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ASU Lodestar Center Blog

Research and recommendations for effective, day-to-day nonprofit practice from ASU faculty, staff, students, and the nonprofit and philanthropic community.


Monday, February 28, 2011

Imagine you have just stepped onto the stage before some of the Valley's most influential leaders. A passionate social entrepreneur, you have built an innovative approach to tackling one of our toughest social issues. Your organization is on the verge of a breakthrough. The audience is bursting with other investors capable of bringing significant additional resources to fuel your expansion.

You step to the mic with three minutes to prove you are what today's donors most want nonprofits to be: focused, innovative, self-sustaining, and, above all, effective....It's SHOW TIME!

This is the exact scenario that eight finalists of the "Fast Pitch Social Innovation Expo" will face on March 2, but many nonprofit organizations face a similar situation all of the time. Phoenix is considered one of the most entrepreneurial communities in North America for business innovation and performance, and Valley nonprofits also are doing innovative and impactful work, creating significant social wealth. We aim to expand the network of individuals and organizations that value innovation, accountability and operational stability in top-performing nonprofits.

Social Venture Partners Arizona (SVPAZ), in partnership with ASU SkySong and the ASU Lodestar…

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Friday, February 25, 2011

Welcome to Research Friday! As part of a continuing weekly series, each Friday we invite a nonprofit expert from our academic faculty to highlight a research report or study and discuss how it can inform and improve day-to-day nonprofit practice. We welcome your comments and feedback.

Oh, the high-wire balancing act of nonprofit CEO compensation. Pay your CEO too little, and you won’t attract a skilled leader. Pay too much, and you’ll raise the eyebrows (or ire) of donors, clients, volunteers, and anyone else who looks up your 990 in one keystroke. And should a nonprofit really go over the top with CEO pay, the IRS will come knocking at the door.

What’s an impact-driven nonprofit organization to do? Two things come to mind. First, consult the research and data available on nonprofit CEO compensation. Comparable compensation data helps recruitment and hiring, and protects against excessive compensation claims. For nonprofits in Maricopa and Pima counties, the latest issue of Nonprofit Research Abridged details CEO compensation across budget size and type.

Second, and perhaps more importantly, join in on the conversation about CEO compensation. What are your thoughts on this issue? What has your organization experienced? Did a raise or a bonus help…

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Tuesday, February 15, 2011

The IRS has begun to revoke the tax-exempt status for those nonprofit organizations that have not filed some form of a 990 (information report) for three years. Guidestar estimates that 350,000 to 400,000 nonprofits are in danger of losing their exemptions. A large number of these organizations are smaller nonprofits that previously were not required to file an annual return because their gross revenues were $25,000 or less.[1] If your organization has not filed any of the 990 forms for three years it is likely you will soon receive a revocation notice.

How will I know if my organization has lost its tax-exempt status?
You will receive a notice from the IRS in the form of a letter, Notice CP120A.[2] A copy of this notice is posted on the IRS website and a list of organizations that have had their nonprofit status revoked.[3]

What is the effect of my organization's losing its tax-exempt status?…

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ASU Lodestar Center Blog