92 posts categorized "Governance"

The 7 Recruiting Principles of Highly Effective Nonprofit Boards

April 15, 2021

Board-member-serviceThe challenges of governing a nonprofit are often more complicated than those faced by board members of similar-sized for-profit entities. This is because nonprofit board members are called upon to be trustees of the public good, voices for their communities, advocates of their cause, and ambassadors eager to build a band of true believers, giving their organizations the best chance to create the greatest impact for the most people.

Attending to the seven principles of highly effective nonprofit boards can help your organization set the stage for success:

Principle #1: Culture. Every board has a culture — either by default or intention. Culture is the foundation on which sound governance is built. Healthy cultures are inquisitive and invite diverse perspectives and debate. They embrace generative and strategic thinking. Innovation is valued. In healthy cultures, board members work collaboratively and with humility to solve problems. Members understand their governance oversight responsibilities. They respect the role of management and form a constructive partnership with the CEO. They are intellectually and emotionally invested in the cause they serve and are its champions. Reorienting or reinventing a productive, conscious culture does not happen overnight. It requires board members to recognize the problematic culture and, once they recognize its consequences, accept that it must change and commit to implementing that change.

Principle #2: Character. The time to screen for character is before a board member is seated. Too often, assumptions are made about a person's character based on first impressions or just because they are willing to serve on your board. It's important, therefore, to screen for character during the board member recruitment process. Yet how many boards do? Asking sitting board members to assess character in the recruitment process may feel like too much of a hassle, or they may be embarrassed to check up on someone they know socially or through business. Nevertheless, it is a critical step in the process. When done well, investigating character won't upset a prospective member; instead, it communicates that serving on your board is serious business.

Principle #3: Competence. It is vital for a sitting board to genuinely examine the board member competencies it may be lacking and needs in order to become a highly effective board. There is a significant difference between competence and credentials. A credential is a certification of sorts for which an individual has successfully completed training or course work. The value of that credential is dependent on the credentialing agency, its reputation, and the rigor of the course work. But a credential on its own is not a guarantee  of competence. By contrast, competence is the mastery of knowledge and/or a skill that enables one to consistently deliver high-quality results. Competence is assessed by an individual's performance and success in the field in which he or she endeavors.

Principle #4: Connections. Being connected to your constituency is fundamental to a nonprofit's ability to achieve its mission. When organizations fail to achieve the levels of support they need to thrive, they often assume it's because they lack  visibility. The truth is, they need to develop a band of believers among a cross-section of constituencies. To thrive, nonprofits need to have healthy relationships with at least four types of constituencies: those served by the organization, those who are influential within the community, well-heeled philanthropists, and those who possess unique skills or insights that can fuel an organization's success.

Principle #5: Composition. Building strong boards that comprise the character, competence, connections, and diversity that organizations need to thrive is not a complicated process. The approach is straightforward, but it takes time and discipline to do it right. To truly represent the communities nonprofits serve, they must have individuals on the board that carry the perspectives and concerns of people who live in those communities. Diversity, inclusion, and equity are essential concerns for nonprofits—and governing boards are the trustees.   Even beyond the obligation to have representative governance, research shows that boards are more effective when diversity and inclusion are integrated with competence and character.

Principle #6: Continuity. Knowledge of how a nonprofit is organized, functions, and performs over time is critical to sound governance and decision-making. In a nonprofit organization, staff are the fuel that make things go. They are the source of the passion (competence and commitment) and reputation (authority and action) all organizations need to function effectively. And they power every critical function of the organization, from program management to fundraising to administration.  So it's imperative that members of the governing board know how the organization is wired, and they have a special responsibility to ensure it continues to run, and run well, over time. While steering clear of meddling in day-to-day management of the organization, board members must understand how staff are deployed, how things work, and which policies guide them.

