How Well Are You Doing?

The Third Sector, a British website focused on nonprofits, noted that nonprofit organizations had no interest in tracking performance. Funders in the UK could not even get input from organizations who had received money to track performance. One interviewee noted, ""When it comes to measuring impact, charities suffer from a culture of avoidance and a lack of ability, and one reinforces the other." Across the Atlantic, we face the same dilemma.

Very often, we see nonprofit organizations started by a singular individual who possesses amazing powers of motivation. These people usually create something of a cult of personality where they are the mission and the mission is them. Such leaders tend to carefully monitor every aspect of the organization's performance and there is an entrepreneurial spirit in all the nonprofit does.

As a nonprofit matures, however, leadership changes and normalized job structure develops. Departments are created, tasks are methodically delegated, and the entrepreneurial nonprofit begins to conduct business as usual. At this point, the effect of the nonprofit's business as usual approach is no longer measured by a continuous feedback loop between the founding leader and the target population. When those you serve request service, there is now a formalized process through which they must navigate. It is the process that becomes the focus, not the outcome.

With such an emphasis on processes, it is no wonder nonprofits do not want to measure performance. It is difficult and would require a complete paradigm shift to focusing on achieving the outcome for each client as a measure of success as opposed to claiming success when a client simply comes to us for help. While such paradigm shifts appear daunting and take time, there is a way to begin the process painlessly by encouraging your staff to consider our organization their client. A mentor of mine encouraged me to do this and although it takes time to develop the mindset, ultimately the focus is entirely on the outcomes of the organization. By encouraging each employee to consider themselves someone who has been retained for a specific area of expertise, employees can focus on delivering the highest quality of service with results being the only measure of success.

Whether you being measuring your success or not, others already are. Other nonprofits know how well you are doing and current and potential funders know how well you are doing. Do YOU know how well you are doing?

What Would Happen if Your ED Didn't Show Up Tomorrow?

• Succession Planning. The name certainly doesn't conjure up images of a fun project. Nonetheless, most nonprofits do not have a plan to get them through a period where they lose their primary leader, the Executive Director. Failure to plan for the absence and replacement of an Executive Director can throw an agency into turmoil that will shake the very foundation of the organization.
  
  Executive Directors impact a wide variety of elements in a nonprofit organization from day-to-day operations to major funding streams. In addition to the fundraising problems that may occur with the departure of an Executive Director, there may be equally large problems with the execution of contracts the Executive Director was written into. Many contracts contain an expectation that the Executive Director fulfills an operative or supervisory role and failure to do so may jeopardize the entire contract. There are some key questions a nonprofit board should consider when contemplating a succession plan:
  

Is the Board of Directors able to hire a new Executive Director?

Is the job of the Executive Director realistic?

Is the salary of the Executive Director sufficient to attract qualified candidates?

Can the Board cover any gaps in fundraising?

If the Executive Director were to suddenly leave, who would assume their duties?

Discussing these questions will help the Board to contemplate action prior to an Executive Director's departure. In addition to funding and operational activities, the Board should consider the media strategy it will use to explain the loss of the Director and the steps being taken to replace him or her. This will be very important in terms of maintaining confidence in the organization from both the staff and the community perspective.

While leadership change can be difficult, planning in advance for the replacement of an Executive Director can help to keep the organization running smoothly, in compliance with all contracts, attractive to funders, and able to attract qualified candidates. Truly, a little succession planning does a long way!

Preventing the Swine Flu

There are currently 64 cases of Swine Flu in the United States. There has been 1 reported death. The rapid spread of the Swine Flu has created the concern of an international pandemic. Now is the time to make certain your nonprofit's employees and clients are aware of the Swine Flu and what steps can be taken to avoid catching and spreading the illness.


The Center for Disease Control recommends the following:


Stay Healthy.

• Cover your nose and mouth with a tissue when you cough or sneeze. Throw the tissue in the trash after you use it.
• Wash your hands often with soap and water, especially after you cough or sneeze. Alcohol-based hands cleaners are also effective.
• Avoid touching your eyes, nose or mouth. Germs spread that way.

Try to avoid close contact with sick people

Influenza is thought to spread mainly person-to-person through coughing or sneezing of infected people.If you get sick, CDC recommends that you stay home from work or school and limit contact with others to keep from infecting them.

The Swine Flu virus is very fragile and must be contained in water droplets to survive being spread from one person to another. Many countries, particularly Mexico, have instituted the wearing of surgical style masks to help prevent the spread of the Swine Flu. Such masks are effective, however the measures taken by the CDC above are equally important.

Many nonprofits have a large number of people who come for services each day. It is very important that staff mandate each client disinfect their hands with antibacterial wipes or antibacterial hand gel. Similarly, clients must be provided with tissues to cover their mouths when sneezing and coughing. Any client who is displaying flu-like symptoms must be sent home immediately. Likewise, staff who display flu-like symptoms should be sent home immediately.

