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Fall 2009
Fact
On October 14, 2009, the Dow Jones Industrial Average passed 10,000 points for the first time in a year, culminating a 53% gain since March. The Average first crossed 10,000 on March 29, 1999. During that same period, the real dollar prices of oil and gold have increased 255% and 197% respectively.
– Derived from "The Lost Decade of Stock Investing."Wall Street Journal. 2009.
Quote
"Vitally important for a man or woman is, first, to realize the value of education and then to cultivate earnestly, aggressively, ceaselessly, the habit of self-education"
– BC Forbes
Inside
Fact
On October 14, 2009, the Dow Jones Industrial Average passed 10,000 points for the first time in a year, culminating a 53% gain since March. The Average first crossed 10,000 on March 29, 1999. During that same period, the real dollar prices of oil and gold have increased 255% and 197% respectively.
– Derived from "The Lost Decade of Stock Investing."Wall Street Journal. 2009.
Quote
"Vitally important for a man or woman is, first, to realize the value of education and then to cultivate earnestly, aggressively, ceaselessly, the habit of self-education"
– BC Forbes
Inside
Holiday Charitable Giving Guide
Helpful Hints to Follow When Making Your 2009 Year-End Contributions
Historically, Americans are consistently philanthropic even during times of economic hardship. This is evident in the Giving USA 2009 report, which states that individual giving remained the largest component of giving in 2008 at 75 percent of all giving.* But like many others affected by the economy, you too might be wondering what to consider before making your year-end contributions. We've outlined a few tips to help you assess non-profit organizations, followed by a few different ways you can give this year.
1. Check the financial health of the organization
The economic downturn impacted non-profits significantly, especially those receiving government funding. At a minimum, check the organization’s website for press releases concerning internal finances and the most recent annual report. If it is not available online, you can request a copy of the non-profit’s annual report and financial statements (Form 990) by contacting the non-profit directly. Most financial statements are also available through industry websites, such as www.bbb.org/us/charity or www.guidestar.org.
When reviewing financial statements, check that an organization's total assets exceed its liabilities. It is also important to consider the amount of the organization's assets. The Better Business Bureau Wise Giving Alliance suggests that the charity's unrestricted assets – money received that is not constrained by time or purpose – should not be "more than three times the size of the past year’s expenses or three times the size of the current year’s budget, whichever is higher."* Although, very few non-profits have such reserves, this measure ensures that those who do are using it for current initiatives.
2. Verify the nonprofit’s fund distribution
Next, review the non-profit's expenditures. These are available in the annual report or the Form 990. The Form 990 defines these as Program Services, Management and General, Fundraising, and Payments to Affiliates. Program Services generally cover salaries and any related expenses associated with program delivery. Management and General refer to administrative costs and operating expenses. Fundraising is money used to raise funds, and Payment to Affiliates refers to larger non-profits with member organizations.
Most non-profits adhere to a standard of spending no less than 65 percent of total revenue on program service activities, and no more than 35 percent on fundraising expenses.** While this does not apply to all situations, it is a good rule of measure. You may also consider comparing the financial documents of several similar non-profits to gain an understanding of expenses and what equates to normal revenue distribution. By doing so, you will start to notice red flags as they appear.
3. Research accomplishments and focus on the mission
Double-checking the non-profit’s mission and its recent performance can be even more helpful than looking at its financial information. As finances have tightened, many non-profit organizations have narrowed their mission and programs supplied to the community. Take a few minutes to review any press releases discussing the non-profit's reaction to the economy and any recent accomplishments. This will help you to determine if the non-profit continues to support the values and goals to which you adhere, as well as its progress in serving the needs of the community.
When you are ready to make a gift, make sure to verify that it is tax deductible. Pay with a check or credit card to the name of the organization and keep a record of your donation in a safe place to file with your taxes next year. This information will be very important in the event that the non-profit runs into financial hardship in the future.
If you are unable to make a monetary gift this year, consider alternative gifts. Volunteering your time can be personally rewarding, and any expenses, such as travel, can be tax deductible. In-kind gifts present another option. Many non-profits have wish lists for items including office supplies and similar items essential to their operations that you may have on hand. Contact your local non-profit organization for more information on opportunities available to you.
