328 posts categorized "Nonprofit Management"

Pay transparency: what it means for job seekers and employer

July 20, 2020

20150319_TransparencypiggybankThere's a growing push for pay transparency in both the for-profit and nonprofit sectors. For those unfamiliar with the concept, pay transparency includes both radical openness about compensation ranges within a company as well as publicly posting compensation ranges in your job descriptions.

Many see pay transparency as a way to close persistent salary gaps that exist between genders and races. The gap affects women of color the most. A recent report from the National Partnership for Women & Families shows that Latinas are paid 54 cents on every dollar paid to white, non-Hispanic men. And across all racial and ethnic groups, women in the United States are paid 82 cents for every dollar paid to men.

Many employers have concerns, however, that a shift to pay transparency would generate internal dissatisfaction and render salary negotiations pointless. A recent LinkedIn Global Talent Survey captures the mixed reception the idea has received. According to LinkedIn's Global Talent Trends 2019 report, 27 percent of HR and hiring professionals say their company currently shares salary ranges with employees or candidates, with a further 22 percent saying they're likely to start doing so within the next five years. But more than half (51 percent) do not disclose salaries or salary ranges.

As executive recruiters serving the nonprofit sector, Koya Leadership Partners has worked with clients on both ends of the spectrum, and many in between. And we've noted that many in the Philanthropic (foundations) and Social Justice sectors have moved toward including salary ranges in their job descriptions as a way to publicly demonstrate their values and help achieve equity compensation in the field. What's more, the move toward pay transparency has picked up speed in the COVID-19 and Black Lives Matter era.

There is some evidence from companies like Buffer, which creates social media tools, that salary transparency policies increase interest from candidates and contribute to greater employee satisfaction and engagement. Buffer uses a publicly available salary calculator to determine salaries for all its employees, and in 2013 it began publishing employee salaries on the Internet for all to see.

Although start-up and tech companies have led the way on pay transparency in the for-profit sector, a number of giants in other sectors have also adopted transparency policies. One of them, Starbucks, has explicitly stated that salary transparency is a tool for achieving gender and racial pay equity, and to that end the coffeehouse chain shares salary bands internally and salary ranges with job candidates who ask. In 2018, the company announced that it had achieved 100 percent pay equity, and the moves it has made on that front have generated a lot of positive press while helping it hire and keep top talent.

So why haven't more organizations adopted transparent pay practices? Compensation can be a charged, highly emotional issue that raises fundamental questions of equity and merit that are not always easy to manage. But in this new era in which we find ourselves, corporate and nonprofit leaders are waking up to the realization that they can and must play a role in creating a more just and equitable society. Creating transparency around pay is one way to do that.

Here are three suggestions for getting started:

1. Conduct an annual compensation audit. Hire a professional to make sure your compensation policies are informed by data and reflect best practices. Identify salary gaps and make a plan for closing them.

2. Leverage the hiring process as a way to begin building transparency. Identify salary bands for new hires before you go to market and communicate them to job candidates, either directly in the job description or through the interview process.

3. Make sure that anyone in the organization in a position to negotiate salaries understands the importance of pay equity and is familiar with best compensation practices — including not asking candidates about their past compensation, which is now illegal in many states.

The trend toward salary transparency seems to be picking up speed and will likely continue to grow as employees demand more from their organizations. Moving toward salary transparency requires organizational change, which is always challenging. But beginning with some of the steps outlined above can help your organization move forward on the path toward becoming more equitable while strengthening your brand and helping you attract exceptional talent along the way.

Headshot_molly_brennanMolly Brennan is founding partner at executive search firm Koya Leadership Partners, which is guided by the belief that the right person at the right place can change the world. A frequent contributor to Philanthropy News Digest and other publications, Brennan recently authored The Governance Gap: Examining Diversity and Equity on Nonprofit Boards of Directors.

How to work effectively with an outside consultant

July 13, 2020

Working with a ConsultantAs your nonprofit adapts to new realities created by the COVID-19 pandemic, strategic guidance from expert consultants can provide invaluable insights for refining your strategy planning, revamping your brand, or rethinking your fundraising strategy. There are a few considerations to keep in mind, however, to ensure that any relationship with an outside consultant produces outcomes that meet your needs.

Here are some tips for working with a consultant or consulting firm:

Don't be stingy with information. Hiring a consultant can provide expertise you may not have in-house, but that doesn't mean you can take a hands-off approach to the project. No one knows your organization as well as you do. To ensure that a consultant fully understands your organization, you'll want to share as much information with him or her as is reasonable. While a good consultant will elicit ideas from team members and pull information together in new ways, he or she will want to review lots of organizational documents and talk to lots of people, from frontline staff to board members. Make sure the relevant documents are ready to go, and be sure to ask key stakeholders to set aside time for a sit-down.

Have a clear process in place. Whether developing a strategic plan or a brand revamp, it's important to know what you're aiming for and how you'll get there. A good consultant will be able to provide a plan for engaging your team that includes stakeholders. That plan should include the key activities, milestones, and outcomes for each step in the process. It should be clear, too, who will be involved in each phase, the decisions that need to be made, and what the deliverables are. Your job is to provide appropriate information, context, and ideas to inform the plan; provide feedback on the work presented; and make the decisions needed to keep the project moving forward.

Understand how decisions will be made. Decisiveness is essential to keeping projects moving forward. Put a plan in place that ensures decisions are made in a timely manner. That means deciding in advance who will give feedback and through what mechanism, who makes the final decision, and how that decision will be made (including considerations with respect to the board's engagement). You'll also need to determine whether key decisions can be made if not all stakeholders are able to present at a critical meeting and what a quorum might look like in such a situation.

