We are more than just a pretty face (and cover). Each story details organizations, businesses, and people who are finding unique ways to solve today’s challenges.

Each story in Today’s Giving has a “call to action” for every reader. No matter your profession or passion, we provide ways for you to get involved and with take-a-ways to use in your life.

Loyal readers and supporters wanted! Our readers are engaged citizens and community leaders. They look to our content for advice, nonprofits to support, businesses to patronize, and others to join their network.

Pink is our favorite color. We actually have lots of favorite colors, but we support nonprofits including Susan G. Komen for the Cure, Wellspring for the World, Lewis & Clark Fort Mandan Foundation, Community Violence Intervention Center, Rape & Abuse Crisis Center, and many more.

In every issue experts lend their knowledge from various fields to help you plan your giving, fundraising, leadership, and more!

We are in print and online. There is something about the feel of a magazine in your hands, but you can also get our content on our website, www.todaysgiving.com

By Lisa Jackson, Today’s Giving

The GOD’S CHILD Project is an impressive organization. It is an educational-development nonprofit dedicated to “breaking the chains of poverty through education and formation.” That’s a simple explanation, but fully defining what they do would take writing a small book. Since its founding by Patrick Atkinson in 1991, the organization has grown into more than 17 distinct programs worldwide dedicated to making sustainable and permanent positive changes in education. In Central America, these programs are based out of a six-acre multi-building campus called “The Dreamer Center.” Through clinics, schools, social work, micro-finance, homeless shelters, drug rehabilitation and anti-human trafficking efforts, The GOD’S CHILD Project is able to get to the underlying causes of poverty instead of merely treating the symptoms. And they are doing it well and receiving public accolades.

The GOD’S CHILD Project is dedicated to making sustainable and permanent positive changes in education.

GOD'S CHILD Project founder Patrick Atkinson in San Antonio Agua Caliente

About 5,000 children worldwide at this moment have a chance because of The GOD’S CHILD Project’s work, and it continues to succeed as it has for 20 years. Children who were once homeless and abandoned are now professional adults with families of their own because of the chance that The GOD’S CHILD Project gave them. Although there are programs in cities throughout the United States, the organization is also located in Guatemala, El Salvador, Malawi in Africa, and India. That is one impressive network.

CREATING A GLOBAL NETWORK

In starting and developing an organization which is delivering its mission globally, there are a couple key factors to operational success. The organization’s founder and international executive director Patrick Atkinson is very clear about what has made the organization’s achievements possible.

First and foremost, Atkinson attributes the organization’s greatest operational achievement to the Project’s International Service Experience Program, which he established to help develop groups called “service teams”. These teams from around the country and globe reach out to schools, churches and other service groups. Members of the teams travel as volunteers on their own dime to facilitate the back-breaking work in the areas of need. “Hands down this has made our programs in the Dreamer Center successful both nationally and internationally,” states Atkinson, and he adds, “It is how we create awareness and participation which developed into passion and financial support.”

The greatest contribution of The GOD’S CHILD Project is that it has not only taught people about the world’s poverty, more importantly it has given people the opportunity to be a part of the solution. — North Dakota’s former First Lady, Mikey Hoeven

Once an individual chooses to participate on a mission trip on a service team, he or she spends about $1,000 to travel to areas such as Antigua, Africa, El Salvador and Guatemala. Atkinson noted that he would rather have someone spend $1,000 to work “hands on” with the program than just write a $1,000 check. “Passion is the heart and soul of the organization,” states Atkinson. That passion is best realized in his opinion when volunteers with dirty fingernails and sore muscles go to bed on a cot after having met some of the most amazing and inspiring individuals who need help just to have the basics in life.

North Dakota’s former First Lady, Mikey Hoeven, wife of recently-elected US Congressman John Hoeven, has stated the following multiple times, “The greatest contribution of The GOD’S CHILD Project is that it has not only taught people about the world’s poverty, more importantly it has given people the opportunity to be a part of the solution.”

Today, there are approximately 40-50 service teams working with the organization each year. Each team has an average of 20 individual volunteers. From these teams eventually come even more sponsors and volunteers who stay with the Project for years.

Even though bases of support for the GOD’S CHILD Project and volunteers are springing up across the country and globe, the headquarters remain in Bismarck, N.D., where its founder grew up. Atkinson notes that Bismarck will always be the “crib” of the organization. “It is the heart and soul and embodies the tremendous amount of support we receive throughout the region,” states Atkinson.

Although it can be more time consuming and expensive to travel from North Dakota, Bismarck is a community that provides hundreds of volunteers and supporters that can be called on at any given moment.

RUNNING A SUCCESSFUL ORGANIZATION

Over 1.5 million nonprofit organizations in the United States are evaluating the best ways to continue to raise the funds, market their programs, create greater efficiency and transparency, as well as recruit the best staff and board members. In today’s philanthropic industry it iscrucial to differentiate your organization from others with similar missions, use social marking and new technology, and deal with an ever changing economy.

Atkinson has built his global organization with thousands of time and dollar supporters and managed these challenges well. He shared his thoughts on why they have been successful in starting and then expanding a nonprofit on a large scale. To begin with, The GOD’S CHILD Project implements and standardizes four overarching philosophies:

Everything the organization does goes back to being grounded in these simple, but key philosophies. From there, Atkinson and his staff implement their work through a structure that keeps their mission central to those it helps. It also identifies areas of business operations that allow them to maintain accountability and engage volunteers and donors.

LARGELY DECENTRALIZED OPERATIONS. Each of The GOD’S CHILD Project’s programs is managed and run at its own location, and each has its own board of directors in that area of location that understands the local culture and needs. This allows the staff to do their work without the bureaucracy of a complicated organization. It also prevents staff’s individual interests from becoming barriers to the children being served.

