You are about to embark on a major project - a board development initiative, a fund development plan, a strategic planning session, a capital campaign.

You are not an expert in these areas, so you decide to find a consultant to help. Your board suggests creating a Request for Proposals - an RFP - to have consultants bid on the work. In that way, you will be able to compare all their ideas and approaches, and get the best price.

Before you head down this path, think again. There are many reasons why RFPs are not only ineffective, but downright self-defeating for the work you are trying to do.

RFPs Are Self-Defeating for Your Organization
There are several reasons RFPs will not get your organization what you need..

Doctor, Give Me The Following
Picture a phone call to your doctor: "I have chest pain. I need you to run the following tests and prescribe the following treatments. I need you to tell me what that will cost and how long it will take, because I want to shop around."

Silly? Of course. We consult a doctor for the experience, wisdom and expertise we do not have.

Seeking a consultant via RFP means your staff / board will be telling the "doctor" - the consultant - precisely what treatments you want. An RFP will therefore not get you what your organization really needs; it will only get you what you think you need.

(Note: Many consultants choose not to respond to RFPs for precisely this reason. They know how often groups need something different than they are requesting!)

Leveling the Playing Field
RFPs are most commonly used in government work. It is therefore important to understand why that is so. It is not only to get the best price, but more importantly, to take the politics out of the decision-making process, to create a level playing field.

In a government setting, where it is important to prevent political cronyism, such fairness matters. However, for your organization, where you might be seeking a mentor for the leaders of your organization, or a guide to bring your fundraising to the next level - that level playing field is irrelevant. If what you are seeking is someone to help you excel, an RFP is not suited for that.

The Consultant / Client Relationship
Because most consulting engagements have to do with human interaction (teaching and learning, facilitating, helping, guiding, planning), one of the most critical factor in determining the success of your consulting engagement will be the relationship itself - the fit.

Unfortunately for building strong relationships, the RFP process is by its nature an adversarial one. The client is assumed to hold all the control, asking a pool of suitors to compete for the right to work for the organization. To fully understand the depth of this adversarial relationship, picture writing a grant proposal for a funder you feel is asking you to jump through hoop after hoop.

That is what consultants feel like when responding to an RFP. The difference between a consulting relationship and a grant, however, is that the work you will want that consultant to do is highly interpersonal. Starting that relationship on an adversarial and defensive note is not a great way to ensure success!

Getting All Those Good Ideas!
We have heard more than one organization state that they like RFPs because they get all those good ideas, and don't have to hire all those organizations. They choose one consultant, but gain all that additional wisdom for free!

I know once you see that in writing you can see what's wrong with that picture. Even just typing it makes my fingers hurt! Sadly, though, this is a very common practice. And it is not only harmful to the consultant, but to everyone involved, because the degree of impact we can have in our community is directly related to the degree to which we walk the talk of our values.

Lastly, Low Bid Is No Way to Find a Great Teacher
Or a great doctor. Or a great counselor. Or a great confidant. Or a great consultant.

RFPs Are Self-Defeating for Your Community
In addition to RFPs being self-defeating for your organization, RFPs are also self-defeating for the very reason your organization exists - to make your community a better place to live.

Lack of Focus on Outcomes
RFPs rarely emphasize outcomes. Instead, RFPs tend to provide a list of tasks to be done or deliverables such as a plan, a workbook, a training. What RFPs fail to mention is the difference the organization wants all those tasks and deliverables to make, and for whom.

The best definition of a successful outcome we have seen an RFP aim for is "develop a sustainable program that will allow X number of people to receive service each year. Show how you will measure results." And of course the RFP had already shown how to measure results - how many people go through the program, and perhaps whether those individuals thought the program helped them.

If organizations are to focus their work on the difference they want that work to make in the community, it would be very difficult to craft an RFP to accomplish that.

Competition
People in the Community Benefit Sector complain almost incessantly about competition. And yet RFPs, like grants, are all about competing for a scarce resource - in this case, a consulting gig. If we want to foster a spirit of cooperation in our sector, RFPs go directly counter to that.

   

The Alternative to RFPs
If RFPs are self-defeating, what can an organization do instead? The following is just one scenario. We are sure once you start thinking in this way, you will develop others.

1. Host a "Craft the Project" Session: Invite all the consultants on your list to meet together to help you craft the Scope of Work for your project. Have all those smart people work alongside your organization's board and staff to aim the Scope of Work towards accomplishing the outcomes you are hoping to achieve. Offer to pay a stipend for their participation, to encourage them to see this as a job where they will be expected to share their wisdom and experience (rather than simply attending an informational meeting).
2. From there, work with that group of consultants to determine the best way to choose the consultant (or team of consultants) to work with. Depending on the type of work to be done, the group may determine that it is best to have you interview individual consultants who were part of that initial team. (Clearly those are consultants who have already shown an interest, and you will have had the opportunity to get a sense of their skills and the potential fit with your organization.)
   

