Fundraising: "We do good" is not enough.

As a grant writer and fundraiser, I spend a lot of time coaching nonprofit leaders and program staff  on the fund development process. More often than not, I am confronted by individuals who believe that simply because they are "doing good" prospective donors and grantmakers should willing give to support their work. But since there are countless individuals and nonprofits doing good, "doing good" is not enough to make donors want to give to any cause. This is particularly true among grantmakers who constantly receive requests from individuals and nonprofits who do good.

To make your donation request standout among the countless do-gooders submitting grant proposals or soliciting major donors, keep these tips in mind:

• Cultivate a relationship with the prospective donor. People give people money. If the prospective donor doesn't know you (your organization), your chances of you securing a donation are greatly reduced -- particularly if you are competing with causes with they know well.  

• Use data to prove a need exists. Your personal opinion is not enough to demonstrate a need.  For example, just because you think there are "a lot" of pregnant teenagers doesn't make it so. Seek out third party data sources to support your hypothesis. You may find that there is teen pregnancy epidemic among a particular group in or in particular geographic area. You may also find that teen pregnancy isn't an major issue after all. Use the data to develop an effective and efficient program by targeting it to meet the actual need.

• Establish clearly defined goals and measurable objectives. Activity alone does not equate to impact or success. You should know in advance what success looks like. Develop monitoring and data gathering systems to be used for ongoing and post-grant performance evaluation. 

Are you thinking of starting a nonprofit? Is your nonprofit seeking new funding? Do you have questions or need some general advice? If you answered yes to any of these questions, schedule a FREE 30 minute consultation by clicking this link and completing the form at the bottom of our Contact Us page.

Can a Do-Gooder Keep It Real? Yes She Can!

As someone who loves all things nonprofits, I read a lot of nonprofit news. I come across many profile pieces on nonprofit leaders. Despite the intent to provide the reader an opportunity to get to know the leader, most pieces fall short. That is why I was so impressed and pleasantly surprised when one of my Google Alerts delivered a wonderful article profiling Ms. Kathleen Spears, president and CEO of Cancer Support Community Central Indiana. 

In the piece, you get a true sense of who Ms. Spears is, not only as a nonprofit leader but as a woman. I loved the fact that she didn't sugar coat her experience by suggesting that running a community center where a crisis can strike at anytime of the day or night is an easy job or one that always leaves her smiling. 

Her comment about nights feeling so sad and so drained that she pours a glass of wine and sits at home and cries brought back similar nights I've had over my nonprofit career. Doing good isn't easy. If it were, any and everybody would be doing it. She goes on to speak candidly about the fact that some people take issue with the salaries nonprofit executives earn, and she's even transparent about her fears regarding not being available for love. 

As women, we can sometimes allow concerns about what others might think to prevent us from being our authentic selves -- especially when we'll be featured in an article that hundreds, thousands or even millions of people may read. I'm so appreciative of and so impressed with Ms. Spears for being authentic in the piece. In doing so, she makes it possible for more of us to be our true selves.

Photo: Kelly Wilkinson / The Star

My Blog's new name and new attitude -- Do Good.

As a nonprofit consultant, I wanted to start a blog to share my experience as a consultant and to provide useful information and tips to others who want to change the world (whether in their community or around the globe) by doing good. I wanted to blog "well" so before I got started, I invested time reading blogs of other consulants and like-minded people. Then I wrote my first post. It was ok, so I wrote another. It was good, so I wrote a few more. They were better than the first. Each post (I hope) did what I had set out to do: share my experience and provide useful information and tips. But each time I would sit down to write a post, it felt like a chore. I spent a lot of time and effort worrying if the post read like those of other bloggers. Eventually, weeks and sometimes months went by between my posts. Then I realized the problem... My blog posts weren't flowing because I had made myself a puppet and the bloggers I follow ventriloquists! How did this happen? My words but not my voice. I was shocked and disappointed. Then I made a change. As of today, the blog formerly known as "The Word Woman at Work" is now "Change the world. Do Good." This title better defines my philosophy on life and the things I desire to write about. So brace yourself, my fellow Do-Gooder! I'm no longer operating in a box, so expect my future posts to be informative but fun, engaging, and occassionally a bit shocking. Isn't changing the world fun, engaging, and occassionally a bit shocking? Until my next post....Keep doing good!