AMAZING STAFF. In addition to holding the absolute highest standards to performance, staff within the organization do much more than what is outlined in their job descriptions. All members of The GOD’S CHILD Project team have a greater understanding of the organization than just their individual roles, and do their best to go the extra mile or have the foresight to solve would be problems before they happen.

MODERN DAY TECHNOLOGY. Using modern day technology as much as possible to run programs is now crucial in creating awareness, recruiting volunteers, raising money and providing other key elements to the

daily operations. In learning how to use social networks as quickly as possible to get The GOD’S CHILD Project’s story out, the organization taps into new “groups” and builds relationship networks faster than ever before—without boundaries.

For example, over 20 universities nationwide have expressed interest in forming “Dream Maker Action Committees”—campus-based groups organized to create social change through social networking, websites, community volunteer efforts, and video conferencing that mobilize people on campus and other groups around the country to learn about social problems, help run fundraisers and recruit volunteers.

TELLING THE STORY. Atkinson, staff and key volunteers are actively pursuing speaking opportunities across the state, country and globe. Atkinson candidly admits that it is easy to think, “I don’t have time for this”—and the unfortunate fact is that these engagements almost always “lose” money in the short term. However, going out and visiting with people one-on-one is the best way to address “Atkinson’s Law”: People want to help, can afford to help in one way or another, but just don’t know how. The GOD’S CHILD Project provides a platform and the direction for volunteers and benefactors to do direct-actional social change.

RECOGNIZING WAYS TO PARTICIPATE. It is important to always recognize people’s talents and appreciate multiple ways they can support the organization. Not everyone can write a check, so The GOD’S CHILD Project identifies people’s strengths—praying, making quilts, serving as board members and teaching.

At the end of the day, growth and expansion is not for everyone. Those who choose to take on the challenge need to be driven by passion and their desire to do good deeds. However, good intentions will not be enough. Atkinson notes that people need to recognize there is a big difference between having a charitable heart and running a charity. Components that make any business successful including the balance sheets, human resources, marketing and public relations, and customers —all are crucial to obtaining respect and efficiency in an organization’s work.

The GOD’S CHILD Project 721 Memorial Highway Bismarck, ND 58502 (701) 255-7956

• www.GodsChild.org
• www.ITEMP.org
• www.CasaJackson.org
• www.Facebook.com/GodsChildProject
• www.Facebook.com/PatrickAtkinson

GCP also does a lot of work in disaster relief. Here is an article from this past year:

www.matadornetwork.com/change/guatemalan-disaster-creates-chaos-and-a-call-to-action

Returned volunteers and Service Team members often write about their experiences in Guatemala.

Here are links to a few:

www.basinelectric.wordpress.com/2010/10/19/basin-electric-employee-builds-home-in-guatemala/

www.nonprofitpress.blogspot.com/2010/12/when-rose-blooms.html

After selling Concord, Inc.—the U.S. leader in Air Seeding equipment—to the Case IH corporation in 1996, Howard and his brother, Brian, formed Amity Technology, which is the leader in North America and Russia in providing harvesting equipment for sugar beets. Amity is also the global leader in soil-sampling equipment sold in more than 25 different countries. Amity Technology has sold over $150 million of product into the former Soviet Union and has assisted many other companies in exporting agricultural equipment. In addition to numerous business-leadership awards, Howard has served on multiple nonprofit boards throughout the years to help shape and guide philanthropy across the region and overseas.

Howard Dahl

My wife and I plan our giving strategy annually in November and December, prioritizing and selecting organizations. We try to give consistently to specific organizations long term, but we do consider several new requests each year. The mission of each organization we support, of course, is important. It needs to align with personal values, and for corporate giving, with our business priorities and values. For example, Amity does a lot of business in Russia, and over the years we’ve become familiar with people and needs there. One of our focuses has been supporting the Russian American Institute, a four-year, post-secondary school in Russia.¹ There are only a handful of people that are providing organizations like the school with long-term support, so we make our giving consistent.

Also, we take a tiered approach. In our personal giving, there are five or six causes that rise to the top, and we give significantly to those organizations consistently year after year. Then there’s what I’ll call a ‘second tier’ group, but we still try to give to that group on an ongoing basis. If we give a one-time gift, we make it clear that’s what it is. Ongoing and consistent support is critical for organizations; it is predictable and it lowers the time and cost, and need, of finding new supporters each year. And it allows us to measure ongoing impact.

Time and influence are also important to consider. For example, there’s an organization called “Young Life” that’s important to us². It’s international, and has a presence in Russia. There’s a new chapter getting started in Standing Rock [Ft. Yates, SD]³. We’ve hosted several fundraising events to help build support for it. Giving time and positive influence can be as important as giving money.

You’ve served on many nonprofit boards, often as chair. What do you see as the most important talents, skills and actions to help organizations fulfill their missions?

Organizations need to make expectations clear to prospective board members up front. It is a misconception that board members can just give wise counsel and not be involved with the fiscal part of the organization. To be effective, they really need to be involved in activities, including development. Board members have to understand that a big part of their job is driving funding and advising on use of funds and on long-term fund management. So it is also important to find board members who understand investing, as well as assisting in the development of new donors. For education and universities, for example, foundations are becoming more and more critical. Investing knowledge is important and so is building what we sometimes call “intergenerational wealth” to make sure the foundation will be there over the years to continue to provide support.

What recommendations do you have for those who wish to approach businesses for money, time or in-kind contributions?

The best development managers focus on building long-term relationships and also on finding people and businesses whose passion matches that of the organization. Cultivate those resources with lots of care to the relationship, and they’ll gradually share and enlarge their vision for the organization. Don’t assume that a business or person is going to instantly understand everything that you do about the organization or cause—patience is a very important part of the development and relationship process.

