erik – Page 36 – The Healthy Non-Profit

Obamacare and your non-profit: Part Two

September 26, 2013 erik Uncategorized

On Monday of this week, I blogged about the Affordable Care Act (ACA) and what it might mean for non-profit organizations including those that have fewer than 50 employees and don’t think this legislation applies to them. At the end of my post, I asked a few questions as I always do. Within 24 hours, one person did weigh-in and others sent me direct emails. So, I decided to share that expert feedback with you today.

Feedback from a federally qualified healthcare center

The following is a comment from Rose Reinert who is a community outreach liaison from a healthcare non-profit in my hometown of Elgin, Illinois. I’m sharing it here because I know many of you don’t get an opportunity to loop back around to former posts to read the comments.

Great post Erik! As you know, I work as Community Outreach Liaison for an area Federally Qualified Health Center that meets the medical and dental needs of all, regardless of ability to pay, and I can say there are a lot of changes coming. It reminds me of when we used to play hide and seek and scream, “Ready or not! Here I come!” In this case, we have to make ourselves ready, and there are a lot resources to do so.

I have also found a lot of confusion surrounding the Affordable Care Act. Having said that, our organization, Greater Elgin Family Care Center has received federal and state funding for In Person Counselors who can assist in education and enrollment.

If anyone is in the Greater Elgin area and would like to learn more about the Affordable Care Act, please let me know. We can come to you to give talks to your staff, your clients, or any one who might want to learn more!

Rose Reinert, rreinert@gefcc.org

Feedback from an HR professional

The following is an email from a former volunteer and friend of mine who is a human resources professional. Her comments reference resources she recently blogged about. (I should note that she is one of my favorite HR bloggers and I subscribe to her site) If you want to check out her blog, click here to visit her site which is titled “Don’t bite the apple . . . Work is not a fairytale”.

Here is what she said in her email:

Erik,

Hi there, I hope all is well. Great Article on Obamacare. I didn’t want to post my blog to yours and some of my information doesn’t apply. I just wrote a post on the notices with a link to the DOL approved notices.

ALL businesses subject to FLSA (which is pretty much everyone) has to send notices to employees to tell them if they are or are not providing insurance by October 1st. It has to go to ALL employees f/t, p/t and even if not on insurance. It’s a great thing to post about and provide the links. The first page of the notices explain to the employees how to go out to exchanges and look at healthcare. It also notifies people that if they buy from there and the employer pays part of the premium they can lose their match.

Feel free to take anything you’d like out of the post and if you need anything else, I’d be happy to help. I have access to a lot of info through SHRM.

Have a great day,
Denise

Feedback from an insurance professional

Dan Walter is a board member for my local United Way and he is a partner and senior vice president for Lundstrom Insurance. After reading Monday’s blog post, he sent me a guest commentary he recently wrote for The Daily Herald newspaper.

Here is his article about the Affordable Care Act:

The Affordable Care Act (ACA) is about to enter its most far-reaching phase. In 2014, the ACA mandates that nearly all citizens purchase qualifying health insurance or pay a penalty. Guaranteed insurability will provide access to health insurance coverage regardless of health history. Health plans must accept pre-existing conditions that might have been denied or limited under the present rules.

The Health Insurance Marketplaces, also known as the public Exchanges, are scheduled to be operational on October 1^st, with coverage that can be effective as soon as January 1, 2014. Rather than create its own exchange, Illinois chose to partner with the exchange established by the federal government. Illinois consumers will have access to six carriers, far fewer than originally anticipated.

By October 1^st of this year, most employers are required to distribute a notice to every employee informing them about the Health Insurance Marketplace. The Marketplace/Exchange will provide access to private health insurance plans as well as certain government-based health plans like Medicare and Medicaid. Also, the public Marketplace/Exchange is the only place an individual can access premium and cost-sharing subsidies. Premium subsidies are available on a sliding scale up to 400% of the federal poverty level (FPL) and consider the entire household income for eligibility. Cost-sharing subsidies help offset high out of pocket costs for people with incomes up to 250% of the FPL.

