Charting our Course

Board Retreat Report January 29, 2011

Prepared by Mary Beth Lepkowsky, M.Ed. Pathways Facilitation Services An Affiliate Consultant for the Nonprofit Support Center of Santa Barbara marybeth@pathwaysfacilitation.com 805.403.5013

Domestic Violence Solutions

Board Retreat: January 29, 2011

Overview
RETREAT OBJECTIVES To build partnership and a sense of team among board members To provide an overview of nonprofit finance fundamentals To discuss recent financial challenges faced by DVS To review DVS current financial status To discuss DVS Going Forward and how board members can support development activities

AGENDA 9:00am 9:15am

Coffee and light refreshments Welcome Claudette Roehrig, Co-President Overview of the Day and Introductions Mary Beth Lepkowsky State of Domestic Violence Solutions Richard Kravetz, Executive Director Past Present Break State of Domestic Violence Solutions Present (cont.) Next Steps

12:30pm Lunch (provided) 1:15pm Empathy Interactive Marsha Marcoe & Richard Kravetz Break Supporting the DVS Development Plan Marsha Marcoe, Associate Executive Director of Development Wrap up and Next Steps Mary Beth Lepkowsky Adjourn

9:20am

1:45pm 2:00pm

10:15am

3:00pm

11:00am 11:15am

3:30pm

Domestic Violence Solutions Board Retreat: January 29, 2011

Domestic Violence Solutions

Board Retreat: January 29, 2011

Domestic Violence Solutions Board Retreat: January 29, 2011

Domestic Violence Solutions

Board Retreat: January 29, 2011

Financial Practices Following a presentation from Richard Kravetz, Executive Director, Board members reached conceptual
agreement to observe the following four financial practices as organizational priorities. Financial Practice What are we pleased about? What are we concerned about?
Owning our numbers: good data, realistic budgeting, contingency planning Expenses operational Projected balanced budget Have outcome measured grants We are NOW owning our numbers Richards grasp of the issues! Marshas fundraising skills! Creating surplus Leadership Communication Events Board / diverse strong resources Mission Newsletter Site visits Marshas cultivation of donors Successes breed investments Dependence on government subsidies Gov. Brown share the pain across the board The Thrift Store Stalled economy leads to family dysfunction Diverting from our mission Government funding & public sector - Lack of empathy

What questions do we have?

What is our shortfall this year? Do we have a capital campaign for our infrastructurefor our endowment? What audits are in place? What metrics do we use to measure our performance? How can we use interns and volunteers? Can we see more fundraising ideas? How do we follow up and build in accountability? How and when can we develop our Speakers Bureau? (Stan Roden) (faith-based) How do we do a quick synopsis of our story (30 second pitch) How do we strengthen the connection between heart-based interest and financial need? Do we have enough or too many resources? How can we outreach to communities & businesses for maintenance/improvement $$$? What checks and balances are in place for our Controller? What is our investment policy? What is it that we need to know as board members to be competent in providing input re: capitalization? How are we capturing endowment funds? 4

Investing in our infrastructure: businessminded leadership; fundraising; financial systems and staff Communicating our financial story and needs to our funders

Efficient use of funds Improvement of carrying out our mission Explanation of fund use, services (variety and choices) Thrift Store Utilization of administrative resources, staffing, status, expectations, accountability?

Capitalization: prioritizing savings; making investments into our facilities; and managing operational risk (like future State budget cuts or delays!)

Revised handbook Not losing $ in our investments Richards leadership and finding Marsha

Domestic Violence Solutions Board Retreat: January 29, 2011

Domestic Violence Solutions

Board Retreat: January 29, 2011

From the Nonprofit Finance Fund

1. Pursue using a portion of your existing reserves to make investments that have a viable chance to improve your net revenue (most likely contributed revenue). 2. Build on the financial model you have developed and continue to examine the financial contribution of each major DVS program. 3. Obtain a Systems Replacement Plan. A qualified engineer would survey the envelope and systems of your buildings to prepare a 10 to 20-year schedule of prioritized replacements and upgrades with projected costs. 4. Continue examining its subsidy (i.e., fundraising) business for untapped opportunities that will increase contributed income. New fundraising staff and strategies may take 2-3 years before generating a net contribution. Will likely require investments in outreach. Both of these options require a multi-year commitment and upfront capital. 5. Consider using a portion of reserves as a one-time investment in the organization in order to build DVS' capacity to generate net contributed (and possibly earned) revenue. So long as facility-related needs can be managed, DVS board-designated reserve provides a potential source of accessible capital that could fund the pursuit of one or more revenue strategies requiring upfront financial investments. Think through what your options are for improving your development capacity - both in terms of upfront cost and likely annual net revenue and evaluate the merits of each. Three options that you might look at through this lens: a. investing in software that tracks donors with greater specificity and allows for better analysis b. hiring consultants c. bringing on another full-time staff member (perhaps on a contract, time-limited, basis). 6. Conduct a profitability analysis of each of DVS programs to examine the true revenue and costs associated with each program. Doing this can inform decisions about where to focus resources - which is especially critical given the tumultuous condition of state and government funding. 7. Continue the internal analysis of whether grant dollars can be re-allocated. 8. Consider which programs may be running at a "deficit." Understand the amount - and source - of the offsetting subsidy (gap) revenue. For DVS, enhancing revenue sources from fundraising efforts is paramount given the challenges in relying on government support. 9. CalEMA emergency shelter services funding may be reinstated at some level in 2011($156,000 or higher). Consider developing program budget scenarios with and without this funding for FY2011. 10. Analyze DVS ability to re-allocate grant dollars to other fully-funded shelters, should the Lompoc shelter be closed 11. Explore other areas for cost-cutting methods in both program and capacity.
Domestic Violence Solutions Board Retreat: January 29, 2011 5