What do you feel are the smartest decisions you’ve made in respect to giving at both a corporate and personal level?

One of the best decisions we’ve made is to start focusing on giving more significant amounts to fewer organizations, and then making a long-term commitment to help give stability to those organizations. Again, we feel that’s the right way to give to be most effective. The group “Young Life,” that I mentioned… we’ve been supporting it in Russia since 1998. Over that time, it’s done a lot to help children and it’s done significant work with orphans in a number of cities, and made a big difference. We’ve come to know some wonderful young people. The need to assist orphans in Russia and the Ukraine still remains, so our commitment is ongoing. And the organization is here, in our region too, and we’re able to help support and share the vision locally.

Howard A. Dahl, president & CEO of Amity Technologies, LLC – CEO – AGCO-Amity JV, LLC BOARD MEMBERSHIP Board of Directors, Center for Innovation, UND Board of Regents, Russian American Institute, the only Christian Liberal Arts College in Russia Board of Directors, ND Trade Office Board of Advisors, Trinity Forum, Washington, DC Vice Chairman, Board of Regents, Trinity International University Director, Federal Reserve Bank of Minneapolis Former Board President, Fargo- Moorhead Symphony Orchestra Former Chair and Board Member, ND Council for the Arts Former President and Board Member, UND Foundation AWARDS Fargo-Moorhead Small Businessman of the Year, 1993 ND Exporter of the Year, 1994 ND Innovator of the Year, 1997 (UND Center for Innovation) ND Agricultural Person of the Year, 2004 Fargo-Moorhead Business of the Year, 2005 First North Dakota company to be the SBA Region VII Exporter of the Year, 2006 Honorary Doctorate, UND, 2010 Sioux Award, University of North Dakota, 2010

What advice do you have for other business owners regarding charitable contributions?

Be personally involved for those you give to significantly. Consider being a board member, or least attend enough activities and be involved so that you can get to know the organization well, and its operations and needs. You can add tremendous value by lending time as well as money. Again, closely related to that, is the influence you can provide in the community to help the organization.

Footnotes:

1 For information about the Russia American Institute visit www.racu.org

2 See www.younglife.org

3 See www.younglife.org

At the height of the bicentennial commemoration of the Lewis & Clark Expedition, over 50,000 visitors a year were streaming through Washburn’s Lewis & Clark Interpretive Center and Fort Mandan. The Lewis & Clark Fort Mandan Foundation, which maintains both historic attractions, was enjoying enormous national, even international, media attention. Visitors were coming from all 50 states and as many foreign countries.

Ubl Design Group, Architects

Before the closing bicentennial events in 2006, the Foundation’s board and management was asking hard questions of itself. Could these visitation levels be sustained? Could the remarkable combination of media attention and donor generosity continue?

Before the effects of the bicentennial’s ending could be determined, gasoline prices suddenly spiraled upward, putting a dampener on “over the road” tourism all across the country. Historic attractions, in particular, were adversely impacted. Visitation to Washburn, while still excellent for a historic site, dropped to 25,000 per year.

At a board retreat in 2007, the future of the Foundation and its sites were contemplated. Three possibilities were presented:

1. “Managed” decline (leading to eventual demise)
2. Status quo, trying to get by for now
3. Serious expansion of the Foundation’s mission

Without hesitation, the board was unanimous in its choice of the third option. Within a year, the Foundation announced the formation of The Dakota Institute, led by humanities scholar Clay Jenkinson. Book publishing, documentary films and symposia were to be the three primary functions of this new Institute, along with production and distribution of Jenkinson’s popular public radio program “The Thomas Jefferson Hour.”

Now approaching in its third year the Institute has already established itself as among America’s leading historical institutions, ensconced within the Lewis & Clark Fort Mandan Foundation. Since its launch, the Institute’s accomplishments are noteworthy:

Staging four symposia, two on the 175th anniversary of the Maximilian/ Bodmer Expedition of 1833-34, and one on broadcast legend North Dakota native Eric Sevareid, and another on the 10th Anniversary of 9/11.

Releasing of two documentary films, the national award-winning “When the Landscape is Quiet Again: The Legacy of Art Link,” and “The Charisma of Competence: The Achievement of William Guy.”

Production begun on two more films, one focusing on the Schafer family and another on Sevareid.

Establishment of a marketing and distribution agreement with the University of Oklahoma Press and the release of the first book from The Dakota Institute Press “River of Promise: Lewis and Clark on the Columbia.”

Listeners to “The Thomas Jefferson Hour” eclipsing the one million mark, thanks largely to internet downloads of the program. “Our Institute’s success is gratifying for so many reasons,” said President David Borlaug. “And it’s important to note that this success does not come at the expense of our core institutional strengths – Fort Mandan and the Lewis & Clark Interpretive Center – which are now seeing solid growth in visitation,” he adds.

In fact, with the support of a $1.5 million grant from the North Dakota Legislature, the Foundation is in the midst of an ambitious $6 million capital campaign. The funds will be used primarily for a $4.2 million expansion and exhibit makeover at the Center and enhancements to the Foundation’s endowment trust.

Over $2 million has been raised privately to match the state funding, bringing the campaign to the halfway mark as it now begins to become more public, according to Borlaug. “We are just now reaching out more broadly to individuals, companies and associations, to join with us on this grand venture,” says Borlaug. “Exhibit and gallery sponsorships are available for donors to consider, along with more nominal levels of support,” he adds.

Taking advantage of a world-class collection of Lewis & Clark era artifacts recently acquired by the Foundation, all of the Interpretive Center’s exhibits will eventually be remade in an exciting, interactive way, says Foundation Vice President Wendy Spencer, who is overseeing the capital project. “Visitors will not only see incredible artifacts, they will also learn things about Lewis and Clark and our Native Peoples that they couldn’t have imagined,” she says. “Interactive digital technology will be put to use in a very creative way, creating a world-class interpretive environment,” Spencer adds.

