts, one on simple parliamentary procedure and much much more.

Discover how Board Job Descriptions and annual Commitment Letters will dramatically improve your Board’s effectiveness. See how a truly effective Nominating Committee will lead to a better Board.

Get good ideas for more efficient Board management and administration, including how to set up and manage effective committees.

It’s only $24.95 plus shipping and handling. Take advantage of a volume discount of up to 20% and give this book to all new Board members as part of their orientation.

The 3rd Edition of Fast Fundraising Facts for Fame & Fortune is full of ideas to improve your fundraising, including how to ask effectively, special events essentials and new ideas for fundraising.

Help volunteers get over the fear of asking for money and in-kind resources for your organization. Learn how marketing principles will make fundraising easier.

Learn about Jean’s Ten Rules for Fundraising Success and apply them to your organization immediately. This book puts the FUN into FUNDraising and gives good examples and ideas that really work, rather than using hard to follow formulas and theories.

It’s only $24.95 plus shipping and handling. Take advantage of a volume discount of up to 20% and give this book to all new Board members as part of their orientation...

Or buy both books for only $45.00 plus shipping and handling. Order your copies today!

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According to a recent Times magazine article, 93% of people want to give to charity but 55% of those have no plan to do so. The Internal Revenue Service, however, has given us a great reason to make a charitable giving plan using individual retirement account (IRA) funds.

President Bush signed the Pension Protection Act of 2006 on August 17 which provides a limited window of opportunity to make tax-free IRA distributions for charitable purposes. Up to $100,000 in IRA distributions per taxpayer, per year, can be excluded from gross income in 2006 and 2007. To qualify the distribution must be made by the IRA trustee directly to a qualified charitable organization on or after the date the IRA owner attains age 70 1/2.

Qualified charitable organizations are those described under Internal Revenue Code Section 170(b)(1)(A) with the exception of those considered a "donor advised fund." Examples of qualified organizations include churches, tax exempt educational organizations, tax exempt hospitals, private foundations, membership organizations that receive more than a third of their financial support from the public, and organizations operated exclusively for charitable religious, educational, scientific, or literary purposes. A donor advised fund, which does not qualify for the exclusion, is one where a donor can designate the annual recipients of the distributions, generally over a number of years. Simply stated, to qualify for the exclusion, the donor cannot have continuing advisory privileged with respect to ongoing distributions from the fund.

The tax savings potential of this new act is significant and too good to not take advantage of. It's important, however, to know that an IRA owner cannot make a distribution to his or her own private charitable foundation, or if the gifted charity provides the donor with a benefit in return for the distribution, the distribution does not qualify for the tax-free treatment.

To learn more about this exciting opportunity to give wisely, contact your professional giving advisors or call Mary Lou Dobbs at the phone number provided below.

Contributed by Mary Lou Dobbs, President, Executive Benefits Strategies, Inc.
For additional information regarding this and related topics, contact Mary Lou Dobbs at 505.343.0617,  or visit her Web site at www.mldobbs.com.

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Please give me a call if you want to turn any NO into a YES. I can help with:

• turning your Board into a dynamic group of volunteers,
• facilitating a strategic planning session,
• analyzing your current fundraising and suggesting some new ideas, and
• training volunteers and staff in becoming more effective fundraisers.

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Here is what people have said about my training and facilitation:

“You certainly shifted my paradigm. After hearing you last Friday, it is the first time in 11 years as an ED that I was excited abut fund development. And you got my Board members to that point as well.

Kay Hopper
RDC for Children, Richardson, TX

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“Your seminar in Dallas was the best I ever attended. You are wise and hilarious.”

Mary Jo Dorn
Catholic Charities of Dallas

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"Jean conducted an extremely well organized and productive [Board] retreat, one that I can say with confidence that our members count as the finest ever conducted for us. Jean's follow-up report was in-depth and meaty, and both Board and staff have referred to it time and again. The knowledge of boardsmanship the members took with them has made a remarkable difference in their levels of commitment and support."

Eileen Cook, Executive Directorr
Casa Esperanzaa

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“Your training was invaluable to me. I dreaded doing this because I couldn’t even sell someone a candy bar in the past but I was inspired by your advice to try. I raised about $377,000!"

Joan Shepack
Keystone Botanical Garden, El Paso, TXX

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"I attended the Corporate Sponsorship Workshop - WOW! You were amazing! What an OPPORTUNITY for me!!

Your presentation style was EXCELLENT. By far the best workshop I've been to in a long time (content and style both!)."

Vicki Kopplin
Epilepsy Foundation of Minnesota

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"As a senior-level development officer, I have a hard time finding useful workshops. Jean's programs should be required for even us old CFREs."

Trisha Dunbar
Visiting Nurse Association, Dallas, TX

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Jean Block Consulting, Inc.
7915 Cliff Road NW
Albuquerque NM 87120

(505) 899-1520
Fax (505) 890-5285
Email:

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