ENVIRONMENT OF NONPROFITS
CHRISTINE GIBBS SPRINGER
FALL 2005
BEH 217
702.221.2737 Cell 702.497.1216
E-Mail =cggs@aol.com
3/12/2016
3/12/2016
17 MILLIONAIRE
QUESTIONS ON NONPROFITS

1. CHARITABLE GIVING IN THE UNITED
STATES DURING 2003 AMOUNTED TO:
–
–
–
–

A. $241 BILLION
B. $203 BILLION
C. $80 BILLION
D. $150 BILLION
2. HOW IRS TAX EXEMPT DESIGNATIONS
ARE THERE?
–
–
–
–
A. 35
B. 20
C. 16
D. 10
3/12/2016
MORE MILLIONAIRE
QUESTIONS

3. IN THE LAST TWO DECADES, THE
NON-PROFIT SECTOR IN THE U.S. HAS
GROWN BY WHAT PERCENT?
–
–
–
–

45%
60%
85%
30%
4. HOW MANY NON-PROFITS WERE
THERE IN THE U.S. IN 2000?
–
–
–
–

A.
B.
C.
D.
A.
B.
C
D.
2 MILLION+
15 MILLION+
750,000+
1 MILLION+
5. WHAT AREA OF THE COUNTRY
LEADS IN PHILANTHROPIC GIVING?
–
–
–
–
A.
B.
C.
D.
MIDWEST
NORTHEAST
SOUTHEAST
WEST
3/12/2016
MORE MILLIONAIRE
QUESTIONS

6.
ORDER IN TIME THE STUDY OF:
–
–
–
–

BUSINESS MANAGEMENT
PHILANTHROPY
PHILOSOPHY
NON-PROFIT MANAGEMENT
7. THE PRINCIPAL DIFFERENCE
BETWEEN ON-PROFITS AND FORPROFITS IS:
–
–
–
–

A.
B.
C.
D.
A.
B.
C.
D.
SIZE OF THE BOARD
SIZE OF THE BUDGET
GOODS AND SERVICES PRODUCED
HOW SUCCESS IS MEASURED
8. THE MOST SERIOUS CHALLENGE TO
NON-PROFITS TODAY IS:
–
–
–
–
A.
B.
C.
D.
COMPETITION FROM FOR-PROFITS
RAISING MONEY
FINDING GOOD PEOPLE
CUTBACKS IN GOV’T FUNDING
3/12/2016
MORE MILLIONAIRE
QUESTIONS

9. DURING 2002, WHAT TYPE OF ORG.
RECEIVED THE GREATEST NO. OF
CONTRIBUTIONS?
–
–
–
–
–

A.
B.
C.
D.
E.
ARTS AND CULTURE
HEALTH
RELIGION
ENVIRONMENT
EDUCATION
10. WHICH OF THE FOLLOWING
PRINCIPALLY FUND NON-PROFITS IN THE
U.S.?
–
–
–
–
–
A.
B.
C.
D.
E.
INDIVIDUALS
FOUNDATIONS
BEQUESTS
CORPORATIONS
GOVERNMENT
3/12/2016
MORE QUESTIONS…

11. WHAT IS THE AVERAGE SALARY FOR A
TOP ADMINISTRATOR OF A NON-PROFIT
(2002)?
–
–
–
–

$98,000
$68,000
$91,000
$73,000
12. ORDER FROM LARGE TO SMALL THE
BUDGETS OF THE FOLLOWING NONPROFITS IN THE U.S.
–
–
–
–

A.
B.
C.
D.
A.
B.
C.
D.
RELIGIOUS
CULTURAL/ARTS
MEMBERSHIP
EDUCATION
13. WHAT FUNDING MECHANISM IS MOST
COMMON AROUND THE WORLD FOR NONPROFITS?
–
–
–
–
A.
B.
C.
D.
PRIVATE FEES
PUBLIC SECTOR GRANTS
PRIVATE DONATIONS
CORPORATE DONATIONS
3/12/2016
MORE QUESTIONS

14. HOW MANY PEOPLE WERE EMPLOYED BY
NON-PROFITS IN 2004 IN THE U.S.
–
–
–
–

5 MILLION
10 MILLION
13 MILLION
25 MILLION
15. AS AN ECONOMIC FORCE IN THE WORLD,
HOW DO NON-PROFITS RATE WITH OTHER
SECTORS?
–
–
–
–

A.
B.
C.
D.`
A.
B.
C.
D.
5 MILLION
10 MILLION
13 MILLION
25 MILLION
16. WHAT PERCENTAGE OF HOUSEHOLDS
GIVE TO CHARITY EACH YEAR IN THE U.S.?
–
–
–
–
A.
B.
C.
D.
55%
70%
80%
90%
3/12/2016
MORE QUESTIONS…

17. WHAT IS THE AVERAGE FAMILY
CONTRIBUTION ANNUALLY?
–
–
–
–
A.
B.
C.
D.
$300
$500
$1,600
$1,800
– IF YOU ANSWERED 13 OR MORE
CORRECTLY YOU ARE A MILLIONAIRE
PHILANTHROPIST.IF YOU ANSWERED 10 OR
MORE CORRECTLY, YOU ARE ON YOUR WAY
TO BEING A GURU. IF YOU ANSWERED 8 OR
LESS CORRECTLY, YOU NEED A HELD HAND
AND PROBABLY SHOULD INCREASE YOUR
UNDERSTANDING AND EDUCATION ON THIS
SUBJECT.
3/12/2016
THREE DISTINCT
FEATURES OF
NONPROFITS
DO NOT COERCE
PARTICIPATION
 OPERATE WITHOUT
DISTRIBUTING PROFITS
TO STAKEHOLDERS
 EXIST WITHOUT SIMPLE
AND CLEAR LINES OF
OWNERSHIP AND
ACCOUNTABILITY

3/12/2016
Elements of the Nonprofit and
Voluntary Sector


The Nonprofit
 And
Voluntary Sector
Member
Serving
Nonprofits
Public
Serving
Nonprofits
Voluntary
Associations
3/12/2016
FOUR FUNCTIONS OF
NONPROFITS AND
VOLUNTARY ACTION
Demand-Side
Orientation
Service Delivery
Provides Needed
Instrumental Services and Responds
Rationale
to Gov’t and Market
Failure
Expressive
Rationale
Civic and Political
Engagement
Mobilizes, Advocates
and
Builds Social Capital
Within Communities
3/12/2016
Supply-Side
Orientation
Social
Entrepreneurship
Provides Vehicle for
Innovation,
Commercial and
Charitable Goals
Values and Faith
Allows Volunteers, Staff
And Donors to Express
Values, Commitments,
Faith
KINDS OF VOLUNTEER
ORGS.










CEMETERY ORGANIZATIONS
CIVIC ORGANIZATIONS
FRATERNAL ORGANIZATIONS
LIBRARIES
POLITICAL PARTIES
PRIVATE AND COMMUNITY
FOUNDATIONS
SCHOOLS
RELIGIOUS ORGANIZATIONS
RESEARCH AND SCIENTIFIC
ORGANIZATIONS
SOCIAL AND COUNTRY CLUBS
3/12/2016
ROLES NON-PROFITS PLAY
IN AMERICA








INNOVATION
MORAL CONSCIENCE
SOCIAL INTEGRATION
PRESERVATION
EXPLORATION
HUMAND DEVELOPMENT
ADVOCACY
SOCIAL CRITICISM
3/12/2016
KEY DATES
IN NON-PROFIT
HISTORY











2,399 B.C.
OF GIVING
1601 A.D.
1835
1855
1894
1954
1974
1988
1996
1997
2002
EGYPTIAN AND GREEK NOTION
ENGLISH POOR LAWS
DE TOCQUEVILLE
PROTESTANT ETHIC
IRS TAX EXEMPTION
501C CREATED
4.6 MILLION WORKERS IN U.S.
U B I T OVERSIGHT STARTS
ATTACK ON AARP TAX STATUS
FIRST VOLUNTEER TAX SUMMIT
GEO. BUSH SR. CALL TO SERVICE
3/12/2016
NON-PROFITS AS AN
ECONOMIC FORCE








$1.1 TRILLION INDUSTRY IN 22
COUNTRIES
WORLD’S 8TH LARGEST ECONOMY
MORE THAN 10 MILLION
VOLUNTEERS
+2 MILLION EMPLOYEES
FUNDING BY FEE (47%) , PUBLIC
SECTOR (42%) AND
PHILANTHROPY (11%)
DOMINATED BY HEALTH AND
SOCIAL SERVICES
TENDENCY TOWARD
BUREAUCRATIZATION
TENDENCY TOWARD OVER
COMMERCIALIZATION
3/12/2016
NON-PROFITS BY
COUNTRY

EDUCATION
• ARGENTINA, BELGIUM IRELAND
BRAZIL MEXICO ISRAEL PERU UNITED
KINGDOM

HEALTH
• U.S. JAPAN NETHERLANDS

SOCIAL SERVICES
• AUSTRIA FRANCE GERMNY SPAIN

CULTURE/RECREATION
• CZECH REPUBLIC HUNGARY ROMANIA
SALOVAKIA

BALANCED
• AUSTRALIA COLUMBIA FINLAND
3/12/2016
THE GENEROSITY INDEX
AMERICAN BENEFACTOR









HIGH TECH ON WEST COAST
CONTRIBUTES LESS
AVERAGE CONTRIBUTION=$600
AVERAGE DONOR GIVE 34 TIMES
SOUTH GIVES MORE
NORTHEAST GIVES LESS
SOUTHWEST AND MIDDLE WEST
BETTER THAN AVRAGE
WYOMING HIGHEST AVERAGE
DEDUCTION
AVERAGE DIRECT MAIL
CONTRIBUTION 425-$50
AVERAGE ANNUAL APPEAL
CONTRIBUTION=$100-$125
3/12/2016
HOW AMERICANS GIVE
2003