An expansion of the theme of discovery has been underway at the Center for several years, and will now be enhanced with the makeover, according to Visitors will not only see incredible artifacts, they will also learn things about Lewis and Clark and our Native Peoples that they couldn’t have imagined. – Wendy Spencer, Foundation Vice President Spencer. “We are taking ‘Our First Farmers’ to a new level of interpretation by adding the North Dakota Centennial Farms exhibit in a new gallery.” The Foundation recently assumed responsibility for this program from the North Dakota Agriculture Department, which honors North Dakota farms that have remained with the same family for 100 years.

A 9,000 square foot expansion of the Center will provide a 175-seat events center with panoramic views of the Big Bend of the Missouri River; a multi media production studio; and a rare book/resource library, according to Spencer.

The project’s architect is Jeff Ubl of Ubl Design Group, Bismarck. The general contractor is Missouri River Contracting, Bismarck. Exhibits are being developed in consultation with the Foundation’s staff by Taylor Design Studios of Chicago. Spencer expects the addition and exhibit installation to all be completed by March of next year.

“All of our Foundation’s accomplishments would not be possible without the continued support of our members and donors,” stresses Borlaug. “Now, as we launch ourselves into an exciting new phase, we welcome the support of those who share our vision,” he adds.

Five years after its board contemplated what sort of future was in store for this foundation, located in a small town with a big heritage—in a sparsely-settled state with a fascinating multi cultural history—things could hardly appear brighter. “Arts and culture are alive and well on the northern prairie,” says Borlaug.

Changing Conditions Exacerbate Core Causes

Mental illness, substance abuse, domestic violence and poverty have long been at the core of homelessness in America, and attitudes against these issues are difficult to overcome. Traditional municipal laws against behaviors such as loitering, sleeping in public places, and “begging” tend to punish and amplify stigmas attached to homelessness. In addition, a widely-held stereotype of a

U.S. homeless person as a single male adult with substance abuse or mental illness raises an obstacle to awareness of the reality: roughly a third of today’s U.S. homeless are families, often with a single female parent.

Native Americans, new Americans, minorities and U.S. military veterans also make up an in-proportionate percentage of today’s homeless in North Dakota and western Minnesota.

While the underlying causes of homelessness remain consistent, it’s important to remember that environmental, economical and political conditions can not only aggravate but even produce the core causes. For example, an economic recession resulting in loss of work can quickly bring a family to poverty. Seemingly endless mitigating factors accelerate deteriorating conditions: A smaller food budget usually means less healthy food, which in turn can result in ill health and high health care bills. In addition to a lower income, job loss can cause depression and stress, often directly resulting in an increase in domestic violence and/or substance abuse.

Carla Solem, West Central Minnesota Continuum of Care Coordinator, says there’s also been a recent increase in young adults who are homeless. While the cause for that rise is not yet documented, she suspects it’s also driven by the states’ down economy. “Parents can’t afford to help out young adults with housing and other costs as much as they have in the past,” she said.

But the most surprising cause-and-effect circumstance is currently driving a major homelessness situation in western North Dakota: a booming economy driven by the oil industry.

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violence exceeds $5.8 billion each year, $4.1 billion of which is for direct medical and mental health services.3

Breaking the Cycle with New Choices

Victim intervention remains the overwhelming priority at most agencies addressing the issue of domestic violence. But for Kristi Hall-Jiran, executive director of Grand Fork’s Community Violence Intervention Center (CVIC), there is a very important second step in the fight against abuse: prevention. “We realized that it’s going to take a lot more than intervention services if we really want to end the violence. We need to begin to address it at the source,” Hall-Jiran says.

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1.      INVESTMENT

Previous acts held directors of nonprofits to nominal investment standards but recognized that the organizations were charities and not for-profit businesses. Under UPMIFA, directors, board members, and managers will be held to the higher standard of “reasonable care,” which calls for more skill and caution in handling investments. The Act lists several guidance factors which charities must follow in investment decisions and investment tracking in order to comply with the Act. Charities should consider a written investment policy to outline processes by which investments are chosen, diversified or changed. To curb liability, corporations may outsource investment services, so long as they regularly review the investment strategy and portfolio, and do not pay excessive fees for the service.

UPMIFA makes certain duties mandatory, including investment “care” by directors, board members, and managers of the institution. Under this concept, donor intent expressed in a written gift must be followed when investing those funds. For example, if a gift is received with donor instructions that 50% of the funds be held in an account not to exceed a risk ratio of a specific rate, then the investment of those funds must follow the specifications.

The duty of care implies acting in good faith. It requires that investment decisions be made, “with the care an ordinarily prudent person in a like position would exercise under similar circumstances.” A manager should ask, for example, “Would society measure this choice as a legally and morally correct investment given this set of circumstances that includes the mission of my organization?” Another example: Consider a board member who is a lawyer and sees a legal issue involving an investment strategy. That lawyer has the duty to beneficiaries of the corporation to bring that issue to light.

In choosing whether to acquire or retain an asset, an institution should consider its mission, current programming, and desire to cultivate additional donations, in addition to factors that are more directly related to an asset’s potential as an investment. This leads to the final duty worth mentioning: disposal of unsuitable assets. The Act includes a duty to review the suitability of retaining property contributed to the institution within a reasonable period of time after the institution receives the property. However, this merely requires a decision, not a specific outcome, such as sale.

Institutions are encouraged to question whether retaining an unsuitable asset will help engage a donor to give again when making these decisions. What might be considered prudent spending or investment practices for a for-profit corporation is not always prudent for a nonprofit corporation.