Nonprofit Startups Beware of Online Service Providers

Many nonprofit startups seek the support of on-line service providers to prepare and process their corporate documents and to apply for tax-exempt status. Though the hands-off approach to starting a nonprofit may appear to be the easiest and best approach, there are risks -- especially for applicants with little or no knowledge about the documents.

I recently met with a new client who unfortunately had used an on-line service provider to prepare the IRS form necessary to secure tax-exempt status (Form 1023). During our meeting, I reviewed the form with her. We were both shocked to discover many issues with it, including the fact that the form was outdated! The IRS's most recent update to the form was in 2012; however, the form the on-line provider used was the 2006 version.

Even the fees were out of date!

There are two fee categories on the IRS Form 1023. The lesser fee is for small groups that will earn less than $10,000 annually. This fee is for nonprofits that will stay small and typically never hire staff. A good example is the Parent Teacher Association (PTA) at a public school. The higher fee is for nonprofits that plan to grow -- adding programs and staff over time. Though my new client's business model fits the higher fee category, the on-line provider prepared her form at the lower fee.

In further discussing the form and the process the on-line provider used to prepare it, I was shocked to discover that she'd only had a short conversation with the representative who did not go through each question with her. In fact, she was only asked four or five questions to complete the multi-page application that includes financials. In reviewing the financial section, we discovered that it too was incorrect.

Though automated service providers offer expedited processing, they could cost a startup both time and money in the long run. Having a consultant who can provide personalized services is invaluable to any nonprofit but especially a startup. And when it comes to document preparation, the fees charged by on-line providers are generally about the same if not more than those charged by a consultant. A consultant not only provides customized services to meet the specific needs of each client, a startup can benefit from the natural learning that takes place during discussions with the consultant during document development process.

Board Governance: Is your baby protected?

You may be wondering what protecting a baby has to do with board governance. Well, a nonprofit is like a baby in many ways. It relies wholly on others for its development, growth and sustainability. And like a baby, a nonprofit needs dedicated adults to take responsibility for both its well-being and its financial interests.

A nonprofit is dependent upon its board of directors to guard it from all threats, internal and external alike. Collectively, board members must be willing to make the hard decisions necessary to protect the organization and sometimes that means going against the staff, including executive director (even if when he is the founder). The board’s primary responsibility is to ensure that the nonprofit achieves its mission. Any threat to that possibility must be swiftly neutralized. Yet, time and time again, we hear stories of boards failing to meet their responsibility.

Just this week Nonprofit Quarterly ran Kate Barr’s story, Improving Nonprofit Decision Making amid Economic Crisis, in which she describes how the board of directors at a highly respected nonprofit failed over nearly two years to exercise its duty to take quick, responsive, and sound action in response to numerous red flags indicating a financial crisis was looming. When some members of the board were ready to make the hard decisions, others cowered when executive director scoffed at their recommendations. Ultimately, the board chose to appease the executive director, leaving the organization not only in a financial crisis but also with a tarnished reputation.

In this case the board made protecting the feelings of the executive director more important than protecting the organization, and now the nonprofit is paying dearly for it. Would your board have responded differently?  Can you be sure?  Kate includes strategies your board can take to improve its decision making and better protect your organization.

The Word Woman to Provide Nonprofit Coaching at the 5th Annual MD Women's Conference

Michelle Nusum-Smith, owner and principal consultant at The Word Woman LLC will provide nonprofit coaching at the 5th Annual Maryland Women's Conference. The event takes place in Frederick, MD on Saturday, October 26th.  Mrs. Nusum-Smith’s Do-Good Coaching is for anyone who currently or wanting to serve the nonprofit sector. She will answer questions and provide information related to starting a nonprofit, getting a job at a nonprofit, and volunteering at a nonprofit.