Principle #7: Collaboration. Collaboration is the mindset that enables people to work together cooperatively to advance a cause. A collaborative mindset also creates places where ideas can be shared and explored safely and environments that are conducive to respectful inquiry. It is a kind of give-and-take attitude grounded in trust and the pursuit of mutually satisfying goals. But true collaboration is difficult to achieve. Creating a truly collaborative mindset requires a constant, concrete commitment to the cause the nonprofit serves. And that commitment needs to resonate in the hearts and minds of the organization's leaders if they hope to overcome the hurdles and pain points that so often scuttle its realization.

Have a board member recruiting tip of your own? Feel free to share it in the comments section below.

Heashot_James Mueller

James Mueller is president of James Mueller & Associates and author of the new book Onboarding Champions: The Seven Recruiting Principles of Highly Effective Nonprofit Boards.

Amid the Coronavirus Pandemic, the SDGs Are More Relevant Than Ever

May 10, 2020

SdgThe world is dealing with a crisis of monumental proportions. The novel coronavirus is wreaking havoc across the globe, destroying lives and ruining livelihoods. The primary cost of the pandemic as calculated in the loss of human life is distressing, but the knock-on effects in terms of the global economy, people's livelihoods, and sustainable development prospects are even more alarming. Indeed, the International Monetary Fund estimates that the global economy has already fallen into recession, and while the full economic impact of the crisis is difficult to predict, the ultimate cost is likely to be extraordinary and unprecedented.

That is why we must all support the United Nations' call to scale up the immediate health response to the virus, with a particular focus on women, youth, low-wage workers, small and medium enterprises, the informal sector, and vulnerable groups who were already at risk. Working together we can save lives, restore livelihoods, and get the global economy back on track.

At the same time, the pandemic has utterly exposed fundamental weaknesses in our global system of governance and demonstrated beyond a shadow of a doubt how poverty, inadequate health systems, underresourced educational systems, and sub-optimal global cooperation can exacerbate a crisis like COVID-19. These are exactly the kinds of challenges the UN's Sustainable Development Goals (SDGs) are meant to address.

The rapid spread of the virus has come at a time when the SDGs were beginning to get traction and a significant number of countries were making progress in implementing them. But with the world today consumed by the need to contain the virus and mitigate its many adverse and debilitating impacts, countries are resetting their priorities and reallocating resources to deal with the challenge.

Emerging evidence of the broader impact of the coronavirus crisis on efforts to achieve the SDGs should be troubling for all. UNESCO estimates that some 1.25 billion students globally have been affected by the pandemic, posing a serious challenge to the attainment of Sustainable Development Goal 4, while the International Labour Organization (ILO) projects that some 25 million people could lose their jobs over the coming months, dealing a serious blow to progress on Sustainable Development Goal 8 — and that is likely just the tip of the iceberg.

Crucially, in many parts of the world, the pandemic also is creating roadblocks to progress on clean water and sanitation targets (Goal 6), addressing pervasive inequality (Goal 10), and, perhaps most importantly, addressing the twin crises of global poverty (Goal 1) and hunger/food insecurity (Goal 2). Indeed, the World Bank estimates that pandemic will push an additional 11 million people into poverty.

In other words, what we cannot afford to do in this critical moment is to de-link the global response to the pandemic from action on the SDGs. Indeed, by continuing to make progress on the SDGs, we will be putting ourselves on a firmer path to dealing with global health risks and the emergence of new infectious diseases in the future. Achieving SDGs Goal 3, for instance, will mean that we succeeded in strengthening the capacity of countries to conduct early warning surveillance, reduce the risk of contagious pathogens from spreading, and manage the situation promptly and effectively should they be faced with such a situation.

As the global community strives to deal with the challenges posed by the pandemic, we must seek to turn the crisis into an opportunity and ramp up our actions to support and ultimately achieve the goals by 2030. The world has the knowledge and expertise to muster the full complement of resources needed to to do that. Buoyed by a spirit of solidarity, governments, businesses, multilateral organizations, and civil society have been able to raise and direct trillions of dollars to defeat the virus. We can do the same to defeat global poverty, reduce inequality, provide a quality education to all, protect the climate, and build a more just and sustainable global economy. All that is missing is the political will.