All the duties and provisions of the Act apply to all funds held by an institution, “regardless of whether the institution obtained the funds by gift or otherwise and regardless of whether the funds are restricted.”

The remaining sections of the Act only apply to endowed funds that are restricted through a gift, which makes this provision applicable to all charities in North Dakota—even the smallest who typically do not have endowment funds.

2.      SPENDING

The clearest difference between spending under UMIFA Uniform management of Institutional Funds Act and UPMIFA is that UPMIFA disregards the historic dollar value (HDV) provision of UMIFA. UMIFA permitted expenditure of appreciation and income, rather than income only, but did not permit institutions to spend endowment funds below HDV. However, this often becomes impractical or arguably imprudent, because HDV fixes valuation at an arbitrary point in time. HDV may become meaningless over time and may therefore become an inadequate protection for the fund if organizations have any incentive to maximize allowable spending. Additionally, if the value of an endowment fund drops below HDV, there is no clear answer in UMIFA on how to deal with an “underwater fund.” UPMIFA allows for “prudent” expenditures even on underwater funds, because an institution can spend or accumulate as much of an endowment fund as the institution determines is prudent for the “uses, benefits, purposes, and duration for which the endowment fund is established.”

The prudence standard under spending outlines several factors that board members, trustees, directors and managers should consider in making decisions on expenditures. These factors emphasize the importance of donor intent, as expressed in a gift instrument. Consideration of the factors requires attention to the purposes of the institution and the endowment fund, economic conditions, and present and reasonably anticipated resources of the institution. A donor may provide specific instructions as to the appropriate uses for contributed assets. Fiduciaries addressed in the section on investment have the same mandatory duties for protecting donor intent in regards to spending of endowed assets. It is again recommended that an institution design a written spending policy. Additionally, it is recommended that institutions design written gift acceptance policies to inform donors about how their contribution will be invested and spent.

North Dakota chose to adopt the rebuttable presumption of imprudence clause. This clause allows the attorney general to investigate or make claims of imprudence against any organization that spends more than seven percent of the fair market value of the fund. While it may be prudent to spend more than 7%, this provision eliminates concern about excessive expenditure. Prudent spending and investment are two areas of UPMIFA that have been updated to include special duties and liabilities of directors, managers, board members, and trustees of nonprofit institutions. This is simply permitting release of a restriction on an endowment fund, if a donor is able and willing to consent. Consent needs to be in writing. This situation might arise when the original idea for the fund hasn’t really caught on and its having a hard time getting to a minimum investment amount (for example, $10,000 for an endowed, named scholarship). Another pertinent portion of the Act is on modification of endowment funds.

3.      MODIFICATION

While an institution can pool endowment funds for purposes of modification, they must all be maintained and questioned separately. There are typically three ways to modify an endowment fund, and one new way for institutions to modify certain types of funds without going through the expense of Cypres or deviation. It is in all of the citations Brianna makes of it below) in the courts system.

The first way of modifying an endowment fund is through donor release. Donor release permits the release of a restriction on a gift if the donor consents. Release cannot change the beneficiary of the fund and a donor cannot direct the property to another use by the charity because the donor has not retained an interest in the fund. For tax and all other intensive purposes, this section does not create a power in the donor.

Another way of modifying an endowment fund is through deviation. Deviation may become necessary where unanticipated circumstances arise because of a restriction included in the original donation or when a restriction impairs the management or investment of the fund. Modification of the restriction usually helps and permits the institution to carry out the donor’s purposes in a more effective manner. Typically, a court will modify restrictions based on the way an institution manages or administers a fund in a manner that furthers the purposes of the fund. This process implements donor intent. The purpose of the gift is upheld, but deviation changes the process by which a donor had intended that to happen.

Another means of modifying an endowment fund is by Cy Pres. This tool authorizes a court to modify the purpose of the institutional fund, but is only applicable if the restriction in question has become unlawful, impracticable, impossible to achieve, or wasteful. One of these terms must be proven because this is such a broad power that allows courts to release, change the restriction, or permit the fund to be paid out to another institution. When considering Cy Pres, an institution should remember the costs of attorney and court fees and the fact that courts will not change donor intent without sufficient facts to support that the restrictions are ‘wasteful’ and must have some evidence of what the donor intended. UPMIFA makes this a little easier for judges because it hints that wasteful funds are undesirable for institutions and do not provide for beneficiaries, which is subjectively what every donor intends.

A final way for an institution to release or modify a restriction is according to Cy Pres principals but without court approval if the amount of the institutional fund is small and has been in existence for a long time. These funds must have been in existence for more than twenty years and have a total value of less than $25,000. The purpose of this provision is to balance the needs of an institution to serve its charitable purposes efficiently with the policy of enforcing donor intent. A nonprofit must change the restriction in a manner that is in keeping with the intent of the donor and purpose of the fund. The institution must notify the attorney general of the planned modification and wait 60 days before proceeding. The attorney general has this time to take action if the proposal seems inappropriate.

The three main provisions of UPMIFA are investment, spending, and modification of funds. In many ways the Act allows nonprofit institutions to “think big” or rather, encourages understanding about what the organization really needs and thinking about the best way to get there. In many ways it is also requiring more sophistication from nonprofits by providing a more specific framework for nonprofits to consider when accepting gifts, spending funds, and investing funds. In the end, complying with suggestions of the act to create policies in these areas and then properly considering those policies when making decisions should actually benefit the organization, its clients, and its donors.

Brianna McAleer is a Moorhead, MN native who has successful work, education and volunteer experience in the nonprofit sector. She received her B.A. in Economics from The Colorado College, Colorado Springs, CO and is currently attending the University of North Dakota, School of Law. She is serving as a member and president of the Public Interest Law Student Association, co-chair to the Volunteer Income Tax Assistance program and Associate Editor of the North Dakota Law Review. During the summer of 2009, Brianna received a Public Interest Grant from the State Bar Association of North Dakota to research legislation involving the development of non-profit law.

