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~ January 2006 ~ Topics

The US House of Representatives has passed legislation (HR1461) that would disqualify nonprofits from receiving money from a new housing fund if they have lobbied or carried out advocacy activities—such as voter registration. The provisions to curtail advocacy activities is aimed at controlling a 5% fund for Fannie Mae and Freddie Mac that is earmarked to promote low-income housing for needy families. The bill will be moved on to the Senate banking committee for action.

The Kettering Foundation of Ohio financed a study of how well nonprofits understand the minds and behavior of potential donors. The report, compiled by Public Agenda, was the result of six focus groups, and interviews with 15 officials of nonprofits around the country. The focus groups were made up of men and women who were civically engaged and had donated at least $300 to charity in the past year. Here are some results.

• Overall donors were enthusiastic and positive about nonprofits, especially small and local ones.
  
• Donors have a long memory when it comes to scandal or waste at nonprofits.
  
• Donors dislike fund raising tactics that look like the corporate world—slick brochures, frequent mailings, high profile events, and telephone solicitation.
  
• They are also concerned with excess executive pay.
  
• Nonprofit officials are consumed with public policy debates, while donors rarely understand or care about them. Not one donor in the focus groups ever checked a charities tax return (as an example).

The full report is available at "The Charitable Impulse" (http://www.publicagenda.org).