Presenting to the board. Even if midstream decisions have been delegated to a committee or staff, keeping the board involved as the project moves forward increases buy-in and will help pave the way for final approval. At Red Rooster Group, our clients have found it helpful to have us make a presentation to the board at key points in the project. Getting information from an outside expert can help busy board members focus on the problem or issue at hand.

There's a flipside to this. For some organizations, the better choice is to have members of the project committee, not the consultant, make presentations to the board, the idea being it will help build trust between board members and staff. Having a board member who has bought into the concept present to the board can also be an effective way to demonstrate stakeholder support for a project. You know your organizational culture and board better than anyone, and a good consultant will defer to your recommendations when it comes to building trust and securing buy-in.

Build your project team. For small nonprofits, a project team may be one or two people. For larger organizations, team members should be drawn from different organizational levels and functions (e.g., executive-level staff, board members, frontline staff members). Members of the team should understand and support the overall goals of the project and be willing to express their ideas and listen to those of others. Meetings and material reviews will take up time, so make sure every team member is given the time needed to do the work.

Designate a point person. At the beginning of the project, decide who will be your organization's liaison to the consultant. The point person may be asked to contact people who are to be interviewed, provide background information and documents, arrange meetings, and make sure that information is shared with key stakeholders.

Establish a schedule. A consultant will need to know in advance about events that may affect the availability of team members. Organizational events, board meetings, vacations, maternity leave, and so on can all affect project workflow and timely feedback and approvals. Working out a schedule in advance will go a long way to eliminating delays and reduce stress for both your team and the consultant.

Have a plan for communicating progress. To facilitate a smooth process, determine who will be included on the project and how you'll communicate with your group — email, phone calls, a project management system, Zoom, Skype, etc. — and how you'll exchange documents and comments on the documents (whether PDFs, Google docs, or Word documents). It's also a good idea to schedule a weekly standing call for quick status updates. This can help reduce the kinds of meeting scheduling problems that often delay the completion of a project.

Avoid stumbling blocks that raise costs. Delaying feedback or reversing decisions can stall or even sink a project. And rethinking or revising decisions that have already been made can lead to additional costs and even undermine a project's viability. This often happens when the plan calls for the executive director to make the decisions but, come time for final approval, board members jump in and start to second guess or reverse decisions made earlier in the process. To avoid those kinds of costly delays, provide the board or a committee with regular updates and lots of opportunities to provide feedback. Any serious concerns should be discussed with the consultant and team so a satisfactory resolution can be reached to avoid costly backtracking later.

The consultant is your partner. Defining how that partnership will work can make it — and your project —more successful.

Howard_Adam_Levy_Red_Rooster_Group_PhilanTopicHoward Adam Levy is the president of Red Rooster Group, a brand strategy firm that works with nonprofits, governments, and foundations.

(Photo credit: Red Rooster Group)

A good RFP attracts better partners for your project

June 05, 2020

Handshake_over_table_PhilanTopicjpgWhen thinking about what your organization should do to adjust to the "new normal," you may need a partner who can help you reimagine your mission and vision and develop a strategy. The partner may be a branding agency, a fundraising consultant, or someone who can assist you in revising your strategic plan. If the services you offer or the way you provide them has changed, it may be even more important to hire an objective outsider who can help you understand and shape your organization's future.

When hiring a consultant, your chances of finding the right partner will be greatly improved if you develop a clear Request for Proposal (RFP). If you don't know exactly what it is you want from a consultant, when you want it, and how much you are willing to pay, take a step back. You need to nail that down and develop a realistic timeline and budget. And that process itself may require some outside help.

Not only will a good RFP attract the right partner, it will also help your team come together around the details of the project.

To that end, every RFP should include:

1. An overview of your organization: Explain your mission, services, history, and structure so that interested consultants understand what you do and can determine whether their agency is a good match. You want to attract an agency that understands your issues and is enthusiastic about your cause, so provide them with accurate information. This doesn't have to become a writing project; use material from your website, brochures, grant proposals, and strategic plan. A few paragraphs should suffice.

2. Need and goals: The RFP should answer the following questions: What do you need and what are you hoping to accomplish with the project? How will your organization be improved as a result?

3. Outcomes: If possible, describe the specific outcomes you hope to achieve and the specific metrics you will use to measure the success of the initiative.

4. Reasons for the RFP: Explain what's specifically precipitating the need for the project at this time and any other relevant information that can provide context. Was the project planned before the pandemic or in response to it? What are the other urgent factors at play? The need to raise more funds? Changes in programs? New leadership and a new direction? A potential merger? The more the consultant knows, the better they will be able to address your specific needs.

5. Description of the project: Provide a full description of the project, including your overall objectives and the specific deliverables you are requesting. If there's a particular process that you want followed, indicate that. The more information you can provide, the better.

6. Audiences: Describe all the different audiences you want to reach with the project and any information you have about those audiences. This will help the consultant tailor their proposal appropriately.

7. Current and past efforts and results: Describe any previous projects you've undertaken that had similar goals or were targeted to similar audiences. Describe what worked and what didn't. If your project is a fundraising campaign, describe past appeals and their success. It's important to establish a baseline for what your organization has already accomplished.

8. Materials and data you already have: If you have donor or membership databases that can yield insights about your audiences, include that fact in your RFP. If you've sent out surveys recently or gathered data for a strategic plan,let the bidders know. If you have a brand manual or other materials that might be used in the project, specify that. Information you already have may reduce the scope of work and, therefore, the cost.

9. Relevance of project: Describe how the project relates to other initiatives or affects other areas of the organization. For example, you might explain how you hope an organizational branding project will be used as a model for chapters or programs, or how a strategic plan will guide the development of new revenue streams. Providing the larger context so that the consultant can help you achieve the outcomes you want.