“Askers”: Tips for Fundraising

1. The biggest problem in fundraising isn’t getting others to give; it’s getting people to ask others to give. So, figure out what is holding you back from making the “ask.”  Why are you hesitant? Is it that you don’t know enough about the donor?  Not sure about the amount?  Is it the wrong time?  Make a list of what you need to know prior to a solicitation and then meet with your contact until all of your questions are answered.
2. Get your board on board. There is no way around it; to be successful the board must fundraise. Although everyone on the board doesn’t need to do the asking, they should be prepared to provide ideas for new contributors, use their networks to promote the organization and find the best ways to improve stewardship and thank supporters.
3. Don’t assume if a prospective contributor is wealthy that she or he will automatically contribute to your cause. When a major donor is announced in the media, do immediately think, “How can I get this person to support us? Our cause is just as worthy.” Just because an individual is wealthy and even philanthropic doesn’t automatically mean he or she will give to your cause. Focus on strengthening relationships with your own top donors, rather than attempting to convert another group’s major donors.
4. Short-term gain can be long-term detriment. Emergency appeals might work once, but could affect contributors’ long-term confidence in your organization. Focus on building a reputation that is strong and viable. Recruiting highly-regarded board members and staff and consistently focusing on your organization’s mission will ultimately work better than scare tactics.
5. People always give to people. This isn’t the first or last time you will hear this sentiment, but it’s true. However, it’s difficult to keep this in mind while tackling day-to-day activities.
6. New legislation is being passed to protect donors and oversee fundraising activities. Become familiar with current or pending laws that affect how donors give and how nonprofits need to comply with new rules (see “North Dakota Promotes Philanthropy Through Legislation” in the winter issue of Today’s Giving).
7. Recent trends show that individual donors are giving more money, but to fewer organizations. Work on building stronger relationships with your donors to ensure their gifts.
8. People give to organizations with missions that are important to them personally. How will people evaluate your organization prior to making a gift? Assess your organization honestly and ask “What would inspire funders to support us? How will giving to us solve problems and improve lives?”
9. Many political, economic and technological changes are forever changing the fundraising landscape. Even the fact that we are living longer can influence prospective supporters’ desire to hold on to their money. Donors are looking more for sincere messages that solve problems versus flashy appeals.
10. Although most fundraisers and nonprofits are prudent and fiscally responsible, the public is often dubious about the perceived “costs” of fundraising. In addition, the media is always on the lookout for the next injustice of donor’s funds. Be sure you can simplify and quickly outline your administration costs and fundraising support.

“Givers”: Tips for Giving This Holiday Season

During the holiday season, many of us reflect on our good fortunes and try to help others in need. But to receive charitable tax deductions for the 2010 fiscal year, gifts must be given or postmarked by December 31^st. Here are a few tips to help guide the decision making process.

1. Create a charitable budget for you and your family. Consider how much you gave this year and are willing to contribute next year. The process should include the family. Don’t over or under spend.
2. Research your giving. It will mean more to you and the organizations that you support if you make an engaged decisions about how to spend your charitable dollars. You wouldn’t buy stock in a company before reviewing their portfolio. The same goes for giving to nonprofits. If tax deductions are important, be sure to support charities with 501(c)3 status. Focus on the mission, operating costs, and outcomes of organizations you are considering supporting. Does their mission match your values? Visit www.charitynavigator.org to find the most efficient charities, including those that spend at least 75 percent of their budgets on programs and services and spend only a small percent on administrative and fundraising costs. Investigate each charity’s outcomes. Check on as each organization’s business practices such as their record of meeting goals, ethical behavior, and so on.
3. Try selecting fewer organizations to support. Focusing on two or three groups can help you have a greater impact on the affect of your contributions. For example, if you give $25 to 10 charities and the average charity spends about $10 to process and fundraise for every gift it receives, $100 (or 40 percent) of the $250 you’d give goes to processing costs. By giving $125 to only two charities you are only spending $20 on administration (or 10 percent).
4. Know current IRS regulations on charitable giving. Rules change from year to year and may influence your decision on making a gift now or waiting until next year. For example, income tax rates are scheduled to go up in 2011, topping out at 39.6 percent with the capital gains tax rate rising from 15 percent to 20 percent. Ordinarily, taxpayers save more from charitable contributions when tax rates are high but that may not be the case after 2010, if certain itemized deduction cutback proposals become law. Visit www.irs.gov for more information. (See also: “North Dakota Promotes Philanthropy Through Legislation” in the winter issue of Today’s Giving)
5. Timing is everything when making large or non-cash gifts. If you are considering gifting non-cash assets such as mineral rights or real estate—or if you have been considering a life-income gift such as gift annuities or charitable trusts— be sure to allow sufficient time to meet with advisors, your family and the charities you wish to support. These types of transitions need to be reviewed carefully.
6. Talk to tax and financial advisors before making any significant gifts. They will help you understand the effects your gift may have on your income, tax and estate plans.
7. Take the time to plan and calculate your income. Your giving decisions might be affected by your tax liabilities for the year. Will you owe more in taxes this year due to an unexpected leap in income?  Did you sell any appreciated assets that will affect your capital gains tax?  Did your unearned income increase?
8. Clothing and household items. To be deductible, these items must be in “good used condition or better.” If the amount being claimed for a single item is over $500 and there is a qualified appraisal, then this standard does not apply. You’ll also need to get a receipt that includes the nonprofit’s name, the date of the contribution, and a written description of the donated property (but not its value).
9. Monetary donations. Under relatively new rules, donors must have a written record for all cash donations—no matter how small. For donations under $250, donors can use a bank record (such as a cancelled check or credit card statement) or a written communication from the receiving group. For example, if you hold an event and pass the hat, donors who make cash donations won’t be able to claim a deduction.
10. Bonus Tip: Add “gift cards” to your shopping list. Instead of buying all of your holiday gifts at the shopping mall, you can actually stretch your dollars by purchasing a gift card to support your favorite nonprofit. Not only will your money help support trustworthy charitable organizations, you’ll double cross items off your shopping list.

