Certified Nonprofit Professional Exam

What are true for nonprofits

--501(c)(3) nonprofit organizations are controlled by a volunteer board of directors within legal constraints. --501(c)(3) nonprofit organizations are prohibited from supporting candidates running for public office. --501(c)(3) nonprofit organizations are prohibited from distributing excess funds to individuals such as board members.

What is leadership as defined in lesson 2

--The process of influencing people to act in the pursuit of achieving a common goal -- A fformal role includes strategic decision making, authority, power, responsibility -- An informal role involves traits, interaction, behavior, visiion, values, charisma, intelligence

9 Tips for better Program Funding

1. Adopt the right nonprofit pricing mindset 2. Stop marking up costs 3. Set prices that capture value 4. Create a Value Statement 5. Understand the customers have different pricing needs 6. Implement differential pricing 7. Offer product versions 8. Provide "Pick a plan" options 9. Use pricing tactics to complete your customer puzzle

Parts of an Environmental Scan for Nonprofit

1. Is part of a SWOT analysis 2. Identifies nonprofit or private sector competitors 3. Is a process for examining how political and social trends, economics, demographics, and legislation may impact an organization's objectives

A nonprofit will follow the Statement of Financial Accounting Standards to report finances

1. Statement of Financial Position 2. Statement of Activities (revenues and expenditures) 3. Statement of cash flow 4. Statement of Functional Expenses

5 major issues with strategic planning

1. they do not take financial sustainability seriously 2. Rarely describes HOW to achieve the goals 3. failing to build analytic capacity or relationships for the organization 4. Questions can go left unanswered 5. Confusion, Disagreement, and Financial problems are mistakenly attributed to the lack of strategic plan

Answers derived from ToC

1.Who are you seeking to influence or benefit (target population)? 2.What benefits are you seeking to achieve (results/outcomes)? 3. When will you achieve them (time period)? 4. How will you and others make this happen (activities, strategies, resources, etc.)? 5. Where and under what circumstances will you do your work (context)? 6. Why do you believe your theory will bear out (assumptions and evidence)?

IRS Classification of nonprofits

501(c) - Exempted from federal and state taxes on profits and local property tax (26 categories of tax exemption)501(c)(3) - Eligible to receive tax deductible contributions from donors

Tax Exempt Form

990 form

Executive Director

A board of directors may hire an Executive Director (lead staff person) to be responsible for implementation of the organization's goals. The Executive Director is directly accountable for the work of the staff and supports the work of the board.

operating budget

A financial plan that provides a detailed statement of all of the expenditures and revenue necessary for the day-to-day operation of an agency for a one year period

What should the model be based off of

A firm understanding of the target population, the root issue, related issues, and background research

For Profit Financial Model

A for-profit generates income through the economic activity it conducts internally (i.e. producing and selling goods and services)

Logic Model: illustrate Accomplishments

A logic model is a chain of connections showing what the program is to accomplish.

Mission and Money statements

A strong mission facilitates fundraising. A strong financial standing enhances program outcomes.

When designing a program the following components must be determined:

Activities - what is being offered to participants/ clients Sequential order and phases of activities Accessibility, including location and activity hours Duration or time span of activities Length and frequency of contacts with participants Program staffing

Facilities and services delivery

Advantages, strengths, effectiveness; plans for expansion or renovation

Capital Funds

Also called "brick and mortar" Includes new buildings, additions, or major renovations May also include large equipment Capital support is generated through: Individual major gifts Corporate gifts Grants from foundations or government

General Operating Expenses

Also called "unrestricted" or "general fund" Expenses of carrying out the mission Could be programs, salaries, services Challenge: Although most organizations need unrestricted contributions, these can be the hardest to acquire because: The negative stigma of "paying for the overhead" Difficult to market and report outcomes Sustainability issue (will need support again next year)

Length and Frequency

Also related to timing, determine the frequency of contact. How often will staff and recipients interact? For how long during each interaction?

Transgressions

An act taken by an organization that knowingly puts its stakeholders in harm's way Financial scandals Knowingly victimizing benefactors Violating laws

Advisory Board Model

An advisory board model is one where a CEO or manager is the actual founder of the organization. The board serves to fulfill the legal requirement for initially registering the nonprofit and continuing to maintain it as a 501(c)(3) organization. While a CEO and managers may be the best people to manage the operation, they often need advice and guidance from other community professionals, such as people with expertise in finance, law or the industry with which the organization is affiliated. An advisory board may be the organization's board. Alternatively, nonprofit organizations may set up an advisory board in addition to a governing board. The governing board takes responsibility for oversight and planning and the advisory board provides guidance as needed. Sometimes, advisory board directors are also people with a positive reputation, which can boost the nonprofit's prestige a

Endowments

An endowment is a permanently restricted net asset, the principle of which is protected and the income from which may be spent and is controlled by either the donor's restrictions or the organization's governing board. Endowments may provide revenue to support operations or special programs In academic settings, the revenue earned from an endowed chair is used to pay salaries or specific expenses related to an academic program Endowment policies provide the details of the administration and investment of the endowment Gifts to the endowment are usually secured through: Special campaigns Major gifts Planned gifts (typically bequests)

Program Rationale

An explanation of why the proposed program model is expected to achieve the desired results

Nonprofit Program

An integrated set of services or activities conducted to meet specific goals.

faux pas

An unintentional act to an external party or a violation of social norms that is challenged by an outsider

Theory of Change: Purpose

Articulate all assumptions including those things that are in your control and those that are not. It isused to create the program in a particular context

Criteria essential to the fundraising profession include

Autonomy systematic knowledge self regulation commitment and identification altruism and dedication to service ethics and sanctions

Three levels of why people volunteer

Basic: Self serving/makes them feel good Secondary: Relationship Drive Volunteer with Friends Highest: Belief Drive

Hiring Questions

Before hiring a new employee, ask:-What tasks and duties must be performed? -Can someone already in the organization do the job? Retaining employees is more cost-efficient than hiring new ones. -Can services be obtained by means other than hiring? -Does the person need special education, professional credentials or experience? -How long will it take to hire? -How will duties be performed in the meantime? -What are the expectations for the productivity of new hires? -What support services will the new hire need?