LAS VEGAS IS 45TH OUT 50
BLACKS GIVE MORE THAN
WHITES (8.6%)
SELF-EMPLOYED GIVE MORE
(7.3%)
$30,000-$49,000 GIVE MOST
(8.9%)
THE RELIGIOUS WEST (7.8%)
HIGHER EDUCATED GIVE
MORE
MARRIED COUPLES AND
SINGLE WOMEN GIVE MORE
3/12/2016
HOW AMERICANS GIVE
2003



DETROIT (12.1%) AND SALT
LAKE (14.9%)TOPS
WISCONSIN, VERMONT LEAST
GENEROUS
OTHER FACTORS ARE
IMPORTANT: PRESENCE OF
UNIVERSITIES, LARGE
INDIVIDUAL DONORS OR A
TRADITION OF GIVING BY
LOCAL COMPANIES
3/12/2016
WHO VOLUNTEERS?
2004





27.4% OF PEOPLE AGED +16
UTAH, IOWA, NEBRASKA,
MINNESOTA HIGHEST (46%)
TENNESSEE, NEW YORK,
NEVADA (22%) LOWEST
VOLUNTEER CENTERS
RESPONSIBLE FOR 5%
DEFINITION: UNPAID WORK
EXCEPT FOR EXPENSES
3/12/2016
The Nature of Nonprofits
Develop a list of the
unique qualities
of nonprofit organizations.
3/12/2016
TRENDS TO WATCH












EXPANDING SENIOR
MARKET
INTERNATIONALIZATION
TARGET MARKETING
NEED TO IMPROVE
PRODUCTIVITY OF NONPROFITS
TECHNOLOGY
SELF-HELP BYPASSES
INSTITUTIONS
CATALOGS
NICHE MARKETS AND
PUBLICATIONS
BOOT STRAP PROGRAMS
INVESTMENT
OPPORTUNITIES
CHANGES IN FAMILY
STRUCTURE
CHANGES IN
SOCIALIZATION
TRENDS AFFECTING
NON-PROFITS







DECREASING
NUMBER OF
APPLICANTS
POPULATION
GROWTH
CONTINUED
COMMUNITY
COMMITMENT
DOWNSIZING OF
FIRMS
COMPETITION FOR
DONATIONS
INCREASED DESIRE
TO BE INVOLVED IN
COMMUNITY
“FAMILY TIME”
COMMITMENTS
MORE TRENDS TO
WATCH
SOCIALIZATION CHANGES
 ADULT EDUCATION
 PEOPLE WILL WANT TO
BE RECOGNIZED IN NEW
WAYS
 NEW INVESTMENT
OPPORTUNITIES
 BOOT-STRAP PROGRAMS

TRENDS TO WATCH

WHERE SHOULD NON-PROFITS BE BE
GOING?
TRENDS
THAT
WILL
AFFECT
US
IN
THE NEXT
FIVE YEARS
KEY
INDICATORS
TRENDS THAT
WILL AFFECT
US
IN THE NEXT
TWENTY
YEARS
OPPORTUNITIES
Members
Alumni
Media Partners
Speakers Bureau
New Sponsors
Graduation Fundraiser
Use Technology
Broaden Individual Giving
Resource to City
CHALLENGES
Loss of Sponsors
Fewer Applicants
Bad Press
Community Apathy
Wrong Image
Competition
No Impact/Value
MISSION STATEMENTS
MAKE
Good Cents


MISSION STATEMENTS TRANSLATE
INTO PROFITS
COMMON ELEMENTS
•
•
•
•
•
•
•
LEADERSHIP
QUALITY
GROWTH AND PROFITABILITY
CUSTOMERS
PRODUCTS AND SERVICE
ORGANIZATIONAL PHILOSOPHY
DIFFERENTIATION FROM
COMPETITION
CORE VALUES
LEADERSHIP
DIVERSITY
COMMITTMENT
MISSION AND ACTIVITIES
MISSION
ACTIVITIES
S
T
A
K
E
H
O
L
D
E
R
S
R
E
S
P
O
N
S
I
B
I
L
T
Y
ATTRACTING THE
BEST VOLUNTEERS

THE FOUR M’S
•
•
•
•

MANAGEMENT
MARKETING
MOTIVATION
MISSION
ASSESSMENT
• EFFECTIVENESS
• EFFICIENCY
• PRODUCTIVITY
3/12/2016
WHO VOLUNTEERS?




49% OF AMERICANS
TRADITIONALLY
BETWEEN 25 AND 54 MOST
LIKELY
70% OF COLLEGE
GRADUATES DONATE
AVERAGE OF 5 HOURS A
WEEK
VOLUNTEERING INCREASES
WITH HOUSEHOLD INCOME
• 70% WITH HOUSEHOLD INCOME
OF $100,000 OR MORE
3/12/2016
WHAT DOES VOLUNTEERISM
CONTRIBUTE?

93 MILLION ADULTS @20.3
BILLION HOURS OR 4.2
HOURS PER WEEK PER
PERSON = $202 BILLION
3/12/2016
ONE EXAMPLE:
COMMUNITY LITERACY IN
ONTARIO CANADA





TOTAL ECONOMIC VALUE
ANNUALLY: $8.9 MILLION
TOTAL OUT-OF-POCKET
EXPENSES : $2.25 MILLION
15.22 HOURS PER MONTH
HOURLY RATE: $17.34 PER
HOUR
AVERAGE DURATION: 3.71
YEARS
3/12/2016
UNIQUE QUALITIES
•The absence of a profit
measure
• Difference in tax and legal
status
• Tendency to be service
organization
• Differences in governance
• Nature of stakeholders
• Source of financial support
• Use of volunteers
3/12/2016
THE NEW POWER OF
527S

INDEPENDENT GROUPS
• AMERICA COMING
TOGETHER
• MOVEON
• PROGRESS FOR AMERICA
VOTER FUND
• MEDIA FUND
• JOINT VICTORY CAMPAIGN
2004
• SWIFT VOTE VETERANS
• POWS FOR TRUTH
• PUNK VOTER INC.
3/12/2016
NEW 527s TOP DONORS
+$167 million




3/12/2016
GEORGE
SOROS (23.7
MILLION)
PETER LEWIS
(23.1 MILLION)
STEPHEN BING
(14 MILLION)
HERB AND
MARION
SANDLER (12.5
MILLION)
WHAT IS STRATEGY?
Strategos
 Approach VS Execution
 Middle-Ground
 Begins with Big Choices

structural vs non-structural
change
existing vs new people
short vs long term
objectives
remedial vs strength driven
activities
3/12/2016
DEFINITION OF
STRATEGIC PLANNING

A DISCIPLINED EFFORT TO
PRODUCE FUNDAMENTAL
DECISIONS AND ACTIONS THAT
SHAPE AND GUIDE WHAT AN
ORGANIZATION IS, DOES AND THE
RATIONALE BEHIND ITS ACTIONS

THE PROCESS OF IDENTIFYING
AND IMPLEMENTING
ORGANIZATIONAL STRATEGIES
THAT ADVANCE THE MISSION AND
GOALS OF YOUR ORGANIZATION
AND ARE CONSISTENT WITH YOUR
ENVIRONMENT
3/12/2016
STRATEGIC THINKING
INSTEAD OF PLANNING



BEGIN BY ASKING THE
QUESTION THAT
EVERYONE IS AVOIDING:
SO WHAT?
YOU
DO________________BEST
. SO WHAT?
3/12/2016
THE CONTEXT AND
PROCESS
OF STRATEGIC CHANGE





THE STRATEGY CHANGE
CYCLE
KEY DESIGN CHOICES
WHAT ARE THE DANGERS TO
AVOID?
WHAT ARE THE KEYS TO A
SUCCESSFUL PROCESS
FUNCTIONS AND PURPOSES
OF STRATEGIC PLANNING
AND MANAGEMENT
3/12/2016
THE CONTEXT AND
PROCESS
OF STRATEGIC CHANGE

STEPS IN THE CHANGE CYCLE
• INITIATE AND AGREE ON A PROCESS
• CLARIFY ORG. MANDATES
• IDENTIFY AND ENGAGE
STAKEHOLDERS
• DEVELOP AND REFINE MISSION AND
VALUES
• ASSESS ENVIRONMENT
• FRAME STRATEGIC ISSUES
• FORMULATE STRATEGIES TO
MANAGE
• REVIEW AND ADOPT A PLAN
• ESTABLISH EFFECTIVE ORG. VISION
• IMPLEMENTATION PLAN
• REASSESS STRATEGIES AND PLAN
3/12/2016
STRATEGIC CHANGE: THEORY
VS.
PRACTICE
PROCESS DOESN’T
ALWAYS BEGIN AT
BEGINNING
 PROCESS IS USUALLY
ITERATIVE
 OCCURS WITHIN AN
EXISTING CONTEXT
 ABSTRACT VS.
CONCRETE CHANGE
 WHEN DO GOALSETTING
AND VISIONING OCCUR?

