The 2015 Wishlist of Books for Nonprofit Folk Is Here

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nonprofit books 14I have been publishing the Wishlist of Books for Nonprofit Folk for seven years at my blog Marion Conway – Consultant to Nonprofits. It is always my most popular post of the year and is visited throughout the year. It is a curated list. I invite nonprofit thought leaders to contribute to it each year and the list is actually made up of recommendations that they have made. This year’s contributors include: Debra Beck, Kathleen Brennan, Heather Carpenter, Pamela Grow, John Haydon, Beth Kanter, Andrea Post, Ash Shepard, Amy Sample Ward and Robert Weiner.

The contributors are not limited to nonprofit titles and so there are always excellent books meant for a larger community that speak to us in the nonprofit community as well. This year’s list is varied – inspirational and practical. There are books with transformational ideas and ones that remind us of the importance of simple things.

I invite you to take a look at this year’s wishlist . Click here to visit the post.

Marion Conway

Summer Reading for Nonprofit Folk

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Every year for the last five years I have written a Wishlist of Books for Nonprofit Folk at my blog – Marion Conway – Nonprofit Consultant. This is a curated list with recommendations made by thought leaders covering a wide range of topics including governance, finance, social media, board development, marketing,mergers and more. I also am maintaining a Pinterest Board with this title. For the last two yers I have also featured a giveaway book compliments of the author. Well, both of these resources have become very popular and are viewed many times all year long.

The summer is the perfect time to step back, think a bit, learn new things and plan for us “nonprofit folk. And so here are some ideas for summer reading from the Wishlist:


Measuring the Networked Nonprofit: Using Data to Change the World

by Beth Kanter and KD Paine

JD Lasica was the first response to my request for
recommendations saying that this is “
The one I always
recommend.” Measuring the Networked
Nonprofit is this year’s Terry McAdam Book Award winner.
The Alliance for
Nonprofit Management confers the Terry McAdam Book Award to the most
inspirational and useful new book published which makes a substantial

contribution to nonprofit management. It
is the most prestigious book award that a book for nonprofits can receive. Well deserved by Beth and Allyson, this book
should be on the bookshelf of every nonprofit executive.



I personally recommend Amy’s book –
it is both inspirational and practical. Amy and Allyson advocate integrating multiple
channels into your communications strategy and they use lots of excellent
examples and case studies. Social Change
Anytime Everywhere was a Terry McAdam Book Award finalist – recognized as one of the best
nonprofit books of the year. See all I
had to say at this blog post:
Social Change Anytime Everywhere – Think MultichannelStrategy



Heather Carpenter, PhD, Assistant
Professor, Grand Valley State University recommendations:

Heather is a young PhD already with a wealth of practical,
academic and research experience in the nonprofit field. Heather is using these books as texts in her
courses this term and this is what she had to say about them: “These books are practical and provide
concrete help for successfully running a nonprofit… the research I’ve done
shows that nonprofit managers still need the core financial management and
fundraising skills to effectively run their organizations.” Hey, Heather,
I completely agree and this is an excellent set of current books which
address both basic and more advanced skills for nonprofit leaders.

Nonprofit Management 101: A Complete and Practical Guide for Leaders and Professionals

by Darian Rodriguez Heyman

Nonprofit Sustainability: Making Strategic Decisions for Financial Viability by
Jeanne Bell,
Jan Masaoka and Steve Zimmerman

Fundraising for Social Change by Kim Klein

Budgeting and Financial Management for Nonprofit Organizations by Lynne A. Weikart and Greg G. Chen

Amy Sample Ward recommends….

Content Marketing for Nonprofits: A Communications Map for Engaging Your Community, Becoming a Favorite Cause, and Raising More Money (The Jossey-Bass Nonprofit Guidebook Series)by Kivi Leroux Miller

Another important fundamental for nonprofits is marketing and no one knows more about nonprofit marketing than Kivi Leroux Miller. Amy Sample Ward called this booksimply “Great.” And that’s the word from the reviews at Amazon. This is a must have for nonprofit marketing. Update since the wishlist was written: This is a terry McAdam Award nominee for this year.