Who is responsible for final approval of a nonprofit's annual budget?

Board of Directors

Grant Budgets

Budgets that reflects a particular project or activity utilizing grant support May not coincide with regular budget development Requires careful approval system

Innovation

Change that creates a new dimension of performance.

Three ways of funding a nonprofit

Charge for the work they do (classes, memberships, services, and products produced) Donations Find other ways

Mission Drift

Chasing Services unrelated to the mission chiefly for financial benefits

Characteristics of all Nonprofits

Collective or public purpose identified in the mission statement Designation as a tax exempt entity Assets cannot be divided among directors, officers, or members

Meeting fundraising goals

Commitment Case for Support Local Impact Measurable Outcomes How will Money be Spent Asking for Money Stewardship

Opportunity Budgets

Completed only when all other budgets are well planned and established Planning and examining new opportunities Reduces risk of new ventures

Theory of Change Model

Comprehensively spells out how your program will use short term activities to reach long term impacts

Elements of a good PR story

Conflict Brevity Telling the conclusion first

Accessibility

Consider the ease of access to activities or services. Consider potential barriers and find solutions and alternatives. Physical barriers - Ex. Is the location suitable? Logistical barriers - Ex. Do the hours meet the needs of those served? Financial barriers - Ex. Is there a cost that prevents some from accessing services? Cultural barriers - Ex. Do cultural norms or attitudes make it difficult to involve some? Length and Frequency Also related to timing, determine the frequency of contact. How often will staff and recipients interact? For how long during each interaction?

Duration of Activities

Consider the timing of the activities. Do they take place over time or within a more definite time period? Consider the length of contact. How long is each encounter or session?

Elements of Internal Controls

Control Cues Policy Communication Segregation of Duties Record Keeping Budgets Reporting

Fundraising Cycle

Cultivation, Solicitation, Stewardship

Every nonprofit leader should possess certain "universal" leadership qualities and skills. Which of the following is NOT a critical leadership skill?

D. Data Management

Establishing a crisis communication team

Decide who is on the team Identify and train spokespeople Evaluate how the team did post crisis

Planning and Evaluation

Demonstrate commitment, strengths, and impact; inspire confidence

Goals

Desired achievement expected to solve problem

Activities

Detail the range of activities and events likely to occur. Beginning with how those to be served come in contact with the agency through standard operating procedures Develop contingency plans to anticipate how to handle things that could occur, but are not anticipated (i.e. injury of participant/client).

Program Staffing

Develop a list of staff positions, including numbers and types of staff and documentation of their roles, tasks, and responsibilities. An organizational chart can be helpful in creating a visual aid to show how staff supervision occurs (who supervises who)

To promote ethical decision making, nonprofit leaders should emphasize all of the following

Development and integrate a Code of Ethics into all organization processes. Assure that policies and procedures are in place that emphasize transparent and accountable operational processes, including conflict of interest policies and whistleblower policies. Nurture an organizational culture that asks important and sometimes uncomfortable questions that focus on the organization values.

Typical annual giving vehicles include

Direct Mail Mobile Giving Special Events

Steps on how to conduct a community needs assessment

Directions Review Organizational Materials Begin by reviewing your organization's own information, including budgets, annual reports, strategic plans, etc. Also, review evaluations of previous and current programs to uncover unmet needs. Review Social Indicators Social indicators are quantitative measures, often found through public records, that indicate the need for services. Examples of these include demographics, socioeconomics (e.g., U.S. Census, NRPA, AARP, public schools. data). Conduct Surveys Surveys are used to gather information about individual and collective preferences, opinions, and attitudes. They are also used to determine the needs/wants/desires and measures to support prospective programs. One can mail surveys and questionnaires or conduct phone surveys Host a Community Forum Community forums are open meetings such as Town Hall or Public Forums. These meetings allow community voices to be heard. Conduct Interviews and/or Observations Interviews provide direct feedback - a two-way conversation. To conduct an interview, one should prepare standardized questions and be prepared to take extensive notes or recordings. Once data is collected, analyze and look for themes. Conduct Focus Groups Focus groups provide valuable small group input about needs and concerns. They can be set up to operate on a continuous basis. Identify Stakeholders A separate but related step in the needs assessment/program development involves identifying who can assist in lending their expertise and perspectives to the program development process. Examples of stakeholders include: Program staff & management Past and/or current individuals served by the organization Board members Funders Other professionals working in the content area Community partners

