Connect With Us
YouTube
RSS

257 posts categorized "Nonprofit Management"

The 'Overhead' Pledge

August 21, 2014

Cut_costsI was in a room full of international development professionals at the InsideNGO Annual Conference, and the excitement was palpable. Why? We had all just raised our hands and pledged to fully disclose the true costs of our nonprofit operations to anyone who wanted to see them.

This is a breakthrough for our sector, and affirms that we are willing to transparently and consistently report our costs. What's more, the pledge is based on the understanding that the overhead debate actually undermines nonprofits' ability to deliver transformational results. We are convinced that overhead transparency will lead to more open dialogue, real collaboration with funders, and a greater focus on outcomes and results.

Within the core concept of transparency, however, there are two recommendations we are focusing on right now:

Eliminate functional allocation. This IRS requirement allows organizations to allocate costs rather indiscriminately to programs, fundraising, and general administration categories. While the goal is to shed light on organizational efficiency across the nonprofit sector, the relaxed guidelines allow organizations to manipulate their expenses across categories, often inflating their program costs to appear more efficient. Organizational efficiency is never cut-and-dried, however, and more importantly, the guidelines don't take into account organizational effectiveness.

Eliminate direct and indirect costing on grants. Each funder has its own guidelines around direct and indirect program costs. When funders cap the amount they are willing to pay toward indirect costs, organizations are incentivized to manipulate their numbers in order to recover as much as of their costs as possible, or worse, they cut investments in organizational capacity that can result in them having greater impact.

Failure to eliminate these provisions will only serve to:

  • Starve nonprofit organizations from making key organizational investments that boost their impact and increase their efficiency.
  • Create division within organizations between program staff (perceived as "wanted" costs) and operation staff ("unwanted" costs).
  • Limit consistency and distort real benchmarking across the sector.
  • Increase administrative costs (necessitated by having to manage expense reporting in multiple ways to meet a variety of funder needs).
  • Reduce transparency.
  • Place the focus on administrative costs instead of impact and obscure questions around the real cost of social change.

So that day in D.C., we all raised our hands and pledged to clearly and honestly disclose the full costs of our operations, accompanied by explanations about why our investments were essential to achieving our respective missions.

Continue reading »

9 Reasons to Become Powered by Pro Bono Services

July 08, 2014

Headshot_aaron_hurstWhat would your nonprofit do with an additional 20 percent in its budget? What if you could achieve that by securing professional support from marketing, information technology, human resources, finance, and strategy professionals? Still not convinced pro bono service is the rocket fuel you need to achieve your mission? While there are many ways in which pro bono can positively impact your organization, here are nine reasons guaranteed to change your mind.

1. You need a strong voice. In an increasingly noisy world, it's imperative nonprofits make themselves heard. Pro bono resources can help your organization create key messages and visual identities, brand strategies, attractive and user-friendly websites, compelling print collateral, and more -- all of which are critical if it hopes to develop a clear and powerful voice that engages a broad range of stakeholders and reaches across organizations to create impact.

2. The best nonprofits are doing it. Some will tell you pro bono is only for failing nonprofits that can't afford to pay for services. Gerald Chertavian, founder of Year Up, would say that such people "suffer from a severe lack of imagination." Year Up, as it happens, is one of the most successful nonprofits in the U.S. They've worked with more than six thousand young people nationwide and have sites in eleven cities. They produce very successful outcomes (84 percent of program graduates are in school or working full-time within four months of graduation). They operate with a staff of more than three hundred people and an annual budget of over $40 million and have twice been voted one of the top fifteen nonprofits in the U.S. to work for. And they've been pro bono believers since the beginning. Pro bono support from Alta Communications helped kick off the initial Year Up venture, and over the years Gerald has successfully locked in pro bono support from countless sources, including New Profit Inc. and Monitor Deloitte, whose advice with respect to strategic planning helped shape the organization into the powerhouse it is today.

3. It helps foster talent and leadership. The nonprofit sector is the people sector. Nonprofits succeed when they have great people and great leadership. And that requires investment. You need systems, training, and infrastructure to get board members, employees, and volunteers into the right roles. Pro bono projects can help nonprofits build the necessary structures for talent retention and development, as well as for setting appropriate goals and performance management processes that lead to strategically aligned growth and staff development.

4. It generates significant corporate support. Many companies are much more likely to become large donors if they have employees deeply engaged in your mission. Companies like Deloitte hugely favor their pro bono partners over other grantees when it comes to providing significant financial support.

Continue reading »

Most Popular PhilanTopic Posts (June 2014)

June 30, 2014

Summer -- and the World Cup -- are heating up. Before you head out for that well-deserved vacation, here's another chance to catch up on some of the great content we posted in June....

