Developing Your Nonprofit Strategic Plan

Free Nonprofit Micro-eMBA Module 6: Developing Your Strategic Plan

Much of this program is based on materials adapted from the

Nonprofit Capacity Building Toolkit(SM).

This module is in the nonprofit organization development program. However, this module can also be used by anyone as a self-study exercise to learn more about strategic planning and writing a strategic plan.

Sections of This Module Include the Following

Introduction
Outcomes
Materials for Review
Suggested Topics for Reflection and Discussion
Activities to Build Systems and Practices
Assessments
Tracking Open Action Items

INTRODUCTION

Very simply put, strategic planning identifies where the organization wants to be at some point in the future and how it is going to get there. The “strategic” part of this planning process is the continual attention to current changes in the organization and its external environment, and how this affects the future of the organization. Skills in strategic planning are critical to the long-term success of your organization. This form of planning includes:

a) Taking a wide look around at what’s going on outside the organization and how it might affect the organization (an environmental scan), and identifying opportunities and threats
b) Taking a hard look at what’s going on inside the organization, including its strengths and weaknesses (perhaps doing a SWOT analysis)
c) Establishing statements of mission, vision and values (some prefer to do that as the first step in planning)
d) Establishing goals to accomplish over the next (usually) three years or so, as a result of what’s going on inside and outside the organization
e) Identifying how those goals will be reached (strategies, objectives, responsibilities and timelines)

Strategic planning determines the overall direction and goals of the organization. Consequently, strategic planning influences numerous aspects of the organization, including what:

a) Products and services will be provided by the business and how those products and services will be designed
b) Organizational design and roles will be needed by the organization
c) Performance goals should be established for positions throughout the business
d) Board committees should be developed (in the case of corporations)
e) Resources will be needed to achieve those goals, and consequently, how much money is needed to procure those resources — ultimately, the goals determine the content of various budgets

Two key points to remember while proceeding through this module are:
1) The planning process is at least as important as the planning document itself
2) The planning process is never “done” — the planning process is a continuous cycle that’s part of the management process itself

NOTE ABOUT BOARD COMMITTEES: Consider establishing a Board Planning Committee (in the case of corporations) to review and help guide implementation of the information in this learning module.
The Planning Committee might be comprised of chairs from other board committees. Major activities and goals from this learning module could be incorporated in that Committee’s Committee Work Plan. This module includes additional recommendations for membership of the group of planners.

NOTE ABOUT OCCASIONAL REFERENCES TO NONPROFIT MATERIALS: Various links below refer to nonprofit strategic planning — there is little difference between strategic planning in for-profit and nonprofit organizations. Consequently, all of the materials referenced below can be useful to understanding strategic planning in for-profit organizations.

NOTE ABOUT STRATEGIC PLANNING PROCESS USED IN THIS MODULE:
There are many different ways to do strategic planning. The process used depends on the nature and needs of the organization, the reason for the planning (there are numerous, different reasons for doing strategic planning), the types of priorities faced by the organization, the rate of change outside and inside the organization, the ways that decisions are made in the organization, the expertise of people doing the planning, the extent of external research needed to do the planning, and the personal preferences of the organization’s leaders and the facilitator(s) of the planning process. Because this module aims to explain strategic planning to people who have no — or very little — experience in strategic planning, some basic approaches are described in this module. Other approaches are described in the Library’s Strategic Planning topic.

Also consider

Related Library Topics

OUTCOMES

Understand the Strategic Planning Process
Draft Your Mission, Vision and Values Statements
Conduct Basic Strategic Analysis
Set Strategic Direction
Conduct Action Planning
Draft an Operating Budget
Write and Communicate Your Plan
Monitor and Evaluate Your Strategic Plan
Evaluate Your Strategic Planning Practices

MATERIALS FOR REVIEW

The following materials will help you address each of the topics and learning activities in this module.
NOTE: Each of the following links is to a one- to two-page overview. Read all of the following documents referenced by the following links.

Introduction to Basics of Planning (general to most planning processes)

Read all of the document referenced by the following topic.

Basic Guidelines for Successful Planning Process

Introduction to Strategic Planning

Read all of the documents referenced by the following topics.

Preparation for Strategic Planning

Read all of the documents referenced by the following topics.

Conducting Strategic Planning

Read all of the documents referenced by the following topics.

ACTIVITIES TO BUILD SYSTEMS AND PRACTICES

Learners are strongly encouraged to complete the following activities, and share and discuss results with peers, board members, management and employees, as appropriate.
You can write a draft of your own strategic plan by filling in the Framework for a Basic Strategic Plan Document as you proceed through the activities listed below.
Learners are strongly encouraged to use a team of planners to complete the strategic plan. The following information references advice and guidelines for forming this team.
As you proceed through the following activities, be sure to note any incomplete actions in the Action Item Planning List.

Preparation (for Organizations That Have Not Yet Done Strategic Planning) — Do a “Plan for a Plan”

Address any hesitations that planners might have before you start planning. Do you have any reservations or hesitations about the value of strategic planning? If you do not want to pursue the strategic planning process as it is described in this module, then how will you (the board, chief executive and other employees) decide what your organization will be doing over the next few years and how it will do it? (Many banks/funders, prospective board members and chief executives will want to see some form of a strategic plan document. Consider this in your decision about how your organization will do strategic planning.)
What planning model will you use? Basic? Issues-based? Organic? How did you select the model that you’ll use? (See Basic Overview of Various Strategic Planning Models.)
When should your strategic planning be done? (See When Should Strategic Planning Be Done?)
Will you need a facilitator? If so, where might you get one? (See Need Consultant or Facilitator to Help You With Planning?.)
Who should be involved in your strategic planning? Be sure at least the Board Chair is involved and certainly the CEO. (See Who Should Be Involved in Planning?)
Will there be strong, visible support of the CEO and Board Chair to others in the organization? (See How Many Planning Meetings Will We Need?)
How will you ensure implementation of the plan? (See How Do We Ensure Implementation of Our New Plan?)

Developing Your Basic Strategic Plan Document

The following activities involve completing a Strategic Plan document. A framework, or template, is provided for you, Framework for a Basic Strategic Plan Document. However, that document is in HTML, of Web-based format. You might be better to re-create the framework, using your preferred word-processing software.

Write Your Mission Statement. In the section labeled “Mission Statement” in the Framework for a Basic Strategic Plan Document, write a concise description of the purpose of your organization. Answer the question: “Why does our organization exist?” When answering this question, include the nature of your products and the groups of customers who buy your products. The mission statement should provide continued direction and focus to your plans and operation in your organization. (See Basics of Developing Mission, Vision and Values Statement.)
Write Your Vision Statement. In the section labeled “Vision Statement” in the Framework for a Basic Strategic Plan Document, write your vision statement. Answer the question “What do you hope for your organization and customers?” Ideally, it should be written in a compelling, inspirational fashion. (See Basics of Developing Mission, Vision and Values Statements.)
Write Your Values Statement. In the section labeled “Values Statement” in the Framework for a Basic Strategic Plan Document, write down the important values from which you want your organization to operate. The values statement depicts the priorities in how the organization carries out activities with stakeholders. (See Basics of Developing Mission, Vision and Values Statements.)
Conduct an External Analysis. In Appendix C of the Framework for a Basic Strategic Plan Document,
write down your thoughts from an external analysis. An external analysis looks at societal, technological, political, and economic trends affecting the organization, e.g., trends in the economy,
recent or pending legislation, demographic trends, rate of access to trained labor, and competition. In your external analysis, don’t forget to look at stakeholders’ impressions of the organization, including bankers’, customers’, community leaders’, etc.
Conduct an Internal Analysis. In Appendix C of the Framework for a Basic Strategic Plan Document,
write down your thoughts from your internal analysis. Write down the major strengths and weaknesses of your organization. Write down the major threats and opportunities regarding your organization. Consider trends affecting the organization, e.g., strength of sales, reputation of the organization, expertise of employees, facilities, strength of finances, strength of administrative offices and operations, etc.
Identify Strategic Issues. In Appendix C of the Framework for a Basic Strategic Plan Document, write down the major immediate and near-term issues that your organization must address. New organizations, in particular, are often better off to first look at the major obstacles or issues that if faces, and next identify the more forward-looking, developmental goals to accomplish over the next few years. For example, current issues might be that sales are dropping, there is no research and development to generate new products, employee turnover rate is too high, etc. Developmental goals for a new organization might be, for example, build a board, do a strategic plan, do a market analysis to build a new product, hire employees, etc. (Basics of Identifying Strategic Issues and Goals.)
Establish Strategic Goals. In the section labeled “Goals and Strategies” in the Framework for a Basic Strategic Plan Document, write down the strategic goals to address the above-identified issues and the more forward-looking, developmental goals. Consider goals over the term of your strategic plan, but look very closely at the next year especially. Design and word your goals to be “SMARTER”, that is, specific, measurable, acceptable to the people working to achieve the goals, realistic, timely, extending the capabilities of those working to achieve the goals and rewarding to them. Don’t worry so much about having to specify goals to be exactly “correct”. Carefully consider whether the goals and strategies are closely aligned with your mission, vision and values. (Basics of Identifying Strategic Issues and Goals.)
Develop Staffing Plan. In Appendix E of the Framework for a Basic Strategic Plan Document, write a rough draft of a staffing plan. To do this, reference each of the strategies to reach the goals and consider what kind of capabilities are needed to implement the strategies. This might seem like a lot of guesswork, particularly if you don’t have experience in supervision. However, don’t worry so much about being exactly correct — you will likely refine your staffing plan later on as you design and plan your products. If you are developing a new organization, you might think about including the following typical roles in your initial staffing plan (but again, consider these roles in terms of implementing the strategies in your plan): chief executive, administrative assistant and product managers for each of your major product goals. (See Organizing Staff.)
Conduct Action Planning. In Appendix A of the Framework for a Basic Strategic Plan Document, for each strategy, write down the objectives that must be achieved while implementing the strategy, when the objective should be completed and by whom — especially over the next year. As you identify who will accomplish each of the objectives, you might end up refining your staffing plan. (See Basics of Action Planning.)
Describe the Process Used to Develop the Plan, in Appendix B. It helps to describe the process now, so planners can refer to it the next time they do planning.
Document Any Strategic Goals Assigned to the Board Committees and CEO in Appendix D. One of the best ways to ensure that strategic goals are achieved is to assign them to a person or group of people.
Develop an Operating Budget for Each Year in the Plan, for Appendix F. In the table labeled “Your Budget Planning” in Appendix F of the Framework for a Basic Strategic Plan Document, list the resources you will need to achieve the goals in the strategic plan and what it will cost to obtain and use the resources. You don’t have to be exactly accurate — besides, you may end up changing your budget as you give more attention to product design and planning in the next learning module. You should do a budget for each of the years included in the span of time covered by your strategic plan — but give particular attention to the first year of the time span.
Specify How Implementation of Plan Will Be Monitored and Evaluated. In Appendix G of the Framework for a Basic Strategic Plan Document, write down how the status of implementation will be monitored and evaluated. Consider, for example, weekly written status reports to the chief executive from employees, and monthly written reports to board members. Status will address whether goals and objectives are being met or not, current issues and any resource needed to implement the plan. (See How Do We Ensure Implementation of Our New Plan?)
Specify How Plan Will Be Communicated. In Appendix H of the Framework for a Basic Strategic Plan Document, write down how the plan will be communicated. Consider distributing all (or highlights from) the plan to everyone in the organization. Post your mission on the walls of your main offices. Consider giving each employee a card with the mission statement on it. Publish portions of your plan in your regular newsletter. (See Writing and Communicating the Plan.)
Write an Executive Summary. To complete your strategic plan document, update the following sections of the Framework for a Basic Strategic Plan Document.
a) Complete the section labeled “Executive Summary” (guidelines are provided in the framework)
b) Gain authorization from your board (in the case of corporations) (they should sign in the section labeled “Board Authorization of Strategic Plan”)
c) In the body of the plan in the section titled “Organizational Information”, include descriptions, for example, of the history of the organization, its major products and services, highlights and accomplishments during the history of the organization, etc.
Acknowledge What You’ve Done — Congratulations!