3/12/2016
STRATEGIC CHANGE: DESIGN
CHOICES
WHOSE PLAN IS IT?
 WHAT ARE THE
PURPOSES OF THE
PLANNING PROCESS?
 HOW WILL THE PROCESS
BE TAILORED TO THE
SITUTIATION AT HAND?
 HOW WILL THE PROCESS
BE MANAGED?

3/12/2016
STRATEGIC CHANGE:
KEYS TO SUCCESS








BE SURE THE ORG. IS READY
KEY STAKEHOLDERS AND
STRONG LEADERS
SKILLFUL CHAMPTIONS
BUILD UNDERSTANDING TO
SUPPORT STRATEGIC
THINKING
CULTIVATE SUPPORT
FOSTER EFFECTIVE
DECISIONMAKING
DESIGN A PROCESS THAT
WILL SUCCEED
MANAGE THE PROCESS
3/12/2016
LAMAZE INTERNATIONAL

1960-TO PROMOTE NATURAL CHILDBIRTH
METHOD OF CHILDBIRTH EDUCATION

1986-TO PROMOTE OPTIMAL CHILDBIRTH AND
EARLY PARENTING EXPERIENCE FOR
FAMILIES THROUGH EDUCATION, ADVOCACY
AND REFORM

1999- TO PROMOTE NORMAL NATURAL
HEALTHY AND FULFILLING CHILDBEARING
EXPERIENCES FOR WOMEN AND FAMILIES
AND PROFESSIONALS THROUGH EDUCATION
AND CERTIFICATION
3/12/2016
ATTRIBUTES OF
STRATEGIC PLANNING







IDENTIFIES AND RESOLVES
ISSUES
ASSESSES INTERNAL AND
EXTERNAL ENVIRONMENT
ACTION-ORIENTED
A VISION OF SUCCESS
IDENTIFIED
NOT BECAUSE OF LEGAL
REQUIREMENT
ACTORS TAKE
RESPONSIBILITY
NOT LIMITED BY STRUCTURE
3/12/2016
STRATEGIC PLANNING
HELPS TO






THINK STRATEGICALLY
CLARIFY FUTURE DIRECTION
ESTABLISH PRIORITIES
MAKE DECISIONS IN LIGHT OF
FUTURE CONSEQUENCES
DEVELOP RATIONAL BASIS
FOR DECISIONS
EXERCISE DISCRETION
3/12/2016
STRATEGIC PLANNING
HELPS TO





MAKE DECISIONS ACROSS
LEVELS AND FUNCTIONS
SOLVE MAJOR
ORGANIZATIONAL PROBLEMS
IMPROVE ORGANIZATIONAL
PERFORMANCE
DEAL EFFECTIVELY WITH
RAPID CHANGE
BUILD TEAMWORK AND
EXPERTISE
3/12/2016
IF IT ACTS LIKE A
STRATEGY...
CONNECTS ASPIRATIONS
TO ACTION
 USES TIME TO YOUR
ADVANTAGE
 CONNECTS TO
PERFORMANCE TARGETS
 INVOLVES ALL
STAKEHOLDERS
 FOCUSED AND SPECIFIC
OBJECTIVES AND
OUTCOMES

3/12/2016
PLANNING CHANGE
PHASES
 RESOURCES, REWARDS,
PERFORMANCE
 MONITORING,
EVALUATION,
COMMUNICATING
 PLANNING CHANGE
 ENCOURAGING PEOPLE
THROUGH CHANGE

3/12/2016
THE PLAN AS A CHANGE
TOOL
CHANGE HAPPENS
 SALIENT AND TRACTABLE
 TIMING IS EVERYTHING
 LAWS OF CHANGE
 THINGS TO REMEMBER
 MAKING CHANGE EASIER
 DEALING WITH THE FOUR
PHASES

3/12/2016
STRATEGIC CHANGE IN A
NETWORKED WORLD

INDIAN STATE OF ANDHRA
PRADESH
• PARTICIPATING THROUGH EGOVERNMENT



DECENTRALIZING DEFENSE
CUSTOMIZED E-KNOWLEDGE
FROM PUBLIC EDUCATIONAL
INSTIUTIONS
USING ARBITRAGE,
AGGREGATION, REWIRING
AND REASSEMBLY
STRATEGICALLY
3/12/2016
CHALLENGES AND
OPPORTUNITIES

MANDATE AND MISSION
• PLUSES AND MINUSES
FROM MONOPOLY TO
COMPETITION
 PLUSES AND MINUSES
 FROM CONCENTRATION
TO DIVERSIFICATION OF
REVENUE
 FROM OUTPUTS TO
OUTCOMES

3/12/2016
WHERE TO START?
NOT THE MISSION BUT
THE VISION
 WHAT YOU DO AND WHO
YOU ARE
 KEY ACTIVITIES
 KEY BELIEFS
 KEY PATTERNS
 KEY ENVIRONMENTAL
SHIFTS
 BENCHMARKS

3/12/2016
THE STRATEGIC PORTFOLIO
PROBLEMS VS
OPPORTUNITIES
 DILIBERATIVE VS.
INSIGHTFUL
 ORGANIZATION WIDE VS.
FOCUSED
 WIDELY SUPPORTED VS.
INNOVATIVE

3/12/2016
STRATEGIC
POSITIONING
STRATEGY AND THE
INTERNET
 SIX PRINCIPLES

• START WITH THE RIGHT
GOAL
• DELIVER A VALUE
PROPOSITION
• STRATEGY REFLECTED IN A
DISTINCTIVE VALUE CHAIN
• TRADE-OFFS ARE MADE
• STRATEGY DEFINES HOW
ELEMENTS FIT
• CONTINUITY OF DIRECTION
3/12/2016
ACTIVATING CHANGE

PHASE ONE.
UNDERSTANDING STRATEGIC CHANGE
 THE STRATEGIC PLAN:
PRECONDITION FOR CHANGE
 STEPS TO PLAN IMPLEMENTATION
 HOW THE STRATEGIC CHANGE
PROCESS PLAYS OUT OVER TIME
 TECHNIQUES AND INSIGHTS ABOUT
BEST-IN-CLASS CHANGE AGENTS
3/12/2016
ACTIVATING CHANGE

PHASE TWO.

DEVELOPING AN
ACCOUNTABILITY SYSTEM

TURNING PRIORITY ISSUES
MEASURABLE ACTION

EMBEDDING PLANS INTO
DEPARTMENTAL PLANNING

NEGOTIATING INDIVIDUAL
ACCOUNTABILITIES

CHANGING ORGANIZATIONAL
STRUCTURE-FAST

CHANGING PEOPLE-FAST

FOSTERING CREATIVE
LEADERSHIP AND COMMITMENT

REMOVING RESISTANCE
3/12/2016
ACTIVATING CHANGE

PHASE TWO.
 USING TEAMS APPROPRIATELY

DEFINING THE FUTURE CULTURE

PUTTING YOUR MONEY WHERE
YOUR FUTURE IS

ALIGNING WORK WITH THE PLAN

EMPOWERING EXECUTION

TRAINING AND DEVELOPING THE
FUTURE-NOW

FIXING CRACKS IN THE CORE
PROCESSES

COMMUNICATING TO EVERYONE
ALL OF THE TIME

REVIEWING PERFORMANCE FOR
ACCOUNTABILITY

REWARDING STRATEGIC
RESULTS
3/12/2016
ACTIVATING CHANGE


PHASE THREE.
PUTTING IT ALL TOGETHER
THE IMPLEMENTATION
PLANNING PROCESS
ORGANIZING TO
CONTINUALLY IMPROVE
PLANS
3/12/2016
MODELS OF STRATEGY
FORMULATION
THE ANALYTICAL
APPROACH
 THE VISIONING
APPROACH
 THE INCREMENTAL
APPROACH
 THE GOALS APPRAOCH
 THE DIRECT APPROACH

3/12/2016
AMERICAN ASSOCIATION
OF BLOOD BANKS


MISSION: HIGHEST STANDARDS
OF CARE FOR PATIENTS AND
DONORS THRU LEADERSHIP IN
BLOOD BANKING, TRANSFUSION
AND TISSUE TRANSPLANTATION
GOALS:
• EDUCATING MEMBERS, HEALTH
PROVIDERS, DONORS, PATIENTS,
POLICYMAKERS AND PUBLIC
• FORUM FOR INFORMATION EXCHANGE
• ENSURING SAFE AND ADEQUATE
SUPPLY OF BLOOD AND TISSUE
• IMPLEMENTING TECHNOLOGICAL
ADVANCES
3/12/2016
PUTTING IT ALL
TOGETHER

Do
• plan, think, implement
parallel
• use internal teams
• bring in outsiders
• tend to processes and
to bottom-line
3/12/2016
PUTTING IT ALL
TOGETHER

Don’t
• skip a key ingredient or
step
• back off implementing full
system
• back off asking the tough
questions
• back off making tough
changes
• back off your standards
3/12/2016
STRATEGIC OBJECTIVES
FOR AABB