As governments, business, and civil society around the world respond to the impacts of the pandemic, it is incumbent on all of us to stay focused on the underlying factors that have exacerbated those impacts. We cannot relent in our efforts, even amid this painful pandemic, to address people's basic needs, protect the beauty and diversity of our planet, and build a fairer and more just world. COVID-19 reminds us that we face common, global challenges that can only be solved through united, global action. In a crisis like this, we are only as strong as our weakest link.

Nana Addo Dankwa Akufo-Addo and Erna Solberg are, respectively, president of the Republic of Ghana and prime minister of Norway and co-chairs of the UN Secretary-General's Eminent Group of Advocates for the Sustainable Development Goals.

Fit to Fund: Who Should Pay to Raise Standards for Good Financial Grant Practice?

November 08, 2019

Global standardsFunders have a right to expect that their nonprofit grantees have systems and structures in place to manage grants effectively and ethically. But does that right also imply that funders have a responsibility to invest in the grant management capabilities they expect from organizations they entrust with funds?

In the production of French cognac, nearly twenty million bottles, or 8 percent of the country’s annual production, is lost to evaporation after the distilled spirit has been put up in oak barrels; this is known, rather romantically, as "the Angel's Share."

A similar but far less romantic phenomenon occurs in the nonprofit sector. According to Caroline Fiennes, author of It Ain't What You Give, It's The Way That You Give It, roughly $125 million in the United Kingdom alone is "lost" by grant recipients in the production of reports required by funders and government agencies; much of that is spent on duplicate assessments as part of the submission of multiple grant proposals.

Rather than going to the angels, this $125 million could be seen as the "admin share," with both funders and their nonprofit grantees spending significant amounts of time and money on multiple due diligence assessments, diverting funds to needless administrative tasks that could be used to change lives for the better.

Most grant proposal forms use different criteria, leaving many would-be grant recipients unclear about what funders expect of them. This also means that many nonprofits end up spending hundreds of hours a year filling in different forms that ask for the same basic information in slightly different ways.

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The Fiduciary Responsibility and Nonprofit Boards

October 28, 2019

AR-160409948A key ingredient of success for any nonprofit is solid board governance. And that requires a blend of intellect, reputation, resources, and access — and that board members faithfully exercise their fiduciary duties.

Board directors have three primary fiduciary responsibilities: duty of care, duty of loyalty, and duty of impartiality. For a nonprofit to operate successfully, it's critical that board members fully understand the nuances of all three.

Best practices for a nonprofit board

When individuals agree to sit on a nonprofit board, they often do so out of a passion for the organization or its cause and may not fully understand the liability or responsibility of oversight that comes with the role. Some best board practices for nonprofits include:

Create a diverse board. Cultivating a culture of openness and inquiry is important to the effectiveness of any board. A board that includes different perspectives naturally allows for a range of ideas and opinions and allows for exploration of different approaches, which in turn benefits the organization.

Plan for sustainability. Planning doesn't just include fundraising and accounting for future dollars. Planning for sustainability means developing and putting a leadership succession plan in place to ensure the future success of the organization. Creating term limits for board members may also be important for the long-term health of an organization. The timely and planned rotation of trustees or directors on and off the board helps prevent complacency and contributes to the influx of fresh ideas.

Strike the right balance. Every nonprofit hopes to forge a strong partnership between staff and the board. And that requires striking a healthy balance between the power and responsibilities of the executive director and those of the board. The executive director should be in regular communication with the board but should also be sure to impart only meaningful information. Too much meaningless information shared with a board creates noise and distracts everyone from the organization's mission and work. By the same token, the board must be respectful of an executive director's prerogatives and avoid micromanaging the functions of the staff and day-to-day activities of the organization.

Recruit fresh talent. Attracting and retaining talent is critical for any organization that wants to succeed. The board is responsible for creating the job description and responsibilities for the executive director and ensuring that competitive compensation and benefit structures are in place for staff.

Be open to feedback. Boards should regularly solicit feedback from an organization's constituents, donors, and stakeholders to ensure that the organization remains focused and on track. Such feedback can also provide insights that the organization may be able to use during its strategic planning exercises.

