Just because an organization does good work, it doesn't necessarily qualify for tax-exempt charitable status. Nor does it have to incorporate. Attorney Anthony Mancuso, who wrote the book on forming a nonprofit corporation, answers some frequently asked questions about whether a group can -- or should -- become a 501(c)(3). He also has advice on dealing with one of the trickiest tasks that a new organization will face -- choosing a name.
More and more grantmakers are demanding program evaluations as a condition of funding. Management consultant Carter McNamara lays out a framework for conducting these evaluations, and he charts the various methods available for gathering valuable data.
For several decades, big business has used a management tool known as "benchmarking" to measure performance, motivate employees, and build profits. Now the nonprofit sector is adapting this technique to meet its own needs and to fit its own culture. Christine W. Letts, William P. Ryan and Allen Grossman of the Harvard Business School explain how benchmarking can help nonprofits improve services. They show how the process has been successfully implemented at two organizations, one large and one small.
What are the best capacity-building techniques for grassroots groups? To find out, the Environmental Support Center interviewed a number of technical-assistance providers as well as representatives of the organizations that use their services.
For many in the nonprofit sector, borrowing carries with it an undeserved stigma-it's seen as a sign of poor management. Yet most for-profit businesses would flounder if they couldn't borrow to stabilize cash flow. Nonprofit consultant Richard Linzer explains how organizations can secure the collateral necessary to obtain their own line of credit. He also shows how two nonprofits have effectively used credit-based strategies to stave off fiscal crises and gain a solid financial footing.
If the members of an organization's board are geographically dispersed, they may have trouble working together cohesively. Technology consultant Corinne Waldenmayer shows how to solve this problem by using a variety of electronic tools and resources.
Good
publicity is a key to gaining support for your
cause, bolstering membership, even raising more
money. But too many nonprofits fail to make
the most of their publicity opportunities--or
fail to recognize an opportunity when it comes
along. Veteran communications consultant Richard
Beamish explains why the press needs you as
much as you need them. He illustrates the ins
and outs of dealing with the news media, and
shows how to work with the press to make your
presence known in the community, influence public
policy, and enhance your organization's image.
In
the imperfect world of grants management, there's
no such thing as an ideal system for keeping
track of the voluminous paperwork that every
office generates. The key, according to
grants administrator Henry Flood, is to devise
a practical system that works for you-and anyone
who might succeed you.
Figuring
out what to pay an organization's top executive
is one of the biggest challenges facing any
board of directors. The National Center for
Nonprofit Boards offers some guidelines for
carrying out the process.
Because
of the frequently intangible nature of nonprofit
work, job performance can be difficult to appraise.
But no organization can afford a payroll padded
with excess or inefficient workers, so regular
employee evaluation remains one of the most
important responsibilities facing nonprofit
managers. Personnel expert Jerry Jenson describes
the pros and cons of various approaches to this
critical task.
Grants
managers serve many masters. They must
facilitate the work of program staff while ensuring
that every obligation to a funding source is
being met. It's a job that takes on special
importance when dealing with government grants,
which have strict compliance and reporting requirements.
Veteran grants administrator Henry Flood shows
how to set up the necessary record-keeping apparatus,
quality review procedures, and other systems
needed to stay on top of the job.
The federal government
may not be as generous with construction funding
as it once was, but many departments still award
these grants for various purposes. Federal grants
expert Henry Flood tells what's available and
what to watch out for when applying. He also
offers a blueprint for managing the grant once
you have it.
Many
nonprofits have an unfounded fear of borrowing
money, but the ability to borrow can help deal
with unpredictable income steams, growing service
demands, or outdated equipment. Financial consultants
Susan Kenny Stevens and Lisa M. Anderson outline
the types of loans available to non-profits
and how to get them.
Workers
aren't independent contractors just because
you say they are. Courts and government agencies
use a variety of legal tests to determine worker
status. You should be using those same tests
to classify the people who work for your organization.