10. Parties and process: Describe who will be involved in the project and what your work, review, and approval processes are. Indicate whether a subcommittee will be formed to handle the project, who the day-to-day contact is, what role the board will play, and who has or gives final approval.This can help the consultant to understand the flow and meetings and map out a plan that accommodates your needs.

11. Expectations for working together: Different consultants have different styles. Be clear about your expectations so that you find one likely to work well with your staff and who will fit in with your organization's culture. Explain what it is you are looking for in terms of work process, deliverables and results, methods of communication, and any other aspect of the collaboration that is important to you.

11. Creative expectations: Understanding your expectations for a creative outcome can be difficult, so try to provide asmuch information as possible about it as you can. Mention any guidelines that would be relevant for the project (e.g., a brand style guide). For a branding and marketing project, it's also very helpful to provide samples of materials and websites that your team likes. These can give potential partners a better idea of the outcomes you're expecting. If you have specific requirements or requests regarding outcomes, include them in the RFP.

12. Timing: Be realistic about how much time the process will take and the amount of work required. The more research needed upfront, the longer the project will take. You also need to allow time for input and approval from all parties, as well as time for the consultant to do his or her work. Recognize,too, that a "rush" project will affect the process and the fee.

13. Budget: It is essential to let bidders know your budget for the project. Determine your budget based on the value the project will bring to your organization and then find an agency that can deliver what you need within budget. If you ask for bids without specifying a budget, you may get Cadillac bids fora Chevy budget, which wastes both your time and the consultant's. Conversely, if your rebranding requirements and budget are Cadillacs, don't waste your time looking at Chevys.

If you are at a loss about how much a project might cost, spend some time talking with outside firms to get a general idea of possible cost.And ask other nonprofits what they spent on similar projects and what they received in return.

14. Evaluation criteria: Explain the criteria you'll use to evaluate and select a consultant for the project. It takes a lot of time to develop a good proposal, so be fair to the consultants you've engaged. Spell out your top three selection criteria and be specific. Is experience in the nonprofit sector important? Do you want a partner with specific skills?

15. Evaluation process and timing: On the first page of the RFP, give the due date for the proposal and the name, email, and phone number of the contact person to whom the proposal should be sent. Indicate who will make your decisions for each step. For example:

  • Proposals due June 1, as a PDF, emailed to [name, title, and email address].
  • Review of proposals by Executive Director and Development Director.
  • Selection of three firms by June 15.
  • Meetings of Committee with firms from June 15–25.
  • Final selection on June 30.

Stick to your schedule. If you can't, let the competing agencies know — they're expecting to hear from you and may be turning down other projects in anticipation of working with your organization.

The RFP is just the beginning

Don't put walls between yourself and those who interested in responding to the RFP. The best firms will want to speak with you before submitting a proposal, so let them. In fact, be wary of firms that don't call or ask questions. If requested, provide access to your leadership as well. These pre-proposal discussions can result in proposals tailored to your needs and are an opportunity for you to get to know the competing firms before you make a commitment to one.

Be sure to let bidders know who else you sent the RFP to so they can decide whether they want to participate and, if they do, can use that information to help highlight what sets them apart from the others.

Some nonprofits ask for all questions to be submitted in writing and then send out the answers to everyone's questions to all bidders under the assumption that it is fair and serves their interests in getting the strongest proposals. In fact, it does the opposite. By giving away one firm's questions, you are essentially eliminating what makes them special — handicapping them. For example, if you put out an RFP for an ad campaign and an agency asks if you are open to using public relations or social media to accomplish your goals, and you let all the bidders know you are, then they will all scramble to add that to their proposal by partnering with other agencies with those skills. You, on the other hand, will have no idea that the agency that asked that question is the only one that is thinking creatively about how to solve your marketing needs.

Follow-up

Finally, be professional. Communicate with the firms during the process so they know where they stand. Let all firms know when you have made your final selection. Some agencies spend a lot of time developing customized proposals, so give them the courtesy of letting them know a decision has been made. Also, let them know why they were not selected. It will help them do a better job next time.

Howard_Adam_Levy_Red_Rooster_Group_PhilanTopicHoward Adam Levy is president of the Red Rooster Group, a brand strategy firm that works with nonprofits, governments, and foundations.

The power of diverse boards: an argument for change

June 04, 2020

Diversity_board_PhilanTopic_GettyImagesWe have a lot of work to do. Most of us have known this for some time, but the events of the last few weeks highlight just how much work remains to be done. The fight for diversity, equity, and inclusion never ends, and a clear and ongoing commitment to all three is needed if we are to create positive change. That commitment must start at the top.

Boards of directors operate at the highest level of organizational leadership, with each director expected to play a role in the development of the organization's strategic vision, operations, and overall culture. Numerous studies have shown that diversity positively impacts a company's financial performance. Indeed, a McKinsey & Company study found that firms in the top quartile for ethnic diversity in management and board composition are 35 percent more likely to earn financial returns above their respective national industry median.

Is the same true for the social sector? Is it important for nonprofit boards to embrace and model diversity, equity, and inclusion? The answer, unequivocally, is yes, and here's why:

Diversity drives organizational performance

Diversity inspires innovation. A board that is diverse in terms of ethnicity, gender, and skill sets is more likely to generate innovation and push all its members to be more creative and open-minded. Today more than ever, social sector organizations need to develop multiple revenue streams, and leading-edge expertise in areas ranging from strategy to financial planning to operations is critical to a board's ability to conduct effective oversight.

Diversity catalyzes creativity. Diverse boards tend to be better at creative problem solving. Those who have had to adapt to physical disabilities encounter challenges on a daily, if not hourly, basis, while those subjected to systematic racism have had to adapt their entire lives. The ability to overcome challenges often translates to adaptive leadership, opening a world of possibilities in terms of program execution and organizational management.

