Title: Nonprofit Capacity Conference
1Nonprofit Capacity Conference
- Embracing Best Practices with the Standards for
Excellence Institute
2Americas Nonprofit Sector
We are churches, hospitals and schools. We are
environmental activists, developers and
preservationists, and social service agencies.
Wherever there is a need for services, Americas
nonprofit sector is there to meet that need. In
1983 there were 300,000 nonprofit
organizations In 1993 there were 750,000
nonprofit organizations In 2013 there were over
1.4 million registered nonprofit organizations in
the United States.
3Nonprofits Depend upon the Public and the Public
Trust
- Tax exemption
- Tax deductible dollars through contributions
- Recipients of foundation grants
- Ability to recruit volunteers, including board
members - Public trust is an important asset
4Competition Among Nonprofits
- Funding from all sources
- Volunteers
- Staff
- Board members
5Public Becoming More Sophisticated
Many donors and the public are concerned about
more than simply program administration and
fundraising ratios
6Greater Scrutiny
- Vicious cycle of lapses and increased
regulatory/legal scrutiny - Increased consumer expectations and sophistication
7Others Looking at Best Practices
- What watchdog organizations are you aware of?
- Are you familiar with other organizations and
websites that monitor and expose nonprofits and
their practices?
8Websites educating about nonprofits and their
practices
- Volunteermatch.org
- Local online database of nonprofits like Giving
Matters, Nonprofit Search - Networkforgood.org
- BoardnetUSA.org
- GuideStar.org
- Greatnonprofits.org
- Idealist.org
- Catalogue for Philanthropy-dc.org
- Local volunteer recruitment centers
9IRS Emphasis on Best Practices
The Internal Revenue Service believes that a
well-governed charity is more likely to obey the
tax laws, safeguard charitable assets, and serve
charitable interests than one with poor or lax
governance. Irs.gov/pub/irs-tege/governance_prac
tices.pdf
10IRS 990 Calls on Each Nonprofit to Embrace Best
Practices
- Policies on
- Conflicts of interest
- Document Retention and Disclosure
- Whistleblower
- Reimbursement
- Joint Venture
- Compensation
- Gift acceptance
- Solicitation Policy
- Auditor Independence
11This is why
We need to pay attention to all of the
organizational issues that make nonprofit
organizations tick. Once you are aware of these
organizational best practices, your organization
can focus increased energy on achieving your
mission and running your programs. Stay
competitive and stay in business.
12Our Mission
- Promote the highest standards of ethics and
accountability in nonprofit governance,
management and operations, and to facilitate
adherence to those standards by all nonprofit
organizations.
13The Standards For Excellence Program
- The Standards for Excellence code
- Resources and Training
- Voluntary Accreditation
- Educating the Public
14Program Delivery
- Membership
- Licensed Consultants
- Replication Partners
15Membership Services / Benefits
- Free Standards for Excellence educational
resource packages - Free one-on-one technical assistance
- Member pricing on accreditation and recognition
- Member pricing on educational programs
16(No Transcript)
17Standards for Excellence Replication Partners
2014
18The Standards for Excellence Code
- The code provides a framework and step-by-step
guidelines to achieve a well-managed and
responsibly governed organization.
19Self Assessment
20Mission and Program
- Defined Mission Statement
- Evaluation
- Program Service Standards
21Governing Body
- Roles and Responsibilities
- Board Composition
- Board Conduct
22Conflict of Interest
- Disclose Everything
- Define Interested Parties
- How Decisions Are Made?
- Conflict of Interest Policy
- Conflict of Interest Statement
- Disclosure Forms
23Case Study
24What do YOU think?
- You are on the board of a low income home
building organization. In your full time job, you
own a hardware store and often donate supplies to
support the organization on whose board you
serve. Other hardware stores in your area also
make generous contributions to the cause.
Because of your position on the board, you
recently learned that the organization will
building its 100th house and to commemorate this
occasion, the organizations celebrity
spokesperson, a hugely popular and well known
sports star, is inviting several other sports and
movie stars to attend the dedication of the home.
It is the custom of the organization to place a
sign recognizing the firms and individuals who
donated services as a backdrop to the stage being
used for - the home dedication.
25Human Resources
- Personnel Policies
- Volunteer Policies
- Employee Evaluation
- Employee Orientation
26Financial and Legal
- Budgets
- Audits
- Financial Reports
- Financial Impropriety
- Written Financial Policies
- Legal Compliance
27Case Study
28What would you do?