Attorney Stephen Fishman tells how to avoid
some common mistakes and stay out of hot water
with the IRS.
Most
managers hire people who make them feel comfortable.
According to management expert Robert I. Sutton,
that may be the wrong thing to do if you want
your organization to become more innovative
and productive.
Politicians
and marketers use focus groups to structure
campaigns. Nonprofits can use them too--to connect
with the communities they serve. Judith Sharken
Simon offers a 10-step guide to planning and
conducting focus groups. She shows how to get
the job done efficiently and how to make the
most of what you learn.
Salary
surveys are a window on the job market. They
show what other employers are paying their personnel,
and indicate whether your own wage levels are
competitive. Here's a nuts-and-bolts guide to
designing a salary survey for your own agency.
Over the course of a fiscal year, many nonprofits find themselves tilting back and forth between cash deficits and cash surpluses. Accurate cash flow projection enables management to plan for either situation. ShoreBank's Tim Spilker explains how to prepare cash flow projections and keep your finances on an even keel.
Every
group has a mission, but how do you distill
that mission down to a single, concise paragraph?
Communications expert Janel M. Radtke has some
answers. She also gives several illustrations
of mission statements that work.
It's the annual
return that nonprofits file with the IRS. It's
also a source of public information about your
organization— and
organizations like yours. Peter Swords describes
what the Form 990 reveals about your finances
and operations, and how you can use the 990 as
an information resource.
Nonprofits
frequently make mistakes filling out their Form
990. Tax authority Andrew Dzamba tells
which sections of the form the IRS is most likely
to scrutinize-and which activities are most
likely to trigger an audit. He also offers
ten pointers for avoiding common tax errors.
In
the wake of recent corporate scandals, Congress
has imposed strict new standards for the governing
boards of public companies. Attorney Patrick
O'Hare argues that nonprofit boards would do
well to adopt similar standards--especially
in regard to certification of financial statements,
compensation of senior executives, and financial
officers' code of conduct.
Balance sheets
and income statements may be a mystery to the
uninitiated, but board members have a duty to
know what they mean. Steven Berger tells what
to look for and how to make sense of the numbers.
Few
tasks are more daunting than firing someone.
Because payroll is the biggest expense for most
service organizations, however, cuts in staffing
are often the only way to reduce costs and ensure
survival. That's why managers need to establish
sound policies beforehand. Personnel expert
Jerry Jensen outlines the dos and don'ts of
terminating employees.
Many
nonprofits believe that lobbying is taboo. It
isn't. In fact, directly influencing public
policy may be one of the most effective ways
that you can serve the interests of your clients.
Here's a simple guide to the rules on legislative
advocacy that should help you understand what
your organization can and cannot do.
Recruiting good board members is a persistent challenge for community-based organizations. TGCI trainer Judy Gooch suggests a dozen places to start looking for prospective members. She also identifies some hazards to avoid once the search is underway.
Urban legends are pure hooey, but they still leave a lasting impression. What makes them endure? Chip Heath of the Stanford Business School has identified six qualities that characterize these familiar myths. He shows how those same qualities can help more authentic stories, including the messages your organization wants to convey, get noticed and take hold.
Grants managers
often find themselves struggling with two or
more unintegrated software systems. Tiffy Barnett
has experienced the problem first-hand, and
she suggests some ways to address it.
No
organization can insulate itself completely
from employment-related risks. But written
policies and a carefully drafted manual can
go a long way toward minimizing those risks.
Here's what goes into producing such a manual- along
with a list of dos and don'ts for job assessment.
Because of high
prices and restrictive licenses, your organization
may not be able to purchase all the software
it requires. According to computer expert Howard
Fosdick, open-source software— free of cost and
readily accessible— may be the answer.
In
order to improve their finances, their services,
or their pursuit of mission, nonprofits may
be tempted to merge with other,, similar organizations.
