HOTLINE

Answering Readers' Questions on Establishing Endowments, Finding Salary Data, and More

The Chronicle's Philanthropy Careers asked its readers to submit questions about job hunting, recruitment, and management challenges in the nonprofit world. In our monthly advice column, we respond to some of your inquiries with tips about resources and wisdom from experts in the field.

Q. I am researching the pros and cons of endowments, including how to set them up and use them efficiently. Can you help me by providing a list of books or other resources on this topic?

A.Establishing an endowment is a relatively simple procedure, but it's definitely a good idea to do your homework, because an endowment isn't right for every organization, says Scott Sheldon, director of external relations at Arizona State University's College of Extended Education, in Phoenix. For instance, he says, "it is possible that too many donors may choose to support endowments to the detriment of ongoing annual operating support that the agency needs to keep operations running." Also, he points out, since an endowment is investment, income from the investment may not keep up with inflation, or increased expenses. This is a particular concern in these days of uncertainty in the stock market, says Lawrence Jones, vice president of philanthropic services at Wilmington Trust Company, a bank in Wilmington, Del.

Of course, endowments offer many benefits as well, says Mr. Sheldon, such as the promise of financial stability. "Funding an endowment is more cost effective than seeking an annual gift each year from the same donor," he says. "This also allows the agency's resources to be used more efficiently for programs than on continuous fund raising," he says, adding that endowments may enable charities to attract larger gifts, particularly through bequests, than they do through annual appeals.

While you're seeking resources on endowments, you will also find lots of information about planned giving, the means through which individuals create endowments or make other substantial gifts to charities. Given the enormous amount of wealth that is expected to change hands happen over the next few years, as the parents of the baby-boom generation pass on their worldly assets to their children, nonprofit organizations can expect to spend a lot more time thinking about planned giving, says Joel Weiss, former supervisor of the endowment department at the Jewish Federation of Springfield (Mass.), and now a fund-raising consultant in Longmeadow, Mass. To learn more, he suggests checking out the Foundation Center's list of resources on planned giving. You can also sign up for a free e-mail discussion group dedicated to planned-giving issues sponsored by Yahoo Groups and started by J.J. MacNab, an independent financial planner in Bethesda, Md. To join, send a blank e-mail message to plannedgiving-subscribe@yahoogroups.com. Ms. MacNab says she currently has more than 700 subscribers, including many planned-giving officers from nonprofit groups as well as lawyers who work for charities and donors, and that the subjects taken up by the participants range from the most basic to the most complex. Both Mr. Weiss and Mr. Sheldon recommend the book Effective Fund-Raising Management, by Kathleen Kelly (Lawrence Erlbaum Associates, 1997, $65), which includes several sections devoted to fund-raising for endowments. Mr. Sheldon also recommends Building an Endowment: Right From the Start, by Lynda S. Moerschbaecher (Precept, 2001, $40).

On the Web, consult your state's nonprofit association, says Mr. Jones. Most states have specific laws pertaining to endowments. The Council on Foundations, in Washington, also offers a few publications that touch on aspects of endowments. Search the publications catalog using the keywords "endowment" and "foundation" at the Web site, advises Janne Gallagher, deputy general counsel for the organization.

Q. How can I evaluate salaries for a development specialist or coordinator job? I have recently been offered this job after only two years out of college, but I don't know what fair compensation would be.

A. Once upon a time, you would have had to rely upon gossip, intuition, or the honesty of your friends to suss out a potential salary. Today, with the help of the Internet, you can find out whether your job offer is in the ballpark of fairness.

To get started, look at a few salary-comparison Web sites, which compile salary information for specific positions. It's a good idea to check out more than one site, because salary-comparison Web sites "cut" their data in different ways.

First, browse salary reports recently posted on Philanthropy Careers, available in the Job Market library. Salary.com offers data for nonprofit positions, and while it won't give you salaries for specific nonprofit organizations, it will adjust salaries by geographic region. Other places to try: The Wall Street Journal's Career Journal, Wageweb, Salary Expert, and College Recruiter.com.