ASSESSMENTS

1. Planning Indicators (Best Practices) (includes program planning and evaluation)

2. Monitoring Implementation, Evaluating Implementation — and Deviating from Plan, If Necessary

REMINDERS FOR THOSE IN ONLINE DEVELOPMENT PROGRAM

Reminders About You

Are you using your skills learned in previous modules? For example, as you using methodical approaches to problem solving and decision making? Are you using strong practices of meeting management? Are you communicating key information to others throughout your organization?
Are you discussing topics and materials with peers, board members and others, as appropriate? Discussion and ongoing feedback are some of the best methods to really learn new information and materials.
Are you helping others to hold you accountable to your times that you committed to reading and study in this program?
Are you reflecting on learnings from past modules and how they build on the learning in this module? For example, are you seeing your organization from a systems view, as explained in the module “Starting and Understanding Your Nonprofit?”

Reminders About Your Organization

The results of your strategic plan should produce updates to a variety of aspects in your organization. Consider:
a) Are your products and services directly aligned with your new strategic planning goals and strategies
b) Should any job descriptions and performance goals be updated for personnel in your organization?
c) Should your board committees be re-organized to be more aligned to contribute toward achieving your new strategic goals?
How are you ensuring that your whole board understands and contributes to achieving your strategic goals?

TRACKING OPEN ACTION ITEMS

1. One of the first indicators that an organization or a person is struggling is that open action items are not tracked and reviewed. (Open action items are required actions that have not yet been completed.) Instead, people only see and react to the latest “fires” in their workplaces or their lives. Whether open action items are critical to address now or not, they should not entirely be forgotten. Therefore, update and regularly review a list of open action items (identified while proceeding through this program) that includes listing each open action item, who is responsible to complete it, when it should be completed and any associated comments. When updating the list, consider action items as identified during discussions, learning activities and assessments in this module. Share and regularly review this action item list with the appropriate peers, board, management and employees in your organization. You can use the following Action Item Planning List. (At that Web address, a box might open, asking you which software application to open the document.)

2. If you have questions, consider posing them in the national, free, online discussion group hr.com, which is attended by many human resource and organization development experts.

(Learners in the nonprofit organization development program can return to the nonprofit organization development program.)

For the Category of Strategic Planning:

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.

January 18, 2022September 22, 2022

Framework for a Basic Strategic Plan Document for a Nonprofit

Business men brainstorming while writing on paper

Framework for a Basic Strategic Plan Document for a Nonprofit

Directions

The following framework will guide you through completion of your basic strategic plan document. (There are many models for strategic planning — this framework is for conducting a goals-based plan.) Each section includes directions. Many sections include examples, as well. In addition, sections includes links to related, additional information to help the reader fill out that section of the framework.

NOTE: The framework depicts a useful format, but should be duplicated into an editable version, for example, into Microsoft Word.

Readers are encouraged to work with a planning team in their organization to fill in this framework. After completing this framework, readers can move information from the framework to a more suitable document to be the final version of the strategic plan document, if desired.

(Note that there are a wide variety of perspectives and approaches regarding strategic planning. The library topic Strategic Planning provides overviews of many of these perspectives and approaches.)

Also consider
Related Library Topics

[NAME OF YOUR ORGANIZATION!!]

STRATEGIC PLANfor the period

[insert dates!!]

[insert date that plan was authorized by board by
directors (in the case of a corporation)!!]

TABLE OF CONTENTS

Executive Summary

Board Authorization of Strategic Plan [in the
case of a corporation!!]

Organizational Description

Mission, Vision and Values

Goals and Strategies

Appendices
A – Action Planning (objectives, responsibilities and time lines)
B – Description of Strategic Planning Process Used
C – Strategic Analysis Data (External Analysis, Internal Analysis
& List of Issues)
D – Goals for Board Committees and Chief Executive Officer
E – Staffing Plans
F – Operating Budgets
G- Financial Reports (Budgets, Statements, etc.)
H – Monitoring and Evaluation of Plan (Criteria, Responsibilities
and Findings)
I – Communicating the Plan

Executive Summary

(Complete this section after you have finished the other sections of the plan document. The Executive Summary describes plan highlights to bankers/funders, board members, employees and other stakeholders. The Executive Summary should be one to two pages in length at most. It should include very concise descriptions of the most important information from the strategic planning process and its results. For example, include very brief descriptions of what’s in this document and how to use the document, strategic issues and goals, when the plan will be implemented, how the implementation will be monitored and by whom, and any specific actions required by upper management.)

Board Authorization of Strategic Plan [in the
case of a corporation!!]

(Authorization designates board member’s approval of the strategic direction and action plans described in this strategic plan document.)

Name of Board Member: ___________
Date Signed: _________

Name of Board Member: ____________
Date Signed: _________

(etc.)

Organizational Description

This section should include information that will be informative, particularly to readers from outside of the organization.

Brief overview of history of organization
Description of major products and services
Overview of major accomplishments and other highlights during history of organization

Mission Statement

The mission statement is a concise description of the purpose of the organization. It answers the question: Why does our organization exist? When answering this question, include the nature of your products and services, and the various groups of customers that buy the products and services. The mission statement should provide continued direction and focus to your plans and operations. Post your mission statement throughout your organization, on all stationery, in your plan documents, etc. (For additional assistance, see Writing Mission Statements.

Your Mission Statement: ____

Vision Statement

The vision statement is an inspirational, compelling answer to the question: What do you hope for your organization and customers? Ideally, it should be written in a compelling, inspirational fashion. Post your vision statement throughout your organization. (For additional assistance, see Writing Vision Statements.)

Your Vision Statement: ____

Values Statement

The values statement depicts the priorities in how the organization carries out activities with stakeholders. The board and chief executive should regularly reference the values statement to provide guidance to the nature of how the organization should operate. (For additional assistance, see Writing Values Statements.)

Your Values Statement: ___

Goals and Strategies

Goals are identified from having
taken a wide look around the outside of the organization (an external analysis) and careful look inside the nonprofit (an internal analysis), and then identifying what are the most important issues to address. Appendix C includes information to organize this analysis. Your Goals Should Be “SMARTER” When you design and word your goals, be sure they are “SMARTER”, that is, specific, measurable, acceptable to the people working to achieve the goals, realistic, timely, extending the capabilities of those working to achieve the goals and rewarding to them. Don’t worry so much about having to specify goals to be exactly “correct”. Your goals are likely to be modified somewhat as you give more attention later on to product design.

You Will Likely Have Organization-Wide and Product/Service-Specific Goals

You will probably have organization-wide goals, for example, goals in regard to building and running your organization, for example, board development, staffing, getting a new building, etc. You also will probably have goals that directly in regard to building, producing and selling products or services to your customers.

Write Down Goals to Address Issues

Below, write down the strategic goals that must be achieved in order to address the issues listed in Appendix
C. Think about what must be achieved in order to address the issues. Consider goals over the term of your strategic plan, but look very closely at the next year especially. (For additional assistance, see Strategizing.)

Write Down Forward-Looking Goals

Next, write down more forward-looking goals. If you are developing a new organization, then you’ll probably have goals to build a board, do a strategic plan, do a market analysis to build a program, get volunteers, hire staff, etc. Consider goals over the term of your strategic plan, but look very closely at the next year especially. (For additional assistance, see Strategizing.)

Next, Associate Strategies with Each Goal

Next , under each goal, write down the major approaches (or strategies) that must be used to achieve each goal. Consider strategies over the term of the strategic plan, but especially over the next year. (For additional assistance, see Strategizing.)

Now Consider: Are the Goals and Strategies Closely Aligned with Organization’s Mission, Vision and Values?

Does each goal and its associated strategies really contribute toward the mission and vision of the organization. Will the goals be reached by using strategies that are closely aligned with the values of the organization? If not, then very closely reconsider whether you want to pursue those goals and associated strategies.

Goals and Strategies (Cont.)

(Make copies of this page as needed.)

Your Goals and Strategies
Goal # 1 (Write them to be “SMARTER”)

Strategy # 1.1

Strategy # 1.2

Goal # 2

Strategy # 2.1

Strategy # 2.2

(etc.)

Appendix A — Action Planning (objectives, responsibilities and timelines)

In the section labeled “Your Action Plans” below, write down action plans, especially for the next year. Action plans specify how the strategic goals and strategies will be carried out. Action plans often include various objectives to be reached while achieving each goal, who is responsible for achieving each objective and by when. Write objectives to be “SMARTER”. (For additional assistance, see Action Planning.)

(Make copies of this page as needed.)

