How to Provide the Nonprofit Micro-eMBA Program for Nonprofits

Non profit written on a white background close to a note

Free Micro eMBA — How to Provide the Program for Nonprofits

You Can Provide Program with Little in Expertise
or Resources!

You have a wonderful opportunity to offer a very low-cost, “nuts
and bolts” development program to nonprofits in your area!
Offering the program will be much easier than you think. You’ll
read below about a very straightforward approach called “peer-training
groups” that you can use to design and carry out the program.
This approach requires little in expertise or resources from you.

First, we’ll review some basic considerations in offering any
management-related development program. Then we’ll review the
peer-training group approach that addresses many of the primary
considerations in offering a program.

Sections of This Document Include the Following

Primary Considerations in Setting Up
Any Development Program

How Peer-Training Groups Make It Easy
to Provide the Program

Regarding Verification and Certification
of Learning

Also consider
Related Library Topics

Primary
Considerations in Setting Up Any Development Program

There are some fairly standard considerations in setting
up and offering any management and organization development program.
You’ll need to think about the following primary considerations.
(Keep in mind that the peer-training process takes care of many
of these standard considerations for you!) They include:

What do you want to accomplish overall with your Free Nonprofit
Micro-eMBA program? Professional development? Organization development?
Networking? Complement another training program? Other(s)?
How will learners gain the necessary knowledge, skills and
abilities to achieve the outcomes that are preferred from the
program? Will learners listen to lectures? Do readings? Have
discussion? Other(s)?
What group(s) of learners will be in your program? New executive
directors? Experienced executive directors? Board members? Middle
managers? Volunteers? Other(s)?
How will learners be organized as they go through the program?
In groups/classes? On their own? As part of another program?
Other(s)?
In the case of an online program, will your learners have
consistent access to computers and the World Wide Web?
How will you evaluate the quality of the process in your
program? How will you identify what outcomes were achieved by
learners? How will you show evidence of that learning?
What expertise might you need to offer and support the program?
Subject-matter experts? Trainers? Evaluators? Advertisers?
How will you advertise your program and recruit learners?
Advertisements? Newsletters? Classifieds in newspapers? Direct
mail? Word of mouth? Other(s)?
What materials and facilities do you need? Training materials?
Classrooms? Parking spaces? Other(s)?
What costs are involved? Trainers? Subject-matter experts?
Facilities? Advertising?
What fee will you charge learners?
Where will you get help if needed?
What is involved in kicking off the program?

How Peer-Training Groups Make It Easy to Provide the Program

Peer-Training Incorporates State-of-the-Art Methods
of Adult Development

Adults learn best when they a) actually apply new
information and materials, and b) exchange ongoing feedback with
others around those experiences. Few traditional classroom conditions
support these ideal conditions for learning. In most cases, an
expert delivers the training and afterwards learners leave the
room, seldom to see each other again. Too often, training materials
sit on shelves collecting dust — learners never really apply
their new learning. This problem doesn’t happen in peer-training
groups!

The process in peer-training does provide ideal conditions
for learning. The peer-training process is based on the action
learning process, which is used across the world for personal,
professional and organizational development. The peer-training
process was developed by Carter McNamara of Authenticity
Consulting, LLC. Sponsors of the Free Nonprofit Micro-eMBA
can use the peer-training process to carry out the program in
a straightforward fashion that makes little use of high-priced
experts and facilities.

Before Peer-Training Begins, Sponsor Markets Program
and Recruits Learners

Before the peer-training process begins, the program sponsor
organizes learners to go through the program. This involves some
basic advertising and promoting about the program. How that marketing
is carried out depends very much on the nature and needs of the
sponsoring organizations and the locale in which the program is
being offered. The sponsor may find the program
flyer useful during the local advertising effort.

How the Peer-Training Process Works

Once the group of learners has been organized, here’s
generally how the peer-training process works. The following sequence
repeats itself for each topic in a program.

1. The sponsor provides training materials in regard to a certain
topic. (In this case, all of the materials are already completely
and available for free in the Free Nonprofit Micro-eMBA.)
2. Learners meet on a regular basis, for example, every two to
four weeks in three-hour meetings. Meetings are about three hours
long.
3. Between meetings, learners read the training materials in regard
to the topic.
4. Each meeting starts with some type of training activity, often
just a one-hour, open discussion about the particular topic that
the learners had just read about previous to coming to the meeting.
5. Immediately after the one-hour discussion period, learners
are organized into groups of 5-7 learners each to do a two-hour
peer-training circle (ideally, in separate rooms).
6. In their groups, learners share any materials that they brought
to share with other learners in their group, for example, policies,
plans, etc., that were developed from applying new information
and materials learned during the program
7. In each group meeting, each learner gets a specific amount
of time (a time slot of, eg, 20 minutes) to get help from other
members of the group. During their time slot, each learner addresses
five specific questions, including:
a) How did I apply the new information and materials gleaned from
the meeting of two to four weeks ago?
b) What did I learn from applying that information and materials?
(It’s highly suggested that the learner write down their
perceptions of their new learning.)
c) How do I plan to apply the new information and materials gleaned
from today’s meeting?
d) How can this group of peers help me apply the new information
and materials before the next meeting in two to fours weeks?
e) Are there any information and materials that I’d like my peers
to bring for me in the next meeting that we’ll have in two to
four weeks?
8. At the end of that meeting, each member evaluates the quality
of that meeting and specifies what could have been done to make
the meeting even better.
9. Between meetings, members apply the new information and materials
that were gleaned from the previous meeting.

Then steps 1-9 are repeated for each topic, or part of a topic
(see Suggested Number of Meetings Per
Learning Module), in the program.

Resources to Guide the Peer-Training Process

Sponsors can choose to implement the peer-training process
on their own, or they can obtain time-tested guidebooks which
give step-by-step instructions for organizing, facilitating and
evaluating peer-training groups. (The sponsor may want to pilot
a group or two of learners just to get the “feel” for
the peer-training process.)

Sponsors of the Free Nonprofit Micro-eMBA can obtain peer learning
guidebooks. Form peer learning circles for about $20 a person.
Go to Peer
Learning Guidebooks and see the Program Planning Kit to design
your complete peer learning program — then call us at 763-971-8890.

Suggested Number of Meetings Per Learning Module

The program’s learning modules vary in the amount of
materials to review and activities to conduct (in order to build
systems in the organization). Therefore, it may be prudent to
use more than one meeting to address certain modules (this is
in the case where the program sponsor has chosen to organize learners
together in meetings, eg, in peer-training groups). Note that
learners may choose to go through the program in an order other
than that specified in the catalog
of learning modules. That’s fine. Still, certain modules may
require more than one meeting of learners.

Note that the following are suggested — ultimately,
it’s up to the program sponsor and learners as to how many meetings
they want to have.

Learning Module	Suggested Number of Learner Meetings (see NOTES below)
Program Orientation	1
Starting and Understanding Your Nonprofit	1 about topics for reflection/discussion 1 about activities to build systems/practices
Understanding the Role of Chief Executive	1
Developing Your Basic Management and Leadership Skills	1 about topics for reflection/discussion 1 about activities to build systems/practices
Building and Supporting Your Board	1
Developing Your Strategic Planning	1 about topics for reflection/discussion 1 about activities to build systems/practices
Designing and Marketing Your Programs	1 about topics for reflection/discussion 1 about activities to build systems/practices
Managing Your Nonprofit’s Finances and Taxes	1
Developing Your Fundraising Plan	1
Supervising Your Employees and Volunteers	1 about topics for reflection/discussion 1 about activities to build systems/practices
Evaluating Your Programs and Services	1
Conducting Overall Final Fitness Test of Your Nonprofit	1

NOTES:

1. The above table suggests a total of 17 meetings in the program.
The number of meetings in the program ultimately depends on:
a) How many modules the learner (or the program) chooses to complete
b) The amount of time between meetings. The more time between
meetings, the more likely that learners could address a module
in one meeting.

2. The length of time to complete the program depends on:
a) The amount of time between meetings, for example, two to four
weeks.
b) How many modules that learner (or the program) chooses to complete.

