Seven Fascinating Facts About Nonprofit History in the U.S.

I'm a history buff, as well as a nonprofit consultant. So, for your pleasure and entertainment, here are seven fascinating facts about the history of nonprofit organizations in the United States:

• When was the first nonprofit board in American formed? The first board dates back to the earliest settlers. The Massachusetts Bay Company's charter created that board, whose members were to be chosen for their "honesty, wisdom, and expertise."
• Who wrote the first documented fundraising appeal? Henry Dunster, Harvard's president, wrote the first written appeal for funds in 1643. He solicited wealthy and charitable Puritans living in England to support the American experiment.
• Who was the first fundraising consultant? It was Benjamin Franklin! Here is some of his spot-on advice for the Reverend Gilbert Tennant who was trying to raise funds for a new meeting house: "I advise you to apply to all those whom you know will give something; next, to those whom you are uncertain whether they will give anything or not, and show them the list of who have given; and lastly, do not neglect those who you are sure will give nothing, for in some of those you may be mistaken." By the way, Reverend Tennant more than met his goal and was able to build a big, elegant building for his congregation.
• What was the first big appeal for funds to help out in a disaster? In 1846, Americans gave generously for Irish famine relief during the big potato blight.
• When were the first tax deductions instituted? First, Congress had to establish the income tax - this happened in 1913, when the 16th Amendment to the Constitution was ratified. Later that year, the Revenue Act exempted organizations "organized and operated exclusively for religious, charitable, scientific, or educational purposes" from paying taxes. And in 1918, new laws permitted individuals to deduct charitable contributions that were up to 15% of their taxable income.
• When and where were the first Girl Scout cookies sold? That would be Muskogee, Oklahoma in 1918 where the Mistletoe Troop sold their home-baked cookies as a service project. Here's the recipe: Cream one cup of butter and one cup of sugar; add two well-beaten eggs, two tablespoons of milk, one teaspoon of vanilla, two cups of flour, one teaspoon of salt, and two teaspoons of baking powder. Refrigerate for one hour. Roll out the dough, cut into shapes, sprinkle sugar on top, and bake at 375 for 8 to 10 minutes.
• What big scandal rocked the nonprofit world in 1995? William Aramony, who was lauded as a visionary for his leadership of United Way from 1970 to 1992, was convicted on 23 counts of felony charges including conspiracy, fraud and filing false tax returns (apparently he used United Way funds to pay for his extramarital affairs). This scandal ushered in a whole new era of scrutiny, laws, and IRS regulations about nonprofit finance and governance.

Way back in 1835, Alexis de Tocqueville marveled at the great number of American voluntary organizations dedicated to providing charitable relief to the needy as well as offering solutions to society's problems. Many of our most well-known national nonprofits (from Planned Parenthood to the ACLU to Big Brothers Big Sisters) were founded in the early 1900's. By 1950 there were 50,000 nonprofits up and running in the U.S.; 250,000 by 1965; and a million by 1985. 

And today? Count yourself proud to be among the one and a half million plus nonprofits working to make this world a better place.

Top Three Fundraising Tips for 2014

According to Atlas of Giving, preliminary reports indicate a 12.9% increase in charitable gifts in 2013. Here are three suggestions for ways to keep your fundraising momentum going in 2014:

1. Market monthly donations: Do you have an easy option for donors to make monthly contributions? Your supporters - especially those who are younger - might have a hard time coming up with an annual $100 donation, but if you ask them for $10 a month it instantly becomes doable. After all, that's about the cost of two lattes at Starbucks and less than it costs to see a movie. Of course, you'll want to provide plenty of giving options, listing dollar amounts from large to small. And don't forget to thank your monthly donors at the end of the fiscal year with a personalized letter acknowledging their total annual contribution. The best two things about monthly donations? They are unrestricted and provide secure ongoing cash flow.
2. Know your donors: Does your donor wish to remain anonymous? Hate phone call asks? Love to give funds for scholarships? Volunteer regularly? Only like to give once a year? All of this information - and more - should be noted in your database. The more you know about your donors, the more effective your fundraising efforts will be. And here's the other thing - you also need to know your donor personally, through regular contacts via phone, email, meetings, invites to events, conference calls. Building a donor is like building a friendship and should be treated as such.
3. Tell your story: Face it - it's a digital world, and people have short attention spans. If you want folks to contribute to your cause, you need to capture them quickly and personally. And the best way to do this is with a (very short) story. People quickly tune out when you're reciting facts and figures; a personal story draws them in, invites their empathy, and motivates them to take action. I started using storying as part of my fundraising training sessions after a conference in which I was asked to recount how I got involved in the nonprofit world - in 90 seconds. It's amazing how focused you get when you have a time limit, and how much information can be packed into that minute and a half. It's also amazing how engaged the listener comes. Now I use this technique to train nonprofit boards and staff in making fundraising asks. I have participants practice telling a story about why they care about their organization or about a special success story. You should use the vehicle of story not just in direct personal contacts but also through video on your emails and website.

One crazy note: Atlas of Giving and Giving USA are in the midst of an amusing internet quarrel about who has bragging rights for charitable giving statistics. So - we may see different numbers in upcoming weeks, though both agree that giving has indeed increased. Stay tuned...

Get Organized for the New Year

It's that time of year for New Year's resolutions. Is one of yours to be more organized and productive at work? Here are a few out of the box suggestions for you:

1. Exercise: Take a short brisk walk, do some yoga stretches, do a quick workout. Exercise reduces stress, and when you're less stressed you are better able to focus and get your work done efficiently. Researchers in Sweden discovered that people who take exercise breaks are more productive even when they work fewer hours. They are also healthier (sitting for extended times is not great for your health), and this translates into reduced rates of absence due to illness.
2. Schmooze: Turns out folks who develop friendships with work colleagues are happier, communicate better, and work harder. A study from Tel Aviv University found that people who socialize at work are not only more productive, their bodies release hormones that contribute to better health. So go ahead - chat with your co-workers, tell a joke, share a potluck lunch - it's good for you and for your nonprofit.
3. Stand up: When you stand, whether while talking on the phone or at meetings, you get to the point faster and make decisions more efficiently. And your meetings and phone calls will be shorter. You could even try the latest fad - a standup desk.
4. Listen to music: Believe it or not, research from the Journal of the American Medical Association shows that listening to your favorite music improves job performance - because it makes you feel happier plus drowns out external noise and commotion. Case in point: problem solving and accuracy improves when surgeons listen to their own favorite soundtracks.
5. Break things down: Do you tend to put big difficult tasks at the bottom of your to-do list? All of us have jobs we just don't like to do, or that feel too daunting to begin. Don't put them off forever. Instead, get motivated by breaking challenging jobs into smaller, more manageable pieces. All of a sudden, that big job will begin to feel possible - and you'll get the satisfaction of crossing something off your list.
6. Manage your emails: Are you drowning in email? Send fewer emails - and you'll get fewer in return Do you check your emails constantly throughout the day? Plan designated time slots for checking email, and resist that compelling email ding at all other times. Resolve to be specific and strategic about your email communications this year. Don't let email manage you - manage your email so you can focus on important jobs and goals to further your nonprofit mission.

Happy newly organized New Year to you all!