DEVELOP AND MANAGE QUALITY
MANAGEMENT PROGRAMS
INCREASE PROFESSIONAL
EDUCATION
ESTABLISH SUPPORTIVE LEGAL,
REGULATOR AND PUBLIC POLICY
ENVIRONMENT
PROMOTE SCIENTIFIC RESEARCH
COLLABORATE WITH OTHER
BLOOD BANKING PROGRAMS
DEVELOP ACCEPTANCE OF AABB
ACTIVITIES/ROLES WITH PUBLIC
SECTOR AND PROFESSIONALS
3/12/2016
CHECKLIST FOR
STRATEGIC PLANNING









SUPPORT FROM ELECTED
LEADERS
INVOLVED STAKEHOLDERS
OUTSIDE ASSISTANCE
THOUGHT STRATEGICALLY
CONDUCTED
ENVIRONMENTAL ANALYSIS
PLANNED AND CONDUCTED A
PLANNING SESSION
PROCESS FOR
IMPLEMENTATION
DOCUMENTED THE PROCESS
CONTINUALLY MONITORED
AND UPDATED THE PLAN
3/12/2016
Tax
Considerations
• Exempt from income, property
and sales
taxes.
• Contributions to nonprofit are
tax
deductible
• Cannot distribute assets or
income to any individual
• On dissolution distribute assets
to 501(c)(3)
3/12/2016
Internal Revenue Code
• 501 (C)(3) - Religious,
charitable or educational
• 501 (C)(4) - Social welfare or
advocacy
• 501 (C)(5) - Labor or
agriculture organization
• 501 (C)(6) - Business leagues
• 501 (C)(7) - Social and
recreational clubs
3/12/2016
Legal
Considerations
• Ownership of the entity
• Surplus generation and
distribution
3/12/2016
GETTING AND KEEPING
TAX EXEMPT STATUS

THREATS
• INTERFERENCE IN POLITICAL
CAMPAIGNS
• EXCESSIVE INCOME FROM
UNRELATED BUSINESS ACTIVITIES
• USE OF EXEMPT ASSETS TO BENEFIT
OFFICER OR DIRECTOR

BENEFITS
• GRANT MAKING ORGS REQUIRE
• BULK MAIL RATE
• ELIMINATES DONOR/AUDIT
QUESTIONS
• CHARITABLE GAMING FUND-RAISING
• AVOID SALES TAXES ON PURCHASED
GOODS
3/12/2016
APPLYING FOR TAX
EXEMPT STATUS

IMPORTANT CLAUSES
• PURPOSE
• OPERATION
• DISSOLUTION
70% APPROVED BY IRS
 15 MONTHS – FILE FORM
1023 OR 1024 WITH SS-4
 EXEMPT
DETERMINATIONA LETTER
(FORM 8718)
 ADVANCE RULING (872-C)

3/12/2016
APPLYING FOR TAX
EXEMPT STATUS




TEMPORARY DETERMINATION
LETTER
PERMANENT EXEMPT STATUS –
GOOD FOR FIVE YEARS
PUBLIC INSPECTION
INFORMATION RETURN – FORM
990
• TO POST OR NOT POST
–
–
–
–
–
NAMES, SALARIES, SELF-DEALING,
NUMBER EMPLOYED
SPENDING TO FUNDRAISE
PROGRAM ACCOMPLISHMENTS
LOBBYING AND POLITICAL ACTIVITIES.
3/12/2016
ROLES AND
RESPONSIBILITIES OF
BOARDS








ENSURE MISSION CARRIED OUT
MEET FIDUCIARY
RESPONSIBILITIES
CONTRIBUTE TO BOTTOM LINE
RESPECT OTHER BOARD
MEMBERS
CONFIDENTIALITY AND CONFLICT
OF INTEREST
RESPECT AND SUPPORT STAFF
ENHANCE ORG’S PUBLIC IMAGE
RECRUIT OTHER LEADERS
3/12/2016
BOARD COMMITTEES

GOVERNANCE
• EXECUTIVE
• FINANCE
• NOMINATIONS


AD-HOC
KEYS TO SUCCESS
• CLEARLY DEFINED TASKS AND
TIMELINES
• COMMITTED CHAIR
• COMMITTED MEMBERS
• TIME TO MEET
• RESOURCES
• BOARD LIAISON
3/12/2016
CHECKLIST FOR BOARD
AND STAFF
EFFECTIVENESS

POLICIES BASED ON MISSION AND
STAKEHOLDERS
• BOARD SIZE, COMPOSITION,
NOMINATIONS, ELECTIONS



POLICIES AND PROCEDURES
ORIENTATION PROGRAM
CLEAR LINES OF COMMUNICATION
• BOARD, STAFF, COMMITTEES,
CONSTITUENTS


RECRUITMENT SYSTEM FOR NEW
VOLUNTEERS
REVIEW PROCESS FOR
EXECUTIVE
3/12/2016
QUESTIONS TO ANSWER






BOARD MEMBERS ACCOUNTABLE
FOR TIMELY COMPLETION OF
ASSIGNMENTS?
COMMITTEE MEMBERS
ACCOUNTABLE?
STAFF ACCOUNTABLE?
INFORMAL OPPORTUNITIES TO
INTERACT WITH BOARD?
PERIODIC ASSESSMENT OF
BOARD OPERATION?
SUPPORT FOR EXECUTIVE’S
PROFESSIONAL DEVELOPMENT?
3/12/2016
ALL POLITICS IS LOCAL:
HOW TO USE
VOLUNTEERS?
HOW COULD
VOLUNTEERS HAVE BEEN
USED TO IMPROVE
OUTCOMES?
 TO IMPROVE USE OF
COLLABORATIVE CARE
PROJECT TEAMS?
 WHAT ROLE FOR THE
BOARD?
 WHY WAS NELLIE
UNSUCCESSFUL?

3/12/2016
KEYS TO SUCCESS IN
CHANGE WITH
VOLUNTEERS






CONTROL
COMMUNICATION
ENGAGEMENT
TRAINING
ACKNOWLEDGEMENT
CELEBRATING SUCCESS
3/12/2016
MAKING CHANGE
STICK

CHARTERING
• BOUNDARY SETTING
• TEAM DESIGN

LEARNING
• DATA GATHERING
• EXPERIMENTATION

MOBILIZING
• STORYTELLING
• SYMBOLIC ACTION

REALIGNING
• JOB REDESIGN
• PERFORMANCE
MEASUREMENT AND
MANAGEMENT
3/12/2016
THE NEW INFORMATION
TECHNOLOGY
WORD PROCESSING
 COMMUNICATIONS
 MAILING LIST, DONOR,
DATA BASE MANAGEMENT
 DISCUSSIONS AND
MEETINGS
 FINANCIAL RECORD
KEEPING AND ANALYSIS

3/12/2016
3/12/2016
MANAGEMENT
CHALLENGES AND NEW
IT INFRASTRUCTURES






1500 MILLION MOBILE VS 1000
MILLION FIXED LINE
LOSS OF MANAGEMENT
CONTROL OVER SYSTEMS
CONNECTIVITY AND
APPLICATION INTEGRATION
ORGANIZATIONAL CHANGE
REQUIREMENTS
HIDDEN COSTS OF
ENTERPRISE COMPUTING
SCALABILITY, RELIABILITY
AND SECURITY
3/12/2016
ASU STUDENT TOUR VIA
COMPUTER





GPS
TECHNOLOGY
HANDHELD DELL
COMPUTERS
ADJUSTS BY
STUDENT
INTEREST
PAPER MAP PLUS
LOCATIONBASEDSERVICES IN THE
FUTURE
3/12/2016
NEW INFORMATION
TECHNOLOGY












CREDIT CARD
PAYMENT
DONATION
MANAGEMENT
ANNUAL FUND
DONATIONS
CAPITAL
CAMPAIGNS
DATA MANAGEMENT
DIRECT MARKETING
DISTANCE
EDUCATION
EVENT
MANAGEMENT
ON-LINE AUCTIONS
ANALYTICAL
REPORTS
PROJECT
MANAGEMENT
ACCOUNTING
3/12/2016











INVENTORY
MANAGEMENT
ACCOUNTS
RECEIVABLE
BUDGETING
ACCOUNTS
PAYABLE
HUMAN
RESOURCES MGT.
BULK MAILING
STATE COMPLIANCE
REPORTS
PAYROLL
DESKTOP
PUBLISHING
OUTSOURCING
RESEARCH
FROM WEBSITES TO
PORTALS

THREE CRITICAL
OBJECTIVES
• DRIVE THE
ORGANIZATION’S
MARKETING MESSAGE
• SUPPLEMENT THE
ORGANIZATION’S
FUNDRAISING RESOURCES
24/7
• ENSURE 24/7 ONLINE
TRANSACTIONS FLOW
SEAMLESSLY WITHOUT
HUMAN INTERVENTION
3/12/2016
A COMPLETE E MARKETING
SYSTEM






INTERACTIVE WEBSITE
WEEKLY ENEWSLETTERS
SATELLITE TELECONFERENCES
WITH VIDEOS FOR DONORS
COMPONENT LITERATURE THAT
WORKS TOGETHER WITH
EMARKETING
SOFTWARE FOR EMAIL
PROPOSALS, SEMINARS AND
NOTEBOOK PRESENTATIONS
UPGRADES AND MAINTENANCE
INCLUDED
3/12/2016
ELECTRONIC
COMMUNICATIONS
POLICIES








TREAT AS IMPORTANT
DOCUMENTS
RETAIN ACCESS TO ALL
MESSAGES
GUARD CONFIDENTIALITY
PROTECT ATTORNEY/CLIENT
PROTECT COPYRIGHTS
E-MAIL ETIQUETTE
STORE AND SYSTEMATICALLY
DELETE MESSAGES
LISTSERV FORUMS
3/12/2016
HOW SOFTWARE HELPS
RONALD MCDONALD HOUSE





GOAL: ACTIVE
AND EFFICIENT
COMMUNICATION
WITH DONORS
AND VOLUNTEERS
COMPUTERIZE
INDEX CARDS AND
FILES
METAFILE ALLOWS
TRACKING OF
DONORS AND
DATABASE MGT.
AFFORDABLE
TECHNICAL
SUPPORT
3/12/2016
DEVELOPING A STRATEGIC
PLAN
WHO ARE YOUR
AUDIENCES AND WHAT IS
THEIR PRIORITY?
 WHAT IS THE WEBSITE
OBJECTIVE?
 HOW FREQUENTLY DO
YOU WANT TO PROVIDE
NEW MATERIAL?
 WHAT IS YOUR
OPERATIONAL PLAN?