Click here for more information about the 5th Annual Maryland Women's Conference

  

Four Steps towards Starting a Nonprofit

There are many articles, workshops and services that will suggest you start a nonprofit by filing Articles of Incorporation with your state and applying for 501(c)(3) status with the Internal Revenue Service, but there are several key steps you should take first.

STEP ONE

In a sentence or two, formalize your reason for starting a nonprofit.

STEP TWO

In a sentence or two, describe what your nonprofit would aim to do.

STEP THREE

Imagine that your nonprofit has accomplished what it set out to do. In a sentence or two, describe what the would look like as it relates to your cause.

STEP FOUR

To launch a sustainable and impactful nonprofit requires help. You may already have volunteers who help you deliver programs and services, but your nonprofit will also needs volunteers who support you by providing support and oversight. You will need a board of directors. You need at least five people who will support your vision by give their TIME (attend meetings), TALENT (volunteer their expertise and skills), and TREASURE (donate generously to your cause).

  

Want more support in taking the steps toward starting a nonprofit?

Send an email to info@thewordwomanllc.com for a FREE copy of

Four Steps Towards Starting a Nonprofit, an exercise for future founders.

The World Can't Wait

How long has it been? You know…since you first had that idea? You know…the one to address that cause or concern that has been eating at you? What was it again? Homelessness? Women’s empowerment? At-risk youth? Elder abuse? Animal cruelty? Health disparities? Injustice?

Whichever your cause, I’m sure it’s as serious as those I’ve listed. So what has held you back? I’m sure it’s not a lack of passion, because all do-gooders have passion! Heck, it was your passion that led to the idea in the first place, right? So, it’s definitely not a lack of passion!

So what is it? What has kept your idea locked inside of you while the people, places, or animals that could be benefiting from it continue to suffer?

Is it a lack of technical skills? A lack of support? Well, I’ve designed a program that will enable you to finally release your idea! I call it the Do-Good INTENSIVE, because time is of the essence when you’re trying to change the world!  

The Do-Good INTENSIVE is a nonprofit leadership program for “everyday people”. The program includes:

• Two full days of hands-on, interactive, expert-led instruction (Value: $615),
• Six bi-weekly group telephone coaching sessions with peer support from other “everyday people” who aspire to become nonprofit leaders (Value: $360), and
• Three one-on-one coaching sessions with me! (Value: $300)

A $1275 total value, I’m offering the program at an introductory rate of only $725.  

 To ensure a quality experience, participation is limited to 20. Don’t delay! Enroll today!!

Click here for more information.

Keep doing good!

Guilty by Association

“What are the biggest issues facing nonprofits today?”

I was recently asked this question. There are many possible answers: cuts in public funding, ineffective boards, turnover in leadership. My answer was “public distrust and competing for limited resources”.

Nationwide, public distrust has been heightened by reports of fraud, abuse and other scandals. A simple Google news search of nonprofit and fraud, revealed over 12,000 results. Abrupt shutdowns and frequent turnovers in leadership perpetuate uncertainty among the general public. Even the most effective and most transparent organizations are affected when public confidence in the nonprofit sector is weakened by news reports of mismanagement and criminal behavior at other charitable organizations. Donors question if their gifts will be used as intended and the long-term health of the benefiting charity.

 

Individual, private and public donors want to see documented, measurable impact from the charities they support. Nonprofits must see their donors as investors and treat them as such by demonstrating and communicating their impact, and by making it easy for the public to access information about how donations they receive are used.

As demand for charitable services increases along with the number of charities, a nonprofit's long-term sustainability hinges on its ability to effectively compete for limited resources—securing support from various sources. As organizations experience cuts or total loss of support from public and other sources, they will seek to win the support of donors who have historically given elsewhere. Nonprofits must expand their base of individual donors while being equally dedicated to maintaining their current supporters.

Nonprofits must make relationship management a priority.

Did any of this really happen?

I  recently had someone tell me about the success of an open house she had coordinated. She told me about the large turnout of new friends and longtime supporters, and about the many opportunities the new friends presented for her organization. She was very excited and I shared in her excitement, while it lasted. Then I asked about her about her sign-in sheet. She froze and then reported to her own dismay (and mine), “We didn’t have one.”  

 

EEEK!!

