1. Vision And Mission
2. A Plan
3. Active Board Of Directors
4. Strong Leadership
5. Qualified Staff & Organization
6. Dedicated Volunteers
7. Adequate Funding
8. Strong Marketing
9. Systems And Procedures
10. Facilities And Equipment

The Basic Requirements?

1. A current mission/vision statement
2. A current strategic plan (next 3 to 5 years)
3. A current goals & objectives/operating plan (next year)
4. The right people (active) on your board
5. A current organization chart
6. Current staff and volunteer job descriptions
7. A current recruiting plan
8. A fundraising plan
9. A marketing plan
10. An audit & necessary systems and procedures

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.................FUNDRAISING....................

FUNDRAISING

DO YOU KNOW?

What you must do first before you begin fundraising?

1. Vision, Mission, Goals
2. Strategic plan
3. Marketing plan and Brand identity
4. Case for giving (why is the money needed and how will it benefit the community)
5. Board of Trustees or Directors

The last item is critical. The Board is your sales force; they provide leadership gifts, solicit other affluent people in their network, open doors, make calls, get appointments, etc.)

This is especially true for new non-profits. Initially (for up to 3 years), you have to raise the money from the people you know and from the people who know the people you know.

Different types of Gifts?

1. Cash – credit card, check, cash
2. Pledges – current year or over time
3. Gifts in kind that will be retained - food, furniture
4. Gifts in kind that will be sold - silent auctions, etc.
5. Saleable assets - stock, cars, etc.

Different types of Funds?

1. Operating – current use, goes into the annual budget
2. Endowment – goes into an investment fund (the earned interest, not the gift itself, is spent)
3. Capital Campaign – in addition to normal fundraising and for a special purpose or need, such as a building

How to raise funds?

1. Find likely donors, call, write proposals.
2. Conduct an annual fund raising mailing.
3. Launch an annual telethon.
4. Hold an annual fund raising event.
5. Make special efforts to develop major donors.
6. Consider planned giving and capital campaigns.
7. Install or increase some fees.
8. Evaluate social entrepreneurship.

Different types of Donors and their Motivations?

1. Individuals
2. Foundations
3. Corporations

Most money comes from INDIVIDUAL DONORS. They may be:

i. SMALL GIFT DONORS who are motivated by a desire to:
• fulfill social obligations
• feel good about themselves
• achieve social benefits

ii. MAJOR GIFT DONORS who are motivated by a desire to:
• make a difference
• Leave a legacy
• teach social values

Major gift donations come from assets, not income.

FOUNDATIONS are motivated by ideas or objectives. They will fund your project only if your need matches with foundation objectives, which can be found on their website or via a foundation directory.

CORPORATIONS are motivated to make investments in their future that link to current business objectives. Again your need must match their current objectives.

How to find donors?

You must find out: “Who has the money and is willing to donate it to my cause"

How do you find them?

1. One Degree of Separation (Make list of those you already know)

2. Two Degrees of Separation (Ask those you already know about who they know with emphasis on those people or organizations that might be interested in your cause. 80% OF YOUR GIFTS WILL COME FROM TWO DEGREES OF SEPARATION!

3. Market Research (The purpose is to find out who endorses the kind of services that you provide. Also remember the 100:3:1 rule → 100 calls result in 3 warm and fuzzys and in one gift)

• Check www.grants.gov for Government Grants

• Check, fee-based, Online Grant Directories, such as,
i. guidestar.org $50 per month
ii. fic-ftw.org $300 per year
iii. Fdncenter.org $20 to $149 per month

• Phone Book Method (look for The Texas Foundation Directory, Fortune 500 list, local business journals, society pages, etc.)

Create a relationship database to systematize your donor search.

How to ask for money?

1. Personal solicitation
2. Solicitation letter
3. Written proposal
4. Mass media

1. PERSONAL SOLICITATION
. Prepare and bring written proposal
. Establish trust - discuss links, common values (good research is critical!)
. Make a strong case, tell story that describes need
. Ask for specific amount
. Maintain utter silence until donor responds
. If "Yes" - thank donor, agree to next step
. If NOT yes - listen to objections, reflect back to donor, ask permission to explore how to overcome objections together, leave.
. Follow up with gift confirmation letter, pledge form, or arrange a return date to address objections and restate the ask, if needed.