On the other hand, there may be projects for which it makes sense to have the entire group stay together as the consulting team. The group can then decide how that can work in practice.

The more you can remove competition from the work you have ahead, the more you will remove the adversarial nature of hiring a consultant. From there you will be sure to have all the best minds at the table, all working with you and with each other to aim your work at the best possible outcome - making a significant difference in your community.

by Hildy Gottlieb
(c) ReSolve, Inc. 2009    
ATTRIBUTED TO:  http://www.help4nonprofits.com/UseItToday/UseItToday-AlternativesToRFPs.htm

Did you know the new health care legislation would require your association to issue possibly hundreds or thousands of Form 1099s every year?  

In the recently passed health care legislation, all employers would be required to file a 1099 with the IRS for every transaction with a for-profit vendor over $600 a year.  This includes both one-time payments and cumulative payments over the year.  Imagine filing reports for office supplies, meeting registrations, office cleanings, outside consultants, hotel stays, or any payment you make to a business.  The paperwork, cost, and time would be a nightmare, especially for smaller staffs.  

ASAE is working with Congressional offices on 1099 repeal legislation, and we can keep the momentum for repeal going with your help:

• Sign the ASAE letter opposing the 1099 requirements
• Submit comments to the IRS through their website
• Learn more about the issue at our program "The New 1099 Requirement: Why It Will Impact Your Association"

For more information on this subject, please contact ASAE's Public Policy Department at (202) 626-2703 or publicpolicy@asaenet.org. 

New Digital Catalog for Nonprofits and Libraries

Now, nonprofits and libraries have an all new, easier way to get donated software and other technology from major technology brands like Microsoft, Adobe, Cisco, Intuit, and more. Our new interactive digital catalog features a selection of top requested products and popular resources. With easy to use search tools, intuitive sections to browse, choosing products for you and your organization just got easier.

Choose the Products That are Right for Your Organization

The new catalog allows you to browse, search, navigate, and share TechSoup's offerings in an interactive fashion. These functionalities will help you find products. And they will connect you with educational resources, such as articles, archived webinars, forums, and blogs, to help you make the best tech decisions for your organization.

Browse

We have created six intuitive categories to help your nonprofit or library determine which products best meet your needs.

•     Browse by Organization Type
•     Browse by Technology Solution
•     Browse by Top Requested Product
•     Browse by Popular Resource: Content and Community
•     Browse by Special Program
•     Browse by Donor Partner

Search

We've made it easier than ever to help you find what you're looking for.

•     Search by keyword
•     Search by table of contents
•     Search by page

Navigate

The catalog offers multiple tools, including bookmarks, zoom, and print features to help you navigate the sections that are of interest to you.

Share

Need to discuss some of the donations you found with a colleague? Want to share a great blog post? With a quick click, you can share the information in the catalog via email and social media channels, such as Facebook and Twitter, to name a few. Here's how:

•     Email to a colleague or friend: Click on the envelope icon located on the top right of the catalog page. You'll be prompted to type your email address and your friend's email address and to add a personal comment.
•     Share via Facebook: Click on the person icon located on the top right of the catalog page and choose "Add to Facebook".
•     Share via Twitter: Click on the person icon located on the top right of the catalog page and choose "Tweet this".

Multiple Catalog Versions

How would you like your catalog? Choose from multiple versions and pick the one that works best for you:

•    Interactive version

•     Downloadable, printable version

•     Accessible text version
•     Accessible audio version

We Value Your Feedback

It is our hope that this digital catalog will help you fulfill your mission and meet the needs of the communities you serve. We are currently collecting user feedback on every aspect of the digital catalog in order to make it a better tool. We encourage you to post your feedback, questions, comments, and suggestions in the TechSoup Town Hall Forum.

As a 501(c)(3) nonprofit ourselves, we understand that nonprofits and libraries are forever asked to do more with less. Browse our digital catalog today and learn how we can help.

This catalog was last updated in July 2010. Watch out for the new edition in October. Please be sure to verify product availability and admin fees through our Get Products page before completing your donation request.

This article attributed to TechSoup

We are looking for a great fundraising consultant - consider applying or spread the word!

TransForm, based in the San Francisco Bay Area, is excited to do some thinking and planning to set us on a path for individual fundraising success over the next five years.  But we can't do this alone: we need an experienced fundraising expert to work with us from early September through early-November 2010 to:

1. conduct an audit of our current fundraising activities;
   
2. lead the creation of a 2011 annual fundraising plan;
   
3. lead the creation of a five-year fund development plan.
   

Please check out the RFQ at http://transformca.org/files/RFQ_Fundraising_Consultant_August_2010.pdf and consider applying. Thanks!

