Transcript Document

Embracing Best Practices in Nonprofit
Management and Governance
Second edition, 2014
America’s Nonprofit Sector
Who are we?
We are churches, hospitals and schools. We are
environmental activists, developers and
preservationists, and social service agencies.
Wherever there is a need for services, America’s
nonprofit sector is there to meet that need.
In 1983 there were 300,000 nonprofit
organizations
In 1993 there were 750,000 nonprofit
organizations
YOUR STATE’s Nonprofit Sector
There are nearly _____ nonprofit organizations in
STATE alone.
Of these, ______ are 501(c) 3’s (2010).
________ are employed by nonprofits in the state,
representing over
$__________in total wages
Nonprofits Depend upon the
Public and the Public Trust
Tax exemption
Tax deductible dollars through contributions
Recipients of foundation grants
Ability to recruit volunteers, including board
members
 Public trust is an important asset
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Competition Among Nonprofits
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Funding from all sources
Volunteers
Staff
Board members
Public Becoming More
Sophisticated
Many donors and the public
are concerned about more
than simply program
administration and
fundraising ratios
Greater Scrutiny
 Vicious cycle of lapses and
increased regulatory/legal
scrutiny
 Increased consumer
expectations and
sophistication
Others Looking at
Best Practices
 What watchdog organizations are you aware of?
 Are you familiar with other organizations and
websites that monitor and expose nonprofits
and their practices?
Websites educating about
nonprofits and their practices
 GuideStar.org
 Greatnonprofits.org
 Idealist.org
 Catalogue for
Philanthropy-dc.org
 Local volunteer
recruitment centers
 Volunteermatch.org
 Local online database
of nonprofits like:
Giving Matters,
Nonprofit Search
 Networkforgood.org
 BoardnetUSA.org
IRS Emphasis on
Best Practices
“The Internal Revenue Service believes that a
well-governed charity is more likely to obey the
tax laws, safeguard charitable assets, and serve
charitable interests than one with poor or lax
governance.”
Irs.gov/pub/irs-tege/governance_practices.pdf
IRS 990 Calls on Each Nonprofit to
Embrace Best Practices
 Policies on:
 Conflicts of interest
 Document Retention and Disclosure
 Whistleblower
 Reimbursement
 Joint Venture
 Compensation
 Gift acceptance
 Solicitation Policy
 Auditor Independence
This is why…
We need to pay attention to all of the
organizational issues that make nonprofit
organizations tick.
Once you are aware of these organizational best
practices, your organization can focus increased
energy on achieving your mission and running
your programs. Stay competitive and stay in
business.
Our Mission
Promote the highest standards of ethics and
accountability in nonprofit governance,
management and operations, and to facilitate
adherence to those standards
by all nonprofit organizations.
The Standards For Excellence
Program
 The Standards for
Excellence code
 Resources and
Training
 Voluntary
Accreditation
 Educating the Public
Program Delivery
 Membership
 Licensed
Consultants
 Replication
Partners
Membership Services / Benefits
 Free Standards for
Excellence educational
resource packages
 Free one-on-one
technical assistance
 Member pricing on
accreditation and
recognition
 Member pricing on
educational programs
Standards for Excellence
Replication Partners 2014
Standards for Excellence
What are they?
 6 Guiding Principles, 27 areas
of focus and 67 Benchmarks
 Preamble
 Mission, Strategy and
Evaluation
 Leadership: Board, Staff and
Volunteers
 Legal Compliance and Ethics
 Finance and Operations
 Resource Development
 Public Awareness,
Engagement, and Advocacy
The Standards for Excellence
Code
 The code
provides a
framework and
step-by-step
guidelines to
achieve a wellmanaged and
responsibly
governed
organization.
Self Assessment
Embracing Best Practices in Nonprofit
Management and Governance
Second edition, 2014
MISSION, STRATEGY AND EVALUATION
Mission,
Strategy
and
Evaluation
Mission, Strategy and Evaluation
 Mission and Impact
 Planning
Strategically
 Organizational
Evaluation
 Program Evaluation
 Strategic
Partnerships
LEADERSHIP: BOARD, STAFF, AND VOLUNTEERS
Leadership:
Board,
Staff
and
Leadership and Governance
Volunteers
 Governance and
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Fiduciary Responsibility
Executive Supervision,
Performance, and
Compensation
Board Effectiveness
Succession Planning and
Leadership Development
Board Member
Independence
Board Meetings
Leadership
and
Operational
Leadership:
Board,
Staff and
Management
Volunteers
 Executive Function
 Supporting the Board
 Organizational and
Financial Sustainability
 Managing Employees
and Volunteers
Leadership:
Board, Staff and
Cultural Competency
Volunteers
 Cultural
Competency
 Assessment
 Strategy and
Planning
LEGAL COMPLIANCE AND ETHICS
Legal
Compliance
and
Ethics
Legal Compliance
and
Ethics
 Maintaining Legal
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Compliance
Required Public
Disclosures
Reporting
Misconduct and
Whistleblower
Protection
Conflicts of
Interest
Ethics Code
Case Study
What do YOU think?