What have you read/watched/listened to lately that made you think, surprised you, or caused you to scratch your head? Share your finds in the comments section below....

An Organizational Structure That Works for Change

June 16, 2014

Headshot_thomas_somodiMany, if not most, people would argue that the capacity of a nonprofit organization to change is critical to its survival over the long term. To that end, the nonprofit literature is full of theories, methodologies, recommendations, and analyses with respect to how nonprofits should be structured and operated in order to maximize their ability to thrive and drive change.

Yet, even with all the guidance at their disposal, too many nonprofits fail to make an impact or achieve the desired change.

The reality is that if we want to see progress in this area, nonprofit organizations need to rethink their relationship to the dynamics of organizational change, and the best place to start is with the concepts found in Change Science.

Step One – Develop and Communicate a Proper Perspective of Change in the Organization

One of the first things Change Science tells us is that change is continuously occurring all around us. Every time an event is held, a donor is contacted, a donation is processed, a program is launched or altered, something in the organization's calculus has changed. It is critical that everyone in an organization, from the board of directors on down to individuals in frontline staff positions, understands that basic fact.

Step one, then, is for everyone to stop thinking of change as something that happens "out there" and to recognize that the organization already is dealing with a continuous stream of change at every level.

Step Two – Develop an Organization-Wide Understanding of Change-Related Responsibility

So how does an organization manage continuously occurring change? The answer is simple: delegation of responsibility. From the person responsible for reserving event space and inviting potential donors, to individual program managers, to the executive or executives tasked with setting and implementing the organization's strategic direction, responsibility for managing change has to be delegated.

Delegating responsibility for change carries an added benefit: employees who are given responsibility for managing some aspect of change are automatically empowered, and an empowered employee is an engaged and more effective employee. Indeed, what is often lacking in nonprofit organizations is a top-to-bottom recognition of the fact that not only is there a significant amount of change continuously occurring in and around the organization, but that through the delegation of responsibility, individuals within the organization already are managing that change.

Continue reading »

Taking Board Leadership From Good to Great

May 14, 2014

Headshot_kevin_monroeI'm a consultant who spends a lot of time working with nonprofit boards,
and as I ponder the experiences and effectiveness of many of those boards, I can't help but notice the gap that exists between their promise and actual performance. In fact, it brings an old song to mind...

You may say I'm a dreamer,
But I'm not the only one.
I hope someday you'll join us,
And the sector will grow as one.

Okay. I took some liberties with the lyrics. But since this is about board leadership, I thought you'd catch my drift and forgive me.

I'm in this line of work because, as the song goes, I'm a dreamer at heart and truly believe in optimal scenarios, especially as it relates to the millions of do-good organizations around the world and the people who lead them every day.

Imagine how different things would be in communities across the U.S. and around the world if every board member that served a nonprofit or NGO vowed to invest only their best into the organizations they lead and serve. They would read the financials and the body language of frustrated employees. They would hold executive leadership accountable in the boardroom – and in high regard outside it. They would balance criticism with encouragement. There would be fewer dictates and more discussion. Instead of being evaluative of goals, they would be evangelical about missions. What if breaking even and taking chances were equally rewarded? What would happen then?

Imagine.

Continue reading »

Weekend Link Roundup (November 9-10, 2013)

November 10, 2013

Colorful-autumn-leavesOur weekly roundup of new and noteworthy posts from and about the nonprofit sector....

Collaboration

Collaboration is hard, writes Third Foundation founder Jon Huggett on the Markets for Good blog. But your odds of success are greatly improved if you follow these six simple rules:

  1. Share hard goals, not values.
  2. Measure for improving, not proving.
  3. Choose the change, not who is in charge.
  4. Share credit for successful ideas, not put the "genius" on a pedestal.
  5. Spread ideas, not organizations.
  6. Embrace competition, don't discourage it.

Education

Created by the Great Schools Partnership, the Glossary of Education Reform defines and describes widely used school-improvement terms, concepts, and strategies. Useful -- and a sharp presentation.

Health/Healthcare

"Like so many freshly minted doctors, I thought I had all the answers," writes Risa Lavizzo-Mourey, president and CEO of the Robert Wood Johnson Foundation, on LinkedIn. But an indigent female patient, admitted "late on a winter night, homeless and helpless," taught her she didn't. "My medical training never taught me that how and where a patient lives, learns, works, and plays has more to do with his or her health than the treatments we were diligently learning. No one ever suggested that society is just as much our patient as that person waiting for us in the examining room. Our care ended at the front door of the hospital -- and that wasn’t far enough...."

