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One of my favorite summer treats is to enjoy outdoor theatre under the stars. Sadly, this year the entire season has come and gone and I did not make it out to my favorite open air theatre once.  Don’t let the debut of your fall fundraising season pass by without taking a few moments to assess your organization’s fundraising policies. Why not take some time to look over your organization’s policies addressing the privacy of donor information? 

In many ways, our donors value their privacy now more than ever before.  As the Standards for Excellence:  An Ethics and Accountability Code for the Nonprofit Sector® states that nonprofits “should respect the privacy of donors and safeguard the confidentiality of information that a donor reasonably would expect to be private.”  In addition, the Standards for Excellence® code states that “Nonprofits should provide donors an opportunity to state that they prefer to remain anonymous and that their name, the amount of their gift, or other information not be publicly released” and finally, that “Nonprofits should provide donors an opportunity to have their names removed from any mailing lists which are sold, rented, or exchanged.”

Did you know? The Standards for Excellence® program’s educational resource packet, “Fundraising Practices” includes samples and templates for addressing donor privacy concerns.  The packet is free and available to Standards for Excellence Institute® members.  It is available through the members only section of the Standards for Excellence Institute® website.  Hard copies are also available upon request.

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 The Standards for Excellence® code states that “nonprofits should periodically conduct an internal review of the organization’s compliance with known existing legal, regulatory and financial reporting requirements and should provide a summary of the results of the review to members of the board of directors.” But just thinking about the plethora of national, state, and local laws and regulations that nonprofits must comply with can make your head spin. Here is where we can help.  The Standards for Excellence Institute’s Legal Requirements Checklist makes it easy to quickly identify which laws are applicable to your nonprofit and what you need to do in order to remain in compliance.  It provides detailed information about over 60 specific laws/regulations, including information about how to obtain forms that need to be filed and the due date for filings. Include among the areas covered are:

• Requirements applicable to tax exemption/tax exempt status;
• Requirements related to organizations with employees;
• Requirements for organizations with independent contractors and
• consultants;
• Requirements applicable to solicitations, fundraising, and related activities;
• Requirements applicable to lobbying activities; and
• Miscellaneous requirements.

 Use The Standards for Excellence® Legal Requirements Checklist to assure the board that your nonprofit is right on track. 

Did You Know?  The Legal Requirements Checklist is free and available to Standards for Excellence Institute® members through the members only section of our website.  Hard copies are also available upon request.  Not a member? Join now!

In this digital age, it is very easy to hold on to documents indefinitely – correspondence, memos, bank statements, employment applications, expired insurance policies – you name it.  The steps go something like, “Read.  File.  Forget about it. Repeat.”  Many of our files will end up in the paper graveyard, never to be retrieved again.  The likelihood of being able to quickly find something we really need quickly becomes harder as we amass more and more files. But how can we decide what to keep, how long to keep it, and what can be discarded? Turn to none other than your organization’s document destruction retention policy.

Besides the need to keep down the clutter, there are a number of legal reasons why having such a policy is important.  One, the IRS inquires about this type of policy on the Form 990. Two, the  Sarbanes-Oxley Act as well as under numerous other regulations impose document retention requirements.  You can cut your organization’s legal risks by preventing important documents from being destroyed unintentionally and by giving staff guidance on how long certain records should be kept to be in compliance with certain legal and regulatory requirements. 

Did you know? The Standards for Excellence® program’s educational resource packet, “990 Policy Compendium” includes a sample document destruction retention policy.  The packet is free and available to Standards for Excellence Institute® members.  It is available through the members only section of the Standards for Excellence Institute® website.  Hard copies are also available upon request.

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Fall brings the start of a new academic year and a set of fresh beginnings for many students, parents, and even charitable nonprofits.

While you are taking advantage of the terrific sales on school supplies and other back to school items, why not take some time to review your organization’s investment policies?  The Standards for Excellence:  An Ethics and Accountability Code for the Nonprofit Sector® encourages all nonprofits to have written financial policies—including investment policies as well as purchasing policies, internal control procedures, and policy on unrestricted current net assets.  Nonprofits are encouraged to make sure that these policies are adequate for the size and complexity of your organization.  Such policies should also be periodically reviewed.  When changes are incorporated as part of this review process, the revised policy should be brought before the board of directors for their review and approval.