Some professional organizations, such as the Council for Advancement and Support of Education, have also recently completed salary surveys that you may find useful. Because it's not available online, you might want to order the Association of Fundraising Professionals' latest "Compensation & Benefits Survey";. It costs $75 for association members, $150 for nonmembers. You can order the study through the association's Web site, by calling (800) 666-3863, or by contacting the association's Resource Center at 1101 King Street, Suite 700, Alexandria, Va., 22314.

Q. I am really interested in fund raising and, as an expectant mother, I'm looking for development work -- such as, perhaps, grant-proposal writing -- that I can do from home. I have either volunteered for or worked at charities for six years and recently graduated with a bachelor's degree in management, including an American Humanics certificate. Any suggestions on getting started?

A. In fund raising, there aren't too many positions that are easily handled from a home office. Among your options: graphic design, some data-processing positions, and writing, including grant-proposal writing, says Kevin Courtney, chief development officer at the May Institute, a nonprofit organization that works with special-needs children and adults, in Norwood, Mass. "Other positions in fund raising would be hard to do from home because the majority of the job is face-to-face contact with people," he says.

Even in writing, design, or data processing, you might still find it tough to work out a telecommuting arrangement with a new employer, because many charities delegate these tasks to independent contractors, says Mr. Courtney. On the other hand, if you're interested in working for yourself, setting up shop as a grant-proposal writer might be the easiest way to get started. You could establish yourself by offering to do a small project on a pro bono basis, he says. Skilled volunteer grant-proposal writers are always welcome, especially by small nonprofit organizations that are usually in need of fund-raising help, says Monica Elsbrock-Boyd, executive director of Arts for People, a charity that provides art therapy in Dallas.

To find out more about the life of a grant-proposal writer, check out the American Association of Grant Professionals. If you decide to hang out your own shingle, you might be interested in Mompreneurs: A Mother's Practical Step-by-Step Guide to Work-at-Home Success, by Patricia Cobe and Ellen H. Parlapiano (Perigee, 2002, $14.95). The authors also have a Web site, where they answer questions from readers personally. If you decide to negotiate for a telecommuting position, check out The Home Office Solution: How to Balance Your Professional and Personal Lives While Working at Home, by Alice Bredin and Kirsten M. Lagatree (John Wiley & Sons, 1998, $14.95).

Q. Where can I find information on the organizational structure of nonprofit fund-raising departments?

A. The Association for Fundraising Professionals is probably your best bet for this kind of information. Try a booklet published by the organization called "Establishing Your Development Office," by Linda Lysakowski. This publication covers a variety of topics pertaining to fund-raising departments, and also covers issues of staffing, hierarchy, budgets, and volunteers. The booklet also includes sample documents and checklists. It costs $10 for association members and $15 for nonmembers, and is available through the association's Web site.

The association offers another reference tool that you might also find useful, also available through its Web site. It's called "Tool Kit #1 Fundraising Job Descriptions" and provides more than 100 fund-raising job descriptions broken down by field (education, social service, health, etc.). The tool kit includes a questionnaire to help develop job descriptions in your own organization, and also covers the legal concerns related to writing such descriptions. It was just published this summer -- an introductory price of $60 lasts through August 31. After this month, the price goes up to $75 for association members and $100 for nonmembers. Finally, if you need more specific information than what is covered in these publications, you can always ask the association's Resource Center to track down the facts for you. Upon your request, the staff will put together a custom compilation of articles from professional journals, magazines, and a variety of other sources on this or any fund-raising-related subject, says Michael Nilsen, the association's public-affairs director. This service is free for members, but costs $50 per topic for nonmembers. Call (800) 688-3463 for more information.

Got a question about job hunting, recruiting or managing in the nonprofit world? Send it to us at hotline@philanthropy.com.