How To: Legally Incorporate a Nonprofit and Tax Exempt Status

Directions The organization's founders act as the organization's incorporators, filing the required paperwork with the state and potentially the IRS. The founders are usually personally connected to the organization's mission and passionate about the cause. State the corporation's purposes in a way that provides flexibility for growth and change without requiring Articles of Incorporation to change as well. (Note: the purpose in the Articles of Incorporation is often the initial mission of the nonprofit organization.) Draft articles of incorporation and have a vote of approval by founding board members. Have a minimum number of volunteer board members on record. Three is the fewest, some states require more. File paperwork with the state government and pay a filing fee. After filing Articles of Incorporation with the Secretary of State (or appropriate state agency) and being granted corporate status, incorporators may request tax-exempt status from the IRS. -Complete IRS Form 1023 for 501(c)(3) status. Following incorporation, regular reporting and annual fees to the state are mandatory for nonprofits to remain in good standing. Additional Paperwork: Taxpayers Bill of Rights II In 1996, President Bill Clinton enacted stricter policies to punish individuals affiliated with charities and social welfare organizations involved in financial abuses and provide government sanction beyond revocation of tax exemption. This Bill of Rights required that Form 990s be provided to any taxpayer who requests it. Nutrition Facts Charitable exemptions are defined in 501(c)(3) of the tax code. These organizations enjoy the most tax privileges. Advantages of 501(c)(3): -The entity does not pay most forms of tax to the state or federal governments. -Donors do not pay taxes on the money contributed to the entity, to the extent allowable based on the donor's personal tax situation. Disadvantages of 501(c)(3): -Substantial application fee that is nonrefundable. -Prohibited from participation in partisan political activity on behalf of a political candidate. -May not substantially engage in lobbying or propaganda. Note that "substantially engaging in lobbying" does not mean that nonprofit organizations are not allowed to engage in lobbying or participate in advocacy work, rather that they are limited in the amount and type. -Accountability is high. Sunshine laws require organizations to disclose articles of incorporation and Form 990 to the public; meetings in most states are open to the public if government funding is received.

The fiduciary duties of a nonprofit board of directors include:

Duty of Care, Duty of Loyalty, and Duty of Obedienc

Three areas of internal controls

Effectiveness and Efficiency of operations Reliability of financial reporting compliance with applicable laws and regulations

Sequential Order and Phases of Activities

Establish the program process or cycle. Need an orderly progression.There may be major phases (i.e. assessment phase, intervention phase, etc.), each with particular sets of activities.

Good things that come out of strategic planning

Establishing goals, issues, values, priorities Process can help ID issues within the organization Space for new ideas

Evaluation

Evaluate the process by which an organization can determine if a program is effective at accomplishing its purpose

In typical nonprofits, the executive director and her/his staff govern the organization and board of directors are responsible for the management and operations of the organization.

FALSE

Nonprofits have to balance their budget

FALSE

Researching programs addressing similar issues in other communities is not a good use of time during the program development process.

FALSE

Sticking to the "letter of the law" for all organizational and leadership decision making will ensure that all decisions are ethical.

FALSE

The state government assigns a mission to the nonprofit organization when it is incorporated.

FALSE

True or False? Charitable nonprofit organizations are prohibited from participating in any form of political activity, including lobbying

FALSE

True or false? When a nonprofit organization experiences a crisis, the executive should not waste time making sure the staff understand the crisis and related issues.

FALSE

What is the largest category of income or revenue for a nonprofit

Fees for Service

Organizational characteristics that encourage innovation

Focus on the overall outcome of the group, rather than individual performance Minimal formal structures and hierarchical roles A culture not critical and engaging

for-profit business

For Profit has a Two-way exchange: a good/service is provided in exchange for payment; both sides give something and get something

Grants come from

Foundations corporations government agencies

Types of Staff

Full-time/Part-time Employees Paid Contractors Temporary Workers Outsourcing Volunteers

Key points for nonprofit organization leaders for fundraising

Fund development makes philanthropy possible. Fund development is a process and a profession- a profession founded on a commitment to service, ethics, research, and theory, and voluntary certification to protect the public. Fund development plans, goals, and activities are aligned with the organization's strategic plan and integrated with operations. Fundraising excellence requires adherence to ethical and legal standards as well as good decision making.

Members of the Board of Directors

Fundraising, Budget and Finance, Nominating, Other committees (think of kappa's exec)

Consequences of Mission Drift

Funds seldom cover full cost - even with new funding, 100% of costs are usually not covered, so the organization has to find a way to provide resources as well. Pull resources from other programs - in creating new programs/services, the organization has to shift its resources. Limited time for funding - most grants provide funding for one year. Special interest constituencies - as soon as you bring in new funders/donors, they begin to have an investment in your organization and may have an opinion about how you do things.

Segmentation strategies for nonprofit social media

Geographic Psychographic Needs/Wants Demographic

Special initiative funds

Gifts restricted for special initiatives or programs may be secured through individual major gifts, foundation grants, or government funding. Restricted gifts must be used according to the donor intent and the gift agreement terms.

In a culture of philanthropy, each board member is responsible for

Giving an annual contribution to the best of personal ability

Legalities to consider while fundraising

Governance State Laws Federal Laws

Governance

Governance is the beginning point for prudent decision making in fundraising. As we learned in Course 1, Nonprofit Governance, we will review the fiduciary duties of the Nonprofit Board. Duty of Prudent CareRequires directors to exercise their responsibilities in good faith and with the diligence and skill that a prudent person would under the same circumstances.Duty of ObedienceRequires directors to ensure that the nonprofit to caries out its mission.Duty of LoyaltyRequires directors to avoid acting in ways that may harm the nonprofit or result in personal gainIt requires directors to avoid conflicts of interest.

Nonprofit Organizational Structure

HOW responsibility and work are designed to accomplish the organization's mission.

Program Budget

In order for the budgeting decision maker to have a full understanding, the Program Budget should identify individual activities or events related to the program. identify costs and revenues related to the program. include a clear narrative that provides justification and explanation.

Staffing

Include qualifications and strengths

Programs and Services

Include stories of how people benefit

Systems View of Accounting Annual Audit

Inputs: Cash Receipts, Cash Disbursements, Other $ Transactions Methods: Accrual Method, Cash Method Outputs: Records of Revenues, Public Support, Expenses, Liabilities, Fund Balances

Terrorism in an organization

Intentional acts by outsiders with the goal of doing harm to others and the organization hostage taking Product tampering workplace violence sabotage

Developing relationships with elected officials and their staff....

