Essentials of Management for CBOs*

Don R. Simmons, Ph.D.

Distinguished Lecturer of Humanics at Fresno State
creativepotential@gmail.com
Matthew A. Jendian, Ph.D.
Department Chair & Associate Professor of Sociology
& Director of Humanics at Fresno State
matthewj@csufresno.edu
*Funding provided by The Department of Rehabilitation (DOR) and Community
Resources Development (CRD) which contracted with the Center of Disability
Innovation, a foundation of California State University, Fresno, for this workshop to be
provided at no cost to Community Rehabilitation Programs (CRPs) that provide services
to DOR consumers.
Workshop Outline
Morning
Introductions
The RBC Process
CBOs: The Term and the Basics
Bylaws, Mission & Vision
Statements
Standards for Excellence & CBO
Best Practices
BREAK
CASE STUDY on Board
Governance (Activity)
REFLECTION: What have you
heard SO FAR? What does it
MEAN?
The Role of the Board
Afternoon
LUNCH
Best Practices & Sample Policies
The Fiscal Responsibility of the Board
of Directors (Case Study Activity)
Triple A Boards
The Role of the Board in Fund Raising
Ethics in Fundraising: Case Study
Activity
BREAK
Fund Development for the CBO
Advocacy & Lobbying
The Role of Volunteers in the CBO
Resources for CBOs
Reflection & Evaluation
Introductions
Who are you?
Where are you from?
What organization(s) do you represent?
What is your role in the organization(s)?
What are your expectations for today?
What do you hope to walk away with from
todays workshop (i.e., what is your primary
learning goal?)?
HUMANICS (hyoo-man-iks):
the education of the whole person
in spirit, mind, and body
for leadership in service to humanity
We hired a graduate of
the Humanics Program,
and he was great. He
came in knowing how to
do a budget, knowing how
to write a grant proposal,
knowing how a 501c3
CBO operates. It takes us
at least a year, maybe two
years, to get a person to
that level without the
Humanics certificate.
Kenneth Quenzer, President and Chief
Professional Officer, Boys and Girls Clubs
of Fresno County, California. Quoted in
the Fresno Business Journal
The RBC Process
CBO Basics
6 Reasons to Use the Term Community Benefit Organization
by Hildy Gottlieb*
1. Community Benefit Says What Our Organizations Are and
Why They Exist
2. The Meaning of Community Benefit Organization is
Straightforward and Clear
3. The Term Community Benefit Organization Creates a
Strong, Powerful Self-Image
4. The Term Community Benefit Organization is Inclusive
5. The Term Community Benefit Organization Provides Direct
Marching Orders to the Board: Focus on Providing Benefit!
6. Community Benefit is a Promise
Types of 501c Organizations
501(c)(1) Corporations Organized Under Act of
Congress (including Federal Credit Unions)
501(c)(2) Title Holding Corporation for Exempt
Organization
501(c)(3) Religious, Educational, Charitable,
Scientific, Literary, Testing for Public Safety, to Foster
National or International Amateur Sports
Competition, or Prevention of Cruelty to Children or
Animals Organizations
501(c)(4) Civic Leagues, Social Welfare
Organizations, and Local Associations of Employees
501(c)(5) Labor, Agricultural, and Horticultural
Organizations
501(c)(6) Business Leagues, Chambers of
Commerce, Real Estate Boards, etc.
501(c)(7) Social and Recreational Clubs
501(c)(8) Fraternal Beneficiary Societies and
Associations
501(c)(9) Voluntary Employees Beneficiary
Associations
501(c)(10) Domestic Fraternal Societies and
Associations
501(c)(11) Teachers' Retirement Fund Associations
501(c)(12) Benevolent Life Insurance Associations,
Mutual Ditch or Irrigation Companies, Mutual or
Cooperative Telephone Companies, etc.