 

I didn’t doubt any of what she had previously told me. But what if I had? I might have wondered, “Did any of this really happen?”

 

Anyone whose participated in my workshops or been a colleague of mine has heard me say, “If it’s not documented, it didn’t happen.”

 

I’m a do-gooder, so I get it when other do-gooders express their urgency to…

 

…feed children.

…conduct job trainings.

…recruit youth mentors.

…collect and distribute winter coats.

 

But in an effort to do good, one cannot lose sight of the importance of documentation. Like performing the charitable work, documenting is critical to a nonprofit’s success – to its ability to measure its impact and to effectively evaluate its programs and services. Documentation is a necessity when an organization is supported by a third party such as a foundation, corporate sponsor or individual donors. But don’t make satisfying donors the only reason you document.

 

Think documenting has to be difficult or complex? Here are a couple examples of simple tools nonprofits can use to document their efforts and measure their impact:

 

Sign-in Sheets – A simple piece of paper can provide you with documented proof that an event or activity occurred and the number of attendees. It can also be used to capture attendee contact information and any data you may find valuable (i.e., age, gender, referral source

 

Pre/Post-Tests – Having participants answer 5 to10 questions before and after they receive a service can help a nonprofit to effectively measure changes in participant behaviors, attitudes, and choices. These tests can also be used to evaluate the effectiveness of service delivery.

 

So document your efforts to ensure sure you never leave someone wondering, "Did any of this really happen?"

 

Setting your fundraising goal

The need for financial support to do charitable work goes without saying. However, before you embark on any fundraising activities you must know why you are raising funds, how much money you need to raise, and for what the funds will be used. This is particularly important when raising funds through grant sources.

Whether you are fundraising to start a new program, to expand an existing program or to purchase new equipment, your fundraising should be guided by a fundraising goal that is based on what you actually need.

Consider these questions when developing your fundraising goal:

What do you need? Prepare an itemized list of the specific human and/or non-human resources you anticipate will be needed for success. For example, if you are starting a new program, you might need paid staff, office supplies, computer equipment and office furniture.

How much will each needed item cost? After you have prepared your list, you need to estimate how much each item will cost. For staffing, develop a job description for each role then use online resources like PayScale to find out what competitors or similar-size organizations are paying for similar positions and responsibilities. For other items, compare retailers to find out who offers the best price.

 

How much funding will you need in total? Total the estimated costs of each item on your list and add a buffer (about 10% of the total). The total estimated cost, plus the buffer, is your fundraising goal. Keep in mind, some funders may not allow the buffer.

 

With a fundraising goal based on a detailed budget, you are ready to identify prospective funders and to outline your strategy to get to your goal.

Recruiting "movers and shakers" to your nonprofit's board

I am regularly asked about how to recruit board members. I hear things like, "I don't know any good candidates" and "I can't make connections with the 'movers and shakers'". In growing your board, you may be having similar thoughts. If so, I have to ask:

• Who are these 'movers and shakers' and why do you think you need them?
• Are they the people who's pictures you see in the newspaper?
• Are they people who already sit on the boards of  "prestigious organizations" ?
• Are they the people you think have lots of money to support your organization and lots of friends with money, too?

The reality is those so-called movers and shakers may never be interested in serving on your board. And if by chance they did agree to it, would they be the active, engaged and passionate people you need?

Don't underestimate the value of the people around you. Judging a book by its cover can be costly -- any way you look at it.

When building your board, think about what you really need and not what you think you should have. That "nobody" you overlook today could become a "mover and shaker" tomorrow. Wouldn't it be better to already have him/her committed to your organization?

Recruiting board members is challenging for most nonprofits. Finding people with a passion for your cause; the skills your organization needs; a willingness to commit their time, talent and treasure (money); and an existing understanding of how to serve on a nonprofit board is literally like finding a needle in a haystack!

Just like in recruiting for any other position, identifying and vetting good candidates takes time. Additionally, even if someone looks good on paper, they may not be a good fit.

