Earlier this year, friend of the GIJP Technology Program Debra Askanase guest-blogged on eJewishPhilanthropy about Facebook Pages. Her blog post: The Facebook Page is the New Website stressed the importance of a fresh, engaging Facebook Page for all nonprofits. She went even further, positing that “the place of the nonprofit website will soon fade in importance as social network profiles become your organization’s number one online identity.”

I agree…to a point. As Debra states, your constituents are likely using Facebook. A lot. And the numbers are only growing. Facebook isn’t only for young people anymore. Some are concerned that Facebook will lose its “cool” factor and younger users will leave in droves as more and more parents (and grandparents) get online. But it hasn’t happened yet.

Plus, more and more people are searching for and finding information on Facebook, rather than leaving the site for a traditional search engine like Google. This makes it more important than ever for nonprofits to have a vibrant Page to interact with their constituents on Facebook.

However, the traditional website is far from dead. Websites still play a very important role in disseminating basic information in a simple, easy-to-navigate format. If you are looking for an organization’s phone number, address, or mission, the website is still the easiest place to find that information. For more details about how to get involved by volunteering or donating, the website offers the best format for sharing lots of information.  Traditional websites also offer the easiest way for users to submit information via online forms and download application materials. And, no matter how large Facebook gets, it will never have 100% participation. Some users will want to find out basic information about your organization without signing up for Facebook or figuring out the interface.

Finally, although it doesn’t appear to be on the horizon just yet, Facebook may not always be the social network of choice for the vast majority of users. If/when there is a shift in user habits online, the standard website will be your organization’s “base,” offering simple links to all the organization’s social media presences…wherever they may be.

So go ahead and embrace Facebook. Build a Page and update it regularly. Interact with your Fans.

But make sure you keep your website up to date as well!

Did you know that the IRS redesigned the Form 990 that all registered 501c(3) organizations are required to submit each year? The changes are meant to ensure more transparency for potential donors and also to help reduce the filing burden on (most) nonprofits.

One of the big changes in the new 990 is the inclusion of two questions explicitly asking you about your organization’s compliance with laws that require nonprofits to register with each state where they solicit funds. I put the word “solicit” in quotes in the title of this post because each state defines solicitation differently. For some states, the mere existence of a donations page on your website is a solicitation…even if you don’t have any current donors or prospects in that state. For other states, if you send an email to anyone in that state encouraging them to donate on your website, that is a solicitation. For other states, if you send anyone in that state an email that requests a gift (whether or not you have an online donations page), THAT is considered a solicitation. It’s not just online giving that is governed by these rules: ALL states consider a mailing to someone in that state requesting a donation a solicitation.

Each state also differs on both the steps and fees required to register to legally solicit in that state. This makes the process especially confusing. Fees can range from a flat fee of $25 or so to a sliding scale that can reach as high as $400, depending on the amount of money raised in that state each year.

There is an ongoing effort to make this process as simple as possible. The Unified Registration Statement (URS) allows nonprofits to fill out one form that can be used to register in most states. You can find this form here. Unfortunately, this universal form is not quite universal yet. Some states don’t accept the URS at this time. Other states require the URS plus additional documentation. And no states accept the URS for annual renewals – only the initial registration can be processed using the URS.

Silver Lining?

So far, I imagine this has all been bad news so far. The prospect of figuring out (and filling out) all of this new paperwork is probably feeling a bit overwhelming.

There is a very small bit of good news with this process – Exemptions! Your organization may be exempt in some states. In particular, some states have exemptions for religious institutions. For example, a quick search online finds that Pennsylvania and Maryland offer exemptions for religious organizations. Unfortunately, we can’t give legal advice about whether or not your organization is exempted from filing in these (or other states); please consult a lawyer before making any decisions. Also, these states normally still require you to file some paperwork proving that you are exempt from registering.

Who Cares?

Many of you are probably reading this thinking, “You want me to add one more time-consuming bureaucratic process to our over-worked board or staff? And I have to pay for it, too? Really?”

Unfortunately, the answer is yes. Your Organization may have legal liability for not registering to solicit funds. Even the Board members who sign the 990 may be liable for incorrectly stating that the organization is registered with each state to solicit funds based on those states’ laws. Again, please consult with a lawyer to determine your liability.

In addition, an organization could open itself up to gift challenges from an heir or a family member if it is not registered in a particular state. An organization could risk losing a pledged gift if it is challenged on these grounds.

Next Steps

OnPhilanthropy.com and eJewishPhilanthropy.com have much more detailed information about these processes. There is another commentary about these regulations on eJewishPhilanthropy.com that may be worth a read as well. I recommend you review this information and discuss with your Board on how to proceed.

They realize that you won’t be able to go out and immediately register with every state. Instead, they recommend you prioritize your filing and proceed as follows:

• Leverage the URS. This should save you lots of time.
• Determine if you are exempt from registering in any states.
• Register first in your home state.
• Register next in states where you send fundraising letters by mail (start with the states where you send to the most prospects).
• Register in states where you send email solicitations (start with the states where you send to the most prospects).
• Register in states where your website is considered a solicitation.
• Register in any other states where you are legally required to register.

Finally, you should also discuss your registration requirements and legal liability with a lawyer.

Please share with us any experiences you’ve had with this process. The 990 form revision is new, so we will all be learning on the fly. Hopefully we can make the process as simple as possible for each other.

Do you know someone who is bettering their community through service and outreach? I just learned of an initiative of the UJC/The Jewish Federations of North America that aims to “celebrate the selflessness and courage” of these individuals. They are even giving the winner $25,000 to help support their cause!

The initiative is called Jewish Community Heroes. It is being billed as the “largest-ever Jewish social-networking effort” because of their use of social media and “crowd-sourcing” to both collect nominations and allow users to vote for the five finalists.

The five nominees who receive the most votes will be honored at this fall’s General Assembly (GA) in Washington, D.C. (Nov. 8-10, 2009).  A panel of judges will select the Jewish Community Hero of the Year from among the finalists.

Any individual, who is at least 13 years of age and a resident of the United States or Canada is eligible to be a nominee, provided that their work impacts a community in North America.

“Jewish Community Heroes celebrates those in our communities who exemplify tikkun olam (repairing the world), one of the three core values of UJC/The Jewish Federations of North America,” said National Young Leadership Media Co-Vice Chair Lisa Kudish in a press release.

 I am particularly interested to see how they integrate their website, which was developed with Blue State Digital, a leading technology and online strategy firm that helped the Obama campaign raise more than $500 million and engage millions of volunteers, with their Facebook Page and Twitter Account. Every nonprofit can learn from their experience using these tools for outreach and engagement.

In the meantime, go ahead and nominate someone you consider a Jewish Community Hero!