Keeping a “business” going with nothing to sell

by Don Drake

 

Businesses rise and fall by how well they are able to gauge markets and sell products or services to enough people so that they can continue making profits. Nonprofits succeed to the extent that they can convince a caring public of the value they provide to a community. It is a very complex and tricky thing to do. Our society is rife with advertising about everything from what we eat and wear and what we do with our leisure time to who we are and can be. Yet, most people have only a vague awareness of what goes on inside even the best-run nonprofits providing the most public benefit by any objective standards.

Businesses legitimately exist for private benefit; that is, to benefit those people who have invested in that business. The nonprofit sector exists for public benefit, which is the primary reason it differs significantly from government or business.

Perhaps the biggest way in which nonprofits differ from businesses is that, by and large, they do not have something to sell. The Whatcom Land Trust cannot sell land. Its mission is to preserve green space for future generations. The Opportunity Council has nothing to sell to cover its operations. It exists to provide the wherewithal for low-income people to become more self-sufficient, contributing citizens in the communities of Whatcom County, something it does in a variety of ways. The Bellingham Festival of Music does sell tickets, but that covers only 25% of the cost of providing live world-class music each summer.

Then how do the typical small Whatcom County nonprofit organizations get enough operating money to carry out their missions? Like Blanche DuBois, they depend on the kindness of strangers and – more likely – friends who know and value the work they do. Sometimes that kindness comes in the form of public support from individuals, businesses, foundations or city, state and federal governments. Unlike a business urging consumers to buy a particular product that will enhance their lives, a nonprofit is customarily asking for money or time to help improve the lives of others. If you think competition is fierce in your business field, you should try asking others to support a nonprofit.

Another important thing to know about the nonprofit sector is that public support does not fall evenly among the various fields of nonprofit work in Whatcom County. For example, human services are about 30 percent of the local nonprofits reporting to the IRS, yet they get over half of the public support dollars. Conversely, arts and education organizations make up 11 to 13 percent of reporting charities, yet they get only two to three percent of public support.

Regardless of these imbalances, one thing is clear about the public support Whatcom nonprofits receive: much of it comes from outside the County in the form of grants. We all depend on these imported dollars to help us maintain the quality of life we hold so dear here.

While we all benefit directly or indirectly from these acts of kindness or generosity, it is a very different kind of exchange than a purchase that will directly benefit our families or us. The essential difference is that it is no longer just about us. It is an investment in our community and its future.

The next time you think about the difference between the private benefit sector (business) and the public benefit sector (nonprofits), remember the critical difference in how each supports itself. Having to ask others for money to survive is both a huge challenge as well as a gift. It is especially challenging in the tough economy we now face in business and nonprofits alike. But it is also a gift in that it forces all nonprofits to become more clear and focused in how they tell their stories to the rest of the community that supports and benefits from the work they do in human services, arts and culture, environmental protection, health and many other arenas.

The great management expert Peter Drucker once observed that nonprofits are among the best-managed businesses in the country because they have to be with their limited resources. Imagine what your business would be like if you couldn’t sell anything.

 

Don Drake is President of Whatcom Community Foundation, a Bellingham public foundation that raises money locally to benefit Whatcom County nonprofit organizations in human services, arts and culture, environment, education, civic engagement, health and community building.

 

B&GC names auction board

Whatcom County Boys and Girls Clubs will host the 24th annual KidsFest Auction, “Every Child Is A Star,” on April 12, 2003. Committee chairs for the auction were recently named: Chair, Donna Edquist, Applied Digital Imaging; Procurement, Rick Joines, Bay City Financial Services; Marketing, Christine Zurline, Bellingham Travel and Cruise; Corporate Sponsorships, Kelly Jamison; Decorations, Jannia Sweeney, Bellingham Herald.

Other auction board members are: Jamie Crenshaw, Building Industry Council; Mimi Ferlin, Brooks Manufacturing; Katie Jansen, JIJ Construction; Jody Pelo, Coldwell Banker Miller/Arnason; Janice Sullivan; Cherie Walker; Carlotta Jaratt, Bellingham Police Department; Fritz Willits; Erica Zender, Key Bank.

For the last two years, the auctions have been sellouts at the Best Western Lakeway Inn. Gross revenues for 2002 exceeded $150,000, a 50 percent increase over 2001. Corporate sponsorship participation will be offered to local businesses at rates ranging from $500 to $12,500, depending on level of recognition.

 

Haggen shoppers smile in the aisles

Four Haggen stores in Whatcom County collected $15,953 for the Muscular Dystrophy Association (MDA) during this summer’s Aisles of Smiles Campaign. Haggen/TOP Food & Drug customers could purchase a ‘smile’ mobile at store checkstands for $1. The entire amount went to the MDA.