Focus on transparency. It is critical to share information about what the organization is doing — and why — with donors, stakeholders, and members of the public. And that involves requires regular, planned communication.

Onboard new board members. Be sure to provide an orientation for new board members to ensure they are up to speed prior to their first board meeting. Make sure the onboarding includes the setting of clear expectations for their service on the board, education with respect to their role and the relevant bylaws, and thorough documentation of the organization's mission, values, programs, and finances.

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Less Hassle and Still Charitable: Why Projects Choose Fiscal Sponsorship

August 21, 2019

Fiscal_sponsorshipOne of the big trends we've noticed in both philanthropy and international development is increasing interest in funding different and new types of organizations. For many foundations, traditional public charities are not their first choice for investment. Instead, they are turning to international networks and partnerships that bring together diverse stakeholders, innovation platforms, funder collaboratives and re-granting funds, social enterprises, and short-term projects with a handful of staff.

As a result of this, we’re seeing many funders and project leaders consider the fiscal sponsorship model, which typically entails a project or small startup being "sponsored" by a larger tax-exempt organization with an aligned mission. The larger organization handles governance, financial management, and administration for the project it has agreed to sponsor, while the project (in many cases) pursues an independent strategy with semi-autonomous staff and its own advisors.

Since the Transparency and Accountability Initiative (TAI) transitioned to a U.S.-based fiscal sponsor in 2016, we have been repeatedly asked for advice by both project leaders and program officers. We’ve also watched as the fiscal sponsorship sector has grown. In the international development field, we’re even seeing the demand for fiscal sponsorship expand to other countries, most of which do not have legal frameworks in place to accommodate such a model.

Here in the U.S., the law currently supports a variety of models. In the model used by TAI, the sponsoring organization assumes responsibility for all tax filings, financial reporting, and legal compliance, including ensuring the charitable mission and activities of the project it is sponsoring. Typically the project is expected to contribute to the sponsoring organization’s overhead, abide by its policies, and report to its management and board. The exact terms of the arrangement usually are spelled out in a memorandum of understanding (MOU). The MOU often allows the project or startup to have its own steering committee to direct its strategy.

We are frequently asked about fiscal sponsorship and wanted to share some of the things you should consider before taking the plunge. (Nonprofit leaders may also want to consider how some of these factors are shaping organizational structures in their own fields.) Based on our own experience and what we’ve heard again and again from other projects that have gone this route, below are the top factors in deciding whether to pursue a fiscal sponsorship arrangement:

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Most Popular PhilanTopic Posts (July 2019)

August 02, 2019

It's August, and here on the East Coast the living is...steamy. Not to worry. Our most popular posts from July will cool you down and make you smarter....

Interested in contributing to PND or PhilanTopic? We'd love to hear from you. Drop us a note at Mitch.Nauufts@Candid.org.

An Engaged Board Is a Fundraising Machine 

July 03, 2019

Table-clipart-board-director-11Is your board pulling its weight in terms of fundraising? An active, engaged board can be a huge difference-maker for a nonprofit. We choose board members, after all, for their skills, connections, and potential to boost fundraising revenue — and they usually will, as long as we make an effort to encourage them to put those skills and connections to work.

Here are a few tips to help you do that:

Boost your board's fundraising capacity. You selected your board members for their knowledge, acumen, and abilities, but you still need to familiarize them with your brand, help them engage with your team, and make sure they're aware of your organizational needs and fundraising plans. The best way to do that is by boosting their engagement with staff and distributing tasks based on their specific interests and abilities.

Get and stay connected. If you're only seeing your board members during board meetings, you are missing out on much of what they have to offer. Be sure to invite board members to any community events you hold or workshops you host. An invitation to tour your facility or join you for an on-site visit where they can meet your volunteers and clients also is a good idea. Not only will it help them feel more connected to the organization, it will give them opportunities to network in the community as well as material for stories they can share in support of the organization.

While not every member of your board will be willing or able to take advantage of every invitation, many will, and doing so will help strengthen their rapport with each other and your work. Updating them on a regular basis about your work, your successes, and your ongoing funding needs also will help them feel like they are connected and an integral part of the overall effort.