Goal # 1 (Write them to be “SMARTER”)

Strategy # 1.1

Objectives for Strategy 1. 1	Date of Completion	Respon- sibility	Status and Date
\| \| \|

(etc.)

Appendix B – Description of Strategic Planning Process Used

This appendix might include, for example,

description of how the strategic plan document was developed
who was involved in the planning
any major problems and lessons learned during the planning process
etc.

Appendix C – Strategic Analysis Data — External Analysis

An external analysis looks at societal, technological, political, and economic trends effecting the organization, e.g., recent or pending legislation, demographic trends, rate of access to trained labor, and competition. In your external analysis, don’t forget to look at stakeholders’ impressions of the organization, including bankers’/funders’, customers’, community leaders’, etc. (For additional assistance, see
Taking a Wide Look Around the Outside of the Organization.)

From out external analysis, we identified the following trends and how they might effect our organization:

Political trends:

Economic trends:

Societal trends:

Technological trends:

Other trends:

Appendix C – Strategic Analysis Data — Internal Analysis

Write down the major strengths and weaknesses of your organization. Consider the quality of operations of the Board, products, staffing, finances, facilities, marketing, etc. (For additional assistance, see Looking at Organization’s Strength’s, Weaknesses, Opportunities and Threats (SWOT).)

From out internal analysis (our SWOT analysis), we identified the following factors:

Strengths of the organization:

Weaknesses of the organization:

Appendix C – Strategic Analysis Data — Listing of Strategic Issues

New businesses, in particular, are often better off to first look at the major obstacles or issues that if faces, and next identify the more forward-looking, developmental goals to accomplish over the next few years. For example, current issues might be that sales are flat, there is high employee turnover, etc. Developmental goals for a new organization might be, for example, build a board, do a strategic plan, do a market analysis to build a product, hire staff, etc.

To identify the key issues identified from your strategic analyses, consider the following guidelines:
a) From considering the effects of weaknesses and threats that you identified, what are the major issues that you see? List as many as you can. Consider issues over the term of your strategic plan, but look very closely at the next year especially. Many organizations have stumbled badly because they ended up “falling over their feet” while being focused much too far down the road.
b) Consider each of the issues. Ask whether it’s “important” or “urgent.” Often, issues seem very important when they’re only urgent, for example, changing a flat tire is an urgent issue — but you’d never put “changing a tire” in your strategic plan. Attend only to the important issues and not the urgent issues.
c) Deal with issues that you can do something about. Issues that are too narrow do not warrant planning and issues that are too broad will bog you down.
d) Issues should be clearly articulated so that someone from outside of the organization can read the description and understand the nature of the issue. (The following link may be useful at this point when identifying issues: Life Cycles of Organizations.)

Key issues that our organization must address through use of this strategic plan include:

1. ________________________

2. ________________________

3. ________________________

4. ________________________

(etc.)

Appendix
D -Goals for Board Committees and Chief Executive Officer

Organize Appropriate Board Committees [in the case of corporations!!]

Board committees should be developed that associate with each of the major areas of strategic goals. For example, if a strategic goal is to build and develop the board, then consider a Board Development Committee. (Of course, you will have other types of board committees to address ongoing major activities that are not directly associated with types of strategic goals, for example, an executive committee.)

Build Board Work Plans

One of the best ways to ensure that board committees are fully participative and effective is through use of work plans for each board committee. With the board members, design work plans for each committees. Write goals and/or objectives to be “SMARTER”. A work plan is the plan that each board committee references to guide completion of their contribute to the organization’s strategic plan. For example:

Work Plans for Your Board Committees
(Make copies of this page as required.)

Board Committee _______

Committee Chair _______

Goal # 1(Write them to be “SMARTER”)

Strategy 1. 1

Objectives for Strategy 1. 1	Date of Completion	Respon- sibility	Status and Date
\| \| \|

(etc.)

Goals for the Chief Executive

The board [in the case of corporations!!] is responsible to provide ongoing governance and direction the
organization. Usually, the board decides to carry out their responsibilities by including the role of a chief executive in the organization. The board is responsible to oversee the performance of the chief executive and evaluate the performance of the chief executive on a regular basis.

The chief executive should be attending to responsibilities and goals that are directly aligned with the
strategic goals of the organization (as should the responsibilities and goals of everyone else in the organization). Therefore, after strategic goals have been identified, it’s timely for the board to update the performance goals of the chief executive (who, in turn, updates the performance goals of everyone else in the management and employees in the organization). (For additional information, see Performance Management, Board of Director’s Evaluation of Chief Executive and Employee Performance Management.)

Goals may need to be reworded to be more specific to the authority and resources of the chief executive role.

Goals should be designed and worded to be “SMARTER”, that is, specific, measurable, acceptable to the chief executive, realistic, timely, extending the capabilities of the chief executive and rewarding for him or her to accomplish.

Your Goals for Your Chief Executive

(Write goals to be “SMARTER”.)

1. _________________________

2. _________________________

3. _________________________

4. _________________________

(etc.)

Appendix E – Staffing Plans

Reference each of the strategies to reach the goals and consider what kind of capabilities are needed to implement the strategies. This might seem like a lot of guesswork, particularly if you don’t have experience in supervision. However, don’t worry so much about being exactly correct — you will likely refine your staffing plan later on as you design and plan your products in the development process. If you are developing a new organization, you might think about including the following typical roles in your initial staffing plan (but again, consider these roles in terms of implementing the strategies in your plan): chief executive, administrative assistant and product managers for each of your major products. However, it’s common that the chief executive is also a product manager or the first year or so. You may end up refining the staffing plan as you complete action planning, along with identifying who will accomplish each of your objectives. (The following link may help you when developing your staffing plan. See Organizing Staff.)

Note that in the following table, staffing is specified in terms of full-time equivalents (FTEs). One FTE is equal to one full-time staff position throughout the year. If staff will start half-way through a year, than include .5FTE, etc.

Staff Position	Year 1	Year 2	Year 3
*Central Administration, General Operating Activities:*
\| \|	\| \|	\| \|	\| \|
\| \|	\| \|	\| \|	\| \|
\| \|	\| \|	\| \|	\| \|
\| \|	\| \|	\| \|	\| \|
\| \|	\| \|	\| \|	\| \|
*Staff for Products [insert name!!]: (have a section for each product)*
\| \|	\| \|	\| \|	\| \|
\| \|	\| \|	\| \|	\| \|
\| \|	\| \|	\| \|	\| \|
\| \|	\| \|	\| \|	\| \|
\| \|	\| \|	\| \|	\| \|

Appendix F – Operating Budgets

In the table labeled “Your Budget Planning” included below, list the resources you will need to achieve the
goals in the strategic plan and the costs to get and use the resources — especially over the next year. You don’t have to be exactly accurate — besides, you may end up changing your budget as you give more attention to product design and planning. You should do a budget for each of the years included in the span of time covered by your strategic plan — but give particular attention to the first year of the time span.

Look at each of your products. Think about how much revenue the product might generate. Next, think about the expenses to run the program, such as human resources, facilities, equipment, special materials, marketing and promotions, etc.

Now think about what resources will be needed for central administration. Will you need a chief executive officer, assistants, etc?

(For additional information, see The Right Way to Prepare a Budget)

Example Operating Budgets

The following multi-year budget is an example to help you think about the types of resources you may need to achieve the goals in our plan and to help you think about how you’ll develop your operating budgets.

Note that the following budget includes 40% “fringe” — this is the extra amount budgeted to cover benefits, for example, medical insurance, social security taxes, retirement contributions, etc. You should find estimates
of the current fringe rate for salaries — or, you can budget specific amounts for each of the specific benefits.

Also note that the following is a rather simple budget format and should be modified to suit the needs and nature of your organization.

REVENUE:	Year 1	Year 2	Year 3
Product A Sales
Product B Sales
Earned Income
TOTAL REVENUE
EXPENSES
*Central Administration — Personnel:*
Chief executive officer (include yearly salary + 40% for benefits, etc.)
Administrative assistant (include yearly salary + 40% for benefits, etc.)
Travel
Staff development
Total Central Administration — Personnel Costs:
*Central Administration — Facilities:*
Rental of office space (central offices and 4 classrooms)
Office furniture
Utilities (electricity, water, heat)
Telephone (local & long-distance)
Maintenance and janitorial
Total Central Administration Facilities Costs:
*Central Administration — Equipment:*
Copier leasing
Computer, printers, networking
Training equipment, projectors, etc.
Vans (4 for student transportation)
Total Central Administration Equipment Costs:
Central Administration — Marketing and Promotions:
Media plan (brochures, newspaper ads, etc.)
Yearly meeting
Annual report
Build and maintain mailing list
Web page development and maintenance
Total Central Admin. Marketing & Promotions Costs:
*Other Expenses:*
General office supplies
Liability insurance
Subscriptions, books, etc.
Total Central Admin. Other Expenses/Costs:
Product A (a training package) — Personnel:
Program manager (include yearly salary + 40% for benefits, etc.)
Consultant: curriculum design (3 months full-time; 9 months 2 hours per day)
Consultants: teachers (4 full time and 4 half time)
Consultants: psychologist/counselor (1 full time)
Misc.
Total Product A Personnel Costs:
*Product B — Materials:*
GED testing packets (600)
Grading services from Dept of Human Services (600 students)
600 self-study guides
Support group facilitator guides
Total Product A Materials Costs:
TOTAL EXPENSES
TOTAL SURPLUS (OR DEFICIT) (= revenue minus expenses)

Your Budget Planning

The following table may need to be modified to suit the needs and nature of your organization. (See the advice and materials suggested in the previous section.)