501(c)(13) Cemetery Companies
501(c)(14) State-Chartered Credit Unions, Mutual
Reserve Funds
501(c)(15) Mutual Insurance Companies or Associations
501(c)(16) Cooperative Organizations to Finance Crop
Operations
501(c)(17) Supplemental Unemployment Benefit Trusts
501(c)(18) Employee Funded Pension Trust (created
before June 25, 1959)
501(c)(19) Post or Organization of Past or Present
Members of the Armed Forces
501(c)(21) Black lung Benefit Trusts
501(c)(22) Withdrawal Liability Payment Fund
501(c)(23) Veterans Organization (created before 1880)
501(c)(25) Title Holding Corporations or Trusts with
Multiple Parents
501(c)(26) State-Sponsored Organization Providing
Health Coverage for High-Risk Individuals
501(c)(27) State-Sponsored Workers' Compensation
Reinsurance Organization
501(c)(28) National Railroad Retirement Investment Trust
Organizational Chart & Roles
Board of Directors
Policy
Vision
Leadership
Oversight
Fund Development
Board Development
/Organization
CEO
Vision
Leadership
Day-to Day
Operations
Staff Management
Fiscal Health
Community Outreach
Staff/Contractors
Client Services
Classes
Operations
Tech
Sales
Marketing
Accounting
Vision, Leadership
Operations, Services
Compiled by Craig Scharton, Central Valley Business Incubator
Bylaws vs. Policy Manual
BYLAWS
Contained in a single, formal written document that answers the questions
of: who? what? where? when? why? and how? of an organization.
KEEP IN MIND:
There is often more information in the bylaws than is necessary.
Bylaws are the formal governing rules of the organization.
If the bylaws need to be amended, it takes a formal action and vote of the
membership.
If the operating procedures need to be amended, it only takes action by the
executive or governing group of the organization.
POLICY MANUALS
Standard operating procedures/policies and procedures (SOP/ PAP) are
dated documents that can be simply amended as needed by the
organization. The SOP/PAP indicates the day-to-day operations of the
organization or "how do we get things done."
Vision & Mission Statements
To determine your
organizations vision, ask
yourself the following questions
and focus on the future:
What are the underlying
values of the organization?
What do we hope to
accomplish through our
work?
To determine your
organizations mission, consider
the following questions and
focus on the present:
How will we work toward this
vision?
What is our purpose (i.e., why
do we exist)?
Whom do we serve and how?
What are benefits to our
community/society as a result
of our efforts?
Vision & Mission Statements
Biloxi AIDS Service Organization
Vision: Our ultimate goal is a
world without HIV/AIDS.
Mission: To help people both
infected and affected by
HIV/AIDS to secure adequate
nutritional & health support
to enhance their lives.
March of Dimes (CASE STUDY)
Nokia vision: Connecting people ...
Ikea vision: Affordable solutions for better living
Google mission: Google's mission is to
organize the world's information and make it
universally accessible and useful.
Microsoft values: As a company, and as
individuals, we value integrity, honesty,
openness, personal excellence, constructive
self-criticism, continual self-improvement, and
mutual respect. We are committed to our
customers and partners and have a passion
for technology. We take on big challenges, and
pride ourselves on seeing them through. We
hold ourselves accountable to our customers,
shareholders, partners, and employees by
honoring our commitments, providing results,
and striving for the highest quality.
COMMUNITY VALUES OF THE FRESNO REGION:
Guiding Principles for Civic Transformation
Stewardship
Boundary Crossing &
Collaboration
Commitment to Outcomes
Art of the Possible
Thinking
Fact-Based Decision Making
Truth Telling
Power Parity
Commitment to
Resolving Conflict
Asset-Based Approach
Disclose Conflict of
Interest
The Flow of Creating a
Value-Based Culture
Values
Statement
Training and
communication
Systems that
embody
the values
Mechanisms
to discuss
difficult cases
Audit,
enforcement,
and discipline
Governance
of ethics
and values
Renewal
process
Code of
Conduct
Executive
Modeling
Standards for Excellence
(*Adapted from An Ethics and Accountability Code for the Nonprofit Sector developed by The Standards for Excellence Institute
as well as the competencies developed by national CBO executives and university faculty for the Nonprofit Leadership Alliance,
formerly American Humanics, Inc.)