Moving onto Board and Governance Issues…..

You and Your Nonprofit Board: Advice and Practical Tips from the Field’s Top Practitioners, Researchers, and Provocateurs edited by Terrie Temkin

I was so proud to be a contributor to this book. Terrie Temkin and Debra Beck offered these comments:

This anthology is comprised of 38 strong, knowledgeable voices from around the world – each taking a different approach to deal with some critical aspect of governance. The reviews have been stellar. One reason is that the book speaks to governance as it exists today, not last year or even yesterday.” Debra says of Terrie: “She picked the brains of some of the great governance writers and practitioners, offering from-the-field wisdom about what it takes to support and inspire nonprofit boards to perform to their highest potential (and their greatest aspirations). Advice is highly practical as well, and infinitely do-able. “ See my post for more on this volume:

You and Your Nonprofit Board – Just Published

Debra Beck recommends these two additional books with
governance topics:

The Practitioner’s Guide to Governance as Leadership: Building High-Performing Nonprofit Boards by Cathy Trower

Debra Beck comments: “Cathy provided the desperately needed
follow-up to Chait, Ryan and Taylor’s seminal “Governance as
Leadership.” She offers practical, grounded approaches for applying GAL in
the field, based in large part on her own research and her work in the sector.
Those of us who responded to Chait et al’s work with, “Wow! Now
what?” now have the “Now what…”

Nonprofit Governance: Innovative Perspectives and Approaches (Routledge Contemporary Corporate Governance) edited by Chris Cornforth and William A. Brown

Debra is a contributor to this volume and she describes it as, “articulate, inpractitioner-friendly ways, the best and latest research that has the potentialto impact board practice. Each chapter explores a different study and a different aspect of what actually happens in nonprofit boardrooms. It offers insights into some of the more pressing “how” and “why” questions and research that attempts to address them.”

See the whole list at 2013 Wishlist of Books for Nonprofit Folk.

Marion

The Interim Between CEOs Is Important – Make the Most of It

Cheer young businessman working with a laptop

Often the transition time between Executive Directors is a difficult and caretaker time for nonprofits. But if a Board lets it be just that it may not be taking advantage of an important opportunity. The transition – or interim time – can be a valuable, building block and stepping stone period for the next Executive Director’s success.

In my work, a favorite project is assisting small nonprofits in their search for a new executive director. I have developed a cost effective process that is very effective in identifying outstanding ED candidates and efficiently choosing finalists. But frankly, I haven’t thought much about the interim period for nonprofits between permanent EDs…until now. I currently chair the Search Committee for a new pastor for my church congregation. This truly a huge and humbling responsibility and fortunately I am part of an extremely capable Search Committee. The Church’s governing body has hired an interim pastor and he is not involved in nor can be a candidate for our next permanent pastor according to our church rules. However, reconciling the past and preparing for the future are part of what is in his contract. I have read his contract over and over and I am impressed with some of the listed responsibilities. Here are some highlights:

The interim period is seen as prime time for renewal, re-energizing the parish in its life and mission.

Specific tasks include:

1) Coming to terms with the history of the congregation and its relationships with previous clergy.

2) Discovering the congregation’s special identity, what it dreams of being and doing apart from previous clergy leadership.

3) Dealing with shifts in leadership roles that naturally evolve in times of transition, allowing new leaders to come to the fore constructively.

4) Renewing and reworking relationships with the Diocese, so that each may be a more effective resource and support to the other.

5) Building commitment to the leadership of the new rector in order to be prepared to move into the future with openness to new possibilities.

That’s a tall order. But step back a moment and think about it. If done right it lays a lot of groundwork for the future success of our new pastor who will be called to lead our congregation.

All of this has made me think of how important this interim phase is to nonprofits – especially small and midsize organizations. This is a time of uncertainty and it can me marked by anxiety, impulsive change by temporary leaders, reduced fundraising, etc., etc.. Or it can be a time of understanding who you have been, who you are now, and what are your dreams of becoming. It should be a time of “renewing and reworking” your relationships with major funders and key supporters. And it should be a time of preparation for willingness to adapt to a new leader with a new approach, personality, style and goals.