 

Building the board of your dreams requires a strategic approach that shouldn't be rushed. Most importantly, you should know what you need and write it down before you begin recruiting. There are two key questions to which you should have written answers:

1. What skills should exist on the board? The top two are legal and financial. Having board members with these skills will result in cost savings for your organization. But you might also want someone with skills in marketing, business management, human resource management and fundraising. You should also have someone who represents your targeted beneficiary population. And, diversity is a must!
2. What will board members be expected to give? This question relates to their time, talent and treasure. You should have a detailed description of board member duties and responsibilities. Successful board recruitment requires a clear understanding and agreement of expectations from you and each prospective board member.

There’s a grant for that!

I am approached regularly by people who ask, “Can you write me a grant?” Some are current nonprofit leaders, some are aspiring nonprofit founders and others are current or aspiring entrepreneurs. They all have an idea and an expectation – someone, somewhere will give them money for their idea.  It’s almost like Apple’s 2008 slogan "There's an app for that” or bet yet, their 2010 slogan "There's an app for everything".

People come to me thinking not only “there’s a grant for everything” but getting a grant for anything is as easy as going to the App Store℠ and hitting download. If only!

There is a process for securing a grant and it starts with something that unfortunately too many prospective grantees are not -- grant ready.

Here are some questions to help you to determine if your organization is grant ready:

·     Has your organization secured the 501(c)(3) tax exempt status from the IRS? Though this is not a requirement for all grantmakers, most grantmakers will not provide funding to a nonprofit without a valid 501(c)(3) status determination letter from the IRS.

·     Have we determined specifically why we are seeking a grant?  Most grantmakers giving is guided by specific priorities and areas of interest. Additionally, many limit how their support can be used. Grantmakers may have limits such as populations served, geographic boundaries, and types of expenditures. 

Here are examples of key questions to which you should have answers before pursuing a grant:

Who will we serve? What is the demographic profile(s) of your target population?

Where will we serve? Community? City?  State?

How will we serve? What will be your program delivery model?

Why are we offering the program?  What evidence do you have that your proposed program is needed/wanted? What outcomes or impact do you expect to achieve?

What is our budget? Answering the previous questions will assist you in developing your budget.

Whether you plan to engage a professional grant writer or to prepare grant proposals internally, you should know and understand the grantwriting process. That’s why I am offering a Grantwriting 101 webinar on Saturday, February 23 at 1:00 pm (EST) and Wednesday, February 27, at 3:00 pm (EST). I’ll provide a step-by-step review of the standard sections of the grant proposal; do's and don'ts; and tips on how and when to communicate with grant makers.You can still register here.  Register today!

Inaugural Do-Good Chat: Questions & Answers

Last night, I hosted my first “Do-Good Chat” and it was a great success! A discussion completely determined by participant questions, the Chat is a monthly live event where I answer participant’s questions and provide information related to starting, operating and sustaining a nonprofit organization.

I hope you will join me in the next session, Thursday, February 21^st at 7pm (EST). Register here for the free event,

Below are last night’s questions and my answers.

I am in the planning stages for my nonprofit and I’d like some tips on how to recruit board members.

Recruiting members of your “founding board” should be done with care. You want to choose people who understand and genuinely support your vision. Though it is important to have an eye for professional skills, you want to give equal attention to the personalities you recruit. Members of your first board must be willing roll up their sleeves and go to work -- giving their time, talent and treasure. They must also be able to understand and get along with each other.  I recommend you start with five members, but you can have as few as three. Ideally, you should have a lawyer and an accountant. It would be great if you also have a member of your target beneficiary community. For example, if you are starting a youth serving organization, have a young person serve on your board. Their input can be invaluable to your mission and vision development process as well as program and service design.  Though there is nothing wrong with having family members or friends serve on your founding board, make sure they understand what they are signing up for. Also, once you become a paid staff member, a conflict of interest issue could develop. Finally, I believe all boards should set term limits. For your founding board, I suggest you set a term of one to two years. As time goes on, you may change extend it to three years. Setting term limits will keep your board stocked with fresh energy, ideas and an ever expanding support network. Past board members may remain involved through other forms of volunteerism, such as serving on a committee.  

I have been doing lots of volunteer work at my son’s school and could use some fresh ideas on how to manage volunteers and events.