I. ACCOUNTING &
FINANCIAL MANAGEMENT
II. GOVERNANCE (Board
Development & Strategic
Planning)
III. DIVERSITY AWARENESS &
INTEGRATION
IV. FUND DEVELOPMENT &
ACCOUNTABILITY
V. HUMAN RESOURCES &
VOLUNTEER
MANAGEMENT
VI. INFORMATION MANAGEMENT
& TECHNOLOGY
VII. MARKETING & PUBLIC
RELATIONS/COMMUNITY
OUTREACH
VIII. PROGRAM PLANNING,
IMPLEMENTATION, &
EVALUATION
IX. PUBLIC POLICY (Advocacy &
Lobbying)
X. RISK MANAGEMENT,
LEGAL, & ETHICAL ISSUES
Tools for Self Assessment
Best Practices Inventory~
Organizational Capacity Self Review*
Board Leadership Assessment*
CEO/CPO Self Assessment*
* These assessments were adapted from tools developed by the UNITED WAY OF TULARE COUNTY.
We are indebted to Mr. Ernie Hernandez who has willingly shared materials associated with
Rural Connectionsa project which involves providing management support for 501c3
Community Benefit Organizations in Tulare County.
~ This inventory is a compilation of best practices for Community Benefit Organizations
identified by Nonprofit Leadership Alliance (formerly American Humanics, Inc.), Standards for
Excellence Institute, BoardSource & Independent Sector, and United Way of Tulare County
and will help identify strengths and weaknesses of your organization in six strategic areas:
Mission & Programs, Governance, Legal Compliance (including Public Disclosure), Business
Infrastructure (including financial practices, human resources, risk management, information
technology, and facilities), Fundraising & Marketing, and Diversity. We appreciate the work
of Catherine Quinn who took the lead in compiling this tool.
All of these tools are available online at:
http://www.fresnoah.org
2008 | Heather McLeod Grant and Leslie Crutchfield
FORCES FOR GOOD:
The Six Practices of
High-Impact
Nonprofits
2007 Heather McLeod Grant & Leslie R.
Crutchfield
18
What we discovered surprised us.
Being a great CBO is NOT always about
Perfect Management
Brand Name Awareness
A Breakthrough Idea
Textbook Mission Statements
High Ratings on Conventional Metrics
Large Budgets
The Myths of CBO Management
2007 Heather McLeod Grant & Leslie R.
Crutchfield
19
1. Advocate and Serve
2. Make Markets Work
3. Inspire Evangelists
4. Nurture Nonprofit Networks
5. Master the Art of Adaptation
6. Share Leadership
The Six Practices of High-Impact CBOs
2007 Heather McLeod Grant & Leslie R.
Crutchfield
Began with Advocacy
Began with Service
City Year
Exploratorium
National Council of La Raza
YouthBuild USA
Center on Budget and Policy
Priorities
Environmental Defense
The Heritage Foundation
Americas Second Harvest
Habitat for Humanity
Self Help
Share Our Strength
Teach For America
added Programs
added Advocacy
Combined Both from Start
Characteristic of High Impact CBOs:
Advocate & Serve
2007 Heather McLeod Grant & Leslie R.
Crutchfield
21
Advocate to
Government
Work with
Business
Engage
Individuals
Adapt
& Share
Leadership
Collaborate
with other
501c3 CBOs
CBOs Change the System
Best Practices: CBO Governance
The organization has and adheres to written policies (bylaws) establishing board size but,
at a minimum, requires no fewer than five unrelated directors.
A substantial majority of the board members are independent, that is, (1) are not
compensated by the organization as an employee or independent contractor, (2) do not
have their compensation determined by individuals who are compensated by the
organization, (3) do not receive, directly or indirectly, material financial benefits from the
organization, or (4) are not related to anyone described above or reside with any person
so described.
The board has and adheres to clear policies (bylaws) and procedures setting the length of
terms and the number of consecutive terms a board member may serve and board
members periodically rotate off of the board.
The positions of chief staff officer (executive director), board chair, and board treasurer
are held by separate individuals.
The board meets regularly enough to adequately conduct the business of the organization
and fulfill its duties but, at a minimum, has at least four (4) full board meetings a year with
a quorum participating.
Written meeting minutes reflecting the actions of the board, including reports of board
committees when acting in the place of the board, are maintained and distributed to
board and committee members within sixty (60) days of the date of the meeting or
written action.
