The NonProfit Times - July 1, 2008 - (Page 3)

??????? Editor-in-Chief Paul Clolery ednchief@nptimes.com Senior Editor Mark Hrywna mark@nptimes.com Staff Writer Michele Donohue michele@nptimes.com Contributing Editors Harvey Berger Susan Ellis Tom Gaffny Herschell Gordon Lewis Chip Grizzard Thomas A. McLaughlin Tim Mills-Groninger Jon Van Til Mal Warwick President John D. McIlquham Publisher Willy Morgan willy@nptimes.com Business Manager Barbara Nastasi bizmngr@nptimes.com Production Manager Paul R. Castori production@nptimes.com Webmaster Lisa Marie Pinto webmaster@nptimes.com Advertising Kim Kastner Traffic Manager Kim@nptimes.com Circulation Manager Richard Rukaniec rrukaniec@optonline.net Marketing Manager Sue Juter sue@nptimes.com Account Managers Frank Strazzulla frank@nptimes.com Scott Vail scott@nptimes.com In This Issue SPECIAL REPORT BY MARK HRYWNA July 1, 2008 Vol. 22 No. 13 Giving USA Shows Bequests, Foundations Boosted Otherwise Flat Giving To $306 Billion 19 National Benchmarking BY EUGENE R. TEMPEL AND DEL MARTIN July 1, 2008 BY PAUL CLOLERY The Leading Business Publication For Nonprofit Management • www.nptimes.com • $6.00 U.S. UP FRONT Time To Let Go BY MARK HRYWNA octors can’t write a prescription to treat Founder’s Syndrome, nor are they likely to diagnose it. It’s not visible, like a rash, or something audible like a cough. But nonprofits that have been around for even a relatively short time should be on the lookout for it. Founder’s Syndrome usually occurs when a founder is unwilling to step aside to make a clean break from the organization and the belief that only that person knows what’s best for the nonprofit, according to Linda Crompton, president and CEO of BoardSource, a Washington, D.C.-based nonprofit that publishes guidelines and policies about nonprofit governance and management. It usually occurs after the initial growth of a nonprofit, creating conflict between those who want the organization to adapt and a founder who wants to keep things status quo. Ruth J. Abram founded the Lower East Side Tenement Museum in New York City in 1988 and is undecided about whether she will remain on its board. “It’s kind of her decision and about her time commitment,” said Peter Campanella, a museum board member who co-chaired the search committee Sparks Flying From Blackbaud’s Founders, boards need to work together on transition Bid For Kintera D T Classified Manager Ellen Helms ellen@nptimes.com www.nptjobs.com Corporate John McIlquham President & CEO Paul Clolery Vice President/Editorial Director Willy Morgan Publisher 12 13 15 16 22 Time To Let GO BY MARK HRYWNA Ruth J. Abram, founder of the Lower East Side Tenement Museum, speaks at the museum’s fundraiser earlier this year. to replace Abram with Arnold Kanarick. Abram, who was recently succeeded as president by Morris J.Vogel, could stay on the board in an honorary capacity if she chooses, Campanella said.“How active she wants to be will be up to her, but she doesn’t want to be involved in day-to-day operations.” She still can play a vital role from the standpoint of public relations, communications, and development.“We don’t want to lose that, but we also want to respect her wishes too,” he said. There was a lot of sensitivity among candidates about replacing a founder and board members understood the challenges involved, Campanella said. Some candidates were not interested because they didn’t want to replace a founder, particularly one who was highly regarded in the industry and in Time To Let Go, page 6 he spitting contest between fundraising technology software and service providers is officially engaged. Blackbaud’s offer of $1.12 per share for troubled Software-as-a-Service (SaaS) provider Kintera in San Diego caused varying degrees of hysterical reaction, funny and otherwise, from competitors, users and tech bloggers. The offer for Kintera continues the Charleston, S.C.-based Blackbaud’s ravenous appetite for gobbling up applications and competitors. During the past 18 months, the firm has spent more than $130 million to tighten its grip on the nonprofit software space. The company is expected to close the Kintera deal on or around July 2.The price is $46 million but with net operating loss carry-forwards, the price might be as little as $36 million for a firm with $44.9 million in revenue. The acquisition of Kintera would bolster a major segment of Blackbaud’s product line, the online content management and deployment Sphere® technol- Photo By Lou Manna ogy platform, which has a significant market share. Blackbaud has NetCommunity™, but it hasn’t gained the wide acceptance by users that Kintera and Austin, Texas-based Convio have garnered. FIRST SHOT Convio fired one of the first shots with an email message from Gene Austin, its chief executive officer. “Blackbaud now faces the task of addressing the wellpublicized operational challenges at Kintera, while rationalizing a roadmap that includes multiple eCRM