Questions From Nonprofits ( Volunteers to board leadership)
From interim nonprofit CEO’s transition strategies, charity volunteer non-disclosure agreements, nonprofit CEO review process, to nonprofit leadership and governance, host Julia Patrick and guest host Tony Beall, tackle this week’s questions from nonprofits:
Interim CEO or Board Member: A board in Palo Alto is facing a CEO retirement without a replacement. They’re debating whether to hire an interim CEO or have a board member step in. Tony advises going for an interim CEO if the budget allows. He suggests a minimum of six months for the interim role and emphasizes clear expectations to avoid too many changes during this transition period.
Volunteer NDAs: Charlie from San Antonio, TX, running a Human Services shelter, wonders if requiring volunteers to sign non-disclosure agreements (NDAs) might discourage them. Tony suggests integrating NDAs into the volunteer application process for convenience. He highlights that NDAs can be vital to protect the organization’s interests.
Donor Perspective on Other Nonprofits: An anonymous submission from Chicago describes a major donor asking about donating to another nonprofit. Tony encourages embracing the trust implied by the donor’s question. He advises encouraging the donor to seek similar qualities in the other nonprofit while expanding their philanthropic footprint.
CEO’s Annual Review: An anonymous question from Columbus, OH, addresses who should conduct the CEO’s annual review and how to do it. Tony recommends that the board chair lead the process and suggests forming a smaller committee for efficiency. He emphasizes the importance of a CEO self-appraisal and a committee review to ensure a thorough evaluation.
Navigating Declining Nonprofit Donor Rates!
Insights on the challenges nonprofits face in navigating declining donor rates–a how-to for nonprofits striving to create more meaningful connections with their supporters, with Barbara O’Reilly, CFRE, the founder of Windmill Hill Consulting. Barbara reminds us that, by prioritizing the donor experience and utilizing available technology, nonprofits can better engage with their donors and ultimately make a more significant impact in their communities.
She begins by emphasizing the significance of donor retention rates and the troubling statistic that, on average, 80% of first-time donors do not return. O’Reilly stressed the importance of prioritizing the donor experience, likening it to the customer service provided in the hospitality and retail industries. She explained how personalized communication, onboarding, and a focus on creating a strong partnership can significantly impact donor retention.
Furthermore, Barbara points out the critical role of data, automation, and artificial intelligence in understanding donors and providing tailored experiences. She highlights how industries like retail and hospitality excel in using customer data to enhance user experiences and suggested that nonprofits could benefit from a similar approach.
One of the key takeaways from this insightful conversation was the need for nonprofits to rethink their donor communication strategies. Barbara encourages organizations to conduct regular audits of their communications to ensure they convey a sense of impact and transformation through compelling stories, rather than overwhelming donors with statistics.
In her own words, Barbara highlights the importance of this shift in mindset: “We’ve got to think our mindset around these donors so that it keeps them around longer.”
Reach And Engage Younger Nonprofit Donors!
A discussion focused on generational giving and engaging with younger donors at nonprofits and charities, with special guest Katie Gaston, the Senior Product Marketing Manager at Bloomerang.com.
Katie begins by emphasizing the importance of understanding who your donors are and how to create a more personalized and contextual communication strategy. She discusses the rise of contactless payments and the need for nonprofits to integrate tools like tap-to-pay and QR codes to cater to the preferences of younger donors who are accustomed to digital transactions. Katie stated, “In fact, in Bloomerang, we actually have tools to support the process of surveying and asking for feedback.”
Katie continues by highlighting the significance of mobile-friendly and digital communication. With over 50% of website traffic coming from mobile devices, nonprofits need to ensure that their websites and donation processes are optimized for mobile users. She points out text-to-donate options and other mobile-friendly tools to make giving more convenient.
In terms of engaging younger donors, Katie suggested expanding fundraising strategies beyond traditional galas and considering activities like fun runs, farmers markets, and peer-to-peer fundraising. These lower-barrier entry events not only raise money but also increase awareness of the organization, which can lead to future support. As Katie put it, “Sometimes just having people show up and a larger audience because that barrier to entry is lower is really meaningful, because if more people know about your organization, even if they’re not ready to give now, they may give to you in the future.”
As for future trends, Katie elaborates on the potential role of AI, automation, and ChatGPT in helping . . . . . . . . .
Public Data Access! For The Social Sector
The myths and hurdles of public data access for nonprofits, with details on the newest methods of assessing data to improve the effectiveness and efficiency of nonprofits and funders. An eye-opening interview with David Fox-Estrin, the Partnerships Director at Impala, a tech-for-good startup focused on making data accessible and actionable, especially for nonprofits and social impact organizations.
David, who has a background in both corporate consulting and running a nonprofit, highlights the challenges nonprofits face in fundraising and how Impala aims to address them. Impala offers several products, including Essentials (combining data from sources like Candid, GuideStar, and Foundation Directory Online), Ecosystems (for evaluating philanthropic landscapes), and Paths (for mapping connections to funders).