The key to successful volunteer management is communication. A volunteer should clearly understand his/her role and responsibilities. I recommend using position descriptions and reviewing them with the volunteer at the start of any assignment. When it comes to managing groups of volunteers doing similar work, you can review the role and responsibilities in a group setting – be ready for the questions! When you are clear about your expectations, volunteers are better positioned to meet them. If the volunteers are helping you to put on an event you are coordinating, you have to engage them early. For example, if they are going to serve as your planning committee, get them to the table early and allow them to actively participate in the planning. Outline your timeline (setting realistic goals) and assign duties and tasks that your volunteers are both willing and capable of performing. Give them well defined deadlines. Volunteers are people and as we know, some people procrastinate. It’s your job to check-in with your volunteers. This will help you to:

·         know if your volunteer is completing the task as assigned;

·         prevent your volunteer from going too far down the road in the wrong direction;

·         provide your volunteer with support and any needed further instruction;

·         make your volunteer feel valued and appreciated; and

·         have peace of mind (that’s always helps). 

Always acknowledge your volunteers, say thank you as many times as you can, and provide lots of opportunities for them to ask questions, give input and provide feedback.

I see so many boarded up buildings in my community, I want to get a grant to rehab them for people suffering from addiction.  Will the City give me a grant?

This is a great question to which I cannot give a “yes” or “no” answer. But it brings up an important issue to discuss. I am always excited to meet someone whose passion drives them to take on complex projects in order to deliver much needed programs and services. However, it is important to remember that passion can only take you so far when it comes to executing a complex project or developing a successful program. In this case, you want your City to give you a grant to do something that would benefit the City in several ways: (1) remove decaying buildings from what are likely under its ownership, (2) provide support and resources to a segment of its vulnerable citizenry, and (3) in-directly and quite possibly directly impact crime rates, death rates, and a host of health and human service programs. This is all great; but before you can achieve any of these lofty goals, there is much homework for you to do. This homework, an investment of your time and likely your personal resources, will help you to determine if you are actually ready, willing and capable (I have no doubt you are) to make your dream a reality. 

Here are my suggestions for first steps:

·         Identify the exact house(s) you want to rehab.

·         Draft an outline of what you want to achieve, broken down into phases (i.e., secure units, rehab units, develop programs, secure staffing, etc).

·         Establish what I call your “Vision Team”: Identify key individuals willing to volunteer their time and talent to help you assess the feasibility of project from a development perspective as well as a programmatic perspective. Your team might include a developer, city planner, accountant, and substance abuse treatment specialist.

·         After you have secured buy-in and the “green light” from your Vision Team, identify and meet with the appropriate City staff in housing, health, and, if possible the Mayor’s office. Getting their buy-in and the “green light” is critical to your success.

This will not be an overnight process. But if you are committed, I have no doubt you can achieve your goal – changing the lives of countless people affected by addiction.

I just started my nonprofit and we don’t have 501(c)(3) status yet, does that mean we cannot ask for grants and donations?

Before I delve into answering this question, let me clarify that having the 501(c)(3) status from the IRS is not what makes your organization a nonprofit. Nonprofit status is based on how your organization is formed at the state level. When you prepare your Articles of Incorporation, also called a Corporate Charter, you explain the purpose of your organization and file it with your state. Once approved, for all intents and purposes, your organization is a nonprofit. However, that does not necessarily mean you qualify for grants – in most cases you will not. That is because in order for donations to be tax deductible, they must have been made to an organization with a valid tax exemption status determination from the IRS. In most cases, grant makers require organization’s to have the IRS tax exemption status determination to qualify for their support.

The basic requirement for getting tax exempt status is for the organization to specifically limit its purposes to purposes that the IRS classifies as tax exempt. You acquire 501(c)(3) tax exemption by filing IRS Form 1023. The form must be accompanied by an $850 filing fee if the yearly gross receipts for the organization are expected to average $10,000 or more. If yearly gross receipts are expected to average less than $10,000, the filing fee is reduced to $400. I encourage anyone starting an organization in which they plan to secure grants and donations for the purposes of operating a staffed organization to file with the higher fee.*

The only thing precluding you from securing grants and donations prior to securing you 501(c)(3) status, is each grantmaker’s policy and each individual donor’s willingness to make a non-deductible donation.