I have seen a wide range of transitions to new executive directors – both as a consultant and as a Board Member. And for the first time, I am learning how valuable this phase can be.

Each transition to a new Executive Director is unique and therefore the plan for each must also be unique. You may be hiring a first executive director or replacing a founder who ran the place “his way” for the last 25 years. The ED may have quit after a short tenure or may have left under less than ideal circumstances. The ED may have just left for a better paying job closer to home. Whatever is the case the Board should plan to make the interim period be a valuable time rather than just a caretaking period. Here are just a few thoughts on this matter for boards to help with the transition.

Conduct and Exit Interview

There are basic HR functions that should occur with an exit process but in addition at least two Board members should interview an exiting ED in order to gain insight that will be helpful with the next ED. You should ask about any key concerns that the person has with the organization and Board and what they see as the organizational priorities, strengths and weaknesses.

What Needs to be Accomplished in the Interim

Based on the unique issues facing your organization, develop a clear list of responsibilities and goals for the Interim ED. Make it more than just “keeping the ship afloat.”

Communication

Communicate the Board’s commitment to the mission and the future to all constituents including staff, funders, volunteers and supporters. Share the search process and hoped for timeline for a new ED to be in place. Encourage contact with the interim leadership.

This is a good time to hold meetings with your various constituents to see how they view the issues and priorities for the organization. This information can be helpful as you get further into your search process and what you are looking for in a new ED takes on more clarity.

The Right Welcome

The Board needs to take a leadership role in welcoming the new ED. Make sure it is announced with fanfare – press release, email blast and reception. Board members should accompany the new ED on a first visit to funders and major donors.

I am considering developing a model for a “Transition Retreat for Boards and Other Constituents. What do you think? What do you suggest I include in such a model? Please leave your comments.

The 2013 Millennial Impact Research Report – Focus on Benchmarks

Black Twist Pen on Notebook

The fourth annual Millennial Impact Research report was published in July and it inspired a flurry of articles about this important topic for nonprofits. This report deals exclusively with the relationship of Millennials with nonprofits and how to engage them and increase their engagement level with you. At my blog, Marion Conway – Consultant to Nonprofits I wrote an overview of the report covering the highlights and takeaways for the three main categories of the report: connect, involve and give. Here’s the link:

Millennial Impact Research Report – Highlights and Takeaways

The Millennial Research Report has many in-depth features including brief videos of respondents. It is very accessible and well organized and I encourage you to see the whole report if you are interested in engaging this demographic – 18 – 34 year olds with your nonprofit.

One of the best features of this report is its recommendation section – called Millennial Impact Benchmarks. The Millennial Impact Benchmarks provide a path that any organization can follow to develop its culture toward Millennial engagement. The system is three phases levels—Millennial Inviting, Millennial Immersion, and Millennial Impact each describing how you can work with Millennials to connect, involve, and give at each level.

Here is a description of each level:

01-Inviting

Inviting – Millennial Inviting is the first level of Millennial engagement. No matter its size or the resources of your nonprofit, every organization can adopt the strategies and cultural changes to take the first step and involve Millennials

02-ImmersionImmersion – Millennial Immersion is the second level of Millennial engagement. Organizations that reach the benchmarks of this level have designed programs with Millennials, not just for them. At this stage, Millennials are actively participating in unique ways to help the cause enhance awareness and outreach efforts of the community.

03-ImpactImpact – Millennial Imoact is the third level of Millennial engagement. The ultimate goal – the pinnacle of a Millennial engagement strategy – is to provide leadership, service and truly transformational opportunities for Millennials to affect the direction of the community.

http://www.themillennialimpact.com/benchmarks

Benchmarks-Overview

The full Benchmarks section with four detailed grids can be found here.

An important way we make progress on any front is to assess where we are, set benchmark goals to attain and develop and follow an action plan. This reportk provides a roadmap for doing just that in engaging with Millennials. There’s no time like now to begin.

