Giving in the News: The New Face of Giving

By Andrea Stone, USA TODAY

A charity that provides water to African villages posts locations of new wells using Google Earth, and a 13-year-old contributor in Manhattan tracks the progress.

A cancer charity accepts “micro-donations” of $5 by text message.

An orchestra in Michigan begins posting videos of its performances on YouTube to try to draw patrons.

The United States long has been a nation of givers, but a new generation is transforming the way we do good. Millennials and Generation Xers, especially those 20- and 30-somethings starting careers, may not have the bucks to be major donors, but they are finding ways to help others and prompting big changes in the way charities raise money.

Young people are “not just making checks and going on with their lives. They want to be part of what happens” to their money, says Claire Gaudiani of the Heyman Center for Philanthropy and Fundraising at New York University. She says today’s young people contribute to favorite causes earlier, more consistently and in more imaginative ways than their grandparents did.

Read the entire article at USA Today.

Giving in the News: Direct Donations From IRA’s Extended

By Frank Brown

Part of the Emergency Economic Stabilization Act signed into law on October 3rd included the extension of the ability to donate directly from a Traditional IRA to a charitable organization without the distribution being considered as income. The donor must be at least 70 1/2 years old and there is a $100,000 maximum limit per year for 2008 and 2009. The donation must be made by December 31.

This plan can provide big tax savings for some donors depending on their income tax situation. Many generous retirees do not have enough current income to cover their donations with a full tax deduction which is limited to 50% of Adjusted Gross Income. They may even have charitable carry-forward from the previous year’s gifting. Even with sufficient income to deduct all of their giving, there can still be tax advantages to a direct donation from an IRA.

An IRA direct donation to a Giving Fund (aka Donor Advised Fund) at the Servant Christian Foundation is excluded in the legislation. However, SCCF has access to a tool which can be used somewhat like a Giving Fund, called a Designated Gift Fund. Designated Funds can only make distributions to a single charity. Donors wishing to use IRA donations can give to multiple ministries by setting up a separate Designated Fund for each. One of the advantages to this is that after the Designated donation is made, the funds can be distributed in phases over a period of years. It doesn’t have to be sent to the ministry at once or as a lump sum. You can fund your giving ahead.

The Next Step

So, now that I qualify and my IRA qualifies, how do I do this?

  1. Contact your IRA custodian.  The custodian will make the check payable directly to Servant Christian Community Foundation.
  2. Establish your designated fund(s) with SCCF indicating the recipient charity(s).
  3. Obtain a written receipt from SCCF.
  4. Work with your accountant to determine the exclusion on your tax return and any net taxable income amount which will need to be included on your 1040.
  5. SCCF will distribute the funds in accordance with your desires.

For more information, contact the SCCF office at (913) 310-0279 or via email.

Frank Brown is a founding board member of Servant Christian Community Foundation, and he served as a pilot for TWA for 25 years. He is currently the Chairman of Via Bancourier.  He has been active in Christian ministries for 30 years.

More Money to Ministry

By Connie Hougland

Through their non-cash giving services, SCCF and iDonate have facilitated non-cash gifts totaling $40,000* to 34 ministry funds in the last 4 months!

As you are well aware, the realities of our struggling economy means nonprofits are facing a challenging fundraising climate. Nonprofits are going to need to rethink and re-energize their development strategies. As the checkbook continues to take the direct hits – whether it’s at the gas station or the supermarket – people are looking for alternatives to cash giving.

With challenge comes opportunity. The challenges of a cash tight economy call us to look beyond the checkbook for creative giving opportunities.

That’s why we are here! We desire to help you expand how giving is done. By opening the door to non-cash giving, nonprofits have the opportunity to provide donors a creative outlet to invest in things they care about. Many times the value of the non-cash gift is larger than that of a typical cash gift. In essence, nonprofits have the opportunity to grow a givers capacity to give through non-cash giving.

Non-cash giving opportunities include:

  • Publicly Traded Stock
  • Autos / Trucks
  • Boats / RVs
  • Collectibles
  • Gold, Silver, Jewelry
  • Timeshares
  • Business Inventory
  • Real Estate
  • Business Interests
  • Estate Gifts

Recent example:

As a result of having non-cash giving opportunities part of their website, one ministry has received hits from Chicago and elsewhere resulting in business inventory gift offerings (vending machines and an electrical inventory) worth potentially up to six figures!

We’d love to chat about how we can help. If you would like to discuss non-cash giving options for your ministry please contact us at 913-310-0279 or email me

* This amount does not include gifts resulting from timeshare or securities donations.

Readiness Checklist: Is Your Ministry Ready To Write a Grant Proposal?

By Joy Skjegstad

Winning Grants

In my many years of working with ministry groups on grant proposals, ministry leaders have frequently asked me “How do we know if we’re ready to write a grant proposal?” Below I have prepared a checklist of some of the things that it would be good to have in place before you start writing.

1. You have incorporated as a 501(c) (3) organization. Getting your legal status shows you are serious and forces your group to put governance and accountability structures into place.

2. You have vision and mission statements for your organization, even if they are informal.
Before submitting a grant, you should be able to write down, in just a couple of sentences, the vision and mission of your organization. A vision describes what the world will be like once your organization has completed its work: “all the children can read” or “everyone in our community has access to affordable housing,” for example. A mission describes how your group will go about achieving the vision, addressing who, what, where, how, and with whom.

3. Your program is functioning at some level.
Most corporate and foundation funders like to see something in action before they will send their support. If you are just starting your ministry organization, plan to have at least one program on the ground and running before you seek grant funds.

4. You have already raised some money for your ministry.
If your organization is new, grant money probably won’t be the first money you secure. Foundations and corporations typically like to see that an organization has at least some support from elsewhere before they make their commitments. Individual donors or church congregations may be your first contributors, allowing your group to lay some groundwork before asking for grant funding.

5. You have a strong sense of how faith fits into your faith-based organization.
When you say you are a faith-based group, what does that mean to you? Most importantly, does being “faith based” mean that some or all of your programs have a faith component with the goal of helping your participants grow spiritually? It’s important to sort out that key point before you start interfacing with funders that may not have a spiritual bent at all.

6. You have outcomes for your programs and a way to measure those outcomes.
Funders are looking for results, so you need to spend some time thinking about this before you write your propopsal: How will the lives of participants be transformed as a result of your work? Make your program outcomes as concrete and specific as possible, and describe how you will measure those outcomes. For example, if you’re helping homeless people, do they find jobs or housing because of the work you are doing? Or if you have an academic program for youth, do your participants start doing better in school?

You can make the process of writing a grant proposal much simpler by spending some time reviewing this checklist and getting prepared for the proposal-writing process. In my experience, organizations that take the time to get ready for grantwriting have much greater success in securing grants.

Joy Skjegstad is the author of Winning Grants to Strengthen Your Ministry (Alban Institute, 2007) and a 20-year veteran grantwriter. She consults with organizations around the country on nonprofit management and ministry development. She has also written Starting A Nonprofit At Your Church (Alban Institute, 2002).

Upcoming Seminars

Christian Foundation Grants has partnered with Bob Vickers, President of Artful Askers, to present two seminars on grant writing:

  • Grantwriting Basics Webinar – Friday, October 10, 12:00 PM – 1:30 PM. Register at www.christianfoundationgrants.com.
  • Building Relationships Workshop – Friday, October 24, 8:30 AM – 4:30 PM. Register here.