Is a useful and appropriate strategy for advocating for public policy that impacts your nonprofit and organization's constituents

Who should the Community Needs Assessment be directed at

It can be to the community at large or/and individuals or groups within th ecommunity

Marketing for nonprofits is important because...

It tells a story about the organization that allows customers to connect

Cultivation

It's important to remember that during the cultivation phase a fundraising professional should be considering the donors needs over the needs of the organization. The role of the fundraiser is to engage the donor with the organization in ways that are personally meaningful to the donor. The fundraiser also is the conduit between the donor and the donor's vision. When trust is earned, fundraisers have the honor of helping donors make gifts that are meaningful and effective (Gattle, 2011).

Interactional Framework for Analyzing Leadership

Leader: Personality, position, expertise Followers: Values, Norms, Cohesiveness Situation: Task, Stress, Environment

Leadership Myths

Leaders are born, not made Good leadership is all common sense The only school you learn leadership from is the school of hard knocks

Leadership vs. Management

Leadership: Vision and long term perspective Nurture innovation Inspire loyalty and risk taking Asks what and why Managers: Handle daily operations Maintain and control Focus on tactics and execution

nonprofit organization

Legally constituted, NGO, chartered by state governments. Nonprofits have a public focused mission and are typically exempt from payment of federal and state income taxes

Advantages of becoming an Incorporation

Limited Liability: Officers and directors are not personally liable for lawsuit judgements and debts Tax Advantage: Incorporation is required for tax exempt recognition Structure, Accountability, Perpetuity, and Authority: A reasonable expectation that the entity will continue to honor agreements even if the interested party disassociates with the organization Ancillary Benefits: Lower postage rates, better access to media, increased access to volunteers, Strengthened Halo Effect (trust built by nonprofit status)

Performance Budgets

Links and compares resources used (Inputs) and outputs/outcomes produces Increases information for decision-making purposes Includes performance indicators such as: workload measures, efficiency measures, effectiveness measures

disadvantages to becoming and Incorporation

Loss of centralized control Admin Burden: paperwork, IRS, board meetings Expenses: Time and Money Loss of being able to support political endorsements

The functions of marketing and development may be assigned to the same department in a nonprofit organization because

Marketing and development share key principles including a customer or stakeholder orientation

Professional codes of ethics call for organizations to do each of the following

Meticulously honor gift restrictions of the donor Have a formal donation acceptance policy Resist undue influence of donors over programs and activities

Professional Fundraising codes of ethics calls for organizations to do each of the following

Meticulously honor gift restrictions of the donor have a formal donation acceptance policy resist undue influence of donors over programs and activities

Elements of a case statement

Mission statement Goals objectives programs and services finances governance staffing facilities and service delivery Planning and evaluation process History

Key Concepts in Nonprofit Management

Mission: Mission is why the organization exists Fundraising is Fundamental: All nonprofit organizations need resources to fund programs and activities. A strategic look at fund development appropriate to each organization and investing in the approach leads to success Recruiting potential leaders to the organization and developing their skills over time strengthens the organization today and tomorrow Clear measurements: Successful nonprofits measure what they do to ensure effectiveness.

A program director is responsible for:

Monitoring the income and expenses for own program area

What describes the program director's budgetary duties?

Monitoring the income and expenses for specific program area

Program Development

New Programs: New solutions or approaches to a problem or issue Program Changes: Revision of existing program to improve outcomes or to respond to the changes in the environment or new information

Program Funding

Nonprofit organizations approach program funding differently depending on the program. Some programs must be self-sustaining, without relying on outside funding through donations and grants. Other programs may be subsidized through donations and grants.

Cooperative Model

Nonprofit organizations that favor the cooperative model don't employ a CEO or manager. It's the most democratic model because the board makes all decisions by a consensus of the board. This model doesn't have a hierarchy, and the balance of power is equal among all board directors. Think of it as a group of individuals working together for the same cause — all with an equal stake and an equal amount of power. Organizations that use the cooperative model only form a board of directors because the law requires them to, so the board is a figurehead only. Since all board directors share equal power of leadership, all board directors have equal responsibility for the actions

Nonprofit Financial Model

Often one-way exchange - For example, donations made out of generosity, for which nothing is provided or expected in return; services provided for those receiving who may not be able to contribute toward the costs of those services.

What is a bad mission statement

Only communicates the What and How

Types of Budgets

Operating Program/Unit Capital Opportunity Zero Based Grant Performance Cash Flow

Which statement best describes how Public, Nonprofit, and Private are comparable

Organizations in each of the three sectors need revenue/income to cover of staff, space, utilities, and operational costs

How do you evaluate

Outcomes speak to the social impact achieved by the work of a nonprofit organization...how knowledge, attitudes, behaviors, and/or conditions will be different for a person, community, or society.

Donor Bill of Rights

PHILANTHROPY is based on voluntary action for the common good. It is a tradition of giving and sharing that is primary to the quality of life. To assure that philanthropy merits the respect and trust of the general public, and that donors and prospective donors can have full confidence in the not-for-profit organizations and causes they are asked to support, we declare that all donors have these rights: A DONOR BILL OF RIGHTS I To be informed of the organization's mission, of the way the organization intends to use donated resources, and of its capacity to use donations effectively for their intended purposes. II To be informed of the identity of those serving on the organization's governing board, and to expect the board to exercise prudent judgment in its stewardship responsibilities. III To have access to the organization's most recent financial statements. IV To be assured their gifts will be used for the purposes for which they were given. V To receive appropriate acknowledgement and recognition. VI To be assured that information about their donations is handled with respect and with confidentiality to the extent provided by law. VII To expect that all relationships with individuals representing organizations of interest to the donor will be professional in nature. VIII To be informed whether those seeking donations are volunteers, employees of the organization or hired solicitors. IX To have the opportunity for their names to be deleted from mailing lists that an organization may intend to share. X To feel free to ask questions when making a donation and to receive prompt, truthful and forthright answers.