Insurance will continue to be available through brokers and carriers without going through the Marketplace. Brokers will have access to many other plans and other carriers, as well as those on the Marketplace/Exchange. Some carriers like Blue Cross Blue Shield of Illinois have also created their own private health insurance exchanges which brokers can access on behalf of their clients.

New ACA Fees and taxes will also go into effect in January. Two of these new costs are the Health Insurer Fee and the Reinsurance Fee. Starting at $8 Billion in 2014, the Health Insurer Fee will apply to health insurers offering individual coverage and fully insured group plans. The tax is allocated among health insurers based on relative market share. By 2018 this tax will have grown to $14.3 Billion.

The Reinsurance Fee is scheduled to be in effect for a three year period, decreasing over that time from a starting point of $5.25 per person, per month and applies to individual coverage and fully insured group plans, as well as self funded plans.

Combined, these two fees will add an estimated 3-4% to the premium. The amount will vary based on the number of people covered and a formula applied to the carrier’s net premium for the prior year.

In July of this year it was announced that the penalties and reporting requirements of the so-called “Employer Mandate” would be delayed to 2015. This portion of the law affects businesses with 50 or more full time equivalent employees and obligates them to offer coverage that meets certain standards of coverage and premium affordability. Not doing so will risk fines ranging from $2,000 per full time employee, to $3,000 for each full time employee who obtains a subsidy on the government Marketplace/Exchange. Other requirements and timelines of the ACA remained intact.

This is only a brief summary of some key points of ACA. If this sounds confusing or complex, it reinforces why individuals and businesses should be very discerning about ACA related information. Be sure to identify whether the information you rely on applies to individuals, small or large employers, and even whether it applies to your state or not. Obtain good counsel and guidance to help you understand your choices as well as your compliance obligations and potential penalties.

The impact of ACA is far reaching. With appropriate guidance, you will navigate it just fine.

My final thoughts on this issue

If you think your non-profit won’t be impacted by ACA, you are most likely wrong. At a minimum, this legislation will get your employees talking about healthcare benefits in your workplace. It would be wise to read up on ACA, talk to your insurance people, and be prepared to talk intelligently with your employees about this issue if and when questions arise.

This blog thread appears to have resonated with DonorDreams readers. Do you have more questions or comments? If so, please use the comment box below to share your thoughts and experiences.

Erik Anderson
Founder & President, The Healthy Non-Profit LLC
www.thehealthynonprofit.com
erik@thehealthynonprofit.com
http://twitter.com/#!/eanderson847
http://www.facebook.com/eanderson847
http://www.linkedin.com/in/erikanderson847

The truth about your agency’s budget versus its mission

September 25, 2013 erik Uncategorized

budget1 Full discloser . . . I went out for a few glasses of wine on Tuesday night with a non-profit friend and got back home a little late at night. So what? Who cares? Well, I need to be up and on the road at 5:00 am to visit an out-of-state client, which means I needed to write my Wednesday blog post on Tuesday night. Oooops! So, I’m heading to bed in the next few minutes and wringing my hands about not writing something in the morning. Luckily, my friend said something provocative over a glass of wine and that will the be center of today’s post.

I can see that you’re now curious. 😉

OK . . . so, you’ve probably figured out that we were more than one glass of wine into the evening when I had my epiphany . Regardless, I think his point is still provocative. He said . . .

“For non-profit organizations, it always comes down to the budget in the final analysis.”

I can already see that some of you are saying, “Duh! Really, Erik? How much wine did you drink last night?” However, I know many of you very well, and some of you are saying, “Ummmm, NO! The budget is important, but it always boils down to a question about mission and vision.“

When I first heard my friend’s point, I must admit that I was taken back to high school and American History class. I thought that the debate about budget vs. mission is analogous to the founding fathers putting a series of checks and balances in the United States Constitution.