Marion Conway

You and Your Nonprofit Board – New and Recommended

A-business-man-speaking-in-front-of-stake-holders

IMG_79298x101dI am proud to be a contributor to You and Your Nonprofit Board: Advice and Practical Tips from the Field’s Top Practitioners, Researchers, and Provocateurs The book is published by Charity Channel Press and edited by Terrie Temkin. Here at Nonprofit Capacity Building I’d like to give a high level overview of this important publication. You can also see what I’ve had to say at my blog – Marion Conway – Nonprofit Consultant.

Terrie Temkin, a perfectionist editor (I can definitely confirm that) edited and organized an excellent anthology of practical, conversationally-written articles which present fresh ideas. Every article will make you feel like – “I think I’ll try that – It’s a great idea and I can do it.” It is far from a basic handbook and it will be of value to both new and experienced board members and executive directors. I am honored to be chosen as a contributor among this well respected cadre of contributors.

 

 

The book is divided into three sections entitled:

  1. Governance Today
  2. Making it Work
  3. Myths and Madness

 

Terrie begins the book with a one pager “Getting the Most Out of this Book.” She opens each section and chapter with a brief overview which will help you make your reading choices. She acknowledges the contributors this way “Each of the contributors is a governance expert in his or her own right. Each brings solid experience in the nonprofit sector, along with a unique perspective and a hunger for continuous learning.” Her wish for the book is that it inspire discussion and action. The book does NOT offer prescriptions and rules rather the articles offer ideas and approaches that have been tested and can be implemented. You can expand them and adapt them to your own organization. The ideas are not just for large organizations – small organizations (my forte) will find plenty of ideas that will work for them.

 

One of my favorite features of this book is the layout. Each article has been well written and edited so that although there are 38 contributors there is a cohesive feel. There are plenty of examples and short boxes throughout which provide food for thought, definitions, principles, quotes, examples and practical tips.

 

The whole gamut of board issues is covered from “A Blue Ribbon Nominating Committee for your Board” by Jan Masaoka to “Act Your Age: Organizational Life Cycles and How They Impact Your Board” by Mike Burns to “Don’t Just Whack“Em and Plaque“Em” with an excellent example for an exit interview of Board members by Carol Weisman.

 

I chose to submit an article that I have written about on my blog. It is entitled “Exercising Board Leadership with Social Media” and started out as a slightly changed composite of existing blog articles at Marion Conway – Nonprofit Consultant and and Nonprofit Capacity Building. Terrie’s editing with a zillion comments and questions helped shape it into a much better article with crisp presentation. Thank you Terrie even though I was getting impatient, your perfectionist editing did produce a much better product than my first submittal. Am I a Practitioner or a Provocteur? What do you think?

IMG_79171d

 

Carter McNamara, of managementhelp.org which hosts this blog says it best with this review – “Seldom have I seen a more thorough publication and with such well-respected authors. The book covers the critical basics and brings in the state-of-the-art. It’s well-organized to be a reference manual for all of us in nonprofits.”

 

Right now Amazon is offering You and Your Nonprofit Board for only $27.72 which is a 31% discount from the $39.95 list price making it affordable and eligible for free shipping. Click below to go to Amazon now.

 

2013 Nonprofit Finance Fund Survey Highlights

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The Nonprofit Finance Fund has released their 2013 State of the Nonprofit Sector report. This is the fifth year for this large and comprehensive study. Almost 6000 organizations responded to the survey. The report includes an online analyzer which enables you to analyze data by state, sector, size, and low income communities. Be sure to check out this aspect of the report.

I strongly recommend that you review the whole report and use the analyzer to assess how your organization stacks up against others in your state and in your sector. I tried the analyzer to review the data for New Jersey – my home state – and found it to be easy to use and have some important data suitable for advocacy. Be sure to check out this aspect of the report. This study was funded Bank of America Charitable Foundation.

Click here to see the report.

I am writing two companion blog articles on the report. My blog article at marionconway.com has highlights mainly about government funding , foundation support, low income communities and comparison of my home state – New Jersey – results versus the total US results. This article features issues related to mission and Board. As always, this article features the study results mixed in with my commentary.