Total amount raised by all stores in Washington and Oregon was $34,497.

“The support and thoughtfulness of the Whatcom County communities is apparent with the money raised,” said Haggen CEO Dale Henley. “We are pleased to provide a simple donation method that both serves the desires of our customers and those in need.”

Northwest recipients of MDA funds include clinics at the University of Washington and Children’s Hospital Medical Centers, area support groups for people with neuromuscular disorders and their families, and Camp Wascowitz near Bend, Washington.

 

Pioneers go high-tech in Lynden

Lynden Pioneer Museum will pioneer cutting edge museum exhibit technology thanks to a grant from Compaq. The grant money will purchase necessary equipment to develop a working prototype of the museum’s Wireless Discovery Network.

Visitors and students will be able to access a wireless intranet using palm-top computers. Photos, music and other sounds, movies and exhibits will be available in an easy to use in depth format.

Similar to the music packs at Seattle’s Experience Music Project, the units in Lynden will be lighter and contain far more information. The Lynden museum will be the first to have such an information distribution network and will set a benchmark for museums throughout the world.

“The short-term goal is to give visitors better access to the museum, its exhibits, collections and Whatcom history,” said Director/Curator Troy Luginbill. “The long-term goal is to utilize the network for collections management and exhibit design.”

The prototype will be tested in January of 2003 and available to the public by January, 2004.

 

ICU wins humanitarian award

Bellingham’s Industrial Credit Union has been awarded first place in the Dora Maxwell Social Responsibility Awards at the annual Washington Credit Union League Convention last month in Spokane. The ICU submission will advance to the national competition with winners to be announced at the credit union national organization’s 2003 Governmental Affairs Conference in 2003.

The award honors credit unions that show exemplary leadership in community service. ICU was recognized for Food Drive 2001, which collected over 65,000 pounds of food and $8,000 in cash for needy Whatcom County families.

ICU has partnered with Haggen and the Cascade Radio Group for the past five years to organize the food drive. This year’s drive will be held October 13-18.

 

Businesses fill school supply bank

Whatcom County businesses contributed enough this year to fill the Opportunity Council’s ‘School Supply Bank’ for homeless students.

KGMI contributed radio advertising for the drive and Whatcom Educational Credit Union collected two truckloads of donations.

BP Cherry Point Refinery employees and contractors combined to fill another van full of school supplies.

Others who donated supplies or financial support include Toolhouse Design, Polar Electric, Mills Electric, Burton & Schellberg, Inc.,Kemble Northwest, Griggs Stationers, Anvil Corporation, WWU Registrar’s Office, Pacific Continental Realty, Lakeway Cost Cutter, Industrial Credit Union, Thomas & Martina Horn Foundation, Woman of the Moose, Maple Leaf #58 Eastern Star, Cordata Quilters, Soroptimists International of Bellingham, Kiwanis of Lake Whatcom, and many local churches and individuals.

Last year, the council’s education liaison program served over 400 homeless children.

On Thursday, October 17, the Opportunity Council will host an open house at its new facilities at 1111 Cornwall Avenue. The newly renovated quarters, owned by the council, will house community services, child care, and family resources programs and support staff.

In addition to gaining an on-site parking lot, the new facility has an ADA-accessible entrance.

Several local entities contributed to the fund which allowed the council to purchase the building: Alcoa Intalco Works, City of Bellingham, BP Cherry Point Refinery, ConocoPhillips Ferndale Refinery, US Bank, and Boeing Employyes Credit Union Foundation.

In-kind support came from real estate agent Richard Eggemeyer, Whatcom County Alternative Corrections, Faber Brothers Construction, Whatcom Land Title, and property sellers Ken and Denise Schims.

 

BP rescues BBBS

Big Brothers/Big Sisters (BBBS) of Northwest Washington has seen a sharp downturn in revenue from fundraising since the terrorist attacks of 9/11/01. BBBS also had to close its charity bingo operation because of increased competition for the entertainment dollar.

In response to the need and appeals by BBBS board members, BP Cherry Point Refinery stepped in to help.

“The immediate response by BP to our emergency request is what really has kept the agency’s doors open,” said board member Tim Clossey. “From providing matching funds to employees’ Bowl For Kids’ Sake efforts to being a major sponsor of the golf tournament, to making a one time emergency donation of $10,000, BP and the Cherry Point employees have contributed $40,000 in the last year.”

The BP support along with donations from the Upper Skagit Indian tribe, Anvil Corporation, Bank of America, The Unity Group, and STARCON International have allowed the agency to refocus from day-to-day fundraising activities to longer-term service goals.