Diversity fosters network breadth. Current or past clients who serve as board members add an element of authenticity and credibility to board deliberations and can serve as a "voice of experience" that informs and improves program planning. A greater awareness of who is actually being served gives boards information they need to develop strategies grounded in real-world facts. Such an understanding also provides context for proper resource allocation and effective strategic action, while helping to deepen an organization's relevance and impact.

Inclusion drives action

Let's try a thought experiment: take away all the benefits created by more diverse boards and imagine what the sector would look like :

  • too many nonprofits relying on a single, precarious revenue stream;
  • approaches to problem solving that are never improved on because "it has always been done that way";
  • clients who are viewed as beneficiaries rather than as equal partners in collective change efforts;
  • recruitment of staff and donors from among those who look and think like us; and
  • logic models and outcomes metrics informed by a single point of view.

Something magical and important happens when differences not only are not dismissed but are valued. But the benefits that diversity brings to a board are unlikely to be realized without an equal focus on inclusion. The perspective of all board members must be continuously sought and heard, and differences of opinion should always be welcomed.

Equity is the result

Equity and systems change are the outcomes of leaders fully embracing diversity and inclusion. In the absence of inclusion, it is too easy to become comfortable in our silence. Without diversity of thought and perspective, our value systems are compromised and systemic injustice goes unchallenged.

It is clear that board diversity, equity, and inclusion matter for all organizations, and especially so for nonprofits. To truly maximize a nonprofit's effectiveness, as well as its financial success, nonprofit boards must work diligently to ensure that different viewpoints are heard and incorporated. Change doesn't happen automatically or overnight. Boards must actively seek out those who can bring new perspectives to the table and challenge the status quo.

For those who currently serve on a nonprofit board, now is the time to act. Speak to your colleagues about steps the board can take to develop internal policies aimed at strengthening its diversity and begin to build a foundation for organizational leadership that supports change.

Similarly, if you've ever considered lending your time and talent to a nonprofit, now is the time to connect with one that is aligned with your passion and expertise. In these challenging, uncertain times, nonprofits are looking for all the expertise they can get their hands on.

The success of any organization starts at the top. Boards that want to maximize their effectiveness and performance must include socially and professionally diverse individuals who are committed to doing the work and are prepared to speak up and act for change. Good luck!

Pam Cannell_for_PhilanTopicPam Cannell is CEO of BoardBuild and has dedicated her entire career to nonprofit leadership and board governance.

Overcoming Founder’s Syndrome on the Road to Success

May 08, 2020

BatonPicture this: An organization's founder has been in place for decades. They are well-respected for their years of hard work and are credited with driving the organization’s long-term success. They've been in the position for so long, in fact, that people outside the organization can't imagine it existing without them. So when they announce their imminent retirement, the board and staff are paralyzed by the notion of bringing in someone new.

The mere thought of a major leadership transition can be frightening, and unless a successor is obvious, beginning the process of finding a replacement for a long-tenured executive can feel overwhelming. Indeed, in many cases, the initial reaction is to look for the same type of leader as the person who is leaving.

As millions of boomers near retirement age, this scenario is playing out in organizations nationwide. According to TSNE MissionWorks, 68 percent of executive directors and 66 percent of board chairs are over the age 50 and, in many cases, are beginning to think about retirement. In other words, thousands, if not tens of thousands, of nonprofits are facing the prospect of losing their long-serving founders, CEOs, presidents, and executive directors.

When an organization is faced with replacing a long-time leader who has been in place for so long that board and staff cannot remember his or her predecessor, identifying a new leader can seem like a hopeless task. That task is even more complicated when the founding ED or long-serving executive is having a difficult time imagining the organization carrying on successfully without her. Often, this confluence of circumstances results in the phenomenon known as "founder's syndrome," a situation in which an organization’s funding, capacity, and overall well-being seem to be largely dependent on her efforts, causing stakeholders to be uneasy about the prospect of her leaving or, in the worst-case situation, a founder resistant to turning over the reins to a successor. In many such cases, people cannot imagine how the organization will find its next leader because their image of the current leader is fixed.

For these and other reasons, a successful search for a new leader hinges on board members first recognizing that founder's syndrome is a factor in the planned transition. Indeed, if the transition to a new leader is planned carefully and strategically, it's possible to reframe founder's syndrome as an opportunity for the board to honor the founding leader's legacy while simultaneously positioning the next leader for success.

To ensure that the transition to a new leader is successful, the organization’s board and leadership team should pay attention to the following:

Be clear about your expectations. What are your goals and priorities for the next leader? Do you expect her to boost fundraising, help the organization close a deficit, create a better operational model, increase the diversity of staff, strengthen the endowment? What parts of your organization's identity do you want to retain and which parts need to evolve? What are your leadership needs and what should leadership for the organization over the next five to ten years look like?

Avoid 'Founder 2.0'. When an organization's mission is so tied to a founder’s vision, it can be difficult to imagine someone different in that role. In many cases, board and executive team members who have worked closely with the founder often want to replace him or her with exactly same type of leader. The fact is, however, that organizations need different kinds of leaders at different moments in their evolution. The leadership qualities that may have been critical at the earlier stages of an organization's development may not be as necessary or even appropriate a decade or more down the road. Just as children outgrow their favorite clothes and toys and seek new and different stimuli as they mature, organizations also evolve in terms of what they need from a leader. A "start-up" situation encourages people to wear multiple hats and be entrepreneurial. At a later point in an organization’s evolution, more formal systems and roles often are required in order to make sure everyone is on the same page and pulling in the same direction. Organizations naturally tend to move from a "crawling and toddling" stage, to an "awkward adolescence," to a more mature stage of growth and development. Organizations therefore ought to assess the stage they’re currently in, their future goals and where they hope to be in five or ten years, and the kind of leader that is most likely to get them there. Remember: Change is your friend and can be a valuable driver in ensuring that an organization continues to be successful.

