The NonProfit Times - November 1, 2008 - (Page 26)

THE 2008 NPT TOP 100 Groups Shaving Expenses With An Eye Toward ROI BY MARK HRYWNA AND CRAIG CAUSER undraising expenses, while up for most nonprofits in this year’s NPT 100, were generally not setting off alarms or calls for a freeze on spending. Expenses increased for a majority of organizations in the study, but taken as a whole, expenses rose rather modestly, by less than 1 percent (0.48) for the 100 nonprofits. “We’re not seeing significant changes F in overall program as a percentage of total or fundraising expenses. On an overall basis, things seem to be pretty solid from that side,” said Frank Kurre, managing partner, national nonprofit practice, at Grant Thornton LLP, which helps to compile and analyze the financial data for this report. Nonprofits in this year’s NPT 100 had aggregate total expenses of $53.19 billion. The majority of that, $45.89 billion, was classified as program expense, for a ratio of better than 86 percent. Some $2.57 billion (4.8 percent) was reportedly spent on fundraising. Almost 9 percent, $4.72 billion, reportedly went for administrative expenses. Nearly all nonprofits in the study had program expenses account for at least 75 percent of their overall expenses. Only six did not: the fledgling National Sept. 11 Memorial & Museum (87), 44 percent; ALSAC/St. Jude Children’s Research Hospital (22), 69 percent;American Cancer Society (9), 70 percent; Trinity Christian WHAT SENDS YOU OVER THE EDGE? Broadcasting Network (85), 72 percent; Leukemia & Lymphoma Society (57), 73 percent, and American Diabetes Association (69), 74 percent. Direct mail is still strong, Kurre added, especially when charities have a core group that continues to put a check in the mail each month.“Those will, for the most part, keep doing it because it’s part of their budget,” he said. “For me to turn around and stop deducting $50 a month, I don’t think people will do that unless people are really falling on hard times,” he added. Some nonprofits that increased fundraising efforts reported continued, or increased success, in direct mail as well as other channels. With more than 90 affiliates, fundraising expenses for Chicago-based Easter Seals (8) increased by $4 million,to $38 million in FYE 2007, according to its consolidated statement. Direct mail continues to serve as the organization’s base and its fundraising techniques did not change in fiscal 2007,according to Alex Kiefer, senior financial analyst for Easter Seals. While fundraising might have increased by some 12 percent, Kiefer pointed to pubRed Cross volunteer Ken Chapin sorts snacks for delivery to Florida residents after Tropical Storm Fay. Your fundraising event was a huge success, despite several last minute glitches. You got your mailing out on deadline, despite several late changes. You even increased your constituent list by 25%, despite a shortage of volunteers. You kept smiling, kept pushing forward and stayed focused on the thousands of lives positively impacted by the funds you raised. It’s Time To Step Away From The Edge – Serenic DonorVision, powered by Microsoft Dynamics NAV, provides two-way integration between your GHYHORSPHQWDQG¿QDQFHV\VWHPV3XOOHGIURPD single database, accounting and fundraising reports correlate every time, and both teams have access to the data required to keep your mission moving forward. 'RQRU9LVLRQ LV XVHUGH¿QDEOH OHWWLQJ \RX WUDFN all the constituent information you need in a way that makes sense for your organization. Easyto-build queries streamline list creation, simplify target group development, and facilitate focused interactions. 0LFURVRIW2I¿FHLQWHJUDWLRQPDNHVLWHDV\WRPDQ age tasks, schedules and mailings using Microsoft Outlook. Visit www.serenic.com/edge to learn more DERXW6HUHQLF¶VVXLWHRIIXOO\LQWHJUDWHG¿QDQFLDO GHYHORSPHQW DQG RSHUDWLRQV VRIWZDUH 7KH ¿UVW 10 people to register will receive a free copy of Forces for Good, the Six Practices of High-Impact 1RQSUR¿WV But Now, Something Is About To Send You Over The Edge – ? ,VLWWU\LQJWR¿JXUHRXWZK\\RXUDFFRXQWLQJ and fundraising reports never correlate? ? Is it the lack of access to data you need from your accounting system? ? Or, is it those nagging doubts as to whether you are tracking enough information about your constituents to intelligently segment your lists for future campaigns? www.serenic.com (877) 737-3642 lic support which last year was up for Easter Seals by $65 million, roughly 58 percent. Overall revenue was up more than $191 million as well, almost 20 percent. “Public support speaks for itself and when you look at it in comparison to the increase in fundraising expenses,you’ll find a very favorable ratio. That’s the way you have to look at fundraising expenses – through that ratio to public support,” Kiefer explained. Campus Crusade for Christ International (CCCI) (31) saw its fundraising expenses drop after boosting investment the previous year. The bulk of expenses for two successful campaigns occurred in FYE 2006, when fundraising totaled $36.6 million and included significant radio advertising. Orlando, Fla.-based CCCI cut back on paper for new donor acquisitions -- which continues into this year -- while investing in other marketing channels in search of new donors. The result was a drop of 12 percent, down to $32.2 million, in fundraising expenses. Shaving Expenses, page 28 0LFURVRIW2I¿FHDQG0LFURVRIW:LQGRZVDUHUHJLVWHUHGWUDGHPDUNVRI0LFURVRIW&RUSRUDWLRQ 26 NOVEMBER 1, 2008 THE NONPROFIT TIMES www.nptimes.com Photo By Dave Knoer/American Red Cross http://www.serenic.com/edge http://www.serenic.com http://www.serenic.com http://www.serenic.com http://www.nptimes.com

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

The NonProfit Times - November 1, 2008 Reach Out Community Investment Loans Agencies Aim For Back Office Savings Contents Page 4 Special Report: An In-Depth Study of America's Largest Profits Charity Accounts Foretold Ecomonic Meltdown Liquid Assets Groups Shaving Expenses With An Eye Toward ROI Green Is Good Governance Becoming Institutionalized National September 11 Memorial & Museum Finds Its Footing NPT 100 Groups Turning Real Estate Into Cash NPT 100 Investments Beat Broader Market The NPT Power & Influence Top 50 Gala Calendar NPT Jobs Resource Directory

The NonProfit Times - November 1, 2008

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