Upload
darrel-sims
View
19
Download
1
Tags:
Embed Size (px)
DESCRIPTION
Close Your Eyes, Tap Your Heels & Build a Moneymaking Board. Presented by Mary Beth Harrington, Passionate Nonprofit Expert 501c³ – Taking Nonprofits to the Third Power October 24, 2014. Housekeeping. Start on time and end on time Sign spreadsheet to receive handouts Q & A welcome! - PowerPoint PPT Presentation
Citation preview
Close Your Eyes, Tap Your Heels & Build a Moneymaking Board
Presented by Mary Beth Harrington, Passionate Nonprofit Expert501c³ – Taking Nonprofits to the Third PowerOctober 24, 2014
501c
³ - T
akin
g N
onpr
ofits
to th
e Th
ird P
ower
mbh
arrin
gton
64@
hotm
ail.c
om
Housekeeping
• Start on time and end on time• Sign spreadsheet to receive handouts• Q & A welcome!• Electronics muted please!• Business cards available upon request
2
501c
³ - T
akin
g N
onpr
ofits
to th
e Th
ird P
ower
mbh
arrin
gton
64@
hotm
ail.c
om
Biography• 10 years corporate marketing, public relations,
advertising (psychiatric hospitals, DFW Tourism)• Carter BloodCare, Marketing Director • Dallas Zoo, Graphics Specialist• Dallas Public Library, Volunteer Coordinator• Volunteer Center of North Texas – Agency Relations
Director• Austin Public Library Foundation – Executive Director• TANO – Community Outreach Director• San Antonio Area Foundation – Curriculum Development
Director• 501c³ - Taking Nonprofits to the Third Power - President
3
501c
³ - T
akin
g N
onpr
ofits
to th
e Th
ird P
ower
mbh
arrin
gton
64@
hotm
ail.c
om
501c³ - Taking Nonprofits to the Third Power
A few of our clients….• Texas Habitat for Humanity• US Tennis Association
(USTA) Texas• Meals on Wheels of
America• Texas Association of
Museums• Keep Texas Beautiful
America and Texas• Literacy Texas• Texas Library Association
• Texas CASA clients….• Brush Country CASA• CASA North Texas• CASA of Cameron and
Willacy Counties, Inc.• CASA of Hidalgo• CASA of Matagorda and
Wharton• CASA of South Central
Texas• Casa of Galveston County• Hill Country CASA• Lone Star CASA
4
501c
³ - T
akin
g N
onpr
ofits
to th
e Th
ird P
ower
mbh
arrin
gton
64@
hotm
ail.c
om
Board Development
• Education• Enlightenment• Empowerment• Exorcism
5
501c
³ - T
akin
g N
onpr
ofits
to th
e Th
ird P
ower
mbh
arrin
gton
64@
hotm
ail.c
om
Sources for Session Information
• Office of Attorney General of Texas• Secretary of State of Texas• BoardSource• Internal Revenue Service
6
501c
³ - T
akin
g N
onpr
ofits
to th
e Th
ird P
ower
mbh
arrin
gton
64@
hotm
ail.c
om
Magic of Moneymaking CASA Boards
7
Today’s AgendaA revenue generating board,
knows their roles and responsibilities!
• Responsibility of Governance• Fiduciary Responsibilities• Board Management and Recruitment• Responsibility of Financial Sustainability and
Advocacy• Nonprofit Resources
501c³ - Taking Nonprofits to the Third Power [email protected] 8
501c
³ - T
akin
g N
onpr
ofits
to th
e Th
ird P
ower
mbh
arrin
gton
64@
hotm
ail.c
om
Attributes of an Effective Nonprofit Board
•Commitment to the mission of the organization.
•Understanding of the board’s governance roles.
•Active involvement in board activities, committees.
•Thinking and acting strategically; not involved in day-
to-day management of the organization.
•Abiding by the Duties of Care, Loyalty and Honesty.
