Jeff Lofting
Director of Education
Read more from Jeff

 

Jump to:

Overview  |  GuideStar  |  Great Nonprofits  |  Google My Business  |  Charity Navigator

 

Imagine this scenario: You launched a new nonprofit a couple years ago, have spent countless hours developing programs and measuring outcomes, and you are now having a get-together with potential donors to share the progress.  You’re blindsided, though, when one approaches you and asks why you have a 1-star rating on one of the various charity rating sites.  You had heard of these sites but hadn’t taken the time to explore them and their potential impact – both negative and positive.

The good news is that this scenario has likely not happened to you yet, and you can be proactive in controlling the digital footprint that these sites provide.

So, what is a digital footprint? Footprints, whether around the swimming pool or in the fresh snow, can help to lead you to the source of the tracks. Similarly, your organization’s digital footprints provide a presence in the digital realm that help to lead individuals to your organization and allow them to discover and possibly join in the incredible work you are doing. Most nonprofits have at least two digital footprints: a website and social media profiles. But, the more footprints that are out there, the more likely you will be noticed and tracked down.

Charity rating sites can be helpful tools in bringing exposure to your organization. If your organization is a 501(c)(3), it is listed on the various charity rating sites. 

How, you might ask? Through public information obtained through mandatory tax filings. Whether an individual is looking to donate their time or finances to your organization, they want to ensure there will be a good return on investment. And, if a potential donor searches for your organization on the internet, there’s a high likelihood that your organization’s listing on one or more of these websites will appear in the search results.

According to studies cited by Bloomerang.co:

  • 52% of donors said that seeing a charity watchdog seal would “greatly or moderately increase their likelihood of giving”
  • 84% said the absence of a seal “would decrease their giving”
  • And, lastly, “a favorable rating by at least one charity rating agency positively impacts giving”

When someone visits these sites, they will see basic tax filing information by default.  However, you have the option to add more specific information about your organization, including impact and outcome information on most sites, and the information can be added free of charge.  You simply have to claim your organization to update your organization’s profile!

Doing so not only adds credibility to your organization, but it also provides the opportunity to more fully control how your organization appears and deliver a more accurate perspective on its mission and outcomes.  You can generally use the same information that you develop for one rating site on the other sites, so it can be relatively quick to build up your organization’s presence on multiple sites in a relatively short amount of time. 

In this article, we are focusing on how to update your organization’s information on three major charity rating sites: GuideStar.org, GreatNonprofits.org, and CharityNavigator.org.  Additionally, we’ve provided information on how to add or update your information within Google

 

GUIDESTAR

Description: “GuideStar is the world’s largest source of nonprofit information, connecting people and organizations with data on 2.5 million current and formerly IRS-recognized nonprofits.  GuideStarNonprofit Profiles are populated with information from the IRS, directly from nonprofits, and via other partners in the nonprofit sector” (source).

 

What It Offers:  In addition to basic demographic information from IRS filings as well as information potentially pulled from your organization’s website (e.g. the organization’s mission), GuideStar allows nonprofits to feature program descriptions, results and outcomes, goals and strategies, financial data, and organizational demographics.  Additionally, Guidestar partners with another charity rating site, GreatNonprofits.org (featured next), to feature stakeholder reviews of your nonprofit.  You can earn seals of transparency by updating your organization’s information biennally; adding even the most basic information can earn your nonprofit the Bronze Seal of Transparency.  (More information on GuideStar seals can be found here.)

 

Exemplar Profile: Global Vision Citadel Ministries

Creating Your GuideStar Account

  1. Create your account by visiting guidestar.org and clicking Create account
  2. Enter your personal information (NOTE: You will need to use your organization e-mail address for sign up in order to more quickly claim your organization’s profile), choose and confirm your account password, and click Sign up for free.
  3. When prompted, connect your profile with your organization by entering its name or EIN and clicking Search.
  4. Select your nonprofit and press Next to complete the sign-up process.  (You may have to confirm your account through an e-mail sent to your new account e-mail address.)

(A full tutorial with screenshots can be found here.) Claim and Update Your Nonprofit’s Profile Once your profile is created, you can then apply to update your nonprofit’s profile.

  1. Visit learn.guidestar.org/update-nonprofit-report
  2. Click Get started now
  3. If you are already signed into your GuideStar account, you’ll be prompted to enter your organization’s name or EIN, click Search, then select your organization to continue.  (Otherwise, sign in to continue with this step.)
  4. Enter the information requested in the fields, check the required boxes, and press Submit request.
  5. You may be required to upload your IRS EIN Issuance Letter or an IRS Issued Letter of Affirmation.  If so, you might have to wait 2-3 for your request to be reviewed by GuideStar.  Once it is confirmed, you will have access to update your organization’s profile.  (You may have to provide documentation from the IRS to confirm your account, particularly if your organization does not have a website.)
  6. General instructions for updating your organization’s profile can be found at: https://help.guidestar.org/en/articles/2191456-how-to-update-your-nonprofit-profile

(A full tutorial with screenshots can be found here.)

GREAT NONPROFITS

Description: “GreatNonprofits is the leading platform for community-sourced stories about nonprofits.  These stories are submitted by people who know you best — all those who have experienced the impact of nonprofit work up close” (source).

 

What It Offers: Great Nonprofits is unique in that it allows you to collect reviews and stories from stakeholders of your organization and/or community, which can be powerful in inspiring further support from others.  They consider themselves “the Yelp! of nonprofits.”  You’re able to invite reviews via e-mail, social media, or SMS text to your current stakeholders.  Once you receive reviews, they can be featured on your social media platforms to further share the impact of your nonprofit.  Additionally, reviews submitted in GreatNonProfits.org will also appear in your Guidestar.org profile.

Video: Overview of GreatNonprofits

 

Exemplar Profile: Global Vision Citadel Ministries

 

Creating Your GreatNonprofits Account

  1. Visit greatnonprofits.org and click Sign Up in the upper right corner.
  2. Above the e-mail, username, and password fields, choose I’m a nonprofit.  Then, enter your organization’s e-mail address and a username and password of your choice, and click Sign up.