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How to Find Your Most Engaged New Board Member

May 23, 2019

Board-meetingThere are nonprofits that enjoy a celebrated status in their communities. Powerful people clamor to be on their boards, and they earn those seats with significant contributions and meaningful introductions. And then there are most nonprofits. Their boards work to attract qualified board candidates but often end up wondering whether they should make do with less.

What are these nonprofits to do? The good news is that it is possible to recruit board members whose commitment to your cause more than balances out their lack of connections or personal wealth.

Now, it doesn't hurt to have a few well-connected (and deep-pocketed) people on your board. But having too many can be a problem. Increasingly, nonprofits are looking to solve the challenge of board member engagement. They struggle with board members who don't do much beyond showing up for meetings, or who write a big check to the organization once a year and then drop out of sight. But when it comes to that long-term project or software integration the organization desperately needs, the one that requires board members willing to do research and outreach until the goal is met? Fuggedaboudit.

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New Tax on 'Excess' Executive Compensation Poses Challenge for Tax-Exempt Organizations

March 18, 2019

Tax_puzzleThe ability to attract and retain high-quality executives is an important component in the success of any tax-exempt organization and the fulfillment of its mission. A new provision of the Internal Revenue Code added by the Tax Cuts and Jobs Act of 2017 will have a "sea change" impact on the cost of compensating such individuals. Under the provision, "excessive compensation" paid to executives by a tax-exempt organization will subject the organization to a substantial excise tax liability. The penalty may be viewed as an attempt to level the playing field, inasmuch as the tax consequences associated with the payment of "excessive compensation" paid by for-profit employers, in particular by for-profit public companies, to their senior executives can result in the loss of a tax deduction for excessive compensation payments.

What Is the New Excise Tax?

Effective as of January 1, 2018, "applicable tax-exempt organizations" are subject to a 21 percent excise tax on the sum of (i) compensation paid by the tax-exempt organization (and certain entities related to the tax-exempt organization) for a taxable year to a "covered employee" that exceeds $1 million, and (ii) any "excess parachute payment" paid by the tax-exempt organization to a covered employee.

Which Tax-Exempt Organizations Are Subject to the Tax?

Any organization that is exempt from federal income tax under Internal Revenue Code section 501(a), such as public charities (e.g., United Way), exempt farmers' cooperative organizations, certain state or local governmental entities, and certain political organizations, are subject to the tax.

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Board Diversity: Moving From Awareness to Action

February 26, 2019

Board-diversity-bubbleThe lack of board diversity in both the nonprofit and for-profit sectors is hardly news. And a growing body of reports, articles, and data clearly shows that boards not only are not diverse, they're not even moving in that direction. Indeed, an annual survey of boards of directors of nonprofit organizations published by BoardSource found that 84 percent of board members are white, while 27 percent of boards surveyed reported not having a single member of color.

The survey conducted by my own firm, Koya Leadership Partners, affirms these trends. Of the hundred-plus boards we surveyed, 68 percent of all board members identified as white, while just 24 percent identified as a person of color. We wanted to understand why boards aren't changing, so we decided to ask.

Here's what we learned: 96 percent of boards believe that diversifying the board or executive committee is a key objective, but only 24 percent have taken steps to increase diversity. Clearly, there is a serious gap between intention and action.

Alarmingly, our survey found that most boards aren't even taking simple steps to increase inclusion and advance diversity such as developing a written diversity and inclusion statement, with only 11 percent of the boards we surveyed saying they had done so. Another key finding was related to board recruitment, with effective recruitment strategies emerging as a serious challenge for boards, which often struggle to fill board seats with candidates who contribute to the overall board diversity.