•Supporting the organization both financially and
through advocacy.9
Responsibility of Governance
501c
³ - T
akin
g N
onpr
ofits
to th
e Th
ird P
ower
mbh
arrin
gton
64@
hotm
ail.c
om
Strategic Direction
The Board has Ultimate Responsibility for Setting the Organization’s Strategic Direction.
• Annual planning retreat.• Strategic plan is kept alive.• Progress reports at every Board meeting.• Identify development goals for the board.
11
501c
³ - T
akin
g N
onpr
ofits
to th
e Th
ird P
ower
mbh
arrin
gton
64@
hotm
ail.c
om
Board Should Raise 10% of The Budget
FACT: 41% of nonprofit respondents ran a deficit in 2012• Board Should be Responsible for 10% of the
Nonprofit Budget• Could be with Give or Get Activities• The Board Must Really Understand the Money
Engine• The Board Must Share the Burden• The Board Must Tap Into Their Unique Assets
12
501c
³ - T
akin
g N
onpr
ofits
to th
e Th
ird P
ower
mbh
arrin
gton
64@
hotm
ail.c
om
Board Should Raise 10% of The Budget
• How to make this work:• Work one-on-one with each individual board member to
create an annual plan for how they will meet their part of the goal. • Give the board lots of different ideas for how they can meet
their goal. • Provide the training, materials, and education they need to
execute their individual plan. • Hold each individual board member accountable for their
individual plans and goals, check in with them every month to see how they are progressing. • Have the board report at every meeting about their progress
on the 10% goal.
http://www.socialvelocity.net/?s=board+budget&submit=Search#sthash.a3Cfrxd3.dpuf
13
501c
³ - T
akin
g N
onpr
ofits
to th
e Th
ird P
ower
mbh
arrin
gton
64@
hotm
ail.c
om
GovernanceThe Board has Ultimate Responsibility for the
Effective and Efficient Governance of the Organization.
• Policies and procedures for board operation. • Bylaws • Oversight (finances, planning, sustainability)• Training (orientation)
14
Fiduciary Responsibilities
501c
³ - T
akin
g N
onpr
ofits
to th
e Th
ird P
ower
mbh
arrin
gton
64@
hotm
ail.c
om
Duty of Care“Board members must act as an ordinarily
prudent person would act under similar circumstances.”
Translation: • Board members must come to meetings
prepared.• The Board speaks with one voice and
respects the wishes of the majority.
16
501c
³ - T
akin
g N
onpr
ofits
to th
e Th
ird P
ower
mbh
arrin
gton
64@
hotm
ail.c
om
Duty of LoyaltyBoard members must put the interests of the
organization above their own.
Translation:• The Board has a conflict of interest policy
and consistently enforces it.
17
501c
³ - T
akin
g N
onpr
ofits
to th
e Th
ird P
ower
mbh
arrin
gton
64@
hotm
ail.c
om
Duty of HonestyBoard members must act in accordance with
the organization’s stated mission and applicable laws.
Translation:• The Board follows the bylaws, ensures
timely and accurate filing to regulatory bodies, reviews the Form 990 before it is filed, etc.
18
501c
³ - T
akin
g N
onpr
ofits
to th
e Th
ird P
ower
mbh
arrin
gton
64@
hotm
ail.c
om
Policy “Musts”
• Conflict of Interest Policy
• Whistleblower Policy
• Document Destruction Policy
• Director’s & Officers Insurance 19
Responsibility of Board Management and
Recruitment
501c
³ - T
akin
g N
onpr
ofits
to th
e Th
ird P
ower
mbh
arrin
gton
64@
hotm
ail.c
om
ExpectationsEnsure a Consistent Message About
Expectations, Roles and Responsibilities• Develop a Recruitment Packet:• Time requirements in detail.• Talent – serve on Board committees.• Treasure – make annual contribution.• Other: Roster, annual report, financials,
fact sheet, history, accomplishments, etc.
