Organizational Systems Checklist for Nonprofit Organizations

Originally provided by MAP for Nonprofits, St. Paul, MN, enhanced by Carter McNamara, MBA, PhD.

Applies to nonprofits unless otherwise noted.

(Also see Various Methods to Enhance Organizational Performance, listed at the end of this checklist.)

Related Library Topics

Description

The following comprehensive list of organizational systems and policies can be reviewed by governance and executive management to assess what systems and policies might need to be developed soon. Note that not all items are needed by all organizations. The suggested approach to using this checklist is:

1. Place a check mark next to each item below that has been completed and is useful in your organization. You may add items next to “Other items:” below.
2. From among those items that are not checked, mark each top priority item with a “1”, bottom priority items with a “3”, and consider remaining items to be “2”s.
3. Record all items marked with “1”s onto a separate list of items to be completed by your Board and/or staff soon.
4. Revisit this list each year to help identify top priority items to complete for that year.

BOARD OF DIRECTORS

____ Current mission / vision / values statements

____ Board member recruitment system

____ Board member orientation system

____ Board development and training strategies

____ Attendance policies

____ Membership and term limitation policies

____ Organizational chart

____ Chair and officer job descriptions

____ Committee charters

____ Board operations and policy manual

____ By-law review policies

____ Chief executive performance review process

____ Board self-evaluation process

____ Board calendar with meetings, events, activities and updates

____ (Other items:)

PLANNING

____ Current strategic plan

____ Diversity plan (for Board and staff)

____ Marketing plan

____ Fundraising / Development plan

____ Board and committee work plans (with objectives and timelines)

____ Yearly operations plan, including staff work plans

____ (Other items:)

PROGRAM AND OUTCOMES EVALUATION

____ Valid methods to assess client needs (focus groups, surveys, etc.)

____ Established service outcomes to match client needs

____ Established target indicators for each outcome

____ Data collection methods for each target indicator

____ (Other items:)

INFORMATION MANAGEMENT

____ Client program records

____ Volunteer records

____ Personnel records

____ Financial records

____ Donor and contributor contract records

____ Mailing lists

____ Work flow descriptions for each major operational activity

____ Operations manual containing work flow descriptions

____ Inventory of computer hardware, software, peripherals, etc.

____ Procedures for each major function to maintain computer systems

____ Regular backups of computer disks (one copy stored offsite)

____ Disaster recovery plan (one copy stored offsite)

____ (Other items:)

PERSONNEL

____ Board-adopted personnel policies

____ All personnel policies in a handbook to each staff member

____ Performance appraisal system

____ Professional development plans

____ Team development plans

____ Recruitment and orientation systems

____ Job descriptions

____ (Other items:)

VOLUNTEER MANAGEMENT

____ Recruitment system

____ Orientation system

____ Management and retention system

____ Recognition strategies

____ Record system

____ (Other items:)

FINANCES

____ Board-adopted fiscal policies

____ Board-approved fiscal year budget

____ Financial procedures / internal controls manual

____ Inventory system

____ Depreciation schedules

____ Cash flow analysis system

____ Partial or full accrual accounting system

____ Monthly financial statements with balance sheet

____ Yearly audit or outside review

____ Program analysis system

____ Tax and other reporting schedules

____ Payroll record system

____ (Other items:)

COMMUNICATIONS

____ Communications plan, including Web usage

____ Annual reports

____ Other regular communications strategies to stakeholders

____ Agency brochures / videos

____ Media relations strategies

____ (Other items:)

INSURANCE

____ Risk management policies

____ Office liability coverage

____ Volunteers covered in office liability

____ Workers compensation

____ Disability insurance

____ Assessment of need for professional liability coverage

____ Assessment of need for director and officer liability

____ Assessment of need for dishonesty bonding

____ Contingency plans for replacing key personnel

____ (Other items:)

LEGAL

____ Complete corporate records and retention policies

____ Updated By-laws

____ Incorporation and tax status documents

____ Currently reviewed personnel policies

____ Anti-discrimination practices

____ Flexible benefit plan updates

____ Membership rosters conforming to MN statutes

____ (Other items:)

FACILITIES

____ Fire and other emergency procedures

____ Accessibility for differently abled

____ Sufficient, safe and secure space

____ Appropriate signage

____ (Other items:)

Various Methods to Enhance Organizational Performance

The following can be organizational improvement programs, depending on how they’re used. These are included in a section referenced by the topic Broad Overview of Various Programs and Movements.