By Lisa Jackson, Today’s Giving

Tax Credits for Planned Gifts

A planned giving tax credit, originally enacted in 2005 and enhanced in 2007, allows individual tax filers to claim up to a $10,000 credit and joint tax filers up to a $20,000 credit for planned gifts made to qualifying North Dakota nonprofit organizations. The amount of the credit is computed at 40% of the federal deduction created by the gift. The credit may be claimed in the year of the gift, plus a carry-forward period of three years. Eligible planned gifts include: various types of charitable trusts, current and deferred charitable gift annuities, certain paid-up life insurance policies, pooled income fund trusts, and charitable life estate agreements.

Endowment Credit Aimed at North Dakota “Business Entities,” Estates and Trusts

In an effort to encourage greater giving to endowment funds held by North Dakota nonprofits, in 2007 the state legislature enacted a new credit for business gifts to qualifying endowment funds. The law allows eligible entities to qualify for a 40% state income tax credit up to $10,000 annually. Thus, eligible gifts up to $25,000 will bring about the maximum credit. Eligible entities under the law include C corporations and pass-through entities such as S corporations, partnerships, and limited liability companies (LLCs). Trusts and estates filing an income tax return are also eligible. Currently, banks are not eligible for this credit since they are taxed under a separate section of the North Dakota Century Code.

Multiple Gift Opportunity

The $10,000 annual maximum tax credit for endowment gifts is determined at the entity level, therefore an individual owning an interest in multiple “pass-through” entities may exceed the $10,000 limit on their individual return. For example, an owner of four eligible entities may make four separate $25,000 endowment gifts (one from each entity) for total gifts of $100,000, deriving a total North Dakota income tax credit of $40,000 which is available in the year of the gift plus three (3) carry forward years. As can be seen in this example, the law allows for some very significant gift and tax planning considerations.

Readying Nonprofits to Accept Qualifying Endowment Gifts

Though many nonprofit organizations operate quite well without the presence of an endowment fund, the formation of a “qualifying” endowment by definition under the North Dakota tax credit for endowments may give an organization’s supporters access to the tax incentives that may ultimately encourage them towards greater and more frequent giving. Craig Johnson, CFRE; CPA of Fargo, was directly involved in drafting and promoting both the planned-giving tax credit legislation in 2005 and the endowment credit bill in 2007. He and Fargo attorney Richard Anderson have prepared model documents to assist their clients in establishing a qualifying endowment. Johnson advises nonprofits to work with professional counsel so that the fund’s governing documents allow it to qualify as a “permanent, irrevocable fund” as required by this law. Anderson further stresses the importance of defining the fund as a true endowment, adding, “be certain that your fund is a ‘true endowment’ rather than a ‘quasi-endowment’ fund. Clarifying the true nature of your fund will avoid instances of disqualified contributions. It protects your donor’s interests which is critical in any donor/beneficiary relationship.” A true endowment is one that allows only the endowment’s earnings to be spent and does not allow for invasion of principal; except in extreme situations.

Enhancements Proposed for Endowment Credit

There is a movement underway to amend the endowment credit law to expand participation to include financial institutions and individuals. The issue will be taken up during the 2011 legislative session. Financial institutions— which are not eligible under the current law though historically have been incredibly socially conscious and philanthropic leaders of their respective communities— are taxed under a separate provision of the N.D. Century Code and were therefore originally excluded. Changes being proposed for legislative consideration would extend to financial institutions the same provisions as other eligible business entities, though it would be addressed specifically in the Code pertaining to bank taxation. Provisions that would allow individuals to partake of the endowment tax credit are still being finalized, however would most likely include a minimum annual aggregate contribution to claim the credit. For instance, an individual who contributes a minimum of $5,000 to one nonprofit’s qualifying endowment fund would be eligible for the 40% ($2,000) credit. The gifts could be made in increments, ($1,000 x 5) as long as the aggregate equals or exceeds $5,000. The annual maximum credit for individual tax filers would likely be $10,000, making the optimal aggregate gift $25,000 which is the same for the business entity credit.

Experts Weigh In

Johnson is not discouraged by the statistics reflecting a slow, steady upswing in use of the credits, but believes it will take time until these opportunities become part of the culture of North Dakota giving. “I believe steps are being taken to promote the benefits of the income tax credits through articles and seminars,” states Johnson. “the more nonprofits are prepared to accept gifts qualifying for the planned gift and endowment credit, the more their donors will benefit.”

Dana Schaar, Executive Director of the North Dakota Association of Nonprofit Organizations (NDANO) echoes Johnson’s sentiments saying, “Expanded educational efforts to increase knowledge of the endowment credit are vital, particularly for nonprofits and financial planners. NDANO is committed to helping nonprofits learn more about these tax credits and how they can use the incentives to increase planned and endowment gifts to provide long-term support for their work.” Both agree that the discussion must begin through informed nonprofits and advise nonprofit executives to routinely meet with their donors and the professional advisor community about the benefits of any new or existing charitable tax laws.