2. SOLICITATION LETTER
. 1 to 2 pages long; unique, eye catching, professional, and related to tone of organization.
. Should cover the following topics in one paragraph each:
a) Background - personal link to donor and your "greater good"
b) Need - include tangible example, emphasize impact, benefits that motivate this donor
c) Ask - specific amount
d) Summary Paragraph - recap reason for existence, how donor can help create greater good for society

3. WRITTEN PROPOSAL - such as a grant request
. Make preliminary inquiry if necessary
. Read request for proposals (RFP) guidelines carefully. Do not deviate.
. Tailor proposal to donor's needs through sufficient research
. Proposal should be eye catching, professional, related to tone of organization, polished. Be unique! It should contain:
a) Executive Summary - sound bite. Write last and recap.
b) Background - history, vision, brand, greater good. Be concise and compelling.
c) Need - Case Statement. Include tangible examples, impact, benefits that address motivations of donor.
d) Ask - Specific Amount.
e) Budget - specific costs related to request; how gift fits into overall financial picture. Place gift in perspective.
f) Summary Paragraph - recap reason for existence, how donor can help create greater good for society.

. Include cover letter, other materials that will help case.
. Keep copy of everything sent.

4. MASS MEDIA - Direct Mail, Retail Conduits, Internet, etc.

How to thank the donors?

Remember The Rule of 7 or More “Thanks”

. Higher power thank you (trustee)
. Thank you from the ultimate beneficiaries
. Update on your organization
. Press release
. Newsletter listing
. Plaque or scroll
. Recognition in other publications
. Photo
. Donor recognition events
. Holiday cards
. Important personal events such as birthdays
. Sympathy and get well cards
. National Philanthropy Day
. Thank you lunch or dinner

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.......................PLANNING........................

PLANNING

DO YOU KNOW?

Why develop a plan?

If you don’t know where you wish to go, any road will take you there
1. Improve performance
2. Solve major organizational problems
3. Survive - even flourish - with less
4. Build teamwork and expertise
5. Stimulate thinking and clarify future direction
6. Influence rather than be influenced
7. Meet requirements of others
8. It is a natural way of doing business

What is a strategic plan?

Developing a strategic plan involves finding the best fit between three intersecting circles:
1. Mission and Purpose(What do you intend to do?)
2. Opportunities & Threats (What is needed & feasible in your service area?)
3. Strengths & Weaknesses (What are you capable of doing?)

Opportunities and Threats come from a review of forces outside the organization, such as
• Needs of customers & other stakeholders
• Competitors & allies
• Social, economic, political & technological factors

Strenghts and Weaknesses are a result of forces inside the organization, such as
• Resources
• Capabilities
They should always be assessed relative to your competitors.

What should be included in a strategic plan?

1. MISSION STATEMENT
The organization’s reason for being, its purpose. What it intends to do. It should take no more than 10 or 15 seconds to say, but will stimulate the response, “tell me more”. Will fit on a tee-shirt or the back of a business card.

2. ACCOMPLISHMENTS
Significant accomplishments of the organization in the last year or two.

3. VISION
A word picture of how the organization will be at the end of the planning period when the goals have been achieved as a result of accomplishing the objectives.

4. GOALS & OBJECTIVES
GOALS: Broad statements of purpose toward which the organization is directed to achieve the mission. The nonprofit should have only a few goals (4 or 5 at most).
OBJECTIVES are statements defining the action needed to achieve a goal. Usually there are several objectives required to meet each goal. They should be stated in measurable terms and provide the “what, when and who”.

5. ACTION CALENDAR
The Objectives put in chronological order and what is it going to cost in terms of money and people.

6. FINANCIAL REQUIREMENTS
a projected income statement for each of the years of the planning period.

7. APPENDICES
Other information as needed for clarification in special areas.

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.....................GOVERNANCE......................

GOVERNANCE

General management structure?

BOARD (Governs)

E.D. (Manages)

STAFF (Implements)

Board - Staff Responsibilities and Relationships?