How so?

Well, the executive director and staff are typically focused on issues of mission. They are always advocating for clients and programming that best meets the needs of the community. Whereas, the board of directors typically uses the power of the various policy documents (e.g. agency budget, strategic plan, etc) to place parameters on staff to ensure accountability and sustainability.

So, who is right?

At the risk of fueling your suspicion that I might have had one too many glasses of wine on Tuesday evening, I point you in the direction of the following classic 1970s television commercial featuring George Steinbrenner and Billy Martin to resolve this conflict:

[youtube=http://www.youtube.com/watch?v=z_zDcQV6_6k]

Which side of this classic debate do you come down on? In the final analysis, does your agency budget trump everything else or does your mission and vision define the budget? Please use the comment box below to share your thoughts and experiences.

Here’s to your health! And, ohhh yeah . . . cheers! 😉

Obamacare and your non-profit organization

September 23, 2013 erik Planning

obamacare1 I am not a healthcare expert, and I promise not to play one today. However, the Affordable Care Act (aka Obamacare) has been mentioned in passing a handful of times in meetings I’ve had with non-profit board and staff members over the last few months. Of course, when things like this happen, it tweaks my curiosity and normally ends up here as a blog post. Today, I thought I’d quickly touch upon the quickly evolving topic of healthcare and the non-profit sector and how everyone needs to start paying attention.

In my experience throughout the last few decades, I’ve seen non-profit organizations occupy two very opposite ends of the spectrum when it comes to healthcare and employee benefits. These two generalizations can be summed up as follows:

They are expensive and the agency does everything in its power to avoid offering them to its employees.
They are provided to employees generously as a way to compensate for low wages and entice employees not to leave for better salaries in the for-profit sector.

There is an increasing number of news stories about Obamacare as we inch closer and closer to implementation of the law. As this happens, it is top of mind for executive directors and their non-profit boards. As I mentioned in the introductory paragraph of this blog, I’ve heard both board and staff members mentioning things in passing on this subject.

Of course, the thing that worries me most is that all of the passing comments I’ve heard involve verbiage such as:

We’ll see if . . .
Obamacare might . . .
We’re not sure, but if . . .

I recent read an online article published at Online Athens, which is the website for the Athens Banner-Herald newspaper, about non-profit organizations and what the Affordable Care Act means for them. It was this paragraph in the story that sent chills up my spine and inspired this blog post:

“Local nonprofits contacted about the tax credit were unaware of their eligibility and did not want to comment at the time of publication.”

Let’s please face facts:

Many non-profit organizations are small, under-resourced, and fragile.
These organizations tread water on most days and celebrate just keeping their doors open for another few months.
These agencies don’t have their eyes on things like the Affordable Care Act because throughout time much of what the federal government has done only applies to larger employers with 50 or more employees (and many non-profits aren’t this big)

The Athens Banner-Herald did a nice job of making this point when they ended their article with this:

“There is no requirement on employers to provide health insurance, but there is a penalty under the Affordable Care Act’s employer “shared responsibility” provisions for employers with 50 or more full-time employees that do not provide a minimum level of insurance coverage that goes into effect in 2015. The Act does not require employers to provide health insurance to part-time workers and nonprofits that employ fewer than 50 employees will not be subject to employer-shared responsibilities.”

Regardless, the fact of the matter is that ALL non-profit organizations need to start paying attention and educating themselves about the changing face of the healthcare sector.

obamacare2 Why?

There is this thing called the “individual mandate“. To make a long story short, this means that most Americans will soon be required to have some sort of health insurance coverage. It also means that health insurance coverage will soon be on your employees’ minds. So, don’t be surprised when you start to hear things around your proverbial workplace water cooler like:

Why doesn’t our employer offer us health coverage?
Would it be cheaper to talk to our employer about adding employee subsidized health benefits or purchasing a policy through the government-run insurance exchange?
Since my agency can’t/won’t offer health benefits and I now have to pay for private insurance, I wonder if I can push for a better year-end raise to help offset some of these new costs?
Can I still afford to work in the non-profit sector? Or should I be looking more closely at sector jumping and applying for jobs that offer health insurance?

