In This Issue: The Truth About Consultants Governance Issues for Nonprofit Boards Best Practices of Best Boards More Truth About Consultants..... Resources for Nonprofits Two Great Books Available Now Online Book Order Form Sign Up for Future Newsletters! If you find this newsletter helpful and interesting, there’s only one way to keep receiving it  - become a part of the email subscription list. If your email address changes or you want to add a second address, just send me an email with the new or additional information so you don’t miss out on a single issue. IMPORTANT: Remember to include your email address printed carefully and clearly! THANKS! Click here for the electronic form "I love your newsletter! It's refreshing, fun  and filled with helpful hints" Toni Paglia, Director of Development, The ARC Syracuse, New York

I’ll bet that headline got your attention...and you are wondering why on earth I would want to spill the beans...but this is a great article and viewpoint shared in this issue by T.K. Thompson, a nonprofit management consultant I have known for a long time and admire greatly, so read on.....

So, Tell Me Something I DON’T Already Know!

Having spent my nearly 40-year management career in the nonprofit arts sector, I’ve had numerous occasions to debate with myself and with my organizations’ governing Boards the topic of whether there is a benefit from partnering with an outside management consultant for temporary services or short-term projects.

Frankly speaking, many management consultants specialize in telling you 75% of what you already know and 25% of what you want to hear. Take the fundraising consultant who spends a few weeks (and a few thousand of your dollars) writing a report that tells you that you need to:

What I already know:

• identify potential contributors (25%),
• research their philanthropic leanings (25%)
• create a plan to approach these prospects (25%)

What I want to hear:

• begin raking in the money (25%)

There have been numerous times I have looked in the mirror and said, “We don’t need a consultant. We’ve gotten by for a long time this way. We just need to bring our Board and staff together to get over this hump.”

After all, we all have recruited Board and staff with individual talents that can be tapped to the benefit of the organization. Right?

At the same time, maybe bringing “our Board and staff together” is a task that would be expedited by using a consultant to identify what it is that keeps you from identifying obvious (and not so obvious) talents to increase communication and get everyone on the same page working in a cooperative way to move the mission forward. Often times getting an unbiased perspective from outside the organization can help you focus on things as they are and not necessarily as the insider sees them.

What Time Is It?

The first step, and often most difficult one, in deciding if it is time to get outside help is to admit that you are at a plateau (or an impasse) and that you either 1) don’t know how to move forward, or 2) that you simply do not have the human resources available to assign to short term project-based issues.

Here are the facts: NO ONE knows everything about every aspect of your business. You don’t and neither does a consultant. The best consultants are those who know what they specialize in and offer services accordingly. If you have needs beyond the consultant’s expertise, the best will collaborate with others to fully address your needs. Look at it this way, would you go to the dentist to have your appendix removed? Would you hire a budget consultant to help you design a new venue? Truth be told, the consulting business for non-profits is relatively small. In general, we know each other and rely on our collective expertise to provide the best service to you.

NO ONE has enough staff (or volunteers) that can be reassigned from their already busy work duties and responsibilities to temporary projects like developing long-range operating pro formas, computer management systems analysis, Board recruitment and training, etc. Furthermore, it is unlikely that your organization has individual staff members with skills and experience in all of the many areas of management that you must deal with from time to time.

Great Expectations

Consultants are not the do all and end all. However, temporary partnerships with consultants can help you solve short-term problems, plan for long-term development, and relieve your staff from additional projects that divert their energies and expertise from what you hired them to do!

Click here for More Truth About Consultants.....

Back to Table of Contents

With increased scrutiny and reporting coming to all nonprofits, regardless of size, it is important to take a look at several governance issues of which all nonprofit Boards should be aware.

We know that, beginning with the fiscal year ending December 31, 2007, all nonprofits, even those with revenue of less than $25,000 must file an IRS Form 990 (the 990N, an electronic version).

Changes are on the horizon for nonprofit management...in fact, the change has already begun. The IRS is using the 990 as a tool to display how well nonprofits manage themselves, whether their actual income and expenditures serve the organization’s mission and charitable purpose. GuideStar (www.guidestar.org) makes is easy for anyone, anywhere, to review a nonprofit’s 990. Donors and funders are more and more aware of this helpful tool and are taking advantage of GuideStar to check out nonprofits before donations are made.

