ALLOCATING YOUR FUNDRAISING COSTS PROPERLY - DON'T BE A SOP
You've heard of SOP-98-2 right? SOP is acronym for "Statement of Position". Today we're talking about SOP-98-2 or " Accounting for Costs of Activities of Not-for-Profit Organizations...that include Fund-Raising ." SOP-98-2 has been effective since December 15, 1998 and applies to all fundraising activities of NPO's and to state and local government entities although most nonprofit managers haven't heard of it, we've been subject to this rule for over a decade. "Accountability" "Misleading the Public" "How much of your donation goes to the cause". These topics have receive a lot of media play. Your donors want to know "if I make a one dollar donation, how much will go the cause? Typically the answer is 75 to 85%. Most folks would be okay with knowing that 80 cents of your buck go to the cause, yes. But what about the cost of fundraising? If you use a professional fundraiser, it's possible tha...