A study about teens, charity, and social media.

Key Findings:

1. Teens are now more likely to spend their free time playing video or computer games than they were last year (72% 2011 vs. 63% 2010).
2. As in 2010, nearly 1 in 4 teens (23%) say they volunteer during their free time, and 1 in 10 (10%) have a part-time job.
3. About 9 in 10 teens agree – the same proportion as in 2010 – that:
   • It is more important than ever to help others who are less fortunate (90% 2011, 90% 2010);
   • It is important to support charitable causes symbolically even if you can’t do so financially (86% 2011, 88% 2010); and,
   • They wish they could do more to help those in need (88% 2011, 89% 2010).
4. Nearly 3 in 4 teens (73%) say their family has been negatively affected by the current economic climate, and about 4 in 5 (79%) have become more aware of the needs of others as a result.
5. Though they are equally as likely to agree (88% 2011, 89% 2010), teens in 2011 are less likely than they were a year ago to strongly agree that they wish they could do more to help those in need (43% 2011 vs. 50% 2010).
6. The majority of teens (71% 2011, 74% 2010) continue to support charitable causes or organizations, primarily by volunteering their time or participating in an event (43% 2011, 38% 2010).
7. Nearly 2 in 5 teens (37% 2011, 33% 2010) show their support symbolically, and about 1 in 3 (32%) vocally support their causes by spreading word of mouth and recruiting others.
8. About 1 in 4 teens (26%) donate money.
9. Though 2 in 3 teens (66%) agree that the benefits of social media outweigh the risks, and more than 2 in 5 (44%) say they have become more aware of the needs of others thanks to their social media usage, the plurality of youth ages 13-17 (29%) would be most willing to sacrifice their access to social media if they had to forgo some of life’s luxuries or necessities for 24 hours.
10. Only 2% would be willing to go without food (2%) or water (2%).
11. Most teens (80%) use social media, primarily to keep in touch with friends (76%).
12. Additionally, more than 1 in 2 teens (57%) share photos, videos, or links with others, and nearly 2 in 5 (37%) use social media to share their opinion about various issues.
13. Teens are more likely to “friend,” “like,” or “follow” companies or brands they like (41%) than charitable causes they support (34%).

World Vision, “A Study About Teens, Charity, and Social Media,” February 2011.

Bill Gates pushes students toward philanthropy.

Nonprofit legal self-assessment checklist.

A guide for helping nonprofits to understand common legal obligations and to highlight areas where greater inquiry should be made.

You sit on the board, or are an executive director of a Washington nonprofit corporation. You love your organization and are passionate about its mission. You are proud of the service your organization provides to the community and to those in need. You commit many hours to assuring the organization’s programs are well-run and to raising adequate funds to support them. Yet you have this small nagging feeling in the back of your mind that you may be overlooking some legal requirement or trap for the unwary that will come back to haunt the organization in the future. You feel responsible for the health of your organization, and want to address any shortfall now, before it becomes a crisis later.

Congratulations for your dedication and your proactive concerns! We hope this checklist will assist you on the road to good legal health. But please understand that this checklist is only a starting point. Any checklist has limitations. Please recognize:

This checklist is intended only for publicly supported charities. An organization that is a private foundation, supporting organization, or incorporated as a charitable trust, should not use this checklist.

This checklist is simply a guide; it does not contain and should not be relied upon as legal advice.

Laws and rules change constantly, and this checklist may become out-of-date.

The checklist is not intended to be all-encompassing, but rather to address common concerns of 501(c)(3) public charities incorporated as nonprofit corporations in Washington State. Specific laws or rules may apply to your particular organization or its programs that are not addressed in this checklist.

The checklist is intended to assist you in identifying potential legal problems. If you have identified a potential problem which you are unsure how to resolve, or have questions on matters not covered in this checklist, we recommend that you consult an attorney.

If your organization is unable to afford an attorney, please contact WAACO at contact@waaco.org or 1.866.288.9695, to see if your organization is eligible for pro bono legal services.