Did you know?  The Standards for Excellence® Educational Resource Packet, Financial Policies,  includes a set of model investment policies that can be customized for use in your organization.  The packet is free and available to Standards for Excellence Institute® members.  It is available through the members only section of our website.  Hard copies are also available upon request. Not a member? Join now!

As colleges around the country are opening their doors for fall semester, many nonprofits will turn their attention to recruiting student and faculty researchers to assist with special projects.  There is no shortage of areas in nonprofit management, governance, fundraising, marketing, and operations where representatives of higher education may be able to provide assistance to nonprofits.  Program evaluation is one area where student and faculty researchers may be in high demand. Nonprofits can often benefit from bringing in outside experts to assist in developing a program evaluation strategy for the whole organization or a specific program area. 

As you engage experts, whether from a university or other source, keep in mind that the Standards for Excellence: An Ethics and Accountability Code for the Nonprofit Sector® encourages all nonprofits to “have defined, cost-effective procedures for evaluating, both qualitatively and quantitatively, its programs and projects in relation to its mission.”  In addition, “the evaluations should be candid, be used to strengthen the effectiveness of the organization and, when necessary, be used to make programmatic changes.” 

It is vitally important to remember that an organization’s program evaluation efforts should circle back to assessing the programs and projects in relation to the organization’s own mission. And while it might be cost effective to engage an outside expert, always consider whether your evaluation goals can be met.  If your organization finds that the assistance offered by an outsider suits their needs more than your nonprofit’s needs, it may be best to keep looking for another expert to assist.  

Did you know?  The Standards for Excellence® Educational Resource Packet, “Program Evaluation” is free and available to Standards for Excellence Institute® members.  It is available through the members-only section of our website.  Hard copies are also available upon request. Not a member? Join now!

Many nonprofits are asking for concrete steps to take to manage during these uncertain and tough economic times.  And there’s no lack of good advice floating around.  Most experts will say that managing in uncertain times requires you do to a number of things, including reflecting, visioning, and most of all, planning.  As Lewis Carroll wrote in Alice in Wonderland, “If you don’t know where you’re going, any road will take you there.”

The Standards for Excellence® code emphasizes the board’s responsibility to engage in planning on an ongoing basis.  By engaging in long-term and short-term planning, an organization can avoid the common mistake of viewing the planning experience as an event that happens once every three to five years.  The Code specifically states that the board should engage in planning activities as necessary to determine the mission of the organization, to define specific goals and objectives related to the mission, and to evaluate the success of the organization’s programs toward achieving the mission activities.  This effectively encourages each organization’s board to revisit its plans as often in order to be strategic and nimble as circumstances change.

Did you know?  The Standards for Excellence® program’s Educational Resource Packet, “Ongoing Planning by the Board,” includes a detailed discussion about developing a strategic plan, including some of the common pitfalls of planning. The packet is free and available to Standards for Excellence Institute® members.  It is available through the members only section of our website.  Hard copies are also available upon request.

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Nonprofits that operate with a volunteer executive director are often faced with the conundrum—should this person undergo an annual evaluation in the same way that a paid executive director would be assessed?  Or, should the evaluation be skipped because the salary adjustment issue is off the table?

The issue of evaluating the executive director is more complicated than simply being a precursor to providing your leader with a salary adjustment.  Even in the best of times, some nonprofits evaluate their executive director and do not follow that evaluation with a salary adjustment.  Failing to evaluate the executive director means that the board misses a major opportunity to assess how the chief executive is working to lead the organization toward fulfilling its mission.  In effect, the board is giving up its important responsibility for ensuring the accountability of the chief executive’s performance.  Without an evaluation of this individual, the board has no formal way to provide input as to how the chief executive leads the organization.  Moreover, it might also lead to a situation where there is a tremendous amount of power residing with the chief staff person.