Gordon Binek of Bismarck State College Foundation believes the enhancements to the endowment credit law will help attract more use. “It will create a greater awareness of endowment funds operated by charities. North Dakotans are very practical people when we have the opportunity to reduce our cost of a gift to a favorite charity we’re going to take advantage of the benefit,” declares Binek, who is supportive of the effort to include individual donors in the endowment credit. Allowing individual donors to participate has concerned some nonprofits who believe it will force their donors to make a choice between a gift to the annual fund for immediate needs, and a gift to the endowment where the greatest tax benefit lies. They have suggested higher minimum contributions to qualify for the credit so as to not affect annual gifts. Binek weighs in on the concern advising, “Some [donors] may alternate their annual support of charities to take advantage of the credit. Charities will need to recognize that they may not receive another gift from that donor for two or three years. Eventually, the endowment fund will grow enough to generate annual distributions which help support the charity.”

More discussion on the enhancements will likely ensue as the bill winds its way through the legislative process. The issues surrounding the unique taxation of financial institutions will undoubtedly be discussed, as will the aggregate minimum contribution from individuals. Regardless of the specifics in the final draft, North Dakota will continue to be a national leader in creating incentives for charitable giving. The state’s donors, nonprofits, and those benefitting from their generosity and mission can be grateful for the insight shown by our legislators.

To track the progress of the bill, visit the North Dakota Legislature website: www.legis.nd.gov or the NDANO website: www.ndano.org.

By Shannon Schweigert, Today’s Giving

Last year at the Fargodome’s annual sportsman show, while my husband was enviously eyeing new boats and hunting trips to far-off places, we stumbled along an intriguing booth for “The Outdoor Adventure Foundation Inc.” Being involved with philanthropy in the state for years and having a family of avid sportsman I was surprised to not know about this organization. I also assumed that in a state known for hunting and the outdoors, we would have nonprofit efforts geared to helping those that may not have the opportunity to enjoy these activities. Not so.

Recently, I sat down with Brian Solum, founder and president of the Outdoor Adventure Foundation’s, to hear more about their efforts and why what they are doing is so unique. I was impressed by everything he has accomplished thus far. He has started a new nonprofit organization, was applying for grants, planning annual events and opening new chapters for the foundation across the country. In addition to North Dakota, the organization is now in Texas, Washington, and Iowa, with dozens more states lining up. Solum gave me the impression he was a seasoned veteran of the fundraising world, with experience of running a nonprofit for years. When I asked him when organization was incorporated, Solum replied, “It’s been just over…a year. May of 2009.” Wow—impressive.

The first organization of its kind in the region, The Outdoor Adventure Foundation, Inc. has grown significantly in the last year with support from national hunting personalities, companies and television shows. As a business owner and entrepreneur for his “day” job, Solum follows business practices that are important regardless of the industry – identifying your market, networking, collaborating, and having passion for your goals.

A few learning and collaboration milestones along the way helped the organization get off the ground. Previously, Solum was an ambassador for The Hunt of a Life Time Foundation, a national organization based in Harborcreek, P.A., working both for the national and North Dakota chapters.

“Their mission was great, but the organization wasn’t run very well,” said Solum. He was frustrated because of three hang-ups: Only a small portion of the funds raised locally would be used for hunts within the state; it was very difficult to fulfill a dream hunt for kids locally; and communication channels were disjointed. Soon a committee of 15 people was formed to discuss how to keep the good intentions of The Hunt of a Life Time Foundation, but provide local hunts for more people.

The committee expanded the age of participation in youth activities to 25 and also added opportunities for veterans. Now the majority of funds raised by each chapter stay with that chapter, which is responsible for managing hunts and selecting recipients. The chapters now have the control to use their own networks for fundraising, reaching out to youth and veterans and connecting with outfitters, landowners, and sponsors.

In North Dakota, collaboration includes businesses like Gate City Bank and Scheels, associations like Pheasant Forever, Cass County Wildlife Club, and others groups like the Cedar Ridge Elk Ranch and the North Dakota Game & Fish Department.

The organization has tremendous momentum and buy-in from hunting celebrities and national businesses, helping make the organization financially viable.

Mike Feener, North Dakota Director of Disabled Veterans, has been working with the foundation since its inception and initially contacted Keith Mark, who owns and operates MacMillan River Adventures Outfitters in the Yukon Territory, Canada and is a host of the MacMillian River Adventures show on the Outdoor Channel. As a national television figure, Mark is contacted almost daily about helping organizations, but Freener’s request for The Outdoor Adventure Foundation, Inc. struck a chord.

“The mission statement is awesome, I’ve never been around such good folks and it was apparent from day one that their hearts where in the right place,” said Mark. The board invited Mark to their annual fundraising banquet to show him more. Mark is now the national director of the foundation and it’s his personal mission to work on behalf of the foundation and get his contacts such as World Wrestling Entertainment, Inc. wrestler Shawn Michaels, performer Ted Nugent, hunting show hosts Lee & Tiffany, and other hunting celebrities to help raise funds for the organization. Mark said, “My goal is to raise,—well, I’m not going to tell you, because it’s a lot. But I will continue to do hunts for the show. I’m creating a DVD that will promote and raise funds.”

Hunting can be controversial for some, but according to Mark, there are four big reasons why this particular organization is important. “A child you have taken on an adventure may pass away. That part of it is very tough, but to have those memories and know that you were part of helping someone deal with their fight is worth it. I get more out than I put in.” In addition, Mark believes this type of organization helps communities rally together, puts people in touch with their own humanity, and offers a gut check about personal faith and luck.

So what does the future hold? Solum and the board’s vision is to expand to all of the states and eventually have opportunities for every applicant. Currently, Solum is still doing 80% of the fundraising and donates much of his time and the office space to make things work.

This story is just one example of how individuals with passion help others who, because of illness or other circumstances, don’t have the same opportunities. Working within their network of hunters and sporting associations, the leaders of The Outdoor Adventure Foundation, Inc.  have created a very successful venture in a short time. Their biggest supporters are those who love the outdoors, appreciate the sport of hunting, and believe in land stewardship.

By Lisa Jackson, Today’s Giving