The following list contains 40 different activities. The first letter represents primary responsibility (S = Staff; B = Board; J = Joint)

PLANNING
S 1. Direct the process of planning
J 2. Provide input for long range goals
B 3. Approve long range goals
S 4. Formulate annual objectives
B 5. Approve annual objectives
S 6. Prepare performance reports on achievement of goals
J 7. Monitor achievernent of goals and objectives

PROGRAM
S 8. Conduct survey of community and/or constituent problems
S 9. Determine fees for a class
S 10. Plan program schedule
S 11. Train volunteer leaders
B 12. Evaluate programs
S 13. Maintain program records; prepare program reports

FINANCE
S 14. Prepare preliminary budget
B 15. Finalize and approve budget
S 16. See that expenditures are within budget daring year
B 17. Solicit contributions in current support and/or capital campaign
S 18. Organize campaign for funds
B 19. Approve expenditure outside authorized budget
B 20. Ensure annual audit of agency

PERSONNEL
B 21. Employ Chief Executive Officer (or Executive Director)
S 22. Employ other staff
S 23. Direct work of staff
S 24. Conduct performance review with agency program director
B 25. Decision to add staff
S 26. Settle discord among staff

COMMUNITY RELATIONS
B 27. Interpret agency to community
S 28. Write news stories
J 29. Provide agency linkage with other community organizations

BOARD / COMMITTEE
B 30. Appoint committee members
B 31. Call committee chairperson to urge him her into action
J 32. Promote attendance at board/committee
B 33. Recruit new board members
J 34. Plan agenda for board meeting
S 35. Take minutes during board meetings
J 36. Plan and propose committee organization
S 37. Prepare exhibits, factual material and proposals for board and committees
B 38. Sign legal documents
S 39. Follow up to ensure implementation of board and committee decisions
B 40. Settle clash between committees

Types of Boards?

All legally incorporated nonprofits must, by law, have a governing board.

1. GOVERNING BOARD
Board fund raises, sets policy
Healthy division of responsibility between board & staff

2. BOARD OF TRUSTEES (REGENTS, GOVERNORS, DIRECTORS)
Same responsibilities as governing board
Found in academics, park districts, libraries, hospitals, etc.
Sometimes elected or appointed.

3. ADVISORY BOARD
Does not set policy; does not vote but provides counsel to staff/board
Use to move "deadwood" of governing board
Use to provide credibility to agency: "name" members
Doesn't meet, no responsibilities

4. AUXILIARY (DEVELOPMENT) BOARD
Does not set policy; does not vote
Usually a fundraising entity
Sponsors benefits, etc.

5. HONORARY BOARD
Does not set policy; does not vote
Use to provide recognition to past board members
Use to move "deadwood" of governing board
Does not meet; no responsibilities
May be involved in fundraising events

6. JUNIOR BOARD
Gets younger people involved
Usually fundraising entity: benefits, etc.
May serve as source for governing board members

Typical Standing Committees?

1. Executive
2. Finance (budgeting, fundraising)
3. Planning, long-range/strategic
4. Recruitment/training
5. Nominating
6. Constituency/client relations

What board members bring to the job?

1. Expertise in a variety of technical areas for which the organization couldn't pay
2. The sanction and viewpoint of various external publics and stakeholders
3. Knowledge of the community and of stakeholder groups
4. Continuity of policy and program in the face of staff turnover
5. The ability to be a spokesperson for the organization
6. Influence to attract resources: Financial, human and public
7. Objectivity regarding agency operations: the capacity for critical review
8. Ability to affect change in the organization
9. Collective and individual wisdom

Legal responsibilities of nonprofit boards?

1. DUTY OF CARE
Level of competence that is expected of a board member; it is commonly expressed as the duty of “care that an ordinarily prudent person would exercise in a like position and under similar circumstances.” This means that a board member has the duty to exercise reasonable care when he or she makes a decision as a steward of the organization.

2. DUTY OF LOYALTY
Standard of faithfulness; a board member must give undivided allegiance when making decisions affection the organization. This means that a board member can never use information obtained as a member for personal gain, but must act in the best interests of the organization.