REVENUE:	Year 1	Year 2	Year 3
Product A Sales
Product B Sales
Earned Income
TOTAL REVENUE
EXPENSES
*Central Administration — Personnel:*
Chief executive officer (include yearly salary + 40% for benefits, etc.)
Administrative assistant (include yearly salary + 40% for benefits, etc.)
Travel
Staff development
Total Central Administration — Personnel Costs:
*Central Administration — Facilities:*
Rental of office space (central offices and 4 classrooms)
Office furniture
Utilities (electricity, water, heat)
Telephone (local & long-distance)
Maintenance and janitorial
Total Central Administration Facilities Costs:
*Central Administration — Equipment:*
Copier leasing
Computer, printers, networking
Training equipment, projectors, etc.
Vans (4 for student transportation)
Total Central Administration Equipment Costs:
Central Administration — Marketing and Promotions:
Media plan (brochures, newspaper ads, etc.)
Yearly meeting
Annual report
Build and maintain mailing list
Web page development and maintenance
Total Central Admin. Marketing & Promotions Costs:
*Other Expenses:*
General office supplies
Liability insurance
Subscriptions, books, etc.
Total Central Admin. Other Expenses/Costs:
Product A (a training package) — Personnel:
Program manager (include yearly salary + 40% for benefits, etc.)
Consultant: curriculum design (3 months full-time; 9 months 2 hours per day)
Consultants: teachers (4 full time and 4 half time)
Consultants: psychologist/counselor (1 full time)
Misc.
Total Product A Personnel Costs:
*Product B — Materials:*
GED testing packets (600)
Grading services from Dept of Human Services (600 students)
600 self-study guides
Support group facilitator guides
Total Product A Materials Costs:
TOTAL EXPENSES
TOTAL SURPLUS (OR DEFICIT) (= revenue minus expenses)

Appendix G – Monitoring and Evaluation of Plan

Responsibilities and Frequencies for
Monitoring and Evaluation

Plan’s section, goals, etc.	Completion date	Respon- sibility	Written description of results to:
\| \|
\| \|
\| \|
\| \|
\| \|
\| \|

Key Questions While Monitoring Implementation of the Plan

(The following questions should be modified to suit the nature and needs of the organization.)

Monitoring and evaluation activities will consider the following questions:

1. Are goals and objectives being achieved or not? If they are, then acknowledge, reward and communicate the progress. If not, then consider the following questions.

2. Will the goals be achieved according to the timelines specified in the plan? If not, then why?

3. Should the deadlines for completion be changed (be careful about making these changes — know why efforts are behind schedule before times are changed)?

4. Do personnel have adequate resources (money, equipment, facilities, training, etc.) to achieve the goals?

5. Are the goals and objectives still realistic?

6. Should priorities be changed to put more focus on achieving the goals?

7. Should the goals be changed (be careful about making these changes — know why efforts are not achieving the goals before changing the goals)?

8. What can be learned from our monitoring and evaluation in order to improve future planning activities and also to improve future monitoring and evaluation efforts?

Additional questions:

Reporting Status of Implementation

Results of monitoring and evaluation will be in writing, and will include:

1. Answers to the “Key Questions While Monitoring Implementation of the Plan”

2. Trends regarding the progress (or lack thereof) toward goals, including which goals and objectives

3. Recommendations about the status

4. Any actions needed by management

Procedure for Changing the Plan

Regarding any changes to the plan, write down answers to the questions:

1. What is causing changes to be made?

2. Why the changes should be made (the “why” is often different than “what is causing” the changes).

3. What specific changes should be made, including to goals, objectives, responsibilities and timelines?

Reminders:
Manage the various versions of the plan (including by putting a new date on each new version of the plan).

Always keep old copies of the plan.

Appendix H – Communicating the Plan

Note that certain groups of stakeholders might get complete copies of the plan, including appendices, while
other groups (usually outside of the organization) might receive only the body of the plan without its appendices.

Consider:
1. Every board member and member of management should get a copy of the plan.
2. Consider distributing all (or highlights from) the plan to everyone in the organization. It’s amazing how even the newest staff member gains quick context, appreciation, and meaning from review of the strategic plan.
3. Post your mission and vision and values statements on the walls of your main offices. Consider giving each employee a card with the statements (or highlights from them) on the card.
4. Publish portions of your plan in your regular newsletter, and advertising and marketing materials (brochures, ads, etc.).
5. Train board members and employees on portions of the plan during orientations.
6. Include portions of the plan in policies and procedures, including the employee manual.
7. Consider copies of the plan for major stakeholders, for example, funders/investors, trade associations, potential collaborators, vendors/suppliers, etc.

(For additional assistance, see Writing and Communicating the Plan.)

This plan will be widely communicated including through use of the following approaches:

1. _____________________

2. _____________________

3. _____________________

4. _____________________

(etc.)

For the Category of Strategic Planning:

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.

January 18, 2022February 8, 2023

Starting and Understanding Your Nonprofit

A Group of People Having a Meeting in the Office

Free Nonprofit Micro-eMBA Module #2: Starting and Understanding Your Nonprofit

Much of this program is based on materials adapted from the Nonprofit Capacity Building Toolkit(SM)
particularly the guidebook, Field Guide to Developing and Operating Your Nonprofit Board of Directors.

This learning module is in the nonprofit organization development program. However, this module can also be used by anyone as a self-study exercise to learn more about starting and understanding a nonprofit organization.

Sections of This Module Include the Following

Introduction
Outcomes
Materials for Review
Suggested Topics for Reflection and Discussion
Activities to Build Systems and Practices
Assessments
Tracking Open Action Items

INTRODUCTION

This module is useful to entrepreneurs who are thinking about starting a nonprofit, or have already started their nonprofit and what to understand more about what they’re really doing. The module also will be useful to practitioners/consultants who want a broader understanding about nonprofit organizations, including how they are started. This understanding for practitioners/consultants can help them provide more effective services to clients and establish stronger credibility with leaders and managers in the nonprofit workplace.

Starting a nonprofit organization requires careful thought and planning about your new organization. However, you can’t effectively manage an organization if you can’t effectively manage yourself. So in this module, you are first guided through some careful examination about yourself as an entrepreneur (and you are an entrepreneur if you are starting an organization). If you decide you still want to start a nonprofit, then you’ll consider various options to “jump start” your organization, including fiscal sponsorship and using an incubator service. Next, you are guided through a variety of checklists to help you legally register your nonprofit in the particular form you desire, for example, as a nonprofit corporation, as a nonprofit that is exempt from paying federal and other taxes, etc.

Maintaining a healthy nonprofit organization requires healthy practices in governance and management. This nonprofit organization development program is geared to develop those healthy practices in your nonprofit. To truly understand and be effective at these practices, it helps greatly if board members, executive directors and staff have some basic understanding of the overall organizational “system” of their nonprofit organization, including its common traits, dimensions, “personality” and life cycles. This is not just an academic exercise. Too often, people don’t really understand the overall structures in their nonprofit. When problems occur, they only see the specific events, and not the larger structures that cause the behaviors that cause the events. To effectively resolve problems, you have to change the structures — not just react to events.

The importance of this understanding of organizations is evident when you realize that many graduate business training programs start out with an overview of the organizational system, often in a course called, for example, “Organizational Theory“.

OUTCOMES

Learners who complete this module will achieve the following outcomes:

Starting Your Nonprofit:

Clarify What You Mean by “Nonprofit”
Decide if You Are an Entrepreneur
Decide If There Really is a Need for New Nonprofit
Decide If You Should Start with Fiscal Sponsorship
Get Guidelines to Incorporation and Tax-Exemption

Understanding Your Nonprofit:

Know How to Classify Your Nonprofit With the IRS
Recognize Key Roles in Your Nonprofit
Learn Basic Structures in Your Nonprofit
Recognize the Life Cycle of Your Nonprofit
Classify the Culture of Your Nonprofit
Verify Your Nonprofit Meets Regulations

MATERIALS FOR REVIEW

The following materials will help you address each of the topics and learning activities in this module. If your time is very limited, then you can still benefit from scanning the resources and questions referenced from the following links.

Starting Your Nonprofit (optional to those in already established
nonprofits)

Considerations About You

Many people are so excited about starting a new venture, that they forget about one of the biggest challenges — getting themselves ready first. So before undertaking the steps to start a new business, they first should think about:

There are certain traits of successful entrepreneurs. Am I really an entrepreneur?
What are my true passions? How can I retain those in my new venture?
What is my stress level now? Can I take much more?
What are my personal strengths and weaknesses. How can I use my strengths to strengthen my weaknesses?
Are there alternatives that I could do right now?
Are my personal finances in shape before I go to investors?

The following article will help you to answer each of these very important questions.
Entrepreneurs — Are You Personally Ready to Start a New Venture?

Getting On to Starting Your Nonprofit

Understanding Your Nonprofit Organization

/organizations/nonprofits.htm#anchor247079

Basic Overview of Nonprofit Organizations

Considerations About You

1. What are at least 3 characteristics of successful entrepreneurs? Are you an entrepreneur? How did you conclude that about yourself? (See Are You Really an Entrepreneur?)

2. Are your finances in shape to begin planning and starting a new organization? Are you sure? (See Are Your Personal Finances in Shape?)

3. How will you manage the stresses involved in planning and starting a new organization, product or service? (See How Will You Manage the Stresses Involved?)

Considerations About Your Idea

1. Is there really a need for your new organization, product
or service? How do you know? (See Is There Really a Need for the Product or Service
in Your Organization?)

2. What type of organization would you start, if it’s a new
organization? (See What Type of New Organization, Product or Service
Will You Be Starting?)

3. What are at least 3 of the risks involved for you? (See What Are the Risks Involved?)

4. What planning and financial skills do you have? Where might you need to improve? (This eMBA has upcoming modules about planning and finances.) (See What Planning and Financial Skills Do You Need?)

5. So what is a summary of your plans for your new organization, product or service? (See What Are Your Initial Plans?)

6. What expertise, or human resources, will you need? How might they be organized? (See What Human Resources Will Your New Organization, Product or Service Need?)

7. How much money might you need for startup? (See How Much Money Will You Need?)

8. Might you draft a first-draft of a basic strategic plan or business plan now? There can be business plans for a nonprofit. (This eMBA has upcoming modules about strategic planning and about product and service planning.) (See Write a Strategic Plan or Business Plan Document?)

Starting/Registering a New Nonprofit

1. What is a nonprofit organization? (See First Things First — What Do You Mean by “Starting a Nonprofit”? and What is a Nonprofit?)

2. What does the phrase “fiscal sponsorship” mean? In what situations might a fiscal sponsor be helpful? (See Consider Fiscal Sponsorship.)

3. What is a business incubator? (See Nonprofit Incubators.)

4. What are the benefits of incorporating a nonprofit? (See First Things First — What Do You Mean by “Starting a Nonprofit”?)

5. What does the phrase “tax-exempt” typically mean?
(See First Things First — What Do You Mean by “Starting a Nonprofit”?) How does a nonprofit obtain tax-exempt status? (See Table of Reminders for Registering Your New Nonprofit.)

6. Do the terms “tax-exempt” and “tax deductible” mean the same thing? (See First Things First — What Do You Mean by “Starting a Nonprofit”?)