Regarding Verification and Certification of Learning

Ultimately, It’s Up to the Program Sponsor/Provider to Determine

It’s up to the sponsoring organization to decide if the
program will include certification of learning, for example, a
diploma, “continuing education units” (CEU’s), certificate,
etc.

It’s ultimately up to the local sponsoring organization to
decide how any verification and certification of learning is to
occur. The sponsor is in the best position to collect and evaluate
the necessary information in order to verify extent of learning
and ultimately reward certification.

Learners in circles might consider from among the following
evaluation ideas to decide their approach to evaluating their
learning in the program. NOTE: Before and after every circle meeting,
learners will complete a Session Planner Form which has learners
answering the questions about their learning, as well.

Objective Criteria That Could Be Considered for Evaluation
of Learning

The following criteria apply to programs where learners
are organized into groups, for example, in the peer-training process.

Item/activity	Evaluator*	Passing Grade	Failing Grade
attendance	facilitator	· none or one absence	· absence from two or more meetings without visible effort to make up the missed meetings
documentation of learning	facilitator	· fully completed	· not completed
reflective document with summary of learning from the program	facilitator	· integration and synthesis of learning	· lack of integration and synthesis of learning
portfolio (collection of written results from the program)	facilitator	· complete	· not completed

*The evaluator may be an outside facilitator
or all learners, for example.

Subjective Criteria That Could Be Considered for Evaluation
of Learning

Item/activity	Evaluator**	Passing Grade	Failing Grade
quality of learner’s feedback in meetings	group feedback in final meeting	· sustained high quality and quantity of feedback · build on own and others’ strengths	· minimal feedback
quality of learner’s use of their time slots in meetings	group feedback in final meeting	· well-prepared explanation of current goal · helped the group to help them · overall: took charge of their learning	· obvious lack of preparation for meetings

**The evaluator may be an
outside facilitator or all learners, for example.

For the Category of Personal Development:

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

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

Related Library Topics

Recommended Books

January 18, 2022March 23, 2023

Basics in Developing Your Fundraising Plan

Fundraising plan text on a white background close to an opened book

Free Micro e-MBA Module #9: Basics in Developing Your Fundraising Plan

Some 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 nonprofit fundraising.

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

Raising funds to operate your organization and its programs is very likely one of the most important activities for your nonprofit. Many nonprofits obtain necessary monies from fees and sales (that is, from sources other than donations). However, if your nonprofit counts on donations, then this module will be very useful to you.

This module will guide you through basic considerations and activities that address the questions:

What is fundraising?
Are you ready for fundraising?
What are the standard sources and how are they approached?
What’s the board’s role in fundraising?
How is a proposal written?
How can fundraising software help me?
Should you use a fundraiser and/or grantwriter?
How can the Internet and Web help you with your fundraising?
How is the overall health of your nonprofit’s fundraising activities?

NOTE ABOUT PERSPECTIVES: As you’ll soon notice, there are many, major different aspects of nonprofit fundraising. There also are many specialists in most of the aspects. Thus, it’s not uncommon that there are very diverse, strong opinions about how fundraising should be done. This module aims to convey the basics and many of the “best practices” in fundraising. Many consultants might have different opinions about some of the perspectives in this module, but most would probably agree with most of the perspectives in this module.

NOTE ABOUT BOARD COMMITTEES: Consider establishing a Board Fundraising Committee to review and guide implementation of key information in this learning module. Major activities and goals from this learning module could be incorporated in that Committee’s
Committee Work Plan.

OUTCOMES

Learn Common Sources of Funding
Understand the Board’s Role in Fundraising
Assess if You’re Ready for Fundraising
Learn Who Should Ask for Money, How Much
Recognize Best Practices in Annual Appeals, Events, Major Gifts and Capital Campaigns
Learn Key Components of Grant Proposals
Draft Your Fundraising Plan
Evaluate Your Fundraising Practices

MATERIALS FOR REVIEW

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

Fundraising Basics

1. What are at least 5 of the 9 aspects of an organization that should be known before doing fundraising, as asserted by the author in Know Your Organization?

2. What are at least 5 of the 9 truths that the author asserts in Nonprofit Fundraising Demystified?

3. What are at least 5 of the major 9 sources of funding described in Overview of Nonprofit Fundraising Sources and Approaches?

4. What are some of the advantages and disadvantages of getting funds from individuals? Foundations? Corporations? Government? (See Overview of Nonprofit Fundraising Sources and Approaches.)

5. If a fundraising campaign is to be successful with an individual, what are the 3 things we must do with the donor? (See Rating and Evaluating Prospects: Whom Do You Ask For How Much.)

Fundraising and the Law

1. The Form 990 asserts that nonprofits must register in each state they are to do fundraising, especially if their budgets are over how much?

Fundraising Leadership

1. What are 3 of the 4 strategies to get the Board involved in fundraising? (See Four Steps to Take Board Members from Fear of Fundraising to Enthusiasm.)

2. What are the 3 myths asserted by the author in Leadership: The Board’s “Mythunderstood” Role in Fundraising?

3. What is the role of the Board’s Fundraising Committee? (See Role of the Nonprofit Board Fundraising Committee.)

Development Staff

1. Who should ask for the money — the hired fundraiser or the Board and staff of the nonprofit? (See Asking For The Money Is The Job Of The Leadership And Friends…)

2. What are at least 2 of the reasons that the activities and responsibilities of fundraising and marketing should not be combined? (See Wearing Those Development and Marketing “Hats” at the Same Time.)

3. Should your nonprofit have a position of Director of Development? If so, should it be part-time or full-time? (See Does Your Organization Need a Director of Development?)

4. Should a Director of Development do fundraising to raise his/her salary? What? (See When The Development Officer Is Obliged To Raise Her Or His Own Salary.)

Grants: Foundation and Corporate

1. What are at least 4 of the 5 things that the author asserts you must describe in a grant proposal, in Grants: Free Money — Not Quite! (Part 1)?

2. What is the importance of reporting back to the funder? (See Grants: Free Money — Not Quite! (Part 2).)

3. What are at least 5 of the major components of a proposal? (See Proposal Writing Short Course.)

Special Events

1. What is a special event? What are at least 4 of the 6 criteria that the author asserts are needed in a special event, in What is a Special Event?

2. What was the major misunderstanding about special events as portrayed in Special Events — So Misunderstood?

3. When is a traditional gala, fancy auction event or cocktail party not the right choice, as asserted by the author in Events to Remember — Events to Forget?

Annual Funds (or Annual Campaign)

1. What is an annual fund or annual campaign? (See Annual Campaigns: Once A Year Every Year.)

2. What are at least 3 of the 4 goals of the campaign, as asserted by the author in Annual Campaigns: Once A Year Every Year?

3. What is the wrong message that the author asserts is too often made in annual funds, in The Annual Fund is Obsolete?

Major Gifts and Planned Giving

1. What are at least 3 of the 4 criteria that needs to be met to qualify as a “major gift,” as asserted by the author in What is a Major Gift?

2. When does the author say is the best time to ask for the money, in Asking For The Major Gift — Part 1 of 3?

3. What phrasing should never be used, as asserted by the author in Asking For The Major Gift — Part 2 of 3?

4. What is the right amount to ask for, as asserted by the author in Asking For The Major Gift — Part 3 of 3?

Capital Campaigns

1. What is a capital campaign? Capital Campaigns – Part #1: What They Are.)

2. What are the phases of a capital campaign? (See Phases of a Capital Campaign.)

3. What are at least 6 of the 12 issues that must be considered to assess if you’re ready for a capital campaign, as mentioned by the author in Capital Campaigns — Part #3: Are You Ready for a Capital Campaign?

Fundraising Online

1. What are 3 kinds of companies that help nonprofits do fundraising online?

2. What are at least 6 of the 10 things that nonprofits should think about if they’re going to do online fundraising? (See Online Fundraising: A Startup Guide.)

Donor Recognition

1. What is the best way to thank a donor?

2. What are at least 3 things that donors want to hear about how their money was spent?

Fundraising Planning (Tying It All Together)

1. What are 5 of the 6 steps to a Fundraising Plan?

Hiring Fundraisers and Paid Solicitors

1. What are 2 reasons why a grantwriter should not be hired based on a contingency fee, that is, based on how much money he or she will raise? (See Do’s and Don’t’s of Hiring a Grantwriter.)