Mobile Giving

People your organization is trying to reach are on mobile devices. 40% of website traffic is currently from mobile devices, and 2/3 of people view email on their mobile devices, according to Heyman (2016). Make it easy for people to read your emails, look at your website, and donate through their mobile devices. Tips for maximizing mobile giving: Optimize your website and email Optimize your donate page Tell your story effectively Integrate mobile tactics such as Paypal or Eventbrite for events Get social by making a viral thank you for donors Stay current

Policy Governance

Perhaps the Policy Governance model is the most popular governance model for nonprofit organizations. This model is much like the basic volunteer board with a CEO or manager. The difference is that the policy governance model is a little more formalized version, with standing committees and regular meetings. This model gives the CEO much latitude in making decisions and in running the organization. The board evaluates the CEO's performance and sets compensation

Potential barriers affecting accessibility in program design include all of the following

Physical Financial Cultural

Those in charge of financial oversight must:

Plan for and measure funding needs. See that necessary resources are raised. Assure the acquired assets are dedicated to the nonprofit mission. Keep financial records to prepare reports and analyses of financial activity. Comply with regulatory and funder requirements.

Budget

Plan for getting and spending money designed to reach goals during a certain time period Translates idea into economic reality Commits organization to course of action Serves as a benchmark

Resource Allocation

Plan for using available resources (building space, equipment, supplies, staff, money), especially in the near term, across various programs/projects, to achieve goals for the future. The basic allocation decisions are: which programs/services to fund in the plan, and what level of funding they should receive, and which to leave unfunded.

Key roles of a Nonprofit Leader

Planning Coordinating Organizing Reporting Motivating Supervising Decision Making Managing finances Delegating Fundraising

PESTLE analysis

Political, Economic, Social, Technological, Legal, Environmental

Addressing Cash Flow Issues

Postponing major purchases, moving up dates of planned fundraising events, and transferring funds from reserve accounts

Resource Attainment

Process directed toward the identification and procurement of resources, both financial and otherwise. Gifts & donations Grants Fees & charges In-kind contributions Sponsorships Partnerships Volunteers

Pros and Cons of a line item budget format

Pros: Uniform, standardizes budget format, easy to set up, comparable Cons: Not Flexible, Category may not exist, Does not include detailed cost estimate, Does not show or explain what a program looks like

Internal Controls

Protect against intentional or unintentional misappropriation of a nonprofit's resources Checks and balances Discipline system Designed to provide reasonable assurance regarding the achievement of control objectives in three areas

Equal Employment Opportunities Commission (EEOC)

Protects against discrimination of employment decision-making based on protected classes Charged with enforcement of Title VII of Civil RIghts Act of 1964 Age discrimination in Employment Act Equal Pay Act ADA Genetic Nondiscrimination Information Act

Social media giving

Providing an easy way for volunteers to connect through social media should be part of your organization's overall fundraising strategy. By embracing social media, nonprofits can attract and engage supporters while generating tremendous exposure for their cause...as well as turn donors into fundraisers. The "P.O.S.T. to Social Media" framework shared by social media expert Beth Kanter can help attract others with your posts (Heyman, 2016): P = People you are trying to reach What do they care about? What do you want them to do? How can you engage them? O = Objectives Clearly communicate the outcomes of your work and the impact of donations. S = Social Engage people with your shareable story (try short videos), starting with your inner circle and social media committee before you launch T = Tools Explore tools to help manage your presence and campaign. These include social media and crowdfunding platforms, and tools for content curation, scheduling, and analytics.

Focus Group

Purpose To explore a topic in depth through group discussion, e.g., about reactions to an experience or suggestion, understanding common complaints, etc.; useful in evaluation and marketing Advantages quickly and reliably get common impressions can be efficient way to get much range and depth of information in short time can convey key information about programs Challenges can be hard to analyze responses need good facilitator for safety and closure difficult to schedule 6-8 people together

Observation

Purpose To gather accurate information about how a program actually operates, particularly about processes Advantages view operations of a program as they are actually occurring can adapt to events as they occur Challenges can be difficult to interpret seen behaviors can be complex to categorize observations can influence behaviors of program participants can be expensive

Questionnaires

Purpose When one needs to quickly and/or easily get lots of information from people in a non-threatening way Close Advantages can be completed anonymously inexpensive to administer easy to compare and analyze administer to many people can get lots of datamany sample questionnaires already exist Close Challenges might not get careful feedback wording can bias client's responses are impersonal in surveys, may need sampling expert doesn't tell full story

Interviews

Purpose When one wants to fully understand someone's impressions or experiences, or learn more about their answers to questionnaires Advantages get full range and depth of information develops a relationship with the client can be flexible with the client's needs Challenge scan take much time can be hard to analyze and compare can be costly interviewer can bias client's responses

Logic Model

Puts your theory of change in to action by illustrating a series of "If-Then" relationships that lead to desired outcomes

Types of methods to evaluate

Questionnaire/Survey Interviews Documentation Review Observation Focus Groups

Program/Department

Reflect specific budget for individual programs or activities Enable employees to organize, carry out. and evaluate operations specific to a program or activity Present a piece of the overall organization operating budget

Cash Flow Budgets

Reflects actual cash coming and going within the organization Project payments and cash received month by month

Zero-Based Budget

Rejects Assumptions and Past experiences Starts at zero, ignoring the prior year's budget and building a brand new budget item by item Incremental budget more common Can be used for justification of spending

Purpose of Financial Statements

Relevant information to meet the common interests of donors, members, creditors, and others

Classification of Nonprofits

Religious charitable scientific literacy education public safety testing prevention of children and animal cruelty National ind international amateur sports competitions development

Lack of diversity was identified as a barrier to the organization's effectiveness. Which of the following would be appropriate next step for this board?