The conversation explores the concept of data justice, emphasizing the need to make data more accessible, especially for nonprofits in underserved areas. David mentions how Impala encourages transparency and helps nonprofits and funders understand each other better by providing comprehensive data.
They also discuss the potential for collaboration among funders and how Impala’s platform can facilitate this by showcasing commonalities in grant portfolios. The energizing discussion touches on the challenge of changing the culture of secrecy among some foundations and highlights the growing importance of transparency in philanthropy.
Nonprofit Board Orientations! (Launching new board members)
Nonprofit Board orientations and leadership in the nonprofit sector with the Director of New Client Experience and Technical Services at Chazin and Company, Michelle Philo. The conversation covers the importance of properly onboarding new board members to nonprofits and charities and ensuring they understand their roles and responsibilities.
Michelle emphasizes that the onboarding process should be a two-way dialogue, allowing new board members to not only learn about the organization but also to voice their ideas and concerns. She stresses the significance of board members understanding the organization’s financials, strategic plans, and budgeting, as these are key components of their fiduciary responsibilities.
This fast-paced learning session also touches upon the need for board members to familiarize themselves with policies, risk assessments, and conflict of interest guidelines. Additionally, the discussion highlights the importance of using digital tools, like shared drives and dashboards, to facilitate access to critical documents and data for board members.
Throughout the conversation, the hosts, Jarrett Ransom and Julia Patrick, engage Michelle in a thoughtful exploration of how board orientation can enhance the effectiveness of nonprofit boards and ultimately contribute to achieving an organization’s mission and vision.
For more in-depth insights and discussions on nonprofit finance and board leadership, explore the “Counting on Chazin” series on the Chazin and Company website.
Nonprofit Accounting Documentation
The vital role of documentation in nonprofit organizations, providing practical advice and highlights the importance of staying organized and proactive to ensure financial stability and compliance with Beth Farley, CPA from Eide Bailly accounting firm. Beth’s quote underlines the relevance of these principles for nonprofits of all scales “The finance department . . . . . .when you’re talking about the accounting part of an organization, it is absolutely crucial to the organization’s long-term success. . . . . . your programs are hugely important . . . . . . But if you don’t have the backbone of the organization, your finances strong, and the documentation strong, then you will not be able to continue because you’re not going to lose funding over some of these things. And that’s what it really boils all down to. ”
Beth continues by highlighting how accounting firms like Eide Bailly have evolved beyond traditional financial statements and tax returns. Now, they strive to become strategic partners, offering expertise in technology, cybersecurity, compensation analysis, and more. The series emphasized the significance of creating a compliance calendar, which helps organizations keep track of important deadlines and tasks. Beth explains how this calendar should include items like 990 filings, audits, payroll taxes, state charitable registration, and more. She stressed the importance of regular reviews to ensure the calendar remains accurate and helpful.
The discussion also digs a bit into donor documentation and recognition, emphasizing the need to clearly define when a planned gift should be recognized and how it aligns with accounting principles. It was underlined that careful . . . . . . . . .
Nonprofit’s Documentation Best Practices
The importance of clear and organized documentation at nonprofits and charities, emphasizing the need for consistency and accessibility. Beth Farley, CPA and partner at Eide Bailly, joins host Jarrett Ransom for day four of Nonprofit Power Week. The focus of the episode is “Back to Basics,” and Beth’s insights into documenting best practices are invaluable.
Beth discusses She recommends creating a table of contents (TOC) to help organize documents, ensuring that essential information is easily accessible to everyone involved. Beth stresses that documentation should adapt and evolve as an organization grows and changes.
The conversation also touches on the role of automation in documentation and how it can streamline processes and save time. Beth highlights the significance of board involvement in reviewing documentation strategies, as well as the naming conventions for files and folders to maintain consistency.
Beth encourages nonprofits to start organizing their documentation systematically, even if it seems overwhelming at first. She suggests creating folders by fiscal year, designating a permanent file for essential documents, and gradually building a robust documentation system.
The Power Week episode serves as a reminder that while documenting may seem basic, it is a crucial practice that can help nonprofits operate more efficiently, reduce risks, and adapt to their evolving needs.
Avoiding Nonprofit’s Risk With Documentation!
We explore the key topic of reducing risk within nonprofit organizations through effective documentation techniques and systems. Join us as we navigate the world of nonprofit finance, gaining insights into the staff roles within these organizations, the influence of leadership, the importance of compliance calendars, efficient task management, and the significance of clear policies and procedures. You’ll discover how transparency and accurate documentation play a pivotal role in building trust with donors and stakeholders. We’ll also touch upon the ever-evolving landscape of technology and how it’s transforming financial processes within nonprofits. This Power Week session is a comprehensive discussion led by Beth Farley, a seasoned CPA partner at Eide Bailly. She shares her expertise and illuminates the path to risk reduction through proper documentation in the nonprofit sector. Don’t miss this opportunity to enhance your understanding of nonprofit financial management and its critical role in safeguarding organizations.
