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Where is the money going? Where is it needed?
America’s givers are going back to school. The most recent “Million Dollar List,” compiled by the Center on Philanthropy at Indiana University, reports that an overwhelming majority of 2006 fourth quarter
gifts of $1 million or more were made to higher education efforts. Higher education efforts get an A+; donors gave 265 gifts of $1 million plus to funding colleges and universities in the United States.
The survey, released quarterly, shows health-related issues and health causes are feeling good – they placed second on the list, followed by religion, and other education (K-12, libraries, tutoring, etc).
Rounding up the list of biggest beneficiaries were human services and public society benefit programs, including human and civil rights causes. Surprisingly, despite growing global concern and awareness
of environmental issues, this group fared poorly, garnering only 3% of total gifts made.
An additional study conducted this spring by the Center on Philanthropy and Google shows that less than one-third of all charitable giving is directed toward the poor and others in need. Just 8% of all
donations provided food, shelter and other basic necessities. The study revealed that only 20 cents of every dollar given to religious organizations fund programs for the poor and economically
disadvantaged. While healthcare and education are popular causes, as mentioned above, just 10 cents per dollar is directed to health programs for the needy; less than 9 cents of each dollar goes toward
scholarships.
When supporters contribute to Kids in Crisis, they’re directing efforts to several of these areas of interest. As a comprehensive counseling center and temporary shelter for children in
crisis, Kids in Crisis provides basic care for abused and neglected children, in addition to specialized educational support and complete medical care (in the TLC Health Clinic located on-site). “Supporting
Kids in Crisis allows donors to acknowledge their interest in many different areas,” says Shari Shapiro, Executive Director, “and enables us to continue to provide unmatched comprehensive care to those who
need it most.”
Money: Getting When You Give
Did you know that by donating to Kids in Crisis your firm can receive additional state tax credits? Kids in Crisis is part of a select group of tax-exempt organizations – and one of just a dozen Fairfield
County organizations -- who qualify for The Connecticut Neighborhood Assistance Act (NAA) Tax Credit. For corporate givers, that means an additional 60% tax credit of the amount contributed (with a minimum
cash donation of $250) directed to the Kids in Crisis Nursery program. Companies have up to two years to claim the tax credit, making corporate giving to Kids in Crisis a generous – and financially savvy –
decision.
In recent years, several area companies have used this tax credit when donating to Kids in Crisis, earmarking funds for the Crisis Nursery, which provides temporary emergency shelter and care to neglected
and abused children newborn to age 12. Residents of the Crisis Nursery receive comprehensive care around the clock, including medical care, educational support and counseling and therapeutic care, as well
as the gentle love and support of trained professional staff, 24 hours a day.
“Companies like Nestle Waters give for the right reasons,” says David Dickson, Director of Tax, Nestle Waters North America, “and utilizing this tax credit allows us to do more.” Nestle Waters has utilized
the Neighborhood Assistance Act Tax Credit for six years, as part of its continuing support of Kids in Crisis.
Firms interested in taking advantage of the Neighborhood Assistance Act (NAA) Tax Credit, MUST act by filing the necessary forms (available at CT.gov.org) between September 15 and October 1 ONLY. If you
interested in learning more about the Kids in Crisis Nursery program or would like to visit our facility to consider utilizing the NAA tax credit, please contact Alon Marom, Director of Corporate Giving at
622-6556.
Funding operating costs
It’s not sexy. Chances are there won’t be banners hanging from the building announcing your financial commitment. But the board and staff of a nonprofit that receives funds dedicated to covering operating
expenses will be thankful for more than just your dollars – they will appreciate your insight on how programs can be directly affected by assisting with administrative costs.
The fact is that organizations need help “keeping the lights on,” paying salaries, administrative costs, insurance expenses, building maintenance and the like. While it may be good salesmanship for
nonprofits to tell donors that “every dollar donated goes to program costs,” it’s done so at a cost. When infrastructure is not supported, programs ARE impacted as staff faces uncompetitive salaries,
limited staff development opportunities and insufficient investments in systems and technology resources.
The Independent Sector, a growing consortium of nonprofit organizations, foundations and corporate philanthropy programs has recognized the need to fund administrative costs, calling on donors to “choose to
provide general operating support over project support whenever it is appropriate, feasible and the goals of the foundation and nonprofit are closely aligned.”
Funders – companies and individuals – who prefer to support a particular program may want to consider factoring in the administrative and fundraising costs a nonprofit may incur to run the program. That
way, says The Independent Sector, those expenses don’t diminish an organization’s effectiveness.
At Kids in Crisis, general management and development costs account for less than 15% of total annual expenses. “We are – and have always been – mission driven,” says Shari Shapiro, Executive Director of
Kids in Crisis, “which is why we have been able to keep our operating expenses low. We want our funders to know we pay close attention to cost management at all times, but particularly when it comes to
operating expenses. Our goal is to serve the children, and to do so by providing innovative ideas from talented staff.”
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