2. What should you look for when hiring a fundraiser or grantwriter — what are at least 3 of the 5 reasons to hire a fundraising consultant? (See Hiring a Consultant: 12 Essential Tips.)

3. What are at least 5 benefits of hiring a fundraising consultant? (See Benefit of Hiring a Fundraising Consultant.)

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.
Write down your answers to the following questions — those answers can be compiled into your Fundraising Plan.

1. Fundraising Preparation

1. Is your organization really ready for fundraising? How do you know?

2. How will the Board be involved? Remember that Board members should be very involved — it’s not just the CEO’s job to raise funds.

3. What will be the role of the Fundraising Committee?

4. Who else will be involved and how?

2. What Are Your Fundraising Goals? How Much Should You Ask For? By When?

1. How much money will your organization ask for? Is it for operating costs or a capital campaign? How did you determine this amount?

2. How much will go to programs, that is, to directly serving clients? How much will go to indirect costs, that is, to administrative overhead?

3. How much will the fundraising activities cost, for example, office supplies, if you hire a fundraising consultant, etc.?

4. By when will you need the money?

3. What Sources Will You Approach? How? When? Who Will Approach Them?

1. What specific funders will you approach and how? Among individuals? Foundations? Corporations? Government?

2. Who will approach each source? It should not just be the CEO who always takes the lead. Perhaps the Board members need to be trained about fundraising — who will do that training?

3. How will you approach each source? Remember that each might prefer to be approached differently — see their guidelines for solicitation. Also remember that startup nonprofits rarely receive grants — they usually get funding from individuals.

4. When will each source be approached?

4. Should You Hire a Fundraiser — and If So

1. Should you hire a fundraiser? If so, then why? If not, they why not?

2. If you decide to approach a fundraiser, what might he/she want to know about your organization?

3. If you hire a fundraiser, how should they be paid? How do you know?

5. How Will You Monitor That Donor Requirements Are Being Met?

1. Major funders, such as foundations and corporations and the government, will want reports about the status of meeting their requirements. How will you ensure those requirements are being met?

2. Who will provide regular reports to the donors?

3. Who will provide donor recognition letters or other forms of communication?

6. Fundraising Software

1. What software might you need to better manage your fundraising efforts? What must you consider when getting this software?

7. Draft Your Fundraising Plan

1. By now, you have already developed the basic components of a broad fundraising plan. You can compile your plan by collecting your answers to the above questions.

2. Obtain board approval of your fundraising plan. (If you have been working with a board committee to answer the questions and conduct the activities suggested in this module, then board approval should be fairly straightforward at this point.)

ASSESSMENTS

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

2. Also see Campaign Assessment and Review: What Was Accomplished and What Was Learned.

3. Also see Evaluating Your Fundraising Knowledge and 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

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 Fundraising (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, 2022March 27, 2023

Managing Your Nonprofit’s Finances and Taxes

Quote Box on Top of Stack of Paper Bills

Free Nonprofit Micro-eMBA Module #8: Managing Your Nonprofit’s Finances and Taxes

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 managing nonprofit finances and taxes.

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

Financial management is a major responsibility of the board
and nonprofit chief executive. It’s not uncommon for nonprofit
founders and chief executives at first to have very limited skills
in financial management. However, they should quickly develop
at least basic skills in financial management, including in the
critical areas of managing operating and program budgets, bookkeeping,
financial controls, cash management, financial statement generation
and analysis. This module will help you understand those critical
areas of financial management, and build the basic systems and
practices needed in a healthy nonprofit organization.

The board has final responsibility for the financial health
of the nonprofit organization. Therefore, it’s critical that new
nonprofits quickly build up the roles of the treasurer and finance
committee. The treasurer and finance committee can be wonderful
assets to the chief executive when managing the finances of the
organization — however, the board members and chief executive
should never completely ignore the finances by leaving them for
the treasurer and other board members to manage. The board’s role
in ongoing governance of the nonprofit finances can include ongoing
review of financial reports during board meetings, approving yearly
budgets and financial statements, approving a set of fiscal policies
(guidelines for managing the nonprofit’s finances), reviewing
results of a yearly audit conducted by an outside auditor, co-signing
checks that are over certain limits and approving contracts.

NOTE ABOUT LEARNING FINANCIAL MANAGEMENT: At first, when learning
financial management, many people might react that the learning
experience seems mostly like filling one’s head with strange concepts
and processes. Typically, the learning process starts with this
experience — it probably isn’t until the learner actually enters
an accounting transaction and analyzes a financial statement that
learning about financial management seems more “real”.
But the learning process almost always starts by reviewing concepts
and processes. Financial management almost always tells the truth
about the situation of a nonprofit — so the learning process
is well worth the effort.

NOTE ABOUT BOARD COMMITTEES: Consider establishing a Board
Finance Committee 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

Financial Management

Learn Basics of Bookkeeping and Finances
Understand Budgeting and Deviation Analysis
Understand Basic Cash Management Practices
Recognize Major Nonprofit Financial Statements
Know Basics of Nonprofit Financial Analysis
Evaluate Your Financial Management Practices

Managing Taxes

Know Key Steps to Apply for Tax-Exempt Status
Access Form to File Form 990
Know When Unrelated Business Income Applies
Know Terms of Lobby and Advocacy
Evaluate Your Tax Management Practices

MATERIALS FOR REVIEW

The following materials will help you address each of
the topics and learning activities in this module.
Note that additional materials for review are associated
next to certain topics and activities listed in this module.

Background Reading

Quickly get a “big picture” view of the aspects of
financial management by scanning the types of topics and their
order at
All
About Financial Management in Nonprofits

Preparation for Financial Management

1. What is fiscal sponsorship? When is it appropriate to consider,
that is, when might it be helpful to someone who is founding a
nonprofit? (See Fiscal Sponsorship.)

2. What is the role of the board treasurer? (See Have a Treasurer to Help You?)

3. What is the role of the finance committee? (See Charter and Work Plan for Board Finance Committee.)

4. What needs to be considered when selecting an accountant?
(See Getting and Using Accounting Services.)

5. What needs to be considered when buying accounting software?
(See Software to Help Manage Your Finances.)

6. What needs to be considered when selecting a banker? What
services might a nonprofit need from a bank? (See Getting and Using Banking Services.)

7. What is the board’s role in financial management? (See Basic Overview of U.S. Nonprofit Financial Management.)

Basics of Accounting

1. What is the accounting cycle? (See Basic Overview of U.S. Nonprofit Financial Management.)

2. What are the elements of an accounting system? (See Elements of Accounting: Assets, Liabilities, and Capital)

3. What is a fiscal policies and procedures manual? (See Sample Financial Procedures Manual.)

Bookkeeping and Financial Controls

1. What general activities are included in bookkeeping? (See
and Basic Overview of U.S. Nonprofit Financial Management.)

2. What is cash-basis vs. accrual-basis accounting? (See Basic Overview of U.S. Nonprofit Financial Management.)

3. What bookkeeping journals might you start out with? (See
Basic Overview of U.S. Nonprofit Financial Management.)

4. What is a Chart of Accounts? (See Basic Overview of U.S. Nonprofit Financial Management.)

5. What is the purpose of financial internal controls? What
are some practices in internal controls (HINT: think about signing
checks, opening mail, how to verify that account totals are accurate,
etc.)? (See Basic Overview of U.S. Nonprofit Financial Management.)

Operating Budget, Cash Management, Credit and Collections,
and Budget Deviation Analysis

1. What is a yearly (or operating or annual) budget? How is
a yearly budget prepared? (See How Do We Prepare a Budget? (scroll
down to this topic).)

2. What is a cash flow and how should cash be managed? (See
What is Cash Flow and How Should
We Manage It?)

3. What is a cash flow statement? (See Nonprofit Cash Flow Statements.)

4. What is a budget deviation analysis? What information is
considered during this analysis? (See Budget Deviation Analysis.)

