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Volume
10, Issue 4 - July 2008 |
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"I
love your newsletter! It's refreshing, fun
and filled with helpful hints"
Toni Paglia,
Director of Development, The ARC
Syracuse, New York |
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I have begun to focus more and more
of my training and consulting practice on the issues facing nonprofit
boards and governance in the recent months.
Why?
Nonprofit boards are receiving more and more intense scrutiny from funders,
donors, state and federal policymakers, the media and the general public, all of
whom are requiring a higher level of transparency and accountability.
While some nonprofit board members decry this change, saying they are merely
“volunteers and good people doing something for a mission,” I must agree with
others who believe it is time the nonprofit sector “grows up” and faces the fact
that the tax-exempt status should require every nonprofit to be held at an even
higher level of accountability than many for-profit businesses.
Accountability begins with the board of directors,
those who set the strategic direction of the nonprofit.
And yet, recent studies show that a large percentage of nonprofit boards do
not understand even their basic fiduciary responsibilities!
The Urban Institute recently released the results of a study on governance of
midsized nonprofits with annual budgets of $500,000 to $5 million. These
represent approximately one in five of all nonprofits that file IRS 990s. The
study found that these mid-sized nonprofit Boards were less engaged in many
basic stewardship responsibilities. They had difficulty attracting new members.
The full study is available in PDF format at
www.urban.org/puplications/411659.html
This and other recent studies and articles underscore the fact that way too
many nonprofit Boards are not clear about their most basic governance and fiscal
responsibilities, putting them at risk of errors and omissions, mismanagement,
legal liability and, perhaps even more damaging (in my opinion), damage to your
organization’s mission, purpose and good works! It’s no longer OK to let your
Board bump along blissfully as well-meaning volunteers.
So, what can you do to overcome these
disturbing trends? Here are some practical suggestions:
- Recruit effectively and honestly.
Tell prospective Board members about your expectations for giving and
getting financial support. Explain the role of the Board in governance and
their fiduciary responsibilities.
- Make new Board orientation mandatory.
Take the time to orient new Board members effectively. It takes more than a
lunch meeting! In addition to the basics about your mission, programs and
services, strategic direction, etc., include governance issues, review bylaws
and policies, explain how to read the financials, discuss the duties of Care,
Loyalty and Honesty, conflict of interest, and much more.
- Keep current. Have you discussed the
effects of Sarbanes-Oxley legislation with your Board? Have you kept up to
date with the status of current and proposed federal legislation that will
affect how you manage your nonprofit? Do you understand the changes in the
IRS form 990 and the implications of these changes? The best resource
available is Board Source (www.BoardSource.org).
- Invest in training. Get professional
advice from trainers, accountants and attorneys who understand nonprofits.
Back to Table of
Contents
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Getting Help with Grant Writing
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If grant writing is an issue for
your organization, take a minute to read this article, written by a
professional grant writer and trainer on grant writing. Cindy Kane is a
friend and colleague, and I recommend her highly.
Many organizations do not have the budget dollars to hire a staff person to
write grants. As a result, everyone has the responsibility of grant writing or
the CEO/Executive Director adds grant writing to their list of things to do. In
some cases, you have the capacity, but lack the expertise to go after the larger
federal grants.
Working with a grant writing consultant can be an option for your organization.
Working with a consultant can be rewarding, a positive learning experience or
could be totally frustrating unless you communicate expectations (on both sides)
up front. Here are some suggestions to consider:
Determine your needs; do you need on-going grant
writing support or one-time? A grant writer on contract can be very
helpful to an organization during a busy grant time when your renewals are all
due around the same time. Also, during the federal grant cycle, a grant writer
can help meet deadlines.
What are your budget restrictions? Don’t
expect to hire a good grant writer for $25 per hour. Some grant writers charge
by the hour and others will charge a flat fee for large federal grants. It is
also unethical for a grant writer to charge a percentage of the grant amount.
Grant writers are paid whether or not you win the grant.
Program staff and the accounting/financial staff must
be available to the grant writer with background information, program
statistics and budget schedules. Samples of previous grant applications are
extremely helpful. The grant writer’s responsibility is to take all the pieces
and create a competitive application with little or no hand holding. Missing the
submittal deadline is not an option.
A Scope of Work Contract is a good idea and
should be signed by both parties. Clearly write down what your organization will
provide and what are the expectations of the grant writer. The grant writing
consultant is not an employee and that should be stated in the contract.
Ask for references. A good grant writer will
be able to provide a local reference. Ask a funder or the local grant writing
organization for a reference or a referral.
I’ve been a professional grant writer for several years and from experience,
setting and communicating expectations up front has been a priority. I also try
to determine if the potential client is ready to work with me and I also do a
background check, just as the organization should do one on me.