7. What does the IRS classification “501(c)(3)” mean?
(See First Things First — What Do You Mean by “Starting a Nonprofit”?)

8. When is a lawyer often needed during the process of starting a nonprofit? (See Do You Need a Lawyer to Start Your Nonprofit?)

9. What are articles of incorporation? Bylaws? (See Table of Reminders for Registering Your New Nonprofit.)

10. To which do you file for incorporation — the IRS or your state? To which do you file for tax exemption — the IRS or your state? (See Table of Reminders for Registering Your New Nonprofit.)

Understanding the Nonprofit Organization

1. What is a basic definition of an organization? An organization gets ongoing direction primarily from mission, vision and values. That’s why it’s so important for boards, management and staff to understand these concepts and how they apply to their nonprofit. What is a mission? Vision? Values? (See Basic Definition of Organization (which includes some optional reading about systems thinking).)

2. It helps a great deal to think of organizations and programs as systems, for example, when planning programs and evaluations or managing major changes in your organization. What is a system? (HINT: Think about inputs, processes, outputs and outcomes.) How is a system different than a pile of sand? What are some common characteristics of systems. How is an organization like a system? (See Basic Definition of Organization (which includes some optional reading about systems thinking).)

3. What metaphor do you prefer to describe organizations? Machines? Organisms? Persons? Groups? Families? Others? (See Various Ways to Look at Organizations.)

4. Organizations have certain dimensions and concepts in common. When designing, organizing and/or re-organizing organizations, it helps to be aware of these dimensions and concepts. Name at least three of the dimensions of organizations. Name at least three key concepts to consider when designing organizations. (See Common Dimensions in Organizations and Key Concepts in the Design of an Organization.)

5. The concept of culture is VERY important. Each organization has its own unique culture, particularly in nonprofits. When managing a nonprofit, it’s important to acknowledge what values are really important to the organization, what behaviors typically occur and what behaviors are really treasured. Lack of understanding about culture is one of the major reasons that organizational change efforts fail. Describe the concept of organizational “culture”. (See Organizational Culture (the “personality” of the organization).)

6. People — like most other systems — go through life cycles. When trying to understand, manage or help a system, it’s very important to you know what life cycle the system is in. This is true for organizations as well. Organizations have life cycles. This is often forgotten when trying to work with organizations. Describe the concept of organizational life cycle. (See Life Cycles of Organizations.)

7. What is the “new paradigm”? What are several of the changes that might be expected in this new paradigm? What major, overall driving forces are causing this new paradigm? (See New Paradigm in Management.)

8. What are the seven key roles in a nonprofit (as listed in the materials for review)? (See Key Roles.)

9. What are the three major sections of nonprofit personnel (as listed in the materials for review) (See Three Aspects of Nonprofit Structure.)

10. What is devolution? (See Current Major Challenge: Devolution.)

11. How would you describe the typical nature of a small nonprofit organization? (See Unique Nature and Struggles of Traditional Small Nonprofits.)

ACTIVITIES TO BUILD SYSTEMS AND PRACTICES

Learners are strongly encouraged to complete the following activities, and share and discuss results with peers, board members, management and staff, as appropriate.
As you proceed through the following activities, be sure to note any incomplete actions in the Action Item Planning List.
If you are operating in an already established nonprofit, you can skip to the subsections titled “Understanding Your Organization …” below.
Note that the information in the subsections “Understanding Your Organization …” is enough to give you a basic sense of your organization, including its structure and basic parts, its current (or desired) personality, and feedback among the basic parts. You’ll soon learn a great deal more about your nonprofit as you progress through the remaining modules in this program.

Starting/Registering Your New Nonprofit

1. Write a five- to ten-sentence description of the charitable purpose of your nonprofit. This is the mission statement of your new nonprofit. What is the nature of your organization’s services, e.g., advocacy, arts, civic, cultural, health, education, human services, or other? (For assistance, see Writing/Updating a Mission Statement.)

2. Find out the minimum number of people required to be on a nonprofit, corporate board of directors in your state. You might call, for example, your Attorney General’s office, States Attorneys office, etc. Recruit at least this number of people to join your board. (For assistance, see Overview of Board Roles and Responsibilities, Joining a Board and Recruiting Board Members.)

3. Recruit expertise to help you get your nonprofit started. A great place to start is by getting references from other small nonprofits. Don’t forget about finding an insurance agent. You’ll probably soon need liability and property insurance. (For assistance, see Getting a Bank and Banker, Joining a Board, Hiring Consultants, Getting and Using a Lawyer, Getting and Using Accounting Services and Insurance for Nonprofits.)

4. If you plan to incorporate your nonprofit, draft a set of Articles of Incorporation (or whatever other type of legal charter is required, for example, a constitution, Articles of Association, etc.). (For assistance, see Articles of Incorporation.)

5. Draft a set of bylaws (bylaws specify how your board will govern the organization and how it will be configured, for example, with an executive director, etc.). (For assistance, see Corporate Bylaws.)

6. If you plan to file for exemption from federal taxes, contact the IRS to obtain the necessary forms. Begin completing the forms when they arrive. (For assistance, see Getting Tax-Exempt Status.)

7. Make a draft (probably a very rough draft at this point) of a plan that includes the top 5-8 goals for the nonprofit to accomplish over the next year. Think about what resources are needed to achieve these goals. (This is a very rough draft of a strategic plan.) Write down the costs for the resources and group them in major categories including: personnel, computers, office supplies, facilities (rent, utilities, etc.) and any other major groups of costs. This is a very rough draft of a yearly budget. You don’t have to go into great detail at this point. (For assistance, see Basic Guidelines for Successful Planning Process and Basic Description of Strategic Planning.)

8. Hold a meeting of your board of directors. In the meeting, members should review the drafts of the Articles, bylaws, application to the IRS for tax-exempt status, strategic plan and budget. Members should vote to approve the drafted items. Members should also vote to select officers. Your state may require that boards have certain officer roles, for example, Chair/President, Secretary and Treasurer. (For assistance, see Basic Sample Board of Directors Meeting Minutes.)

9. Make the necessary filings for incorporation (probably to your local Secretary of State) and tax-exempt status (to the Internal Revenue Service).

10. On the Action Item Planning List, make note to follow up on the following actions.
a) When you get notification from the IRS that you’ve obtained tax-exempt status, contact the appropriate state department to seek exemption from state taxes. (These exemptions vary across states.)
b) When you get notification from the IRS that you’ve obtained tax-exempt status, contact the local tax assessor to seek exemption from property taxes. (This exemption varies across states and localities, as well.)
c) Contact your local city hall to identify if you need permit or license to solicit in your city.
d) Contact your local post office to obtain a bulk mail permit.

e) It may be useful to obtain an employer identification number at this time, so you’re ready if and when you hire employees.
f) Start obtaining facilities in which to operate, whether in your home, an office, etc. The link Setting Up an Office may help you.
g) Begin looking into computer equipment you may need. The link Computers, Internet & Web may help you.

Understanding Your Nonprofit Organization — Its Logic Model

1. Diagram a logic model of your organization, including its inputs, processes, outputs (tangible results) and outcomes (impacts on clients). (Note that this systems view is sometimes called an “outcomes model”, which is very useful when designing outcomes-based evaluations or writing proposals in grant applications.) Fill in the table in the Guidelines and Framework for Designing Basic Logic Model

2. If possible, diagram a basic systems view of your programs, including inputs, processes, outputs (tangible results) and outcomes (impacts on clients). (Note that we’ll soon give more attention to programs, including their design and marketing, in an upcoming learning module.) Fill in the table in the Guidelines and Framework for Designing Basic Logic Model

Understanding Your Nonprofit Organization — Its “Personality”

1. Write a half-page description of the culture of your organization. Include what values your organizations holds dear and what values you see reflected by the behaviors in your nonprofit. Note that if your nonprofit is still fairly new, you can still benefit from this activity by describing what you’d like to see as the “personality” of your organization. This activity will be useful later on during strategic planning when writing values statements. (For assistance, see Organizational Culture (the “personality” of the organization) and Unique Nature and Struggles of Traditional Small Nonprofits.)

Understanding Your Nonprofit Organization — Its Life Cycle

1. Write a half-page description of the life cycle of your organization. Is it in Birth? Youth? Midlife? Maturity? Include what characteristics you observe that lead you to conclude that your organization is in that life cycle. Note what life cycle will be next for your organization. Include description of any challenges that you might expect when you go through the next life cycle change. (For assistance, see Life Cycles of Organizations.)

Understanding Your Nonprofit Organization — Its Communications

1. In the materials for review, you learned that organizations are systems and that for systems to thrive, their needs to be continued and effective feedback (communications) between its major parts. What can you do to ensure effective communications between the key roles in your nonprofit, including clients, board members, board committees, board chair, executive director, staff and volunteers? Effective communications requires more than good intentions. What specific structures can you use, for example, consider reports from the director, meeting minutes, staff meetings, etc. (For assistance, see Basics of Internal Communications, Communications (Writing) and General Recommendations to Improve Communications Skills.)

ASSESSMENTS

Assessments for New or Already-Established Nonprofits

Use any or all of the following assessments to evaluate the health of your new or already established nonprofit organization.

1. Answer the questions in the “Legal Indicators” in the Checklist of Nonprofit Indicators. Have you completed all of the necessary activities to conform to U.S. regulations (for example, to maintain tax exempt status)?

Additional Assessments for Already-Established Nonprofits

1. If you are just starting your nonprofit, the following assessments may be advanced at this point. However, if you are from an already-established nonprofit, then you might apply some or all of the following assessments:

TRACKING OPEN ACTION ITEMS

2. If you have questions, consider posing them in the national, free, online discussion group hr.com, which is attended by many human resource and organization development experts.

(Learners in the nonprofit organization development program can return to the nonprofit organization development program.)

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.

January 18, 2022September 22, 2022

Staffing and Supervision of Employees and Volunteers

Young business woman holding a tablet looking at the laptop screen of her staff

Free Nonprofit Micro-eMBA Module #10: Staffing and Supervision of Employees and Volunteers

Much of this program is based on materials adapted from the Nonprofit Capacity Building Toolkit(SM). This module is in the organization development program. However, this module can also be used by anyone as a self-study exercise to learn more about staffing and supervising employees and volunteers. Much of the content of this module was adapted from the guidebook, Field Guide to Leadership and Supervision for Nonprofit Staff.