1. Our Organization maintains (in secured electronic or hard copy form) a corporate record book with current, legible copies of the following:
a) ________ Certificate of Incorporation from the Secretary of State
b) ________ Articles of Incorporation, with all amendments
c) ________ Current Bylaws
d) ________ 501(c)(3) determination letter from the IRS
e) ________ Application to IRS (Form 1023) for tax-exempt status
f) ________ Annual reports to the Washington Secretary of State
g) ________ Names, addresses, and terms of office of all officers and directors
h) ________ (For a membership organization), list of our current members and their
addresses
i) ________ Insurance policies
j) ________ Contracts or leases
k) ________ Minutes of all meetings of the members, board, and committees of the board
l) ________ IRS Form 990 for the 3 most recent tax years
m)________ List of contributors

2. Our Organization’s registered agent is still at the address on file with the Secretary of State. The registered agent has signed a consent form that is on file with the Secretary of State, and we can rely on our registered agent to give us mail that comes to the corporation. (You can verify the name and address of a nonprofit corporation’s registered agent on the Secretary of State’s website:
http//www.secstate.wa.gov/corps/).

3. Our Articles of Incorporation and Bylaws accurately describe the Organization’s current structure and procedures. Our board of directors reviews the Articles of Incorporation and Bylaws at least once a year to make sure that actual practice is consistent with these documents.

4. Our Organization files an annual report with the Washington Secretary of State.

5. Our Organization prepares and maintains financial statements and statements of account on a regular basis.

6. If our Organization normally receives more than $25,000 in gross receipts each year, it files an annual Form 990 or 990 EZ with the IRS.

7. If our Organization does not normally receive more than $25,000 in annual gross receipts, it files a 990N (e-Postcard). (Available at http:www.irs.gov/charities/). Failure to file this e-Postcard for three consecutive years will result in loss of federal tax exemption.

8. Our Organization has Officer and Director insurance, and the board members have reviewed the policy and understand what it covers and what it does not cover.

9. Our Organization has notified the IRS of any material changes to our exempt purposes or activities, or amendments to our Articles of Incorporation or Bylaws since we applied for 501(c)(3) status.

10. Our Organization has a written conflict of interest policy and follows that policy.

11. Our Organization has considered adopting a written whistleblower policy and if adopted, follows that policy.

12. Our Organization has considered adopting a written document retention policy that ensures that documents are retained and secured for the appropriate period of time, and if adopted, follows that policy.

13. Any transactions our organization undertakes with its insiders, known as “disqualified persons” (such as board members, senior executives, and their close family), including setting our executive director’s salary, is (1) approved by the board or an independent committee, no members of which have a personal or financial interest in the transaction; (2) based on appropriate comparability data; and (3) concurrently documented by the board or committee which states the basis for its approval in writing, e.g., through minutes.

14. Our Organization does not endorse candidates for political office and does not participate in any political campaign for or against a candidate for any public office.

15. Our lobbying activities, if any, are an insubstantial part of our Organization’s overall activities. If we are participating in any lobbying activities, we have considered making, and if appropriate, we have made a 501(h) election with the IRS by filing Form 5768.

16. Our Organization understands its 501(c)(3) determination letter from the IRS, and its status as either a “public charity” or a “private foundation.” If there was an advance ruling period noted on our IRS determination letter that expired before June 9, 2008, we have filed a Form 8734 with the IRS.

17. If our Organization receives funds from regularly-conducted business activities that are unrelated to its exempt purpose, it correctly accounts for those funds, and understands how to report and pay taxes on this unrelated business income.

18. Our Organization understands its obligation to pay any state sales, business and occupation, or property taxes, and understands whether it is entitled to any exemptions from these taxes.

19. Our Organization has a current license to do business from the city/county where it is located.

20. Our Organization has filed a Master Business Application with the State of Washington.

21. Our Organization acknowledges, in writing, gifts of $250 or more.

22. If our Organization provides any goods or services of more than a nominal value to a donor who makes a contribution in excess of $75.00, our Organization provides a disclosure statement to the donor with a good faith estimate of the fair market value of any benefit that the donor received.

23. If our Organization receives gifts of vehicles or other non-cash gifts, it understands and follows the IRS regulations for substantiation of those gifts.

24. If our Organization solicits charitable donations from the general public, it complies with Washington’s Charitable Solicitations Act, including registration and annual reporting requirements. (For more information and to determine, before engaging in solicitation activities, whether your Organization qualifies for an exemption from registering with the Secretary of State, visit the Secretary of State Charities Program website at: http://www.secstate.wa.gov/charities/).