Claim and Update Your Nonprofit’s Profile

  1. Next, in order to claim your organization, enter your org’s name or EIN and click the search icon to find it in the database.
  2. Click on your nonprofit in the list.
  3. Click the Claim Nonprofit Profile button at the top of the informational section on the right.
  4. You’ll be taken to a page that provides methods to share your nonprofit’s profile via e-mail, social media, and SMS text.  Simply click Skip this Step to continue to your org’s profile.
  5. Enter your organization’s e-mail address, which could be the executive director’s address or a general “info@yourorg.org” type of address.  You’ll also have the opportunity to upload your logo, photos featuring your nonprofit, and the URL of an informational Youtube video. Click Save Changes or Skip this Step, if you did not enter any changes.
  6. In the next section, you can update your org’s physical and website address, as well as add Twitter and Facebook URLs and information about volunteering. Click Save Changes or Skip this Step, if you did not enter any changes.
  7. Once your arrive at the organization’s dashboard (with the Profile Completion percentage graphic), you can click either Edit Profile in the top gray menu bar or the orange Improve Your Profile button to update information about your impact, mission, and results/outcomes.  Click Save Changes, if you make any changes.
  8. The greatest benefit of GreatNonProfits.org is the ability for stakeholders to leave reviews.  But, you have to advertise this ability.
  • Click on Show Off Your Reviews in the grey menu bar at top share code that can be used to place badges on your org’s website.
  • Click on Invite Reviews to see the sample e-mail and social media text.
  • Once you get reviews, you can quickly share specific reviews on your org’s social media page.
  • Additionally, reviews submitted in GreatNonProfits.org will also appear in your Guidestar.org profile.

Video Tutorial: Updating Your Nonprofit Profile 

 

GOOGLE MY BUSINESS

Description: With Google My Business, you can:

  • Add your nonprofit information to Google Maps, Search, and other Google services
  • Manage how your nonprofit information shows up across Google (source)
  • Collect and respond to reviews about your nonprofit.

 

 

What It Offers: This is not considered a traditional charity rating site, but it is important to consider because of Google’s ubiquity.  Whatever you think of the company itself, Google continues to dominate the market share (92%) for search engines – most likely, if someone is looking for information on your organization or wanting to provide a review, they’ll search for you on Google.  This is why you should seriously consider adding or updating your organizations information on Google My Business.  It is relatively easy, though the verification process can take a couple of weeks.

Google provides some excellent tutorials on how to go through the process of verifying your nonprofit as well as maintaining your profile through Google My Business.

 

CHARITY NAVIGATOR

Description: “Charity Navigator is the largest expert charity evaluator in America. The organization helps guide intelligent giving by evaluating the Financial Health, Accountability and Transparency of charities and by providing data about 1.6 million nonprofits. Charity Navigator does not charge the organizations it evaluates, ensuring unbiased evaluations, nor does it charge the public for this trusted data” (source).

 

 

What It Offers: Charity Navigator provides a rating of charities based on: 1) their financial health and 2) their accountability and transparency.  Based on their algorithms in those areas, they claim to demonstrate how efficiently a charity will use a donor’s support.  Of all three charity rating sites featured in this article, Charity Navigator provides the least amount of input by a nonprofit organization.  In fact, many charities are not yet rated by Charity Navigator and only their basic data from IRS filings are displayed. 

Charity Navigator does not rate nonprofits until the organization has filed Form 990s for seven consecutive years and annual revenue is greater than $1 million for two consecutive years, among other criteria.  If that includes your organization, it is especially important to check on your Charity Navigator profile!  

Charity Navigator bases their ratings entirely on an organization’s Form 990. If your organization reports more than $1 million in annual revenue, it is vital that your 990 is “up to snuff.” Charity Navigator’s rating criteria is very objective and generally sensible, so you owe it to your donors to ensure that you follow industry best practices and report those practices on your tax form.

 

You can check whether your organization is rated by visiting charitynavigator.org and searching for your organization by name or EIN.  If your organization has been rated, a designated charity representative is able to update your organization’s contact information, mission statement, and tag line.  (Unfortunately, at this time, if your organization has not been rated, you will be unable to designate a representative.  To update information in this situation, you can attempt to contact Charity Navigator at info@charitynavigator.org.)

Charity Navigator is working on providing an impact and results score for organizations.  If it’s not rated, yet, you can be added to the waiting list for CN to create an impact and results score by clicking here.

To get started on revising your Charity Navigator profile, do the following:

  1. Visit this page for instructions on designating a representative for your organization.  Once this process is complete, each charity’s official representative is able to suggest edits to the basic information, such as address and mission, shown on their rating page on our site. 
  2. If you are the official representative, log into the site and visit your charity’s rating page. 
  3. Click on the Edit Profile link to submit your changes. 
  4. The analyst responsible for evaluating your charity will review your submission and either update your charity’s profile or contact you for additional information.

 

 

Avery West
Membership Engagement Director
Read more from Avery

 

 

 

“Our food pantry has been feeding the same families for years. Is there anything we can do to bring about long term transformation in people’s lives?”

This is one of the most common questions we help nonprofits and churches work through. The leaders who ask this question know that their clients don’t merely lack food, but they also often suffer from a lack of community and self-worth. Traditional food pantries, while they meet immediate needs, often fail to address deeper losses of relationship and work that perpetuate the cycle of poverty.

In his book Toxic Charity, Bob Lupton describes Urban Recipe, an Atlanta-based food co-op where members take part in unloading, sorting, and distributing food before they join together in a business meeting. A real sense of community has formed over time, and members appreciate the chance to contribute in providing not only for their own families, but for others’ as well.

While some co-ops hold collective meetings for all members, others operate more on a “drop-in” basis.

Joshua’s Place, a True Charity Network member in Lebanon, OH, is one such group. When co-op members arrive for their appointments, they contribute $4 and meet with an ally (or mentor) for 15 minutes before leaving with a box of food. Members also take part in a developmental class that equips them with parenting skills, financial planning, or other skills needed to rise out of poverty.