Best Practices: CBO Governance, cont.
The board hires the executive director. The board has and adheres to a policy to set
the executives compensation and evaluate the directors performance at least
annually.
The board approves the organizations annual budget and monitors actual
performance against the budget.
The board reviews and approves the annual audit and the IRS Form 990.
The board has a systematic and effective process for educating and communicating
with board members to ensure that they are aware of legal and ethical
responsibilities, are knowledgeable about the programs and activities of the
organization, and can carry out their oversight function effectively.
The board evaluates its performance as a group and as individuals no less frequently
than every three years and the board has and adheres to clear procedures for
removing board members who are unable to fulfill their responsibilities.
The board reviews organizational and governing instruments (including bylaws) no
less frequently than every five years.
The board has established expectations for board members and written policies that
address attendance and participation at board meetings, including expectations for
participation in fundraising activities, committee service, and program activities.
BOARD CASE STUDIES
BOARD CASE STUDY A:
James & the Committed Board
Executive Director James was becoming increasingly frustrated with the pace of
change in his organization. He had personally asked every one of the board
members to be a part of the board, and each had happily agreed to join the
board, but, in over 2 years, the board had been able to meet a quorum only twice.
Two board members had never attended a board meeting, and those who did
attend arrived late and left early. However, they all stated that they were
committed to the organization, and that they fully supported the executive
director. In a review of recent giving, James noticed that only one board member
had made a financial gift to the organization in the past year. Since a Thrift Store
was a part of the organizations fund development process, three board members
indicated that they had given items to the Thrift Store.
With ONLY these statements, what issues are apparent?
What governance issues need to be addressed?
What documents need to be emphasized?
What ACTION Steps should James and the board take to provide solutions?
What would YOU do FIRST?
BOARD CASE STUDY B: Father & Son Reunion
Susan was delighted with the progress of the new 501 3 organization, and looked forward to
the task of developing the first board of directors. She had spent months in conversations with
stakeholders and supporters, and finally gathered an initial group of leaders who would
potentially serve on the new board. She had individual conversations with 9 persons, and invited
8 leaders to serve on the board for this new exciting venture. Among the leaders she asked was
Harold, a long-time community activist and known asset in the community. Because each
board position was specifically designated as a representative of a stakeholder group, Harold
represented a large congregation in the community that was a very big influence and financial
contributor. Susan was thrilled that Harold would be on the board, and looked forward to
learning from his 30+ years of experience. Along with several other key stakeholders that Susan
had invited, she also met with Harolds oldest son, Jeff. Jeff had recently returned to the
community after a long absence for graduate school and to begin a new career in law and urban
planning. Jeff had just moved back into the target community, and had been a great source of
planning legal support and information for Susan in the formation of the new organization.
When it came time to elect officers, Harold stated that he was much too busy to be an officer,
and nominated Jeff, his son, to serve as Secretary. Jeff agreed, and was unanimously elected. Jeff
has continued to serve the organization with enthusiasm and has become a major contributor to
the success of the organization. Harold has been a keen supporter of the development of the
organization as well. With ONLY this information, please respond:
Is there anything inappropriate about Harold and Jeff serving on the same board?
How should Susan, the Executive Director, handle the situation?
If YOU were in Susans shoes, what would YOU do?
What GOVERNANCE issues need to be addressed here?
Board Scenarios
1. The by-laws make no mention of board attendance.
2. Meeting Minutes are not taken seriously, if they are taken, they are often incomplete
and sloppy.
3. The same 2 people do ALL the talking at Board meetings and make all of the Motions
and Seconds.
4. The board is made up of all attorneys due to a strong connection with a large law-firm
in the city.
5. The board made the decision to discard Roberts Rules of Order and now take a more
informal approach to meetings.
6. Fund-raising makes board members uncomfortable, so, they have hired a fund-
development consultant who will do the work for them.
7. When a Board member resigns, traditionally, they must find their own replacement.
8. The board is composed of white women, between the ages of 55-65, who are all
retired health-care professionals
9. The Staff are not welcome at Board meetings, except for the Executive Director.
10. The only way to leave the board of directors is to move away or pass away.
11. Board meetings can often last 4 hours.
12. Transcribing board minutes into other languages or Braille takes too much time for
only one board member who needs materials in the other language or Braille.