Sure . . . you may be a small non-profit organization with fewer than 50 employees, but don’t think that none of this is going to effect you. None of this is meant to serve as commentary. I am only trying to make the point that every agency should start thinking about healthcare as changes start to occur and they lead to unanticipated questions and additional changes.

My best advice is to start educating yourself about the Affordable Care Act. Take a few small baby steps and start reading articles and attending free webinars and seminars on the topic. BE PROACTIVE! The following are just a few online resources you may want to check out in your spare time:

Online Athens: “Affordable Care Act offers tax credits to nonprofits“
Blue Cross Blue Shield: “Health Care Reform and You“
Kaiser Permanente: “Understanding the Affordable Care Act“

Let’s use today’s blog post as a starting point for many small non-profit organizations. If you currently work at an agency focused on helping with implementation of this new law, please use the comment box below to share a few thoughts or point folks in the direction of online resources. If you’ve attended a webinar or workshop and learned something worth sharing, please consider taking a moment to share it here.

Here’s to your health!

Does your non-profit put its employees first?

September 20, 2013 erik organizational development

Welcome to O.D. Fridays at DonorDreams blog. Every Friday for the foreseeable future we will be looking at posts from John Greco’s blog called “johnponders ~ about life at work, mostly” and applying his organizational development messages to the non-profit community.

In a post titled “People-Service-Profit,” John talks about the impact that Federal Express’ corporate philosophy of People-Service-Profit has on it employees . . . which in turn has an effect on customer service and loyalty . . . which ultimately is reflected on the bottom line in profit

When reading John’s blog post this week, I immediately had two thoughts, which I will address below in two different sections.

Non-profit culture

People who work for non-profit organizations are different. In my experience, they aren’t motivated by the same things as their for-profit counterparts. Here are just a few examples of what I’ve seen people on the frontline of the non-profit sector do:

They often agree to work for less money than they otherwise might earn working in the for-profit sector.
I’ve seen non-profit employees work longer hours than they’re asked (or authorized to do). I’ve even seen hourly employees fudge their timesheet in order to avoid overtime (e.g. they get in trouble for working unauthorized time . . . overtime isn’t part of most agency’s budgets).
I’ve seen program assistants purchasing supplies for their programs using their personal money because there isn’t enough agency funding to do so.

peoplefirst2 The point I’m trying to make is that most non-profit organizations have built a culture that revolves around THE CLIENT. This focal point is so intense that ideas threatening to shift that focus are often seen as heresy.

While many people see a client-focused philosophy as altruistic, there can be a cost to this kind of corporate philosophy.

Low employee morale
Burnout
Cynicism
Poor staff cohesion

Another significant negative effect of this philosophy is “The Nonprofit Starvation Cycle”. I talked about this phenomenon in a previous “DonorDreams: O.D. Fridays” post on July 26, 2013 titled “Is your non-profit only living for today? Then you need Picasso!”

In the Picasso post, I describe how senior leadership and board volunteers are blinded by the agency philosophy of CLIENT FIRST, which results in zero funding important organizational capacity building expenditures. The end result is a non-profit that has no capacity and starves itself out of business.

Heck, in yesterday’s post about budgeting, I confessed that when I was an executive director, my finance committee once convinced me to eliminate donor newsletters from the budget in order to balance it. Ugh . . . while this was done in the name of putting the CLIENT FIRST, the result was putting the donor second (which is the person who needs to see ROI on their investment if they are going to renew their support). How did THAT make any sense?

So, let’s jump back to John’s post about company philosophy and FedEx.

If you are an executive director or someone who supervises staff, you should click -through and read the 10 bullet points located in the middle of John’s post. After reading those FedEx examples of how managers should treat their employees, I encourage you to complete the exercise described in the paragraph after the list.