Home Sweet Home Ministries in Bloomington, IN, operates by yet another model. Members earn shopping trip vouchers by volunteering for two hours at the Bread for Life Co-op. Volunteer tasks might include stocking shelves, janitorial work, or checking in other members.

Both approaches have distinct benefits. The collective meeting style lends itself to a strong sense of community and easier scheduling, while a drop-in style can accommodate various volunteer and member schedules and lead to a more guided, developmental path out of poverty. It is important to keep in mind, though, that these approaches are not two distinct paths, but rather two ends on a continuum. Your co-op can incorporate elements from each as you meet the particular needs of your community.

Each food co-op looks different, but they all uphold the importance of exchange and community. The principle of exchange simply means that all individuals involved have the opportunity to give, not merely receive. Exchange might look like giving a few dollars, volunteering at the co-op or another area nonprofit, or attending a developmental class. Whether community is formed through eating a meal together, working side by side, or meeting with a mentor, food co-ops can help facilitate the relationships that are essential to a flourishing life.

If you are considering turning your traditional food pantry into a more developmental food co-op, the True Charity Network has all the resources you need to build a detailed plan that works for your situation. In general, we will advise that you begin with a listening tour.

A listening tour is simply a series of conversations that inform your program design. You can ask questions about what the potential member likes and dislikes about the current pantry model, whether they would prefer a regular meeting time or more flexible appointments, and what a realistic contribution of finances or time would be.

These conversations also give you the chance to explain the switch you’d like to make, and build buy-in from the very beginning. Make sure to ask what skills and gifts the individual has that may be helpful to the community (e.g. planting a community garden, teaching a cooking class, cleaning the facility). These questions will not only remind the individual of his assets, but they’ll lead to a more creative, vibrant, and committed community co-op in the long term.

Invite those potential members who seemed especially interested in the co-op to join your advisory board. This board, made up of co-op members, will aid in decision-making, advertisement, and larger tasks like food pick up. Including members in the management of the co-op breaks down the giver/receiver dynamic of traditional food distribution, and helps foster leadership skills.

From there, your staff and advisory board can meet to discuss the specifics of membership requirements, hours, and food distribution. We also recommend that you research the exchange rates of established co-ops as a starting point—this is something the True Charity Network can help you with as well.

Making a developmental change is never easy or smooth. Every co-op learns to adjust to the needs and assets of its community, and that will take time. However, with each developmental change, more families will experience the dignity of exchange and the blessings of relationship. Over time, you may join other food co-ops in finding that you have fewer repeat customers!



The True Charity team is here to come alongside you as you develop your programs. Whether you are ready to make a change, or just interested in learning more, you can begin by reaching out to info@truecharity.us. True Charity Network members have access to more food co-op resources, including a detailed model action plan, operational documents, and personalized training.

 

 

 

 


This article is just the tip of the iceberg for the practical resources available through the True Charity Network. Check out all of the ways the network can help you learn, connect, and influence here.

Already a member? Access your resources in the member portal.


 

 


Avery West
Director of Community Initiatives
Read more from Avery

 

The phrase “community development” can bring up images of everything from trash pickups to bike lanes to block parties. What really is community development, and how can your church or organization incorporate it into your work?

Community development can be so nebulous because it is, very simply, members of the community coming together to make their community better. So, what do beautification projects and festivals and mixed-income housing have to do with poverty? While other techniques tackle the problems of poverty—addiction, hunger, homelessness—after they arise, community development attempts to prevent poverty by creating a place where people can flourish. Employment, healthy lifestyles, strong families, and good schools are radically interdependent. Therefore, an effective approach to poverty prevention must keep a holistic mindset.

Community development creates the conditions for a flourishing life so that families don’t fall into material poverty or social isolation. Often, this process begins at the neighborhood level. 

Community Renewal International (CRI), for instance, works with neighborhoods in Shreveport, Louisiana, to establish “friendship houses.” This regular house in a high-crime area transforms into a neighborhood community center with after school programs, GED classes, and family nights. The community coordinator and his or her family, who live in the house, build relationships with their neighbors, welcoming them to take part in improving their own lives and their neighborhood. CRI has seen a 44% drop in crime in their friendship house areas.

Lucas Rouggley had a similar idea when he moved into an at-risk neighborhood in St. Louis, MO. He and his wife got to know their new community, mentored the neighborhood kids, and hired them over the summer to transform vacant lots into community gardens. Now, the organization Rouggley founded, Love the LOU, tackles bigger problems. They connect students with mentorship, coordinate apprenticeship programs for high school graduates, and renovate vacant houses for community members to rent and eventually own. 

While these organizations have different models, they both began on the neighborhood level. They focused on building relationships first. After this trust was built, neighbors felt more comfortable sharing their fears and needs, but also their strengths and gifts that could combat community problems.

In their book When Helping Hurts, Steve Corbett and Brian Fikkert emphasize the importance of this shift in focus from needs to assets. Asset-based Community Development (ABCD) begins not with asking what is going wrong, but what is going right.  “Indeed, the very nature of the question—What gifts do you have?—affirms people’s dignity and contributes to the process of overcoming their poverty of being,” they write. A focus on assets is essential to building an internally strong community, not just one that has resources streaming in from outside. 

Whether your organization’s focus is community development or not, there are some ways you can incorporate this ethos into your work:

 

– 1 –

Consider your location

The purest form of community development happens when an organization is dedicated to a specific geographic place. Staff move to the neighborhood, the office operates from that area, and the group intentionally raises up individuals from the neighborhood who take leadership positions at the organization. Having a sense of ownership, as well as seeing the individuals served not as “clients” but “neighbors,” creates a healthy dynamic that makes transformation sustainable in the long term. If your program is committed to improving life in a particular place, check out this article for some ideas of where to begin.