You are the associate director at a medium sized
nonprofit literacy organization. While visiting
one of the branch offices, you learn that the
branch is in dire need of hand cleanser. Rather
than adhering to the normal channels for
purchasing supplies, you elect to stop by a store
near the office, purchase a large quantity of
cleanser and drop it off at the branch.
29Openness
- Annual Report
- Mission
- Program Report
- Basic financial data
- List of board members
- List of key staff
30Fundraising
- Fundraising Activities
- Donor Relations/Privacy
- Acceptance of Gifts
- Fundraising Personnel
31Public Affairs and Public Policy
- Public Policy Advocacy
- Public Education
- Promoting Public Participation
32Case Study
33How would you handle this?
- The founder and president of your board has just
announced that she is running for State Senate.
She is well known because of her long-standing
association with the organization and the
contacts she has made on its behalf over the
years. How would you respond if you found that - Her campaign chair wants you to place one of her
campaign signs in the window of the
organizations office or in front of its office
building? - That she plans to give the organizations board
list to her campaign manager so that the board
members may be asked to be block leaders for
her campaign? - Her campaign chair has asked to borrow a copy of
the organizations major donor list that is
periodically distributed to board members in
order to solicit contributions for the campaign? - The president of the board is planning to
announce her candidacy on the front steps of the
organizations headquarters? - She plans to remain on the board during your
campaign?
34Standards for Excellence An Organizational Tool
- A model for nonprofit organizations to implement
accountability in their management governance
practices - A framework with a clear statement of the
organizations commitment to best practices - A self-regulatory tool to ensure public
confidence and public support - A demonstration of the organization's commitment
to public service
35Sneak Peak
Embracing Best Practices in Nonprofit Management
and Governance
Second edition, 2014
36Standards for ExcellenceVersion 2.0
- 6 Guiding Principles, 27 areas of focus and 67
Benchmarks - Preamble
- Mission, Strategy and Evaluation
- Leadership Board, Staff and Volunteers
- Legal Compliance and Ethics
- Finance and Operations
- Resource Development
- Public Awareness, Engagement, and Advocacy
37New Benchmarks in Version 2.0
- Strategic Partnerships
- The Boards Fiduciary Role
- Cultural Competency
- Strategic Board Meeting Agendas
- Board and Executive Partnership
- Succession Planning
- Resource Development Plan
- Sustainability and Sustainability Planning
- Code of ethics
- New Policies Information technology, crisis and
disaster, communications
38Providing the Help You Need
- Educational Resource Packets
- Educational Programs
- Webinars
- In Person
- One-on-one technical assistance
- Licensed Consultants
39Accreditation and Recognition
- An important outcome of this process has been
better trained staff and volunteers that have a
stronger understanding of our mission, philosophy
and operating systems. We believe we are a
stronger organization, as a result.
40Accreditation or Recognition?Start with
Assessment!
- Full Accreditation Process
- Shorter timeline
- Take a systems approach
- Less expensive than applying at each tier
- Better if you have a chunk of time/resources to
focus on the application process
- Tiered Recognition Process
- Go at your own pace feedback and assistance from
staff at each level - Each level builds on the previous tier across
each topic area - More expensive over time if you choose to advance
- Better if you have smaller amounts of
time/resources to devote to the process over a
longer period of time.
Full Application Instructions Available Online at
www.standardsforexcellenceinstitute.org
41Other Resources for Nonprofit Leaders
- Management support organizations
- University or college based nonprofit academic
centers - Private consultant firms
- Nonprofit or for profit
- Corporation for National and Community Service
- State Offices of Service and Volunteerism
42Other Resources for Nonprofit Leaders
- International Center for Not for Profit Law
(ICNPL) - Independent Sector
- Alliance for Nonprofit Management
- National umbrella associations focused on your
industry or issue area - National Capacity Builders focused on
particular issues, like - Nonprofit Center for Risk Management
- Charity Lobbying in the Public Interest
- Alliance for Justice
- Standards for Excellence Institute
43What can I do tomorrow?
- Share the assessment exercise with your
colleagues - Decide what changes can be made first and
consider tackling the easy items first! - Think about what changes can be added to your
organizations work plan - Get your board and staff involved in embracing
best practices
44Questions and Answers
45Contact Information
- Amy Coates Madsen
- Director, Standards for Excellence
- 1500 Union Avenue Suite 2500
- Baltimore, MD 21211
- acmadsen_at_
- standardsforexcellenceinstitute.org