gu course handout - giving university · 2020. 4. 8. · line 1e. shows how much of their funding...
TRANSCRIPT
GIVING UNIVERSITY
COURSE HANDOUT
SECTION 1: ABOUT GIVING UNIVERSITY
The mission of Giving University is to _________________________________________
The mission is accomplished four ways:
1.
2. 3.
4.
SECTION 2: DEFINING GENEROSITY
Your initial thoughts on a definition: _______________________________________________________
______________________________________________________________________________________
The Giving University definition: __________________________________________________________
______________________________________________________________________________________
Generosity is more than just giving. Giving could be _________________________________________,
but generosity is always ____________________________________
“Though they have been going through much trouble and hard times, their wonderful joy and deep
poverty have overflowed in rich generosity. For I can testify that they gave not only what they could
afford but far more. And they did it of their own free will.”
Identify 6 characteristics of the Macedonians described above:
1. 4.
2. 5.
3. 6.
SECTION 3. FINDING YOUR PASSION
The 7 types of People In Need:
1. People who __________________________________________
2. People who __________________________________________
3. People who __________________________________________
4. People who __________________________________________
5. People who __________________________________________
6. People who __________________________________________
7. People who __________________________________________
Put a star next to the number of the group you would most likely want to help
When looking at organizations for Giving University, avoid organizations that have a goal other
meeting needs of people: no animals, no environment, no research, no politics.
Finding a cause to be passionate about is important because ______________________________
SECTION 4. INVESTIGATING NONPROFITS
A nonprofit is similar to a for‐profit company because ____________________________________
_________________________________________________________________________________
A nonprofit is different from a for‐profit company because ________________________________
_________________________________________________________________________________
Approximate number of registered U.S. nonprofits: _____________________________________
Nonprofits are required to file an annual 990 tax form. If they are small, they might only file a 990EZ or
a 999‐N. For Giving University grants, you must find an organization that has filed a 990.
SECTION 5. OBJECTIONS TO GENEROSITY
Your list of why people are not more generous:
_______________________________________ _____________________________________
_______________________________________ _____________________________________
_______________________________________ _____________________________________
_______________________________________ _____________________________________
GU list of why people are not more generous:
# Objection Response
1
2
3
4
5
6
7
8
9
SECTION 6: ENTITLEMENT
Define entitlement: ____________________________________________________________________
_____________________________________________________________________________________
What is wrong with saying everyone deserves the basics for free?
1. _____________________________________________________
2. _____________________________________________________
3. _____________________________________________________
SECTION 7: POVERTY
Is worldwide poverty getting better or worse? ___________________
Where is poverty the most severe? ____________________
How is poverty different in the United States? _____________________________________
What is an example of how wealth is created? _________________________________________
________________________________________________________________________________
Why can’t poor people fix poverty themselves?
1. _______________________________________________________________________________
2. _______________________________________________________________________________
3. _______________________________________________________________________________
4. _______________________________________________________________________________
SECTION 8: FREEING UP RESOURCES
What does “A penny saved is a penny earned” really mean? ________________________________
__________________________________________________________________________________
How can a penny saved be as valuable as three pennies earned? ____________________________
__________________________________________________________________________________
Suppose you had this credit card situation: 24% interest, $10,000 balance, 3% minimum payment
#1: What is your minimum payment this month?
#2: How much interest will you pay this month?
Question Your Answer Our Answer
1. What is your minimum payment this month?
2. How much interest will you pay this month?
3. If you make only the minimum payment, how long will it take to pay it off?
4. If you commit to paying $500 every month, how long will it take to pay it off?
5. If you keep “maxing out” your card, how long will it take to pay off?
Useful resource: http://www.creditcards.com/calculators/minimum‐payment.php
Is money the root of all kinds of evil? ______________________________________________________
From the quote, list the characteristics of people who want to get rich:
1. __________________________________________________
2. __________________________________________________
3. __________________________________________________
4. __________________________________________________
5. __________________________________________________
SECTION 9: WHY PEOPLE GIVE
List some reasons people are generous, that tend to lead to more generosity:
Your List Our List
List some reasons people are generous that do not necessarily lead to more generosity:
Your List Our List
List some reasons people give that do not line up with the definition of generosity:
Your List Our List
SECTION 10: GU TRIPS Trips are designed to observe nonprofits in action
You pay for your passport, shots, meals during free time, and recreational activities
Giving University covers airfare, lodging, in‐country transportation, and group meals
You must complete course requirements before you are eligible for a trip
You can recommend new trips, but ultimately the board will decide trips and trip leaders
Investigating Nonprofits
You have the right to view the 990 tax form from any nonprofit
Some small organizations fill out the 990-EZ or the 990 “postcard” They are too small to do a thorough investigation
www.guidestar.orgA nonprofit that makes 990’s available to usUsername: [email protected]: givingu
What to Look for in a 990
Part I, page 1 – Summary Organizations that are too small or too large are
difficult to review, ideally line12 should to be somewhere between $200,000 to $20 million
Compare line 9 (program service revenue) to line 12 (total revenue) – what percent of the money they receive comes from charging for goods and services? If it’s more than 70%, then the organization doesn’t really rely on donations
990: Page 1, Lines 9-12
16,247,607 / 17,136,182 = .95 (95%)
Most revenue from charging customers
990: Page 1, Lines 9-12
284,486 / 15,781,430 = .02 (2%)
Very little revenue from charging customers
What to Look for in a 990
Part III, Page 2 - Accomplishments Read 4a, 4b, 4c
Are all of their activities in line with your passions? Do you want your grant to go to just one or two?
