September 1996
VOLUME 4, ISSUE 1/$5.00
A nonprofit newspaper for the nonprofit community
Look for us on the World Wide Web at http://philanthropy-journal.org
OF NORTH CAROLINA
Speaking up
State nonprofits intensify political lobbying activity
As government falls increasinglj'
under conservative control and
lawmakers reduce funding for
social services, nonprofits are
becoming more politically
active. In the process, a debate
is growing over how far nonprof
its should take their political
lobbying and advocacy.
By Stephanie Greer
American politics is changing.
Government is cutting funding and
services and, as a result, nonprofit
organizations face greater demand
for their sendees and declining
FOUTICS
resources with which to pay for them.
To cope svith the heightened role,
many nonprofits also are becoming
increasin^y active in the political
process. That activism is raising
questions about the extent to which
nonprofits should be political organi
zations.
The higher profile nonprofits are
taking is reflected in a number of
deveiopments;
• Nonprofits are becoming more
aggressive in lobbying local, state
and federal lawmakers for more dol
lars and less regulation.
• Nonprofits
are using WTitten
communications
more aggressively
to get their mes
sage to govern
ment officials,
prospective
donors and the
news media.
• Foundations
are funding efforts
designed to increase civic activity
• Government officials are trying
to crack down on nonprofit activities
they believe moves beyond legal limi
tations on nonprofits’ political
involvement.
Jane Kendall
Nonprofit organiza
tions always have
been at the heart of
the American politi
cal process. But
recently, as conser
vatives have taken
control of city halls,
county courthouses,
state houses and
Congress, the role of
nonprofits in the
same arenas has become increasing
ly controversial. The ideological bat
tles being waged on aU government
levels has only intensified the debate
over nonprofit political activity.
Legally, all nonprofits have the right
John Hood
to be active politically; the debate
centers on whether that activity is
appropriate.
“To me, one of the main functions
of private nonprofit organizations in
a democratic society is to provide an
independent voice in public debate,
including in the legislative process,”
says Jane Kendall, executive director
of the North Carolina Center for
Nonprofits, a trade group. “It’s an
essential part of their mission. The
mission usually isn’t just to be the
band-aids [for social problems]; the
mission is often to address hunger, to
alleviate suffering - you can’t only do
Look for POLITICS, page 22
Market change
Software
vendors
adapting
Keeping up with the breakneck
speed of technological change is
a challenge for companies that
make software for nonprofits.
Trends include adapting to the
Windows operating system and
producing more integrated prod
ucts.
By Barbara Solow
When asked to identify key trends
in the nonprofit software field, com
pany executives speak with one
voice.
“Windows, Windows, Windows,”
they say
The growing popularity of the
computer operating system devel
oped by Microsoft Corp. has many
companies scrambling to create
Windows versions of their software.
SOFTWARE
This fall, several leading compa
nies that produce software for non
profits - including Blackbaud Inc.,
MicroEdge Inc. and Donor D/Systems
Support Services - will be introducing
Windows versions of their fundrais
ing, grantmaking and planned giving
programs.
With a growing number of non
profits converting to Windows, many
Look for SOFTWARE, page 26
"Get email"
Internet wave catches on
As the hype about the Internet
continues, foundations, nonprof
its and development offices all
are finding ways to put Internet
technology to practical use for
their organizations.
By Sean Bailey
If anyone yet doubts the potential
for the Internet to help nonprofits,
consider what a three-judge federal
appeals court said in June.
“It is no exaggeration to conclude
that the Internet has achieved, and
continues to achieve, the most partic
ipatory marketplace of mass speech
that this country - and indeed the
world - has yet seen.”
The court opinion came in a land
mark censorship case against the
U.S. government. Although the
judges, like many nonprofits, were
Internet illiterate when they got the
case a year ago, after delving into
cyberspace, they could not help but
acknowledge “the ‘democratizing’
effects of Internet communication;
individual citizens of limited means
can speak to a worldwide audience
on issues of concern to them.”
Like the judges, many nonprofits
in the last year have taken their first
hesitant steps into cyberspace - buy
ing computers, getting email, launch
ing homepages, creating electronic
mail discussion groups or providing
Internet service to the public.
For some, joining the most hyped
shift in communications ever has
been a heady experience. For others,
embracing the change and adapting
to new ways has been painful and
frustrating.
And for those still watching from
the sidelines, or those challenged by
technology’s ability to loosen their
Growth pains
Nonprofits
expanding,
facing
TECHNOLOGY
Karen Greiten, development projects coordinator for the North
Carolina Museum of Art, is one of a growing number of computer
system specialists working for nonprofits. Greiten manages the
museum's computer fundraising system.
Photo by Elaine Westorp
increase that number.
Not surprisingly, Dar thinks every
nonprofit in the world should be
online. One of the biggest changes
Dar has seen in the last year is the
increasing use of email by nonprofits.
“Get a Web site and do whatever
you want,” he says, “but get email -
it’s just so important. I think people
who don’t get it are going to be left
behind.”
Dar says he has observed that
small nonprofits that had avoided
getting a personal computer are now
getting one because they now recog
nize the need for email.
Indeed, email may prove to be the
unsung technology of the Internet.
Email has changed the way Jan
Muller does her job at the Triangle
Community Foundation.
“We had gotten so many requests,
control on information, the feeUng
that the train is pulling away seems
to grow with each passing day.
In New York City, a three-year old
nonprofit called the Contact Center
Network has detected a big jump in
nonprofits getting on the Internet.
The organization’s global directory of
nonprofit Web sites has more than
7,000 listings and is receiving 150 to
200 new nonprofit listings each week.
“It really shows the pace of what’s
happening,” says Ami Dar, executive
director for CCN. His nonprofit exists
to promote better communication and
cooperation among individuals, and
use of computer technology and the
Internet has become its major focus.
He estimates that 5,000 to 7,000
nonprofits in the U.S. have Web sites,
and his organization is working to
Look for NONPROFITS, page 22
Nonprofits represent the fastest-
growing sector in the U.S, says a
new study by Independent
Sector.
By Todd Cohen
The nonprofit sector in the U.S. is
expanding faster than business and
government but faces big hurdles
because of shifts in giving patterns
and shrinking government support for
social services, a new study says.
“The great challenge for communi
ties, government and business will be
to determine the role and responsibil
ities of governments and charitable
organizations in order to provide nec
essary services to communities and
the nation,” says the Nonprofit
Alamanac 1996-1997.
The 326-page study is produced by
Independent Sector, a Washington-
based coalition of nonprofits, and
published by Jossey-Bass Publishers
in San Francisco. It documents
national trends and statistics on
wages, finances, employment and giv
ing patterns in the nonprofit sector.
Depending on the source of specif
ic data within the study, the most
recent year for which data are avail
able may vary. Among the findings-
•From 1977 to 1994, national
Look for ALMANAC, page 20
INSID
Corporate Giving 12
Foundations 6
Fund Raising 14
Grants & Gifts 16
In September 16
Job Opportunities 24
Nonprofits 4
Opinion 10
People.. 17
Professional Services... 18
Volunteers 8
Special report: Technology
Stories in this special Journal issue on technology include:
Wiring schools. Page 3 • Tech funding scarce. Page 6
Cyber-accountability. Page 4 • Tech firms scrimp on charity. Page 12
Nonprofits go online. Page 6 • Fundraising goes high-tech. Page 14