Review employee and volunteer composition to ensure that it reflects the diversity of the local community.

Another goal of CNA

See what the community already has to offer: Assets such as leadership, trust, or organization

Elements of a good and effective nonprofit marketing plan

Segmentation, targeting, and positioning Metrics Marketing goals

Utilized for long-range, high-cost, and long term budget items such as new buildings, vehicles, major facility renovations, etc Concerns finding the best means of financing capital projects Se

Separate document from an operating budget

Social enterprise

Social enterprises are social mission-driven organizations that apply market-based strategies to achieve a social purpose. Here are some tips for Social Enterprise: Develop a robust business plan before seriously considering launching a social enterprise. Focus on a venture that directly advances the mission of your organization. Identify the limits of time and money your organization can provide to support the start-up enterprise if it fails or falters. Ensure access to cash or lines of credit for the long periods between when you buy supplies and when you collect payment.

The window into the fiscal heart of a nonprofit organization

Statement of Financial Position

Sunshine Laws and the Sarbanes-Oxley Act in Nonprofit Organizations.

Sunshine Laws promote accountability and transparency for government agencies. The Sarbanes-Oxley Act of 2002 created the following policies affecting nonprofits: Increased financial accountability and oversight. Whistleblower policy to protect employees from retaliation or discrimination if they report fraud. Open meetings State by state, but apply only to nonprofit organizations who have a relationship with the government (i.e. contract, grant, etc). Primarily related to open meetings and sharing information with the public - "government in the sunshine."

Affirmative Action includes steps to increase representation of women and minorities through recruitment.

TRUE

Nonprofits have to innovate and keep up with current trends

TRUE

Program implementation activities can be evaluated as processes and outputs.

TRUE

The Executive Director and/or Financial Officer should monitor cash flow regularly.

TRUE

The following questions should NOT be asked during the hiring process: Anything related to race, gender, sexual orientation, religion, age, family situation (children, spouse, etc).

TRUE

True or false? According to research on giving, successful major gift campaigns receive 80% of donations from 20% of the campaign's donors.

TRUE

Managing Crisis in a nonprofit

Tell your story before the media tells it Publicly accept responsibility Put safety first Focus on customer service

community engagement

The Alliance for Nonprofit Management created the Community-Engagement Governance model. This model extends responsibility for governance to the constituents and stakeholders, with the idea that the nonprofit's success positively impacts the community, so the board should share the responsibility for governing it. This model allows for nonprofits to have much flexibility to govern themselves according to their size, needs, mission and development

11 trends for 2019 in philanthropy

The Boundaries Are Blurring Between Philanthropy and Business As Religiosity Changes, Donor Engagement Needs to Adapt For Nonprofits, the Tax Landscape is Far From Settled Nonprofit Media is Experiencing a Growth Spurt — So is Philanthropy's Response More Tools — and More Calls — to Align Foundation Culture with Mission and Values Nonprofits are Playing a Vital Role in Civic Engagement Concrete Strategies are Emerging for Implementing Diversity, Equity, and Inclusion Principles Powering Communities While Protecting Individuals The Wealth Gap is Becoming a Giving Gap As Donors and as Causes, Women are Taking the Lead in Philanthropy Foundations are No Longer Wedded to the Long Game

Federal Law

The Internal Revenue Code allows two types of 501(c)(3) organizations: Public benefit charities: Gifts to public benefit charities provide greater tax benefits to donors. Private foundations: Private foundations must comply with more restrictive rules. Donor-advised funds Alternative to a private foundation, held by public charities such as community foundation Public support test Requires that 1/3 of total support for organization must be derived from the public, not from one or a small number of persons Unrelated business taxable income Income tax benefits of charitable giving Gift and estate tax benefits Gift substantiation and disclosure Noncash gifts International philanthropy Donor privacy and confidentiality

One-Thirds Rule for NP Finances

The Internal Revenue Service has a guideline that nonprofits should not receive more than 1/3 of its revenue from anyone given source

Board and executives relationship

The board delegates its authority to the executive director to run the organization The board of directors cannot delegate legal obligations Successful executive directors assure that the board fulfills its its roles TRUST is critical for the partnership to work well

Board of Directors (BOD)

The board is comprised of volunteers who are the organization's legally liable authority. The board can configure the nonprofit in whatever structure it prefers to meet the organization's mission. Term limits are recommended to allow board members to rotate off the board without having to formally resign, so that new energetic members can be recruited.

Societal Benefit Organizations (SBO): The Latest Trend in Social Innovation

The broadest definition of a Societal Benefit Organization (SBO) is an entity that generates earned income for the purposes of an explicit social and/or societal mission. Also called for-benefit or for-society. New models driven by entrepreneurs motivated by social aims. Operated as L3C (Low-Profit Limited Liability Company) or Benefit Corps

Case Statement

The case for the organization is the statement of the cause, also known internally as "the case" or "the boilerplate." Its purpose is to show the organization's impact on the community for today and tomorrow.