 

– 2 –

Focus on assets by using the SWOT analysis

In our attempt to help an individual, we run the risk of forming his identity based solely on needs and weaknesses. Whether we work with communities, families, or individuals, we should work to see people holistically—with a past, future, strengths, and weaknesses. The SWOT analysis provides a structure for asking questions with the whole person in mind. This tool, which can be an easy first step in care coordination, leads organically to goals based on the individual’s desires and gifts.

 

– 3 –

Start a “neighboring” movement

Inner city neighborhoods aren’t the only ones that experience poverty. Suburban poverty is on the rise, and every social sphere suffers from the spiritual poverty of isolation. The Art of Neighboring features several resources to encourage good “neighboring,” from inspirational videos to a block party kit to a small group study guide. While the resources are made for churches, any organization could champion a neighboring movement among their staff, clients, or broader community. Individuals, too, can help their communities flourish simply by creating a culture of friendship within their neighborhoods. 

 

The most essential part of community development is not following a particular model or way of speaking. It is simply the recognition that communities have, within themselves, gifts, resources, and institutions that are vital for their flourishing. The job of the community developer, then, is simply to help individuals tap into those gifts and support them in authentic friendship for the long haul.

 

 


Avery West
Director of Community Initiatives
Read more from Avery

 

You’ve identified some of your clients who could benefit from some new skills. It’s easy to say, “Let’s teach a class.” But let’s be honest, running a class is tough. 

We’ve collected some advice from experienced leaders and programs so that you can make your class a time of real transformation and community—and something everyone looks forward to.

1 Acknowledge roadblocks from the outset: Classes can fall apart when participants stop attending because of unreliable transportation, changing work hours, or small domestic crises. These are realities for many people living in poverty, and everyone—participants, allies, facilitators—should affirm, discuss, and plan for them from the very first class. Jobs for Life, a program targeted toward underemployed individuals, suggests writing on a whiteboard: “What may keep me from completing this course?”, then talking through solutions or preventions to the problems raised.

 

2 Incorporate allies: Forming deep social bonds is a critical step on the path out of poverty. Ask volunteers to serve as mentors, or “allies,” learning alongside participants in class, and forming a friendship with them outside of class and even after graduation. You can schedule a time for mentorship immediately after class, or simply encourage allies to invest in this relationship during the rest of the week—whether that means grabbing coffee together or inviting their family over for dinner.  

 

3 Ask participants to invest: Before the program begins, invite participants to contribute a certain amount toward materials and meals. Whether it’s $5 or $100, this buy-in gives the attendee the pride of knowing he is investing in his future.  

 

4 Check in the day of/before each class: Allies or the class facilitator should text or call the participant before every class. This may genuinely remind the attendee of the meeting, and gives him or her an opportunity to bring up any possible conflicts: “My mom can’t watch the kids this time,” “Peter’s car broke down today.” Then, the troubleshooting begins.  

 

5 Expect punctuality: Some individuals living in poverty may not be used to having obligations at a particular place and time, so facilitators must be clear about graduation requirements and expectations from the outset. This insistence on participants’ growth is especially crucial for job-related classes. The Chalmers Center’s Work Life guide points out: “If sites never ‘fire’ anyone from class for not showing up on time or coming to class, they probably aren’t truly preparing participants for the real world of work, and thus cannot with integrity tell potential employers that they ought to hire graduates.” 

 

6 Follow up: If an attendee misses class, mentors should follow up to find out the real reason. Mentors should also reach out if a participant is too disruptive or not participating. Although these conversations may be uncomfortable, they send the signal that each individual is truly valued and held to a high standard. Participants will soon learn that mentors are interested in real, not superficial, relationships.  

 

7 Serve a meal: Food not only serves as a powerful incentive for attendance, but also facilitates good conversation and community. Meal preparation is a great way to involve volunteers who can’t commit to being an ally, but still want to be involved. 

 

8 Play music: Uplifting music creates a warm, friendly environment. Set a welcoming tone from the very first interest meeting by playing music as people enter, exit, and during breaks. 

 

9 Provide childcare: Unreliable childcare can result in spotty attendance. Recruit younger volunteers to help out, and/or encourage participants and allies to bring along their older children for a free meal and a chance to serve.  

 

10 Always include discussion: Lecture plays an important role in classes, but discussion is where participants digest, synthesize, and apply the information they just learned. Incorporate not only large group, but also small group and partner discussion throughout to bring in those who are naturally more quiet. 

 

11 Add to the program to meet participants’ unique needs: If a mother tells you about her struggle to parent her child with special needs, offer to connect her with your friend who is a special-ed teacher. If a man in your budgeting class expresses an interest in stocks, bring in a guest speaker to address the basics of investment. An active ear for what participants want to gain from the class fosters your personal relationship with attendees, builds up their sense of ownership, and puts the participant in the driver’s seat on his path out of poverty. 

 

12 Invite guest speakers: Guest speakers don’t just give participants a break from the main facilitator—they are an embodiment of the positive life attendees hope to experience. Invite previous graduates to share their testimonies, employers to speak to the importance of soft skills, or subject-matter experts to talk about their work or lead an activity. 

 

13 Build in natural off-roads: A twelve, six, or even two month commitment may feel daunting to some potential participants. Consider breaking up the class into several manageable portions. In addition, not every attendee will complete a longer program, especially when that program requires significant lifestyle change or freedom from addiction. When you incorporate four week to three month breaks or checkpoints along the way, participants have a short-term goal to meet, as well as a chance to celebrate their success. This also allows individuals who can’t commit to the next leg of the program to leave while still retaining a sense of accomplishment, making them more willing to try again in the future. 

 

14 Host alumni gatherings: Consider working with graduates to plan reunions every couple of months. Not only does this encourage accountability for keeping up what they learned, it gives graduates a chance to coordinate their own events, decide on relevant topics, and share their accomplishments and struggles. These gatherings can also serve as a natural stepping stone for graduates to then take part in subsequent classes as allies.

 

Want to share a program you love with the True Charity community?  We’d love to hear about what has and hasn’t worked for you. Reach out to info@truecharity.us to share about a class you’ve used or developed.  