It likely will be an eye-opening experience for you.

The Loyalty Effect

I suspect many non-profit people who are reading today’s post are probably still not convinced that a CLIENT FIRST philosophy can be damaging.

More than a year ago, I wrote a week long blog series focused on “The Loyalty Effect: The Hidden Force Behind Growth, Profits, and Lasting Value,“ which is a book written by Frederich Reichheld. I mostly focused on translating some of his business themes into resource development messages.

However, one of Reichheld’s bigger points is how employee loyalty drives customer loyalty, which turns into profit on the bottom line.

If you are still one of those skeptics when it comes to this post, look at it from this perspective . . .

Many of your clients have “special relationships” with your staff. In fact, if you surveyed your clients, I suspect they would say they come to your agency primarily because of that relationship and secondarily because of your services. I know for a fact this was true for the kids using the programs at my former agency.

So, investing in your employees results in their retention and loyalty. This in turn keeps your customers coming back, which in turn drives impact and program results. When you communicate this impact (e.g. ROI) to donors, it improves your donor loyalty rates and you raise more money.

Please don’t misinterpret me here.

I am NOT suggesting you shouldn’t strive to make your clients happy and provide them with the best possible programming. However, I am saying the non-profit sector needs to take a page out of FedEx’s book and figure out how to invest in its people. It will make a huge difference in so many different ways!

Putting your employees first IS putting your customers first because your employees will put the customer first especially if your organizational values drive them to do so.

If you have some time this morning, I also encourage you to jump in the “way back machine” and check out that six part blog series about donor loyalty as it relates to some of Reichheld’s loyalty principles:

Want to change? Where to start?

If this post has you thinking about creating a different company culture, you may want to check out a post by Inc.com titled “How to Create a Company Philosophy“. It is definitely worth the click! 😉

Did you click-through and read John’s 10 bullet points? If so, how well did your agency do? What are you doing to invest in your employees? Is your organization avoiding the starvation cycle? If so, how are you making the case for investments in capacity building? Have you ever correlated your employee turnover to client turnover to donor turnover? If so, what have you found? Please scroll down and share your thought and experiences in the comment box below.

Here’s to your health!

Non-profit budget season: The old Texas Two Step

September 19, 2013 erik Board governance, Fundraising

The other day I received an email from an old friend asking me to share my thoughts about the “right way” for a non-profit organization and its board to construct a budget. Do you start with revenue projections and develop the agency’s fundraising plan first? This way everyone knows what the expense budget can’t exceed. Or do you start with the expenses and try to build a revenue budget that supports the organization’s mission, vision and programming?

My first thought when I got this message was: “OMG! It is budget season for many non-profit agencies. Ugh . . . it is almost October. Where did winter, spring and summer go?”

My second thought was actually more of a chuckle because I’ve always thought of budget season as a bizarre dance between board and staff that resembles something like the Texas Two Step as demonstrated in this YouTube video.

[youtube=http://www.youtube.com/watch?v=D_H1x2MpeEk]

For the record, I don’t think there is a right and wrong way to undertake budget construction. There are obviously very smart people who reside in both camps — revenue first vs. expenses first. When I was an executive director, I tried to do the uncomfortable thing and sit on the fence. Ouch!

budget The following is a thumbnail sketch of what my process looked like:

I put the budget process in writing with a narrative description and timeline, then built consensus around the importance of following process and adhering to deadlines.
I simultaneously started working with the finance committee and the resource development committee.
The finance committee and I worked with program staff, and everyone collaborated around constructing reasonable expense budgets with mission, vision and quality programming in mind.
The resource development committee and I worked on developing a detailed resource development plan chock full of reasonable revenue projections, range of gifts charts, goals, strategies, volunteer prospect lists, grant prospects, annual campaign prospects, special event prospects, fundraising calendar, and action plans.
Sometime in October or November the two committees met jointly. They shared and compared their work. The FUN was just beginning because there was always a gap on the bottom line.
Consensus was built and both committees went back to work. The finance committee was usually tasked with finding cuts that wouldn’t hurt the agency’s mission or damage its organizational capacity. The resource development committee went back to the drawing board to find reasonable revenue enhancements.
Both committee were tasked with reporting their progress back to the board every month throughout the process. The hard part was staging those board meetings in a manner where generative discussions would happen and result in: 1) board volunteers who didn’t sit on those committees an getting and opportunity to weigh-in and 2) both committees getting an opportunity to engage the larger board in decision-making focused on strategies and tactics (esp. those related to revenue generation).

When the committees converge in the process, the age-old Texas Two Step issue would always float to the top. Do we close the gap with budget cuts or revenue enhancements?

My philosophy was always “revenue first” because I felt like the mission of the organization called upon us to make that attempt first. However, this doesn’t entail just changing projections and modifying our best guesses. It involved adding more prospects, tweaking strategies, and adding revenue streams.

Some years I won this argument. In many other years, I lost this argument, and the finance committee would produce their hatchet. (I am embarrassed to admit that one year I lost the ability to send donors a newsletter thanks to that hatchet. I should’ve fought harder because donors need to see what their investment is doing.)

Ahhhhh . . . You gotta love the old Texas Two Step. 🙂

As I sat on my couch and texted back-n-forth with this old friend, my mind wandered (as it tends to do) and I had a third thought:

If you like sausage, you don’t want to know how it is made!

making sausage I am not suggesting that my process is the right way to put a non-profit budget together. However, I do believe strongly in the following few budget construction principles:

Budgeting is a collaborative activity between board and staff. (Avoid a situation where staff puts it together and the board either behaves like the two Muppets who sit in the balcony or simply just rubber stamps it.)
Projection of numbers (esp. revenue) isn’t a dart throwing activity. It is rooted in historic data, trends, actual prospect names, and strategies. Don’t ever use “plug numbers“.
There is a process with an explicit timeline. It is written out. It is created collaboratively and agreed to by all parties.

Enough of my waxing poetic about how your non-profit should tackling budget season. Here are a few online resources and documents that I found:

Nonprofit Accounting Basic$: “The Budget Process“
Larsen Allen LLP Effect Magazine: “Nonprofits: Improve Your Budget Process“
Clifton Gunderson LLP Count on Insight: “Best Practices for Nonprofit Budgeting and Cash Forecasting“

Is your organization in the middle of its annual budget construction process? What works for you? What doesn’t work? What do you plan on doing differently next year?

Please use the comment box below to share your thoughts and experiences.

Here’s to your health!

You’ve got to stop emailing your non-profit board members all the time!

September 18, 2013 erik Board governance, organizational development, technology

duck1 You know what Douglas Adams says (according to Brainy Quote). . . “If it looks like a duck, and quacks like a duck, we have at least to consider the possibility that we have a small aquatic bird of the family anatidae on our hands.” This quotation kind of sums it all up when I hear non-profit staff complaining about how disengaged their board members are, while they are in the middle of sending out another long email to those same board volunteers.

Let me start by telling you that I am one of the biggest offenders of overusing email. Guilty as charged! I need to seek help, but they say the first step in getting better is admitting you have problem.

My good friend (and former supervisor) used to remind me constantly that he believed email should be used as an “information tool” rather than a “communication tool“.

I spent many years contemplating this advice.

In the final analysis, he was saying email should be compared to snail-mail and the United States Postal Service. Email is like a stamp that you’re putting on a letter. He would advocate using email to send a document, but don’t use it to engage someone in a conversation about something.

I can almost hear him saying: “If you need to engage someone in something, then pick-up the darn phone!”

Of course, I don’t see this issue as being quite so black and white. Email technology has made tasks like coordinating meetings and answering simple questions really easy. So, I guess I don’t completely agree that email is only good for sending out agendas, meeting notes, etc.