Fix up the house. Longtime homeowners are familiar with the joys of deferred maintenance. If you've owned a house for a while, you're probably surrounded by things that are broken or not working as well as they used to, but you've put up with them because you're too busy — or it’s too expensive — to fix them. But small inconveniences and annoyances add up over time, and at a certain point you realize that things have slipped a bit too much and it's time to address those longstanding issues. The same holds true for a long-time leader. When a leader has been in place for a long time, he has likely settled into certain routines and grown comfortable with systems and processes that generally work well but could use some updating. If the founder is a naturally creative type, for instance, he may have overlooked some of the finer details of revenue recognition and financial planning. Or he might be wonderful at engaging external stakeholders but less adept at hiring and managing a senior management team. In such cases, a transition to a new leader should be viewed as an opportunity to repair what may be broken.

Embrace a fresh vision. Even when the board and staff are pleased with the job the founder-leader has done, there almost always are things that can be built off his or her legacy. It's important to recognize that longtime leaders and the organizations they lead can become less adaptable to change — and more susceptible to inertia — over time, which in turn can prevent them from evolving and realizing their full potential. Transitioning to someone who brings fresh ideas, energy, and perspective to the work can help an organization and the people who make it go see themselves in a new way.

Talk to the team. In any leadership transition, it's important to have honest conversations with the board, senior management, and staff at all levels about what's working and what needs to be fixed. With a new leader at the helm, what might the organization look like in five years? And what can the board, senior management, and staff do to ensure that the new leader, and the organization, succeeds?

Encourage a graceful exit. As a general rule, founders shouldn't have an active role in the organization (or on its board) immediately after they've stepped down. More often than not, the continued involvement of a founder creates awkwardness and makes it difficult for a successor to operate. In addition, most qualified candidates for the job will not to want hear that, should they get the job, they'll be managing a founder-leader -- a prospect that can deter even the most determined applicant. Last but not least, it can be confusing and unsettling for staff to have a founder hanging around as a new leader is trying to establish herself. Whom should they go to turn to for direction and advice — the person who has led the organization for years or the new person? At best, it can create a divided sense of loyalty among staff, while at worst…

Expect things to get emotional. Understand that the board and staff may have harbored tremendous affection for the person who is leaving and could have a visceral reaction to his or her departure. It's human nature to want stability and resist change, and any transition involving a beloved and long-serving leader can be difficult to process emotionally. In addition, many employees, fearing the unknown, will feel anxious that the new leader will want to build a new team and/or make significant changes.

Use an outside consultant. Unless an organization already has a successor in mind, the board and staff may not know how to manage a transition from a founder or long-serving leader to someone new — or even where to begin the search process for a successor. An outside recruiter from an executive search firm can be an invaluable addition to the search team and bring a fresh (and objective) perspective to the table. As part of her job, the consultant will conduct due diligence, talking to the board, key staff members, and other stakeholders and constituents to determine what type of leadership is needed and appropriate in terms of the organization's next chapter. In some instances, having an interim leader in place while a search is under way can give the search team time and distance to orient itself to the needs and requirements of the future.

Honor the founder's legacy. It's important that the organization, led by the board, acknowledges and celebrates the founder's legacy and accomplishments in a meaningful, memorable way. Allowing time and space for her to take a final "victory lap," a series of events over the course of several months or even up to a year, will put a well-deserved spotlight on the departing leader and help her ease into a new role as an eminence grise rather than the top executive.

When a founder steps down, you shouldn’t worry about how his or her shoes will be filled. Instead, focus your efforts on identifying and recruiting a talented new leader to replace the departing founder and then do everything you can to help him or her lead the organization forward to an even brighter and more successful future.

Headshot_Naree Viner_KoyaNaree W.S. Viner, managing director at Koya Leadership Partners, has deep experience in executive recruiting and has partnered closely with board members at public and private organizations to identify, develop, and recruit executive talent, including chief executives and senior team members.

Tips to Help Make Your Organization More Inclusive

February 07, 2020

Diversity_1Recruiting and retaining employees is a top priority and challenge for most organizations. But many fail to take even the basic steps needed to attract and retain candidates with diverse backgrounds and experiences. This is unfortunate, for many reasons, but especially because the benefits of diversity in the workplace are significant and numerous, and because research shows that the workforce of the future will be diverse.

Creating an inclusive organizational culture requires commitment. The goal should be to ensure that everyone in an organization feels welcome, valued, and supported. This is how you strengthen employee engagement and retention, and how you create a stage for teams that perform at a high level. On the flip side, organizational cultures that are not inclusive are more likely to experience negative outcomes in terms of employee satisfaction and retention, resulting in higher turnover rates and lower organizational performance.

Below are a few things you and your colleagues can do to create a more inclusive organizational culture. Note, however, that the suggestions are only a starting point. Building a truly inclusive culture requires deep commitment to change at every level of the organization as well as a willingness to model and sustain that change through shared values, the actions of leadership, and effective accountability mechanisms.

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The Best-Kept Secret: A Strategic ‘Pivot’

December 10, 2019

Greater-Denver-Jewish-Community-Study-2018-300x300There are countless examples of strategic "pivots" to point to in the for-profit world, many of them from the not-too-distant past. Remember when Amazon just sold books, when Netflix mailed DVDs, or when the Gap was a record store that sold Levi's? It's rare, on the other hand, to hear about nonprofits making the same kind of massive changes in strategy. Of course, taking a risk in Silicon Valley (where companies are expected to produce financial returns for their investors) is different than risk-taking in the nonprofit world, where organizations are responsible for having an impact on a social or environmental problem.