Domestic Violence Solutions

Board Retreat: January 29, 2011

DVS: Strategies for Investing in Development

Marketing Proposals Establish Brand County- Wide; Routine Media Feeds/ PSAs ; Adv. Budget aimed at client base, donors and volunteer Part Time Asst. for Development Director Corporate Affiliates; Event Support North County Development Events (Santa Maria, Santa Ynez) Integration into Budget, 2011, 2012

Agreements and Actions

The Board reached agreement to support the four financial practices as organizational priorities The Board voiced support for the ED recommendations to invest in marketing and in the part-time development position The Board discussed a course of action for the Second Time Around Thrift Store. The following input was considered The environment of the Thrift Store is inadequate It is not a viable business We will want to minimize potential damage to PR of DVS It is not a core business; does not serve our mission The store is currently losing money Would prefer to use the money needed for store to invest in development position (greater ROI) The local community is not supporting the store as patrons There has been inconsistent communications regarding the status of the store High risk low yield Not in a good location If we keep it open we could use volunteers to clean it up IF there is an internal board member/staff member to provide oversight we could continue

After further discussion there was unanimous support for the recommendation to close the Thrift Store Action item By Who By When Confidential: Board members will work with Richard to communicate to Mgr/Staff and then Richard, Pam, Beth, Cozy, Joel By May 30 the Lompoc Community re: closure
Domestic Violence Solutions Board Retreat: January 29, 2011 6

Domestic Violence Solutions

Board Retreat: January 29, 2011

Facilitator Recommendations
1. Continued Board Education: Audit, Financials, Elements of a capitalization effort 2. Accountability: Some questions were raised about how to ensure follow up and build in accountability measures. Discuss what measures will be used to determine progress in building infrastructure and raising funds. Ultimately how will this benefit the women you support. Will it do so in tangible ways that can become evidence of your progress? 3. Marketing Piece: There was a fair amount of interest in developing an elevator pitch for Board members to share the story of DVS with friends and acquaintances. Designate someone (board or staff) to draft talking points and a 30 second story about the impact of DVS work. This can be tailored for individual board members, but the core message would remain the same . 4. Investment Policy: A board member raised the question on whether the agency should develop an investment policy. It is recommended that this be discussed to identify what elements would be included in such a policy and whether or not the board wants to take action. 5. Capitalization Planning: Secure a consultant to assist in the development of a capitalization assessment and plan. 6. Strategic Planning: Once the organization has made good progress on developing an infrastructure to build a financial surplus that will support unfunded overhead and program expenses, the board may want to consider engaging in a strategic planning effort to establish strategic program priorities based on input from various stakeholders to guide continuous improvement efforts. 7. MediCal Reimbursement: This topic was listed on the parking lot as an item for possible future discussion. Is it cost effective to bill for MediCal dollars? What is needed (infrastructure) to make this possible? What is the potential cost/benefit? This topic would require further research and analysis. 8. Outreach to Latino Community: Lupe volunteered to meet with Richard and Marsha to discuss the possibility of an event targeted to the Latino Community. Before talking about a specific event, I recommend that the discussion clarify the desired outcomes of conducting outreach to the Latino Community (awareness to individuals or community, increased access to program, raising money, etc). Perhaps a good place to start is to use the following four plus on questions (four questions to gather information plus one question to develop an action plan) to frame the initial exploratory conversation. These questions should be answered from different perspectives to ensure that both board and staff perspectives are heard and understood before determining an action plan.
Domestic Violence Solutions Board Retreat: January 29, 2011 7

Domestic Violence Solutions

Board Retreat: January 29, 2011 Related to outreach to the Latino Community for the purpose of (as determined above) 1. What have we tried? 2. What have we learned? 3. What are we pleased about? 4. What are we concerned about? Plus: Based on what weve just discussed and learned, what do we try next? Once you have a possible next step what will success look like? Who will do what by when? And how do individuals need/want to be supported in order to be successful.and are those requests realistic, aligned with existing priorities and within the sphere of resource and control of the agency? Congratulations on a meaningful and productive retreat. Richard and Marsha, the thought and preparation you invested in your materials and presentations were evident. I also appreciate how well all of you (Richard, Marsha, Claudette) collaborated to create a positive environment and a relevant agenda for the retreat. Richard I will follow up with you next week regarding a brief Powerpoint tutorial. I will also contact you in March and September to check in on progress and any developing questions or concerns related to the outcomes of this retreat. Thank you for inviting me to be a part of the wonderful work of your Board of Directors. Best wishes to you as you continue to develop your organizational infrastructure and please do think of me or the Nonprofit Support Center for your future training, facilitation and consulting needs. Kind regards, Mary Beth Lepkowsky, M.Ed.
Pathways Facilitation Services Marybeth@pathwaysfacilitation.com 805.403.5013

An Affiliate Consultant for the Nonprofit Support Center of Santa Barbara

www.supportcenter.org

Domestic Violence Solutions Board Retreat: January 29, 2011