The overall most telling data point for me is that five years ago 44% of nonprofits answered no when asked if they were able to meet demand for services and this year the number is 54%. It is a startling increase in inability to meet demand for services. It is caused by decreased funding from government and foundations, increased demand and increased costs. This combination has become the perfect storm.

So how are nonprofits approaching this dilemma? There are some surprises in the data.

Action taken in 2012

49% Added or expanded services

17% Reduced/eliminated services and programs

39% Collaborated with another organization to grow/add services

30% Upgraded technology to improve/grow services

There is really good news in these survey results. Instead of folding, nonprofits are using the ingenuity that is in their DNA to do more even as the financial picture is challenging. I was so happy to see strong responses to collaboration and technology because I believe that both are essential keys for adapting tp the new financial normal. More good news nonprofits report big expected increased in these areas for 2013. If you’re not on board yet…..jump on! To be sure nonprofits are being cautious and seeking “balanced growth” and just as for profit corporations have become less giddy and more thoughtful about growth so have nonprofits. Many have learned the hard way that government contracts don’t pay for everything and are subject to change and new rules, etc. It a great source of funding but has to be looked at realistically. In 2012 over 40% of nonprofits hired new staff, 36% engaged more closely with Board and 31% relied more on volunteers. For 2013, nonprofits project less hiring and more reliance on Board and volunteers. If you are a Board member or volunteer get ready to roll up your sleeves even more this year.

It needs to be as much about looking at long term sustainability as it does short term survival. I see that many small nonprofits that I work with are finally coming to grips with this.

The survey results suggest that Nonprofit Boards are engaged at an acceptable, if not a perfect level of participation. Here are some of the results:

•71% Make donations
•65% Help fundraise indirectly
59% Help fundraise directly
•55% Make introductions/facilitate partnerships
•76% Lend expertise in other ways
I am a firm believer that 100% of Board members should contribute financially and that they should be told that this is the expectation before they join the Board. 71% is really very disappointing. However, this is a healthy response rate for both help fundraise directly and indirectly. Every executive director I know would want these numbers to be higher but would also be happy to have this level of participation.
If you found this information interesting, be sure to read my article at Marion Conway – Nonprofit Consultant as it presents findings about finances, funding, nonprofits serving low income communities and the online analyzer tool

Mentoring – Nonprofits, Grandmas and Grandpas Let’s Unite

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I very seldom write an article that spans across my Grandma Chronicles and professional -Nonprofit Blogs. But once in a while inspiration hits and out comes a blog post such as this one. It It is being published at The Grandma Chronicles and Nonprofit Capacity Building. The question is: “Should you and nonprofits get involved with mentoring?” It actually can be a lot of work to get started and sustained and takes a very strong leader who inspires, has good organization and is willing to work hard on the project for it to work. Sounds a bit discouraging, doesn’t it? But is it worth it? The answer is a resounding yes!