• Balanced Scorecard
• Business Process Re-Engineering
• Cultural Change
• Quality Management
• Knowledge Management
• Management by Objectives
• Organizational Learning
• Outcomes-Based Evaluation
• Project Management
• Program Evaluation
• Strategic Planning
• Total Quality Management

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For the Category of Management:

To round out your knowledge of this Library topic, you may want to review some related topics, available from the link below. Each of the related topics includes free, online resources.

Also, scan the Recommended Books listed below. They have been selected for their relevance and highly practical nature.

• Related Library Topics
• Recommended Books

Checklist for a Planning Assessment for Nonprofit Organizations

Edited by Carter McNamara, MBA, PhD

(Be sure to read How to Use this Tool and Disclaimers before using information in this document.)

This document suggests indicators regarding the total organization, organization’s programs and general
approach to evaluation.

Also consider
Related Library Topics

Planning Regarding the Total Organization

Rating *	Indicator	Met	Needs Work	N/A
E	1. The organization’s purpose and activities meet community needs.
R	2. The organization frequently evaluates, by soliciting community input, whether its mission and activities provide benefit to the community.
R	3. The organization has a value statement that is reflected in the agency’s activities and is communicated by its constituents.
A	4. The value statement includes standards of ethical behavior and respect for other’s interests.
E	5. The organization has a clear, meaningful written mission statement which reflects its purpose, values and people served.
R	6. The board and staff periodically review the mission statement and modify it to reflect changes in the environment.
E	7. The board and staff developed and adopted a written strategic plan to achieve its mission.
A	8. Board, staff, service recipients, volunteers, key constituents and general members of the community participate in the planning process.
E	9. The plan was developed by researching the internal and external environment.
R	10. The plan identifies the changing community needs including the agency’s strengths, weaknesses, opportunities and threats.
R	11. The planning process identifies the critical issues facing the organization.
R	12. The plan sets goals and measurable objectives that address these critical issues.
E	13. The plan integrates all the organization’s activities around a focused mission.
R	14. The plan prioritizes the agency goals and develops timelines for their accomplishments.
A	15. The plan establishes an evaluation process and performance indicators to measure the progress toward the achievement of goals and objectives.
R	16. Through work plans, human and financial resources are allocated to insure the accomplishment of the goals in a timely fashion.
A	17. The plan is communicated to all stakeholders of the agency — service recipients, board, staff, volunteers and the general community.
Indicators ratings: E=essential; R=recommended; A=additional to strengthen organizational activities

Planning Regarding the Organization’s Programs

Rating *	Indicator	Met	Needs Work	N/A
E	1. Programs are congruent with the agency’s mission and strategic plan.
A	2. The organization actively informs the public about its programs and services.
A	3. Clients and potential clients have the opportunity to participate in program development.
R	4. Sufficient resources are allocated to ensure each program can achieve the established goals and objectives.
R	5. Staff has sufficient training and skill level to produce the program.
A	6. Programs within the organization are integrated to provide more complete services to clients.
R	7. Each program has performance indicators to insure that the program meets its goals and objectives.
R	8. Performance indicators are reviewed annually.
A	9. The agency networks and/or collaborates with other organizations to produce the most comprehensive and effective services to clients.
Indicators ratings: E=essential; R=recommended; A=additional to strengthen organizational activities

Planning Regarding the Organization’s
Evaluations

Rating *	Indicator	Met	Needs Work	N/A
R	1. Every year, the organization evaluates its activities to determine progress toward goal accomplishment.
A	2. Stakeholders are involved in the evaluation process.
R	3. The evaluation includes a review of organizational programs and systems to insure that they comply with the organization’s mission, values and goals.
R	4. The results of the evaluation are reflected in the revised plan.
A	5. Periodically, the organization conducts a comprehensive evaluation of its programs. This evaluation measures program outcomes.
Indicators ratings: E=essential; R=recommended; A=additional to strengthen organizational activities

This information may be copied. Please cite credit to the Greater Twin Cities United Way.