I’m very grateful to True Charity Network Members, John Boyd, Teddy Steen, Doug Gamble, and John Pace for their insight and advice in the writing of this article.

 

 


James Whitford
Executive Director
Read more from James

 

 

Several years ago in a meeting with some city and nonprofit leaders, I shared the need and vision for a long-term recovery center. The idea became a central piece to a ten-year plan to address homelessness. City-government leaders involved in the discussion voted to allocate $500,000 dollars as seed money to realize the new brick-and-mortar project. Some were shocked when we turned it down. Why would anyone turn away half a million dollars of free government money? Because it’s not free.

Every nonprofit leader should know that most opportunities afforded by the government come with significant opportunity cost – whatever is lost by foregoing the alternative solution. For example, in his recent article, Travis Hurley, Advancement Director for Watered Gardens Ministries, points out that donors are more inclined to give to nonprofits who don’t take government money, and more than 1/10 will decrease giving when government steps in to help. Taking a sizable government grant and retaining nearly 90% of your private donors may seem like a win, but that simple math doesn’t capture the whole of the cost. There’s more. It crowds out community, hurts your hustle, and cramps your style.

 

– 1 –

It Crowds Out Community

Growing a nonprofit for 21 years on private donations alone has demanded a tremendous amount of grassroots fundraising energy: engaging radio ads, television PSAs, mass mailings, gala events, sponsorship requests, calls, visits and more calls. We even developed a way for individuals to sponsor one night of shelter each month for $15. Thousands of donors are involved and every month, each receives a signed letter and testimony of a life impacted by their partnership. That’s a lot of work! Certainly, if we just landed a few government grants, it would lighten that load. However, like other nonprofits, money alone isn’t the answer. More so, people are.

The community we engage to financially support the work is also the community that steps up to fill more than 700 volunteers shifts every month at our mission. The results from this 2014 Fidelity Charitable survey revealed that 87% of donors are involved in volunteering, too. More interesting, financial support usually comes first. Fifty-eight percent of donors reported giving financially before signing up to give of their time. Taking government money crowds out more than private donor dollars. By relaxing the demand to vigorously engage those donors, It crowds out the very community necessary to serve and build relationships with the clients who need so much more than what cash alone can provide.

 

– 2 –

It Hurts Your Hustle

Government dependency doesn’t just happen to people trapped in the welfare system; It can happen to organizations that become reliant on the renewal of last year’s government grant. Government dependency at any level fails to be a source of encouragement, inspiration, or even decent accountability. Government simply can’t do that. But local donors can.

With local donors, I have challenging conversations, tough questions demanding honest answers, inspiring moments as we tour through our facilities. This active attention is the result of constant engagement by a community enthusiastically involved in the cause they support and care about. In a good way, it keeps me and my staff on the hustle. I consider it a type of Hawthorne Effect – the idea that performance is improved when workers know someone really cares about what they’re doing. That someone cannot be the institution of government. Rather, government dependency for the nonprofit stifles this type of healthy interaction and accountability. It’s sure to hurt your hustle if not kill it, entirely.

 

– 3 –

It Cramps Your Style

You have your own style that flows from the vision you have for your organization. That vision and the important cause it addresses are what you share with passion to a community that supports you. If you’re the leader, it’s your vision and you drive it. You work hard to develop the strategic plans to fulfill it. You teach the core values that drive an organizational culture to support it. You believe in your mission and more than anyone else, you steer it. The trajectory or course is determined by your unwavering commitment and focus on your vision – the destination of your hope. And, how your mission gets there is up to you and your team. This methodology, a blend of your passion and conviction to address the unique needs in your specific community is your style.

I once shared some of this with the leader of a government-funded community action agency. She looked perplexed. “That’s just not how we operate. The federal government drives our programs depending on what they decide to fund.” I was as shocked as she was. At that point in my life, I was unfamiliar with any organization whose mission drifts so easily to achieve someone else’s desire.

You might think that a small government grant won’t do much to cramp your style, but one Salvation Army leader in another city once told me, “Don’t ever take government money! I took a grant to build a larger cafeteria. Afterward, the ACLU sued us for praying in it!” Even what seems to be “no strings attached” may end up cramping your style.

Remember, the cost of government funding that crowds out, hurts, and cramps is worth counting carefully. I encourage you instead, call your community into partnership, keep your hustle, and never drift off course from the vision God has planted in your heart.

 

 


Travis Hurley
Director of Advancement
Read more from Travis

 

 

It’s no secret that maintaining a strong relationship with your organization’s top donors is paramount to long-term sustainability. It takes intentional effort to ensure those relationships extend beyond a mere exchange of money. Wouldn’t it be helpful to know their thoughts and attitudes about your organization, their resources, and the factors that bring the two together?  

Thankfully, U.S. Trust and the Lilly Family School of Philanthropy have produced a biennial report, starting in 2006, that gives you a peek into the minds of your largest donors. As you peruse their findings, the results can be motivating.

– #1 –

For instance, in the 2014 report, people with high net worth were asked, “How would you respond to a decrease in government funding to a nonprofit organization you support?” Nearly a third (32.4%) said they would respond by increasing their own support, while just 1% indicated they would decrease (pg. 82). Meanwhile, when the question was reversed, “How would you respond to an increase in government funding to a nonprofit organization you support?,” the results showed 11.9% would actually decrease their giving in response (pg. 83).  

As non-profits consider the benefits of eschewing government funding (greater freedom, greater authenticity), these findings suggest your organization can move away from it and still thrive. When major donors believe in your work, a significant portion of them indicate they will step in with more funding as government money decreases. Conversely, you risk losing over 1/10th of your major donors if you pursue more government money going forward.

– #2 –

Here’s another finding from the same 2014 report (pg. 84) and the 2016 report, too: When it comes to addressing societal problems, most high net worth donors have much greater confidence in individuals and nonprofits (91% in 2014 and 87% in 2016). Those getting the least of their confidence? Governmental agencies at every level, from federal to state and local.

