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Category: Best Practices

  • Developing Your Own Statement

    Developing Your Own Statement


    The Standards for Excellence: An Ethics and Accountability Code for the Nonprofit Sector calls for “all organizations to incorporate diversity, equity, and inclusion into their work as part of their missions.”  Most organizations have incorporated these principles into their organizational values, visions and goals.  The killing of George Floyd at the hands of police has created untold pain and fear among Black communities but has also mobilized leaders and organizations from across the nation to stand against systemic racism.  Staying silent in this time is not an option for organizations that have embraced a true commitment to diversity, equity, and inclusion.  Making a statement can highlight your organization’s unique mission and expertise, and provide an opportunity for you to educate the community on how the field in which you work is impacted by systemic racism.  It can also help your organizational stakeholders to clarify your analysis and action steps you can take.

    Below are some steps to take in preparing an organizational statement:

    • Read and listen to Black voices.
    • Have an organizational conversation. Invite Black people to speak first if they choose to do so.
    • Discuss the meaning of your mission, vision, and values statements in this context. How are they reflected your response?
    • Expect push-back, and talk about it in advance. Receiving criticism of your statement may be the sign that you are part of creating change, not just stating platitudes.  Your response to criticism will help you further your analysis and commitment.

    For the content of your statement, consider the following questions:

    • What is your mission, who do you serve, and how are people you are serving impacted by systemic racism?
    • What are our organizational values and how do we put those values into action now?
    • What analysis can we provide that is unique to our field?
    • How does our analysis link to broader, systemic, and institutional racism?
    • What help can we offer?
    • What actions will we take, and what commitments are we making?

    Always be non-partisan.  See resources from Alliance for Justice on 501(c)(3) rules for addressing the actions of incumbent officials in an election year.

    The process of creating a statement can help you deepen your commitment to racial equity, and uncover priorities you may have to deepen your work in this area.  We invite you to claim your expertise and stretch to consider and name laws or policies in your field that need to be examined with a racial equity lens.
     

    For more information on how you can incorporate the principles of diversity, equity and inclusion into the mission of your organization, please check out the Standards for Excellence educational resource packet Diversity, Equity, and Inclusion which offers advice and assistance on assessing your own diversity, equity and inclusion values, creating a strong and effective DEI policy, understanding the terms and language, as well as sample assessment and planning tools.

    The Standards for Excellence educational resource packet and the full series of all packets  – including sample policies, tools, and model procedures to help nonprofits achieve best practices in their governance and management – can be accessed by contacting a Licensed Standards for Excellence replication partner, one of the over 150 Standards for Excellence Licensed Consultants, or by becoming a member of the Standards for Excellence Institute. Members of Maryland Nonprofits have access to this and all 27 Standards for Excellence Educational Resource Packets through the member portal.

    We share our sincere wishes for your continued good health and patience as we all navigate these challenging and uncertain times.

  • Saying No to Proxy Voting on your Board

    Saying No to Proxy Voting on your Board

    Nonprofits are facing tough choices during this challenging time.

    As we discussed in last week’s 52 Tips blog post, nonprofit board members are needed now more than ever. Organizations are stretched, and need strong support from their governing bodies. The Standards for Excellence code offers the important tenet that “Board members are in a position of trust to ensure that resources are used to carry out the mission of the organization.” Boards cannot allow a lapse in service, especially now when so much is uncertain.

    You may find that board members have great intentions for being excellent board members, but sometimes are simply not able to fulfill responsibilities – such as regularly attending board meetings. Perhaps one of your board members serves as an essential worker (such as a nurse or a doctor or is involved in the food supply chain) and their work in this arena places severe limits on their ability to attend board meetings during the time of the pandemic.

    What if a dedicated board member wishes to participate but cannot attend a board meeting (or two or three or more)? What if the board member asked to send a proxy or a representative in his/her place? For situations like this, it is vital that we refer back to the Standards for Excellence code, especially the benchmark that states, “The board should be composed of individuals who are personally committed to the mission of the organization and understand their roles as fiduciaries in performing the legal duties of a governing body.”