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For the Category of Organizational Development:

To round out your knowledge of this Library topic, you may want to review some related topics, available from the link below. Each of the related topics includes free, online resources.

Also, scan the Recommended Books listed below. They have been selected for their relevance and highly practical nature.

• Related Library Topics
• Recommended Books

Checklist for an Assessment of Legal Activities
in U.S. Nonprofit Organizations

Edited by Carter McNamara, MBA, PhD

(Be sure to read How to Use this Tool and Disclaimers before using information in this document.)

Also consider
Related Library Topics

Rating *	Indicator	Met	Needs Work	N/A
E	1. All relevant filings to the Secretary of State are current. These filings might include: Annual Registration, Articles of Incorporation with all amendments, Change of Corporate Name, Change of Corporate Address. (The particular state office that processes these filings depends on which state you live in.)
E	2. The organization is registered with and has filed its annual report with the Attorney General’s Office. (The particular state office that processes these filings depends on which state you live in.)
E	3. The organization has filed the IRS form 1023 (application for 501(c) status, if applicable) and has received a letter of determination. If the Form 1023 was either filed after 7/15/87 or was in the organization’s possession on this date, it is made available for public inspection. (This requirement applies to tax-exempt organizations.)
E	4. IRS form 990 and 990T (unrelated business income) if required, have been filed and copies of the 990 are available to the public. (This requirement applies to tax-exempt organizations.)
E	5. Federal and state payroll tax withholding payments are current. (This requirement applies organizations with employees.)
E	6. Quarterly and annual payroll report filings are current. (This requirement applies organizations with employees.)
E	7. The organization has filed with the Minnesota Department of Economic Security and complies with all filing requirements of the Minnesota Unemployment Fund. (This requirement varies among states. Readers are encouraged to contact their Attorney General’s or Secretary of State’s office for any filing requirements in their state.)
E	8. If the organization has qualified employee health and welfare and retirement benefit plans, they meet with all the federal laws, including: COBRA; initial IRS registration; plan documents; annuals filings of the 5500 C/R with copies available to employees. (This requirement applies organizations with employees.)
E	9. Organization acknowledges and discloses to their board and auditor any lawsuits or pending legislation which may have a significant impact on the organization’s finances and/or operating effectiveness.
E	10. When the Board of Directors makes decisions, a quorum is present and minutes are maintained.
E	11. If the organization is subject to sales tax, State and City filings and payments are current.
E	12. Organizations that participate in grassroots or direct lobbying have complied with all filings and government regulations.
E	13. Organizations that conduct charitable gambling have complied with government regulations.
E	14. Organizations with employees represented by a union must have copies of the union contracts on file.
E	15. Organizations that operate in a fiscal or host-organization relationship with another organization or social service group have a written agreement on file.
Indicators ratings: E=essential; R=recommended; A=additional to strengthen organizational activities

This information may be copied. Please cite credit to the Greater Twin Cities United Way.

---

For the Category of Organizational Development:

To round out your knowledge of this Library topic, you may want to review some related topics, available from the link below. Each of the related topics includes free, online resources.

Also, scan the Recommended Books listed below. They have been selected for their relevance and highly practical nature.

• Related Library Topics
• Recommended Books

Checklist of Nonprofit Organizational Indicators

• Guidelines for accomplishing nonprofit capacity building are included in the books Field Guide to Consulting and Organizational Development with Nonprofits, Strengthening Nonprofit Performance: A Funder’s Guide to Capacity Building and Coping With Cutbacks: The Nonprofit Guide to Success When Times Are Tight .

Edited by Carter McNamara, MBA, PhD

(This organizational assessment tool can be completed online for free.)

Description

The following checklist is a resource developed by staff and volunteers of the United Way of Minneapolis Area for internal use by nonprofit organizations. Management can use the checklist to identify their organization’s administrative strengths and weaknesses. United Way staff and community volunteers intend this to strengthen their administrative capabilities. It is believed that widespread use of the checklist ultimately results in a more effective and efficient nonprofit community. The checklist is not intended to be used as a tool for external evaluation, or by grantmakers in making funding decisions. This tool will be used to assist nonprofit organizations to gain a better understanding of their management needs and/or make improvements to management operations.