*Consult your accountant and/or attorney to determine what is best for you.

Nonprofit Financial Management: Uncovering a $14K Check Payable to “CASH”

Following nonprofit news outlets is one way I stay informed about what’s going on in the industry. Lately, there have been a number of stories about poor financial management practices that resulted in terminations, convictions, loss of credibility, and even closures. In most cases, the activities had gone on for months or even years!

You might be wondering, “How is that possible?”

Well, I know from personal experience that it is indeed possible.

I was once hired by a nonprofit that at the time existed mostly on paper. Not much, including audits, had happened in the few years prior to bringing me on. And despite having a board comprised mostly of accountants, lawyers and business professionals, the financials were in disarray.

Over several months, I went meticulously through over three years of bank statements, invoices and canceled checks. There were countless boxes full of files and loose pieces of paper, including a canceled check written out to “CASH” – written for $14,000 with nothing on the memo line! 

I’ll never forget the moment I saw it or the thoughts that ran through my head:

          “What was this for?”
          “Payable to “cash”; how is this possible?”
          “Did the board approve this transaction?”
          “How will I ever figure out how this money was spent?”

Well it took lots of detective work and lots of time, but I did figure out how the funds were spent. (I cringe at the thought of what might have happened if I hadn't.) I also figured out that the check was  requested and signed by the same person who spent the funds! (Are you cringing?) So in addition to entering all of the financial history into the organization’s new financial management system (QuickBooks), I worked with the board to develop new financial management policies and procedures so that every transaction, no matter how big or how small, would be documented electronically along with the appropriate backup.

How well are you managing your organization’s financials? To ensure you are safeguarded from financial crisis, check out these resources:

NFP Partners’ Financial Management Best Practices for Nonprofits

National Council of Nonprofits’ Financial Management
Accountable Charity’s Tipsfor small to midsized nonprofits using QuickBooks

Also check out The Word Woman Facebook page for more nonprofit tips, webinars, workshops, grant opportunities, and more! 

Like the President, I’m preparing for an Inaugural! How Exciting!

The inaugural session of my Do-Good Chat is just a week away. I am so excited by the amount of interest and the questions! What is the “Chat”? It’s a monthly teleseminar for people who are currently taking action toward their vision of a better world through service in the nonprofit sector or who are just getting started. I address your pressing questions and provide information related to starting, operating and sustaining a nonprofit organization. The content of each discussion will be completely determined by participant questions!

The idea to do the “Chat” simply popped in my head one day when I was answering one of the many “quick” questions I receive by email and social networking site. I have found that many people have the same questions. So instead of answering each person individually, the Chat will allow people to hear answers to their questions and those of others.

Each call will begin with answers to questions submitted in advance, followed by (as time permits) additional questions and comments from participants. Here are a few examples of the questions I’ve received thus far:

·         I am in the planning stages for my nonprofit and I’d like some tips on how to recruit board members.

·         I have been doing lots of volunteer work at my son’s school and could use some fresh ideas on how to manage volunteers and events.

·         I just started my nonprofit and we don’t have 501(c)3 status yet, does that mean we cannot ask for grants and donations?

 Have you registered for the FREE Inaugural Do-Good Chat? Space is limited, so don’t delay!

Click here to register.

Funder Site Visit: 8 Tips for a Successful Introduction

 

I recently arranged for a nonprofit to have an introductory site visit from a prospective funder. When the staff first heard the news, they cheered with excitement. But quickly the big grins on their faces were replaced with looks of sheer panic. They had never had a site visit from a prospective funder.  I was soon bombarded with:

 

 

“How do we prepare?”

“What are we supposed to do?”

“What will they want to hear?”

“Who’s going to ask them for the money?”

 

They were all great questions. But before I answered any of them, I reminded the staff of a very important fact: They were going to be visited by people.

Yes, funders are people, too. They just happen to be people who have money to support organizations engaged in work that aligns with their priorities. And since they are already supporting other organizations whose work align well with their priorities, you had better make the best of any introductory site visit.

