The NonProfit Times - August 15, 2008 - (Page 16)

NONPROFIT BUDGETS Continued from page 15 Memphis-based Ducks Unlimited (DU) is in the business of wetlands conservation and receives donated land easements,the appraised value of which is revenue but on the expense side counts toward program services. Such donations can swing significantly from year to year. A dip in donated easements caused a 22-percent drop in total expenses ($200 million to $165 million), 27 percent in program ($173 million to $136 million) during FYE 2006. Figures for 2007 and 2008, however, are expected to reverse course considerably in both revenue and expenses. IT TAKES MONEY TO MAKE MONEY into is planned giving. As investments are made toward planned giving and global expansion, Komen also expects to invest within the organization to keep up with its growth. “We’ve been growing phenomenally,” Speirits said, with revenue at a compounded rate of 22 percent during the past five years. To keep pace with that growth, the organization will boost the dollars it spends on infrastructure. “Some of our infrastructure, IT capabilities, finance capabilities haven’t kept pace,” Speirits said, with investments expected mainly in and around securing hardware capability, and a need to upgrade software applications. With 125 affiliates nationally, “the demands and growth have been fantastic.” Total Expenses American Red Cross U.S. Golf Association Special Olympics Campus Crusade for Christ (NPT 100 median) MAP International U.S. Fund for UNICEF Catholic Medical Mission Board NPT 100 total Goodwill’s North American retail stores had $1.7 billion in revenue last year, with labor accounting for $673 million of costs. Asking donors for cash contributions is routine for a typical nonprofit, but at Goodwill,it’s actually an avenue for another revenue stream. Fundraising is a very small percentage of revenue, unlike most other large charities. “We’re getting more wills and bequests,” Barringer said.“It’s not that uncommon for someone who has given us clothes for years and years to leave us money in their will.” FYE 2005 $3.43 billion $94.8 million $117.0 million $434.5 million $319.5 million $464.7 million $188.6 million $51.0 billion FYE 2006 $5.63 billion $129.8 million $228.2 million $467.1 million $248.2 million $358.0 million $143.8 million $55.9 billion Most affiliates didn’t have any programs except for the occasional capital campaign, said Barringer, but these days are putting more resources behind fundraising. “We’re asking a different audience to provide us with financial support. It’s a new set of expenses for a lot of Goodwills,” he said. “Communities really like what we do. They want to support us, we just never asked.” NPT For many nonprofits, the story is no different than for corporations: diversifying revenue streams. And, that can cost money. Driving upwards on the revenue and expenses for DU in FY2007 and beyond is a greater focus on major gifts, said DU Controller Bob Mims, as part of its comprehensive campaign, Wetlands for Tomorrow.“Related program expenses correspond to the growth in major gifts to accomplish more wetland habitat conservation,” he said. “Each nonprofit struggles with balancing accomplishing more and more of their program while managing the financial position (balance sheet) of the organization,” Mims said. “Most nonprofits that struggle during tougher economic downturns try to maintain their programs and freeze compensation or cut/reduce personnel expenses.” Organizations with large endowments have fluctuating investment income based on market results, Mims said, but also can weather economic pressures better than those with no endowments for operations. “We’d like to expand our revenue sources from a number of areas,” Komen’s Speirits said. Most of Komen’s revenue comes in small donations, from events like Race for the Cure and its cause marketing efforts and one area they hope to expand Change +39% +27% +22% +6.98% -29% -30% -31% +7.87% FYE 2006 $5.3 billion $119.1 million $171.5 million $804.0 million $244.9 million $322.2 million $137.5 million $48.3 billion Seattle Goodwill Program Expenses American Red Cross U.S. Golf Association Museum of Modern Art Volunteers of America (NPT 100 median) MAP International U.S. Fund for UNICEF Catholic Medical Mission Board NPT 100 total Fundraising Expenses U.S Golf Association Museum of Fine Arts, Houston Trust For Public Land Ducks Unlimited (NPT 100 median) Art Institute of Chicago Public Broadcasting Service Operation Blessing Int’l Relief NPT 100 total FYE 2005 $3.0 million $1.7 million $3.5 million $22.8 million $8.8 million $471,766 $979,152 $2.5 billion FYE 2006 $5.8 million $2.6 million $4.8 million $24.6 million $5.7 million $306,704 $407,919 $2.7 billion FYE 2005 $3.13 billion $87.7 million $131.3 million $755.0 million $316.0 million $427.0 million $182.6 million $44.0 billion Change +48% +33% +27% +7.5% -53% -54% -140% +6.7% FYE 2005 $319,581 $7.2 million $37.7 million $15.3 million $32.7 million $5.0 million $1.2 million $4.5 billion Change +41% +26% +23% +6.1% -29% -32% -33% +8.07% Goodwill of Greater Washington Seattle Goodwill Administrative Expenses Marine Toys for Tots Foundation WGBH Educational Foundation Smithsonian Institution March of Dimes Foundation (NPT 100 median) Art Institute of Chicago Institute of International Education MAP International NPT 100 total FYE 2006 $686,796 $13.8 million $56.6 million $16.8 million $20.4 million $2.7 million $575,011 $4.8 billion Change +53% +47% +33% +8.39% -60% -86% -102% +6.7% Source: 2007 NPT 100 Note:To achieve a median, one charity whose FYE 06 data were not available was not included. Visit us online at www.nptimes.com and at www.nptjobs.com 16 AUGUST 15, 2008 THE NONPROFIT TIMES www.nptimes.com http://www.nptimes.com http://www.nptjobs.com http://www.nptimes.com

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The NonProfit Times - August 15, 2008 The World’s Best Fundraisers Holiday Jeer Contents ‘Donate Now’ Atlanta Luring Major Charities Expenses Continue To Put Stress On Nonprofit Budgets Fuel Costs Eating Up Food Banks Get An Email Address, Generate Income Unique Items Drive Fundraising Auctions Nonprofit Styles Aren’t Out Of Fashion Limited ‘Face’ Time NPT Jobs Resource Directory

The NonProfit Times - August 15, 2008

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