This checklist includes the following sections:

• How to Use the Tool
• Disclaimers
• Legal Indicators
• Governance (Board) Indicators
• Human Resources Indicators
• Planning Indicators
• Financial Indicators
• Fundraising Indicators

Also consider
Related Library Topics

How to Use the Tool

The checklist indicators represent what is needed to have a healthy, well-managed organization. Since it is a self-assessment tool, organizations should evaluate themselves honestly against each issue and use the response to change or strengthen its administrative operations.

Ratings:

Each indicator is rated based on its importance to the operation and effectiveness of any nonprofit organization. The ratings are:

• E: Indicators with an “E” are essential or basic requirements to the operations of all nonprofit
  organizations. Organizations which do not meet the requirements of these indicators could place their organizations in jeopardy.
• R: An “R” rating signifies that these indicators are recommended as standard practice for effective
  nonprofit organizations.
• A: Additional indicators which organizations can implement to enhance and strengthen their management operations and activities are rated with an “A”.

Checklist Responses:

Organizations can respond in one of three ways to each indicators used:

1. Needs work – An indicator that is marked as “Needs Work” implies that work has been done towards achieving this goal. The organization is aware of the need for this indicator, and is working towards attaining it.
2. Met – All indicators marked as “Met” demonstrate that the organization has fulfilled as essential management need. However, the organization should review these indicators in the future to be sure that their management remains healthy in view of the many internal and external changes which constantly occur in all organizations.
3. N/A – Indicators marked as “N/A” can mean several things, including:
   • the indicator is not applicable to the management operations of this organization
   • the organization is not sure of the need to meet the requirements of this indicator
   • the organization has not met, nor is working on this indicator presently, but may address it in the future

All organizations should take note: All responses to indicators should be reviewed carefully to see if they could improve management operations. Indicators checked “N/A” due to uncertain applicability to the organization must be further reviewed to determine if they should become a part of “doing business.” If the assessors simply do not know what the indicator means, further information may be needed to accurately assess the feasibility of its application. Indicators marked “N/A” because they have not been met but that apply to the organization, may require immediate attention. Technical assistance, consulting,
or training may be required to implement these indicators.

The indicators in this checklist should be informative and thought provoking. The checklist can be used to achieve not only a beginning level of good management, but improve existing management to provide the organization with greater stability, reliability and success in the nonprofit community. It is also a useful too if an organization is experiencing management problems, to help pinpoint any weaknesses so action can be taken or assistance sought to improve the organization’s health. All organizations should use the checklist to re-assess themselves periodically to ensure compliance with established rules and regulations, and to continue improving administrative health through the indicator’s helpful suggestions.

Disclaimer

This checklist is designed to provide accurate and authoritative information regarding the topics covered. Legal requirements and non-legal administrative practice standards reflected herein are capable of change due to new legislation, regulatory and judicial pronouncements, and updated and evolving guidelines. All stated legal requirements are in effect as of September 1, 1995. The same are utilized with the understanding that the provision of this checklist does not constitute the rendering of legal, tax or other professional services.

If the organization requires professional assistance on these or other nonprofit tax, management, or accounting issues, please contact your own professional advisors.

This information may be copied. Please cite credit to the Greater Twin Cities United Way.

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For the Category of Organizational Development:

To round out your knowledge of this Library topic, you may want to review some related topics, available from the link below. Each of the related topics includes free, online resources.

Also, scan the Recommended Books listed below. They have been selected for their relevance and highly practical nature.

• Related Library Topics
• Recommended Books

Checklist to Assess Fundraising Activities
in Nonprofit Organizations

(certain sections of the following
may be specific to the U.S.)

Edited by Carter McNamara, MBA, PhD

(Be sure to read How to
Use this Tool and Disclaimers
before using information in this document.)

This document includes general fundraising and using
an outside professional fundraiser.