Nonprofit management gurus at Board Source (www.BoardSource.org) and The Independent Sector (www.independentsector.org), after review of the Sarbanes- Oxley Act, recommend that all nonprofits enact a whistle blower policy and a document retention and destruction policy. Examples can be found on their web sites.

These same gurus tell us that legislation aimed directly at nonprofits is coming and in a white paper published in October of 2003 they make excellent recommendations for all nonprofits. We know that an increased emphasis on financial transparency and conflict or interest will be included in future federal legislation governing nonprofits. Review the white paper at http://www.boardsource.org/dl.asp?document_id=558.

Nonprofit Boards should be keenly aware of their governance and fiduciary responsibilities. It is the Board’s responsibility to ensure their organization operates strategically to meet its mission and purpose in the most effective and efficient manner possible.

Governance issues must be shared with all Board members, especially in new Board member orientation. We can no longer rely on the old excuse of being ‘merely volunteers’ to excuse a Board member’s lack of knowledge or understanding of his roles and responsibilities.

For a quick review of basic Board governance, visit my web site (www.jblockinc.com) and take advantage of a one hour live Internet seminar on the topic. We can schedule the webinar at a time that is convenient for you and your Board.

Back to Table of Contents

While we are on the subject of Board governance and management, it is worth a quick review of the best practices of the best Boards that I have had the opportunity to work with. Here are benchmarks of the best Boards:

1. Board members clearly understand their governance and fiduciary roles and responsibilities.
2. Board members understand the duties of Care, Loyalty and Honesty (as defined in their D&O insurance policy).
3. The Board has a concise method of recruiting new Board members, with a nominating committee led by a senior member of the Board and a consistent packet of information for prospective Board members. The nominating committee recruits for the skills needed to ensure a well-rounded Board that serves the organization’s mission and purpose.
4. New Board member orientation is a must and includes training in governance, financial management, organizational history and strategic direction, overview of management structure, etc.
5. An annual planning retreat sets the long term vision for the organization and establishes a short-term plan of work for the Board and staff.
6. Committees are put in place to address the annual plan of work and have committee work plans.
7. The Board uses job descriptions and annual commitment letters to ensure clarity in roles. Board and staff roles are clarified.
8. Board meetings are run efficiently. Committee work is delegated to committees. The meetings start on time. Board members receive minutes, financials, committee reports, ED report in advance and come prepared to act.
9. Board members are allowed to resign when ready...without guilt and with respect and understanding that at times, life gets in the way of volunteering!
10. Board leadership understands that You Get What You Accept and What You Reward and holds the entire Board to a high standard of performance.

Visit my web sitee to download sample job descriptions, commitment letters, conflict of interest statements and other helpful Board management tools.

Back to Table of Contents

A well-planned consultancy should include a series of steps to be most effective. First, you should expect the consultant to provide an assessment of your needs based on information you provide. Second, the consultant should provide a detailed scope of work (negotiated with you) before you engage in the partnership. Third, there should be a clear understanding of how the plan will be implemented and what documentation you will receive during and at the end of the project.

The initial assessment of needs and scope of work is critical to a successful project. You need to know exactly what it is you want a consultant to do for you before engaging in a partnership. That usually requires an initial conference to determine if there is a fit between the organization’s needs and the consultant’s services. Most consultants provide such a conference as a free service in order to zero in on the scope of your needs. Successful consultant partnerships are achieved through a strong personal relationship.

Transparency is not only imperative within your own walls, but it is essential for the consultant. You should be willing to share as much information about your organization as possible in the first conference to enable the consultant to get a clear snapshot of where you are and where you are trying to go. If you haven’t identified your basic needs, then a consultant can’t prioritize and help you achieve your goals.

Being realistic can save you time, money and angst. As with anything in life or business, you have to walk before you can run. A consultant can help you answer the important questions, such as:

• Are we ready? Can we get there from here?  
• Do we have sufficient management systems and procedures in place?
• Are organizational and financial documents up-to-date and easy to understand?
• Do we have (need) potential sources of support to achieve the goals we are setting?
• Do we have strong Board commitment and participation toward a common goal?

Myth: Consultants Are So Expensive! This is perhaps MYTH NUMBER ONE ... and good consultant partnerships can yield great returns! The best non-profit consultants have actually been in your shoes. They are individuals who have worked in a business like yours and have day-to-day practical experience in the typical challenges. They empathize and know that you don’t have unlimited funds to commit for “extras.” They also know that to help you, they need to provide only the services that you need and can afford.