Workshop Outline
Afternoon
Best Practices & Sample Policies
The Fiscal Responsibility of the Board of Directors
(Case Study Activity)
Triple A Boards
The Role of the Board in Fund Raising
Ethics in Fundraising: Case Study Activity
Fund Development for the CBO
Advocacy & Lobbying
The Role of Volunteers in the CBO
Resources for CBOs
Reflection & Evaluation
Standard: ACCOUNTING & FINANCIAL
MANAGEMENT
Written financial policies (adequate for the organizations
size and complexity) governing: 1. Investments, 2. Internal
control procedures, 3. Purchasing practices, and 4.
Unrestricted current net assets
Appropriate procedures for developing annual budget
Appropriate standards for effective control and monitoring
of fiscal operations, including a confidential means to
report suspected financial impropriety or misuse of
organization resources and a written whistle-blower policy
prohibiting retaliation against persons reporting
improprieties
Accuracy of financial reports audited by a CPA (for CBOs
with annual revenue in excess of $300,000)
Standard: MARKETING & PUBLIC
RELATIONS/COMMUNITY OUTREACH
Have a written marketing plan for the organization that is
periodically reviewed by the staff and board
Provide the public with an annual report (printed or web-based)
that includes information about the organizations mission, program
activities, and finances, and identifies the names of the
organizations board of directors and management staff
Demonstrate a consistency of messaging/branding in the
organizations materials (printed and web-based)
Be accessible and responsive to members of the public who express
interest in the affairs of the organization, demonstrating openness
and transparency through availability of the organizations Annual
Report and Form 990/990EZ)
Standard: RISK MANAGEMENT,
LEGAL, AND ETHICAL ISSUES
Compliance with basic laws and regulations under which CBOs operate,
including, but not limited to: complying with laws and regulations related to
fundraising, licensing, financial accountability, document retention &
destruction, human resources, lobbying and political advocacy, and taxation
Appropriate levels of insurance coverage in light of the nature and extent of the
organizations activities and its financial capacity
[The Public Entity Risk Institute (PERI), a nonprofit research institute focused on support for risk
management, launched Insuranceformynonprofit.org, an innovative website in 2009 that
helps small and medium sized 501c3 community benefit organizations assess their insurance
needs and submit requests for insurance quotes to participating insurers.]
Explicit standards for behavior & a code of conduct for employees & volunteers
Application of the four basic steps to risk management: Acknowledge and
identify risks; 2. Evaluate and prioritize risks; 3. Select risk management tools; 4.
Evaluate results and revise strategies
Standard: PROGRAM PLANNING,
IMPLEMENTATION, & EVALUATION
Recognition of market niche and/or need for leveraging
(i.e., coordination, collaboration, or merger) with other
organization(s), including cross-sector
Clear process for developing and implementing new
programs, including conducting a needs assessment for
the targeted clientele
Procedures for evaluating, both qualitatively and
quantitatively, programs and projects in relation to
mission (includes receiving input and monitoring
satisfaction of program participants)
Appropriate methods to share and disseminate
outputs, outcomes, and impacts
Program Evaluation/Outcomes Assessment
BENEFICIARIES: The people and/or community your activity will serve (e.g., 100 3
rd
and 4
th
grade students in
Fresno Unified who are struggling academically and demonstrate poor attitudes towards school identified
by school administration)
DESIRED ACCOMPLISHMENTS (Processes): The actions that occurred during the implementation of the
program (e.g., we will conduct mentoring training for adult volunteers who will be paired up with a
mentee for the entire school year)
TANGIBLE ATTRIBUTES TO THE PROGRAM (Outputs): The tangible work produced by program activities,
including things like the number of clients served, number of services provided, number of people
participating in programming, number of volunteers engaged, etc. (e.g., 50 adult volunteers will complete
training and each volunteer will mentor two students for the entire school year, meeting with each
student two times per week)
DESIRED RESULTS (Outcomes): The benefits and changes that occur because of the proposed activity (e.g.,
improved academic performance in school)
INDICATORS: The concrete, observable indicators of progress towards your desired results (e.g., increased
participation in school activities and academic performance)
METHOD OF MEASUREMENT AND INSTRUMENTS USED: The methods and instruments used to determine if
desired results occur (e.g., Process: Volunteer mentors will document sessions held with assigned
students on a standardized form; Outcome: Project director will use an interview protocol to interview
appropriate school administrators and/or teachers regarding student academic achievement and
participation in school activities)
STANDARDS OF SUCCESS (Process and Outcome goals): The minimum level of success hoped to achieve
(e.g., Process: 90% of adult volunteers will complete training; Outcome: 70% of the students will improve
their academic performance and increase their participation in school activities)
RESPONSIBLE PERSONS & TIMELINE: Who will collect the data, how often data will be collected, who will be
responsible for compiling data and reporting the findings?