25. Our board has reviewed, and if necessary secured expert advice about, our financial controls, and regularly revisits this topic to assure adequate scope and compliance.

26. Our Organization has adequate separation of financial duties. In particular, the person writing and signing checks is different than the person reviewing and reconciling bank statements.

27. More than one person is an authorized signer on our Organization’s bank accounts, and these signatories are up-to-date.

28. Our Organization does not make loans to any of its officers or directors.

29. Our Organization understands and carefully observes any use or spending restrictions on grants and other contributed funds.

30. Our Organization’s Board of Directors regularly reviews the Organization’s financial statements, and reviews and approves the annual IRS Form 990.

31. Our Organization is confident that it has properly categorized volunteers, independent contractors, employees, and interns, and is treating them appropriately for their category.

32. Our Organization is confident it has properly classified employees as either exempt or nonexempt, and is treating them appropriately for their category.

33. If our Organization’s staff members work overtime or have unusual hours, we are complying with wage and hour standards that govern overtime.

34. Our Organization has considered whether it should adopt written personnel policies that include, for example, a description of employee benefits, a process for handling a harassment complaint or other grievances, termination procedures, the process for performance management or employee reviews and other employment practices.

35. Our Organization verifies that all employees are eligible to work in the United States by having all employees complete form I-9 which the organization retains on file for three years after the date of hire or one year after the date of termination of employment, whichever is later.

36. Our Organization withholds federal income and FICA taxes from employees’ paychecks, deposits these withheld funds, along with the employer’s share or FICA taxes, with the IRS on a regular basis, and files a Form 941 quarterly with the IRS.

37. Our Organization prepares Form W-2 for employees and Form 1099 for any independent contractors.

38. Our Organization has registered with the Washington State Departments of Labor and Industries and Employment Security. Our organization makes quarterly payments to ESD for unemployment insurance, and makes quarterly payments to L & I for workers compensation insurance.

39. Our organization does not discriminate in employment on the basis of race, age, sex, disability, marital status, national origin or creed, or sexual orientation.

40. Our Organization has evaluated whether it wishes to provide workers compensation coverage for volunteers. If it has elected to provide this coverage , it has timely notified the Director of the Department of Labor and industries of its intent to do so and is making the required contributions.

41. If our Organization operates a website, the Organization has posted written terms of use or terms of service that limits the Organization’s liability and disclaims warranties. These terms of service are prominently located on the Organization’s website.

42. Our Organization has proper licenses or permission to use all photos and written information created by other persons or organizations.

43. Our Organization has considered whether it should register or obtain other protection for any of its unique logos, designs, trademarks, or services.

44. We are confident that our Organization’s name does not infringe on the rights of any other organization.

45. Our Organization has considered whether it would be appropriate to license any written materials, photographs, recordings, art, policy manuals, seminar materials, etc, that may be available for use by others.

46. Our Organization has considered implementing a written privacy policy that describes how the Organization uses and discloses personal information. If a privacy policy has been adopted, the Organization periodically confirms that it is in compliance with the commitments it makes in that policy.

47. When contracting with third parties to perform services, our Organization uses an employment or independent contractor agreement that assigns ownership to the Organization of intellectual property created by the employee or contractor within the scope of his or her work for the Organization. For instance, if our Organization has hired a third party to create the Organization’s website, the Organization has obtained ownership of the intellectual property in the website design from the developer.

48. If our Organization allows third parties to post information on the Organization’s website, the Organization has implemented a Digital Millennium Copyright Act compliant notice and takedown provision as part of its terms of use or terms of service. The organization has also registered an agent with the US Copyright Office to receive notices of copyright infringement under the DMCA.

Washington Attorneys Assisting Community Organizations,
“WAACO Nonprofit Legal Self-assessment Checklist,” January 20, 2009

Creating the future: get real!

33 principles for good governance and ethical practice.

Legal Compliance and Public Disclosure

1. A charitable organization must comply with all applicable federal laws and regulations, as well as applicable laws and regulations of the states and the local jurisdictions in which it is based or operates. If the organization conducts programs outside the United States, it must also abide by applicable international laws, regulations and conventions that are legally biding on the United States.

2. A charitable organization should have a formally adopted, written code of ethics with which all of its directors or trustees, staff and volunteers are familiar and to which they adhere.