The First Rule of Engagement Is: NEGOTIATE A DETAILED SCOPE OF WORK!
Be sure that you are asking for and getting ONLY the services you want and need with a detailed estimate of time required and related cost.

The Second Rule of Engagement Is: DON’T BE AFRAID TO NEGOTIATE THE FEE!
With the exception of some very large firms that have no “wiggle room,” many smaller firms or individual consultants may be willing to discuss options, especially for longer engagements. Most will require reasonable reimbursement of expenses of travel, lodging, etc.

Temporary Services at the Highest Level. Think of a management consultant as a "temp," with many years of experience in high-level management in your type of business! Look for a consulting partner who is not a traditional "consultant" that simply advises you on ways to improve your business practices. The best don't just tell you how it's done. They work closely with you to evaluate your needs, create unique solutions to meet temporary or long-term challenges, and produce mission-driven documentation to help you succeed.

T.K. Thompson has nearly 40 years of experience in the nonprofit world, primarily in the performing and visual arts. He has formed new non-profit corporations from the ground up, reinvented established organizations at various stages of development, and managed successful companies throughout the United States. His background includes management and artistic positions with amateur community organizations, academic institutions, and professional companies. Mr. Thompson has coupled his knowledge of artistic disciplines with a keen insight into good business practices. His skills in strategic planning and management techniques have led to improved financial stability and steady, long-term growth in each organization he has served. He has been highly successful in the areas of budget development and fund raising, audience development and marketing, and talent recruitment and contract negotiations with artists, agents and professional associations.

T.K. Thompson is the founder of Arts Management & Performance Solutions.  For more information, go to www.artsmps.com. 

Back to Table of Contents

Be sure to visit the web sites listed in the “Governance Issues” article above.

And, to learn more about earned income training, visit www.socialenterpriseventures.com.

Back to Table of Contents

Now you can add two great books to your agency library. The ABCs of Building Better Boards is just what you need to improve your Board’s potential. It includes ideas for recruitment, retention and recognition and has some great forms for you to copy and use.

The Association of Fundraising Professionals says of this book: “Here is a book that every senior fundraiser responsible for board recruitment and development should read once and then review annually...takes up where books full of theory fall short...give it a chance and you will discover a gem to be treasured.”

Learn how to deal with unproductive Board members and how to better define the roles of staff and Board. There is a chapter on financial and fiduciary facts, one on simple parliamentary procedure and much much more.

Discover how Board Job Descriptions and annual Commitment Letters will dramatically improve your Board’s effectiveness. See how a truly effective Nominating Committee will lead to a better Board.

Get good ideas for more efficient Board management and administration, including how to set up and manage effective committees.

It’s only $24.95 plus shipping and handling. Take advantage of a volume discount of up to 20% and give this book to all new Board members as part of their orientation.

The 3rd Edition of Fast Fundraising Facts for Fame & Fortune is full of ideas to improve your fundraising, including how to ask effectively, special events essentials and new ideas for fundraising.

Help volunteers get over the fear of asking for money and in-kind resources for your organization. Learn how marketing principles will make fundraising easier.

Learn about Jean’s Ten Rules for Fundraising Success and apply them to your organization immediately. This book puts the FUN into FUNDraising and gives good examples and ideas that really work, rather than using hard to follow formulas and theories.

It’s only $24.95 plus shipping and handling. Take advantage of a volume discount of up to 20% and give this book to all new Board members as part of their orientation...

Or buy both books for only $45.00 plus shipping and handling. Order your copies today!

Back to Table of Contents

Return to Electronic Newsletter Archive

If you wish to be notified whenever a new issue of our newsletter is published, please fill out the simple form with your name and Email address and we will add you to our electronic mailing list.

If your email address changes or you want to add a second address, just fill out the form again and put a note in the "Comments" section.

Jean Block Consulting Home Page | Search Our Site | Free Newsletter | Buy the Books! | Training and Workshops | ABCs of Building Better Boards | Fast Fundraising Facts For Fame & Fortune © | Retreats and Planning | Special Offers & Opportunities | BLOCKbusters - Special Event Essentials | Internet Resources for Non-Profits | About Jean Block | Representative Client List