![]() Fundraising technology provider Blackbaud was hacked in a ransomware attack in May. The firm has admitted it paid a ransom to encourage the cybercriminals to destroy the copy of the stolen data. NTEN (Non-Profit Technology Enterprise Network) President Amy Sample Ward says this hack should be a wakeup call: "If this doesn't increase your attention and investment in staff training, password management, and security, I don't know what will," she writes on Twitter. Portland based NTEN “aspires to a world where all nonprofit organizations use technology skillfully and confidently to meet community needs and fulfill their missions.” Blackbaud has been criticized for not disclosing this externally until July and for having paid the hackers an undisclosed ransom. Doing so is not illegal, but it goes against the advice of numerous law enforcement agencies, including the FBI, NCA and Europol. "My main concern is how reassuring - impossibly so, in my opinion - Blackbaud were to the university about what the hackers have obtained," commented Rhys Morgan, a cyber-security specialist and former student at Reading University, whose data was involved. "They told my university that there is 'no reason to believe that the stolen data was or will be misused'”. Blackbaud has said it is working with law enforcement and third-party investigators to monitor whether or not the data is being circulated or sold on the dark web, for example. “I can't feel reassured by this at all. How can they possibly know what the attackers will do with that information?" Morgan said. ![]() Blackbaud added that it had been given "confirmation that the copy [of data] they removed had been destroyed". The BBC has reported that at least eight universities in the UK and Canada have had data stolen about students and/or alumni and Human Rights Watch and the children's mental health charity, Young Minds, have also confirmed they were affected. In some cases, the stolen data included phone numbers, donation history and events attended. Under the EU General Data Protection Regulation (GDPR), companies must report a significant breach to data authorities within 72 hours of learning of an incident - or face potential fines. The UK's Information Commissioner's Office [ICO], as well as the Canadian data authorities, were informed about the breach last weekend - weeks after Blackbaud discovered the hack. An ICO spokeswoman said: "Blackbaud has reported an incident affecting multiple data controllers to the ICO. We will be making enquiries to both Blackbaud and the respective controllers and encourage all affected controllers to evaluate whether they need to report the incident to the ICO individually." ![]() Blackbaud’s Sales during the first three months of the year totaled $223.6 million, up nearly 4 percent from the same period in 2019, according to results the firm reported last week. The Daniel Island, South Carolina-based technology company also swung to a profit for the quarter, earning $4.6 million compared to a $1.1 million loss a year earlier. Blackbaud sells recurring subscriptions to its software products to charities, colleges, churches, grade schools and other nonprofits. That philanthropy industry has struggled during the pandemic, as discretionary incomes and donations have cratered. But the turbulence could create an opportunity for Blackbaud. Among other things, its tech platform supports virtual events and meetings. CEO Mike Gianoni told investors during a conference call on Wednesday the company “hasn’t missed a beat operationally,” stating that it’s platform has helped schools, among others, move to the web during the lockdown. He said the pandemic could push more organizations to realize they need to adopt cloud software. Obviously not at all phased by the hack.
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According to the latest-available employment data by Johns Hopkins University researchers, for the first time ever, the nonprofit world’s work force is larger than the manufacturing industry work force. Nonprofits had an estimated 12,488,563 workers on their payrolls in 2017, manufacturing companies had 12,456,203 workers. The data in the study includes all workers — full-time, part-time, and contractors.
Hotels, restaurants, and other entities that involve providing lodging or food services have a larger labor pool than nonprofits, at 13.7 million workers, and employees at retail stores number 15.9 million. According to the study, nonprofit workers now account for about 10.2% of the United States national work force, easily exceeding other industries such as construction (7.1 million) and finance and insurance (5.9 million). The nonprofit world has been growing faster than the for-profit work force for several years. The nonprofit world’s overtaking of manufacturing is also partly the result of a slow-growing manufacturing industry. From 2016 to 2017, the number of nonprofit workers increased by almost 2 percent, while the number of employees in the business world increased by 1.5 percent. Another nuance of the study showed that rural areas have higher nonprofit shares of employment than do the smaller urban or metropolitan areas. In smaller metropolitan areas, nonprofit workers account for about 7% of the work force. In rural areas, they account for 8.7%. However, in a separate study, the repercussions of low pay within the nonprofits themselves, create high turnover and difficulties in hiring employees from diverse backgrounds to carry out their missions. Some nonprofits are taking steps to offer better pay and benefits, sabbaticals, and professional development for all workers, not just senior leaders. But only thirteen people of color and 29 women head the nation’s 100 biggest nonprofits — and all the rest are led by white men, according to an exclusive analysis conducted by Michael Theis for the Chronicle of Philanthropy. Soros Heir Is Offering Nonprofits Free Online-Giving Tools Through Give Lively - michael towner10/2/2018 Jonathan Soros, an investment manager who is one of George Soros’s five children, wants nonprofits to raise money online without spending on pricey software.