But the road to merger can be difficult-even
dangerous. Strategic planning expert David La
Piana poses 11 questions to help you decide
if your organization is a good candidate for
merger.
Both
volunteer board members and paid employees typically
feel a strong emotional attachment to the nonprofits
they serve, leading them to see merger as more
of a threat than an opportunity. Management
consultant Dan H. McCormick shows how to deal
with this perception and pave the way to successful
organizational change.
A recently released
survey of compensation among nonprofit personnel
shows the median pay for typical nonprofit jobs,
including chief executive officer, director
of development, and grant proposal writer.
Most
organizations assume that getting bigger means
getting better. But if it isn't closely managed,
organizational growth can actually end up diluting
a nonprofit's effectiveness. Management consultants
Paul Connolly and Laura Colin Klein outline
the benefits and perils of growth, and suggest
how to begin the planning process.
Nonprofits
have to file information about their finances
with the Internal Revenue Service. They also
have to make that information public. Failing
to do so can lead to legal hassles and public
relations problems. Do you know what your organization
must reveal -- and to whom? Do you know what
impact those revelations could have on your
fundraising efforts?
A
listing of regional and occupational salary
surveys for nonprofits, plus related resources
pertaining to compensation policies and decisions.
Like
any organizational innovation, going online
takes careful planning. In addition to the technical
challenges, there's a whole host of administrative
and policy concerns to confront. Putnam Barber
explains how to manage the process.
Board
conflicts can present some of the most formidable
challenges that a nonprofit manager must face.
They generally come in two forms--conflict between
members of the board and conflict between board
and staff. Professional mediator Marion Peters
Angelica looks at both of these nettlesome situations
and offers practical strategies for resolving
them discreetly and effectively.
Opponents
call it the "Silence America" amendment. A Republican-sponsored
measure would place severe restrictions on federal
grantees who use non-federal money for lobbying
or other advocacy efforts. A broad-based coalition
of charitable groups is mounting a vigorous
campaign to defeat the amendment, which could
seriously jeopardize the ability of nonprofits
to represent clients and influence public opinion.
Many
nonprofit groups assume that because their cause
is noble, their employees should be willing
to work for little money. But without the ability
to attract and retain good workers, any enterprise
is doomed to failure. That's why it is critical
to devise compensation policies that are both
competitive and fair. Personnel expert Jerry
Jensen explains how to develop an effective
pay system that is consistent with your organization's
goals and capabilities.
Faced with rising rents, more and more nonprofits are scrambling for affordable office space. Multi-tenant nonprofit centers promise greater cost efficiencies and new opportunities for collaboration. China Brotsky, who heads the Tides Foundation's real estate initiative, describes how multi-tenant centers work and what they have to offer.
Reducing
your agency's budget is never simple. If you
have little in the way of unjustified spending
to eliminate, there are no easy targets. And
imposing a wage or hiring freeze can diminish
morale and adversely impact services. Nonprofit
management consultant David Maddox explains
why budget cuts may still be necessary, and
how you can implement them with maximum fairness
and minimum disruption.
With
new technology, nonprofits are able to connect
with their constituents much more effectively.
But when a development office relies on poorly
configured equipment and inconsistent databases,
more money is spent and less money comes in.
Susan Packard Orr offers a blueprint for getting
your house in order.
Good grant administration starts with a set of organization-wide policies. Veteran grants administrator Henry Flood offers two model policy statements, one for local governments and another for nonprofit organizations.
Entities
that receive substantial funding from the federal
government are subject to the Single Audit Act,
requiring an organization-wide review that includes
both financial and compliance components.
Veteran grants manager Henry Flood explains
the obligations that a single audit entails.
All
across the country, traditional women's organizations
are getting grayer. As baby boomers shun the
role of "professional wife" and volunteer, the
stalwarts who have run these organizations look
in vain for their successors. Who will fill
the void?