3/12/2016
GLOSSARY OF TERMS






HARDWARE = WIRING AND
PHYSICAL COMPONENTS
SOFTWARE = INSTRUCTIONS
THAT TELL HARDWARD WHAT
TO DO
FIRMWARE = HARDWARE
WITH SOFTWARE IMBEDDED
INTERNET = COMPUTERS
INTERLINKED TO FORM
GLOBAL NETWORK
INTRANET = COMPUTERS
LINKED WITHIN AN
ORGANIZATION
EXTRANET = ELECTRONIC
TRADING COMMUNITIES
3/12/2016
INFORMATION SYSTEMS
CHECKLIST







STRATEGIC PLAN FOR
DEVELOPMENT OF YOUR I/S?
HOW DOES IT RELATE TO
MISSION STATEMENT?
TIMETABLE AND BUDGET?
WHO IS STAFFING?
HOW ARE YOU USING
INTERNET TO COMMUNICATE
TO KEY PEOPLE?
STATUS AND CHARACTER OF
WEBSITE?
SECURITY AND SYSTEM
FAILURE ADDRESSED?
3/12/2016
LOOKING BEYOND
NATIONAL BORDERS



WHAT ARE THE OPPORTUNITIES
AND CHALLENGES?
PARTNERING
MANAGEMENT ISSUES
• CULTURAL DIFFERENCES
• LANGUAGE
• DISTRIBUTION
• CUSTOMS
• ELECTRONIC
CORRESPONDENCE?
• PRINTED MATERIALS
• FINANCE
• TECHNOLOGY
• PUBLICATIONS
• MEETINGS
• MEMBERSHIP
3/12/2016
CHECKLIST FOR
ASSESSING AND
DEVELOPING






ARE FOREIGN CITIZENS
PARTICIPATING?
MARKETS FOR INFORMATION OR
PRODUCTS?
MISSION INCLUDE SHAPING
PUBLIC ATTITUDES?
ARE FOREIGN PROFESSIONALS
CONTRIBUTING TO KNOWLEDGE?
INFORMATION EASILY SHARED
INTERNATIONALLY?
RESOURCES TO INVEST IN
RESEARCH, TRAVEL?
3/12/2016
MOVING YOUR
AGENDA:MAKING MEETINGS
WORK FOR YOU

DESIGNING THE MEETING
•
•
•
•
PURPOSE
SITE SELECTION
DESIRED OUTCOMES
LOGISTICS
– GENERAL AND ON-SITE
• MEETING COORDINATOR’S
ROLE
• SCHEDULE
• SPECIAL EVENTS
• SPEAKERS
• BUDGET
• REGISTRATION
• TRANSPORTATION
3/12/2016
Categories of Nonprofit Organizations
Nonprofit
Organizations
Government
Federal
State
Private
(Tax Exempt)
Local
3/12/2016
Charitable Commercial &
501 (C)(3) Membership
Nature of Stakeholders
Define what we mean by stakeh
Develop a list of the stakeholder
for a typical nonprofit.
3/12/2016
Donors
Volunteers
Board
Employees
nonprofit
Government
Nonprofit Stakeholders
3/12/2016
Society
Service
Benef.
Community
Growth and Evolution
of Nonprofits
Maturity
Growth
Founding
Time
3/12/2016
Founding
Growth
Maturity
• Unpaid staff
• Low paid staff
• Market pay scale
• Hands on board • Board in transition• Corporate style board
• Driven by passion
• Mixture
• Driven by mission
• Informal procedures
• Formal procedures• Formal procedures
• Struggle for survival
• Professional fundraising
• Professional fundraisin
• Volunteers/clients
•Mixture
3/12/2016
• Professional manageme
Usefulness of Profit
Measure
• Single criterion
• Quantitative analysis
• Performance measure
• Decentralization
3/12/2016
How Do You Measure
Organizational
Effectiveness in a Nonprofit?
Must have clear idea of :
• The ultimate goals of the
organization
• Means used to achieve these
goals
• Causal links between means and
ends
3/12/2016
General Principles for
Evaluating
Organizational Effectivenes
• The best evaluation is self-evaluation
• Make self-evaluation part of planning
• Good evaluation is continuous evalua
• Include stakeholder expectations
• Involve the board
• Make the objective continuous impro
3/12/2016
What kinds of evaluation
processes
are you familiar with?
3/12/2016
SPRINGER Principle
If you don’t measure it
you can not manage it!
3/12/2016
Why Plan?
• Clarify future direction
• Provide foundation for decision
• Address major issues and solve m
problems
• Improve organizational performa
• Deal with changing circumstanc
• Build teamwork and expertise
3/12/2016
Types of Planning
Management Level
Planning Horizons
Top management
Middle management
Strategic planning
One to five years
Intermediate planning
Six months to two years
Lower management
Operational planning
One week to one year
3/12/2016
Strategic Plan
“Strategic planning is a disciplined effort
to produce fundamental decisions and
actions that shape and guide what an
organization is, what it does, and why it
does it.”
Bryson, John M., Strategic Planning for Public and Nonprofit Org
3/12/2016
Simple Strategic Planning
Model
Involve Board
& Executive Staff
External
Environment
Establish
Mandates
Strategic Issues
Internal
Environ
ment
Strategic
Vision
3/12/2016
Simple Strategic Planning M
• Identify strengths, weaknesses in
environment and opportunities and
external environment.
• Develop practical alternatives to o
barriers and move organization to a
of performance and take advantage
opportunities.
3/12/2016
Mission Statement
A succinct statement which sets forth the or
purpose and philosophy. Although, brief, th
statement will specify the fundamental reas
organization’s existence; establish the scope
organization; and identify the organization’
characteristics.
3/12/2016
Governance of Nonprofits
• Board composition
• Reasons for serving on board
• Board succession and recruitm
3/12/2016
Board Basic
Responsibilities
• Determine mission and purpose
• Select and support chief executive
• Review executive’s performance
• Plan for the future
• Approve and monitor programs
• Provide sound financial managemen
• Enlist financial resources
• Advance public image
• Maintain professional and ethical sta
3/12/2016
Chief Executive’s Leadershi
• Facilitate interaction in board relations
• Show respect and consideration toward
• Envisioning change and innovation wi
• Provide useful and helpful information
• Promote board accomplishments and p
• Assist board with self-assessment
• Assist in recruiting able and effective m
3/12/2016
Policy vs.
Administration
• Too simple - board/staff relationship
more complex
• Chief executive must manage board
involvement
• Take advantage of board expertise
• Work with board chair to discourage
excessive meddling
• Keep board informed and involved in
policy issues
• Create board culture to discourage
excessive meddling
3/12/2016
Management Defined
“ Management is the process of
with and through others to achie
organizational objectives in a ch
environment.”
Kreitner, Robert, Management, Sixth Edition, p. 4
3/12/2016
Controlling
Leading
Motivating
Planning
Managing
for
effectiveness
and
efficiency
Decision Making
Organizing
Staffing
Kreitner, Robert, Management, Sixth Edition The Management
Challenge
3/12/2016
Action Plans
“Action plans detail specific means by
which strategies will be implemented and
strategic objectives are reached.”
Herman, Robert D., The Jossey-Bass Handbook of Nonprofit Leadership a
3/12/2016
Elements of
Action Plans
• What steps or actions are required
• Who will be held accountable
• What is the schedule for completing
• What resources are needed
• Process for feedback and evaluation
3/12/2016
Planning and Performance
Evaluation
The MBO Cycle
Setting Objectives
Periodic Review
Develop Action Plans
Performance Appraisal
3/12/2016
Qualities of Effective
MBOs
• Must be clear and specific
• Must be measurable
• Must include time for performan
• Must be participatory
• Must support strategic objectives
3/12/2016
SO HOW ABOUT YOU –
BRINGING IT HOME
Write five good objectives of
things
you intend to accomplish in the
next
six months
3/12/2016
Decision Making
The greater
degree of
uncertainty in
the
outcome the lower
the confidence
level
in the decision.
The key to
good decision
making is to
lessen the
degree of
uncertainty.
3/12/2016
Techniques for Making
Quality Decisions
• Proper framing of the
decision
• Gather all relevant
information
• Consult or involve appropriate
people
• Explore alternatives
• Evaluate risks and rewards
• Make incremental decision
when possible
• Plan for feedback and
adjustment loop
3/12/2016
Decision Making Exercise
Class discussion of interesting
decisions
and steps taken to assist in
decision making
process.
3/12/2016
Elements of Staffing
• Identify the needs, skills,
knowledge, and
experience required
• Recruiting process
• Resume review
• Interviewing
• Reference checking
• Selection and hiring
3/12/2016
Elements of Staffing
• Orientation and training
• Supervision and motivation
• Evaluation
3/12/2016
SPRINGER Principle
Individuals undergo
maximum personal
growth when they help other
people to
grow.
Peck, M. Scott, The Road Less Traveled
3/12/2016
Relationship Behavior
High Relationship
and
Low Task
High Task
and
High Relationship
Low Relationship
and
Low Task
High Task
and
Low Relationship
(Low)
Providing Supportive Behavior
(High)
Hersey, Dr. Paul, The Situation Leader
(Low)
Task Behavior
(High)
Providing Directive Behavior
3/12/2016
The Essence of Effective Supervi
• Responsibility for subordinate’s
success
• Give clear and understandable
direction
• Encourage questions and
clarification
• Develop skills, knowledge &
experience
• Provide frequent honest feedback
• Help achieve full potential
• Responsible Empowerment
3/12/2016
The Essence of Effective
Supervision
• Fitting jobs to people
• Motivation through
rewards
• Expansive concept of
rewards
• Words and
recognition
• Dollars
• Education and
development
• Advancement
• Sense of achievement
3/12/2016
SPRINGER Principle
Most people enjoy work and
want to do
a good job. The average
person can learn
to accept and seek
responsibility, and with
the help of creative leadership
can be an
effective employee.
McGregor, Douglas, The Human Side of Enterprise
3/12/2016
Recruiting and Retaining
Volunteers
Needs Assessment
Orientation & Training
Job Design
Supervision &
Motivation
Recruitment
Evaluation
Interview & Matching
Recognition
3/12/2016
Volunteer Management
Developing a good working
relationship
between staff and volunteers is
important,
and staff should be evaluated on
how well
they work
with volunteers.
3/12/2016
SPRINGER Principle
Use volunteers as unpaid staff
and
use as much care in selection,
training
and motivating as you would
employees.
3/12/2016
Elements of Leadership
• Showing up prepared
• Generate positive energy
• Focus on the circle of
influence
• Seek first to understand
then be understood
• Maintain a positive balance
in trust accounts
• Seek win/win solutions
Read: Covey, Stephen R., The 7 Habits of Highly Effective
People
3/12/2016
The Concept of Servant
Leadership
• They are servants first
• They articulate goals
• They inspire trust
• They know how to listen
• They are masters of positive
feedback
• They rely on foresight
• They emphasize personal
development
Greenleaf, Robert K., The Servant as Leader
3/12/2016
BUNDLE OF SKILLS
FINANCIAL
FUND
DEVELOPMENT
PERSONNEL
EXECUTIVE
DIRECTOR
PUBLIC
RELATIONS
MANAGEMENT
3/12/2016
VOLUNTEERING AS
COMMUNITY OUTREACH