But pivoting — a shift in strategy that helps an organization achieve its desired impact — is crucial for nonprofits that want to succeed over the long-term. "Pivot" doesn’t have to be a bad word or signal failure. Think of it, instead, as a natural part of organizational evolution.

Pivots can be large or small, but they should emerge from a clear understanding of what is working and what is not. Using data (e.g., performance metrics, evaluations, and direct observation) to decide whether or not it's time to pivot will ensure that you pivot in the right direction. This kind of intentionality, coupled with the ability to admit what isn't working, makes a strategic pivot different than just throwing spaghetti against the wall and seeing what sticks.

Organizations that don't pivot eventually end up stuck doing the same old thing, even when evidence points them in another direction. In such a scenario, funders often start to wonder about their investment in a "stuck" organization and whether it's truly creating the impact they would like to see. To help nonprofits that are struggling with the pivot issue, as well as funders who may be sitting on the other side of the table, I wanted to share a story about a pivot made by my organization, UpStart, what we learned from it, and how you can benefit from the same kind of thinking and tactics.

UpStart's flagship initiative in Colorado was our Teen Fellowship program, which each year engaged twenty-four fellows in the fundamentals of social entrepreneurship through a Jewish lens. This program was a part of the larger Denver-Boulder Jewish Teen Initiative to increase engagement of diverse local Jewish teens. In the fellowship, teens worked in small teams to solve a particular problem in their respective communities, developing new initiatives and learning key skills that would help them navigate the world. The program was rated favorably by the teens who participated, but from an outcomes perspective it was becoming increasingly clear it was off-strategy.

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What It Takes to Manage Leadership Change in the Nonprofit Sector

December 05, 2019

ChangesEvery organization experiences leadership change. But these days, the nonprofit sector is experiencing a big demographic shift. Which is why it's essential for all nonprofits to start planning for the kind of thoughtful leadership transitions —including those resulting from both expected and sudden departures — any organization needs to survive and thrive.

According to the 2017 BoardSource report Leading With Intent, only 27 percent of nonprofits have a formal succession plan in place. That's unfortunate, because having such a plan in place can help any organization overcome the challenges and bumps in the road that almost always pop up in the wake of a leadership transition.

In the past, the process was commonly referred to "succession planning." However, that term often refers to identifying a successor for a specific leader and, in our view, has outgrown its usefulness. It's more helpful, instead, to think about the work of preparing for and managing leadership change as "intentional pathway planning," a more expansive term that serves as a reminder that leadership change involves much more than thinking about a single role or person; it's a holistic approach and lens that should be applied to every step of the hiring and onboarding process.

While every organization’s circumstances are different (involving things like leadership configuration, organizational goals, skills gaps, etc.), all nonprofits would be well-served to take a proactive approach to building a strong leadership pipeline, developing internal talent for higher-level roles, and making themselves aware of specific knowledge and/or diversity gaps that need to be addressed.

Tips for successful intentional pathway planning include:

Consider the big picture. A critical first step in intentional pathway planning is to understand your organization's leadership needs and mission-focused objectives. What are you trying to do? What type of talent will you need to get there? What are your organization’s knowledge gaps, and how can they be filled?

Plan and train. To ensure there's a robust pipeline of talent available to take advantage of future leadership opportunities, you need to proactively take steps to support talent. Provide employees with ample training and development opportunities — as well as continual mentoring and coaching — to help them learn, grow, and thrive. Check in with individual employees about their goals and aspirations, and then tailor development plans for them as appropriate. To ensure you have a deep bench of future leaders, allow staff at various levels to flex their leadership skills — and assume additional responsibilities. Such an approach is just as beneficial for the organization as it is for individuals on the receiving end of these training opportunities and can be pitched to job candidates as an organizational value proposition.

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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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Candid’s Regional Teams: An Update

October 22, 2019

This year has been a busy one for Candid. In February, Candid was formed as the result of a combination of Foundation Center and GuideStar. One of our most important initiatives of the year has been the transition from four Candid regional library centers to our 400+ Funding Information Network (FIN) partner locations.

Candid’s staff in the Bay Area is now all under one roof, after Foundation Center staff moved in to the existing GuideStar office in Oakland. In Atlanta, Candid’s team has partnered with CARE by moving into that organization’s Global Innovation Hub along with several other social entrepreneurs, technologists, and internationally-oriented nonprofit organizations.

Candid_training_PND

In the next two months, Candid’s Washington, D.C., team will share space in our existing office on H Street, while staff in the Cleveland area will move into Midtown TechHive, a co-working space located along Cleveland’s Health-Tech corridor.

Why is Candid transitioning its library services?

In July, I wrote about what this initiative means for the communities we serve. Our transition away from providing direct in-person library services at our four regional offices will free up our teams to engage directly with audiences beyond our four walls.

Taking our D.C. metro area location as an example: currently three of our FIN partners are located within a ten-mile radius of our current location, and all three are Metro accessible. Our D.C. team plans to offer three to five classes per month locally, at various locations, and also plans on holding monthly training events at the University of the District of Columbia. Our largest office and library in New York City will continue to operate in its current form, providing library services and trainings on-site while also delivering programs across the region.

We'll also begin experimenting with local programming close to Williamsburg, Virginia, where a large contingent of Candid team members are based. Check the local calendar on grantspace.org for upcoming community events and to use our map tool to find partners near you.