Here are 8 tips for a successful introductory site visit:

1. Clean your home. Have you ever been invited to someone’s home and arrived to find it a mess? How did you feel? Well, that’s it exactly how a funder will feel if they arrive to your office and it’s not clean, organized and inviting.

2. Everyone in the organization should be aware of the visit. Though there may be only one program or service that aligns well with the funder’s priorities, this is an introduction to the organization. Every member of your “family” should be informed well in advance about the visit and prepared to answer any questions they may be asked about themselves, their work and your organization’s beneficiaries.

3. Greet your visitors at the door. Ideally the Executive Director and/or Development Director will greet your guests promptly when they arrive. This would be a great time for them to tour your offices.

4. Be hospitable. Serve refreshments. If it’s winter, you might offer coffee, tea and pastries. If its summer, you might offer iced tea and fresh fruit. Your visitors don’t expect a spread, so don’t go overboard. You want them to be impressed by your work, not your local bakery.

5. Have a written agenda. There should be a formal agenda outlining the flow of the discussion. Though you may be tempted to jump right into talking about your organization and the work you do, remember this visit is as much an opportunity to learn about the funder as it is for the funder to learn about you. Give your guests an opportunity to introduce the Foundation, its mission and priorities. You will likely learn information not available on their website.

6. Don’t overload your guests with materials. Provide each representative with a packet of materials related to your history, mission, programs, etc. Less is more. It is better to package the materials together and give them out all at once than to distribute them individually during the meeting.

7. Keep it concise, relaxed and relevant. Develop key talking points but don't be scripted. The discussion should flow as a friendly conversation. Avoid giving speeches. Think about the funder’s interests as you consider what to share (i.e., success stories, recent accomplishments, what you hope to accomplish).

As you prepare your talking points, keep these guidelines in mind:

· The funder doesn’t know your organization. They will likely have questions that start with who, what, when, why and how.

· Succinctly emphasize successes and challenges. Try not to speak for more than 3 minutes at a time without a break.

· If at all possible, avoid acronyms. If you must use them, be sure to define them first. Using acronyms unknown to your guests will leave them and the point you are trying to make lost in alphabet soup.

· Don’t lecture (no PowerPoint presentations). You want to have a conversation so your guests can get to know you. Allow your guests to ask questions.
 

DO NOT ASK FOR ANY MONEY! This is an introduction. Unless your guests bring it up, there should be no discussion of money during the site visit.

Keep in mind, no two funders are alike and no two site visits will be alike. Be sure you structure each site visit to the prospective funder.

 

Are you preparing for a site visit from a prospect funder? I’d love to hear about it!

P.S. - The nonprofit had a great site visit. In fact, they were invited to submit a formal request for support!

 

 

 

Measurable Impact: A Sustainability Requirement for Nonprofits

Without a doubt, nonprofits are run by passionate people committed to their cause. But many of these passionate people believe something that isn't true. They believe the impact of their work is obvious to themselves, their donors and the broader community. They mistake activity for impact. In fact, for many years major donors would accept activity as a demonstration of impact.

For example, a human service nonprofit would report a 20% increase in clients served. Both they and their donors would accept the increase in clients served as greater impact. But the activity (serving clients) is an output and not an outcome.

Outputs include things like number of workshops held, number of volunteers trained, field work completed, houses built, etc. While outcomes demonstrate the impact of the nonprofit’s work in terms of measurable and lasting effect. In other words, outputs are how you get to outcomes (impact).

 

Output-focused funding is generally a thing of the past. Today's donors are outcome-focused.

Nonprofits that follow an outcome-focused approach will:

• have greater impact,
• demonstrate their impact quantitatively,
• secure more support, and
• experience sustainability and growth. 

The outcome-focused organizations determine anticipated outcomes for each program and service and develop methodologies for tracking activates and gathering data that measures impact toward the anticipated outcomes.

Steve Mariotti, founder of Network for Teaching Entrepreneurship, offers great tips for measuring impact in his two-part article: Is Your Nonprofit Making an Impact? Prove It!

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