Private Inurement Doctrine

The doctrine basically says that a nonprofit can't be set up to benefit a person instead of a cause. Specifically, this means that none of the income or assets of a tax-exempt organization may be permitted to directly or indirectly benefit an individual or other person who has a close relationship with the organization, particularly when that person is in a position to exercise a significant degree of control over the entity. The doctrine requires that these transactions or arrangements be tested against a standard of reasonableness, meaning that all transactions with insiders must be in line with industry norms. If found in violation of the private inurement doctrine its tax-exempt status can be revoked or denied.

Definition of Community needs

The gap between is and what it should be

History

The heroic saga of founders, staff, and others; credibility implied by success over time

The financial goal of the program is to break even. Which of the following data are not needed to determine the break-even point?

The location

Management Team Model

The management team model is a popular model for some nonprofits. Think about this model in terms of having a committee for every function that the board has. Nonprofits with a management team model may set up a human resources committee, fundraising committee, finance committee, planning committee, programs and activities committee, and other functions as necessary. Like the cooperative model, the board exists for the purpose of fulfilling regulatory re

Suggested guidelines for fundraising

The mirror test- If you use this solution, will you be able to look yourself in the mirror and feel proud The organizational test- Is your solution one for which your organization can stand tall infront of its donors and clients The front page test- Would this solution stand up under the scrutiny of the press

What does fundraising support

The money from fundraising efforts is directed into the following fund categories: General operating expenses Capital needs Endowment Special Initiatives

State Law

The oversight of nonprofit organizations at the state level typically rests with the state attorney general. The attorney general may bring a lawsuit in court or impose other relief in cases of mismanagement, theft, or other abuse. The secretary of state oversees nonprofit incorporation and certification The department of revenue handles applications for tax exemptions Definition of a gift and donor restrictions Subjective test, "disinterested generosity" Objective test, "no quid pro quo" Charitable pledges May be deemed enforceable contracts Charitable endowments Uniform Prudent Management of Institutional Funds Act State fundraising registration Some states require one-time or annual registration Internet fundraising State laws govern Internet solicitations Fundraising consultants and solicitors Regulations vary from state to state

Patron Model

The patron model was designed for nonprofit organizations that place a heavy focus on fundraising. The primary activities of the board are to arrange, facilitate and participate in fundraising activities. Thus, the board is primarily selected from among wealthy and influential individuals in the community who contribute their own funds and solicit funds through their personal and business networks. They don't often have many board meetings for the purpose of governance. The volunteers working in the organization typically govern themselve

Logic Model: Simple

The resources that go into the program - INPUTS. The activities the program undertakes - OUTPUT & PROCESS OBJECTIVES. The changes or benefits that result -OUTCOME OBJECTIVES/IMPACTS.

Outcomes for Logic Model

The results for individuals, families, communities Short Term (Learning) Changes in: Awareness Knowledge Attitudes Opinion Medium Term (Action) Changes in: Behavior Decision-making Policies Social action Long Term (Impacts) Changes in: Conditions Social (well-being) Environmental Health Economic Civic

Useful in Assessing:

The services an organization provides and its ability to continue to provide those services How managers discharge their stewardship responsibility

How does fundraising fit with an organization's strategic plan

The strategic plan provides the foundation for fundraising and rationale for why philanthropic support is needed. The strategic plan is written first and is the guide for all fundraising activities within the organization

Mission Statement

The why of the organization

Stewardship

This practice of genuine gratitude may be thoughtfully expressed to givers through: Thank you letters and gift receipts Donor acknowledgment and recognition Annual reports showing measurement of outcomes and impact Prudent investments of gifts High level of accountability to donors and public Recognizing that what we have is "on loan" for the improvement of our communities

Key motivators of volunteers

To help others Involved in community contribute to a cause develop new skills use their skills productively stay fit

Accountability

Today's nonprofit leaders are expected to ensure that financial controls are in place and to demonstrate that services offered are effective.

Capital Budgets

Tool for planning for a capital project, a major, nonrecurring expenditure

Transparency checklist

Transparency Checklist According to Independent Sector, the following information should be included on an organization's website: Vision and mission statements; Statement of values and code of ethics; Conflict of interest policy; Form 990 or 990-PF, with all parts and schedules (except contributors' list with amounts, which is protected under the Privacy Act). Form 990 must be presented to anyone who requests it; Most recent audited financial statements; Information on programs &impact of your work; Information on evaluation procedures for assessing the effectiveness and performance of the organization; Annual Report or another regular report on accomplishments; Information on accreditations the organization holds or certifications/standards it may meet; List of board members and officers, and staff (if you have security concerns you may refer inquiries to your switchboard or to a general information email); List of contributors (amounts of contributions should be disclosed only with permission)

True or False: Nonprofit organizations are typically created by a set of individuals who identify a common need or interest. Their ability to define what the group wants to do in terms of mission and vision is the first step on the road to organization incorporation or chartering.

True!

Recruiting from a rich pool of applicants is important to the success of most nonprofit organizations. Which of the following strategies is NOT an appropriate way to find and attract diverse talent?

Trust the job pool will reflect the diversity of your community without special effort.

Key Operational role for the Board: Hiring the exec director

Understanding the role of executive director is critical so they can Hire the right ED Guide the organization and ED according to the mission Evaluate the ED

Object Classification Budgeting

Uses numerical codes Adds another layer of coding More useful for accounting purposes

According to state law, which of the following is the legally liable body for a nonprofit organization?