 

Adapted from the chart on pg. 84 of the US Trust Study of High Net Worth Philanthropy; https://www.privatebank.bankofamerica.com/publish/content/application/pdf/GWMOL/USTp_ARNTCJF5_2015-11_v1.pdf

 

This information should both inspire and focus your organization. Let their vote of confidence inspire you to press on in your ministry and seek innovative ways to make the kind of personalized impact impossible for government agencies. 

And let it focus your organization, too. While still at the top in the minds of high net-worth donors, confidence in individuals and non-profit organizations did experience a drop from 2014 to 2016. Measure more than the outputs of what you do by also measuring the outcomes of lives changed, and those confidence numbers will rise for your organization

– #3 –

Here’s one more from the 2016 report that drives that last point home: Over half of these top donors (53.4%) don’t know if their giving is having an impact (pg. 74). And barely one- third (35.7%) of these top donors will always be motivated to give simply because they gave to your organization last year (pg. 68). Meanwhile 79.2% of them gauge the impact of their giving by what you tell them (pg. 76). 

So, don’t assume the partnership. Instead, diligently share stories of transformationand couple them with measurable outcome totals that demonstrate those stories are not anomalous. Do these well, and your top donors will keep investing in your work.

 

You can look deeper at all of these studies online. The biennial reports range from 2006 to 2018, and there’s plenty to digest. Insight into the thoughts and attitudes of your top donors will help you maintain and strengthen top donor relationships for your organization.

 

 


James Whitford
Executive Director

 

 

Imagine that you spend months crafting a relational, empowering program at your ministry. You carefully craft a series of questions for clients designed to find their talents and abilities. The person responsible for asking the questions changes out several times and one day you decide to sit in on the process. What was designed as an exercise in personal connection has become quite the opposite – an adversarial bureaucratic process that demeans your client. Changes of this magnitude in our processes happen over time and more often than we know. Beyond designing and implementing your programs well, you must maintain their effectiveness over time.

In Psalm 139:14, the psalmist proclaims, “I am fearfully and wonderfully made!” Certainly, we are. Most of the really amazing stuff happens at the cellular or even molecular level. Just consider that there are specialized proteins with a specific function to check out strands of DNA throughout the cells of your body looking for a mistake. If they find an error, they correct it. That’s good news! If they weren’t there to check the accuracy of cell production and function, then over time your production and function would go awry as one genetically faulty cell after another would replicate itself. 

Although our nonprofits are not nearly as complex as the human body, they’re certainly at risk of going awry. To safeguard our organizations, we must implement ways to accomplish the same function as those specialized proteins, checking on the accuracy of what’s being produced. How do we ensure our operational processes aren’t drifting off-course from their original intent and design?

An “operational audit” is one way. This is a systematic review of effectiveness, efficiency and economy of operation in an organization. These are usually performed on an infrequent basis and require an external auditor who is a specialist. If you’re already doing this, don’t stop. If you’re not and it seems a bit overwhelming, let me recommend a simple way to get started on that important task of accuracy-checking your operational processes. Rather than an audit, we’ll call this simpler approach an operational review.

 

– STEP 1 –

Identify IMPORTANT processes

At the nonprofit I direct, I’m not reviewing the process by which our trash gets emptied. I don’t plan on it, either. In part, that’s because it’s simply not a very important process in our mission. However, communication isit’s vital so for usso, a review of our phone calls is very important. The first step is to determine which processes are most important for your organization. As an exercise, you might write down the first few that come to mind. To help with this, ask, “What would be the last few programs of our operation that we would shut down if we had to?” Jot those down and then list a few of the processes required for each of those operations to occur. Lastly, rate each of the processes on a scale of importance, 0-10, with 10 being the most important. Again, importance is a measure of necessity.


– STEP 2 –

Identify UNSTABLE processes

Some processes might be at less risk of error or “drift” than others. Instability is a measure of the likelihood processes will vary between episodes or between different people. For example, we have a breathalyzer process during check-in at our emergency shelter. It’s important. However, it’s very stable. In other words, it’s not a complicated process and, because it only has two simple steps, it’s at much less risk of variation or error than the process that comes after that – resident data entry. Because there’s a lot of data to capture and enter during that phase of the check-in process, it’s less stable than the breathalyzer process. Looking at your list, rate the same items on a scale of instability, 0-10, 10 being the most unstable or at most risk of error.

– STEP 3 –

Graph your processes on a basic XY graph

In the example, you can see that those processes in the top right of your graph are those most likely to require a review. They are the most important but also the most error-prone.

Spreadsheet apps, like Microsoft Excel or Google Sheets, can be used to create the charts and graphs.  Or, quickly and easily make your own graph from handwritten important and unstable processes by using this link


– STEP 4 –

Choose a sample of instances for review

I’m glad we have checks happening on every DNA strand of every cell. I’m also glad that level of review or auditing is unnecessary in the nonprofit world. However, it is important that the review of a particular event be randomly selected. As an example, our weekly shelter review process requires drawing the folder of a resident whose bed number matches the date.  It’s also important that the reviewer be unbiased. A randomly selected, unbiased review of a process will yield the most useful and accurate information.

– STEP 5 –

Build a rating system for your results

When you design your review for a specific process, ask questions in a form that “no” is a negative response and “yes” is positive. You might refer to the example. I recommend staying away from short answer responses. It will be better to do simple scoring where a “no”  represents a missed point. In other words, one “no” and nine “yeses” is a score of 9/10 or 90%.

Setting up a review process for your nonprofit can benefit you in a few ways. First, you’ll be more confident that your organization is actually doing what you think it’s doing. Second, you’ll identify areas that need attention. Ensuring the integrity of your ship requires you know the condition of the sails no less than the hull. Lastly, it improves performance and morale. If your team knows the work is important enough to be reviewed, it will encourage them and boost performance. Make sure you “catch people doing the right thing” and make a point to celebrate the quiet people who do critical work in the background. Happy reviewing!