3. A charitable organization should adopt and implement policies and procedures to ensure that all conflicts of interest, or the appearance thereof, within the organization and the board are appropriately managed through disclosure, recusal, or other means.

4. A charitable organization should establish and implement policies and procedures that enable individuals to come forward with information on illegal practices or violations of organizational policies. This “whistleblower” policy should specify that the organization will not retaliate against, and will protect the confidentiality of, individuals who make good-faith reports.

5. A charitable organization should establish and implement policies and procedures to protect and preserve the organization’s important documents and business records.

6. A charitable organization’s board should ensure that the organization has adequate plans to protect its assets—its property, financial and human resources, programmatic content and material, and its integrity and reputation—against damage or loss. The board should review regularly the organization’s need for general liability and directors’ and officers’ liability insurance, as well as take other actions necessary to mitigate risks.

7. A charitable organization should make information about its operations, including its governance, finances, programs and activities, widely available to the public. Charitable organizations also should consider making information available on the methods they use to evaluate the outcomes of their work and sharing the results of those evaluations.

Effective Governance

8. A charitable organization must have a governing body that is responsible for reviewing and approving the organization’s mission and strategic direction, annual budget and key financial transactions, compensation practices and policies, and fiscal and governance policies.

9. The board of a charitable organization should meet regularly enough to conduct its business and fulfill its duties.

10. The board of a charitable organization should establish its own size and structure and review these periodically. The board should have enough members to allow for full deliberation and diversity of thinking on governance and other organizational matters. Except for very small organizations, this generally means that the board should have at least five members.

11. The board of a charitable organization should include members with the diverse background (including, but not limited to, ethnic, racial and gender perspectives), experience, and organizational and financial skills necessary to advance the organization’s mission.

12. A substantial majority of the board of a public charity, usually meaning at least two-thirds of the members, should be independent. Independent members should not: (1) be compensated by the organization as employees or independent contractors; (2) have their compensation determined by individuals who are compensated by the organization; (3) receive, directly or indirectly, material financial benefits from the organization except as a member of the charitable class served by the organization; or (4) be related to anyone described above (as a spouse, sibling, parent or child), or reside with any person so described.

13. The board should hire, oversee, and annually evaluate the performance of the chief executive officer of the organization, and should conduct such an evaluation prior to any change in that officer’s compensation, unless there is a multi-year contract in force or the change consists solely of routine adjustments for inflation or cost of living.

14. The board of a charitable organization that has paid staff should ensure that the positions of chief staff officer, board chair, and board treasurer are held by separate individuals. Organizations without paid staff should ensure that the positions of board chair and treasurer are held by separate individuals.

15. The board should establish an effective, systematic process for educating and communicating with board members to ensure that they are aware of their legal and ethical responsibilities, are knowledgeable about the programs and activities of the organization, and can carry out their oversight functions effectively.

16. Board members should evaluate their performance as a group and as individuals no less frequently than every three years, and should have clear procedures for removing board members who are unable to fulfill their responsibilities.

17. The board should establish clear policies and procedures setting the length of terms and the number of consecutive terms a board member may serve.

18. The board should review organizational and governing instruments no less frequently than every five years.

19. The board should establish and review regularly the organization’s mission and goals and should evaluate, no less frequently than every five years, the organization’s programs, goals and activities to be sure they advance its mission and make prudent use of its resources.

20. Board members are generally expected to serve without compensation, other than
reimbursement for expenses incurred to fulfill their board duties. A charitable organization that provides compensation to its board members should use appropriate comparability data to determine the amount to be paid, document the decision and provide full disclosure to anyone, upon request, of the amount and rationale for the compensation.

Strong Financial Oversight

21. A charitable organization must keep complete, current, and accurate financial records. Its board should receive and review timely reports of the organization’s financial activities and should have a qualified, independent financial expert audit or review these statements annually in a manner appropriate to the organization’s size and scale of operations.

22. The board of a charitable organization must institute policies and procedures to ensure that the organization (and, if applicable, its subsidiaries) manages and invests its funds responsibly, in accordance with all legal requirements. The full board should review and approve the organization’s annual budget and should monitor actual performance against the budget.