21
501c
³ - T
akin
g N
onpr
ofits
to th
e Th
ird P
ower
mbh
arrin
gton
64@
hotm
ail.c
om
Board Orientation• Required for New Board Members• Governance and fiduciary duties.• Budget and financials (Form 990).• Strategic plan.• Board Member job descriptions • Commitment letter.• Mission, vision and core values.• Policies and procedures.• Conflict of interest.• Connections! Networks! 22
501c
³ - T
akin
g N
onpr
ofits
to th
e Th
ird P
ower
mbh
arrin
gton
64@
hotm
ail.c
om
23
Your Organization
Your Contacts
Another Board Member’s Contacts
501c
³ - T
akin
g N
onpr
ofits
to th
e Th
ird P
ower
mbh
arrin
gton
64@
hotm
ail.c
om
Establish Effective Committees
• What is required to achieve the annual plan of work?• Committees do the day to day work and report
to Board via Committee Chair (Board Member)• Action plans shared with full Board.• Assess progress at every meeting.• Sunsets.• How will you use to select committee members? • Executive Committee 24
501c
³ - T
akin
g N
onpr
ofits
to th
e Th
ird P
ower
mbh
arrin
gton
64@
hotm
ail.c
om
Board Tenure • Term Limits. Term Limits. Term Limits.• New blood, ideas, connections, $$$’s• Remove deadwood• Hold board members accountable
• Average tenure is 3 years, renewable once.• Retire to Advisory or Emeritus Status.
25
501c
³ - T
akin
g N
onpr
ofits
to th
e Th
ird P
ower
mbh
arrin
gton
64@
hotm
ail.c
om
Advisory Boards• Allows board members an place to land at the end
of their term• Keeps them engaged and committed• Create a written description of the advisory
board’s responsibilities and the expectations for its members.• Assign a liaison from the official board of directors.• Commit the time to work with the advisory board
so that “advisory board members [don’t] feel ignored or superfluous.”• Hold annual meeting, send updates.
26
501c
³ - T
akin
g N
onpr
ofits
to th
e Th
ird P
ower
mbh
arrin
gton
64@
hotm
ail.c
om
Board Commitment Letter
• Restate job description.• Sign annually.• Make financial/or other commitment.• Escape clause: I agree that if, at any time, I am
unable to fulfill the commitments as a member of the board of directors, I will give notice of my resignation to the president of the board.
27
501c
³ - T
akin
g N
onpr
ofits
to th
e Th
ird P
ower
mbh
arrin
gton
64@
hotm
ail.c
om
Board Bless and Release
• Misrepresenting the organization, by saying negative things about the executive director, staff, or other board members to members of the public or press.• Doing media or public relations work without the
knowledge of anyone else in the organization• Misunderstanding or taking no part in the fundraising
aspects of their role on the board• Being difficult to work with, due to their overall
negativity or lack of willingness to help• Not attending board meetings, creating a knowledge
vacuum where they cannot make decisions based on facts
28
Responsibility for Financial Sustainability
and Advocacy
501c
³ - T
akin
g N
onpr
ofits
to th
e Th
ird P
ower
mbh
arrin
gton
64@
hotm
ail.c
om
2013 Giving USA Report• Charitable giving increased 3.5% • Giving by individuals increased by 3.9 %• Giving by bequests declined by 7.0%• Giving by foundations increased 4.4%• Giving by corporations increased 12.2%• Giving to religion is largest 32%• Giving to education and human services13%• Giving to foundations10%• Giving to health organizations 9%• Giving to arts and cultural organizations 5%
http://store.givingusareports.org
30
501c
³ - T
akin
g N
onpr
ofits
to th
e Th
ird P
ower
mbh
arrin
gton
64@
hotm
ail.c
om
2013 Giving USA Report
• Giving by Individuals - 72%
• Giving by Foundations – 15%
• Giving by Bequests – 7%
• Giving by Corporations – 6%
http://store.givingusareports.org
31
501c
³ - T
akin
g N
onpr
ofits
to th
e Th
ird P
ower
mbh
arrin
gton
64@
hotm
ail.c
om
Effective Fundrai$ingSuccess Rate• Individual
Contributions• Bequests• Grants• Corporate donations• Special Events*
Amount of Staff Time • Special Events*• Corporate
donations• Grants• Bequests• Individual
Contributions32
501c
³ - T
akin
g N
onpr
ofits
to th
e Th
ird P
ower
mbh
arrin
gton
64@
hotm
ail.c
om
Special Event Fundrai$ers
Which of these is the real purpose of a special event?