    There is a misconception that an individual board member can delegate his/her vote to another board member when he/she cannot be present at the meeting. This is not the case. Generally, the use of proxies is considered a breach of an individual’s fiduciary responsibility as a board member and is contrary to law in many states. Proxy voting (or sending a representative in place of a board member) is a practice that should be avoided at all costs. In situations like we are experiencing, where in person meetings may be impossible, boards may wish to adjust their regular meeting time or day of the week in order to accommodate board members that may have less time for board activities during the current pandemic. For instance, your board may traditionally meet on Fridays at 10 am, but may find that greater participation can be garnered if you moved board meetings to a weekend or weeknight instead of during its “regular” time. Of course, you’ll want to follow your bylaws regarding providing notice of board meetings. Many boards have likely moved their board gatherings to virtual settings so perhaps the fact that meetings are more efficient and do not include any commuting time may make a move to a time that is not traditional easier for all involved.

    For more information on what voting practices are permitted, we encourage you to check out the Standards for Excellence educational resource packet Board Member Responsibilities which includes helpful resources and discussion on topics such as proxy voting, governance and fiduciary responsibilities, bylaws, board policies, expectations for board members, as well as board member development, training and orientation.

    This educational resource packet and the full series of all packets – including sample policies, tools and model procedures to help nonprofits achieve best practices in their governance and management – can be accessed by contacting a licensed Standards for Excellence replication partner, one of the over 150 Standards for Excellence Licensed Consultants, or by becoming a member of the Standards for Excellence Institute.

    We share our sincere wishes for your continued good health and patience as we all navigate these challenging and uncertain times.

  • 52 tips in 52 Weeks: Check in with your board—Update their profiles

    52 tips in 52 Weeks: Check in with your board—Update their profiles

    Since the Standards for Excellence program’s inception, nonprofits have received advice about how to run their board meetings, recruit new members, and avoid conflicts of interest, just to name a few of the ways we seek to strengthen boards. The Leadership section of the Standards for Excellence: An Ethics and Accountability Code for the Nonprofit Sector is a comprehensive section and includes benchmarks and best practices of the full range of board and staff leadership measures, as well as diversity, equity and inclusion – values applicable to all nonprofits.

    By now, in the midst of the pandemic, you have probably already checked in with your board members to see how they are doing and may have had a virtual board meeting or two. Perhaps you’ve had a few members that have missed a virtual meeting. If you haven’t done so already, it would be a good time to confirm that your board members have access to the technology needed to be active and govern remotely. Also, be prepared to make adjustments to ensure maximum participation. Inquiring about such issues will help everyone stay on the same page and ready to serve.

    While you are checking in, it may also be helpful to gather information to assess the current composition of your board.

    The Standards for Excellence states:

    · “The board should be composed of individuals who are personally committed to the mission of the organization and understand their roles as fiduciaries in performing the legal duties of a governing body;”

    · “The board should establish a rigorous board development strategy for recruiting and selecting new members and ensuring that the board has an appropriate mix of talent, connections to the community, and diversity.”

    Obtain updated biographical sketches for your board members. This information can help you to understand the background and key talents that your board members bring to the board room. This will help to refresh or expand your knowledge of their talents and interests—some of which may be particularly helpful in this time of pandemic.

    Are you bringing on new board members in the coming months? Seize the opportunity to make connections with current members and new members—with folks serving as board member mentors for others. Having bios in hand may help you with matching up such individuals and making rich and meaningful introductions. Profiles can also be shared with new board members through a board handbook or portal to facilitate introductions and team building.

    For more information on the composition of nonprofit boards, we encourage you to check out the Standards for Excellence educational resource packet Board Composition and Independence. This packet includes discussions and resources on board members’ commitment to the organization, employees serving on the board, board recruitment and selection, nominating processes and board development, board diversity, term limits, board size, and the voluntary nature of board members’ service.

    This educational resource packet and the full series of all packets – including sample policies, tools and model procedures to help nonprofits achieve best practices in their governance and management – can be accessed by contacting a licensed Standards for Excellence replication partner, one of the over 150 Standards for Excellence Licensed Consultants, or by becoming a member of the Standards for Excellence Institute.

    We share our sincere wishes for your continued good health and patience as we all navigate these challenging and uncertain times.

  • Operating at Home: Proper Controls during the COVID-19 Pandemic

    Operating at Home: Proper Controls during the COVID-19 Pandemic

    This has been an exceedingly stressful time for people, a time of uncertainty and mixed messages and having to adapt to a new style of operations. For some, this pandemic has meant that operations have ceased; but, for many, your programs continue.