23. A charitable organization should not provide loans (or the equivalent, such as loan guarantees, purchasing or transferring ownership of a residence or office, or relieving a debt or lease obligation) to directors, officers, or trustees.

24. A charitable organization should spend a significant percentage of its annual budget on programs that pursue its mission. The budget should also provide sufficient resources for effective administration of the organization, and, if it solicits contributions, for appropriate fundraising activities.

25. A charitable organization should establish clear, written policies for paying or reimbursing expenses incurred by anyone conducting business or traveling on behalf of the organization, including the types of expenses that can be paid for or reimbursed and the documentation required. Such policies should require that travel on behalf of the organization is to be undertaken in a cost-effective manner.

26. A charitable organization should neither pay for nor reimburse travel expenditures for spouses, dependents or others who are accompanying someone conducting business for the organization unless they, too, are conducting such business.

Responsible Fundraising

27. Solicitation materials and other communications addressed to donors and the public must clearly identify the organization and be accurate and truthful.

28. Contributions must be used for purposes consistent with the donor’s intent, whether as described in the relevant solicitation materials or as specifically directed by the donor.

29. A charitable organization must provide donors with specific acknowledgments of charitable contributions, in accordance with IRS requirements, as well as information to facilitate the donors’ compliance with tax law requirements.

30. A charitable organization should adopt clear policies, based on its specific exempt purpose, to determine whether accepting a gift would compromise its ethics, financial circumstances, program focus or other interests.

31. A charitable organization should provide appropriate training and supervision of the people soliciting funds on its behalf to ensure that they understand their responsibilities and applicable federal, state and local laws, and do not employ techniques that are coercive, intimidating, or intended to harass potential donors.

32. A charitable organization should not compensate internal or external fundraisers based on a commission or a percentage of the amount raised.

33. A charitable organization should respect the privacy of individual donors and, except where disclosure is required by law, should not sell or otherwise make available the names and contact information of its donors without providing them an opportunity at least once a year to opt out of the use of their names.

Panel on the Nonprofit Sector Convened by Independent Sector, “Principles for Good Governance and Ethical Practice: A Guide for Charities and Foundations,” October 2007

Philanthropy is …

Effectively cultivating prospects at little or no cost.

“There has never been a better time for nonprofit organizations to seek planned gifts. The challenging economic situation makes planned giving more attractive to prospective donors, the population is continuing to grow older and the largest inter-generational wealth transfer in human history is in its early stages. Nevertheless, despite the enormous opportunity for nonprofits, the sector is not doing enough to capitalize on current circumstances. Consider the evidence:

• Only 37 percent of those over age 30 say they are familiar with the term “planned giving” (2009 Stelter Donor Insight Report).

• Only 22 percent of those over age 30 report that they have been approached to consider a planned gift (2009 Stelter Donor Insight Report).

• Only 5.3 percent of older Americans have made a charitable bequest commitment, while 33 percent are willing to consider such a gift (Dr. Russell James III and The Center on Philanthropy at Indiana University).

• Only 1 percent of Americans have a charitable remainder trust, while 5 percent are willing to consider one (Planned Giving in the United States 2000: A Survey of Donors).

“Clearly the nonprofit sector can and should be doing more to bridge the gap between what has been achieved and what is possible with planned giving. However, before you can secure planned gifts, your prospective donors need to understand that such giving options exist and what a planned gift can mean to them and the organization.

“Fortunately, there are a number of relatively easy options at no or little cost that organizations can use to create greater awareness of a new or existing planned-giving program.

“Widespread messaging. Development professionals need to understand who planned-giving prospects are. While everyone is actually a planned-giving prospect, those most loyal to the organization will be the best and should get extra attention. Prospective planned-giving donors can be found at all giving levels, among all demographic groups and throughout an organization’s database. For some organizations, viable prospects might reside within the community, but not in the database. Therefore, planned-giving messages should be pervasive.

“Eight simple words. To help create broader awareness of planned-giving, you can include eight simple words in your e-mail signature, on your business cards, on your letterhead and elsewhere: “Please remember [organization's name] in your will and trusts.” This simple reminder will help create awareness and get some people to even consider such a giving opportunity.