Two of my sisters that I spent most of the day with on our recent trip to Broadway.  Here they are on the PATH on our way into NYC
Two of my sisters that I spent most of the day with on our recent trip to Broadway. Here they are on the PATH on our way into NYC
First, the source of inspiration for this post. I am involved with the mentoring program at my high school, St. Vincent Academy in Newark, NJ. As a participant it is very easy and I just get to enjoy myself. But the leader of this program does an incredible amount of research, planning, budgeting, encouraging mentors, arranging group tours and making it happen. Twice a year, mentors – alumnae and members of the Advisory Board – go on trips with an equal number of girls who are currently high school students at St. Vincent’s. The alumnae usually range from those who are out of high school for 10 years to over 50 years.
Once a year we go to a Broadway show with dinner and on another day – one that is not a school day – we go on a full day outing that our leader, Mary Gannon, has arranged. We have gone to Yankee Stadium, the Botanical Gardens, museums, a Coast Guard station complete with touring two Coast guard boats and more. Mary always includes some browsing/shopping times which girls of all ages love and a morning and afternoon activity. Sometimes there’s a bonus like bowling or riding a merry go round.
We often get looks because we seem like an unusual group. There appears to be an almost equal number of older white women and mostly minority young women. We don’t look like a standard school trip because we are just all socializing together rather than being adult chaperones and students. There are also too many adults to just be chaperones. Sometimes someone will look for a few moments and then ask – “What kind of a group are you anyway?” We talk about careers, our families, raising families and having careers or being active with volunteering. We also get questions about what the prom was like back then and learn about what it is like now. Some of our mentors were star basketball players in their day and that always makes for an interesting conversation. I always like to see the imagining going on when a few girls learn that the woman who graduated over 50 years ago and now volunteers as a handbell instructor was a star basketball player. She is tall it is not hard for me to see it. But they look at her as if to say “Really?” and then do do say “Really?” If you need it, it’s a good opportunity to get a little smart phone tutoring. Did we have some of the older teachers? Some of us were students with one of their teachers. It is always the best day ever.
Mentoring doesn’t have to be based on tutoring, leadership development, careers or some other focused goal. I do and like that kind of mentoring too. But this bonding with girls that I have so much in common with and yet have differences with has something so special about it. I can’t find the few words to capture it. But we cross generations, cultures and economics and explore our common experience. They are interested in our past and we are interested in their future. Colleges and careers enter into easy conversation – not formal counseling.
I am looking forward to getting involved with a more formal mentoring program at St. Vincent’s but this will always be one of my favorite things to do.
So….Grandparents and nonprofits. I urge you to get involved in mentoring. It doesn’t have to be a formal focused program. It is not just rewarding – it is fun and will lead to new friendships that you never imagined. If you don’t know of a local program think about started one at a local nonprofit. I can’t just say, “Oh, it’s easy.” But I can say, “It’s well worth it.”
If you are interested in starting a mentoring program there are excellent resources available. Probably the best known is the National Mentoring Partnership – found online at http://www.mentoring.org/. They have remarkable resources and a huge network available to help you find a program near you or to start and sustain a program. Check it out.
My grandson, Zach, is three years old. Those of you who read this blog know that he is the joy of my life. I am also enjoying my time spent with teenagers. It is very different being in a mentoring role than an authority role. Even if you are busy, I highly recommend checking out mentoring opportunities. And please do share your mentoring activities with us by leaving your comments.
Enjoy!
Marion

Merge Strong Traditions with New Vision….Connect the Dots

group-young-colleagues-giving-each-other-high-five.

connect the dots 2 13Merge strong traditions with new vision…its the way to go… Once a year, at the end of the year I write a blog article that I post both at Marion Conway-Nonprofit Consultant blog and at my other blog – The Grandma Chronicles. This is my favorite post of the year and it is always a popular post. It is a post in which I reflect on the year coming to an end with examples from my personal and professional life and describe my wish for you for the coming year.

This year my wish was for merging strong traditions with new vision. I suggested that we use our imagination to make it happen. Imagination is on my agenda for forging a Happy New Year with joy and courage to face what the world brings us. And this is my wish for you. Read my original post to see my personal examples from 2012.

For the nonprofits I work with, I described 2012 as a year of adapting to the new normal. This has meant adapting programs to new funding realities, new forms of fundraising, getting serious about social media, and new staff finding their sea legs and bringing new perspectives to organizations which – like me – are steeped in tradition. There has been an increased serious interest in strategic planning and desire to discuss vision for the future. It has been a privilege to work with nonprofits as they navigate through these changes. I have been in awe of the leaders of so many organizations I’ve worked with. I have seen difficult situations dealt with and stronger organizations emerge – even if they don’t recognize that yet themselves. It has been inspiring.

 

As for 2013, I predict it will beckon more change and need to adapt even more so. And I am hopeful that many nonprofits are up to the challenge. Nonprofits are becoming more nimble and finding their own voice. There is less of this “you should run more like a business” and more of “we need to establish priorities and focus on what we do best.” I see a new energy among Boards and readiness to try new approaches. Like me, many Boards have strong ties to traditions but we both must realize that traditions must find new ways to manifest themselves.