Programming highlights from our regional teams

Our regional teams have been busy planning local events and partnering with organizations on the ground to deliver relevant, meaningful programs. Here are some of the highlights:

  • Candid is currently a lead partner in “The Soul of Philanthropy” exhibition in Cleveland. The three-month traveling exhibit officially opened on Friday, September 6, with over three hundred and fifty philanthropists, foundation executives, civic and business leaders, and community members in attendance. It was a magnificent celebration dedicated to uplifting and amplifying the power of black philanthropy. This is just one of several media stories about the exhibit, and you can learn more in this blog post.
  • A one-day Training Works conference was hosted in Atlanta by Candid staff on September 20, with nearly forty attendees on-site at the CARE Global Innovation Hub.
  • Network Days, Candid’s annual convening for Funding Information Network members, was held in New York City on October 10 and 11. More than sixty partners traveled to the city to attend in person, while another hundred and sixty tuned in virtually for sessions covering such topics as Candid’s Nonprofit Start Up Assessment Tool, best practices to help nonprofits secure funding through donor-advised funds, and why it’s critical for nonprofits to earn a Seal of Transparency from GuideStar.org. We also hosted an intensive train-the-trainer event earlier in the week, guiding partners and staff through a deep capacity-building experience designed to equip them to deliver high-quality programming through a culturally responsive and human-centered lens. It was an enlightening and energizing week that showcased just how central the Funding Information Network is to Candid’s mission and to hundreds of local communities.
  • Candid staff presented a program at the end of August that explored  a California legislative proposal to regulate donor-advised funds. Ninety-four people participated in person in San Francisco, while another ninety-one tuned in to the livestream.
  • Candid also hosted its second annual program with the authors of Unicorns Unite — Vu Le, Jane Leu, and Jessamyn Shams-Lau — on September 18. The program included an in-person and livestreamed panel discussion, followed by a facilitated in-person exercise with the authors in San Francisco, plus eighteen watch parties across North America.
  • Due to popular demand, we increased our monthly course offerings of Introduction to FDO to twice a month at the San Francisco Public Library, one of our Bay Area FIN partners.
  • Working with the New York City Department of Education, Candid will present Introduction to Fundraising Planning to approximately one hundred public school art teachers at our New York library location. The sessions also will introduce teachers to Candid's library resources and provide them with hands-on experience searching Foundation Directory Online for public education and arts grants.

Whom can I contact if I have more questions?

Please don’t hesitate to reach out to any of our team members with questions or ideas:

Western region: Michele Ragland Dilworth
Northeastern region: Kim Buckner Patton
Southern region: Maria Azuri
Midwestern region: Teleangé Thomas

We are thrilled by the opportunity this new operating model presents and are looking forward to meeting with more of you across the United States. As always, you can connect with me directly to talk about how we can serve you better.

Zohra Zori is vice president of social sector outreach at Candid.

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Learn more about what Candid can offer you today
Learn more about GrantSpace’s live and on-demand trainings
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To Build More Diverse Teams, Avoid Unconscious Bias When Recruiting and Hiring

October 21, 2019

Diversity-inclusion-292x300The benefits of diversity and inclusion for nonprofit organizations are well-documented and include greater success in almost every possible metric. Often, however, nonprofit leaders and managers tend to ignore a key barrier to more meaningful workplace diversity: unconscious bias.

Research shows that bias — prejudice in favor of or against a thing, person, or group — is part and parcel of human nature. It influences all kinds of decisions, and most of us are unaware when it's a factor in those decisions. Unconscious bias is the term used to refer to judgments and decisions that are deeply affected by our unconscious mind — decisions that can play a significant role in recruiting and hiring.

Indeed, even as a growing number of nonprofit organizations say they are working to increase the diversity of their staffs, unconscious bias may be negatively impacting nonprofit workplaces by undermining efforts to recruit and retain diverse employee, contributing to poor hiring decisions and salary inequities, and denying equal opportunities in the workplace for women and people of color.

That's why it is important for your organization to recognize and mitigate unconscious bias in its recruiting and hiring processes.

Ready to get started? Here are a few tips:

Educate your team. Provide your HR team with articles, case studies, and trainings related to unconscious bias. Be sure your team knows what it is, how to recognize it, and how to avoid it.

Develop consistent, structured hiring processes. Before your organization launches its next job search, develop a list of core competencies for the job, including skills and experience, and then evaluate every candidate for the job against that list. Be sure, as well, to ask each candidate for the job the same questions to ensure that your evaluations of various candidates are impartial. To ensure that all prospects for a job are assessed against the same criteria, it’s also a good idea to have the same person interview all candidates for a job.

Consider using "blind" techniques. Blinded, or redacted, candidate materials can be effective in reducing bias in that they eliminate the possibility of making snap judgments based on details (e.g., name, address, alma mater) that may have nothing to do with whether a candidate is a good fit for a position. When such details are masked in resumes and CVs, interviewers are more likely to make decisions based on core competencies (see above) rather than personal factors. Similarly, when asking candidates to submit samples of their work, be sure to remove identifying characteristics from the documents to ensure that prospects are assessed and evaluated against a consistent set of criteria.

Expand your network. Employee referrals are often a useful tool in identifying qualified candidates. But because employees tend to refer people who are like themselves in terms of race, education, and background, such referrals can work against an organization's diversity goals. To expand your candidate pipeline — and build a more diverse workforce — task your HR team to go beyond the "usual" referral sources and proactively reach out to a range of organizations and sources.

Elevate your job descriptions. Job descriptions often end up being aligned with certain biases (unconscious or otherwise). Certain requirements (e.g., an advanced degree) will limit the candidate pool to a homogenous group of people with the same kind of experience and will make it almost impossible for you to consider a diverse range of candidates. Pay attention to the language you use in your descriptions: certain words can intimidate or be off-putting to some prospects and may discourage them from applying. You might want to consider eliminating, for example, gender-specific pronouns from your job descriptions. This can help eliminate gender bias in your recruiting processes and signal that your organization is committed to diversity and inclusion in a real and serious way.