Volunteer board of directors

The three different budgets

We need to increase reserves or pay down debt: adopting a surplus budget. When the organization's leaders decide that its cash and other reserves are lower than ideal, the organization can plan to generate more income than expenses, creating surplus funds that can be used in future years. A surplus may also be needed to provide funds for paying down debt or for easing cash flow. The board should direct staff to develop the draft budget by determining realistic income targets that nonetheless outpace expenses. If the organization can deliver on a surplus budget, it will have higher net assets (net worth) at the end of the year, and enjoy a stronger financial position. 2. We can't gain ground now, but we can't lose ground either: the break-even budget. Typically, organizations choose break-even budgets by default and the skin of their teeth. A first cut on the budget shows expenses much higher than revenue, so the staff then tries to figure out how to increase the revenue number (but still stay close to reality) and decrease the expenses (but not damage programs). The staff and the Finance Committee tack their way towards a break-even budget, and hope that their cautiously optimistic projections work out. 3. There are three typical reasons for adopting deficit budgets. First and rarest, the organization's leadership decides that its cash and other reserves are more than sufficient, and so spending some of those reserves in the coming 12 months is a good idea. They may choose to make one-time purchases or expenditures, or to give the staff one-year, non-permanent raises. At the end of the year they will have more expenses than income for the year, and thus a deficit for the year.

Questions to Assess a cultivation plan

What are the donor's interests, values, and passion? What is the desired purpose and impact of the gift? Is the gift a priority for the organization? How will it support the mission? What are the long-term implications of this gift? Does the gift provide enough resources for the organization to deliver the impact the donor envisions? Who will be involved in the solicitation? What assets will the donor use to create the gift? In what form and when?

Which one of the following questions expresses the key element in securing a corporate sponsorship?

What can we do for the corporation

Outputs for Logic model

What we do or Who we reach Activities (What we do) Train/Teach Deliver services Develop products and resources Network with others Build partnerships Facilitate Participation (Who we reach) Participants Clients Customers Agencies Decision makers Policy makers

Inputs For logic model

What we invest Staff Volunteers Time Money Materials Equipment Space Partnerships

Objectives

What will be accomplished by reaching goals

Documentation Review

When one wants an impression of how the program operates without interrupting the program. It can include a review of applications, finances, memos, minutes, etc. Advantages get comprehensive and historical information doesn't interrupt program or client's routine in program information already exists few biases about information Challenges often takes much time info may be incomplete need to be quite clear about what looking for not flexible means to get data; data restricted to what already exists

Can Nonprofits make money?

YES

Signs of Mission Drift

You look for the dollars first and build programs around the dollars. It is not clear what your mission is. There is a large turnover of staff/board members. The organization is in crisis mode and is finding dollars to stay afloat. Key staff and leaders begin to question why the non-profit is in business at all. There are questions about possible violations of your ethical standards

How to articulate your ToC

Your program's Theory of Change can be written in paragraph form or illustrated in a visual model, such as a Logic Model or an Outcomes Pathway Model.

Generally Accepted Accounting Principles (GAAP)

accounting guidelines that govern the content and form of financial reports

To create effective pricing models for nonprofit programs, all of the following factors should be considered

actual costs of the program. factors including demand and social benefit. price charged by other providers.

Mission Statement

determines whether the organization meets the requirements to be recognized as a nonprofit. A review of the mission statement is the first step of a comprehensive strategic planning process.

An employer's policy or practice that has a negative impact on employment opportunities of protected class individuals is referred to as __________.

disparate impact

The first step in effective program design

examination of community needs

Finances

expenses of providing programs and services; validation of need for philanthropy

Fund development is a separate activity independent of an organization's operations.

false

Who plays an important function in determining nonprofit status

federal, state, and local governments

Steps to becoming a legal nonprofit organization

first: state gov incorporating you

A program budget is:

for specific organizational activities or departments

Nonprofit Career to focus on three points:

how you treat others, taking risks, and having courage

Problems of strategic planning

it is driven by funders Used to deflect criticism or unrest delay decisions--expanding the problems and limiting solutions

Barriers to volunteering

lack of time people want to see immediate results dont want to do menial work

According to the National Council of Nonprofits, the top three trends for charitable nonprofits will continue to be:

limited resources; increased demands on nonprofits, stemming from increased needs in communities; and the growing awareness that every nonprofit and board member needs to be an active, vocal advocate for their nonprofit's mission to affect policies in the community, and at a national level.

What are nonprofit programs built around

operated to meet the strategic goals expressed in their mission

Governance

programs and services; validation of need for philanthropy Character and quality of leadership and structure

Identification

prospective donors are identified from 3 factors—Linkage, Ability, and Interest.

Accrual Accounting

recording in each fiscal period applicable expenses, whether paid or not, and income earned, whether collected or not.

Research

research is a system of information gathering and analysis designed to identify donors and follow them through the complete fundraising cycle.

The process for determining how to distribute available staff, building space, supplies, and money for programming is called __________.

resource allocation.

Good leaders are different from Managers by:

supplying vision/long term perspectives Nurture Innovation

Why do donors give

sustain or expand a solution the believe in Feel like they've made a difference Fix a problem they are worried about they see a connection between the organization's work and their own personal values. Get more of what they're interested in

When written effectively, evaluation outcome objectives include which of the following?

target population, direction of change, and degree of change

incorporration

the legal process used to form a corporate etity or company

Solicitation

this gift opportunity will fulfill the donor's aspirations and create the impact the donor envisions. Ask for the gift with confidence and conviction. Invite the donor to make a gift of a specific amount for a specific purpose, stating benefits of the gift to donor and organization. Stop talking and await the answer. Negotiate if necessary. Listen, acknowledge objection, and address concerns through discussion. Do not devalue the gift, but be prepared to discuss alternative giving opportunities. Focus on the donor's concerns rather than the organization. Close the gift. When consensus is reached, express gratitude and establish timeline for following up.