 

All this generality is quite nice, but lets get down to a specific.

Boards – In the last few years there has been a great deal of progress with governance – even for small organizations. Board members are taking this responsibility much more seriously and this is good news. Now what is also happening is that Boards are beginning to wake up to their responsibility for financial management and fundraising. They are connecting the dots…if you approve a budget you also need to ensure that the revenue is there to support that budget. And Behold! That often requires fundraising.

As Boards ask more questions about the budget and finances they are learning more about what are the gems and millstones around the neck of the organization. Do you know an organization that has this situation? : A longstanding program that serves few people, is poorly funded but is lauded as a shining star of the nonprofit – I know more than one. It frequently is run by someone well respected but the program no longer is the best practice way of serving a need. As Board members ask more questions the sacred cows are being overhauled or put on the chopping block. Sometimes a program can benefit from things like a fresh grant, new marketing, new time frame or new approach. I knew an after school program that ran for four days a week leaving those using it as childcare a day short and those involved with multiple after school programs uninterested. Expanding to five days and offering different “clubs” on each day made the program interesting to more people. Redesign and additional funding rejuvenated the program dear to the heart and mission of this nonprofit.

When nonprofits find ways to honor the tradition of their programs and infuse new vision into to them they stay healthy. When they let these problem children linger, they can often be on the path to failure – caused by financial issues and harm to reputation among funders, clients and other supporters. This approach – honoring your traditions and infusing new vision can make a difference in the sustainability of a nonprofit.

Do you have other examples to share? We’d love to hear them – please leave comments.

 

Keeping Your Nonprofit Off Its Own Fiscal Cliff with a Financial Strategy

Financial data on screen

There is so much written about fundraising, engaging the Board in fundraising, online fundraising, saying thank you, thank you, thank you, being donor centric, etc.. Yes, it is all vital to nonprofits. It’s not the only thing that nonprofits need to focus on today but it is the area getting the lion’s share of attention. I’m guilty too. But just as the federal government needs to focus on revenue, expenses and better efficiency, nonprofits needs to look at the whole package too.

I have just written an article for my blog at Marion Conway – Nonprofit Consultant, Does Your Strategic Plan Have a Financial Strategy – It’s Crucial, which discusses the importance of financial understanding – especially in small nonprofits. Here are some highlights discussing specific issues faced by small nonprofits.

A common situation in small organizations is this: the finance department consists of a bookkeeper, the executive director’s background is as a program manager and there are no accountants on the Board. Many of these organizations are continually at the edge of a fiscal cliff and deal with ongoing crisis with staff cutbacks or skimping in other ways that actually hurt the organization. Even small nonprofits need to have a sound financial strategy.

Some action steps should include:

Develop more financial management understanding. The Executive Director should take courses and workshops and develop as much financial management expertise as possible. The Nonprofit Finance Fund has chapters throughout the country and offers excellent workshops.

Recruit accountants and financial managers to be on the Board and get them on the finance committee. Develop a list of things for the finance committee to tackle besides developing a budget.

Look at your expenses by program and assess financial viability, effectiveness and relationship to your core mission. I’ve seen several organizations with programs that outlived their viability and only when reviewed in depth were they eliminated.

Understand risk. Understand your insurance policies. Evaluate in terms of cost and coverage.

Establish a line of credit – This is especially important if your funding source makes payment only after services are provided and reports are filed.

Have a rigorous system of maintaining records and issuing invoices and necessary reports for payment promptly. Here again, I have seen nonprofits get in financial emergency situations because they are not prepared to file prompty, complete reports required for government payments for services already provided.

Develop a reserve – There isn’t a simple answer to what is the right reserve level. It depends on your vulnerabilities and accepted risk levels. That’s why you need someone with some financial prowess on your Board. Don’t abuse a line of credit – use it only as intended.