Policies: Required & Other
Conflict of Interest
IRS Tax Form 990 Review
Document Destruction & Retention
Whistle Blower
Financial Investment
Gift Acceptance
Standard: FUND DEVELOPMENT AND
ACCOUNTABILITY
Variety of fundraising activities utilized to support
organizations mission, including major gifts, planned
giving, in-kind support, annual funds, foundation &
government grants & special events
Appropriate fundraising cost ratios (3:1 recommended)
Solicitation & Acceptance of Gifts (promotional materials
are accurate, truthful, and correctly identify the
organization, its mission, and intended use of solicited
funds, and policies are in place to govern the acceptance &
dispensing of charitable gifts)
Abide by the AFPs Donor Bill of Rights to respect the
privacy of donors and safeguard the confidentiality of
information
The Fiscal Responsibility of the
Board of Directors
Activity
Scenarios: Board Fiscal Responsibilities
1. There is not enough time at board meetings to really understand the
organizations budget.
2. Only accountants and finance people can really understand a Profit and Loss
statement, so, why bother distributing them?
3. As long as the treasurer knows about the financial health of the organization,
we are OK.
4. Our board spends a considerable amount of time doing financial forecasting.
We have a pretty good idea about where we will be in 2013.
5. As a board member, salaries of line employees are none of my business.
6. IRS Form 990 is a legal requirement for a 501 3 organization.
7. My organization has not filed a 990 Form in 3 years. We are not concerned.
8. I dont need to understand the organizations finances-I trust the Executive
Director to make good decisions.
9. My personal reputation is not connected to the fiscal health of my
organization.
10. Since my organization has Directors and Officers Insurance (D&O), I cannot
be sued for fiscal neglect.
Triple A Boards &
The Culture of Philanthropy
A board with an AAA Rating is one where every board member is motivated
to be an Ambassador, Advocate and/or Askerthese boards thrive when
there is a culture of philanthropy throughout the organization.
THE CULTURE OF PHILANTHROPY
Involves the full development teamboard, other volunteers, staff
and highly engaged donors
Commitment to mission, vision and values
An understanding that each interaction with anyone in the community is
part of the development process
Everyone thinks development
Staff, board and other volunteers understand the importance and
purpose of the organization
Visitors, employees, donors and volunteers feel the culture when they
interact with our organization
Triple A Boards
Ambassador
Has made a financial
commitment to the
organization
A role everyone
should play
Has key roles in
cultivation of
prospective donors
and stewardship of
continuing donor-
investors
Needs to be well
oriented and
coached in the
message
Master of the
elevator speech
(and the elevator
question)
Catalyst for donor-
investor renewal
Advocate
Has made a financial
commitment to the
organization
On the golf course or in the
car poolstrategic role in
sharing information about
the organization
May also advocate on a
more formal basis with city
officials, foundation
officers, another
organization with which the
organization is partnering
Is informed about the case
for support and
understands the strategic
plan and vision
Well coached on desired
results of personal advocacy
and handling objections
Asker
Has made a financial
commitment to the
organization
Enjoys sharing his/her
enthusiasm for the
organization and asking for
investment
Well informed, well trained
Matched with prospective
donors (or current donor-
investors) for maximum
possibility of success
Teamed with another board
Asker or staff leader
Staff organizes the ask so the
Askers focus can be on the
single purpose of getting (or
renewing) the gift
Benefits from the work of the
Ambassadors & Advocates
The Role of the Board in
Fundraising
http://fresnophil.org/BOD.html
Board of Directors
Officers | Directors | Directors Emeriti | Past Presidents | Presidents Emeriti
The Fresno Philharmonic Association is a corporation formed under the California
Non-Profit Public Benefit Corporation Law for the purpose of sponsoring and
promoting orchestral music in the central San Joaquin Valley region. The
Association is the parent organization of the Fresno Philharmonic.