Sara Marcellino, Development and Grants Manager
TransForm (formerly TALC, the Transportation and Land Use Coalition)

Search Engine Submission - AddMe

Video: Small Tax Exempt Org Revised Filing Deadline

IR-2010-87, July 26, 2010

WASHINGTON - Small nonprofit organizations at risk of losing their tax-exempt status because they failed to file required returns for 2007, 2008 and 2009 can preserve their status by filing returns by Oct. 15, 2010, under a one-time relief program, the Internal Revenue Service announced today.

The IRS today posted on a special page of IRS.gov the names and last-known addresses of these at-risk organizations, along with guidance about how to come back into compliance. The organizations on the list have return due dates between May 17 and Oct. 15, 2010, but the IRS has no record that they filed the required returns for any of the past three years.

"We are doing everything we can to help organizations comply with the law and keep their valuable tax exemption," IRS Commissioner Doug Shulman said. "So if you do not have your filings up to date, now's the time to take action and get back on track."

Two types of relief are available for small exempt organizations - a filing extension for the smallest organizations required to file Form 990-N, Electronic Notice (e-Postcard) , and a voluntary compliance program (VCP) for small organizations eligible to file Form 990-EZ, Short Form Return of Organization Exempt From Income Tax.

Small organizations required to file Form 990-N simply need to go to theIRS website, supply the eight information items called for on the form, and electronically file it by Oct. 15. That will bring them back into compliance.

Under the VCP, tax-exempt organizations eligible to file Form 990-EZ must file their delinquent annual information returns by Oct. 15 and pay a compliance fee. Details about the VCP are on the IRS website, along with frequently asked questions.

The relief announced today is not available to larger organizations required to file the Form 990 or to private foundations that file the Form 990-PF.

The IRS will keep today's list of at-risk organizations on IRS.gov until Oct. 15, 2010. Organizations that have not filed the required information returns by that date will have their tax-exempt status revoked, and the IRS will publish a list of these revoked organizations in early 2011. Donors who contribute to at-risk organizations are protected until the final revocation list is published.

The Pension Protection Act of 2006 made two important changes affecting tax-exempt organizations, effective the beginning of 2007. First, it mandated that all tax-exempt organizations, other than churches and church-related organizations, must file an annual return with the IRS. The Form 990-N was created for small tax-exempt organizations that had not previously had a filing requirement. Second, the law also required that any tax-exempt organization that fails to file for three consecutive years automatically loses its federal tax-exempt status. The IRS conducted an extensive outreach effort about this new legal requirement but, even so, many organizations have not filed returns on time.

If an organization loses its exemption, it will have to reapply with the IRS to regain its tax-exempt status. Any income received between the revocation date and renewed exemption may be taxable.

Subscribe to IRS Newswire

This article attributed to the IRS

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Comprehensive solution is built on the Microsoft Dynamics CRM 4.0 platform, delivered in Microsoft Outlook or a Web browser and includes campaign management, pledge and gift processing, major gift prospecting, designation processing, instant acknowledgement and constituent self-service.

Chesapeake, VA (PRWEB) June 2, 2010 -- StratusLIVE has announced that United Way of Greater Cincinnati (UWGC) has selected its comprehensive constituent relationship and campaign management system as its technology platform for the future. "We're thrilled to have United Way of Greater Cincinnati as a StratusLIVE client," says Jim Funari, chief executive officer of StratusLIVE. "They have been a leader within United Way nationally, as well as in their community, for years. We look forward to playing an important role in their continued success."

"For several years we have been executing an exciting new approach to achieving significantly greater impact on the major human services issues facing our region, our Agenda for Community Impact," said Robert C. Reifsnyder, UWGC president and CEO.
"In order to generate the resources necessary to successfully pursue our Agenda, it is critical to build deeper relationships with our constituents. This will help us in identifying the issues most important to them and then defining their potential roles in meeting the engagement and financial goals required to address those issues. We anticipate that the StratusLIVE product will be an important tool in this effort," Reifsnyder said.    

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StratusLIVE, LLC is a leader in bothon-demand and on-premise donor management and fundraising software solutions for the nonprofit industry. StratusLIVE for Fundraisers is built on the latest Microsoft Dynamics 4.0 CRM platform and delivered in the familiar Microsoft Outlook and Web browser, interfaces. The product provides ease of use, familiarity and flexibility - all backed by the over 35 years of collective nonprofit experience, of the company's leadership. Fundraising-based nonprofits can now leverage their existing IT investments with the latest in technical innovation from Microsoft. The result is a cost-effective, familiar and easy to use constituent management solution, which ensures a low-risk investment for any nonprofit. For more information please visit: www.stratuslive.com

Article attributed to www.prweb.com/releases/United_Way/StratusLIVE/prweb4072804.htm