“In the news. Most organizations publish a newsletter, e-newsletter, magazine or some combination of these. When writing an article about how the organization is fulfilling its mission, include a sentence or two about how a certain program was made possible by a planned gift. For example, in an article about scholarship recipients, you could say, “This year’s scholarships were made possible thanks to a generous bequest from Jane Doe.” A simple line like that, when repeated in other stories, will go a long way toward educating readers about planned gifts and the impact they can have on those the organization serves.

“Donor profiles. Another way to promote planned-giving in an organization’s publications is to print stories about planned-gift donors. However, you must be sure to present stories about diverse donors over time. Most people think that planned gifts (i.e., bequests or trusts) are something that only rich people do. By the way, no matter how wealthy someone is, a donor is more likely to consider himself or herself “comfortable” than “rich.” So show people that anyone can be a planned-gift donor by not focusing exclusively on the largest gifts from your wealthiest supporters. When telling the story, spend little time discussing the gift vehicle and more time discussing what inspired the donor and how the gift will help those served by the organization.

“The big picture and benefits. If you do articles specifically about planned giving in your publications, do not focus on how a gift mechanism works. For example, rather than doing an article that goes into great detail about how a charitable gift annuity is structured and works, mention that this type of gift will allow the donor to support the organization’s mission while providing him or her with an income for life. Save the details for a later discussion with the prospect, and focus in the article on what such a gift can do for the donor and the impact the gift can have. Keep articles brief and donor-centered. Each article about planned giving should benefit the reader.

“Online options. Another low-cost way to build general awareness of planned giving is through your organization’s website. Have a page, or several pages, dedicated to gift planning. As with articles, keep the material simple and of high value to the reader. Instead of having a button that says, “Charitable Gift Annuity,” have one that says, “Income for Life.” Keep the message simple and focused on the prospect. Also, be sure to include plenty of inspiring, real stories about diverse donors. This will move prospects, as well as further engage those you are writing about.

“Easy to contact. Whether in e-mail, print or online, make sure that prospects and donors can reach you easily. This means you should include your name and all of your contact information. People are more likely to make an inquiry of you than they are to some faceless institution’s general telephone number. Keep it personal and simple. No one is going to go hunting for your e-mail address or telephone number.

“Easy to read. Regardless of the electronic or print medium used to communicate with prospects, the material should be readable. While this sounds obvious, it is sadly not common practice. Remember, planned-giving prospects are almost always over age 40. Use a font size of no less than 10 points. Use a serif font, i.e., Times New Roman, rather than a sans serif font, such as Arial. While perhaps not as clean and attractive as sans serif fonts, studies show that serif fonts are actually easier to read. Do not use reverse type (white lettering on a dark background) because it is more difficult to read and not easily photocopied, printed or faxed.

“Events. There are a number of way events can be used to promote gift planning. For example, at a donor recognition event, be sure to specifically recognize those who have made a planned-gift commitment. You will solidify the support of your planned-giving donors while inspiring others to consider a planned-gift. Look for creative ideas for engaging and recognizing planned-gift donors in ways that cost little or nothing. You also can offer estate-planning seminars. However, the seminars should focus on the prospective donor rather than the organization. In other words, seminars should not be about the variety of ways one can donate to the organization, but rather about how estate planning can benefit prospective donors and their families. When inviting prospective planned-gift donors to events, remember that many will be elderly and will not drive after sunset if they still drive at all. Schedule events earlier in the day for seniors and consider helping to arrange transportation.

“By spreading the word about planned giving and how it can benefit donors, organizations will be better positioned to go out and ask for planned gifts.”

Michael J. Rosen, “Effectively Cultivating Prospects at Little or No Cost,”
Advancing Philanthropy, January/February 2011

Social media for nonprofits.

10 non-negotiable elements of Moves Management®.

1. Unwavering support / buy-in of leadership
2. Qualified, action-oriented fundraisers
3. Assigned, rated portfolios
4. Appropriate CRM / donor database
5. Standardized coding
6. Clear ROI of making call reports
7. Specific, relevant goals and benchmarks
8. Goals and benchmarks tied to fundraiser evaluation and review
9. Statistical reports based only on database-entered actions
10. Regular team and individual fundraiser meetings

Peter Hoskow, The Big Bucks Start Here: 10 Non-Negotiables In Effective Moves Management®, 2011 Northwest Development Officers Association Winter Conference

5 no-no’s of nonprofit messaging.