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Planning for the Next Annual Budget Cycle: Where Do You Start?[SUBSCRIBERS-ONLY]
Compiling the annual budget for the next fiscal year is always a challenge and requires as much pre-planning as possible. During periods of unpredictable volatility, we need to get started early and consider new strategies we might not have used in the past. Top-down budgeting and stress testing your funding sources might be the best way to get started on next year’s budget.
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You Cannot Let Your Guard Down When It Comes to Cyber Security and Fraud [SUBSCRIBERS-ONLY]
Attempted fraud and cyber security breaches are increasing. At the same time, distractions from our chaotic world and new operational realities are averting our attention. This is a bad mix. We need to double-down on efforts to protect our organizations. Reputations and sustainability are at risk, and navigating these threats is even harder during a time of crisis.
The Personal Liability Risks of Nonprofit Board Service
Serving on the Board of Directors of a nonprofit organization can be a rewarding experience that offers the chance to give back to a meaningful cause while providing a learning experience and opportunities to deepen one’s connections and stature within the community. However, this positive experience comes with a level of personal liability exposure under certain circumstances.
It’s Never Too Early to Start the Process of Finding the Right Treasurer
All officer positions on the Board are important. Finding the right experience, diversity, and balance matched to your organization’s evolving needs are key drivers of performance and sustainability. However, the position of Treasurer is special and requires a unique skillset. Thus, starting the process of finding the right Treasurer early and thoughtfully will benefit your organization substantially.
A Window of Opportunity for Collaboration Between Nonprofits is Opening
Numerous changes have been thrust upon nonprofits in quick succession this year. While these changes have brought on stark challenges, they have also opened up new possibilities for collaboration between organizations. This window of opportunity may not be open for long, so nonprofits should act now to take a serious look.
Adapting your Senior Executive Transition Plan to a New Reality
If your organization has long-standing and effective top senior management team members (CEO, Executive Director, COO, CFO, etc.) approaching the end of their tenure and you have a thoughtful transition plan in place – good for you. However, even the best plans might need adjustments, considering that recent circumstances have changed materially for most organizations. Consequently, reviewing your senior executive transition plan to take advantage of new opportunities and adapt to new hurdles is a most prudent course of action.
The First Page of the Form 990 Is Key to Making a Good First Impression
An organization’s Form 990 is universally recognized as a key source of information by the general public, including constituents, donors, grantors, sponsors, and governments. Yet, I often feel that many nonprofits are not paying enough attention to whether the Form 990 adequately tells the complete story about how hard they work to fulfill their mission.
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Annual Budget Process Assessment: Is Your Budgeting Process Helping to Drive Results? [SUBSCRIBERS-ONLY]
Stepping back once a year to take a high-level assessment of your budget system is both a best practice and a proactive exercise.
There are five important questions to keep in mind as you work through the assessment process.
A Case Study in the Risks of Fiscal Sponsorship
Nonprofit Quarterly recently covered an interesting case of fiscal sponsorship gone wrong. As originally reported by a local news website, Baltimore Brew, the case involves an organization called Strong City Baltimore. This situation is an unfortunate reminder that fiscal sponsorship presents many risks if not done correctly. In particular, the case exposes an often-overlooked reality that fiscal sponsorship cannot work if the fiscal sponsor does not have the capacity and experience to handle the immense responsibility of administering funds for a variety of sponsored projects.
Staying on Course: What to Do If You Are in the Middle of a Multi-Year Transformation Plan
Good for you if you started a major transformation plan before the pandemic hit. While the pandemic forced many nonprofits to quickly pivot to change mode, your organization is in the relatively good position of having already embraced and started this process. Now the challenge is how to stay on course while recognizing that the world around you has changed.
What I Look For When Deciding to Donate: An Attorney’s Perspective
The unprecedented social, economic, and public health upheaval of the past few months has led many people across the country to make heart-felt charitable donations (to the extent they are financially able to do so). Many would-be donors are looking to support nonprofits working in cause areas that may be unfamiliar to them, such as organizations providing COVID-19 relief, scientific research organizations, and organizations that combat racism.
Another Crisis-Driven Pitfall: Vacation Accruals
As nonprofit organizations continue to adjust to each new twist and turn this crisis throws at them, sometimes basic steps such as updating vacation accruals can catch you by surprise.
Now Is a Good Time to Reassess Your Nonprofit’s Governance Practices
The current pandemic has ushered in a very tenuous period of hyper-change and disrupted planning for most nonprofits. This crisis has required organizations to be laser focused on survival, continuity, and operating with maximum efficiency. For many organizations, these challenges have shed light on old or outdated governance practices that may have been taken for granted in years past and most likely should have been changed years ago.
Picking Between Mission and Financial Health and Sustainability: Which Comes First?
In the short-run you must pivot to favor financial health over mission so you can make it to the long-run and deliver more on mission in the future. Ensuring your organization will be around a long time will be the single most important factor to sustaining and then increasing delivery on mission.
Options and Tactics for Managing Restricted Funds During a Crisis
When there is substantial accumulated restricted funding in place and held on the balance sheet, most nonprofit organizations find themselves at great risk of inadvertently using restricted funds for purposes other than those agreed to with the donor/funder.