HOWEVER . . .

Many of us are overusing email and doing so in ways that result in disengagement. I understand this is a serious assertion, but stay with me on this one.

duck2 When I look at my email inbox, I do a lot of scanning. I first look at the names of people who sent me something. As I do this, I am deleting anything that vaguely looks like spam or advertising. I don’t even open it. After this first purge, I re-visit those who are left standing and start looking at subject lines. I’m essentially trying to prioritize what I should open first versus leave for later when I have more time. And when I say “leave for later,” it could be days or weeks later.

(Confession time: at the time of this post, I currently have 1,027 unopened emails . . . I am truly embarrassed.)

I suspect some of you do the same thing. (Of course, de-nial isn’t just a river in Egypt as the old expression goes)

I also suspect that many of you are sending emails of all sorts to your board members’ work email address.

Finally, I am willing to bet that many board volunteers prioritize their work emails ahead of anything they get pertaining to their volunteer commitments. It is just a guess, but I think I’m on solid ground.

So, what just happened? You were put on the back burner regardless of how important you think your email might be.

In today’s fast paced world, I believe the technology revolution has created a new set of assumptions around communications:

If something is very important, it warrants a face-to-face meeting.
If something is pressing or needs to be discussed, it gets done by phone.
If something isn’t time sensitive, it gets put in an email or a snail-mail envelope.

Am I over-simplifying? Maybe, but then again I don’t think I’m too far off.

If you’re still with me, then it is hard not to conclude that sending lots of emails to your board members is the equivalent of sending them lots of unimportant stuff.

Choosing how and what and when to communicate with your board volunteers is important.

If you want to be relegated to the back burner of a board member’s email inbox, then keep sending those emails.

Here’s a suggestion . . .

Look at your board roster and select the names of your three most influential board members.
Sort your email outbox by name/email address
Count how many emails you’ve sent to each of those board volunteers.
If you’re averaging more than one per week, then you may want to re-examine how you communicate with them.

You may want to do a quick inventory of what you’re emailing board members. Once you develop a list, set-up informal policies for yourself on what is acceptable to email, what should be a phone call, and what needs to be done in-person.

The following are a few suggestions that I have:

Distribution of agendas and meeting notes — email
Checking in to see if a board volunteer completed something — phone
Getting buy-in from board volunteers on something — meeting
Coordinating calendars for a meeting — email
Checking to see who is still coming to a meeting (e.g. quorum call) — phone
Circling around to a board volunteer who was expected to make a meeting but didn’t show and needs to be “in the loop“– phone (possibly even a meeting over a cup of coffee)

There are lots of times that we shouldn’t be using email, but unfortunately we do it because it is convenient. If you have a moment, I suggest you read a wikiHow article titled “How to Know when Not to Use Email“. It is definitely worth the click!

Do you overuse email? Are you seeking a support group like me? LOL What are you doing about it? Can you add to the list above regarding when it is OK to use email vs. phone vs. in-person meetings for various communications with board volunteers? Please scroll down and use the comment box to share. Your kindergarten teacher would be proud of you. 😉

Here’s to your health!

How will you celebrate your non-profit’s next anniversary?

September 17, 2013 erik Fundraising

anniversary1 Every year, it seems like one of the charities I support is celebrating some kind of anniversary or milestone. Most of the time, it relates to the age of the organization, and it is typically a milestone like 25, 50, 75 or 100 years of existence. Sometimes it is a different kind of anniversary, where they’re celebrating a board member’s years of service or the age of something physical like a building. Regardless of the opportunity to celebrate, a fundraising solicitation is never far behind; however, anniversary celebrations can be so much more than just putting your hand out.

I graduated from the University of Illinois Urbana-Champaign (UIUC) with both a BAUP (1992) and MUP (1994).

I know most of you are thinking “HUH?”

BAUP is a Bachelor of Arts in Urban Planning, and a MUP is a Master’s degree in Urban Planning.