The good news? Closing the diversity gap is far from impossible. In fact, there are a number of steps any board can take, starting now, that will help move it toward real diversity and inclusion. Here are four:

1. Assess your own board through the lens of diversity. If your board has never ordered up a self-assessment, now is the time. Board assessments are an excellent first step to understanding the various talents, skills, perspectives, and experiences board members bring to table and are invaluable in helping board and senior leadership identify what is missing. You can find useful examples of a board matrix online, or you can make one of your own that lists each board member next to their demographic characteristics, experience, skills, and relevant attributes. Many boards find this to be a useful exercise that helps everyone better understand who and what is represented on the board, as well as who and what is not.

2. Recognize that becoming more diverse and inclusive requires culture change. Adding new board members who bring diverse backgrounds and perspectives is critical. But it's not enough. Many boards will also need to undergo a more holistic cultural change process that includes honest assessment, education, and a commitment to changing every aspect of board culture so that it truly embraces inclusivity.

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Weekend Link Roundup (February 23-24, 2019)

February 24, 2019

Gw-life-mask-frontA weekly roundup of noteworthy items from and about the social sector. For more links to great content, follow us on Twitter at @pndblog....

Democracy

"The key to improving the voting process," writes Adam Ambrogi, irector of the Elections Program at the Democracy Fund, "is straightforward: expand accessibility while also prioritizing security."

Giving

Have women's motivations for giving changed over time? Andrea Pactor, interim director of the Women's Philanthropy Institute at the Lilly Family School of Philanthropy; Hillary Person, a former development director at the Pensacola State College Foundation; and Dyan Sublett, president of the MLK Community Health Foundation, take a look at the data.

Governance

On the NCRP blog, Rick Moyers, former vice president of programs and communications at the Eugene and Agnes E. Meyer Foundation and a board member at BoardSource, reminds readers that while "[d]iversity is only one aspect of a larger conversation about equity and power," many boards aren’t ready to have that conversation. With that in mind, there are four things senior leadership should look for to determine whether their board is ready for deeper work in pursuit of equity.

International Affairs/Development

GiveWell has announced a call fro proposals from outstanding organizations operating in Southeast Asia and, in partnership with Affinity Impact, a social impact initiative founded by the children of a Taiwanese entrepreneur, will  provide three grants — one of $250,000, and two $25,000 grants — to organizations that are operating programs in global health and development in any of the following countries: Bangladesh, Cambodia, East Timor, Indonesia, Laos, Myanmar, the Philippines, and Vietnam. More details here.

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Weekend Link Roundup (February 9-10, 2019)

February 10, 2019

Homepage-large-fc-and-gs-are-candid_tilemediumA weekly roundup of noteworthy items from and about the social sector. For more links to great content, follow us on Twitter at @pndblog....

Climate Change

"Someday, perhaps, an entire nation could be powered by renewable energy, but that day is too far off to deal with the climate threat," say Joshua S. Goldstein and Staffan A. Qvist in a new book called called A Bright Future: How Some Countries Have Solved Climate Change and the Rest Can Follow. Instead, Goldstein and Qvist tell Marc Gunther, countries should be looking to nuclear as the short-term answer to the problem. For many in the environmental community, that is a non-starter. Gunther explores the dilemma.

Governance

Writing on the Center for Effective Philanthropy blog, Kim Williams-Pulfer, PhD, a postdoctoral researcher at the Indiana University Lilly Family School of Philanthropy, shares some thoughts on nonprofit boards and the diversity imperative.

International Affairs/Development

On the OECD Development Matters site, Benjamin Bellegy, executive director of the Worldwide Initiatives for Grantmaker Support (WINGS), shares his thoughts on how philanthropy can best contribute to the 2030 Sustainable Development Goals agenda.

Journalism/Media

Journalism and the news media in the U.S. are in trouble, the traditional business model for news threatened with extinction by the consolidation of eyeballs and ad dollars on a few mega-platforms. Forbes contributor Michael Posner looks at the conclusions of a new report funded by the Knight Commission on Trust, Media, and Democracy and finds that while the report diagnoses the problem well, "its recommendations do not go far enough."

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Weekend Link Roundup (November 24-25, 2018)

November 25, 2018

Givingtuesday3A weekly roundup of noteworthy items from and about the social sector. For more links to great content, follow us on Twitter at @pndblog....