BUILDING JOB SKILLS AND
WORK EXPERIENCE
EXPAND AGENCY’S BASE OF
ACTIVITIES AND CREDIBILITY
STRENGTHEN TIES TO
COMMUNITY
FACILITATE ORG. OUTREACH
AND MARKET SERVICES
ADVOCACY
– CAN VOLUNTEERISM EVER BE
SUCCESSFULLY PROMOTED
THROUGH A GOVERNMENTAL
PROGRAM
3/12/2016
REASONS FOR
VOLUNTEERING
WANTING TO HELP
OTHERS
 CIVIC DUTY
 BELIEVE IN CAUSE
 GAIN WORK EXPERIENCE
AND LEARN NEW SKILLS
 MEET NEW PEOPLE
 SET EXAMPLE FOR
FAMILY
 CONTINUE FAMILY
TRADITION

3/12/2016
MANAGING EXPECTATIONS
5% VOLUNTEER FOR
LEADERSHIP POSITIONS
 15% ACTIVE VOLUNTEERS
 75% OCCASIONAL
VOLUNTEERS
 5% CRITICS

3/12/2016
12 BASIC NEEDS OF
VOLUNTEERS











SPECIFIC MANAGEABLE TASK WITH A
BEGINNING AND AN END
TASK THAT MATCHES INTERESTS
GOOD REASON FOR DOING TASK
WRITTEN INSTRUCTIONS
REASONABLE DEADLINE
FREEDOM TO COMPLETE WHEN AND
WHERE MOST CONVENIENT
NECESSARY TOOLS
ADEQUATE TRAINING
SAFE, COMFORTABLE FRIENDLY WORKING
ENVIRONMENT
FOLLOW-UP TO SEE WHEN TASK IS
FINISHED
APPRECIATION, RECOGNITION AND
REWARDS THAT MATCH REASONS FOR
VOLUNTEERING
3/12/2016
STAFFING + FINANCIAL
MANAGEMENT





TO OUTSOURCE OR NOT TO
OUTSOURCE?
PART-TIME OR VOLUNTEER?
CHIEF ACCOUNTANT WITH
NON-PROFIT EXPERIENCE
BOOKKEEPING SUPPORT FOR
ACCTS. RECEIVABLE AND
ACCTS. PAYABLE
MANUAL VS. APPLICATION
SERVICE PROVIDER OR OFFTHE-SHELF (QUICKBOOKS,
QUICKEN ETC.)
3/12/2016
CHECKLIST FOR EFFECTIVE
EDUCATION PROGRAMS
DETERMINE THE NEED
 DEVELOP A PLAN
 CHOOSE A MEDIUM
 BUILD CREDIBILITY
 PROMOTE THE PROGRAM
 PROVIDE EASY ACCESS
 DEVELOP AND STICK TO
THE BUDGET
 PROGRAM EVALUATION

3/12/2016
PLANETARY DEFINITION OF
VOLUNTEERING




ACTIVITY IS UNCOERCED
INTENTION TO HELP
NO PRIMARY THOUGHT OF
FINANCIAL GAIN
WORK NOT PLAY
– IVAN SCHEIER

THREE CIRCLES: THE CLIENT THE
AGENCY AND THE VOLUNTEER
• HOW THEY OVERLAP: PERFECT,
GOOD, GOOD POTENTIAL OR DANGER
ZONE MATCH
3/12/2016
CHANGING STYLES OF
VOLUNTEER
INVOLVEMENT

THE LONG-TERM VOLUNTEER
•
•
•
•

DEDICATION
SELF-RECRUITMENT
SHAPING THE JOB
ACHIEVEMENT AND AFFILIATION
THE SHORT-TERM
VOLUNTEER
• NOT TRUE BELIEVER
• JOB, EVENT, ASKED BY FRIEND
• WELL DEFINED JOB AND
DURATION
• RECOGNITION IMPORTANT
3/12/2016
NEW TYPES OF VOLUNTEERS








3/12/2016
WORKPLACE
RETIREE
ALTERNATIVE
SENTENCING
PROFESSIONAL
EPISODIC
TRANSITIONAL
UNEMPLOYED
STIPENDS
BUILDING VOLUNTEER
RELATIONSHIPS






ASK FOR SUGGESTIONS
AND IDEAS
INVITE VOLUNTEERS FOR
LUNCH
KEEP RECORDS ON
BIRTHDAYS
CELEBRATE EXCEPTIONAL
WORK
SEND COPIES OF GOOD
NEWS
THANK YOU, THANK YOU
3/12/2016
CORE VALUES
AND
MISSION



WHO YOU ARE VS. WHAT YOU DO
MISSION=RESPONDS, SERVES, ACTS,
DELIVERS, OBSERVES
 TO BE THE BEST AT
WHAT YOU DO
CORE VALUES=COMMITMENT TO:
HONESTY, FAIRNESS,
SENSITIVITY,
RESPONSIVENESS,
INNOVATIVENESS,
ACCOUNTABILITY, EFFICIENCY,
PROFESSIONAL
MANAGMENT, QUALITY,
EXCELLENCE
3/12/2016
S TRAGETIC
PRIORITIES FOR ACTION
RESPONSIBILITY
PRIORITIES
FOR
ACTION
NEXT YEAR
NEXT STEPS
SHARED ?
BOARD?
STAFF?
STRATEGIC PLANNING
IN A CAPSULE








WHAT IS THE ESSENCE OF THE
ORGANIZATION?
CORE VALUES
MISSION – WHO IS SERVED?
WHAT DOES THE ORGANIZATION
DO BEST?
STRENGTHS-WEAKNESSES
OPPORTUNITIES AND
CHALLENGES
STRATEGIC OBJECTIVES AND
ACTION PLANS
MONITORING AND EVALUATING
PROGRESS
3/12/2016
CREATING AND ADDING VALUE
IN NONPROFIT MANAGEMENT

HOW DO YOU MEASURE
SUPERIOR
PERFORMANCE IN YOUR
NONPROFIT?

WHAT UNIQUE ACTIVITIES
DO YOU ENGAGE IN?
3/12/2016
WHAT
IS
MARKETING?