 

 


Nathan Mayo
Network Director
Read more from Nathan

 

 

As the holidays approach, many churches and nonprofits run programs to give Christmas gifts to kids in need, and many more partner with existing national programs.

The traditional toy drive is simple. Donors buy gifts and volunteers distribute them. The volunteers either go to the homes of the children or have a day of distribution in a central location. Kids smile, donors feel good … everyone’s better off, right? Unfortunately – it’s not that simple.

 

 

Downsides to the Traditional Approach

Identifying who wants the gifts is simple enough. Requesting the donations is easy and requires very little justification to donors. Distribution is a straightforward logistical puzzle. 

The problems with this approach are below the surface, but critical to understand.

Fikkert and Corbett report in their book When Helping Hurts about a suburban church which attempted to help an urban neighborhood by delivering toys to children’s homes. After a few years, they started to notice that they almost never saw fathers in the home. They discovered that the kids had fathers, but they hid when the suburbanites showed up with gifts. They were ashamed that outsiders were bringing “Christmas joy” to their kids that they were incapable of providing.

As I watched an online video of a toy distribution day, I focused my attention on footage of a family walking in to receive toys. I saw the kids were smiling – but were the parents? In one family, when the father saw the camera – he ducked his head and very conspicuously moved to hide behind his wife. Maybe he was just camera shy – but it looked like he was downright embarrassed to be there. 

His embarrassment makes sense intuitively and in the light of research. In studies of elderly welfare recipients, even former dependence has a negative effect on their sense of self-worth later in life – particularly for men.  Studies from developing countries suggest that these giveaways may also increase children’s sense of dependence. In a large controlled study of a shoe giveaway in El Salvador, one of the strongest (and only) impacts of the program was that children who received the shoes were significantly more likely to agree with the statement that “others should provide for the needs of my family.”

Unfortunately, even though many toy-drive programs have been around for decades, no systematic studies have been done to see whether they have net positive or negative effects. This fact is troublesome when you consider that the largest of these programs have annual incomes over $250 million. Surely, they could set aside a small amount of funding to evaluate whether families who participate in the program are helped in the long run and how the program could be improved. 

Better run programs make more effort to get the parents involved – allowing them to choose the gifts or perhaps include a note to their child. While we appreciate that these approaches are more likely to have positive outcomes, ultimately any program that involves well-meaning strangers handing things to the children of those struggling with poverty has the potential to make parents feel inadequate.

This isn’t to say that no one has ever benefited from these acts of kindness, but there is significant reason to believe people are also harmed. We can do better.

 

Consider an Alternative Approach

The basic objective is to empower the parents to provide their own children with gifts. That lets the parents retain a sense of independence and allows the children to be grateful to their parents rather than strangers. The way to achieve this is simple – give parents a way to earn the gifts and give them to their own children.

The most straightforward way to accomplish this is to simply replace the giveaways with sales at a price the recipients can afford. You can sell donated gifts for a low price (50% off retail is a good rule of thumb) and parents, grandparents, and others come in and buy what they like. If you price and market deliberately, you do not need to restrict the number of toys purchased or require a “proof of poverty” from shoppers. The money you raise from the sale can be directed to buy additional toys for the next year’s program or to some related development-oriented program like employment training.

Robert Lupton, author of Toxic Charity, recounts how his church transformed its giveaway program into a low-cost Christmas market that they called “Pride for Parents.” He recounted that parents were thrilled to find bargains and that “they preferred to purchase toys for their children rather than stand in the free toy lines with their proof of poverty.”

What about parents who are unemployed or can’t afford anything? If it’s a small percentage of your total clients, you can have them work in the market in exchange for a reasonable credit. If many or most of the parents can’t afford to pay or you prefer to avoid collecting money, you can implement a larger scale opportunity to work for credits. Watered Gardens Ministries in Missouri does this for its Christmas market with an upcycling social enterprise. You can also create community service opportunities in exchange for gift credits. One Christmas market in Oklahoma allows clients to earn gifts for their kids by writing Christmas cards and assembling care packages for soldiers overseas. This gives parents an opportunity to participate in giving and earning at the same time.

Of course, it is always best to add a relational element when possible. You can provide a wrapping station where volunteers can wrap gifts alongside parents and engage them on a personal level. You could also provide beverages and snacks. Ideally, your program will also make people aware of other opportunities available to them in the community, such as help with financial management, education, or parenting.

This alternative to the traditional model is not difficult to implement, but it does require a shift in perspective. If we’re serious about empowerment, we must make parents the heroes in their own homes. We may not end up with as many photos of smiling children, but they will still be smiling on Christmas morning – and, this way, the parents will be smiling too.

 

Want to start your own Christmas market? True Charity Network Members have access to all the guidance and tools you need in our Christmas Market Model Action Plan (MAP). Not a member yet? Explore all MAPs here.

 

 

Do you know of a best practice or an interesting model for empowering people during the holidays? Let us know! We want to share it.

 

Please note that external links are shared to be helpful, but we cannot fully endorse views on external sites.

 

 


Nathan Mayo
Network Director
Read more from Nathan

 

 

Feeding the hungry is one of the oldest forms of charity and seems like it should be simple. However, as many know from years of practice, even when food is collected, stored, and distributed efficiently, it still may not reduce dependency or change lives.

The good news is that there are innovative approaches to solve the issues created by the standard hand-out model. Check out the eight food security models below and see which you’re familiar with and which surprise you.

 

 

Organization-Based Approaches

These approaches require active management and staffing by an organization, such as a church or non-profit. These approaches are required when a portion of the target population served is not rooted in a community, such as migrant workers or the homeless.

Controlled Giveaway Models: Whenever something is free, you can be sure that there will be a lot of demand for it. To solve this excess demand for food, the default model is restricting your clients by some attribute, most often income. Many food distribution centers also limit the amount of times their services can be used in each month or year or network digitally with other non-profits using a tool like Charity Tracker to ensure that clients are not using services excessively. The downside of the controlled giveaway model is that it tends to emphasize your client’s problems rather than their assets and abilities.    It also requires walking a fine line between the extremes of making food available with no questions and fostering long-term dependence or “laying down the law” to prevent abuse and creating an adversarial relationship with those you are trying to help.