    Your nonprofit’s revenue may be significantly lower for the next few months now that physical interaction is a safety hazard, and stay-at-home orders are in effect in many states. Nonprofit fundraisers and programming cannot proceed as anticipated, and many individuals are not able to work. Therefore, how you monitor, assess, and make use of your limited resources is critically important, and keeping track of your spending is even more so. The Standards for Excellence: An Ethics and Accountability Code for the Nonprofit Sector provides guidance here, stating: “Nonprofits should have written financial policies that are adequate for the size and complexity of the organization.  These policies should address investment of the assets of the organization, internal controls, purchasing, and unrestricted current net assets.”

    Ideally, you already have a policy for internal controls and are continuing to make use of it in these challenging times. Of course, during the COVID-19 pandemic, many nonprofits, by necessity, are finding that they must modify or revise some of their internal controls processes (whether due to staffing changes, inability to work in the physical office, or other challenges experienced in the midst of the crisis).  Any modifications you are instituting in your practices should be carefully documented.  The Standards for Excellence Code recommends that the internal controls policies should be in writing and should be approved by the board, so appropriate steps should be taken to ensure approval by the board as it is practical.  (See our resource on Remote Board Meetings.) The following guidance from our resource packet on Internal Control and Finance Policies may be helpful to consider:

    • Nonprofits should segregate duties so that steps in recording transactions are not all assigned to a single person.
    • Nonprofits should limit access to passwords and physical media.
    • Nonprofits should have a regular process for archiving transactions regularly and starting out fresh with new financial records.
    • Nonprofits should have clearly written procedures for handling transactions (checklists that can be initialed after steps are completed can be helpful).
    • Nonprofits should use sequentially numbered forms and documents, and accounting for all numbers.
    • Nonprofits should take care to review procedures regularly and update them from time to time.

    The Standards for Excellence educational packet on Internal Controls and Finance Policies includes helpful resources on what your Internal Control Policies should address, common misconceptions about why they are in place, and guidelines on what you should do.

    This educational resource packet and the full series of all packets – including sample policies, tools and model procedures to help nonprofits achieve best practices in their governance and management – can be accessed by contacting a licensed Standards for Excellence replication partner,– one of the over 150 Standards for Excellence  Licensed Consultants, or by becoming a member of the Standards for Excellence Institute.

     

    We share our sincere wishes for your continued good health and patience as we all navigate these challenging and uncertain times.

     

     

     

  • Navigating Remote Work

    Navigating Remote Work


     

    Like so many of you, I’ve recently made the change from working in my somewhat cluttered but beloved office to working remotely all the time. I have been a regular remote worker for one day a week (or one day every other week) for a number of years. This once-a-week opportunity to slip into my home office so that I could savor the peace and quiet, getting important “thinking and writing projects”  checked off the ever-present “to do” list, feels a lot different from my current full-time work from home arrangement with three kids, a barking dog, and husband all trying to get different tasks accomplished throughout the day. While I join so many others looking for the elusive quiet corner amidst the activity swirling around me, I can’t help but be grateful for my organization’s forethought  regarding remote work policies.

     

    When my organization determined that we would move our staff to full-time remote work last week in the midst of the COVID-19 pandemic, we were fortunate because we have the type of work that can be conducted online, and because we have the policies and the technology in place to accommodate such a shift. Besides double checking the laptop capability of our staff and ensuring that everyone on our team had the ability to log into virtual meetings, the logistics have, so far, been relatively seamless. Of course, having seamless logistics does not minimize the stress and uncertainty of the broader environment in which we’re living, working, and trying to stay safe and healthy.

     

    The Standards for Excellence: An Ethics and Accountability Code for the Nonprofit Sector states: “A nonprofit should have written, board-approved personnel policies and procedures that govern the work, actions, and safety of all employees and volunteers of the organization. The policies should cover the basic elements of the relationship (e.g., working conditions, telecommuting (if applicable), employee benefits, vacation, and sick leave). The policies should address orientation to the organization, employee evaluation, supervision, hiring and firing, grievance procedures, employee growth and development, and confidentiality of employee, client, and organization records and information.”

    We share our sincere wishes for your continued good health and patience as we all navigate these challenging and uncertain times.

     

     

    The Standards for Excellence educational packet on Personnel Policies, Employee Orientation, Compensation, and  Evaluation includes a helpful Nonprofit Guide to Remote Work. The Guide provides a list of benefits, drawbacks, and concerns, roles and responsibilities of the employers and employees, travel reimbursement, a sample remote work policy, a checklist for remote work, and a sample remote work agreement. 