Sections of This Module Include the Following

Introduction
Outcomes
Materials for Review
Suggested Topics for Reflection and Discussion
Activities to Build Systems and Practices
Assessments
Tracking Open Action Items

INTRODUCTION

Staffing and supervision are two of the most critical functions of a manager. Each of the functions include various other activities, as well.

Basically, staffing is:
a) Deciding what human resources are needed, ideally in terms of knowledge, skills and abilities regarding specified roles, jobs and tasks (ideally these roles are determined on the basis of strategic planning and are defined in terms of competencies and/or on job descriptions)
b) Recruiting the necessary human resources (sourcing, placing ads, etc.)
c) Considering outsourcing to hire outside expertise
d) Screening job candidates (interviewing, testing, etc.)
e) Selecting candidates (via job offers)
f) Equipping new hires (via orienting, training, facilities, assignments, etc.)

Basically, supervising is overseeing the progress and productivity of direct reports, often by:
a) Mutually setting goals with direct reports
b) Supporting conditions for their motivation
c) Observing performance and giving feedback and other forms of guidance
d) Conducting regular performance appraisals/reviews
e) Addressing performance problems
f) Ensuring sufficient rewards

The activities of staffing and supervising are very similar when applied to employees and volunteers. Differences are pointed out in specific sections of the information below. In both cases (volunteers and employees), staffing and supervision should be carried out as part of an overall performance management system. Staffing and supervising should be carried out according to carefully designed and approved personnel policies in the workplace.

This module provides materials and guidelines to understand staffing and supervision, along with setting up basic systems and processes in the organization in order to carry out activities in a legal and effective manner.

NOTE ABOUT THE LARGE SIZE OF THIS MODULE: This module is one of the largest in the program. Learners who have very limited time schedules might first “pick and choose” which subtopics they want to review before they proceed through this module in its entirety. Learners are encouraged, though, to print out the entire Free Basic Guide to Leadership and Supervision for reference in the future. (NOTE: The guide is quite large, so wait up to a minute or so for it to load.)

NOTE ABOUT BOARD COMMITTEES: Consider establishing a Board Personnel Committee [in the case of corporations!] to review and help guide implementation the information in this learning module. Major activities and goals from this learning module could be incorporated in that Committee’s Committee Work Plan.

OUTCOMES

Supervising Staff, Including How to:

Define New Job Roles
Recruit Job Candidates
Screen Applicants
Orient New Employees
Delegate to Employees
Ensure Strong Performance
Fire Employees
Compile Personnel Policies and Samples
Evaluate Your Supervisory Practices

Supervising Volunteers, Including How to:

Design Your Volunteer Program
Decide Where Volunteers Can Help
Recruit and Screen Volunteers
Ensure Strong Performance
Recognize Common Risks and Liabilities
Evaluate Your Volunteer Management Practices

MATERIALS FOR REVIEW

The following materials will help you address each of the topics and learning activities in this module.

Basic Overview of Staffing and Supervision of Employees

Read Free Basic Guide to Leadership and Supervision — particularly the sections:

Introduction to Management and Supervision

Read the following sections of the “Free Basic Guide to Management and Supervision”:

Staffing

Read the following sections of the “Free Basic Guide to Management and Supervision”:

Employee Training

Read the following sections of the “Free Basic Guide to Management and Supervision”:

Employee Performance Management

Read the following sections of the “Free Basic Guide to Management and Supervision”:

Personnel Policies

Read the following sections of the “Free Basic Guide to Management and Supervision”:

Experience of a First-Time Supervisor

Read the following sections in the Free Management Library topic “Basic Overview of Supervision”:

Staffing and Supervision of Volunteers

Read at least 2 articles in each of the following topics:

Introduction to Role of Supervisor

(See What is “Supervision”? What Do Supervisors Do? and One Definition of Supervision.)
1. What is a supervisor? How does that role differ from the general role of management?

2. What are the typical activities carried out by a supervisor?

3. What are some of the unique struggles and stresses of a first-time supervisor?

4. What are some of the roles of a supervisor?

5. Does a supervisor oversee the progress and productivity only of entry-level workers only — that is, can supervision occur at all levels of management?

Staffing
Defining Job Roles (see Defining a New Job Role)
1. How should new job roles be defined? What is the relationship between results of strategic planning and staffing?

2. What is a job description? How should it be developed? What should be included in a job description?

3. What factors are considered when determining the cost of a new hire? What is fringe?

4. How is a job description kept up-to-date?

5. What are at least two primary uses of a job description?

6. What is the relationship between a job description and a performance review?

Hiring (see Hiring (Advertising, Screening and Selecting))
1. What should be looked for when screening resumes?

2. When interviewing, should you ask different question to each candidate? Should you ask open-ended or yes/no questions — why?

3. What are some useful open-ended questions to ask?

4. What matters should be in an offer letter?

5. What is the purpose of a personnel file? What goes in it?

Building Teams (see Building Teams)
1. What is the importance of a team in the workplace — particularly in the future workplace?

2. Name at least three of the four kinds of teams.

3. What are the five stages of team development? What are the characteristics of each?

4. What is the first guideline for building a team? (HINT: Think about “SMARTER”.)

5. What are some considerations when determining the membership of a team?

6. What does the “structure” of a group mean?

7. What should be communicated to the group in its first meeting?

8. Name at least eight of the 12 guidelines for team building.

Employee Training
Orienting Employees (see Orienting New Employees)
1. What should be communicated in a welcome letter (sent to the employee before they begin employment)?

2. What are some of the activities to conduct with the employee during the first meeting after they have started employment?

3. Name at least four practices to help new hires learn about the organization.

4. What should be done with the new hire regarding the employee manual?

5. How often should the supervisor meet with the new employee during the first six weeks or so?

Job Training (see Job Training)
1. Name at least four of the six different reasons/situations to conduct employee training.

2. What are the four basic types of employee training?

3. Coaching is a common type of employee training. The process can mean many things to many people (coaching has become a major service to organizations and includes a wide variety of approaches). What the four basic steps (outlined in the reading) for conducting employee coaching?

4. What are the four common pitfalls in employee training?

5. What is a training goal? Learning objective?

6. What are some methods to ensure that the design and implementation of employee training are highly effective?

Employee Performance Management
Setting Goals (see Setting Goals)
1. What is one of the common problems that new supervisors experience regarding employee performance management?

2. What is the first step toward overcoming this problem?

3. Why do some people dislike the use of goals?

4. Name at least three of the four advantages of using goals.

5. What are the four types of gaps that goals can be used to address?

6. What is a performance gap? Growth gap? Opportunity gap? Training gap?

7. What can be done so that supervisors and employees have more “buy-in” to goals?

8. What does the acronym SMARTER mean — that is, what does each letter stand for?

Supporting Employee Motivation (see Supporting Employee Motivation)
1. Name at least four of the six myths about motivating employees.

2. What is the first step in motivating employees? (HINT: think about yourself.)

3. What must be done regarding the goals of the organization and the goals of employees?

4. Is each employee motivated by the same thing(s) as other employees?

5. Name at least eight of the 14 steps that you can take to motivate employees.

Observing and Giving Feedback (see Observing and Giving Feedback)
1. When providing feedback, focus on the ____ rather than the person.

2. Own the feedback — use __ statements.

3. Why should people be careful with giving advice?

4. Name at least six of the nine guidelines regarding observing employee behavior and giving advice.

Conducting Performance Appraisals/Reviews (see Conducting Performance Appraisals/Reviews)
1. What are some of the ill effects from not doing regular performance reviews?

2. What are some of the law-related requirements of performance reviews? (HINT: Think about the points made by Patricia King in Performance Planning and Appraisal — these points were included in your reading for this learning module.)

3. What items of information should be included in the standard performance appraisal form?

4. When should performance reviews be conducted?

5. What is the relationship between the performance review and the job description?

6. What should not be discussed in the performance review and discussion?

7. Always address employee _____, not characteristics of their personalities.

8. What is the best guideline to ensure that the guideline in question 7 is always followed?

9. What are some guidelines for carrying out the performance appraisal meeting/discussion?

10. Nothing should be a surprise for the employee in the performance review meeting when discussing employee’s performance. Why is this true?

Addressing Performance Problems (see Addressing Performance Problems)
1. When should the supervisor almost always convey to the employee that the employee’s behavior is a problem in the workplace?

2. When determining if an employee has a performance problem, consider the employee’s ____, not their ____.

3. When you first convey a performance problem to an employee, what two points should you convey at a minimum?

4. What might be some special circumstances to consider when addressing an employee’s performance problem?

5. What should you do right after the first meeting about the employee’s performance issue?

6. If a supervisor sees a performance problem soon after the first occurrence and reporting to the employee, what should the supervisor do? (HINT: Think about what should be said and what should be written down.)

7. What is the relevance of personnel policies when addressing performance problems?

Firing Employees (see Firing Employees)
1. What is the relevance of personnel policies when firing an employee?

2. You should consider firing an employee (for a performance problem) only if you have done at least four specific activities. What are they and in what sequence should they occur?

3. What should be included in a letter of termination to an employee?

4. What should be conveyed when meeting with the employee who is to be terminated?

5. What should be done right after the meeting with the employee?

Personnel Policies
Developing Personnel Policies (see Developing Personnel Policies)
1. What is a personnel policy?

2. Why is it important to develop them?

3. Why is it important to always consult a lawyer (who is well versed in current employee laws) when developing personnel policies?

4. Note that if management’s behaviors do not conform to the personnel policies, courts will consider the related policies to be superseded by the behaviors. True?

5. How might an organization train employees about its personnel policies?

Developing an Employee Manual (see Developing an Employee Manual)
1. What is an employee manual (or personnel policies handbook)?

2. What is at least one use of this type of manual?

3. In the case of a corporation and its board of directors, what is the role of the board of directors regarding the personnel policies?

4. What points should be included in description of the manual to the employee, that is, what points might be included in the wording on the cover of the manual?

Sample List of Personnel Polices (see Sample List of Personnel Policies)
1. Name at least five of the topics that might be addressed in personnel policies regarding work schedules.