Supporting membership of the Association is composed of all individuals and
businesses who contribute to the Association. The Board of Directors of the
Association is elected by the membership at the Annual Meeting held in June.
A current voting member is a person who is both a current season subscriber and
a donor at or above the $250 level.
Contributions to the Fresno Philharmonic Association are tax-deductible for both
Federal and State purposes.
CASE STUDY:
Ethics in Fund Development
Activity
*
*Ethical Dilemmas in
Fundraising excerpted
from You Made the Call:
Readers Responses to
Five Ethical Dilemmas in
Development, by Ellen
Ryan (January 1996
issue of Currents,
published by The
Council for Advancement
and Support of
Educationa
professional association
serving educational
institutions and
advancement
professionals).
See www.case.org.
Ethical Dilemmas in Fundraising excerpted from You Made the Call: Readers
Responses to Five Ethical Dilemmas in Development, by Ellen Ryan (January
1996 issue of Currents, published by The Council for Advancement and
Support of Educationa professional association serving educational
institutions and advancement professionals). See www.case.org.
Ethical Dilemmas in
Fundraising excerpted
from You Made the Call:
Readers Responses to
Five Ethical Dilemmas in
Development, by Ellen
Ryan (January 1996
issue of Currents,
published by The
Council for Advancement
and Support of
Educationa
professional association
serving educational
institutions and
advancement
professionals).
See www.case.org.
Donor Pyramid
http://marshallhoward.com/resources.php
Howards library provides easy-to-access,
clutter-free, relationship building resources for
you and your organization.
Case Studies
Free DVD
Relationship Tips
Public Policy 501c3 Pre-test
Based on your understanding, under current IRS regulations,
can your organization:
1. Support or oppose federal legislation?
2. Take a policy position on a general issue without referring to
a specific bill?
3. Support or oppose federal regulations?
4. Lobby if part of your budget comes from federal funds?
5. Use government funds to lobby Congress?
6. Endorse a candidate for elected office?
7. Talk to elected public officials about public policy matters?
8. Sponsor a forum or a candidate debate for elected office?
Percentage with Correct Answer
Based on your understanding,
can your organization:
All
Respondents
H Electors
(Those under the
expenditure test w/
lobbying expenditures)
Conventional 501c3s
(Non-electors w/out
any lobbying
expenditures)
Support or oppose federal legislation
under current IRS regulations?
72.5% 92% 54%
Take a policy position without reference
to a specific bill under current
regulations?
81.8% 96% 61%
Support or oppose federal regulations?
79.3% 95% 62%
Lobby if part of your budget comes from
federal funds?
50.4% 74% 32%
Use government funds to lobby
Congress?
93.6% 92% 93%
Endorse a candidate for elected office?
87.4% 90% 84%
Talk to elected public officials about
public policy matters?
91.1% 98% 80%
Sponsor a forum or a candidate debate
for elected office?
56.5% 70% 45%
What Is Advocacy?
Identifying, embracing, and promoting a cause
Attempting to shape public opinion
Promoting the interests of your community
The Lobbying and Advocacy Handbook
What Is Lobbying?
Lobbying activities consist of attempts to
influence legislation by propaganda or otherwise.
Internal Revenue Service
Political Campaign Activities consist of activities
associated with an election.
(from Bob Smucker, The Nonprofit Lobbying Guide)
What your 501c3 organization
can do?
Direct Lobbying: You can tell your legislator or
government official your organizations position on a
piece of legislation. You can also urge your members to
express your organizations position.
Indirect Lobbying (aka Grassroots Lobbying): You can
tell the general public your positions on legislation and
ask them to communicate this position to their
legislators or government officials.
Charity Lobbying: You Can Do It (Center for Lobbying in the Public Interest)
What your 501c3 organization
CANNOT do?