While nonprofits should always take great care to protect clients and staff, an event such as the spread of the Swine Flu gives creates a situation where ordinary care is insufficient. Scrutiny must be given to normal safety precautions and additional precautions must implemented to prevent the spread of this unusual virus. Only by taking immediate steps to protect clients and staff can they be protected and the spread of the Swine Flu stopped.

It IS a business!

For a long time I have heard people say they don't work in the corporate world, they work for a nonprofit. Nonprofits are actual corporations, they are simply nonprofit corporations. There is an everlasting misconception that nonprofit work is fundamentally different from the "corporate world" and therefore share little in common.

The truth is that nonprofits and for profits are fundamentally the same. There are the same issues with human resources, regulatory compliance, marketing, research and development, and sales. "Sales?", you say. Yes, sales!

For-profits sell widgets. Nonprofits sell units of service. Without making a value judgement on which is better - widgets or units of service, understanding that the mechanisms that allow for the consumption of widgets or units of service are nearly identical.

When a for-profit company decides to create a widget, they get the research and development department to come up with an idea. This idea is tested, modeled, and brought before potential investors. If the for-profit is successful, investors invest, the widget is made, the widget is sold, and enough revenue is generated to allow the widget to be produced indefinitely.

When a nonprofit decides to create a social service, they do research on the social problem and the best solution to come up with a program society can benefit from. The program is tested, modeled, and brought to potential investors such as individual donors, corporate sponsors, foundations, and government funders. If the nonprofit is successful, investors invest, the program is given enough money to start, units of service are delivered, and enough revenue is generated to allow the program to be operated indefinitely.

In nonprofits, like for-profits, there are quality control concerns, contractual obligations, and productivity quotas. In both, there are hirings, firings, 401k's, and medical insurance concerns. Aside from the difference between the unit of service and the widget, the differences are strikingly small.

The real difference comes in the perception of the nonprofit. Many who enter the nonprofit arena are dismayed to find out that the real service to the community lies in the ability to run a nonprofit successfully. The ability to do this lies in careful management of employees, the bottom line, and the Board of Directors. These responsibilities are a welcome challenge to the person who understands a nonprofit is not just like a business, it IS a business!

It Can Be Done

Resources are scarce. Jobs are scarce. Good news is scarce. By now, we have heard it all. While these scarcities are a reality, there are still resources available. At a conference I attended recently for child care providers, there was a session about new funding opportunities. When the speaker announced there would only be five new funding opportunities in the coming months, half of the room walked out. I thought, great, my competition is cut in half. Understanding the competition for these resources is vital to getting the resources.

The reason the people walked out of the room wasn't apathy, it was hopelessness. The challenge of getting funding seems insurmountable, but the truth is, organizations WILL get funding. It can be your organization. There are three keys to getting funding in today's market:

1. Be the Most Qualified Service Provider: In your grant proposals, tell how your organization is the best, biggest, most qualified agency. Set your organization apart by highlighting past accomplishments and future goals. Nothing about your application should read, "Business as usual."

2. Serve the Most with the Least: Many proposals today read like bidding wars where the one who does the most with the least wins. Knowing this, make certain you keep your administrative overhead low and your units of service high. Look at your proposal with a critical eye and ask how you can increase the amount of direct service you are delivering. Here, quantity counts!

3. Collaborate: Funders want to spread the wealth. Build collaborations into your proposal so funders have the opportunity to take credit for funding more agencies with less money.

If you don't pursue funding, others will. By being proactive and tenacious, you can be funded!

The following article speaks to a potential plan by the Obama administration to lower the amount an individual can deduct with regard to charitable donaitons.

Read the article: Click Here

It is important to understand the implications of potentially less donations from wealthy individuals. Read it when you have a chance.

The Nonprofit Network Team

Traditional Fundraising Must Continue

The U.S. Bureau of Labor Statistics reported that in January over 1,000 Hawaiian workers were laid off. That is compared to 217 for January 2008. Many of these jobs were in the nonprofit sector, causing nonprofit organizations to lobby the state of Hawaii to set aside stimulus package dollars specifically for nonprofit services. This is a good strategy for the short-run, but in the long-run this strategy has the potential to be devastating to the entire nonprofit sector.

Nonprofit organizations have three primary sources of revenue: Grants, donations, and earned income. Grants can be from the government, corporations, or foundations. Donations are generally from individuals and earned income is from services and activities conducted by the nonprofit. The recession has caused a decline in grants, donations, and earned income, resulting in a shortage of services and subsequent layoffs. The injection of stimulus dollars will help restore services and jobs, but it is only for two years. If nonprofits rely on stimulus dollars as a development strategy, in two years they will back where they are now.

Fundraising success for a nonprofit organization depends on relationships. Now is the time to create new relationships that will yield success over the next two years. Nonprofit leaders should be visiting with foundation representatives, corporate liaisons, and elected officials. These relationships take time to nurture and there are no shortcuts. By working on these connections now, they will bear fruit by the time the stimulus money ends.

The stimulus money will create a funding bridge for nonprofits who continue traditional fundraising effort. For those nonprofits who don't, the stimulus money will be a bridge to nowhere.