THE ANALYSIS, PLANNING,
IMPLEMENTATION AND CONTROL
OF CAREFULLY FORMULATED
PROGRAMS DESIGNED TO BRING
ABOUT VCOLUNTARY EXCHANGES
OF VALUES WITH TARGET
MARKETS FOR THE PURPOSE OF
ACHIEVING ORGANIZATION
OBJECTIVES.

SO – WHAT IS THE ESSENCE OF
MARKETING?
3/12/2016
WHAT IS PUBLIC
RELATIONS?

NOT SIMPLY IMAGE-BUILDING, BUT
A TWO COMMUNICATIONS
PROCESS THAT NOT ONLY
INFORMS YOUR MARKETING
EFFORTS BUT YOUR PROGRAM
DEVELOPMENT EFFORTS.

IT INCLUDES:
•
•
•
•
FUNDRAISING
COMMUNITY AWARENESS
LOBBYING AND ISSUE ADVOCACY
CRISIS MANAGEMENT
3/12/2016
WHAT IS MARKETING?

WHOSE JOB IS IT TO
MARKET?

HOW DO WE KNOW WHO
ARE TARGET MARKET IS
IN A NONPROFIT?
3/12/2016
WANT TO MARKET
– ASK THE RIGHT
QUESTIONS?








WHOM DO I SERVE?
WHAT ARE OUR NEEDS?
CAN I PROVIDE THE QUALITY
NECESSARY TO MEET THOSE NEEDS
COST EFFECTIVELY?
ARE OUTSIDE CONDITIONS FAVORABLE
TO HAVING ME DO SO?
WHAT IS THE MOST CONVENIENT WAY
FOR MY CUSTOMERS TO HAVE ACCESS?
WHAT ARE THE BEST WAYS TO LET MY
MARKET KNOW ABOUT MY SERVICES?
ARE MY MARKETS SATISFIED?
HOW CAN I ADD VALUE OR DEVELOP A
SPECIAL NICHE?
3/12/2016
MARKETING AND MONEY







MARKETING
ANALYSIS
STRATEGY
TECHNIQUE
TARGET
CREATE
DIRECT
COMMUNICATE
MOTIVATE
IMPROVE
3/12/2016
MARKET
POSITIONING



DIFFERENTIATION
COST LEADERSHIP
FOCUS
3/12/2016
THE WRITTEN
MARKETING PLAN





IDENTIFY TARGET AUDIENCE
AND A DESCRIPTION OF
THEIR NEED
DISCUSS PROBLEMS AND
OPPORTUNITIES
LIST MEASURABLE
OBJECTIVES AND
STRATEGIES
PROVIDE A BUDGET
EVALUATION METHOD
3/12/2016
THE FOUR P’S OF
MARKETING




PRODUCT – THE GOOD OR
SERVICE DEVELOPED IN
RESPONSE TO A PERCEIVED
NEED
PRICE – AT WHICH A GOOD
OR SERVICE IS OFFERED.
PLACE – METHOD AND
ACCESS
PROMOTION –
COMMUNICATING TO THE
MARKET
3/12/2016
MARKETING WITH MISSION

CAUSE RELATED MARKETING
• LINKING COMPANY AND
PRODUCT TO AN ISSUE OR
CAUSE SO AS TO
ENHANCE IMAGE

MATTEL + GIRLS, INC.
COCA COLA + BOYS AND
GIRLS CLUB
VENETIAN + GUGGENHEIM
FOUNDATION


3/12/2016
MANAGING MARKETING
NON-PROFITS









EXPANDING SENIOR MARKETS
INTERNATIONALIZATION
TARGET MARKETING BY COHORTS
AFFLUENT MARKETS REDEFINED
NEED TO IMPROVE PRODUCTIVITY OF
ORGANIZATIONS
DIRECT MARKETING
DATA BASE MARKETING
INTERNET MARKETING
ADDING VALUE IS IMPORTANT
3/12/2016
USER ORIENTED MARKETING: TEN
STEPS TO SUCCESS










DELIVER VALUE
CORPORATE COMMITTMENT
MARKET-BASED ORGANIZATION
RESPONSIVENESS
INFORMATION INFRASTRUCTURE
MARKET-BASED COMPENSATION
PROACTIVE MANAGEMENT
QUALITY COMMITTMENT
MASS CUSTOMIZATION
COMPETENCE
3/12/2016
WORD OF MOUTH MARKETING:
TEN RULES THAT RULE










HAVE A GOOD PRODUCT
UNDERSTAND THE 3-33 PRINCIPLE
LISTEN TO INSIDERS
IDENTIFY AND CULTIVATE CHAMPIONS
DIFFUSE ANGRY CLIENTS AND CUSTOMERS
DEVELOP AND USE POSITIVE EMPLOYEE ATTITUDES
EXCEED EXPECTATIONS
SEEK OUT COMPLAINTS
CATCH EMPLOYEES IN EXCEPTIONAL ACTS
KEEP IT SIMPLE (STUPID)
3/12/2016
SUSTAINING GROWTH IN
ASSOCIATIONS AND USER
GROUPS
 FINDING
WAYS TO
DIVERSIFY INCOME
THROUGH NON-DUES
REVENUE
 SELLING PROGRAMS
AND SERVICES
 EDUCATIONAL
PROGRAMS/CERTIFICATI
ON
 CONVENTIONS
 MONTHLY
JOURNALS/VIDEOS
3/12/2016
CHECKLIST FOR
INTERNATIONALISM






ARE CITIZENS FROM FOREIGN
COUNTRIES COMING TO YOUR MEETINGS
OR YOUR WEBSITE?
SIGNIFICANT FOREIGN MARKETS FOR
PRODUCTS OR INFORMATION?
DOES YOUR MISSION INCLUDE SHAPING
PUBLIC ATTITUDES OR HELPING CITIZENS
OVERSEAS?
ARE PROFESSIONALS IN OTHER
COUNTRIES CONTRIBUTING TO
KNOWLEDGE IN YOUR FIELD?
ARE THERE STRATEGIC PARTNERS?
DO YOU HAVE RESOURCES FOR
EXPLORATORY MEETINGS?
3/12/2016
MONEY EXPENDED VS.
DOLLARS RECEIVED
ACCORDING TO JIM GREENFIELD
DIRECT MAIL ACQUISITION
- $1 TO 1.25 PER DOLLAR
 DIRECT MAIL RENEWAL
$.20 PER DOLLAR
 EVENTS-50% OF GROSS
 CORPORATION/FOUNDATIO
N$.20 PER DOLLAR
 PLANNED GIVING $.25 PER
DOLLAR
 CAPITAL CAMPAIGN-$.05 $.10 PER DOLLAR

3/12/2016
FUND RAISING
CHECKLIST









IDENTIFY MISSION AND
FINANCIAL GOALS
DEVELOP LIST OF
PROSPECTS
RESEARCH FUNDING
SOURCES
REMEMBER INDIVIDUALS
BOARD MEMBERS ARE KEY
PERSONAL + PROMPT THANK
YOUS
BE PREPARED FOR VISITS
BELIEVE IN YOURSELF
BEST PROSPECT IS ONE
WHOSE ALREADY GIVEN
3/12/2016
FUNDING SOURCES, STRUCTURAL
CHARACTERISTICS AND MANAGEMENT
REQUIREMENTS









DIRECT VS INDIRECT MARKET
EXCHANGE
SIMILAR VS DIFFERENT
ORGANIZATIONS
EXTENSIVE VS MINIMAL
COMPETITION
FRAGMENTED VS CONSOLIDATED
SOURCES
EXTENSIVE VS RESTRICTED
INTERNAL DISCRETION
CLIENT SERVICES VS. COMMUNITY
CHANGE
HIGH VS LOW RELATIONSHIP WITH
PRIVATE SECTOR
COMPLEX VS. SIMPLE
ORGANIZATIONAL ENVIRONMENT
HIGH VS LOW COMPLEXITY OF
OUTCOME ASSESSMENT
3/12/2016
NEW APPROACHES TO FUNDING



ENTERPRISE ENDEAVORS
TARGET MARKETING
USER-ORIENTED
MARKETING
3/12/2016
FINANCIAL
MANAGEMENT

ACCOUNTING IS
MANAGEMENT:
• CASH RECEIPTS AND
DISBURSEMENTS
• ACCRUAL OR CASH RECORDS
• OTHER JOURNAL ENTRIES
• CLOSING PROCEDURES
• FINANCIAL STATEMENT
PREPARATION
• REVIEW AND ANALYSIS
PROCESSES
• TAX PREPARATION
3/12/2016
FINANCIAL
CONSIDERATIONS

CHART OF ACCOUNTS
• FUNCTIONAL AND NATURAL









ACCRUAL AND CASH BASIS
CASH DISBURSEMENT
PROCESS
CLOSING PROCEDURES
CAPITAL AND OPERATING
BUDGETS
FINANCIAL STMT
PREPARATION
REVIEW AND ANALYSIS
AUDITS VS. REVIEWS
TAXRETURNS
POLICIES AND PROCEDURES
3/12/2016
GAAP DEFINITION OF
NON-PROFIT
RECEIVES SIGNIFICANT
CONTRIBUTIONS FROM
RESOURCE PROVIDERS
WHO DO NOT EXPECT A
MATCHING RETURN
 DOES NOT EXPECT TO
RECEIVE A PROFIT FROM
THE GOODS AND
SERVICES PROVIDED
 HAS NO OWNERSHIP
INTEREST