It is important to analyze programs individually. Consider financial health, relationship to mission, effectiveness of the program and infrastructure being used. I have seen many programs that were supposed to pay for themselves that didn’t. They were a drain on the infrastructure and management and sometimes not closely aligned with the mission. If a program is underutilized, what is the reason? Are there better options in the community or have you just not marketed it properly? Has a program outlived its value? Undertaking financial analysis should be only one component of an overall analysis – but make sure it is an accurate one and not a mythical one. It is more important to have high quality for the programs you offer than to keep all of your programs operating. That’s strategic. And being strategic means keeping an open mind about change.

See the case study at my other article at Marion Conway – Nonprofit Consultant

Resources

For more resources, see our Library topic Nonprofit Capacity Building.

Financial Scan – Guidestar and the Nonprofit Finance Fund have partnered to develop this software tool that can help you understand your financial health, provide comparisons with your peer group and offer the base for doing real financial strategic planning. Learn more about Financial Scan here

Transforming Nonprofit Business Models and other resource developed by the Nonprofits Assistance Fund – Learn more here.

Books
Nonprofit Sustainability: Making Strategic Decisions for Financial Viability
by Jeanne Bell, Jan Masaoka, and Steve Zimmerman

The Nonprofit Business Plan: A Leader’s Guide to Creating a Successful Business Model Plan
by David LaPiana

Free Articles

Free Management Library

Tis the Busiest Time of the Year

Are you ready for the December rush? As ready as you should be? This is an important time of year for nonprofits as well as individuals and it needs focused attention on soooo many things. There are year-end programming events and fundraising things to do. But you can always do more. There are some easy things to do that may just go a long way.

I am writing this on so called “Cyber Monday” – the Monday after Thanksgiving. Sales today are expected to top $1.5 Billion – 20% more than last year. I believe it. I find that although I have purchased things online for years I shop this way much more frequently than I used to. It’s kind of nice to have things delivered to your door. This is also true with charitable giving. What this means for most nonprofits is that it is a good investment to greatly improve their internet savvy. But Rome wasn’t built in a day and you can’t get in the fast lane in just a few weeks. You can, however, do a few simple things to enhance your online presence and fundraising results without spending a lot of time or money. It is so much easier to make a donation online than respond to direct mail and this is the age of convenience.

I am recovered from cooking Thanksgiving dinner for a crowd and in the next two weeks I will facilitate a Board Retreat and be an “Expert” at the New Jersey Center for Nonprofits Annual symposium. I have started my Christmas shopping including some special gifts bought at the annual Newark Museum Shopping Spree. I even got up early on Black Friday and bought a new laptop. Desperately needed – my old one said enough already.

December has so many “Must Dos” that sometimes I feel I am constant motion. This is true for nonprofits too. You probably have your annual direct meal appeal out and are beginning to process the returns, your Fall fundraising event is behind you and plans for year-end festivities for those you serve are underway. Enough on your plate? All done – NOT!

There is that other group that needs attention in December. They are your online “supporters” (supporters may or may not be donors yet) who you only have contact with online. They may check out your website without you even knowing it. They may like your page on facebook but never post a comment. They may google something -your name comes up – and they browse your website. They may be checking out your name because they heard you provided food or a warm place to recharge their cell phones during Sandy.

So the question is what will they see? Do you have holiday and current news on your homepage or a report – without a picture – of an event last April? Is your Donate Now button right there on the homepage or three clicks away? Are you ready to post on facebook throughout December – not just asking for donations but with program updates and a link to your donate page.

I could keep on writing about what you should do in December but I’ll keep it simple. Keep these facts in mind: 40% of all individual donations are made in December. 22% of online giving is done in the last two days of the year and that the biggest day of the year for online giving is New Year’s Eve. So here are just three easy things that you can still do before year end:

  1. Update your home page with recent pictures, news and year end planned activities
  2. Plan on sending an eNewsletter – brief – one topic and brief appeal in next couple of weeks
  3. Write a brief eNewsletter – key word here is BRIEF with one topic only- news or a year end activity to be send on December 29-30th. You can write it now and queue it to be mailed then so even if you are on vacation it will go out.

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For more resources, see our Library topic Nonprofit Capacity Building.