Managing Program Finances

1. What is a functional or program budget? (See
What is a functional budget?)

2. What are program direct costs?
(See Allocate Direct Costs)

3. What are program indirect costs?
(See What Are Indirect Costs?)

Financial Statements and Analysis

1. What are three major forms of financial statements used
by nonprofit organizations? (See Financial Statements.)

2. What general information is included a Statement of Financial
Position? Statement of Activities? Statement of Cash Flows? (See
Financial Statements.)

3. What can be detected from analysis of a Statement of Financial
Position? Statement of Activities? Statement of Cash Flows? (See
Financial Statements.)

Financial Reporting

1. What reports do the board and management need to see? (See
Financial Reporting.)

2. What information should be included in an annual report?
(See Annual Reports.)

Nonprofit Taxation

1. What does tax-exempt mean? (See Do I Need Help to Get Started?)

2. How does a nonprofit obtain tax-exempt status? (See
How to Become a Tax-Exempt 501(c)(3) Non-Profit Organization.)

3. What is a Form 990? What nonprofits must file this Form
and how often? (See Preparing and Filing Form 990s (including about
public disclosure).)

4. What kind of substantiation does the IRS require for contributions?
(See IRS Requires Substantiating Charitable
Contributions.)

5. What is unrelated business income? How much can you earn
without reporting it? How is it calculated? (See Unrelated Business Income Defined.)

6. How much lobbying can a 501(c)(3) do? Electioneering? (See
Lobbying.)

7. Name at least five of the major considerations the IRS makes
when determining if someone is a contractor or an employee of
an organization. (See Understanding Employee vs. Contractor Designation)

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.

Building Role of Treasurer and Board Finance Committee

1. One of the greatest assets to a chief executive can be the
board treasurer and finance committee. Do you have a board treasurer
and a finance committee? If not, make it a high priority to recruit
a treasurer and organize a board finance committee. (See Your Board Treasurer — A Critical Resource to
Help You Get Started and Charter and Work Plan for Board Finance Committee.)

Bookkeeping and Financial Controls

1. Select the journals with which you will be working. If you
are a small nonprofit that is just starting out, then you’ll likely
only need a cash journal. (See and Basic Overview of U.S. Nonprofit Financial Management.)

2. Will you be using a cash-basis or accrual-basis accounting?
If you’re a small nonprofit, then you’re likely to use the cash-basis
to record transactions and an accrual-basis for generating your
financial statement. (See and Basic Overview of U.S. Nonprofit Financial Management.)

3. Devise a Chart of Accounts. (See How to Design a Scalable Chart of Accounts.)

4. Adopt a preliminary set of financial internal controls.
Consider practices about signing checks, opening mail, verifying
that account totals are accurate, etc.) (See Sample Financial Procedures Manual (find the link to click “here”.)

Designing an Operating (Annual or Yearly) Budget

1. Your operating budget depicts the revenue the nonprofit
expects to earn or be granted, and the expenses it expects to
incur. It also depicts how that revenue will be spent. Budget
development starts from strategic planning. If you completed Module 6: Developing Your Strategic Plan.
then you already have designed a basic yearly operating budget.
If you completed Module 7: Designing and Marketing Your Programs,
then you’ve updated your operating budget to include functional
budgets for each of your programs. If you have not completed these
two modules, you should review information and materials in those
modules to draft a basic operating budget and associated functional
budgets for each of your programs.

2. Obtain authorization of the operating budget (including
functional budgets for each program) by the board. Board members
should receive copies of the operating budget for their review
and authorization in a board meeting. The minutes of the board
meeting should reflect members’ approval of the budget. Approval
indicates that the board expects the nonprofit to operate over
the coming year according to the expected expenses and revenues
depicted in the approved operating budget. Note that if board
members have been involved in previous strategic and program planning,
then their approval of the budgets should be very straightforward
at this point.

Managing Program Finances

1. If you finished the learning modules about strategic planning
and about program design and marketing, then you probably already
have a good sense for the revenue and expenses of each of your
programs. If you have not done so, write a basic functional or
program budget. The board should review and authorize this budget.
(See How Do We Prepare a Budget?)

Financial Statements, Analysis and Reporting

1. At this point, you’re ready to generate a basic Statement
of Financial Position, Statement of Activities and Statement of
Cash Flows. The board should review and authorize these statements.

2. Attempt a basic analysis of these statements and write the
conclusions and recommendations from this analysis. The board
should review the conclusions and recommendations. (See Financial Analysis.)

Nonprofit Taxation

1. Have you obtained “tax-exempt” status from the
IRS? If so, be sure to keep the master copy of the letter safely
stored away. What taxes are you exempt from? (See Frequently Asked Questions About
Applying for Tax Exemption.)

2. Attempt to fill in a Form 990? What information do you need
to complete and file the form? When do you have to file the form?
(See Preparing and Filing Form 990s (including about
public disclosure).)

3. Will you have any unrelated business income? What is the
source of this income? How will you report it? (See Unrelated Business Income Defined.)

4. Does (or will) your nonprofit engage in lobbying can a 501(c)(3)?
How much? Will that be a problem? (See Non-Profit Organizations CAN
Lobby.)

Develop Your Fiscal Policies Manual

1. Now that you’ve considered all of the aspects of financial
and tax management for your nonprofit, you’re ready to compile
a set of policies to ensure that finances and taxes continue to
be managed effectively. Work with the Finance Committee to write
an outline of the content of a fiscal policies manual. The Committee
should adopt an action plan to develop and authorize the necessary
policies for the manual. The manual should be reviewed and authorized
on a yearly basis. (See Basic Overview of U.S. Nonprofit Financial Management.
and Sample Financial Procedures Manual (find the “click here”).)

ASSESSMENTS

1. Conduct a detailed audit of your financial management practices
and internal controls by answering the questions about “Financial
Indicators” in the Checklist of Nonprofit Indicators. List an
action plan to complete items suggested by the audit, but not
done by your organization.

REMINDERS FOR THOSE IN THE ON-LINE DEVELOPMENT PROGRAM

Reminders About You

1. 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?

2. 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.

3. Are you helping others to hold you accountable to your times
that you committed to reading and study in this program?

4. 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

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 Financial Management (Nonprofit):

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

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

Related Library Topics

Recommended Books

January 18, 2022September 21, 2022

Conducting Complete Fitness Test of Your Nonprofit

Free Nonprofit Micro-eMBA Module #12: Conducting Complete Fitness Test of Your Nonprofit

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 assess the health of major aspects of 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 provides a set of extensive checklists that can
be used to assess the health of a nonprofit’s practices in the
areas of legal, governance (board), human resource management,
planning for the organization and programs, financial and tax
management, and fundraising.

If you have completed the various learning modules in the nonprofit
organization development program, then the various checklists
in this module will likely indicate that the practices in your
nonprofit are very healthy.

OUTCOMES

Evaluate Quality of:

Compliance to Laws and Regulations
Board Operations
Supervisory Practices
Strategic, Program and Personnel Planning
Financial Management
Fundraising Practices

MATERIALS FOR REVIEW

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

Organizational
“Fitness” Test – – – including the sections:
– – – How
to Use the Tool
– – – Disclaimer
– – – Legal
Indicators
– – – Governance
(Board) Indicators
– – – Human
Resources Indicators (includes for volunteers)
– – – Planning
Indicators (includes strategic planning, program planning and
program evaluation)
– – – Financial
Indicators
– – – Fundraising
Indicators

The above links are to individual assessments, each about a
particular function. If you would like to do one overall organizational
evaluation that includes all of the functions, see
Nonprofit
Organizational Assessment

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.

1. After identifying which of the 2 or 3 functions need the
most attention (see #1 above) for now, list the activities that
were marked as “Needs Work” in each of those functions,
eg., list the activities that “Needs Work” in Boards.

2. For each of those lists, refer to that list as a “Work
Plan” and assign that Plan to a Board Committee to oversee
that the list is addressed, eg., assign the list of “Needs
Work” in the Board function to a Board Development Committee
or assign the list of “Needs Work” in the finances function
to a Finance Committee to ensure the list is addressed.

ASSESSMENTS

There are no assessments in this section of the module, as
there are in the other modules in the program, because this module
is all about assessments, as provided above.