So, in a move that’s raised some eyebrows, he and his wife, Jennifer, founded Give Lively, a company that started offering free digital-fundraising software to charities a year ago. The company provides the basics: a way to generate donation forms for websites and emails. But it also gives charities the ability to raise money through text messages, the means to have supporters create their own fundraising pages, and, soon, a tool to sell event tickets. Nonprofits pay only a relatively small, but standard, payment-processing fee. The couple wants to save nonprofits money and deliver online-fundraising services that are just as strong as what’s on the market today — if not stronger, says Jonathan Soros, 48. Jonathan says he and Jennifer are not out to make money. Because the company offers free services, the couple — mostly known for backing liberal causes — sees it as a philanthropic project, despite Give Lively’s status as a limited-liability company rather than a 501(c)(3) nonprofit. Jonathan Soros likened the couple’s funding of Give Lively to an "impact investment," albeit one where no profit will be made. Effectively what we’re doing is subsidizing the entire field of nonprofits that use this product," he says. Most of the nonprofits that have used Give Lively so far are small. Still, some have recognizable names, like the Malala Fund, StoryCorps, and the Women’s March L.A. Foundation. The company might be one to watch if it catches on with lots more nonprofits, experts say. But many nonprofit tech consultants and people who work at competing companies are skeptical of its offerings. Civic Nation, which launched in 2015 and houses an array of advocacy and awareness campaigns, started using Give Lively’s donation pages starting in mid-2017, says Jenn Brown, the group’s executive director. The products are simple to use, she says, and "by far the best deal for our nonprofit." Today, the charity, which projects that it will raise about $10 million this year, uses the company’s text-appeal services and its tool to allow donors to create fundraising pages for campaigns. "As a nonprofit, my number one priority is to ensure as much money as possible is going toward the causes that people are donating in support of," she says. "So my priority is to work with online processors who charge us the lowest fees possible." To generate a profit, other companies that offer similar products to Give Lively's tack on fees — sometimes up to 5 percent, depending on the service being used and how large the nonprofit is, experts say. Most providers also ask charities to pay for a monthly or annual subscription, with the price based on how large the transaction fees are. By not asking for any payments beyond transaction fees charged by Stripe, a payment processor, Give Lively is a veritable unicorn. Its promise of free software is virtually unheard of in the nonprofit-tech space. And that’s made some observers skeptical. How can a software company continue to grow, improve its tools, and compete with the likes of Classy, Network for Good, and Blackbaud with only one source of funding and no revenue? "Seems unsustainable," says Sarah Sebastian, director of brand communications at Qgiv, a company that also offers digital-fundraising tools. Some have questioned whether there’s another agenda. For instance, is the company looking to hook a lot of nonprofits by giving away services, only to sell its company to another vendor? The answer to that is "no," DeParolesa says. "Our ethos is such that the idea of selling to a for-profit entity is sort of the antithesis of how we began," he says. In late August, the Soroses approved a company statement drafted by DeParolesa called the "Forever Free Pledge." The pledge promises that all Give Lively’s current services — and some items still in the works, like the event-ticketing tool — will be free in perpetuity to all users, with no commitments. "We will never charge any annual fees, setup fees, hidden fees, or platform fees for our Forever Free Services," says the statement, which went online in August. "We pledge to offer each of our Forever Free Services for so long as we run each service." A footnote at the bottom of the pledge says: "Stop trying to find a catch. There’s no catch." Give Lively has some limitations. The company can integrate its fundraising tools only with Salesforce. That means charities using other donor databases — like Blackbaud’s Raiser’s Edge — won’t get supporter data sent directly to their systems. They’ll have to download it and then manually import it into their databases — creating an administrative task that many charities don’t like. Give Lively will be investigating ways to work with other fundraising software this year, but DeParolesa is unsure how long it’ll take to offer such services. Today, nonprofits also need to use the payment processor Stripe as part of their Give Lively account. That service typically takes two days to verify credit-card payments for nonprofits. It takes seven days for contributions made by donors directly from their bank accounts. Among other reasons, the company uses Stripe because it offers good rates for processing nonprofit donations, DeParolesa says. Give Lively, however, will start allowing nonprofits to use PayPal as its payment processor later this year, which charges fees similar to Stripe’s, but can send money to nonprofits faster in most cases. Jonathan Soros acknowledges that it might be hard to get nonprofits that are used to doing business with other companies to join Give Lively. "The transaction cost of shifting is not zero," Soros says. Still, he thinks all nonprofits — no matter their size — care about saving money: "It really feels difficult to hand over a percentage of your revenue to anybody, whether you’re small or large." Michael Towner A test website for the Single Portal Initiative — a central electronic system that would allow charities to register in multiple states — went online Monday, announced state charity officials at a conference.