You are on the board of a low income home building
organization. In your full time job, you own a hardware store and
often donate supplies to support the organization on whose board
you serve. Other hardware stores in your area also make
generous contributions to the cause. Because of your position on
the board, you recently learned that the organization will building
its 100th house and to commemorate this occasion, the
organization’s celebrity spokesperson, a hugely popular and well
known sports star, is inviting several other sports and movie stars
to attend the dedication of the home. It is the custom of the
organization to place a sign recognizing the firms and individuals
who donated services as a backdrop to the stage being used for
the home dedication.
FINANCE AND OPERATIONS
Finance
and
Operations
Finance and Operations
 Financial Budgeting,
Reporting, and
Monitoring
 Internal Controls and
Financial Policies
 Administrative Policies
 Risk Management and
Insurance
Case Study
What would you do?
You are the associate director at a medium sized
nonprofit literacy organization. While visiting
one of the branch offices, you learn that the
branch is in dire need of hand cleanser. Rather
than adhering to the normal channels for
purchasing supplies, you elect to stop by a store
near the office, purchase a large quantity of
cleanser and drop it off at the branch.
RESOURCE DEVELOPMENT
Resource Development
Development
Resource
Resource Plan
Sources of Income
Fundraising Activities
Donor Relationships
and Privacy
 Acceptance of Gifts
 Fundraising on Behalf
of the Organization
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PUBLIC AWARENESS, ENGAGEMENT,
AND ADVOCACY
PublicAwareness,
Awareness,Engagement,
Engagement,
Public
andAdvocacy
Advocacy
and
 Educating and Engaging the
Public
 Advancing the Mission
through Public Policy
 Engaging in Lobbying and
Political Activity
Case Study
How would you handle this?
The founder and president of your board has just announced that she
is running for State Senate. She is well known because of her longstanding association with the organization and the contacts she has
made on its behalf over the years. How would you respond if you
found that:
 Her campaign chair wants you to place one of her campaign signs in
the window of the organization’s office or in front of its office building?
 That she plans to give the organization’s board list to her campaign
manager so that the board members may be asked to be “block
leaders” for her campaign?
 Her campaign chair has asked to borrow a copy of the organization’s
major donor list that is periodically distributed to board members in
order to solicit contributions for the campaign?
 The president of the board is planning to announce her candidacy on
the front steps of the organization’s headquarters?
 She plans to remain on the board during your campaign?
Standards for Excellence
An Organizational Tool
 A model for nonprofit organizations to
implement accountability in their management
& governance practices
 A framework with a clear statement of the
organization’s commitment to best practices
 A self-regulatory tool to ensure public
confidence and public support
 A demonstration of the organization's
commitment to public service
Providing the Help You Need
 Educational
Resource Packets
 Educational
Programs
 Webinars
 In Person
 One-on-one
technical assistance
 Licensed
Consultants
Accreditation and Recognition
“An important outcome of
this process has been better
trained staff and volunteers
that have a stronger
understanding of our
mission, philosophy and
operating systems. We
believe we are a stronger
organization, as a result.”
Accreditation or Recognition?
Start with Assessment!
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Full Accreditation
Process
Shorter timeline
Take a systems approach
Less expensive than
applying at each tier
Better if you have a
chunk of time/resources
to focus on the
application process
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Tiered Recognition Process
Go at your own pace; feedback
and assistance from staff at each
level
Each level builds on the previous
tier across each topic area
More expensive over time if you
choose to advance
Better if you have smaller
amounts of time/resources to
devote to the process over a
longer period of time.
Full Application Instructions Available Online at
www.standardsforexcellenceinstitute.org
Other Resources for Nonprofit
Leaders
 Management support organizations
 University or college based nonprofit
academic centers
 Private consultant firms
 Nonprofit or for profit
 Corporation for National and Community
Service
 State Offices of Service and Volunteerism
Other Resources for
Nonprofit Leaders
 International Center for Not for Profit Law
(ICNPL)
 Independent Sector
 Alliance for Nonprofit Management
 National umbrella associations focused on
your industry or issue area
 National “Capacity Builders” focused on
particular issues, like:
 Nonprofit Center for Risk Management
 Charity Lobbying in the Public Interest
 Alliance for Justice
 Standards for Excellence Institute
What can I do tomorrow?
 Share the assessment
exercise with your
colleagues
 Decide what changes can be
made first and consider
tackling the easy items first!
 Think about what changes
can be added to your
organization’s work plan
 Get your board and staff
involved in embracing best
practices
Questions and Answers
Name
Title
Contact Information