 

Learn more about function-focused analysis versus dysfunction-focused analysis in the 7 Marks of Effective Charity: Categorization course on True Charity University.

 

Controlled Giveaway with Relationships: This modification of controlled giveaways improves the results, fostering engagement with clients by volunteers and staff on a personal level. This could look like a standard meeting with a caseworker or volunteer to discuss broader needs and track a client’s situation over time. If the meals are served on-site, volunteers and staff might eat with client and intentionally engage them in conversation. The personal connections have the potential to identify and resolve deeper needs

Exchange or “Earn-it” Models: These models ask the clients to contribute something in exchange for what they receive. It also naturally reduces the number of people interested to only those with true need, and it means you can eliminate bureaucratic check-in processes while still knowing that you are helping the right people in the right way. Your staff and volunteers do not need to have adversarial relationships with clients. If clients earn food, they receive it, and there is no reason to begrudge them the fruits of their labor.

Clients can be challenged to participate in the delivery process by sorting donations, cleaning up, or serving food. They can work in a social enterprise that generates revenue for charity, like a thrift shop or upcycling shop, or something that adds value to the community, such as a community clean-up. Alternatively, you can ask clients to participate in something that directly benefits them, like setting (and achieving) personal goals or attending classes, preferably those that require them to complete a growth task, such as a budget or a resume, rather than merely attend.

Organized gleaning Organized Gleaning: Farmers routinely leave 10% or more of usable crops in the fields for technical and market reasons. Farmers will often allow volunteers to harvest those remaining crops for a charitable purpose, like donating to a food pantry. Because the decision is up to the farmer, there is no reason why you could not convince a farmer to allow people from a lower socioeconomic community to pick the remaining crops for their own use or resale, most likely in an organized event, incorporating volunteers as well. This is a great way to literally implement the biblical mandate which required ancient Hebrew farmers to leave some crops in the field for the poor but required the poor to harvest them themselves, rather than having the farmer harvest all of his crops and give the poor a portion (Leviticus 19:9).

 

Learn More: This document helps you organize a volunteer gleaning event.

 

Community-Based Approaches

These models are more labor-intensive to implement but, where possible, they most directly contribute to liberating people from dependency. Many of these models can evolve to the point that they are mostly or fully sustained by their clients.

Bulk Buying Club (Food Co-op): In a bulk buying cooperative, local clients pay regular dues (as low as $5 a week) and their money is compiled to buy food at a bulk discount or from a food bank. A committee of the members run regular meetings and purchase and divide up the food. This approach encourages relationship building, provides a natural avenue for classes on nutrition and cooking, and completely avoids the antagonism of controlled giveaway models. The clients pay the dues, set the rules, build the relationships, and reap the benefits of working together.

 

Learn More: See this description of food co-ops for more detail and the True Charity Network will train you to create a co-op.

 

 

Community Garden: This concept is well-established among hobbyists but also has the potential to be beneficial to people in a poor community. It generates fresh food and relationships, as well as encourages exercise and spending time in green spaces outdoors – all of which are beneficial to mental and physical health. In this model, you work with people in a community to develop their own garden plots in some common piece of land, perhaps owned or leased by a non-profit. You can require either a plot fee, work to be completed in common areas, or both to make the project more sustainable. This model only feeds people when crops are in season but, when coupled with a class on canning and preserving produce, it could provide year-round benefits.

 

<div “>Learn More: A guide to creating a community garden

 

 

Farmer’s Market: There is good evidence that people in low-income communities are willing to buy produce from a farmer’s market – if the food comes to them. You may be able to convince farmers from your local area market to spend a day each month in a low-income community. Alternatively, if you live in a rural area, you may be able to create a farmer’s market that incorporates volunteers or church members willing to sell produce from their own gardens. You could also couple a farmer’s market with a community garden or gleaning for extra impact.

 

 

A New Grocery Store: New evidence suggests that “lack of access” is not a primary driver of food insecurity or unhealthy eating habits. Consequently, merely convincing a grocery store to open within a poor community is unlikely to have a large impact. However, physical store models that involve securing community buy-in, along with education, can have a positive impact on food security and health. There are resources to help you create Food Co-ops, which are different from bulk buying clubs, in that they are physical stores owned by the members of the community. There are a handful of organizations that have created non-profit grocery stores in poor communities, which include an education component, but very few survive.  A more successful concept is a mobile grocery/fresh produce truck that moves its location daily.

(Please note that external links are shared to be helpful, but we cannot fully endorse views on external sites.)

 


Interested in learning more about this empowering alternative to the traditional handout model?  Our Food Co-op Model Action Plan (MAP) provides a detailed explanation of this model along with steps on how to establish a food co-op or transition an existing food pantry to this innovative model     

 

Event Details

Saturday, April 18, 2015
8:30 AM to Noon
Seth Wilson Library on the campus of Ozark Christian College

 

Rudy Carrasco

For more information on Rudy Carrasco & PovertyCure, please visit: www.povertycure.org/voices/rudy-carrasco.

 

What role does business and enterprise have in addressing poverty?

Meet with others from the 4-State area to learn about and discuss the potential that business has in transforming your community and resolving poverty.

8:30 AM: Registration & Refreshments
8:45 AM: Welcome & Opening Prayer (Travis Hurley)
9:00 AM: Context for the Morning and Introduction of Speaker (James Whitford)
9:20 AM: The Role of Business in Poverty Resolution, Pt. 1 (Rudy Carrasco)
10:00 AM: Break
10:15 AM: The Call of the True Charity Initiative (James Whitford)
10:45 AM: The Role of Business in Poverty Resolution, Pt. 2 (Rudy Carrasco)
11:30 AM: Discussion/Q&A
12:00 PM: Dismiss

Enterprising Solutions to Poverty, Video Part I

 

Enterprising Solutions to Poverty, Video Part II