     

     

    The Standards for Excellence Institute has made their Administrative Policies Educational Packet, Guide to Remote Work, and Crisis and Disaster Planning Resources free during this time. This educational resource packet and the full series of all packets  – including sample policies, tools and model procedures to help nonprofits achieve best practices in their governance and management – can be accessed by contacting a licensed Standards for Excellence replication partner, one of the over 150 Standards for Excellence Licensed Consultants, or by becoming a member of the Standards for Excellence Institute.

     

     

  • COVID-19: What Nonprofits Need to Know About Coronavirus

    COVID-19: What Nonprofits Need to Know About Coronavirus


     

    Over the past few weeks, coverage of COVID-19 (coronavirus) has dominated the news cycle. While the world has responded with swift mobilization, it is difficult to plan for the effect an outbreak could have on your community. Thankfully, infectious disease experts in Maryland and around the globe have developed advice on how to prepare for an outbreak, both personally and in the workplace.

    Some of the advice provided by the Health Department for healthcare professionals is also relevant to all of us:

    • Encourage basic infection control practices such as hand hygiene, environmental cleaning, respiratory hygiene, and cough etiquette
    • Ensure non-punitive sick leave policies
    • Strong internal and external communication

    Up to date as of March 13, 2020

  • What Should My Social Media Policy Look Like?

    What Should My Social Media Policy Look Like?


    This is part of a special series, brought to you by the Standards for Excellence Institute, to provide nonprofit leaders with a brief nonprofit governance and management tip weekly over the course of 2020. We hope these short tips will be helpful to you and the nonprofits you serve. If you have suggestions for future topics, please forward these to acmadsen@standardsforexcellence.org.

    While your website is certainly a good start for introducing yourself to the public, if you are seeking to engage with the public, social media is the tool to use. In the United States, almost 70% of adults had some form of social media account (mainly Facebook) in 2018 according to the Pew Research Center. In this market, the use of social media to further yourself and your group is almost a necessity. How you use social media – whether as an extension of your website, with general news and announcements, or as a personal face for your work – is  ultimately up to your organization; but, remember – using social media can change how the public interacts with you.  

    The Standards for Excellence: An Ethics and Accountability Code for the Nonprofit Sector states “Nonprofits should provide a meaningful opportunity for the public to communicate with a representative of the organization.” The Standards for Excellence code also encourages each nonprofit to have a board-approved social media policy. Social media affords that opportunity in an easily accessible and understandable way, but social media isn’t for everyone – and that holds true to nonprofits. You, as a leader of a nonprofit entity, have to ask yourself some important questions before creating a presence on social media. Consider:

    • Is my primary mission, program, and/or constituency one that is served better by the use of social media?
    • Is my organization capable of sustaining a social media presence?
    • Once this social media page/account is created, who will manage it?
    • What social media platforms will we use? Your target audience may be found on one or two platforms – why would you try to manage multiple if your constituency isn’t there?

    Social media is a tool, and its proper utilization will help you further your organization’s goals.

    The Standards for Excellence educational packet on Administrative Policies includes helpful resources on social media sites, what social media services may be best for you, do’s and don’ts of running an account, and helpful tips on how to best make use of your online presence.

     

    This educational resource packet and the full series of all packets  – including sample policies, tools and model procedures to help nonprofits achieve best practices in their governance and management – can be accessed by contacting a licensed Standards for Excellence replication partner, one of the over 150 Standards for Excellence Licensed Consultants, or by becoming a member of the Standards for Excellence Institute.

     

     

  • The All-Important Budgeting Process

    The All-Important Budgeting Process


    This is part of a special series, brought to you by the Standards for Excellence Institute, to provide nonprofit leaders with a brief nonprofit governance and management tip weekly over the course of 2020. We hope these short tips will be helpful to you and the nonprofits you serve. If you have suggestions for future topics, please forward these to acmadsen@standardsforexcellence.org.

    At the end of last year, due to term limits, I ended my service as the chair of the finance committee of a nonprofit that is near and dear to my heart. It was a position that involved a lot of work and many challenges, but I am grateful for the chance to have served. The opportunity to work with the nonprofit’s experienced and dedicated finance staff made my work so much easier, and in fact, a pleasure in many cases. 

    As I look back on the term, I can’t help but recall the budget setting process with its many steps and iterations. Seeking input from the different program areas, getting buy-in from committee members – and ultimately, our governing board—were all important parts of the budgeting journey. Our budget had a variety of different program areas and line items for the expense categories. Of course, we also spent time considering and developing the income categories and determining the best ways to pay for all of the important program initiatives.  Each year, we looked closely at the budget categories and proposed amounts in each of the categories—these included pledged gifts, special giving campaigns, events income, and a variety of different types of earned revenue, just to name a few.  Unfortunately, in some organizations, the revenue side of the budget is not as well planned (and executed) as the expense side of the budget.