1) To make as much money as possible!
2) To use the event as a way to market our mission to cultivate
potential new donorsand if we make a profit, all the better! 33
“Friend”raising Board • Board members introduce “friends” to Executive Director• Board member follows meeting with phone call or note
to “Friend”.• With permission, “Friend” is added to organization
communications.• “Friend” is invited for tour of organization to see
programs in action.• Board member follows tour with phone call or note to
“Friend”.• “Friend” is invited to call to action event.
501c³ - Taking Nonprofits to the Third Power [email protected] 34
Talk Story • Identify four or five supporter types/profiles• Have board members call donors and ask:• What is it that we do well?• How did you get engaged in our cause?
• Two things emerge:• Rebuilds the connection because it reminds them
why they care about your organization• Identifies what programs people want
• Use social networks and social media to reach new people!
501c³ - Taking Nonprofits to the Third Power [email protected] 35
501c
³ - T
akin
g N
onpr
ofits
to th
e Th
ird P
ower
m
bhar
ringt
on64
@ho
tmai
l.com
36
Your Organization
Your Contacts
Another Board Member’s Contacts
501c
³ - T
akin
g N
onpr
ofits
to th
e Th
ird P
ower
mbh
arrin
gton
64@
hotm
ail.c
om
Advocate Everyday• Once a week tell someone about your organization• Be the “go to” person for information on CASA• Effective board members serve on one board at
time• Loyalty• Faith Based Organization• School• Habitat
37
501c
³ - T
akin
g N
onpr
ofits
to th
e Th
ird P
ower
mbh
arrin
gton
64@
hotm
ail.c
om
7 Things Board Members Can Do To Raise More Money• #1 - Invest. Make a personal significant financial
investment in the organization. • #2 - Open Doors. • #3 - Get Strategic. • #4 - Expand the Organization’s Revenue Model. • Individual gifts• Special events• Earned revenue• Grants/Foundations
38
501c
³ - T
akin
g N
onpr
ofits
to th
e Th
ird P
ower
mbh
arrin
gton
64@
hotm
ail.c
om
7 Things Board Members Can Do To Raise More Money• #5 - Fund Revenue-Generating Capacity. Make
sure the organization invests in sufficient development capacity.• Director of Development• Donor development software• Consultants etc.
• #6 - Articulate Why Someone Should Give• #7 - Get the Full Board on Board.
39
501c
³ - T
akin
g N
onpr
ofits
to th
e Th
ird P
ower
mbh
arrin
gton
64@
hotm
ail.c
om
Ways Board Members Can Raise Money Without Fundraising
• Help create or evaluate a business plan for an earned income venture. • Advocate for government money.• Provide intelligence on prospects.• Set up a meeting with a prospective customer.• Email, call or visit a donor just to say thanks. • Explain to a prospect why you serve• Host a small gathering at your home• Recruit an in-kind service• Negotiate a lower price from a vendor.