TRACKING OPEN ACTION ITEMS

1. One of the first indicators that an organization 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, organization members only see and react to the latest
“fires in the workplace”. 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 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 board, management and staff members
in your nonprofit. You can use the following Action Item Planning List.

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.

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

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 Evaluations (Many Kinds):

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

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

Related Library Topics

Recommended Books

January 18, 2022February 24, 2023

Managing Ethics in the Nonprofit Workplace: A Practical Guide for Managers

Free Nonprofit Micro-eMBA Module #13: Managing Ethics in the Workplace

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 practical approaches to managing ethics in the workplace.

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

The management of ethics in the workplace holds tremendous benefits for everyone, benefits both moral — and even practical. This is particularly true today when it is critical to understand and manage highly diverse values in the workplace, and at a time when too many people still feel that business ethics is a topic for philosophy or is about shaming and blaming people. This module aims to make the topic of business ethics very understandable and accessible.

The field of business ethics has traditionally been the domain of philosophers, academics and social critics. Consequently, much of today’s literature about business ethics is not geared toward the practical needs of leaders and managers — the people primarily responsible for managing ethics in the workplace. The most frequent forms of business ethics literature today typically include:

a) philosophical, which requires extensive orientation and analysis;
b) anthologies, which require much time, review and integration;
c) case studies, which require numerous cases, and much time and analyses to synthesize; and
d) extended stories about businesses “gone bad”.

This lack of practical information is not the fault of philosophers, academics or social critics. The problem is the outcome of insufficient involvement of leaders and managers in discussions and literature about business ethics. More leaders and managers must become more involved. This module aims to help address this issue.

Also consider: Related Library Topics

OUTCOMES

Set Up Systems to Manage Ethics, Including:

What is Business Ethics?
Myths About Business Ethics
10 Benefits of Managing Ethics
Ethics Management System
8 Guidelines for Managing Ethics
6 Key Roles and Responsibilities
Codes of Ethics
Codes of Conduct
Ethics Policies and Procedures
Resolving Ethical Dilemmas
Conduct Ethics Training

MATERIALS FOR REVIEW

The following materials will help you address each of the topics and learning activities in this module.
Business Ethics and Social Responsibility — particularly the sections:

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.

1. Draft a code of ethics for your organization. Remember to include examples of preferred behaviors with each of the values in your code of ethics. Present the code to your board, explain its purpose and how you’d like to use it, e.g., to discuss it with staff members, post it throughout your organization and renew
it annually. (See Ethics Tools: Codes of Ethics and Ethics Tools: Codes of Conduct).

2. Pose an ethical dilemma (from the reviewed materials) to the staff and walk them through application of one of the three methods to resolve ethical dilemmas (these methods are included in the materials, as well). (See Ethics Tools: Resolving Ethical Dilemmas.)

3. Refer to your mental list of the mostly likely ethical dilemmas to occur in your organization. Would these potential dilemmas be addressed by current policies and procedures? Note what policies and procedures need to be added (included yearly review of your code of ethics) and propose them to a local personnel expert. Update your policies handbook and explain the additions to all organization members. (See Ethics Tools: Policies and Procedures.)

ASSESSMENTS

Culture is comprised of the values, norms, folkways and behaviors of an organization. Ethics is about moral values, or values regarding right and wrong. Therefore, cultural assessments can be extremely valuable when assessing the moral values in an organization.

Assessing and Cultivating Ethical Culture

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 organization development program can return to the home page of the organization development program.)

For the Category of Ethics:

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 23, 2022

Guidelines and Framework for Developing a Basic Logic Model

People Having Conversation Looking at a Laptop Screen

Guidelines and Framework for Designing Basic Logic Model

Also consider
Related Library Topics

Description

The following framework can be filled in by readers to design a logic model (or diagram) for their organization and for each of its programs. Guidelines and examples are provided to help the reader.

Purpose of a Logic Model

A logic model is a top-level depiction the flow of materials and processes to produce the results desired by the organization or program. The model can be very useful to organize planning and analysis when designing the organization and its programs or when designing outcomes-based evaluations of programs. It can also be useful for describing organizations and programs (for example, in grant proposals).

What to Include and What Not to Include

Logic models can be in regard to whatever application in which the designer chooses to use them. However, when using logic models to analyze or describe organizations and programs, it’s often best to use logic models to depict major, recurring items in the organization or programs — rather than one-time items. For example, you might not choose to do a logic model for the one-time, initial activities to build an organization or program (constructing the building, registering with state and federal authorities, etc.). However, you might benefit more from using logic models to analyze and describe the major, recurring activities that occur in the organization or program (once they’re built) to continue to produce the results desired for clients and the community.

Size and Level of Detail

The logic model should be of a size that readers can easily study the model without extensive reference and cross-comparisons between pages. Ideally, the logic model is one or at most two pages long. The level of detail should be sufficient for the reader to grasp the major items that go into an organization or program, what occurs to those inputs, the various outputs that results and the overall benefits/impacts (or outcomes) that occur and to which groups of people.

Note the content of program logic models is often more specific than models for organizations. This level of specificity is often quite useful for program planners.

Definitions of Basic Terms

Logic models typically depict the inputs, processes, outputs and outcomes associated with an organization and its programs. Don’t be concerned about your grasping the “correct” definition of each of the following terms. It’s more important to have some sense of what they mean — and even more important to be consistent in your use of the terms.

Inputs

These are materials that the organization or program takes in and then processes to produce the results desired by the organization. Types of inputs are people, money, equipment, facilities, supplies, people’s ideas, people’s time, etc. Inputs can also be major forces that influence the organization or programs. For example, the inputs to a nonprofit program that provides training to clients might include learners, training materials, teachers, classrooms, funding, paper and pencils, etc. Various laws and regulations effect how the program is conducted, for example, safety regulations, Equal Opportunity Employment guidelines, etc. Inputs are often associated with a cost to obtain and use the item — budgets are listings of inputs and the costs to obtain and/or use them.

Processes (or Activities or Strategies or Methods)

Processes are used by the organization or program to manipulate and arrange items to produce the results desired by the organization or program. Processes can range from putting a piece of paper on a desk to manufacturing a space shuttle. However, logic models are usually only concerned with the major recurring processes associated with producing the results desired by the organization or program. For example, the major processes used by a nonprofit program that provides training to clients might include recruitment of learners, pretesting of learners, training, post-testing and certification.

Outputs

Outputs are usually the tangible results of the major processes in the organization. They are usually accounted for by their number, for example, the number of students who failed or passed a test, courses taught, tests taken, teachers used, etc. Outputs are frequently misunderstood to indicate success of an organization or program. However, if the outputs aren’t directly associated with achieving the benefits desired for clients, then the outputs are poor indicators of the success of the organization and its programs. You can use many teachers, but that won’t mean that many clients were successfully trained.

Outcomes

Outcomes are the (hopefully positive) impacts on those people whom the organization wanted to benefit with its programs. Outcomes are usually specified in terms of:
a) learning, including enhancements to knowledge, understanding/perceptions/attitudes, and behaviors
b) skills (behaviors to accomplish results, or capabilities)
c) conditions (increased security, stability, pride, etc.)

It’s often to specify outcomes in terms of short-term, intermediate and long-term.

Basic Example of a Logic Model

The following example is intended to further portray the nature of inputs, processes, outputs and outcomes.

The logic model is for an organization called the Self-Directed Learning Center (SDLC).

Logic models for programs are often more detailed.