Continue reading »

[Infographic] Executive Director Listening Project

November 02, 2013

In 2013, the D.C.-based Eugene and Agnes E. Meyer Foundation surveyed nearly one hundred executive directors of organizations it supports about the challenges that affect their personal and professional effectiveness. Some of what the foundation learned is illustrated in the handsome infographic below:

Continue reading »

Most Popular PhilanTopic Posts (October 2013)

November 01, 2013

A shutdown of the federal government that lasted sixteen days, the botched rollout of HealthCare.gov, a well-deserved (!) Red Sox win in the World Series -- October was nothing if not eventful. And now that it's history, it's time to look back at the most popular posts on PhilanTopic during the month:

What have you been reading/watching/listening to that PhilanTopic readers should know about? Share your favorites in the comments section....

[Review] 'The Cycle: A Practical Approach to Managing Arts Organizations'

October 28, 2013

Book-cover_The_CycleA spate of negative developments, including the decision of a bankrupt New York City Opera to shut its doors, the ongoing lockout of musicians at the Minnesota Orchestra, and surveys showing a decline in theatre attendance, would seem to spell trouble for nonprofit performing arts organizations.

Don't cue the fat lady just yet, suggests Michael M. Kaiser, president of the John F. Kennedy Center for the Performing Arts, in his new book, The Cycle: A Practical Approach to Managing Arts Organizations (Waltham, MA: Brandeis University Press, 2013). Yes, nonprofit arts organizations face significant challenges — including the aging of their traditional audiences, the impact of disruptive technologies, and the lingering effects of the Great Recession — but by following the principles laid out in his book, any arts organization, regardless of size, target audience, or location, can set in motion "an internal engine that powers consistent success."

Known in some circles as the "turnaround king" for his successful efforts to save or revive financially troubled organizations such as the Kansas City Ballet, Alvin Ailey American Dance Theater, American Ballet Theatre, and the Royal Opera House in London, Kaiser draws on his extensive experience to illustrate in The Cycle how "good art, well marketed" attracts loyal audiences, volunteers, board members, and donors whose support can be reinvested in developing even bolder, more exciting programming, eventually creating a positive feedback loop with a circular momentum of its own.

Continue reading »

A New Kind of Strategy for Nonprofits -- Convene, Reflect, and Take Time to Strategize

October 07, 2013

(Carla Goldstein, JD, is chief external affairs officer at the Omega Institute and co-founder of the Omega Women's Leadership Center.)

Headnote_carla_goldsteinThe top managers of the Legal Aid Society's Juvenile Rights Practice only get to meet once a month, if that. "We needed time away from our hectic court-based environment to think more clearly, without interruption, and in a supportive environment," says Ann Marie Scalia, attorney-in-charge of the Manhattan Juvenile Rights office. Theirs is not a unique story.

In Washington, D.C., GirlTrek, a national nonprofit focused on helping black women and girls improve their health by walking, was at a turning point. The group was growing exponentially but needed time to plan and figure out the most strategic way to scale and launch their big push to get one million black women "walking in our neighborhoods" by 2018.

In New York State's Orange County, the domestic violence prevention organization Safe Homes identified a need to improve their internal communications and supervisory structure and to incorporate self-care into their institutional culture. That might seem like a luxury, but given the high stress levels among staff in an extremely challenging environment, it was critical for Safe Homes.

Continue reading »

Weekend Link Roundup (September 21-22, 2013)

September 22, 2013

Four_seasonsOur weekly roundup of new and noteworthy posts from and about the nonprofit sector....

Corporate Philanthropy

Corporate support can be a key factor in securing your organization's future, but many of you may be lost when it comes to attracting and keeping such support. Not to worry. Guest blogging on Beth Kanter's blog, Simon Manwaring, CEO of We First, shares a seven-step plan designed to help you do just that.

Fundraising

Nonprofits want to be loved, and they especially want to be loved by their donors. How can they make that happen? Start by loving your donors back, writes Jeff Brooks on his Future Fundraising Now blog. "Focus on them. Obsess about them. Seek ways to understand, serve and please them."

Healthcare

On the Collective Impact blog, Christine Kendall, a senior consultant at FSG, argues that, like it or not, the Affordable Care Act, is going "to drastically change healthcare in America as it is rolled out over the next five years." And for organizations in the healthcare space, "[b]eing ahead of the healthcare reform curve means moving from symptoms, diseases, and working in isolation to thinking about health determinants, systems change, and collaboration."

Continue reading »

[Review] 'Cause for Change: The Why and How of Nonprofit Millennial Engagement'

September 19, 2013

Cause_for_changeKari Dunn Saratovsky and Derrick Feldmann, the authors of Cause for Change: The Why and How of Nonprofit Millennial Engagement, believe that nonprofit organizations must change the way they go about their business if they hope to connect with the rising millennial generation. But Gen-Xers, baby boomers, and older nonprofit leaders need not run for the hills. Anticipating a certain amount of generational skepticism and pushback, Saratovsky, former vice president of social innovation at the Case Foundation, and Feldmann, CEO of Achieve (and a frequent contributor to PND), do a lot of hand-holding as they guide the non-millennial reader through the process and practical steps needed to develop and implement a long-term engagement strategy for millennials.

