What happens when the Charitable Tax Deduction is reduced or eliminated?How are the Non Profit organizations of our country going to survive?If the Indiana Center on Philanthropy is correct and we lose “several billion dollars a year” it could be disastrous for a vast majority of non profits.It could mean a reduction in services that are absolutely necessary to our society.It could mean a loss of more jobs as these organizations have to cut back.

The White House denies that the proposal to reduce the tax deduction for charitable gifts to non profit organizations will hurt giving to those organizations in part because the deductions would not start until 2011 when the White House believes the recovery will be in full swing.But, it is not completely clear how delaying the implementation keeps from harming the organizations that depend on the generosity of those that have the money to give.Does the White House and the Obama Administration believe that these organizations will not need the money when the economy is in recovery?

Among the unintended consequences of this decision would be that the people who have the greatest need in our society would become even more dependent upon the government.These non profit organizations operate much more efficiently than the government.They take far fewer people and money to accomplish the same goals.The dollars given to these organizations go much farther than the dollars given to the government.Where the sense in all of this and what is the non profit organization to do in order to survive and not have to look to the government for its survival?

Some would answer the question of what are we to do with, “at least we have a couple of years to figure it out?”This is not the case!Waiting until implementation of this new tax policy will insure tragedy for most if not all organizations that depend on these charitable gifts for their income.These non profit organizations MUST act now to find other methods of generating the income they will loose.They must be prepared now for what is to happen tomorrow.Unfortunately this takes away from the primary mission of the organization but without the income the primary mission is going to be ineffective anyway.As we all know, it takes money to operate these organizations and to achieve the mission of them.

One of the tools that some forward thinking CEO’s and development leaders of these non profit organizations are examining is a method of generating income that is not dependent upon the stock market or the tax deductions available to people of capacity.These organizations know that non profit grants, and other traditional efforts to fund non profits are already becoming harder and harder to do successfully.These parameters are forcing them into looking at a different funding model.

An excellent tool for generating unencumbered income for the non profit is a business building model that doesn’t take a lot of time and actually gets the donors and others involved in making money for the organization.MyNetUniverse has created a product that is being used in just this way.The product is called, MyShoppingGenie www.SavingSavingSaving.com, and adds value to every individual or company that uses it by saving them money on their purchases.It is a free product that MyNetUniverse pays it’s distributors to give away.They also pay their distributors to build teams of distributors to get the software into the market.Therefore, a forward thinking CEO could purchase a license to distribute the MyShoppingGenie software which they then give away to their constituency.Every time one of their members, supporters or people they service download the software MyNetUniverse pays the non profit.There is also a part of the product that allows the non profit or the distributor to brand themselves right on the software so that every time the person that has downloaded the software uses it they will see the name of the organization that has given it to them.It is possible to promote, sell and recruit through this constant awareness by the user.

The non profit that is wise enough to consider this business model can generate thousands of extra dollars each month by giving away free software that helps people save money on every purchase they make and by giving other people within their community and constituency to benefit by giving away free software.With the overrides and other commission opportunities built into the pay plan the non profit could be doing others a great favor by allowing them the opportunity to become involved all the while generating a new stream of revenue that is not tied to the economy or the stock market.Actually this product is well suited like WalMart for a downturn in the economy.

Evaluating opportunities like this and other revenue generating models that are not tied to charitable tax deductions is smart business for the wise non profit CEO and development professional.Even if the tax proposal President Obama has made is not implemented it is harder today to raise funds with the stock market in the position it’s in than ever.And, with the population of philanthropist growing older it becomes more and more necessary for non profit management to find ways to relate to the younger age groups that will be the philanthropists of tomorrow.Helping them to find ways to generate wealth is a wonderful idea to build loyalty from them towards the non profit.

Author: D. Bruce Scott
Article Source: EzineArticles.com
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