Arts and Culture

What role might foundations play in addressing Adverse Childhood Experiences (ACES), a significant risk factor for a variety of health and social problems across the lifespan? John Mullaney, executive director of the Nord Family Foundation, has been thinking about that for some time now and, in a post here on PhilanTopic, shares his thoughts.

Climate Change

Thirty years after The New Yorker published "The End of Nature," Bill McKibben's seminal article about the greenhouse effect, McKibben returns to the pages of the magazine with a look at what we have learned in the decades since about climate change, extreme weather, and their impact on human society. You will not be encouraged.

Education

On the HistPhil blog, Leslie Finger, a political scientist and lecturer on government and social studies at Harvard University, considers some of the implications of foundation grants to state education agencies.

Fundraising

It's not enough for nonprofits to simply thank their donors, says Vu Le, who shares twenty-one tips designed to help you and your organization be better at recognizing and appreciating the people who support your work.

On the Bloomerang blog, Terri Shoemaker, chief strategy officer at Abeja Solutions in Phoenix, Arizona, pays tribute to "the small donor. The little ones. Those generous folks that give when they can to a mailing, online, or even to your very specific appeal on social media."

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Weekend Link Roundup (November 10-11, 2018)

November 11, 2018

11-10-2018-malibu-fire-pchA weekly roundup of noteworthy items from and about the social sector. For more links to great content, follow us on Twitter at @pndblog....

Civil Society

On the twenty-ninth anniversary of the fall of the Berlin Wall, Richard Marker reflects on "the fragility of civil society, the brevity of memory, and the destructive hubris of leaders motivated by xenophobic rage."

Criminal Justice

In the New York Times, Michelle Alexander, author of the acclaimed The New Jim Crow, hails "the astonishing progress that has been made in the last several years on a wide range of criminal justice issues." But she warns that "[m]any of the current reform efforts contain the seeds of the next generation of racial and social control, a system of 'e-carceration' that may prove more dangerous and more difficult to challenge than the one we hope to leave behind."

Environment

The world is drowning in stuff, writes Elizabeth Seagran, PhD, a staff writer for Fast Company. Isn't it time for nonprofits and foundations to do the environment a favor and just say no to all the cheap swag they hand out at conferences and events?

Giving

Nice post on the Charity Navigator blog about philanthropically minded celebs who have turned giving into an art.

Governance

On the GuideStar blog, Bill Hoffman, CEO of Bill Hoffman & Associates, LLC, a Tampa-based consulting firm, shares six things individual nonprofit board members can do to support their CEO's success.

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Nonprofit Boards and Risk

October 11, 2018

RiskWhile most nonprofits know they need to be forward thinking in order to create change, many are (understandably) focused on the day-to-day delivery of programs and services and don't know how to proceed. It's a challenge to strategize about future plans or consider taking on new activities and programs with broader impact when resources are limited and the organization's staff and leadership already have their hands full. Which is why it is especially important for nonprofit boards to weigh and be willing to recommend taking calculated risks. Is yours?

What follows are some commonsense tips for nonprofit board members who are ready to help take their nonprofits to the next level.

Think data. A good strategic planning process should focus resources on the programs likely to have the greatest impact on the groups served by an organization, and data needs to be at the heart of that process. Every program (as well as every internal department) generates data. Making time to identify trends and patterns in that data in order to be more strategic and identify risk is the first step on the road to creating impact.

Assess current risks. In Green Hasson Janks' most recent nonprofit report, Board Governance: The Path to Nonprofit Success, one of the firm's principals, Mark Kawauchi, notes that "a significant percentage of nonprofits are not incorporating and addressing risks in their strategic plans." Mark goes on to suggest that nonprofits with sufficient resources should conduct a comprehensive risk management assessment that incorporates both the organization's operations and its programs.

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Quote of the Week

  • "[L]et me assert my firm belief that the only thing we have to fear is...fear itself — nameless, unreasoning, unjustified terror which paralyzes needed efforts to convert retreat into advance...."


    — Franklin D. Roosevelt, 32nd president of the United States

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