Also consider
Related Library Topics

General Fundraising

Rating *	Indicator	Met	Needs Work	N/A
E	1. Funds are raised in an ethical manner for activities consistent with the organization’s mission and plan.
E	2. The Board of Directors and organization staff are knowledgeable about the fundraising process and the roles in the organization.
E	3. The organization’s Board of Directors has established a committee charged with developing, evaluating and reviewing fundraising policies, practices and goals.
E	4. The committee is actively involved in the fundraising process and works to involve others in these activities.
R	5. The Board of Directors, executive director and committee supports and participates in the total fundraising process, including project identification, cultivation, solicitation and recognition.
R	6.The fundraising program is staffed and funded at a level consistent with fundraising expectations.
A	7. There is direct communications and relationship between information services or marketing, accounting and other administration support functions to assist in the fundraising needs and efforts.
E	8. The organization is accountable to donors and other key constituencies and demonstrates their stewardship through annual reports.
Indicators ratings: E=essential; R=recommended; A=additional to strengthen organizational activities

Using an Outside
Fundraiser

Rating *	Indicator	Met	Needs Work	N/A
A	9. The organization meets the nonprofit standards of the state charities review council (if one exists in the state, e.g., the Minnesota Charities Review Council provides standards for Minnesota’s charitable nonprofits).
R	10. If the organization chooses to use outside professional fundraisers, several competitive bids are solicited. Each prospective outside fundraiser’s background and references are checked.
E	11. The organization makes legal, mutual agreed upon, signed statements with outside professional fundraisers, outline each parties’ responsibilities and duties, specifying how the contributed funds will be physically handled, and to guarantee that the fees to be paid are reasonable and fair.
E	12. The organization has verified that the contracted fundraiser is registered as a professional fundraiser with the Attorney General and all filings necessary have been made before the work commences. (Registration requirements are dependent on state requirements.)
E	13. The fundraising committee or appropriate representatives from the Board of Directors reviews all prospective proposals with outside professional fundraiser and reviews and accepts all agreements before they are signed.
R	14. If the outside professional fundraiser plans to contact potential donors directly, the organization must review the fundraising materials (e.g., public service announcements, print or broadcast advertisements, telemarketing scripts, pledge statements, brochures, letters, etc.) to verify their accuracy and to ensure that the public disclosure requirements have been met.
E	15. The organization properly reports all required information regarding use of outside professional fundraisers, amount of funds raised and the related fundraising expenses as required by state and federal governments. The gross amount of funds raised by the contracted fundraiser is reported on the organization’s financial statement. The fees and costs of the campaign must be reported on the statement of functional expenses.
Indicators ratings: E=essential; R=recommended; A=additional to strengthen organizational activities

This information may be copied. Please cite credit to the
Greater Twin Cities United Way.

---

For the Category of Organizational Development:

To round out your knowledge of this Library topic, you may want to review some related topics, available from the link below. Each of the related topics includes free, online resources.

Also, scan the Recommended Books listed below. They have been selected for their relevance and highly practical nature.

Related Library Topics

Recommended Books

Checklist to Assess Financial Activities in Nonprofit Organizations

(certain sections of the following may be specific to the U.S.)

Edited by Carter McNamara, MBA, PhD

(Be sure to read How to Use this Tool and Disclaimers before using information in this document.)