Ideally they list how many people were impacted by each activity. Divide the expenses by the number of people to determine the investment per person.
What to Look for in a 990
Part VII, Page 8 – Highest Compensated Employees Sometimes this page is blank, and you have to
find the information on a page near the end of the packet
How large is the total compensation of the highest paid employee? Does that seem fair?
How many employees are earning more than 170,000 per year?
990: Page 7, Salaries
Two salaries above 170,000 And we learn elsewhere they are married!
What to Look for in a 990
Part VII, page 9 – Statement of Revenue Determines how much of their revenue comes
from government grants
Organizations primarily funded by the government may still do great things, but their reliance on the government is a risk
Divide the number in 1e by the number in 1h. Is it more than .6?
990: Page 9, Revenue/Grants
5,607,981 / 7,162,153 = .78 (78%)
What to Look for in a 990
Part IX, page 10 – Functional Expenses Look at line 1, Grants to other organizations
If it is high, the organization is primarily just giving funds to other organizations, and requiring administrative overhead to do so
Divide line 1 by line 25 (the first column). Is it more than 10%?
990: Page 10, Pass-through Grants
2,314,625 / 57,559,475 = 0.04 (4%)
What to Look for in a 990
Part IX, page 10 – Functional Expenses Go to line 25, total functional expenses
Divide the number in the 3rd column (management and administrative expenses) by the number in the 1st column. Is it more than 10%?
Divide the number in the 4th column (fundraising expenses) by the number in the 1st column. Is it more than 10%?
990: Page 10, Line 25
Management: 518,000 / 8,610,000 = .06
Fundraising: 229,000 / 8,610,000 = .03
(smaller numbers, less than .1, are better)
The Organization Review Document
Describe the organization, its purposes, and its major activities
Is this organization having an impact? Describe the impact
Review the 990s, and discuss your findings
Have you been involved with this organization in the past? How do you expect to be involved in the future?
Local, local, local…
You must research a local organization that helps local people
Avoid national organizations that happen to have a local presence Habitat for Humanity
Ronald McDonald House
Big Brothers, Big Sisters
Help us learn about more organizations!
Giving University 990 Analysis What to Look For What to do How to Score Your Value
and Score
Page 1. Program Service Revenue, Line 8. Measures how much of their revenue comes from charging for stuff
Divide line 8 by line 12 > .8 1 point > .6 2 points < .6 3 points
Pages 7 and 8. Shows the highest paid salaries (might be on a back page line 1d has a value but no salaries are listed)
Count how many people earn more than around $170,000 (use your judgment)
3 or more – 1 point 1 or 2 – 2 points 0 – 3 points
Page 9. Statement of Revenue, Line 1e. Shows how much of their funding comes from government grants
Divide line 1e by 1h > .8 1 point > .6 2 points < .6 3 points
Page 10. Statement of Functional Expenses, Line 1. Shows how much of their expense are giving grants to other US organizations.
Divide line 1(B) by 25 (B) > .8 1 point > .6 2 points < .6 3 points
Page 10, Line 25(C) – the third column total. Shows how much of their expenses are management and overhead.
Divide line 25(C) (third column) by 25 (A) (first column)
> .15 1 point > .1 2 points < .1 3 points
Page 10, Line 25(D) – the fourth column total. Shows how much of their expenses are allocated to fundraising.
Divide line 25(D) (third column) by 25 (A) (first column)
> .15 1 point > .1 2 points < .1 3 points
Add your scores to give you a total between 6 and 18: ______________
If your organization scores less than 15, it will not be approved by the board.
If your organization scores 15 or 16, it is unlikely to be approved by the board.
If your organization scores 17 or 18, it is likely to be approved by the board, as long as it meets the other
requirements (i.e., the organization is dedicated to serving people in need in your local area).