Inputs

Free articles and other publications on the Web
Collaborators
Free Management Library
Funders
Self-directed learners·
Volunteers
Computers
Web
Supplies

Processes

Provide peer-assistance models in which learners support each other
Provide free, online training program: Basics of Self-Directed Learning
Provide free, online training program: Basic Life Skills
Provide free, online training program: Passing your GED Exam

Outputs

30 groups that used peer models
100 completed training programs
900 learners who finished Basics of Self-Directed Learning
900 learners who finished Basic Life Skills
900 learners who passed their GED to gain high-school diploma

Short-Term Outcomes

high school diploma for graduates
improved attitude toward self and society for graduates
improved family life for family of graduates

Intermediate Outcomes

full-time employment for learners (in job that required high-school education)
increased reliability and improved judgment of learners
enhanced publicity and public relations for SDLC

Long-Term Outcomes

independent living for learner (by using salary to rent apartment)
strong basic life skills for learner
improved love life for learner who’s now in a relationship
increased likelihood and interest for learner to attend college

Logic Model For

Organization (Name)
Or Product (Name)

Inputs

Processes

Outputs

Short-Term Outcomes

Intermediate Outcomes

Long-Term Outcomes

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, 2022March 29, 2023

Building and Maintaining an Effective Nonprofit Board of Directors

Business people sitting round a desk in a meeting

Free Nonprofit Micro-eMBA Module #5: Building and Maintaining an Effective Board of Directors

© Copyright Carter McNamara, MBA, PhD, Authenticity Consulting, LLC.
Much of this program is based on materials adapted from the Nonprofit Capacity Building Toolkit(SM). Much of the content of this module was adapted from the guidebook, Field Guide to Develop and Operate Your Nonprofit Board of Directors.

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 building and maintaining a board of directors.

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

If you are an incorporated nonprofit, it’s very likely that you have already at least the beginnings of a board of directors. Theory and law dictate that the board of directors is responsible to govern your organization. Typically, new boards of directors in a new organization work hands-on, almost as partners — or as a “working board” — with the chief executive. A wise CEO will see Board members almost as strategic partners, rather than as a necessary evil that corporations must have.

It’s not uncommon, especially for new organizations, to act as if they are lucky even to have anyone on their board. Wrong! You deserve — and should always expect — to have a very participative board that, no matter how hands-on they are at first, also attend to major decisions about the organization. Completion of this module will ensure that your board has the necessary components, policies and practices in place from which to develop a healthy governing board.

Note that you, as a learner in this program, can greatly enhance the development of your board by continuing to involve board members in discussions about topics and questions posed by this program.

NOTE ABOUT THE ORDER OF MODULES (AND SOME DUPLICATION WITH PREVIOUS MODULE ON ROLE OF CHIEF EXECUTIVE OFFICER): : The modules about starting an organization and about the role of chief executives briefly mention certain activities in regard to building a preliminary board of directors — there is a little bit of necessary duplication between these two modules. This module helps the learner to round out the board of directors and ensure they are fully functioning for the organization.

NOTE ABOUT BOARD COMMITTEES: Consider establishing a Board Development Committee (or Board Governance Committee) 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 Sample Committee Work Plan.

NOTE ABOUT “CORPORATE” NONPROFITS: A nonprofit organization is wise to file in its state to be a corporation. The vast majority of nonprofits that get tax-exempt and/or charitable status with the Internal Revenue Service (in the United States) have corporate status. So understand that the term “corporate” on this page refers to nonprofit corporations.

Also consider
Related Library Topics

OUTCOMES

Understand Roles and Responsibilities of a Board
Adopt Board Policies
Build Board Committees
Recruit New Board Members
Ensure Strong Participation of Board Members
Prepare for Board and CEO Evaluations
Build Board Calendar to Schedule All Operations
Organize a Board Manual
Train Board Members
Assess the Health of Your Board Practices

MATERIALS FOR REVIEW

The following materials will help you address each of the topics and learning activities in this module.
NOTE: There are many materials included for review in this section. However, you do NOT need to review all of them in detail.
a) You do not need to follow links out of the following documents
b) You do not need to follow links in “Also see” sections
c) You do not need to review any materials marked as “nonprofit”

Board Roles and Responsibilities

Board Operations

Board Operations and Systems (read introductory paragraph)
- Depiction of “System” of For-Profit Board
- Sample Board Operations Calendar (read all)

Documents — Charter/Constitution/Articles, Operating Rules, Policies, etc.

Staffing the Board

Staffing the Board

Ensuring Successful Committees

Forming Board Committees

Ensuring Successful Meetings

Board Meetings General Guidelines

Evaluating the Board

Evaluating the Board and Members (read introductory paragraphs)
- Board of Directors Self-Evaluation (read all)
- Self Evaluation (read all)

Board and Staff Relations

Board and Staff Relations (read all)

Evaluating CEOs

Evaluating the CEO

Board Roles and Responsibilities

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 Overview of Roles and Responsibilities of Corporate Board of Directors.)

2. To whom is a board of directors responsible, that is, to whom do they “report”? (See Overview of Roles and Responsibilities of Corporate Board of Directors.)

3. What is the board chair responsible for? Vice chair? Secretary? Treasurer? (See Sample Job Descriptions for Members of Boards of Directors.)

4. Test your knowledge of the roles of board and staff by completing the table at Board and Staff Responsibilities — Test Your Knowledge. Be sure to compare your answers to the table at Board and Staff Responsibilities .

Board Operations

1. What are the recurring major activities of a board of directors? (See Sample Board Operations Calendar.)

2. What are some of the recurring yearly activities that a Board should do? (See Sample Board Operations Calendar.)

3. What are at least five ideas to generate and sustain strong participation of board members? (See Ideas to Generate Participation in Committees.)

Board Policies

1. What is the purpose of board policies? (See Board Policies.)

2. What is the purpose of board bylaws? (See Corporate Bylaws.)

3. What is a board manual? Name as many board manual contents as you can. (See Sample Contents of Board Member’s Manual.)

4. What is a board resolution? (See Board Resolutions.)

Board Staffing (Recruiting, Orienting, Training, Informing)

1. What is the most important consideration when you set out to recruit new members to your board? (See Guidelines for Recruiting New Board Members.)

2. How many guidelines can you name for orienting employees? (See Orienting New Members to Boards of Directors.) Informing them on a regular basis? (See How Do We Keep Board Members Informed?)

3. How should you train your Board members? (See Basic Guidelines and Sample Agenda for Board Training Session.)

4. What should you consider when deciding the compensation to your Board members? (See Compensating Board Members.)

5. What’s involved in removing board members? (See Removing Members.)

Board Committees

1. What is the purpose of a board committee? (See Typical Types of Board Committees.)

2. What is a standing committee? Ad hoc committee? When should each type be used? (See Typical Types of Board Committees.)

3. How many committees can you name and what is the purpose of each? (See Typical Types of Board Committees.)

4. What is an advisory group (or committee or board)? (See Guidelines to Form and Advisory Group.)

5. What is a work plan for a committee? (See Sample of a Board of Directors Committee Work Plan.)

6. Can you name at least 4 of the ideas to generate participation in committees? (See Ideas to Generate Participation in Committees.)

Board Meetings

1. What is a board meeting agenda? How are they developed? (See Sample Board of Directors Meeting Agenda.)

2. What is the purpose of board meeting minutes? What should be included in the minutes? (See Basic Sample of Board of Directors Meeting Minutes.)

Board Evaluations

1. How does the board evaluate itself? What is considered during the evaluation? How often should the board evaluate itself? (See Board of Directors Self-Evaluation and Evaluating the Board of Directors.)

2. How does the board evaluate the chief executive officer? (See Guidelines for Board of Directors Evaluation of Chief Executive and Sample Form for Board’s Evaluation of the Chief Executive.)

Special Topic — Board Liabilities

1. Is your board aware of any potential liabilities? Should your board members consider getting any certain forms of insurance? (See Some Legal Considerations for Board Members and Insurance Against Liability.)

2. What are the ramifications of the Sarbanes–Oxley Act for your company? (See Sarbanes–Oxley Act.)

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.
Note that the roles of your board and employees will become more clear as you complete strategic planning and product planning later on in this program.
As you proceed through the following activities, be sure to note any incomplete actions in the Action Item Planning List.

Specify Your Board’s Roles and Responsibilities

1. Clarify what your board will be doing and what your staff will be doing. Complete the Board and Staff Responsibilities — Test Your Knowledge according to the wishes of your board. You can compare your preferences to those suggested in the table at Board and Staff Responsibilities.

Authorize Up-to-Date Board Policies

1. Adopt an up-to-date and acceptable set of bylaws. Before the next meeting, the board chair and CEO should write a memo that highlights important points from the current bylaws. Or, they might make marks in the margin of the current bylaws as means to highlight important points. Include these highlights in the board packet of information that gets sent to each board member before the next meeting. Set aside 20 minutes in an upcoming board meeting to collect feedback about the current bylaws. Consider board resolutions to make any changes to the bylaws. Once changes have been made, consider a resolution to formally adopt the bylaws. (See Corporate Bylaws.)