3. DUTY OF OBEDIENCE
Requires board members to be faithful to the organization’s mission. They are not permitted to act in a way that is inconsistent with the central goals for the organization. A basis for this rule lies in the public’s trust that the organization will manage donated funds to fulfill the organization's mission.

A BOARD MEMBER NEED NOT FEAR LIABILITY AS LONG AS ACTIONS AND DECISIONS ARE:

1. RESPONSIBLE AND MADE IN GOOD FAITH
Attend meetings; insist they be meaningful; participate fully
Know bylaws and keep informed re: operations
Ensure thorough record keeping re: board decisions
Ensure statutory requirements are met: IRS, etc.
Avoid any and all conflicts of interest
Demand annual financial audit
Adopt and follow sound business practices and policies
Know federal & state regulations re: duties of board members and operations of nonprofit agency

2. MADE IN LIGHT OF AGENCY'S BEST INTEREST

THE REASONABLY PRUDENT BOARD MEMBER AVOIDS:

1. Mismanagement: taking improper actions, misusing funds, not complying with federal and state regulations

2. Non-management: not taking action at all; violates principle of good faith

3. “Self-dealing": making decisions that promote one's own personal financial interests.

CONSIDERS PURCHASING "DIRECTORS & OFFICERS" LIABILITY INSURANCE

1. Provides protection against lawsuits

2. Even when State's laws provide protection, agency may still have to defend itself and its' directors if a lawsuit is brought against it

Basic Responsibilities of the Board – the 3C’s?

1. CARE

2. COMMITMENT (LOYALTY)
3G’s: Give, Get or Get Off
This means that a Board member should either give money, get one or more significant others to do so… or get off the Board.

3. CONTINUITY
The third adds a dimension of responsibility for self-renewal and the development of future leadership in the word “Continuity.” The Board, actually the entire organization including staff and volunteers, should develop leadership two-deep and, preferable, three-deep by taking people “through the chairs.”

Financial Responsibilities of the Board?

The Board is responsible and accountable for the financial health of the nonprofit organization.

“The three R’s”:
1. Records. Ensure that financial records are kept

2. Reliability. That they reliably reflect the financial operations

3. Risk. That the amount of risk is within tolerable limits

Risk is the possibility that the organization will not:
• Achieve its goals
• Operate effectively and efficiently
• Protect itself from loss
• Provide reliable financial data
• Comply with laws

How to manage risks through Internal Controls?

EFFECTIVELY CONTROLLING RISKS IS A BALANCING ACT”
There is a myth in all organizations about financial risk: that the accountants and the auditors have all those bases covered and others don’t have to concern themselves with it.

“Balancing risks and controls” - The main issue is not accounting or even risk; it is maintaining an effective balance between the two.

Excessive Risks
• Loss of assets
• Poor business decisions
• Non-compliance
• Regulations
• Public scandals

Excessive Controls
• Bureaucracy
• Productivity
• Complexity
• Cycle time
• Non value-added activities

INTERNAL CONTROLS are used as a process effected by the governing board, management and staff designed to provide reasonable assurance regarding the achievement of objectives in:

1. Effectiveness and efficiency of operations

2. Reliability of financial reporting

3. Compliance with applicable laws and regulations

INTERNAL CONTROL TOOLS … There are five tools the Board should be aware of for effective Internal Control.

1. CONTROL CONSCIOUS ENVIRONMENT
• Communication of policies
• Zero-tolerance of fraud and conflicts of interest
• Awareness of responsibilities
• Documentation of department policies
• Training
• Performance reviews
• Disciplinary action
• Monitoring

2. SEPARATION OF DUTIES
• 5 Steps in Financial transactions: 1. Initiating, 2. Authorizing, 3. Recording, 4. Reconciling and 5. Controlling
• Ordinarily, the same person should not do two of them. For example, the person who prepares or signs the checks should not also reconcile the bank account!

3. CONTROL OVER ASSETS/RECORDS

4. MONITORING

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......................MARKETING..........................

MARKETING

How to build a Successful Marketing Plan?