According to Saratovsky and Feldmann, the "why" of millennial engagement is simple: nonprofits can't afford not to engage millennials on millennials' own terms if their organizations are to thrive. In part, that's because millennials boast $62.7 billion in discretionary spending power and, perhaps more importantly, are in line to inherit some $41 trillion in wealth from their parents and grandparents. What's more, Saratovsky and Feldmann argue, millennials insist on being actively engaged, as opposed to simply solicited, and are driven by personal relationships based on trust.

The "how" is more complicated. Saratovsky and Feldmann propose a "Millennial Engagement Platform" comprised of four "operational and cultural components" — "leadership inviting" (i.e., inviting and empowering millennials to connect with the organization’s decision makers); transparency; social connectivity; and a solution-inspired environment. To implement the platform effectively, however, an organization first needs to "BUILD" it:

  • Be unified as an organization about working with the millennial generation;
  • Understand the complexities of the technological and cultural environment in which millennials have grown up;
  • Identify those seeking to make a difference through calls to action and peer identification;
  • Lead through conversational and relationship-oriented engagement rather than focusing on event attendance figures; and
  • Determine and institutionalize how the organization wants millennials to be involved and to what end.

Continue reading »

After Overhead: Investing in Nonprofit Financial Fitness

September 03, 2013

(Rebecca Thomas is a vice president at the Nonprofit Finance Fund, where she has strategic responsibility for national arts initiatives, funder partnerships, and product development efforts that advance NFF's profitability, visibility and impact.)

Headshot_rebecca_thomasRecent efforts to end the overhead myth are to be applauded. But they don't go far enough. Funders also need to focus on nonprofit resiliency.

Increasingly, funders understand that "overhead" costs directly support an organization's ability to deliver results and that the overhead ratio shouldn't be used as a simplistic indicator of an organization’s ability to deliver on its mission. The bigger opportunity here, however, is to go beyond funding the full costs of delivering specific services to build an organization's financial strength through surpluses and savings.

After all, many nonprofit organizations that routinely fund their administrative and fundraising expenses often are operating perilously close to the financial brink. They lack the resources to develop innovative approaches to service delivery, take calculated operational risks, manage unexpected funding shortfalls, and cultivate new, more reliable streams of revenue. The loss of one big government contract, an unanticipated facility emergency, or a period of economic distress can be enough to push these agencies over the edge.

Nonprofit Finance Fund's 2013 State of the Sector survey showed that, three years after the official end of the recession, the majority of nonprofits are still unable to address the needs of people and communities they serve. While more than 70 percent funded overhead by bringing in enough revenue to cover their expenses, only 48 percent reported an ability to meet service demand, and 90 percent said the outlook for people they serve will be less certain or the same in the coming year.

Continue reading »

Most Popular PhilanTopic Posts (August 2013)

September 02, 2013

It's the start of a new month, which means it's time to look back at the most popular posts on PhilanTopic over the last thirty days:

What did you read/watch/listen to in August that PhilanTopic readers should know about? Share your favorites in the comments section....

Six Ways to Make Your Volunteer Board Members Feel Appreciated

August 13, 2013

(Allison Shirk is a freelance grantwriter based in the Northwest. In her last article, she offered some tips to help you spice up your grant proposals.)

Headshot_allison_shirkA new generation is making its presence felt, and its members are eager to give more than just their hard-earned money. They want to give their time and talent, to get down in the trenches and serve on boards. They want their ideas to be taken seriously, put into action, and reported back on with charts and graphs. Oh, and they want to be appreciated and recognized for their efforts and contributions to your cause or organization.

What's that? You're too busy to let your volunteer board members know their efforts are appreciated? You might want to rethink that. Before you start planning your next volunteer appreciation event, run through this checklist of things you can do to show you care.

Common courtesy. The easiest way to appreciate and recognize volunteer board members costs you nothing. It's giving them a proper greeting when they arrive for a meeting and letting them know how grateful you are for the time and effort they’ve expended to be there. It's small things like starting and ending the meeting on time. It's making sure everyone's voice is heard and that everyone has a chance to contribute to the discussions.

Continue reading »

Contributors

Quote of the Week

  • "[Richard] Wagner's music is better than it sounds...."

    Mark Twain

Subscribe to Philantopic

Contributors

Guest Contributors

  • Laura Cronin
  • Derrick Feldmann
  • Thaler Pekar
  • Kathryn Pyle
  • Nick Scott
  • Allison Shirk

Tweets from @PNDBLOG

Follow us »

Tags

Other Blogs