2. What board policies will you need? Draft — and carefully enforce — a policy for board attendance. (See Board Attendance Policy (Sample).)

3. What other policies are required by Sarbanes–Oxley? Role of Audit Committee? Whistleblower? Document Retention/Destruction? (See The Sarbanes-Oxley Act and Implications for Nonprofit Organizations.)

Organizing Your Board Committees (Includes Recommendations)

1. What board committees should you have? You should have at least an executive committee that can meet between board meetings, if necessary. This committee could be comprised of chairs of other committees and/or officers of the board. To identify other needed committees, carefully consider the types of major issues that your organization faces and any strategic goals to be accomplished over the next year. What is the nature of these goals and issues, for example, audit, compensation, financial, board development and personnel? If possible, establish committees for each of the major types of issues and goals faced by our organization. (NOTE: See the following recommendations regarding board committees.) (See Typical Types of Board Committees.)

Recommendation: Establish the Following Initial Board Committees

1. Strongly consider establishing at least the following board committees. Each of the following committees can help you accomplish major sections of this Online For-Profit Organization development program. Each of the following committees should have its own work plan. The work plan should include goals to accomplish the major activities specified in the associated sections of this online program.

Strongly Suggested Standing Committees to Have:

a) Executive Committee — This committee can be comprised of chairs from other committees and/or officers of the board. (See Role of the Executive Committee.)
b) Board Governance Committee — This could be done by the executive committee for now. This committee also could include nominating, orienting and training new board members. (See Board Governance Committee.)
c) Marketing Committee — This committee helps to clarify whom programs can serve, pricing, collaborators, etc., along with getting the word out about the nonprofit.
d) Finance Committee — This committee is almost a requirement, so that board members take a strong role in understanding and approving finances.
e) Fundraising Committee — However, not all nonprofits need fundraising. (See Role of the Nonprofit Fundraising Committee.)

Other Standing Committees to Consider:
f) Personnel Committee (this committee can help with policies about volunteers, too)
g) Programs Committee (this can help with clarifying program goals and outcomes, and educating the board about programs)

Note that you will probably have much clearer idea about what committees to have when you get done with your strategic planning in an upcoming module. (See Description of Typical Committees.)

2. Quickly establish work plans for your committees. As soon as your board has approved the new organization of committees, be sure that each committee sets about to develop its own work plan. Using a work plan is one of the best ways for committees to stay effective and engaged. (See Sample of a Board of Directors Committee Work Plan.)

Staff Your Board With Needed Skills

1. Identify what skills are now needed by your board. Again, consider the nature of major issues and goals currently faced by your organization. Also reference the Sample Board of Directors Recruitment Grid. Write down what skills are needed.

2. Develop procedures for recruiting and orienting board members. Include steps to recruit members, orient members, get completed applications from board candidates and elect new members. Consider information in Guidelines for Recruiting New Board Members, Orienting New Members to Boards of Directors and Sample Board Application Form. Have the entire board review the procedures for acceptance and authorization.

3. Use your new procedures to begin recruiting new board members. (The size of the board is usually specified in the bylaws. You can recruit enough members to reach this size. If the size needs to be changed, consider a resolution to modify the bylaws.)

Ensure Strong Participation of Board Members (Board Meetings)

1. Get board packets out to members at least a week before each meeting. One of the clearest indicators to board members that the organization is not taking them seriously is if they don’t get materials in time for adequate review before board meetings. Write a procedure for your staff to always send out a packet of meeting-preparation information to board members at least one week before the next board meeting. In the packet, include at least the following:

a) agenda for the upcoming meeting
b) report from the chief executive about major accomplishments and current issues and plans over the next two months
c) financial reports, including at least a budget report and cash flow statement
d) materials that can help board members act on any major decisions expected from them in the next meeting

2. Expect nothing less than full (or excused) absence from meetings. What kind of attendance are you getting to current board meetings? Are you regularly getting at least a quorum of members? (The quorum is the minimum number of members that must be present in a meeting for that meeting and its processes to be considered official. The quorum is usually specified in the bylaws.) If you are not getting strong attendance, then be sure to enforce a Board Attendance Policy (Sample). If you don’t enforce this policy, then you have a major problem — the problem is that you aren’t taking it seriously to expect and pursue a strong board of directors.

3. The board’s worst enemy — the “numb out” factor. One of the first signs that a board is in trouble is when members have opinions that they don’t express during meetings. If you find yourself sitting in a board meeting and realize you have “numbed out”, then you’re not doing your duty as a board member. Do you need to follow any of the guidelines in Ideas to Generate Participation in Committees?

Ensure Your Board and Chief Executive are Really(!) Effective

1. Establish a procedure for regular board self-evaluations. Don’t just “go through the motions” and not evaluate whether the board is really effective or not. How does your board evaluate itself now? Do you have a procedure that has been accepted and authorized by board members? Is your board evaluating itself on a regular basis? The board should conduct evaluations on a yearly basis, or at least every two years. If the board isn’t evaluating itself on a regular basis, then make this point to discuss in an upcoming meeting. Consider information in Board of Directors Self-Evaluation and Evaluating the Board of Directors.

2. Establish a procedure to evaluate the chief executive on a regular basis — preferably once a year. Don’t just “go through the motions” and not evaluate whether the chief executive officer is really effective or not. Does your board evaluate your chief executive officer? How often? How are the results used? If you are not evaluating the chief executive on a regular basis, then why not? Make this a point to discuss in an upcoming meeting. Consider information in Guidelines for Board of Directors Evaluation of Chief Executive and Sample Form for Board’s Evaluation of the Chief Executive.

Clearly Communicate What Your Board Does (Board Operations)

1. Establish a calendar of the recurring major activities to be conducted by your board each year. The calendar should be accepted and authorized by the board. Consider information in the Sample Board Operations Calendar.

Ensure Adequate Protection from Liabilities

1. Conclude what insurance you do and don’t need for board members. Is your board aware of any potential liabilities? Should your board members consider getting any certain forms of insurance? Consider information in the Legal and Insurance Considerations for Board Members and Overview of Liability Insurance (including Directors’ and Officers’ Insurance).

Build a Board Manual for Each Board Member

1. Ensure that each board member has a policies manual that contains at least the following policies and materials. (See Sample Contents of Board Member’s Manual):

a) Description of roles and responsibilities of your board. (See Overview of Roles and Responsibilities of Corporate Board of Directors.)

b) Job descriptions for each board member and officer position. (See Sample Job Descriptions for Members of Boards of Directors.)

c) Descriptions of your board committees, their overall responsibilities and work plans. (See Typical Types of Board Committees.)

d) Policies for recruiting new members, orienting them, informing them and removing them. (See Joining, Recruiting, Orienting, Informing, Removing Board Members.)

e) Your board meeting attendance policy. (See Board Attendance Policy (Sample).)

f) Procedure for evaluating your board of directors. (See Board of Directors Self-Evaluation.)

g) Procedure for evaluating your chief executive officer. (See Guidelines for Evaluating the Chief Executive.)

h) Sample meeting agendas and board meeting minutes. (See Sample Board of Directors Meeting Agenda and Basic Sample of Board of Directors Meeting Minutes.)

i) Copies of your articles of incorporation (if applicable) and bylaws.

j) Copy of your strategic plan (if applicable).

k) Board operations calendar.

Train Board Members to Be Highly Effective (Board Training
Session)

1. Conduct a board training session to ensure each board member fully understands their role and has the necessary resources to carry out their role. Review information in the document Basic Guidelines and Sample Agenda for Board Training Session. Now draft a training session agenda that specifies the topics that will be covered in the session, who will address each topic and how. Schedule and carry out the training session.

ASSESSMENTS

Consider any or all of the following assessments as means to evaluate the health of your board of directors.

1. Board of Directors Self-Evaluation

2. Governance Indicators (Best 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. 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 organization development program can return to the home page of the organization development program.)