“In taking a look at the BBBS mentoring program, it was clear that it changes the lives of many kids in a very positive way,” said Mike Abendhoff of BP Cherry Point. “It was also clear that without some additional help the program was in trouble. We decided that it was too valuable an asset in the community to lose and I’m glad BP was in a position to be able to help.”

 

United Way executives launch fall campaign

Loaned executives have started the 2002 United Way campaign in Whatcom County. The executives, trained volunteers sponsored by local companies, include George Chamberlain of Alcoa Intalco Works, Larry Sperry, St. Joseph Hospital, Chris Johnson, Anvil Corporation, Cindy Daily, Wal-Mart, John Muggy, BP Cherry Point, Shane Kussmann, partially sponsored by Horizon Bank, and Tom Burkland, partially sponsored by Key Bank.

Funding priorities for the 2002 campaign include four areas building healthy children, youth and families, ensuring people have food, shelter and a healthy living environment, creating systems for increased physical and mental health and promoting safety while preventing violence and abuse.

The United Way hopes to raise $1.85 million this year, 8 percent more than last year.

 

Brown and Cole donates soccer snacks

Brown and Cole, which operates Cost Cutter, Thrifty Food Pavilion and Market Place stores in Skagit County, donated post-game snacks to the Skagit Valley Youth Soccer Association. This is the fifth year the grocer has donated food to soccer youth.

Each team in the association receives coupons for Minute Maid coolers and Frito Lay snacks. Coupons can be redeemed at Brown and Cole operated grocery stores.

Through similar programs in other Washington counties, Brown and Cole provide snacks for approximately 13,000 children involved in youth soccer across the state.

 

Credit union donates to numerous local charities

GaPac Employees Federal Credit Union donated a total of $4,200 to charity last month. The money came from a loan program, where members who donated $25 to charity received a 0.25 percent discount off the APR of their new loan and members who gave $50 received a 0.5 percent discount.

Among the charities receiving funds from the GaPac Credit Union loan program were Children’s Miracle Network, WeCare, GateKeepers, National Multiple Sclerosis Society, Laurendeau Foundation for Cancer, Mary Kay Ash Charitable Foundation, Whatcom Hospice, United Church of Ferndale, The Salvation Army, Lynden Human Life, Search and Rescue, Kingdom Hall of Jehovah Witnesses, and Blue Skies for Children.

 

Callaway to speak at Breakfast for Kids

Robbie Callaway, senior vice president of the Boys and Girls Clubs of America, will speak at the Boys and Girls Clubs of Whatcom County 3rd annual Breakfast for Kids. Callaway serves as Boys and Girls Clubs’ representative in Washington, DC, where over the past five years he has raised more than $200 million for the Boys and Girls Clubs. He also helped form the National Center for Missing and Exploited Children and still serves on the board. The breakfast will take place Nov. 7 at 7 a.m.

 

Regence BlueShield donates to literacy

Whatcom Literacy Council received $1,500 from Regence BlueShield to support their adult literacy programs. WLC estimates 30,000 Whatcom County residents are functionally illiterate. Their programs help adults learning to read and learning English as a second language.

 

Northwest Youth services now accredited

Northwest Youth Services received accreditation from the Council on Accreditation for Children and Family Services, an accrediting agency for social and behavioral healthcare services. Accreditation is the result of a comprehensive audit of an agency’s standards regarding human resource, financial, risk management and 38 other service benchmarks.

 

Mother Baby Center offers expanded services

Mother Baby Center, a non-profit center providing support to new families, has expanded its service roster. A registered nurse is available weekdays from 1 p.m. to 4 p.m. on a first-come first-served, drop-in basis. The nurse will meet with all pregnant, postpartum or nursing women. Weekdays from 4 p.m. to 5:30 p.m., the center offers an “All About Baby” drop-in group. Parenting and pregnancy questions are discussed in this group facilitated by a registered nurse.

 

Mindfly Launches Whatcom symphony Web site

Mindfly, a Bellingham-based Web design and housing company, launched a Web site for the Whatcom Symphony Orchestra.

“Mindfly is happy to participate in the ongoing success of the symphony, and the enrichment of the arts in Bellingham and Whatcom County,” said John Raasch, Mindfly project manager.

 

Brown and Cole donates Campbell’s Labels for Education to local schools

Four elementary schools received Campbell’s Labels for Education certificates. Each school received 21 certificates worth 10,500 points, which the schools can redeem for school equipment.

Local recipients were Nooksack Elementary in Everson, Fisher Elementary in Lynden, and Happy Valley and Northern Heights elementaries in Bellingham.

 

Signature Project comes to Lynden

The Signature Project, an ongoing project by Irish artist Patrick Dunning, will be at Isom Intermediate School Gym at 7 p.m. The project utilizes x-rays, magnetic fields and ultraviolet lights to create a 76 ft x 36 ft digital tapestry. It tells the story of Dunning’s Irish heritage as well as the stories of the many people who have contributed signatures. Lynden Combined PTA presents the event.