3/12/2016
AICPA FINANCIAL
ACCOUNTING STANDARDS













CEMETARY ORGS
CIVIC ORGS
FRANTERNAL ORGS
LIBRARIES
POLITICAL PARTIES
PRIVATE AND COMMUNITY
FOUNDATIONS
PRIVATE ELEMENTARY AND
SECONDARY SCHOOLS
RELIGIOUS ORGANIZATIONS
RESEARCH AND SCIENTIFIC
ORGANIZATIONS
SOCIAL AND COUNTRY CLUBS
?? CREDIT UNIONS
?? EMPLOYEE BENEFIT PLANS
??FARM COOPERATIVES
3/12/2016
RECENT
DEVELOPMENTS
FUND ACCOUNTING AND
FUND LIMITATIONS
 NET ASSET MODEL
 FAS-117 ALLOWS
CONSISTENCY BETWEEN
FOR-PROFIT AND NON—
PROFIT FINANCIAL
STATEMENTS
 SOP-98-2 GOVERNS HOW
JOINT COSTS ARE
DISPLAYED

3/12/2016
Information
Technology
Word Processing
 Communications
 Mailing List Management
 Discussion Forums and
Meetings
 Financial Record Keeping
and Analysis
 Research
 Desktop Publishing
 Event and Donor
Management

3/12/2016
Information
Technology: Audiences and
Objectives

Who do want to reach?
–Members, Volunteers,
Donors, Trade Show
Attendees, News Media,
Govt. Officials, Job Seekers,
Prospective Donors

What is your objective?
–New memberships, political
action, education, revenue
development, educational
forum,
3/12/2016
Information
Technology









Develop a strategic and an
operational plan
Select a system to suit your
needs
Automate the Basics
Centralize or Decentralize
The 80% Rule
Create Policies
Build an Office on the Web
Use Outside Resources
Staff and Maintain Infrastructure
3/12/2016
12 WAYS TO IMPROVE ONLINE EFFECTIVENES












TRACK ON-LINE REGISTRATIONS
TRACK HITS
TRACK BROCHURE REQUESTS
TRACK REQUESTS FOR VALUE-ADDED
CONTENT
ANALYZE HITS AND REFERRALS
ANALYZE E-MAILS VS FAX CAMPAIGNS
TRACK WEB SPONSORSHIP AND VIRTUAL
SHOWS
TRACK ON-LINE CUSTER SERVICE VS. 800
NUMBERS
CONSIDER RESTRICTION OPTIONS TO WEB
SITE
ADD NEW FEATURES WEEKLY OR MONTHLY
SELL BANNERS
LINKS ARE IMPORTANT
3/12/2016
Staffing and Human
Resources
Hiring and placement
 Fair and Equitable
Compensation
 Communication Between
Staff, Management and
Volunteers
 Compliance with Laws
 Maintaining and Enhancing
the Organization’s Image

3/12/2016
ADVICE ON HIRING
EXECUTIVE DIRECTORS







MAKE SURE DUTIES ARE
CURRENT
IDENTIFY ALL THE SKILLS
NECESSARY
RANK SKILLS IN ORDER
OF IMPORTANCE
SCREEN RESUMES
PRE-SCREEN CANDIDATES
OVER THE PHONE
PREPARE FOR THE
INTERVIEW
CONDUCT THE INTERVIEW
3/12/2016
GETTING STARTED
LEGAL REQUIREMENTS

ARTICLES OF INCORPORATION
– NAME, DURATION, PURPOSES,
INCORPORATORS, ADDRESS,
DISTRIBUTION OF ASSETS

BYLAWS
– RULES FOR GOVERNING
– FREQUENCY OF MEETINGS, QUORUM
REQUIREMENTS, NUMBER AND TERMS
FOR DIRECTORS, TITLE AND SCOPE OF
AUTHORITY FOR CEO, AMENDMENT
PROCEDURES

IRS TAX EXEMPTION LETTER
– FORM 1023






CLASSES OF MEMBERSHIP
SALES TAX AND POSTAL RATES
SANCTIONS FOR SELF-DEALING
ANTI-TRUST LAWS
DIRECTORS AND OFFICERS LIABILITY
INSURANCE
LOBBYING, LAWSUITS AND AMICUS
BRIEFS
3/12/2016
GETTING POLITICAL
SUPPORT FOR YOUR
CAUSE








ELEMENTS OF
SUCCESSFUL PROGRAMS
IMPORTANCE OF GOOD
DATA
PUBLIC POLICY
ACTIONPLANS
USING TECHNOLOGY
GRASSROOTS ADVOCACY
HOW TO COMMUNICATE?
OUTSOURCING
PATIENCE AND
PERSISTENCE
3/12/2016
SELECTING AND USING
CONSULTANTS







OUTSOURCING
WHAT CAN PRESENT STAFF
DO?
REQUEST FOR PROPOSALS
CONSULTANT CONTRACTS
CONTROLLING COSTS
MONITORING PERFORMANCE
FINAL REPORTS
3/12/2016
SELECTING AND USING
CONSULTANTS







OUTSOURCING COSTBENEFIT
CAST A WIDE NET
DISCUSS INFORMALLY WITH
CONSULTANTS
USE AN RFP OR AN RFQ
INTERVIEW FINALISTS
DELINEATE EXPECTATIONS
MAKE SURE COSTS ARE
CLEARLY STATED
3/12/2016
WHEN DESIGNING AN
EVALUATION KEEP IN MIND









MEASURE OUTCOMES NOT
ACTIVITIES
INCLUDE FEEDBACK
MEASURE IMPROVEMENT
ASK HOW WELL NOT HOW
MANY
TRACK QUALITY AND
PRODUCTIVITY
GATHER AND REPORT
FREQUENTLY
KEEP TOOLS SIMPLE
USE THE BUDGET AS A
MANAGEMENT TOOL
USE BENCHMARKS
3/12/2016
S M A R T OBJECTIVES





SIMPLE STRAIGHTFORWARD AND
CLEAR
MEASUREABLE
ACHIEVABLE
REALISTIC
TIMELY
3/12/2016
WHAT IS
LEADERSHIP?








THINK LONG TERM
SEE THE BIG PICTURE
INFLUENCE BEYOND OWN
BOUNDARIES
EMPHACIZE INTANGIBLES AND
VALUES
CAPABLE OF COPING WITH
CONFLICT
THINK IN TERMS OF RENEWAL
UNDERSTAND INTERDEPENCE
KNOWN FOR BHAG’S (BIG HAIRY
AUDACIOUS GOALS)
3/12/2016
NON-PROFIT
MANAGEMENT ROLES AND
SKILLS


MANAGEMENT ROLES
• INTERPERSONAL
• INFORMATIONAL
• DECISIONAL
MANAGEMENT SKILLS
• TECHNICAL
• INTERPERSONAL
• CONCEPTUAL
• DIAGNOSTIC
3/12/2016
THE MANAGER’S JOB





PLANNING AND ORGANIZING
DECISIONMAKING
LEADING
CONTROLLING
FINANCIAL STABILITY
3/12/2016
EFFICIENCY VS EFFECTIVENESS

EFFICIENCY - MEETING
PREDETERMINED OBJECTIVES WITH
MINIMAL EFFORT, EXPENSE AND
WASTE

EFFECTIVENESS - MEETING
PREDETERMINED OBJECTIVES WHILE
COMPLYING WITH NORMATIVE AND
LEGAL EXPECTATIONS.
3/12/2016
OBSTACLES TO TEAM-BUILDING IN AN
ORGANIZATION




INERTIA
POLARIZATION
DEPLETION
MELTDOWN
3/12/2016
THE BEST TEAMS...






DEVELOP INNATE TALENTS OF
INDIVIDUALS
PLACE PEOPLE IN THE RIGHT ROLES
COMMUNICATE INDIVIDUAL
CONTRIBUTIONS TO MEETING
ORGANIZATIONAL GOALS
MANAGE ALL EFFORTS AS A CREATIVE
PROCESS
USE CONFLICT CONSTRUCTIVELY
INVOLVE DIFFERENT SKILLS, TALENTS
AND PERSONALITIES
3/12/2016
WHAT KIND OF TEAM-MEMBER AM I?
FF
 FT
 QS
 IMP

3/12/2016
WHAT KIND OF A TEAM MEMBER AM I?




FF-FACTFINDER - PROBER,
ARBITRATOR, PRAGMATIST,
PRACTITIONER, RESEARCHER,
JUDGE AND REALIST
FT-FOLLOWTHROUGH-PLANNER,
DESIGNER, REGULATOR, PATTERNMAKER, SYSTEMIZER, THEORIST,
PROGRAMMER
QS-QUICKSTART-CATALYST,
GENERALIST, INNOVATOR,
ENTREPRENEUR, PROMOTER,
IMPROVISOR
IMP-IMPLEMENTOR-BUILDER,
ATHLETE, MANUFACTURER, ARTISAN,
HANDCRAFTER, AGRICULTURALIST
3/12/2016
ASSESSING YOUR LEADERSHIP STYLE



INTEGRITY
DECISIVENESS
DEPENDABILITY
COMMUNICATION
 EMOTIONAL MATURITY
 INDEPENDENCE
DETERMINATION
 COURAGE
AMBITION
 RESILENCY
QUICK INTELLIGENCE
 KNOWLEDGE
JUDGEMENT






VISION
3/12/2016