Recognize and avoid the "halo and horn effect." This occurs when someone associates certain factors (e.g., working for a prestigious company) with particular traits (the candidate must be smart and capable). If someone on your hiring team "prefers" a candidate because s/he worked for a specific company, went to a particular school, or roots for the same sports team, it can create a "halo effect" around that candidate that puts him/her in an advantageous position with respect to other candidates. Conversely, a single negative association can create a "horn effect" resulting in a negative perception of that candidate. It's important your team looks beyond a single trait or factor and takes a more holistic view when considering candidate qualifications, factoring in a variety of data to determine which candidate is right for the job.

Be aware of affirmation bias. We tend to seek out commonalities when meeting someone new — did we attend the same school? do we live in the same neighborhood? During the recruiting and hiring process, we're more inclined to favor candidates who are "like us" and share our interests and/or beliefs. Conversely, we may not feel as strong a connection to someone who has a different background and may view them less favorably as a job candidate. If you want to increase the diversity of your staff, move away from considering only "people like us" and try to build teams comprised of people with different experiences, perspectives, and backgrounds.

Ideally, the decision to hire a candidate should be based solely on whether you think s/he will excel in the job. Unfortunately, unconscious bias often gets in the way of our conscious desire to make purely competency-based hiring decisions. The best way to combat this tendency is to recognize it and put in place hiring practices designed to promote equity, consistency, and fairness at every step of the process.

Headshot_molly_brennanMolly Brennan is founding partner at executive search firm Koya Leadership Partners, which is guided by the belief that the right person at the right place can change the world. Molly is a frequent contributor to the Stanford Social Innovation Review, Philanthropy News Digest, and other publications and recently authored The Governance Gap: Examining Diversity and Equity on Nonprofit Boards of Directors.

After the Hire, Then What?

October 04, 2019

Welcome-600x450You've gone through the time-consuming process of hiring a new employee, and you've hired the best candidate out there. Now you can relax, right? Not so fast. The work of onboarding has just begun.

Your new hire may have all the qualities and qualifications needed to make her a star in your organization, but the road to success isn't always that smooth. In fact, the line between fantastic and fiasco can be a thin one, and a lot of it comes down to how you handle the onboarding process.

Skeptical? Consider that more than half of all U.S. employees leave their job in the first year, citing internal factors like lack of training or mentoring as their reason for bailing. Contrast that with the 69 percent of employees who say they are likely to stay with a company for at least three years if they've had a great onboarding experience.

So what does "a great onboarding experience" look like? To help you train and retain new hires, here's our quick-start guide to best practices for onboarding.

1. Understand that onboarding isn't an event, it's a process. Some organizations mistakenly think that onboarding is an event that happens on a new employee's first day. Newsflash: a meet-and-greet over muffins in the conference room and pointing out where the restroom is constitutes only a small part of the onboarding process, which should actually start the day you make an employee an offer and continue for the next 365 days. PRO-TIP: Have a pre-set agenda for check-ins with any new employee at 30, 60, 90 and 120 days. Use that time to make sure the employee is settling in without problem or incident, understands his or her role and responsibilities, and knows where to go to give feedback or have an important conversation related to his or her work situation. Don't have an onboarding checklist? Download one here.

2. Include the whole team. We've all been there before: you come in to work one day, and there's a stranger in the breakroom. Is it a repairman there to finally fix the copy machine? Is it your co-worker’s ex-boyfriend come to win her back? Later, you discover the "stranger" is actually a new employee no one bothered to tell you about, leaving you feeling left out of the loop (and him or her feeling unwelcome). How to avoid such sitiuations? Be sure to send an email to your staff before any new employee's start day letting them know about the new hire and a little bit about who she is and what she'll be doing. Next, arrange a coffee break (don’t forget the muffins) at which your new hire can be informally welcomed to the organization and introduced to everyone on the team. PRO-TIP: While the whole team should play some part in the onboarding process, you should definitely consider assigning one person (a “buddy”) from HR or the new hire's team to help train her and make themselves available for questions.

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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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Changing the Way Candid Serves You

July 23, 2019

ZBlog 2 Option 2Announcing Foundation Center and GuideStar had joined forces was just the beginning — now the real work of being Candid has started. We're busy combining operations on a number of fronts, and starting up new and exciting projects, too. I mentioned one of our most important initiatives in a previous post: the transition from our four regional library centers to our 400+ Funding Information Network (FIN) partner locations. We've received some thoughtful questions about what this evolution might mean for you.

What's happening to Candid's libraries?

We're not changing whom we serve, we're changing how we serve.

We've been around a long time, and over the years we've heard feedback from people who have struggled with our metro locations in terms of accessibility, hours, and parking fees and availability. Our current footprint of library locations in specific metro areas also locks our teams in to commitments behind the desk. Plus, now that we've become Candid, we have two offices in both the San Francisco Bay Area and Washington, D.C.

ZBlog 4 Option 1By the end of 2019, our Bay Area and Washington, D.C., offices will have been combined so that we have one office each in Oakland and D.C., while our Atlanta and Cleveland teams will be operating out of co-working or partner sites. We will no longer provide in-person library services at these locations, but you will still be able to get all of your questions answered through in-person trainings with our partner network and online services (more on this below).

Our largest office and library in New York will continue to operate in its full current form (still providing library services and trainings). We'll also begin experimenting with local programming close to Williamsburg, Virginia, where a large contingency of Candid team members are based.

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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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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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