Nonprofit Capacity Conference

1. Nonprofit Capacity Conference Embracing Best Practices with the Standards for Excellence Institute

2. America’s 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, America’s 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.

3. Nonprofits 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

4. Competition Among Nonprofits • Funding from all sources • Volunteers • Staff • Board members

5. Public Becoming More Sophisticated Many donors and the public are concerned about more than simply program administration and fundraising ratios

6. Greater Scrutiny • Vicious cycle of lapses and increased regulatory/legal scrutiny • Increased consumer expectations and sophistication

7. Others 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?

8. Websites 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

9. IRS 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_practices.pdf

10. IRS 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

11. This 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.

12. Our 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.

13. The Standards For Excellence Program • The Standards for Excellence code • Resources and Training • Voluntary Accreditation • Educating the Public

14. Program Delivery • Membership • Licensed Consultants • Replication Partners

15. Membership 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

17. Standards for Excellence Replication Partners 2014

18. The Standards for Excellence Code • The code provides a framework and step-by-step guidelines to achieve a well-managed and responsibly governed organization.

19. Self Assessment

20. Mission and Program • Defined Mission Statement • Evaluation • Program Service Standards

21. Governing Body • Roles and Responsibilities • Board Composition • Board Conduct

22. Conflict of Interest • Disclose Everything • Define Interested Parties • How Decisions Are Made? • Conflict of Interest Policy • Conflict of Interest Statement • Disclosure Forms

23. Case Study

24. What 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 organization’s 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.

25. Human Resources • Personnel Policies • Volunteer Policies • Employee Evaluation • Employee Orientation

26. Financial and Legal • Budgets • Audits • Financial Reports • Financial Impropriety • Written Financial Policies • Legal Compliance

27. Case Study

28. What 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.

29. Openness Annual Report: • Mission • Program Report • Basic financial data • List of board members • List of key staff

30. Fundraising • Fundraising Activities • Donor Relations/Privacy • Acceptance of Gifts • Fundraising Personnel

31. Public Affairs and Public Policy • Public Policy Advocacy • Public Education • Promoting Public Participation

32. Case Study

33. How 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 organization’s office or in front of its office building? • That she plans to give the organization’s 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 organization’s 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 organization’s headquarters? • She plans to remain on the board during your campaign?

34. Standards 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 organization’s 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

35. Sneak Peak Embracing Best Practices in Nonprofit Management and Governance Secondedition,2014

36. Standards 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

37. New Benchmarks in Version 2.0 • Strategic Partnerships • The Board’s 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

38. Providing the Help You Need • Educational Resource Packets • Educational Programs • Webinars • In Person • One-on-one technical assistance • Licensed Consultants

39. Accreditation 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.”

40. Accreditation 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

41. Other 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

42. Other 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

43. What 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 organization’s work plan • Get your board and staff involved in embracing best practices

44. Questions and Answers

45. Contact Information Amy Coates Madsen Director, Standards for Excellence 1500 Union Avenue Suite 2500 Baltimore, MD 21211 acmadsen@ standardsforexcellenceinstitute.org