Cindy Kane owns GW Group, LLC, providing grant writing services,
sustainability planning and social enterprise consulting. Cindy is also a senior
consultant with Social Enterprise Ventures, LLC.
Back to Table of
Contents
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Is Social Enterprise Right for Your Organization?
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The funding marketplace is changing, resulting in drastic reductions in funding
for many nonprofits. For example, the United Way of America has recommended that
its affiliates focus all funding on only three major areas. The current
Chronicle of Philanthropy reports that overall donations to nonprofits rose only
1% last year and predictions are that 2008 will be worse.
What impact will this have on your organization? Will you continue to do
fundraising-business-as-usual or will you consider how you can diversify your
revenue sources to find sustainability?
Social enterprise may help you reduce your reliance on traditional funding
sources.
What is social enterprise, or earned income? It is
unrestricted money. It is
yours to spend how your agency sees fit to support and enhance your mission.
Spend it on new programs or services, or on increased staff salaries and
benefits, or on capital improvements. My colleagues and I in Social Enterprise
Ventures, LLC have taught the concepts of social enterprise for more than 6
years and have led as many as 60 nonprofits through the process to develop a
business plan for earned income.
We believe that the most effective way to step into the world of social
enterprise is to base an earned income venture on what you already do, and know
and have. Our training is hands-on and interactive. A comprehensive curriculum
includes a workbook filled with work sheets and exercises and includes
consultation for up to a year. Expedition training includes 7 modules that guide
your team through all the phases of a mini-MBA developed for the small to medium
sized nonprofit.
Want to learn more? Visit
www.socialenterpriseventures.com or contact me at .
Back to Table of
Contents
Since the issues of nonprofit governance are so critical, I remind you once again of the importance of keeping current. Visit
www.BoardSource.org today and begin learning. A membership is only $90/year and well worth it, but even without joining, the web site is valuable.
Another good resource is www.independentsector.org.
To learn more about social enterprise, visit
www.socialenterpriseventures.com, sign up for the free e-newsletter and review recent editions to learn what other nonprofits in the US are doing to diversify their income. Another excellent resource is the Social Enterprise Alliance at
www.se-alliance.org.
Please let me know if you find good nonprofit Internet resources so I can share them with other readers...there are now more than 4,500 people who receive this newsletter!
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!
Order Now So You Don't Forget
Go to the Order Form to order your copies of
The ABCs of Building Better Boards
and
Fast Fundraising Facts For Fame & Fortune ©
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Back to Table of
Contents
HOW CAN I HELP YOU?
TAKE THIS QUICKIE QUIZ
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Please give me a call if you want to turn any NO into a YES. I can help
with:
- turning your Board into a dynamic group of volunteers,
- facilitating a strategic planning session,
- analyzing your current fundraising and suggesting some new ideas, and
- training volunteers and staff in becoming more effective fundraisers.
Back to Table of
Contents
Here is what people have said about my training and facilitation:
“You certainly shifted my paradigm. After hearing you last
Friday, it is the first time in 11 years as an ED that I was excited abut
fund development. And you got my Board members to that point as well.
Kay
Hopper
RDC for Children, Richardson, TX
“Your seminar in Dallas was the best I ever attended. You
are wise and hilarious.”
Mary Jo Dorn
Catholic Charities of Dallas
"Jean conducted an extremely well
organized and productive [Board] retreat, one that I can
say with confidence that our members count as the finest
ever conducted for us. Jean's follow-up report was
in-depth and meaty, and both Board and staff have
referred to it time and again. The knowledge of
boardsmanship the members took with them has made a
remarkable difference in their levels of commitment and
support."
Eileen Cook, Executive Directorr
Casa Esperanzaa
“Your training was invaluable to me. I dreaded doing this
because I couldn’t even sell someone a candy bar in the past but I was
inspired by your advice to try. I raised about $377,000!"
Joan Shepack
Keystone Botanical Garden, El Paso,
TXX
"I attended the Corporate Sponsorship Workshop - WOW! You
were amazing! What an OPPORTUNITY for me!!
Your presentation style was EXCELLENT. By far the best
workshop I've been to in a long time (content and style both!)."
Vicki
Kopplin
Epilepsy
Foundation of Minnesota
"As a senior-level development officer, I have a hard time
finding useful workshops. Jean's programs should be required for even us old
CFREs."
Trisha Dunbar
Visiting Nurse Association,
Dallas, TX
Jean Block
Consulting, Inc.
7915 Cliff Road NW
Albuquerque NM 87120
(505) 899-1520
Fax (505) 890-5285
Email:
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"I
love your newsletter! It's refreshing, fun
and filled with helpful hints"
Toni Paglia,
Director of Development, The ARCRC
Syracuse, New Yorkk |
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