Also consider
Related Library Topics

Rating *	Indicator	Met	Needs Work	N/A
E	1. The organization follows accounting practices which conform to accepted standards.
E	2. The organization has systems in place to provide the appropriate information needed by staff and board to make sound financial decisions and to fulfill Internal Revenue Service requirements.
R	3. The organization prepares timely financial statements including the Balance Sheet [or statement of financial position) and Statement of Revenue and Expenses [or statement of financial activities!] which are clearly stated and useful for the board and staff.
R	4. The organization prepares financial statements on a budget versus actual and/or comparative basis to achieve a better understanding of their finances.
E	5. The organization develops an annual comprehensive operating budget which includes costs for all programs, management and fundraising and all sources of funding. This budget is reviewed and approved by the Board of Directors.
R	6. The organization monitors unit costs of programs and services through the documentation of staff time and direct expenses and use of a process for allocation of management and general and fundraising expenses.
E	7. The organization prepares cash flow projections.
R	8. The organization periodically forecasts year-end revenues and expenses to assist in making sound management decisions during the year.
E	9. The organization reconciles all cash accounts monthly.
E	10. The organization has a review process to monitor that they are receiving appropriate and accurate financial information whether from a contracted service or internal processing.
E	11. If the organization has billable contracts or other service income, procedures are established for the periodic billing, follow-up and collection of all accounts, and has the documentation that substantiates all billings.
E	12. Government contracts, purchase of service agreements and grant agreements are in writing and are reviewed by a staff member of the organization to monitor compliance with all stated conditions.
E	13. Payroll is prepared following appropriate State and Federal regulations and organizational policy.
E	14. Persons employed on a contract basis meet all Federal requirements for this form of employment. Disbursement records are kept so 1099’s can be issued at year end.
E	15. Organizations that purchase and sell merchandise take periodic inventories to monitor the inventory against theft, to reconcile general ledger inventory information and to maintain an adequate inventory level.
R	16. The organization has a written fiscal policy and procedures manual and follows it.
E	17. The organization has documented a set of internal controls, including the handling of cash and deposits, approval over spending and disbursements.
E	18. The organization has a policy identifying authorized check signers and the number of signatures required on checks in excess of specified dollar amounts.
E	19. All expenses of the organization are approved by a designated person before payment is made.
R	20. The organization has a written policy related to investments.
R	21. Capital needs are reviewed at least annually and priorities established.
R	22. The organization has established a plan identifying actions to take in the event of a reduction or loss in funding.
R	23. The organization has established, or is actively trying to develop, a reserve of funds to cover at least three months of operating expenses.
E	24. The organization has suitable insurance coverage which is periodically reviewed to ensure the appropriate levels and types of coverages are in place.
E	25. Employees, board members and volunteers who handle cash and investments are bonded to help assure the safeguarding of assets.
E	26. The organization files IRS form 990’s in a timely basis within prescribed time lines.
R	27. The organization reviews income annually to determine and report unrelated business income to the IRS.
R	28. The organization has an annual, independent audit of their financial statements, prepared by a certified public accountant.
R	29. In addition to the audit, the CPA prepares a management letter containing recommendations for improvements in the financial operations of the organization.
R	30. The Board of Directors ,or an appropriate committee, is responsible for soliciting bids, interviewing auditors and hiring an auditor for the organization.
R	31. The Board of Directors, or an appropriate committee, reviews and approves the audit report and management letter and with staff input and support, institutes any necessary changes.
E	32. The audit, or an organization prepared annual report which includes financial statements, is made available to service recipients, volunteers, contributors, funders and other interested parties.
A	33. Training is made available for board and appropriate staff on relevant accounting topics and all appropriate persons are encouraged to participate in various training opportunities.
Indicators ratings: E=essential; R=recommended; A=additional to strengthen organizational activities

This information may be copied. Please cite credit to the Greater Twin Cities United Way.

---

For the Category of Organizational Development:

To round out your knowledge of this Library topic, you may want to review some related topics, available from the link below. Each of the related topics includes free, online resources.

Also, scan the Recommended Books listed below. They have been selected for their relevance and highly practical nature.

• Related Library Topics
• Recommended Books

Capacity Building (Nonprofit)

• Guidelines for accomplishing nonprofit capacity building are included in the books Field Guide to Consulting and Organizational Development with Nonprofits, Strengthening Nonprofit Performance: A Funder’s Guide to Capacity Building and Coping With Cutbacks: The Nonprofit Guide to Success When Times Are Tight .

© Copyright Carter McNamara, MBA, PhD, Authenticity Consulting, LLC

Capacity building has fast become a major topic among nonprofits and management support organizations (funders, associations, training centers, consultants, etc.) that provide services to nonprofits.
There are a variety of definitions for capacity building. Perhaps the most fundamental definition is “actions that improve nonprofit effectiveness” (from Investing in Capacity Building by Barbara Blumenthal, published by The Foundation Center). Some other discussions about capacity building refer to the concept as actions that enhance a nonprofit’s ability to work towards its mission.