and donor management products from four companies (Blackbaud,Target Analytics, eTapestry and Kintera). It will be interesting to watch this integration play out over the coming quarters and years,” wrote Austin. He was making reference to the fact that although it has approximately 4,000 customers and reported $44.9 million in revenue for 2007, Kintera has never made a profit.Founded in 1999,the company raised $40 million in its July 2003 initial public offering before beginning trading that December. By April 2004, it had reached an all-time high of $17.73 per share. On March 20, it hit a 52-week low of 20 cents per share. “My hope is that this acquisition will convince Blackbaud to listen and respond to the growing deBlackbaud’s Bid, page 7 ADVERTISEMENT Holiday Jeer Mailers preparing now to battle holiday season stad, assistant vice president of direct response operations anta Claus might be the only jolly person this holiday for the New York-headquartered organization. ALA had exseason. Those involved with direct mail fundraising perienced file erosion and decreased donations for several previous years. The ALA’s timecampaigns are feeling honored Christmas Seals tradithe heat this July as they tion helps the campaign and gear up for the holiday mailing more than half of the organizaseason.With an economic downtion’s revenue comes in the turn, last year’s and this year’s year’s fourth quarter. postage hikes and a presidential “Our file was built on Christelection to contend with, direct mas Seals,” said Finstad of the mailers are planning on conservdecorated stamps that celeative campaigns this year. brated the organization’s 100th The American Lung Associayear last year. ALA faced a nearly tion (ALA) had a banner year with holiday mailings during The American Lung Association (ALA) relies on their Christmas 15-year decline in file size, gross 2007, according to Craig FinSeals to renew donors during the holiday season each year. Holiday Jeer, page 8 Sparks Flying From Blackbaud’s Bid For Kintera BY PAUL CLOLERY BY MICHELE DONOHUE S THIS FRONT PAGE NEWS IS FOR YOU We’re increasing your bonus to $50 per active account. Call 1-866-747-7488 or visit www.cardpartner.com Holiday Jeer BY MICHELE DONOHUE Executive Offices Mack-Cali Lake View Plaza 201 Littleton Road, 2nd fl. Morris Plains, NJ 07950 (973) 401-0202 Postmaster Mail address changes to: THE NONPROFIT TIMES PO Box 1145 Bellmawr, NJ 08099-5145 THE NONPROFIT TIMES is published semi-monthly A one-year subscription is $65 US, $89 US Canada and $129 US for international. The NonProfit Times (ISSN 0896-5048) USPS #001-548 is a publication of NPT Publishing Group, Inc. Periodicals postage paid at Morris Plains, NJ and additional entry points. Unsolicited manuscripts are welcome, but The NonProfit Times does not assume responsibility for their return. None will be returned without a self- addressed, stamped envelope. No material in this publication may be photocopied or reproduced in any form whatsoever with out permission of the Publisher. Views expressed by independent columnists or correspondents are theirs and do not necessarily represent the views of NPT Publishing Group, Inc. © 2005 NPT Publishing Group, Inc. 4 Who When Where How What? COLUMNS GENERAL RAMBLINGS The Wrong Arguments BY PAUL CLOLERY STREETSMART NONPROFIT MANAGER Measure The Unmeasurable BY THOMAS A. MCLAUGHLIN NPT WEB-ONLY CONTENT Go to www.nptimes.com to access these Web-only columns. Eleanor Clift Real Volunteers National service is booming and will probably continue to do so no matter who gets elected this fall. TAXING ISSUES Getting Good Advice BY HARVEY BERGER, GREG GOLLER AND WILLIAM WINTER ACCOUNTING We Barely Got To Know You BY HARMON BURSTYN, CPA ON VOLUNTEERS Nothing Is Forever BY SUSAN J. ELLIS Don't Tell The Donor He won't even tell us in advance what he's going to write. And, there's nothing that we can do about it. CONFERENCE COVERAGE Diversified Planet BY MARK HRYWNA 27 28 NPT Jobs Resource Directory Rick Cohen A Metaphor Some folks are pushing the idea of a small business administration for nonprofits. DEPARTMENTS 12 26 JULY 1, 2008 Calendar Business Briefs THE NONPROFIT TIMES www.nptimes.com http://www.nptimes.com http://www.nptjobs.com http://www.cardpartner.com http://www.nptimes.com http://www.nptimes.com

Table of Contents Feed for the Digital Edition of The NonProfit Times - July 1, 2008

The NonProfit Times - July 1, 2008 Time to Let GO Sparks Flying From Blackbaud's Bid For Kintera Holiday Jeer Contents Who...When...Where...How...What? The Wrong Arguments Calendar Measure the Unmeasureable Getting Good Advice We Barely Got to Know You Special Report: Giving USA Shows Bequests, Foundations Boosted Otherwise Flat Giving to 306 Billion Dollars National Benchmarking Nothing Is Forever Diversified Planet Business Briefs NPT Jobs Resource Directory Bridge Map Insert

The NonProfit Times - July 1, 2008

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