2. Name at least two of the topics that might be addressed in personnel policies regarding hiring practices.

3. Name at least five of the topics that might be addressed in personnel policies regarding compensation.

4. Name at least five of the topics that might be addressed in personnel policies regarding payroll information and timekeeping procedures

5. Name at least five of the topics that might be addressed in personnel policies regarding benefits.

6. Name at least five of the topics that might be addressed in personnel policies regarding compensation.

7. Name at least five of the topics that might be addressed in personnel policies regarding performance issues.

Staffing and Supervising Volunteers

Note that the vast majority of information about staffing and supervising employees is also relevant to staffing and supervising volunteers, other than matters of job offers, compensation and benefits, and personnel policies. Therefore, the learner who is most interested in staffing and supervising volunteers would benefit from also reading the about staffing and supervising employees in the above section “materials for review “.
1. What is a the legal definition of a “volunteer”?
(See Considerations in Establishing or Modifying Volunteer Management Systems.)

2. What are the basic components of a volunteer program? What do you need to consider to set up a program? (See Considerations in Establishing or Modifying Volunteer Management Systems.)

3. What is the role of a volunteer program manager? What are some of their responsibilities? (See Role of Volunteer Managers.)

4. How is a staffing analysis conducted? What are some of the key considerations? (See Staffing Analysis (Deciding Whether Volunteers Are Needed).)

5. Name three of the legal and risk considerations that must be addressed when using volunteers in an organization. (See Legal and Risk Considerations.)

6. Name at least five areas/topics in which policies are typically developed when using volunteers. (See Policies and Procedures.)

7. Name at least three of the typical elements of a volunteer job description. (See Volunteer Job/Task Descriptions.)

8. Name at least two of the major activities that are involved in recruiting volunteers? (See Volunteer Recruitment.)

9. Name at least three of the major types activities that are involved in screening volunteers? (See Screening Volunteers.)

10. Name at least five of the kinds of activities that volunteers might be oriented and trained about. (See Orienting and Training Volunteers.)

11. Name at least four of the types of activities that are usually included in the overall activity of supervision. (See Supervising Volunteers.)

12. What are some ways to reward volunteers? (See Supervising Volunteers.)

13. Name at least two approaches that can be used to help avoid, or address, conflict between staff and employees. (See Volunteer and Staff Relations.)

ACTIVITIES TO BUILD SYSTEMS AND PRACTICES

Learners are strongly encouraged to complete the following activities, and share and discuss results with peers, board members, management and employees, as appropriate. As you proceed through the following activities, be sure to note any incomplete actions in the Action Item Planning List.

Staffing and Supervision of Employees

1. Do you have job descriptions for all employees? Do they include titles, qualifications, responsibilities and whom the role reports to? Dates on the forms?

2. Do you have a personnel policies handbook for all employees, and have all employees reviewed it and signed a form indicating they’ll comply with the policies? Has the board approved the handbook with its policies?

3. How do you ensure adequate and fair compensation for each of the roles in your organization? Are your practices described in your personnel policies?

4. How do you ensure your employees are oriented to your organization when they are hired? Are these practices described in your personnel policies?

5. How do you ensure that you’re effectively delegating to employees?

6. Do you have a written policy about how you conduct regular, formal performance reviews? Are your practices described in your personnel policies?

7. How do you ensure all management personnel are completely familiar with personnel policies? (It’s critical that they be very familiar with the policies — their behavior can be interpreted as the de facto policies of the organization.)

8. Do you have a policy about how employees are fired? Are your practices described in your personnel policies?

9. Update your organization chart with all roles and their titles in the organization.

10. Make a list of any personnel policies your organization needs and write down what you’d generally like the policies to address and how. Discuss this with your board.

11. Provide your personnel handbook (and a list of any new policies you might need) to a professional for review, and arrange to have all appropriate changes made as soon as possible. Arrange board review and approval of the policies, and training to all employees about any changes to the policies.

12. Draft an action plan with specific goals needed to improve your supervisory skills. Add how you will accomplish each goal and when.

Staffing and Supervision of Volunteers

In many aspects, staffing and supervision of volunteers is similar to staffing and supervision of employees. Differences might be in matters of employee benefits and compensation, career planning and development, delegation versus work direction, and reward systems.
1. Do you have job descriptions for all volunteers? Do they include titles, qualifications, responsibilities and whom the role reports to? Dates on the forms?

2. Do you have a personnel policies handbook for all volunteers, and have all volunteers reviewed it and signed a form indicating they’ll comply with the policies? Has the board approved the handbook with its policies?

3. How do you ensure legal and ethical treatment for each of the roles in your organization? Are your practices described in your personnel policies?

4. How do you ensure your volunteers are oriented to your organization? Are these practices described in your personnel policies?

5. How do you ensure that you’re effectively delegating to volunteers?

6. Do you have a written policy about how you conduct regular, formal performance reviews? Are your practices described in your personnel policies?

8. Do you have a policy about how volunteers are fired? Are your practices described in your personnel policies?

9. Update your organization chart with all roles and their titles in the organization.

10. Make a list of any personnel policies your organization needs and write down what you’d generally like the policies to address and how. Discuss this with your board.

12. Draft an action plan with specific goals needed to improve your supervisory skills. Add how you will accomplish each goal and when.

ASSESSMENTS

1. Answer the questions about “Human Resource Indicators” in the Checklist of Nonprofit Indicators. List an action plan to complete items suggested by the audit, but not done by your organization.

2. Also see Assessing Your Volunteer Management Practices.

REMINDERS FOR THOSE IN THE ON-LINE DEVELOPMENT PROGRAM

1. Are you exchanging feedback with others about what you’re learning in this program?

2. Are you sticking to your study schedule for this program?

3. Are you practicing your basic skills in management and leadership, including in problem solving and decision making, planning and meeting management?

4. Are you communicating throughout your organization by using your skills in internal communications?

5. Are you managing yourself? How many hours a week are you working? Are you noticing any signs of stress? If so, what are you doing about it?

6. One of the ways you might be able to tell if you’re stressed out and/or losing perspective might be whether you’re tracking details or not. Are you using the action item list referenced above?

7. Are you reflecting on learnings from past modules and how they build on the learning in this module? For example, are you seeing your organization from a systems view, as explained in the module “Starting and Understanding Your Nonprofit?”

TRACKING OPEN ACTION ITEMS

2. If you have questions, consider posing them in the national, free, online discussion group hr.com, which is attended by many human resource and organization development experts.

(Learners in the nonprofit organization development program can return to the nonprofit organization development program.)

For the Category of Supervision:

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.

January 18, 2022September 20, 2022

Role of Nonprofit Chief Executive Officer

Smiling-woman-writing-notes-tablet-device

Free Nonprofit Micro-eMBA Module #3: Role of Nonprofit Chief Executive Officer

This learning module is in the nonprofit organization development program. However, this module can also be used by anyone as a self-study exercise to learn more about the role of the nonprofit chief executive officer.) Much of the content of this module was adapted from the guidebook, Field Guide to Leadership and Supervision for Nonprofit Staff.

Sections of This Module Include the Following

Introduction
Outcomes
Materials for Review
Suggested Topics for Reflection and Discussion
Activities to Build Systems and Practices
Assessments
Tracking Open Action Items

INTRODUCTION

In an incorporated nonprofit organization, the chief executive officer (often called the executive director) is the singular organizational position that is primarily responsible to carry out the strategic plans and policies as established by the board of directors. The chief executive officer reports to the board of directors. This learning module provides an overview of the position of executive director, including major roles, responsibilities and functions.

The goal of this module is to provide sufficient overview to gain strong, initial perspective on the role of executive director, particularly when helping to establish the board of directors. The executive director should have at least basic understanding of all of the systems and practices conveyed across the various learning modules in this program. Therefore, this learning module does not go into great depth about each of the particular systems and practices managed by the executive director — rather, this module relies on the rest of this program to provide that depth of information.

NOTE ABOUT THE ORDER OF MODULES (AND SOME DUPLICATION WITH UPCOMING MODULE ON BUILDING BOARDS): The board of directors is legally charged to govern a nonprofit corporation. Therefore, it is often common to start training programs with an overview of the board of directors. However, in this program, this learning module about the role of the chief executive is presented before
the learning module about boards of directors.

The reason for this order of modules is as follows. Frequently nonprofits are started by someone with a strong vision for a new service to the community. That person often goes on to become the first executive director of the new nonprofit. Typically, that person also takes a very strong role (often the leading role) in the initial organization and development of the board of directors. Therefore, modules in this program are organized to help the founder (and often the first executive director) maintain clear perspective about the roles of executive director and board of directors before going on to focus attention on building the board of directors.

NOTE ABOUT BOARD COMMITTEES: If you are starting a nonprofit and using this program to do so, then you will soon be building your board. When you do, consider establishing a Board Personnel Committee to review and help guide implementation of the information in this learning module — that Committee could be very useful to help develop and support the CEO. Major activities and goals from this learning module could be incorporated in that Committee’s Committee Work Plan.

OUTCOMES

Learners who complete this module will achieve the following outcomes:

Learn What a Chief Executive Officer Is
Understand Major Functions of CEO
Understand Core Knowledge and Skills for CEO Role
Be Prepared for Building Your Board
Set Basis for Strong Board-Staff Relationships
Avoid “Founder’s Syndrome”

MATERIALS FOR REVIEW

The following materials will help you address each of
the topics and learning activities in this module.

Orientation to Chief Executive Role

Chief Executive Role — particularly the sections:

Early, Basic Preparation for Building a Board

Mention is made to boards of directors at this point because chief executive officers of new organizations are often the people who organize and help develop the original board of directors. The board can be more fully developed in an upcoming module about boards of directors in this program.

Overview of Board Roles and Responsibilities — particularly read each of the sections:

Early, Basic Preparation for Working With a Board

Optional: “Founder’s Syndrome”

Too often, chief executives who also are the founders of the organization, get the organization into trouble when the chief executive struggles to run the organization according to the mission of the organization, rather than according to the personality of the founding chief executive. Review of the following guide can give the new chief executive a solid impression of “founder’s syndrome” and how to avoid it. It’s particularly wise for the chief executive to highlight sections of the guide to share with board members in a board meeting, thus the board members can help the chief executive to avoid founder’s syndrome behavior — because founder’s syndrome is really an organizational problem, not a personal problem of the founder.
Founder’s Syndrome — How Organizations Suffer — and Can Recover

Orientation to Chief Executive Role

1. What is the “definition” of a chief executive officer? (See What is the “Chief Executive Officer”?)

2. In an incorporated nonprofit, to whom does the chief executive report? (See What is the “Chief Executive Officer”?)

3. What are the five major roles of a chief executive officer? (See General Responsibilities of the Chief Executive.)

4. What are the six major functions/responsibilities of a nonprofit chief executive officer? (See Typical Functions/Responsibilities of Corporate Chief Executive Officer.)