Waller Financial is committed to supporting the community through philanthropy. We hope you will join us in continuing to make a gift this year that supports the growing needs in our community. Happy Holidays!
* U.S. charitable giving estimate to be 307.65 billion. (June 10, 2009).The Giving USA Foundation. Available online at http://www.philanthropy.iupui.edu/News/2009/docs/ GivingReaches300billion_06102009.pdf
** Charitable giving. The Better Business Bureau Wise Giving Alliance. Available online at (http://www.bbb.org/us/ Charitable-Giving-Guide
Helpful Hints to Follow When Making Your 2009 Year-End Contributions
Historically, Americans are consistently philanthropic even during times of economic hardship. This is evident in the Giving USA 2009 report, which states that individual giving remained the largest component of giving in 2008 at 75 percent of all giving.* But like many others affected by the economy, you too might be wondering what to consider before making your year-end contributions. We've outlined a few tips to help you assess non-profit organizations, followed by a few different ways you can give this year.
1. Check the financial health of the organization
The economic downturn impacted non-profits significantly, especially those receiving government funding. At a minimum, check the organization’s website for press releases concerning internal finances and the most recent annual report. If it is not available online, you can request a copy of the non-profit’s annual report and financial statements (Form 990) by contacting the non-profit directly. Most financial statements are also available through industry websites, such as www.bbb.org/us/charity or www.guidestar.org.
When reviewing financial statements, check that an organization's total assets exceed its liabilities. It is also important to consider the amount of the organization's assets. The Better Business Bureau Wise Giving Alliance suggests that the charity's unrestricted assets – money received that is not constrained by time or purpose – should not be "more than three times the size of the past year’s expenses or three times the size of the current year’s budget, whichever is higher."* Although, very few non-profits have such reserves, this measure ensures that those who do are using it for current initiatives.
2. Verify the nonprofit’s fund distribution
Next, review the non-profit's expenditures. These are available in the annual report or the Form 990. The Form 990 defines these as Program Services, Management and General, Fundraising, and Payments to Affiliates. Program Services generally cover salaries and any related expenses associated with program delivery. Management and General refer to administrative costs and operating expenses. Fundraising is money used to raise funds, and Payment to Affiliates refers to larger non-profits with member organizations.
Most non-profits adhere to a standard of spending no less than 65 percent of total revenue on program service activities, and no more than 35 percent on fundraising expenses.** While this does not apply to all situations, it is a good rule of measure. You may also consider comparing the financial documents of several similar non-profits to gain an understanding of expenses and what equates to normal revenue distribution. By doing so, you will start to notice red flags as they appear.
3. Research accomplishments and focus on the mission
Double-checking the non-profit’s mission and its recent performance can be even more helpful than looking at its financial information. As finances have tightened, many non-profit organizations have narrowed their mission and programs supplied to the community. Take a few minutes to review any press releases discussing the non-profit's reaction to the economy and any recent accomplishments. This will help you to determine if the non-profit continues to support the values and goals to which you adhere, as well as its progress in serving the needs of the community.
When you are ready to make a gift, make sure to verify that it is tax deductible. Pay with a check or credit card to the name of the organization and keep a record of your donation in a safe place to file with your taxes next year. This information will be very important in the event that the non-profit runs into financial hardship in the future.
If you are unable to make a monetary gift this year, consider alternative gifts. Volunteering your time can be personally rewarding, and any expenses, such as travel, can be tax deductible. In-kind gifts present another option. Many non-profits have wish lists for items including office supplies and similar items essential to their operations that you may have on hand. Contact your local non-profit organization for more information on opportunities available to you.
Waller Financial is committed to supporting the community through philanthropy. We hope you will join us in continuing to make a gift this year that supports the growing needs in our community. Happy Holidays!
* U.S. charitable giving estimate to be 307.65 billion. (June 10, 2009).The Giving USA Foundation. Available online at http://www.philanthropy.iupui.edu/News/2009/docs/ GivingReaches300billion_06102009.pdf
** Charitable giving. The Better Business Bureau Wise Giving Alliance. Available online at (http://www.bbb.org/us/ Charitable-Giving-Guide