 

BIAW boosts Blue Skies

Six local homes that have been extensively remodeled are available for the public to tour on October 5 and 6. The 2002 Tour of Remodeled Homes is sponsored by the Master Remodelors’ Council of the Building Industry Association of Whatcom County (BIAW).

Eighty percent of the proceeds from the tour will be donated to Blue Skies for Children, a local nonprofit that provides services to homeless, foster, and low-income children.

Homes on the tour are not model or showroom houses, but private homes in everyday use. The tour will also include a product showcase at Northwood Hall on Northwest Avenue, featuring products and services by local companies. The showcase will be a microcosm of the association’s annual Home Show and Garden Walk held each March.

Representatives from Blue Skies will be on hand to show visitors through their facility, which houses both the organization’s offices and an “Outlet Store” where clients can shop for new and used clothing, school supplies and other needs.

Tickets for the event are $10 and may be purchased at Whatcom County Haggen stores ($1 off with Haggen card), The BIAW office on Northwest Avenue, Westside Building Supply in Lynden, and at Northwood Hall on the days of the event.

 

Year end-giving season requires strategy

According to the Council on Foundations, donors should follow these four steps to maximize the benefit of their year-end donations.

 

1. Make a Charitable Budget

Designate the amount you plan to give to charity and make your donations within this dollar amount. Many donors are deluged with direct mail calls for support throughout the year. Why not put all your requests into a “charitable budget folder?” When you’re ready to make end-of-year gifts, you can go through the items in the folder and determine how much you’ve already given and to whom, then decide on the remainder.

 

2. Research Charities of Interest

When assessing requests, take time to research the charities requesting money. Is the organization the best steward of funds for this cause in your community? You can always request their most recent financial statement. By using the Internet (http://www.guidestar.org), calling the nonprofit directly or working with your local community foundation, you can learn a great deal about organizations that support the issues you are most concerned about. The BBB Wise Giving Alliance (http://www.give.org) reports on nationally soliciting organizations.

 

3. Find the Right Method for You

Determining the best way to give depends on a number of factor—your current financial situation, long-term commitment or interest in increased giving or support for certain organizations. If you have highly appreciated securities, gifting publicly traded stock rather than cash generally allows you to take the full current market value as your donation and avoid capital gains tax. Two other methods for giving may make sense:

Donor-advised funds: It may make sense to start a donor advised fund with your local community foundation if you have a larger amount of money dedicated to charitable giving. A donor-advised fund gives you an immediate tax deduction and access to community foundation expertise in recommending agencies to support. To find your local community foundation, visit http://www.communityfoundationlocator.org.

Private foundations: Private foundations give donors the highest degree of control over the use of their charitable donations. It is also an appealing way to communicate philanthropic values to future generations. However, private foundations require a substantial amount of administrative work and expense. Unless you can devote several million dollars to a private foundation, it may be best to work with community foundations or charities directly.

 

4. Get the Maximum Tax Benefit

Most gifts are tax deductible, but there may be different tax advantages available if you donate certain assets or make a gift to a public charity. For guidance, consult IRS Publication 526, Charitable Giving (http://www.irs.gov/pub/irs-pdf/p526.pdf). Consult with a tax advisor before giving a large gift. Two rules of thumb for taxes and giving are:

Current gifts reduce your income taxes immediately and in the future. By making a gift to charity, you can take an immediate deduction and remove assets from your taxable estate.

Contribute appreciated assets for tax savings. When you donate certain appreciated assets, you receive a deduction for full market value, avoid capital gains tax, and remove valuable assets from your taxable estate. Securities are also a great way to make a lasting contribution to a designated charity.

 

Business Pulse prepared this feature with information provided by the Council on Foundations.

 

The following are on-line resources designed to assist with year-end giving decisions.

 

Council on Foundations

(http://www.cof.org)

The council is the largest membership association of grant making organizations in the United States. Resources available include: First Steps in Starting a Foundation, A Guide for the Professional Advisor, Options and Opportunities in Family Philanthropy.

 

Community Foundation Locator

(http://www.communityfoundationlocator.org)

Community foundations are tax-exempt public charities created by and for people in a local community. Donors can establish a charitable fund at the foundation and may recommend grants – in their name or anonymously – to groups they want to support.

 

Guidestar

(http://www.guidestar.org)

Guidestar contains information on registered charities. Potential donors can check out a charity’s financial statement or see who’s on the board.

 

Better Business Bureau Wise
Giving Alliance

(http://www.give.org)

The Web site reports on national charities that are the subject of donor inquiries. Their evaluations offer guidance on making informed giving decisions.