The concept of capacity building in nonprofits is similar to the concept of organizational development, organizational effectiveness and/or organizational performance management in for-profits. Capacity
building efforts can include a broad range of approaches, eg, granting operating funds, granting management development funds, providing training and development sessions, providing coaching,
supporting collaboration with other nonprofits, etc. Prominent methods of organizational performance management in for-profits are beginning to be mentioned in discussions about capacity building, as well, for example, the Balanced Scorecard, principles of organizational change, cultural change, organizational learning, etc.

Information in this topic of the Library will acquaint you with the concept of capacity building in nonprofits, including offering you a broad background from some suggested previous readings, numerous perspectives on capacity building from numerous articles, and then review of various common functions in nonprofits (eg, boards, role of CEO, programs, marketing, fundraising, finances, evaluation, etc.). The topic closes with review of major methods of organizational performance management.

Sections of This Topic Include

• Suggested Previous Readings
• Articles About Capacity Building
• Common Functions in Nonprofits
• Organizational Performance Management Approaches
• Shutting Down a Nonprofit

Also consider

• Organizational Structures and Design
• Organizational Change
• Organizational Evaluations
• Organizational Performance Management
• Related Library Topics

Learn More in the Library’s Blogs Related to Nonprofit Capacity Building

In addition to the articles on this current page, also see the following blogs that have posts related to Nonprofit Capacity Building. Scan down the blog’s page to see various posts. Also, see the section “Recent Blog Posts” in the sidebar of the blog or click on “next” near the bottom of a post in the blog. The blog also links to numerous free related resources. Get updated on nonprofit capacity building.

• Library’s Consulting and Organizational Development Blog
• Library’s Human Resources Blog
• Library’s Leadership Blog
• Library’s Project Management Blog
• Library’s Supervision Blog

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Suggested Previous Readings

• Performance Management: An Overview (basic concepts in performance management)
• Introduction to Organizations (defines organizations, their basic parts, dimensions, life cycles, etc.)
• Guidelines, Methods and Resources for Organizational Change Agents
• Organizational Sustainability
• An Overview of the Field of Organization Development

Articles About Capacity Building

There are an increasing number of publications about the general topic of nonprofit capacity building. The following list will help you to get you started. Some items on the list are not available as online articles and need to be ordered from the publisher.

• Common Types of Capacity Building
• Building Capacity in Nonprofit Organizations, Urban Institute Press (online and can take a while to download)
• Effective Capacity Building in Nonprofit Organizations (online and can take a while to download)
• How to “Do” Capacity Building, order from Council on Foundations.
• Lessons from the Street: Capacity Building and Replication (online and can take a while to download)
• Nonprofit Capacity Building Toolkit, order from Authenticity Consulting, LLC
• Strengthening Nonprofit Organizations: A Funder’s Guide to Capacity Building
• Reactive Versus Planful Nonprofits
• 4 Rules of Non-Profit Capacity Building
• An Extraordinary Model of Capacity Building
• 5 Reasons Why Culture is So Important to Your Nonprofit
• Capacity Building Manual
• Course 15: Creating Value in the Nonprofit Sector
• Get Thy Nonprofit Self Into Therapy!
• Delivering Training and Technical Assistance
• Identifying and Promoting Effective Practices
• Some Guiding Principles for Your 2012 Goals
• Great Research for Nonprofits: Millennial Impact Report – Involve the 20-35 Year Olds
• Meeting the Requirement for at Least 3 Proposals to Get Funding
• My Concerns About the Use of “Templates”
• Nonprofit Lifecycle Analysis
• Strategic Planning – Make Sure that It Is a Call to Action

Common Functions in Nonprofits

The following links are to information about the major functions typically carried out in nonprofit organizations. An understanding of these functions is important to the success of capacity building efforts.