What Is Critical Nonprofit Info To Document?
Policies and procedures that cover financial and non-financial aspects of nonprofit’s operations. Beth Farley, a CPA and partner at Eide Bailly, discusses the critical roles documentation plays in ensuring accuracy, compliance, and transparency within nonprofit organizations.
One key quote from Beth during the discussion is, “If it’s not documented, it did not happen.” She emphasizes the importance of documenting key information such as nonprofit client numbers, financial data, and procedures. Beth also discusses the three C’s of documentation: concise, correct, and current.
Beth and the hosts jump into topics like the timing of documentation updates, the involvement of various team members in the process, and how documentation can help mitigate fraud risks. They also touch upon the need for consistency and accessibility in documentation practices.
Beth suggests starting with the riskiest areas and gradually documenting processes, making it a priority even if resources are limited. The conversation concludes with the idea that documentation should also play a role in performance reviews to ensure accountability and clarity of roles within the organization.
Documenting Your Way To Success For Nonprofits!
The focus of the episode is on the importance of documentation and how it contributes to a nonprofit’s success. Part one of a five-part series dedicated to nonprofit documentation and accounting, with special guest Beth Farley, CPA from Eide Bailly.
Beth emphasizes the significance of clear documentation, professing how it helps prevent errors, misstatements, and even fraud. The discussion highlights that documentation isn’t just an accounting concern—it encompasses various aspects of nonprofit operations, from financials to compliance and IT security.
This first episode conversation touches on topics such as compliance calendars, the impact of changing funding sources, and the need for ongoing evaluation and adaptation of accounting processes. Beth stresses that nonprofits need to be proactive in documenting their financial processes, rather than waiting for an audit or a specific event.
Throughout each episode, Beth and the hosts will dive deeper into topics such as setting up documentation protocols, staff and board alignment, and effective monitoring. Nonprofit leaders and professionals are encouraged to watch them all for a wealth of practical advice and expert guidance.
Nonprofit’s Questions (board onboarding and recruitment)
Insights on nonprofit board treasurer selection, post-event practices for charities, board onboarding, and nonprofit board recruitment. Host Julia Patrick welcomes Muhi Khwaja, one of the trainers at the Fundraising Academy at National University and Co-founder of the American Muslim Community Foundation (AMCF).
They begin by discussing the importance of finding the right treasurer for a nonprofit board. Muhi emphasizes the need to look for candidates with experience in nonprofit finance, compliance, and audit procedures. He suggests checking if potential treasurers have filed Form 990s, worked with nonprofits before, and have a CPA background.
Next, they address best practices for post-event activities, particularly after a gala. Muhi highlights the significance of stewardship in the donor cycle. He recommends sending personalized thank-you notes or emails to event attendees and donors, conducting surveys to gather feedback, and promptly following up with attendees and potential donors to build meaningful relationships.
Muhi also shares insights into onboarding new board members. He emphasizes the importance of a structured orientation process and discusses AMCF’s practice of having annual meetings and strategic planning sessions to reinforce board members’ roles and responsibilities.
Julia and Muhi then explore a unique question about whether the CEO or Executive Director of a nonprofit should have a vote on the board, agreeing that it’s generally not advisable for the CEO to have voting power on the board to maintain a clear separation of powers and avoid potential conflicts of interest.
The conversation shifts to AMCF’s current board recruitment efforts. Muhi explains that they are actively seeking board members with specific skill sets, such as marketing, philanthropy, and . . . . . . . . .
The Psychology Of Nonprofit Events
Understanding the psychology of nonprofit events and how to leverage technology to enhance gatherings so they engage attendees on a deep emotional and intellectual level with the president of Utopia Experience, Joey Goone . By focusing on content, connection, and community and using technology strategically, nonprofits can create events that leave a lasting impact and foster longer-term relationships with both established and new supporters.
For nonprofits, Joey focuses on the “Three C’s Model”: Content, Connection, and Community.
Content: Joey stresses that events should offer valuable and unique content that goes beyond what attendees can easily find elsewhere. This content should aim to educate and inspire participants, making the event more than just a social gathering.
Connection: To create meaningful connections among attendees, Joey shared a creative approach. At one event, they color-coded bid paddles and organized attendees into small groups. These groups were guided through different exhibit stations, where they watched videos and heard stories about the nonprofit’s impact. This strategy encouraged emotional connections among attendees, fostering a sense of community.
Community: Building a sense of community is a central theme throughout this discussion. Joey emphasizes that events should go beyond individual connections and focus on creating a larger sense of belonging and solidarity. This often involves connecting newcomers with long-time supporters and encouraging them to engage with each other.
Joey also took the time to highlight the importance of leveraging technology effectively during events. For instance, using QR codes to gather information from attendees in real-time, allowing for personalized follow-up communication based on attendees’ preferences and history with the nonprofit.
This is a truly insightful learning . . . . . . . . .