    The Standards for Excellence: An Ethics and Accountability Code for the Nonprofit Sector states “Nonprofits should have sound financial and operational systems in place and should ensure that accurate records are kept. The organization’s financial and non-financial resources must be used in furtherance of tax-exempt purposes. Organizations should conduct periodic reviews to address accuracy and transparency of financial and operational reporting, and safeguards to protect the integrity of the reporting systems” and that “the board should annually approve the organization’s budget and the organization should be operated in accordance with this budget.”

    One of the most comprehensive Standards for Excellence educational resource packets, Financial Budgeting Reporting and Monitoring, was just updated and re-released in the last few months. In the packet, you will find a sample budget (with annotations) as well as a discussion of the budgeting process and the various roles different board and staff leaders play in the process.  The packet also features resources on financial statements, audits, direct and indirect costs and much more.

    This educational resource packet and the full series of all packets  – including sample policies, tools and model procedures to help nonprofits achieve best practices in their governance and management – can be accessed by contacting a licensed Standards for Excellence replication partner, one of the over 150 Standards for Excellence Licensed Consultants, or by becoming a member of the Standards for Excellence Institute.

  • Ethical Storytelling on Social Media from the Markkula Center for Applied Ethics

    Ethical Storytelling on Social Media from the Markkula Center for Applied Ethics

    “On social media, images and hashtags can spread like wildfire. Posts that go viral are usually those that prompt a visceral reaction from users who feel moved to reshare and, in the best cases, take action based on a post. The scale, reach, and free nature of social media make it lucrative for nonprofits on tight budgets to leverage it as a platform for soliciting donations and raising awareness through storytelling.”

    Anita Varma, the assistant director of Social Sector Ethics, as well as Journalism & Media Ethics at the Markkula Center for Applied Ethics, recently wrote on the topic of Ethical Storytelling on Social Media. Read the full article here. 

  • Curating an Annual Report

    Curating an Annual Report

    This is part of a special series, brought to you by the Standards for Excellence Institute, to provide nonprofit leaders with a brief nonprofit governance and management tip weekly over the course of 2020. We hope these short tips will be helpful to you and the nonprofits you serve. If you have suggestions for future topics, please forward these to acmadsen@standardsforexcellence.org.

    When I started with the Standards for Excellence in April 2019, one of my first tasks was to draft the 2018 Annual Report. After reading a few great annual reports for other organizations, I was overwhelmed – what should ours look like? What needs to be included?

    Turns out, there are general guidelines organizations should follow. The Standards for Excellence: An Ethics and Accountability Code for the Nonprofit Sector advises that a nonprofit’s annual report should include five main elements:

    1. Your mission statement –This should be your organization’s current board approved mission statement.
    2. Program activities – This can mean many things – new and continuing programs, grants or awards received, or events your organization has put on. This is a way for you to show your organization’s impacts over the last year – share charts, graphs, tables and narrative.
    3. Financial Report – The information in this section is crucial to any annual report. It should include (a) a summary of an organization’s statement financial position or a balance sheet of assets and liabilities as well as (b) a breakdown of income and expenses. Many organizations (us included!) present the data in graphs or charts for it to be more easily understandable.  If you do include charts and graphs, do be sure to include the totals rather than percentages only. 
    4. Names of Board Members – After all, these are the people who are ultimately responsible for governing the organization.
    5. Names of Management Staff – In the same way the public should know who is responsible for guiding the organization, it should be clear who they can contact regarding participating in programs or activities.

    The ultimate goal is to provide information to the public in a truthful and understandable way. So, in addition to these must-haves, you might elect to include a letter from leaders of your organization, donor recognition, discussion of partnerships, or your view of the future. You may also wish to augment the reports with quotes, case studies, and anecdotes from the past year. Whatever you choose to include, it should reflect truthfully on the work you do! Your annual report should be available to the public upon request and you should not charge a fee for it.

    More information is available in the Standards for Excellence educational packet on educating and engaging the public, which includes information on annual reports, as well as other methods for communicating with the public.

    This educational resource packet and the full series of all packets  – including sample policies, tools and model procedures to help nonprofits achieve best practices in their governance and management – can be accessed by contacting a licensed Standards for Excellence replication partner, one of the over 150 Standards for Excellence Licensed Consultants, or by becoming a member of the Standards for Excellence Institute.