2012 New Years Resolutions for Board Members

You can download the music through Amazon (my preferred music provider) here:  Amazon – Casting Crowns Christmas Album
( I highly recommend the entire album – CC has wonderful arrangements of classic carols and beautiful new Christmas songs)

There is also a great choral arrangement of this version – our HS Show Choir performed it at this year’s Christmas Feast event – a great piece for a choir:
Word Music – Anthem "I Heard the Bells on Christmas Day (Peace on Earth)"

Merry Christmas from Lawlatte!

Caramel Stuffed Apple Cider Cookies

YUM!

“Much has already been written about Steve Jobs and the book, but since he is perhaps the exemplar of the New Normal, I thought it might be useful to summarize some thoughts on what we as lawyers might want to draw from his life. For those who don’t want to work through the whole book, there’s an excellent article in Time that covers the major points. ….”

via Read more – 10 Ways for Lawyers to Find Their “Inner Steve Jobs”.

Question:
I have a nonprofit 501(c)(3) exempt status, and a friend has asked me if she could use my 501(c)(3) to apply for grants for a business venture. What are the pros and cons for letting someone use my nonprofit’s exempt status? I don’t feel comfortable about sponsoring another organization.

Answer:
It’s acceptable for a §501(c)(3) to act as a “financial conduit” for another §501(c)(3) or similar charitable nonprofit. However, it is considered to be an abuse of your nonprofit status to funnel nonprofit grant funds to a for-profit venture, and your nonprofit risks the loss of its §501(c)(3) status.   I was unclear whether your friend was involved with a for-profit or non-profit organization, but the term “business venture” seems to indicate a “for-profit” nature. This would be the first thing to confirm, before proceeding with your consideration of whether your nonprofit should act as a financial conduit.

Some things to analyze as you consider a request to be a financial conduit for another organization:

Risk – Even if the friend’s project is another §501(c)(3) organization, or an unincorporated nonprofit that clearly has a charitable purpose (and not a “for-profit” business), you are right to be cautious. The “financial conduit” is responsible for the grant dollars that flow through to the target entity. If those funds are misused or lost or stolen, your nonprofit might have to repay the lost amount to the granting organization, plus endure the public shame that would come with the public knowledge of the lost funds.

Relationship – Usually, nonprofits that are not §501(c)(3) organizations, or for some reason do not qualify for a grant (for example, they don’t have a large enough budget, haven’t been in existence for long enough, or are too small to be a §501(c)(3)), have some sort of pre-existing close relationship with the financial conduit. For example, in my home town, the local Food Pantry acted as a financial conduit for the local Thrift Shop on a site improvement grant — this was appropriate because the Food Pantry was the landlord, and both had similar stakeholders and constituents, so it was a natural fit.

Mission – If your nonprofit is very different from your friend’s nonprofit, it might be financially awkward for your nonprofit to act as a financial conduit – it might be tough to show the funds on the books (to find an appropriate accounting way to represent the information), and your stakeholders might question why you are funding a project outside of your primary mission.

Bottom line – while it is considered an acceptable practice for one nonprofit to serve as the grant conduit for another (several granting entities provide for a separate set of forms for the financial conduit, so granting organizations support and allow this practice), it requires your board’s on-the-record approval with “open eyes” to the risk and responsibility of the status as financial conduit.

Link to the post:  One Trail-Blazing Small Town

Link to the Carroll County Wabash & Erie Canal Center for more information:  Wabash & Erie Canal

There’s a lot more to the Canal Center than the trails – all of which is top-notch.  Check out the Canal Interpretive Center, the Outdoor  Pioneer Village, take a ride on the Canal Boat, walk the trails or rent a bike to ride the 10+ miles of trails.

What’s great about this center is that it has been built, and it is maintained, solely through volunteer efforts.  The local dedication is a great example to other nonprofits in the area, and has won state and national honors for the site and the volunteers.

Thanks to the blogger for the nice post – which provides a great lead-in for me to urge you to check it out!

If you want to know more about the video and the paintings represented check out this link:  500 Years of Women in Art – Info

Nonprofits – pay attention – If you don’t connect with social media, you will see a decline in attention to your organization as the general population shifts attention to instant content.

US National Debt Clock

(Click on image for larger picture)

US Debt Clock 07-13-11 approx 13 07