1. Define your marketing PURPOSE; i.e., what do you want to accomplish?

2. Define your TARGET AUDIENCE and their motivation

3. Identify TRENDS and/or outside influences

4. Define your COMPETITION - How do you compare with competing organizations?

5. Define your COMPETITIVE ADVANTAGE - What differentiates you from competition?

6. Develop your MESSAGE(s). Make sure the message is consistent in all literature, presentations and personal discussions (branding).

7. Select communication MEDIA to reach your target audience.

8. Understand your expenses and BUDGET restraints

9. COMMUNITCATE, COMMUNICATE, COMMUNICATE within your budget constraints

10. MEASURE rate of success or growth through timely benchmarks

Typical target markets?

1. Clients / Beneficiaries

2. Donors

3. Volunteers

Implement your marketing plan?

1. ADVERTISING
• Purchased – Brochures and flyers, yellow pages, journals, direct mail, email, billboards, newspapers, radio, TV
• Fixed – frontage signs, vehicles, interior posters, logos
• Free – Speaking engagements (community, local groups), local newspaper articles, church bulletin boards, booths at local fairs

2. TRADESHOWS

3. WEBSITE

4. COORDINATED ACTIVITY WITH OTHER AGENCIES

Implement your advertising plan?

1. Who is the audience?

2. What is the message? … stress benefits to your audience i.e., “what is in it for them”

3. How to deliver the message? … free vs. purchased advertising channels

4. When is best time to send message?

5. Where do we send message?

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..................HUMAN RESOURCES.................

HUMAN RESOURCES

How to build Leadership skills?

1. Create a vision and a set of values for your organization.

2. Communicate your vision, values & your plan relentlessly.

3. Use all the tools at your disposal to align people to your vision; connect their success to the organization’s.

4. Cultivate a sense of urgency and the need for speed.

5. Empower action and eliminate boundaries.

6. Create a culture of openness right from the start.

7. Be present.

8. Know your organization; understand its drivers.

9. Motivate, energize reward quickly.

10. Seek help; be open; be willing to change.

How to build Management skills?

1. Start with a well prepared, well communicated strategic/business plan.

2. Prepare job descriptions.

3. Establish policy and procedures.

4. Evaluate performance.

5. Reward and discipline quickly.

6. Delegate effectively.

7. Organize committees/teams where practical.

8. Communicate organization needs/results often.

9. Manage difficult employees immediately.

Major Skills Areas?

1. ORGANIZATIONAL EFFECTIVENESS
• Visioning Process
• Organizational Diagnosis
• Organizational Design
• Group Dynamics
• Team Building
• Organizational Troubleshooting
• Group Sensing
• Work Process Design/Redesign
• Coach/Mentor Leaders
• Time Management
• Personality Testing
• Effective Communications

2. STAFFING
• Executive Director Hiring
• Recruitment
• Employment
• Interviewing
• Testing/Skills Assessment
• Succession Planning

3. POLICIES AND PROCEDURES - EMPLOYEE HANDBOOKS
• Discipline, Grievances, Termination
• Overtime, Vacations, Leaves
• Diversity, Equal Opportunity
• Conflict Resolution
• Employment Practices

4. TRAINING
• Needs Assessment
• Program Design
• Training Delivery
• Evaluations

5. SALARY AND BENEFITS
• Survey Design
• Basic Compensation Plan Design
• Benefits Design and Implementation
• Performance Management System

Where to find volunteers?

1. Personal Networks
2. Leads from allied organizations
3. Professional Societies and Associations
4. General Public Outreach
5. Speaking Opportunities
6. Organizations Web Site
7. Houses of Worship

How to recruit volunteers and staff?

1. Collect facts & figures based on the ‘needs assessment’
• Do you have a complete listing of volunteers and what committees they support ?
• Do you have an inventory of current skills and areas of expertise for each volunteer?
• Do you have a list of skills/expertise required ?

2. Identify specific skills and specialties you need

3. Develop job descriptions - narrative with explanations to provide additional context

4. Develop plans to identifying prospects/candidates

5. Recruit

Why people volunteer?

1. A belief in the organization’s cause and a desire to help.
2. A strong sense of community.
3. A need to participate in a meaningful activity.
4. A desire to learn or develop a specific skill.
5. A desire to put an untapped skill to use.
6. A need for reward and recognition.
7. A desire to interact with others.