• Preparation for Planning a New Venture
• How to start nonprofit venture (everything you need to know to start a nonprofit)
• Complete Free Toolkit for Boards
• Role of Chief Executive
• How to conduct nonprofit business planning (guidelines and samples)
• How to conduct strategic planning (guidelines and samples)
• Basic Guide to Program Design and Marketing (complete guidelines)
• Advertising and Promotions (basics, guidelines and samples)
• All About Marketing (basics, research, pricing, promoting, etc.
• All About Sales (basics and advanced information)
• Public and media relations (basics and advanced information)
• Nonprofit Fundraising and Grantwriting
• Free Online Guide to Staffing
• Volunteer Management
• Basic Guide to Managing Nonprofit Finances
• Basic Guide to Program Evaluation

Organizational Change and Performance Management Approaches

The following approaches are some of the most common for enhancing the performance of an organization.

• Balanced Scorecard
• Cultural Change
• Knowledge Management
• Management by Objectives
• Guidelines, Methods and Resources for Organizational Change Agents
• Organizational Learning
• Program Evaluation
• Strategic Planning

Shutting Down a Nonprofit

There seems to be an increasing number of people who believe that, once a nonprofit has addressed the social need that it was started to meet, then it should shut down — or “sunsetted.”

• Why Charities Should Have an Expiration Date
• Thinking the Unthinkable — Maybe We Should Shut Down
• Closing Down the Right Way

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For the Category of Capacity Building (Nonprofit):

To round out your knowledge of this Library topic, you may want to review some related topics, available from the link below. Each of the related topics includes free, online resources.

Also, scan the Recommended Books listed below. They have been selected for their relevance and highly practical nature.

• Related Library Topics
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Checklist to Evaluate a Nonprofit Board of Directors

(certain sections of the following may be specific to the U.S.)

Edited by Carter McNamara, MBA, PhD

(Be sure to read How to Use this Tool and Disclaimers before using information in this document.)

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Rating *	Indicator	Met	Needs Work	N/A
E	1. The roles of the Board and the Executive Director are defined and respected, with the Executive Director delegated as the manager of the organization’s operations and the board focused on policy and planning
R	2. The Executive Director is recruited, selected, and employed by the Board of Directors. The board provide clearly written expectations and qualifications for the position, as well as reasonable compensation.
R	3. The Board of Directors acts a governing trustees of the organization on behalf of the community at large and contributors while carrying out the organization’s mission and goals. To fully meet this goal, the Board of Directors must actively participate in the planning process as outlined in planning sections of this checklist.
R	4. The board’s nominating process ensures that the board remains appropriately diverse with respect to gender, ethnicity, culture, economic status, disabilities, and skills and/or expertise.
E	5. The board members receive regular training and information about their responsibilities.
E	6. New board members are oriented to the organization, including the organization’s mission, bylaws, policies, and programs, as well as their roles and responsibilities as board members.
A	7. Board organization is documented with a description of the board and board committee responsibilities.
A	8. Each board has a board operations manual.
E	9. If the organization has any related party transactions between board members or their family, they are disclosed to the board of directors, the Internal Revenue Service and the auditor.
E	10. The organization has at least the minimum number of members on the Board of Directors as required by their bylaws or state statute.
R	11. If the organization has adopted bylaws, they conform to state statute and have been reviewed by legal counsel.
R	12. The bylaws should include: a) how and when notices for board meetings are made; b) how members are elected/appointed by the board; c) what the terms of office are for officers/members; d) how board members are rotated; e) how ineffective board members are removed from the board; f) a stated number of board members to make up a quorum which is required for all policy decisions.
R	13. The board of directors reviews the bylaws.
A	14. The board has a process for handling urgent matters between meetings.
E	15. Board members serve without payment unless the agency has a policy identifying reimbursable out-of-pocket expenses.
R	16. The organization maintains a conflict-of-interest policy and all board members and executive staff review and/or sign to acknowledge and comply with the policy.
R	17. The board has an annual calendar of meetings. The board also has an attendance policy such that a quorum of the organization’s board meets at least quarterly.
A	18. Meetings have written agendas and materials relating to significant decisions are given to the board in advance of the meeting.
A	19. The board has a written policy prohibiting employees and members of employees’ immediate families from serving as board chair or treasurer.
Indicators ratings: E=essential; R=recommended; A=additional to strengthen organizational activities

This information may be copied. Please cite credit to the Greater Twin Cities United Way.

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For the Category of Organizational Development:

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