501c3 organizations CANNOT:
Endorse political candidates
Mobilize supporters to elect or defeat candidates
Align themselves with political parties
Contribute to candidates or political parties
NONE OF THESE ARE LOBBYING ACTIVITES. These are
examples of PARTISAN POLITICAL ACTIVITIES and are
OFF LIMITS!
Charity Lobbying: You Can Do It (Center for Lobbying in the Public Interest)
1976 IRS Lobbying Law
Established clear guidelines for reporting lobbying
expenses for 501(c)3 organizations
File IRS Form 5768 (H Form) to elect coverage
under the Lobbying Law
If budget is less than $500,000, 20% can be spent
on direct lobbying and 5% on indirect lobbying
Track and report lobbying expenses separately
The Role of Volunteers
Why Volunteers Should Matter
The Stats
26.3% of Americans volunteered in 2010.
62.8 million people volunteered for or through
an organization at least once in 2010.
Women at 29.3%, Men at 23.2%.
35-44 year olds most likely (32.2%).
Early 20s least likely (18.4%).
White, married, with children, college graduate.
Bureau of Labor Statistics U.S. Department of Labor January 2011
Total Annual Hours Spent Volunteering
Median 52 hours
96 hours Age 65 and over
40 hours Age 16-34
The Dollar Value of Volunteers Time
$21.36 per hour (up 2.3%)
(Independent Sector)
Volunteer Wisdom
The word volunteer is a
pay category, not a title!
Your Language should reflect your Culture!
Volunteer
Recruit
Supervise
Performance Review
Job
Retention
Tasks
Unpaid Staff/Partner
Invite/Cultivate
Support
Performance Measurement
Role/Position
Sustainability
Service
The Reward
The creation of Ambassadors
The development of Allies
The deployment of Advocates
The release of Evangelists
Ripples of Impact
Evangelists
Meaningful
Experiences
Values
What Every Volunteer Needs
Boundaries
Borders
Benefits
Volunteer Wisdom
Dont invite volunteers
unless EVERYONE is
clear about what theyll be
doing first.
Elements of a Volunteer Position
Description
Compelling Title
Buties
SupeivisoiLeauei
Location anu Scheuule
Commitment Baily Weekly Bow long
Skills Neeueu
Tiaining Pioviueu
Benefits
Six essential elements
T.A.F.E.R.R.
Training
Affirmation
Feedback
Evaluation
Recognition
Reflection
5 Reasons Volunteers Quit
1. Lack of acknowledgement
2. Inadequate training and
preparation
3. Lack of trust
4. Disregard by paid staff
5. Competing loyalties
Volunteer
Time Donor Donor
10. Your Volunteers are already in your world.
9. Your Volunteers know your Organization.
8. Your Volunteers understand your Organization.
7. Your Volunteers are being selective with their money in
the same way they are being selective with their time.
6. Its never too late!
5. Its not too much work GO VIRAL! (Your Volunteers
know more people than you do!)
4. Volunteers can tell your story in a way staff cant!
3. You must Position yourself to engage Volunteers.
Intentional. Planned.
2. Your Volunteers are more likely to give to your
organization because they volunteer there.
67% of Americans who volunteered in the past year say they
generally make their financial contributions to the same
organizations where they volunteer.
Fidelity Charitable Gift Fund
Have you asked your volunteers to donate?
Have you made it easy for them to do so?
1. Volunteers donate, on average, 10 times
more than non-Volunteers.
Fidelity Charitable Gift Fund
Keep in Mind
Volunteers are free, Volunteer Programs are not.
Managing Volunteer Programs IS a profession.
Volunteer Administration requires high ethical
standards.
Stop
Continue
Start
Resources
California State University, Fresno Preparing Leaders for Service to Humanity
Creative Potential Consulting
www.creativepotentialconsulting.org
www.fresnoah.org
Online Resources
http://www2.guidestar.org
http://www.afpnet.org/
http://animoto.com/cause
Animoto automatically turns your images, video
clips and music into stunning videos.
CBOs can apply for a free Animoto Pro account.
Online database to track
donors, volunteers, and clients
within your organization (free
licenses for CBOs available).
THANK
YOU!