OCTOBER1994 Philanthropy Journal of North Carolina • 19 SOFTWARE/ GRANT GIVING MicroEdge, Inc. 1114 1 St. Avenue New York, NY 10021 1-800-889-0890 DOS, Windows and Mac versions available. Riverside Software, Inc. 417 W. 120th St. New York, NY 10027 (212) 678-7077 The Grants Manager • Matching Gifts ■ Riverside Grants SOFTWARE/ PLANNED GIVING Blackbaud, Inc. 4401 Belle Oaks Drive Charleston, SC 29405 (800) 443-9441, FAX (803) 740-5410 Software for fundraising, fund accounting, planned giving, academic administration PG Calc Incorporated 129 Mount Auburn Street Cambridge, Massachusetts 02138 (617) 497-4970, FAX (617) 497-4974 Planned giving calculations, marketing and gift administration; IBM-PC and Macintosh PhilanthroTec, Inc. 10800 independence Pointe, Suite F Matthews, NC 28105 1-800-332-7832, FAX (704) 845-5528 SOFTWARE/VOLUNTEER MANAGEMENT Myers & Associates, Inc. P.O. Box 560 Dover-Foxcroft, ME 04426-0560 1-800-332-1933, Fax: (207) 564-7956 M&A-ISIS-VOLUNTEER MANAGEMENT. Tracks Tim^Fair Value Schedules, Skills Assignments. Wordprocessor/Mailmerge. Full reporting capabilities, User-Modifiable 800 helpline, first yr. support included. SURVEY RESEARCH Lewis & Clark Research 6040-A Six Forks Rd, Suite 112 Raleigh, NC 27609 (919) 676-2036, FAX (919) 846-4021 Specializing in Mail Surveys Since 1982 TRUST DeBerry Assoc./Renaissance Adv. P.O. Box 4020 Chapel Hill, NC27515 (919)489-6500 Charitable Trust Administration New Context Video Productions 924 Chapel Hill Road Pittsboro, NC 27312 PHONE/FAX (919) 929-3058 Also radio spots and photos WRITING/ EDITING Vernon Apperson Post Office Box 61056 Durham, NC 27715-1056 PHONE/FAX (919) 286-3504 Writing services "on call". Babcock Continued from page 1 areas it has concentrated on in the past, such as early cluldhood develop ment, the environment and govern ment accountabiUty. Instead, it will fund three broad program areas that cut across social issues, including those it has funded in the past. They are: ensuring the well-being of children, youth and fami- hes; bridging racial and class differ ences; and strengthening communi ties’ human and natural resources over the long-term. “We have a particular interest in seeing impact in areas where poverty prevails and race divides,” says Gayle Williams Dorman, who became the foundation’s executive director last year. In handing out grants in each of the three new program areas, the foundation wiU look for strategies that pull together people and organiza tions in communities in the South. Specifically, funds will be directed to “strengthen the capacity” of organi zations working in the three program areas. Funds also will be targeted at communities in which organizations are working together to solve social problems in ways that involve commu nity residents and develop community leaders. The changes in funding strategy, which will be fine-tuned in focus- group discussions this fall, are not likely to affect how much the founda tion awards in grants each year. Last year, the Babcock foundation made grants totaling roughly $3 million. The foundation, which suspended its grantmaking this year while it examined its priorities, has not yet decided on the grantmaking process and schedule it will use when it resumes its funding in the spring. Grant guideUnes will be spelled out in the foundation’s 1994 annual report, to be distributed early next year. While the foundation hopes to bet ter channel its resources, Dorman says the new program areas are true to its history. “What we did was take a broad look at how social change takes place, the role of philanthropy and the pre sent and emerging pressing issues in the Southeast,” she says. “And then we also looked at the finest traditions of the Babcock Foundation.” hat we did was take a broad look at how social change takes place, the role of philanthropy and the present and emerging pressing issues in the Southeast. And then we also looked at the finest traditions of the Babcock Foundation. GAYLE WILLIAMS DORMAN Executive Director Mary Reynolds Babcock Foundation The new strategy was based on a number of factors, Dorman says, in cluding “the foundation’s traditions of being willing to take risks with people who were trying to improve their own Mves and their communities, and the foundation’s bedrock commitment to democracy and justice and compas sion.” The strategy of funding collabora tive, community-based efforts to tack le interconnected social problems stems from the twin realizations that the problems facing the South are complex and can best be solved by strengthening local resources, Dor man says. “The pressing issues of the time are not categorical Issues. They are issues that are cross-cutting. They just require a broader and more inclu sive way of understanding what the dynamics of the issues are and there fore what the possible solutions are.” In addition to holding focus groups, the foundation also will be talking to other major funders about how to support more collaborative efforts in the region. The foundation’s goal, Dorman says, is to “support and spur the development of greater capacity in the South for building just and caring communities.” Accomplishing that goal will mean facing some tough hurdles. The biggest, she says, are poverty and racism. But the nonprofit sector also poses barriers, she says, including “the diffi cult and entrenched nature of so many of the problems” facing conunu- nities and “turfism among all of us in the sector... and the barrier of being caught in ways of doing business that perpetuate themselves.” Scrap Continued from page 3 what this stuff costs when you want to go buy it in the store. We could get much more money for this.’ Then you stop yourself, and say, Wait a minute. We could, but then we’re not serving our commu nity.’ And it’s a constant balanc ing act.” Hoffman says that as executive director, she is caught between the board’s desire to maintain the nonprofit mission of the Scrap Exchange and the day-to-day reality of making sure the organiza tion is running smoothly. The board “would like us to function and meet the need in the communi ty,” she says. “They would like us to be self- sufficient and/or have support, but how we do that is up to me. “We really are faced with two strings pulling at us. Because if you go too far in either direction, you’re not serving your mission or the organization. You’re not serv ing the organization if you go under.” Nearly one-third of operating revenues for the Scrap Exchange come from store receipts. The remainder comes from fundraising. With only two full-time staff members, Hoffman does most of the grantwriting, marketing and soliciting of contributions. The staff is “schizophrenically pursuing grants and contributions in our spare time, which we don’t have, and marketing our services and goods as though we were a bottom line business,” she says. Joe Appleton, co-founder of the Scrap Exchange and its board president, says continuing to pro vide programming and arts materi als at a low cost will require the board to become more involved in raising money. “It’s been a conscious decision from the beginning not to do a lot of that, but grantmaking will peak at some point and we will have to do active fundraising,” he says. In reaching the point at which good intentions run head on into economic realities, the Scrap Exchange is not alone, says Marilyn Hartman, head of Duke University’s Continuing Education Program in Nonprofit Manage ment. Many nonprofits find it difficult to keep financially afloat, she says, because many people who start nonprofits don’t have the training Pat Hoffman in business that is necessary to run organizations successfully. “These are people who have Masters in Doing Good,” she says. “They avoid courses in business like the plague, because they’re anathema to them. But now they realize that they need to know business.” Maggie McGlynn, who heads nonprofit management consultant McGlynn Associates in Carrboro, says that business training and financial know-how won’t neces sarily bring success on their own. The real ten sion, she says, often is between a board and staff of a nonprofit that should have distinct responsibilities to the organization. “A good executive director is going to do whatever is within rea son to meet the bud get,” she says. “That’s a responsi bility they have. The board, in turn, should be aware of the fact if the executive director is going afield. That’s what their role is: To make sure that the whole plan is being met.” McGlynn advises nonprofits to devise a long-range plan. That plan should spell out how to ensure financial stability without losing sight of the organization’s mission. It also should define the respective roles and responsibili ties of the board and staff. What’s more, she says, a key task for the organization will be to maintain open communication between the executive director and the board. A plan helps to set a direction for the organization, and helps focus people on specific goals, she says, while communication is cen tral to keeping the goals of the organization in sight. “If an organization hasn’t gone through a period of planning, they can get overwhelmed. The issue of fundraising is so big and scary that it’s easier to avoid it.” While the Scrap Exchange is well aware of the challenges it faces, Hoffman and the board still are wrestling with how to strike that elusive balance between ful filling and financing its mission. And as with most nonprofits, mission remains the ultimate con cern. Says Appleton, the board presi dent: “If we cannot continue to do teacher and children workshops, and the other things we do, for cost, and to make it affordable and accessible to the public, we should not exist.” D ’n G Desi “Handcrafted items for your fundraising needs” Debora Stewart George Stewart 1-800-828-PINS 3410 Hillsborough St. Raleigh, NC 27607 (919) 829-9944 HowTo^Qhoose : ^ F\md Raising Software When The Qioice Isn’t Obvious. It’s easy to get lost in today’s maze of software. But, choosing software doesn’t have to be hard. First, look at the people who will be helping you. The people behind Donor II understand fund raising. 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