For the Category of Boards of Directors:

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 16, 2023

Nonprofit Board and Staff Responsibilities — Test Your Knowledge

Board and Staff Responsibilities —
Test Your Knowledge

Use the following table to test your
knowledge of the differences between the roles of the board and
staff of a nonprofit organization. Under the column titled “Responsibility”,
note if the activity is:
Board
Staff
Joint

Then compare your answers to the table
at Board and Staff Responsibilities.

Activity

Respon-
sibility

PLANNING:

Director the process of planning	\|
Provide input to long range goals	\|
Approve long range goals	\|
Formulate annual objectives	\|
Approve annual objectives	\|
Prepare performance reports on achievement of goals and objectives	\|
Monitor achievement of goals and objectives	\|

PROGRAMMING:

Assess stakeholder (customers, community) needs	\|
Train volunteer leaders (nonprofit-specific)	\|
Oversee evaluation of products, services and programs	\|
Maintain program records; prepare program reports	\|
Prepare preliminary budget	\|
Finalize and approve budget	\|
See that expenditures are within budget during the year	\|
Solicit contributions in fundraising campaigns (nonprofit-specific)	\|
Organize fundraising campaigns (nonprofit-specific)	\|
Approve expenditures outside authorized budget	\|
Insure annual audit of organization accounts	\|

PERSONNEL:

Employ Chief Executive	\|
Direct work of the staff	\|
Hire and discharge staff member	\|
Decision to add staff	\|
Settle discord among staff	\|

COMMUNITY RELATIONS:

Interpret organization to community	\|
Write news stories	\|
Provide organization linkage with other organizations	\|

BOARD COMMITTEES:

Appoint committee members	\|
Call Committee Chair to urge him/her into action	\|
Promote attendance at Board/Committee meetings	\|
Recruit new Board members	\|
Plan agenda for Board meetings	\|
Take minutes at Board meetings	\|
Plan and propose committee organization	\|
Prepare exhibits, material and proposals for Board and Committees	\|
Sign legal documents	\|
Follow-up to insure implementation of Board and Committee decisions	\|
Settle clash between Committees	\|

For the Category of Boards of Directors:

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

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

Related Library Topics

Recommended Books

January 18, 2022February 8, 2023

Developing Your Strategic Plan

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

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 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 cycles 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 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 to do 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 is 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

Learners who complete this module will achieve the following outcomes:

Decide if You Are an Entrepreneur
Answer: You Have Right Planning and Financial Skills?
Answer: What Human Resources Will You Need?
Articulate Your First Products and Markets
Verify If Those Markets Really Exist
Identify Best Approaches to Pricing
Answer: How Much Money Will You Need?
Draft Your First Strategic and/or Business Plan

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 customer 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 Statements.
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. See 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. See 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. Strategic Planning Assessment for Businesses

2. The following link is to several approaches to evaluate strategic planning.
Monitoring Implementation, Evaluating Implementation

REMINDERS FOR THOSE IN THE 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 Organization?”

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

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 organization development program can return to the home page of the 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 Business

Framework for a Basic Strategic Plan Document for a Business

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 organization (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
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(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
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(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:*
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*Staff for Products [insert name!!]: (have a section for each product)*
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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
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TOTAL REVENUE
EXPENSES
*Central Administration — Personnel:*
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Total Central Administration — Personnel Costs:
*Central Administration — Facilities:*
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Total Central Administration Facilities Costs:
*Central Administration — Equipment:*
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Total Central Administration Equipment Costs:
*Central Administration — Marketing and Promotions:*
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Total Central Admin. Marketing & Promotions Costs:
*Other Expenses:*
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Total Central Admin. Other Expenses/Costs:
*Product A — Personnel:*
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Total Product A — Personnel Costs:
*Product B — Other Expenses:*
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Total Product B — Other Expenses/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:
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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.

Staff Position	Year 1	Year 2	Year 3
*Central Administration, General Operating Activities:*
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*Staff for Products [insert name!!]: (have a section for each product)*
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Plan’s section, goals, etc.	Completion date	Respon- sibility	Written description of results to:
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Free Micro eMBA — How to Provide the Program for Nonprofits

You Can Provide Program with Little in Expertise or Resources!

Sections of This Document Include the Following

Primary Considerations in Setting Up Any Development Program

How Peer-Training Groups Make It Easy to Provide the Program

Peer-Training Incorporates State-of-the-Art Methods of Adult Development

Before Peer-Training Begins, Sponsor Markets Program and Recruits Learners

How the Peer-Training Process Works

Resources to Guide the Peer-Training Process

Suggested Number of Meetings Per Learning Module

NOTES:

Regarding Verification and Certification of Learning

Ultimately, It’s Up to the Program Sponsor/Provider to Determine

Objective Criteria That Could Be Considered for Evaluation of Learning

Subjective Criteria That Could Be Considered for Evaluation of Learning

For the Category of Personal Development:

Free Micro e-MBA Module #9: Basics in Developing Your Fundraising Plan

Sections of This Module Include the Following

INTRODUCTION

OUTCOMES

MATERIALS FOR REVIEW

SUGGESTED TOPICS FOR REFLECTION AND DISCUSSION

Fundraising Basics

Fundraising and the Law

Development Staff

Grants: Foundation and Corporate

Special Events

Annual Funds (or Annual Campaign)

Major Gifts and Planned Giving

Capital Campaigns

Fundraising Online

Donor Recognition

Fundraising Planning (Tying It All Together)

Hiring Fundraisers and Paid Solicitors

ACTIVITIES TO BUILD SYSTEMS AND PRACTICES

1. Fundraising Preparation

2. What Are Your Fundraising Goals? How Much Should You Ask For? By When?

3. What Sources Will You Approach? How? When? Who Will Approach Them?

4. Should You Hire a Fundraiser — and If So

5. How Will You Monitor That Donor Requirements Are Being Met?

6. Fundraising Software

7. Draft Your Fundraising Plan

ASSESSMENTS

REMINDERS FOR THOSE IN THE ON-LINE DEVELOPMENT PROGRAM

TRACKING OPEN ACTION ITEMS

For the Category of Fundraising (Nonprofit):

Free Nonprofit Micro-eMBA Module #8: Managing Your Nonprofit’s Finances and Taxes

Sections of This Module Include the Following

INTRODUCTION

OUTCOMES

MATERIALS FOR REVIEW

Background Reading

Understanding the Basics and Getting Ready

Activities in the Yearly Accounting Cycle

Nonprofit Taxation

SUGGESTED TOPICS FOR REFLECTION AND DISCUSSION

Preparation for Financial Management

Basics of Accounting

Bookkeeping and Financial Controls

Operating Budget, Cash Management, Credit and Collections, and Budget Deviation Analysis

Managing Program Finances

Financial Statements and Analysis

Financial Reporting

Nonprofit Taxation

ACTIVITIES TO BUILD SYSTEMS AND PRACTICES

Building Role of Treasurer and Board Finance Committee

Bookkeeping and Financial Controls

Designing an Operating (Annual or Yearly) Budget

Managing Program Finances

Financial Statements, Analysis and Reporting

Nonprofit Taxation

Develop Your Fiscal Policies Manual

ASSESSMENTS

REMINDERS FOR THOSE IN THE ON-LINE DEVELOPMENT PROGRAM

Reminders About You

TRACKING OPEN ACTION ITEMS

For the Category of Financial Management (Nonprofit):

Free Nonprofit Micro-eMBA Module #12: Conducting Complete Fitness Test of Your Nonprofit

Sections of This Module Include the Following

INTRODUCTION

You Can Provide Program with Little in Expertise
or Resources!

Primary
Considerations in Setting Up Any Development Program

Peer-Training Incorporates State-of-the-Art Methods
of Adult Development

Before Peer-Training Begins, Sponsor Markets Program
and Recruits Learners

Objective Criteria That Could Be Considered for Evaluation
of Learning

Subjective Criteria That Could Be Considered for Evaluation
of Learning

SUGGESTED TOPICS FOR REFLECTION
AND DISCUSSION

Operating Budget, Cash Management, Credit and Collections,
and Budget Deviation Analysis

ACTIVITIES TO BUILD SYSTEMS AND
PRACTICES

SUGGESTED TOPICS FOR REFLECTION
AND DISCUSSION

ACTIVITIES TO BUILD SYSTEMS AND
PRACTICES