40
501c
³ - T
akin
g N
onpr
ofits
to th
e Th
ird P
ower
mbh
arrin
gton
64@
hotm
ail.c
om
Ways Board Members Can Raise Money Without Fundraising
• Invite 5 Friends to Tour the Program• Talk About Your Nonprofit on Facebook• Show Up to One of Your Nonprofit’s Events• Tell The Story Of Why You Serve • Help Craft a Case for Support• Analyze Your Networks• Go on a Solicitation Call.• Educate a Funder About the Power of Capacity
Capital• Give a Gift
41
501c
³ - T
akin
g N
onpr
ofits
to th
e Th
ird P
ower
mbh
arrin
gton
64@
hotm
ail.c
om
42
Nonprofit Resources
Favorite Nonprofit Websites
• GrantStation – www.grantstation.com
• Chronicle of Philanthropy - www.philanthropy.com
• Nonprofit Quarterly - www.nonprofitquarterly.org
• Blue Avocado – www.blueavocado.org
• BoardSource - www.boardsource.org
• Idealware – www.idealware.org
• TechSoup – www.techsoup.org
• Nonprofit Risk Management Center – www.nonprofitrisk.org
• Independent Sector – www.independentsector.org
• C-Forward – www.cforward.org
• Texas C-Bar – www.texascbar.org501c³ - Taking Nonprofits to the Third Power
501c
³ - T
akin
g N
onpr
ofits
to th
e Th
ird P
ower
mbh
arrin
gton
64@
hotm
ail.c
om
501c³ - Taking Nonprofits to the Third Power
• Programs for Conferences and Resource Centers• Customized Programs for Individual Nonprofits• Strategic Initiative Retreats for Nonprofit Boards• Nonprofit Interventions for Staff, Boards and Volunteers• Certified ToPs (Technology of Participation) Facilitations• Qualified LeadershipPlenty Courses• Constant Contact - Authorized Local Expert• Certified CCAT (Core Capacity Assessment Tool) Evaluations• Association Management Consulting Targeting Membership Growth
Dynamics• Volunteer Program Assessments• Free Nonprofit Career Counseling for Universities as well as
Individuals• Free Nonprofit Referrals and Resources
45
501c
³ - T
akin
g N
onpr
ofits
to th
e Th
ird P
ower
mbh
arrin
gton
64@
hotm
ail.c
om
501c³ - Taking Nonprofits to the Third Power
• Volunteer Management Services• LeadershipPlenty Modules• Nonprofit Management Courses• Strategic Planning• Succession Planning• Change Management• Advocacy• Understanding the Nonprofit Sector• Social Media & Marketing Courses
Our services start with a free conversation to access your situation; together we then determine what elements of support you may need and provide you with an
individualized proposal based on those needs and budget. Through our skilled diagnosis, we ensure that you receive the level of support you need at a price your
agency can afford.
Our mission is to Unleash the Power of the Nonprofit Community by generating Confidence, Competence and Collaborations!
46
501c
³ - T
akin
g N
onpr
ofits
to th
e Th
ird P
ower
mbh
arrin
gton
64@
hotm
ail.c
om
PROSPERITY PARTNERSWho We Are: Highly experienced professionals who share a common goal: helping nonprofits achieve success and sustainability in a challenging economy.
What We Do: Provide a wide range of services for nonprofit managers, board members, and volunteers including conference presentations, training meetings, on-site workshops, webinars, strategic planning and facilitations sessions.
What We Offer: Affordable, personalized consultations and services tailored specifically to help you achieve your organizational goals 47
501c
³ - T
akin
g N
onpr
ofits
to th
e Th
ird P
ower
mbh
arrin
gton
64@
hotm
ail.c
om
PROSPERITY PARTNERSCAPACITY BUILDING• Nonprofit Tune-Up: Evaluate your
organization’s viability and where to focus for improvement
• Building Capacity• Public Relations and Community
Outreach• Building Collaborations and
Community Partnerships• SEO for Nonprofits• Getting Started with Online Video• Getting Started in the Nonprofit
Cloud• Online Fundraising: Beyond the
Donate Button
FUNDING AND RESOURCE DEVELOPMENT• Grantsmanship 101: Developing
Strategies for Successful Proposals
• The Write Stuff: An Intensive Workshop on Proposal Preparation
• The American Idyll: How to Compete for Funding and Win!
• Volunteers: Managing Our Most Valued Resource
• Special Projects and Special Events: Dollars or Sense? 48
Advice and Counsel are Free!
501c³ - Taking Nonprofits to the Third PowerMary Beth Harrington
972-839-9960