With respect to volunteers, the organization’s policies and procedures should also “address initial assessment or screening, assignment to and training for appropriate work responsibilities, ongoing supervision and evaluation, and opportunities for advancement,” as clearly stated in the Standards for Excellence® code.

Did you know?  The Standards for Excellence® program’s educational resource packet, “Compensation and Employee Evaluation,” includes sample evaluation forms for chief executive officers. The packet is free and available to Standards for Excellence Institute® members.  It is available through the members only section of our website.  Hard copies are also available upon request.

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Whenever I ask someone who works for a nonprofit if their organization engages in lobbying, they cringe at thought.  We don’t lobby; bBut we educate our legislators about our cause.  We don’t lobby; but we provide comments on the governor’s budget.  We don’t directly lobby; but we belong to a coalition that lobbies on our behalf .   Is it just a game of semantics? 

According to OMB Watch’s, “Strengthening Nonprofit Advocacy Project,” a study of over 1700 nonprofits revealed that charities are participating in the public policy arena more often than you might think.  In fact, according to the study, roughly 75% of nonprofits reported engaging in at least one of the key types of political activity such as direct or grassroots lobbying or testifying at a legislative or administrative hearing.  The same study also revealed, however, that the frequency that nonprofits participate in public policy advocacy is generally low.

The Standards for Excellence® code states that, “Nonprofits should represent the interests of the people they serve through public education and public policy advocacy, as well as by encouraging board members, staff, volunteers and constituents to participate in the public affairs of the community.”  Consider this a charge to evaluate your organization’s current level of public education, direct and grassroots lobbying, and participation in public affairs.  You might find that it is time to do more.

Did you know?  The Standards for Excellence® program’s educational resource packet, “Public Policy Advocacy,” includes a discussion on permissible political and legislative activities for public charities.  The packet is free and available to Standards for Excellence Institute® members.  It is available through the members only section of our website.  Hard copies are also available upon request. Not a member? Join now!

Summer time brings many things—baseball, summer vacations, and for our organization, summer is typically the season for annual performance evaluations. Truth be told, it is hard to take the time to complete a meaningful staff evaluation process for all paid staff. The Standards for Excellence: An Ethics and Accountability Code for the Nonprofit Sector® states, “Organizations should have a system in place for regular written evaluation of employees by their respective supervisors, which should take place at least annually.”

But, as hard as it may be to dedicate the time to evaluate staff members at every level of the organization, it is vitally important—as it serves to: systematically assess performance and accomplishments compared to job descriptions and goals, provide a structure for communicating with employees about their job performance; and give constructive feedback related to employees meeting job requirements. The evaluation process can also be a valuable way to allow employees to contribute ideas for how they can enhance their own performance. Even in years where no salary increases are anticipated, the staff evaluation process should not be skipped.

Did you know? The Standards for Excellence® program’s educational resource packet, “Compensation and Employee Evaluation,” includes sample evaluation forms for staff. The packet is free and available to Standards for Excellence Institute® members. It is available through the members only section of our website. Hard copies are also available upon request.  Log in to access this educational resource packet. Not a member? Join now!

Each summer, thousands of students descend on the nonprofit sector in hopes of doing something meaningful.  We welcome them with open arms, knowing that volunteer labor can be a valuable resource if managed properly.  It’s often said that a volunteer today is a committed donor tomorrow.  We love our volunteers.

But ever so often, we must handle problematic situations that involve volunteers — poor performance, a lack of team work, or clash of personalities with employees or clients.  Would your employees have constructive means for addressing these problems, short of dismissing the volunteer?  The Standards for Excellence® code emphasizes that nonprofits should provide volunteers with ongoing supervision and evaluation.  Specifically, “an organization’s human resource policies should address both paid employees and volunteers, and should be fair, establish clear expectations, and provide for meaningful and effective performance evaluation.”

In short, giving volunteers an opportunity to receive feedback makes a space for problems to be resolved.

Did you know?  The Standards for Excellence® program’s educational resource packet, “Volunteer Policies,” includes a discussion on supervising volunteers and sample volunteer policies. The packet is free and available to Standards for Excellence Institute® members.  It is available through the members only section of our website.  Hard copies are also available upon request.

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