The new effort allows nonprofit officials to test the site and enroll their organizations to solicit donations in Connecticut and Georgia. Charities should be able to register with more states by mid-February 2019 during a second testing phase, said Chad Canfield, operations manager for the charitable-trust section of the Office of the Attorney General of Michigan. As more states join and charities provide their feedback, the site will be improved, he said. "What you see today or what you see tomorrow when you go back and look isn’t what the project is going to look like in six months or a year from now," Canfield said. The idea for the Single Portal Initiative has been in the works for many years, Canfield noted. The goal of the project is to provide a central online registration system for charities and professional fundraisers to fill out for their annual registrations in multiple states. The system would save charities time and money, officials say, because nonprofits would only have to enter in certain data and submit key documents — such as an informational tax form 990 — once. For many charities, the system would replace the bureaucratic labyrinth of completing applications — and often submitting the same documents — for multiple states. The test website launched Monday allows only charities to register, not third-party fundraisers — a feature the project’s developers expect to add. Other features they hope will come later include an analytics tool that will help charity regulators detect fraud and negligence, said Joshua Goldstein, vice president for product at CityBase, which is part of the development team on the site for state officials. State officials also want charity data to be automatically entered from the Forms 990 that organizations file with the Internal Revenue Service, he said. Currently, the test site has separate fields to enter some of the same data for registration in both Connecticut and Georgia, Goldstein noted — though the goal is for charities to enter each piece of information only once to register with many states. The bigger aim, he said, is for the registration process to become much faster. "If you’re a charity and you decide to register in a state, you should be able to complete that registration same day, if not same hour," he said, "and that’s our ambition." Michael Towner When donors are asked what charity they would support if they could give to just one, 54% selected one of only 20 organizations, according to a new study.
The findings show that a small number of national and international groups hold a privileged place in the philanthropy of American donors. Even though they were not prompted with a list of charities to choose from, the respondents most often picked a brand-name group such as the American Humane Society, Doctors Without Borders, Feeding America, Goodwill Industries, Planned Parenthood, the United Way, and Wounded Warrior Project. Among the 20 were five that were particularly popular. 36% of donors picked one the following: Alsac/St. Jude Children’s Research Hospital, the American Cancer Society, American Red Cross, Salvation Army, or Unicef. Donors preferred large organizations, underscoring the challenges small charities face from well-resourced competitors. Only 23% picked a favorite charity with annual revenue of $50 million or less; only 5% picked one with revenue of $1 million or less. 38% picked a charity with annual revenue of $1 billion or more. The favorite charities cited by donors had a median annual revenue — including donations, government support, and earned income — of $399 million. A bright spot for small organizations: The top donors, those who gave $2,000 or more during the 12 months preceding the survey, were most likely to pick a favorite charity with revenue under $50 million. Donors overwhelmingly favored organizations that work globally, as opposed to those that work exclusively stateside: 60% of donors chose a favorite charity that supports programs internationally. However, only 2% picked a nonprofit that works exclusively overseas. Political conservatives, parents with children at home, and Christians were most likely to favor global charities. By cause, health-related charities were the most commonly picked as favorites, cited by nearly one in three donors. Among other findings: Impact matters. The three most commonly cited reasons for selecting a particular charity as a favorite were the organization’s results (32%), the donor’s trust (28%), and the donor’s personal connection to the cause or charity (22%). Overhead spending doesn’t matter so much. 84% of donors picked a charity that spends 10 to 29 % of revenue on administrative costs, according to that charity’s informational tax forms. The average "overhead ratio" for the charities donors favored was just under 19%. But only 12% of donors said that using their money efficiently was the key factor in why they picked their favorite charity, and a February report by the same researchers discovered a charity’s spending on administrative costs had little impact on giving. Religion’s influence is muted. 82% of people who attend religious services at least monthly picked a favorite charity that was not faith-based. Donald Trump is the last Republican candidate standing and will now go up against Hilary Clinton or Bernie Sanders.
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