Early, Basic Preparation for Building a Board

Note that the founder of a nonprofit organization often recruits the first board members, and supports members to grow into their roles as board members, as well. Therefore, the founder should initially have some very basic understanding of the roles of a board. This understanding will soon be enhanced later on during further development of the board and nonprofit organization.

1. Name the five duties and ten responsibilities of boards (as listed on the materials included in your materials for review)? (Note that various experts might offer a different mix of duties and responsibilities. The important point here is to get a basic sense of the overall responsibilities of a board.) (See Board Roles and Responsibilities.)

2. To whom is the board of directors responsible? (See Board Roles and Responsibilities.)

3. What are the responsibilities of the board chair? Vice chair? Secretary? Treasurer? Board member? Be sure you understand the role of the board chair. The chief executive officer and the board chair work closely together to coordinate and support board activities. (See Sample Job Descriptions.)

4. Of the 10 guidelines for recruiting board members, how many can you remember? The chief executive officer often plays a key role in recruiting the first members of the board of a new nonprofit organization. (See Guidelines for Recruiting New Board Members.)

5. What information is requested by the board application (as listed in your materials for review)? (You might customize your own application form, of course.) (See Sample Board Application Form.)

Early, Basic Preparation for Working With a Board

1. Test your initial knowledge of the roles of board and staff by completing the table at Board Roles and Responsibilities — Test Your Knowledge. Next, compare your answers to the answers depicted in the table Board and Staff Responsibilities .

2. Name at least five actions that chief executives and board chair can take to ensure an ongoing, strong working relationship. (See Board and Staff Responsibilities and Sustaining High-Quality Relationship Between Board Chair and Chief Executive.)

3. Name at least five actions the chief executive and board members can take to ensure ongoing, strong participation of board members. (See Ideas to Generate Participation of Board Members.)

4. Describe the general procedure for evaluating the chief executive. (See Guidelines for Evaluating the Chief Executive and Sample Form to Use During Evaluation of Chief Executive.)

Optional: “Founder’s Syndrome”

“Founder’s Syndrome” can easily occur in a new nonprofit. Leaders of new nonprofits can avoid a great deal of pain and hardship by understanding the basics of this syndrome and how to avoid it. When addressing the following questions, refer to the document Founder’s Syndrome.

1. What is “Founder’s Syndrome”?

2. What causes it?

3. How can you recognize it?

4. Name at least three actions that boards can take to address it.

5. Name at least three actions that chief executives can take to address it.

ACTIVITIES TO BUILD SYSTEMS AND PRACTICES

Learners are strongly encouraged to complete the following activities, and share and discuss results with peers, board members, management and staff, as appropriate.
As you proceed through the following activities, be sure to note any incomplete actions in the Action Item Planning List.

Writing a CEO Job Description

1. Draft a job description for the position of chief executive officer of your organization. If applicable, present the draft to your board for review and authorization. (See Sample Job Description. Note that this job description should not merely be adopted as is, rather it should be modified according to the nature of and needs of your organization.)

Getting Ready to Recruit Your First Board Members

Basic Materials to Prepare

1. Draft a list of guidelines you can follow to being recruiting members for your board. (See Guidelines for Recruiting New Board Members.)

2. Draft a board application form that you can use to begin recruiting members for your board. (See Sample Board Application Form.)

3. One of the biggest turn-offs to potential board members is the appearance of a nonprofit that’s out of control, or that’s in crisis. The planning and systems you’ll glean from this online program will help your nonprofit be attractive to potential board members. For now, gather materials that will help potential board members understand your organization, for example, brochures, your mission statement, testimonials from clients, descriptions of community problems you’d like to address with your nonprofit, etc. Give them job descriptions of board members. (You’ll soon develop more useful board materials in an upcoming module in this program.)

Identify Potential Board Members — Focus on Skills in Finances, Programs and Fundraising

4. Make a list of what skills are needed by your nonprofit. Think about what skills — not just what people – are needed on your board. If you’re just getting started with your new organization, then you can use almost any help you can get — but there are certain skills that are usually very useful early on, for example, financial help, fundraising help, help designing programs, etc. Your needs will become more clear to you when you start and finish strategic planning in an upcoming module in this program. (Reference the Sample Board Recruitment Grid.)

5. Should you be a member of your board? Why or why not? What are the advantages and disadvantages? (See Should CEO Be On the Board? (scroll down).)

6. Write a list of at least five people whom you will approach to join your board. (See Sample Job Descriptions and Sample Board Application Form.)

Managing Your Early Board and Staff Relations

1. What problems might you foresee in working with a board? It can be a major challenge for strong, visionary founders to help organize and develop a group of people to whom he or she reports. Write a list of the advantages and disadvantages to you. How can you overcome the problems that you might foresee? Present your concerns in an upcoming board meeting and ask for open discussion around your concerns. Or, approach another appropriate source of help — but do address your concerns. They’re likely to only get worse if left unaddressed. (See Board and Staff Responsibilities and Sustaining High-Quality Relationship Between Board Chair and Chief Executive.)

Building the Foundation for Board’s Evaluation of Chief Executive

1. Draft a set of performance goals for the role of chief executive officer for your organization. The board of directors should evaluate the performance of the chief executive officer on a regular basis. This evaluation should be done on a regular basis and should include reference to the responsibilities listed in the job description and performance goals for the year. The performance goals should be closely aligned with goals established during strategic planning. Performance goals defined during this module should be updated as a result of the strategic planning conducted in the upcoming learning module about strategic planning. (See Guidelines for Evaluating the Chief Executive, Sample Form to Use During Evaluation of Chief Executive and Performance Management (basics concepts).)

2. Write a set of guidelines that will be followed by your nonprofit to evaluate the chief executive officer. Have the board members review the guidelines. (Later on in the learning module about boards, we will formally adopt a set of guidelines for evaluating the chief executive officer.) (See Guidelines for Evaluating the Chief Executive and Sample Form to Use During Evaluation of Chief Executive.)

Optional: Does Your Organization Have “Founder’s Syndrome”?

1. Share copies of the Founder’s Syndrome document with board members, if you already have them. Set aside 15 minutes in an upcoming meeting to share reactions and ideas about what you might do in the coming months in order to avoid the syndrome. Write down an action plan of what you will do, who will do it and by when. In the action plan, include actions the chief executive officer and the board can take.

ASSESSMENTS

The next learning module will provide an overview of basic management and leadership skills needed to start and manage a nonprofit organization. However, you might find it useful to begin thinking about your own skills at this time. If so, consider the following assessments.
Needs Assessments for Management Training and Development

TRACKING OPEN ACTION ITEMS

Therefore, update and regularly review a list of open action items (identified while proceeding through this program) that includes listing each open action item, who is responsible to complete it, when it should be completed and any associated comments. When updating the list, consider action items as identified during discussions, learning activities and assessments in this module.

Share and regularly review this action item list with the appropriate peers, board, management and employees in your organization. You can use the following Action Item Planning List. (At that Web address, a box might open, asking you which software application to open the document.)

2. If you have questions, consider posing them in the national, free, online discussion group hr.com, which is attended by many human resource and organization development experts.

(Learners in the nonprofit organization development program can return to the nonprofit organization development program.)

For the Category of Leadership:

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.

January 18, 2022September 20, 2022

Framework for Basic Nonprofit Program Structural Design

Framework for Basic Nonprofit Program Structural Design

Description

The following framework will guide you through design of the basic overall
structure for a nonprofit program. Nonprofit management can reference this structure
when planning program resources and budgets, staffing and operational procedures
to provide services to clients.

NOTE: The framework depicts a useful format, but should be duplicated into
an editable version, for example, into Microsoft Word.

Readers are encouraged to work with a planning team in their
organization to fill in this framework. After completing this
framework, readers can move information from the framework to
a more suitable document to be the final version of the plan document,
if desired.

Also consider
Related Library Topics

[NAME OF YOUR NONPROFIT ORGANIZATION!]

STRUCTURAL DESIGN FOR

[name of program!]

[date!]

TABLE OF CONTENTS

Purpose of Program Structural Design

Program Outcomes

Program Goals

Program Strategies

Program Objectives, Responsibilities and Timelines

Purpose of Program Structural Design

The structural design is the “skeleton” on which
the nonprofit program is designed. Nonprofit management can reference
this structure when planning program resources and budgets, staffing
and operational procedures to provide services to clients.

The “skeleton” is comprised of the program goals,
strategies and objectives, which should follow directly from the
goals, strategies and objectives produced during strategic planning.
The program goals are selected in order to accomplish certain
benefits, or outcomes, for clients.

The goals, outcomes, strategies and objectives are a major
portion of the program plan. This plan usually also includes description
of resources needed to achieve the goals and objectives, and the
funding necessary to obtain and use the resources. Required resources
usually includes human resources, which are often described in
terms of necessary skills and capabilities. The necessary funding
is often depicted in the form of a program budget.

Program strategies are usually carefully described in the form
of descriptions of methods to deliver services to clients.

Program Goal(s)

Each program should be intended to achieve at least one
of the strategic goals, and may achieve more. List the strategic
goal(s) to be accomplished by this program. Write goals to be
“SMARTER”, that is, specific, measurable, acceptable
to those achieving the goals, realistic, timely, extending the
capabilities of those achieving the goals and rewarding to them,
as well.

Example Program Goal #1: Support at least 600 drop-outs
from Minneapolis high schools to obtain diplomas or equivalent
levels of certification

1. ______________________________________________________________________

________________________________________________________________________

2. ______________________________________________________________________

________________________________________________________________________

3. ______________________________________________________________________

________________________________________________________________________

4. ______________________________________________________________________

________________________________________________________________________

5. ______________________________________________________________________

________________________________________________________________________

Program Outcome(s)

Program goals are intended to accomplish certain benefits,
or outcomes, for clients. List the outcomes intended from the
program. Note that outcomes are not always directly associated
with a specific goal, but may be accomplished across several goals.

Example Outcome #1 — Drop-outs from Minneapolis high
schools obtain high school diplomas or equivalent levels of certification
Example Outcome #2 — Within three months after getting
certification, participants obtain at least half-time employment
or enroll in an accredited program to further their education