I spent six amazing years learning about the ins and outs of planning from some of the most amazing professors. In hindsight, I was laying a foundation of knowledge and practices that would serve me well as a non-profit consultant almost 20 years later. I have literally lost count of how many plans I’ve facilitated and written since graduating (e.g. strategic plans, tactical plans, succession plans, resource development plans, board development plans, marketing plans, business plans, etc).

anniversary2 A few weeks ago, I started getting email and snail-mail announcing the 100th anniversary of the Department of Urban and Regional Planning (DURP) at the University of Illinois.

Wow! 100 years . . . how could that be possible?

After some head scratching, I vaguely recalled the University of Illinois was only the second school in the country to offer urban planning curriculum back in the early days when planning was just getting off the ground as a profession.

Normally, I am not influenced by most non-profit organizations’ anniversary efforts to get money out of me as a donor. However, I am amazed at how many times I’ve found myself thinking about writing a small check to my Alma Mater in honor of the department and the people who gave me so much.

After the second or third time of almost making a contribution, I started wondering what DURP and UIUC are doing differently from so many of the other non-profit organizations in my life. So, I went back to the communications materials and mail solicitations and looked for clues. Here is what I found:

Their fundraising effort isn’t front and center. They don’t beat you over the head with their hand out. It is subtle.
Their focus is on sharing nostalgia and memories, and they want this to be a two-way experience.
They’re using this as a donor engagement activity by asking alumni to help them in a variety of ways.

anniversary3 For example . . .

I’ve been asked if I have any interest in becoming a mentor to a student.
They’re conducting a remembrance activity and asking alumni to submit stories about their time on campus with the department.
They’re looking for old pictures for their archive.
Of course, there are two days worth of celebrations and activities on campus in early November where you can walk down memory lane and reconnect with faculty and friends.
Oh yeah, just as a side note, they’re announcing the start of a new scholarship fund for planning students. 😉

Over the years, I’ve read tons of fundraising articles, papers and books. In addition to considering myself a “planner” by education and trade, I also proudly consider myself a “non-profit and fundraising professional“. While my recall isn’t working well this morning, I have some vague recollection of someone once saying that “good fundraising” is 95 percent about listening and engaging versus 5 percent solicitation.

Will I write a small check? Will I attend the anniversary festivities? Will I take the time to submit a remembrance story?

I dunno. Maybe.

What I do know is that your non-profit organization can learn a lot from my Alma Mater with regards to using an anniversary celebration to deepen the level of engagement with your donors and raise a few bucks along the way.

The following links are additional resources I dug up for your review on this subject:

IMPACTMAX: “It’s your nonprofit’s anniversary? Who cares . . .“
Amazon.com: “Celebrating Your Nonprofit’s Milestones: 81 Great Ideas for Planning & Celebrating Milestone Events“
The Chronicle of Philanthropy: “Planning a Successful Anniversary Celebration“

Is your agency planning a big anniversary celebration? If so, please share your plans. Have you ever been a part of another institution’s milestone celebration? What did you like? What didn’t you like? How did they weave resource development opportunities into the mix? Please share your thoughts using the comment box below.

Here’s to your health!

What is your non-profit vision?

September 16, 2013 erik organizational development, Planning

vision As with most things in this world, there are different schools of thought on different things. While working with a client recently, I was reminded of the two camps that non-profit professionals tend to fall into when it comes to writing vision statements. So, I thought it would be fun this morning to explore both perspectives.

On one hand, you have the folks who believe a vision statement must focus on the community and the future state that the non-profit is striving to bring to the community. While digging around on the internet for examples, I came across great examples at Top Nonprofits blog in a post titled “30 Example Vision Statements“. The following are just a few examples from that post:

Feeding America: A hunger-free America.
Human Rights Campaign: Equality for everyone.
Make-A-Wish: Our vision is that people everywhere will share the power of a wish.
ASPCA: That the United States is a humane community in which all animals are treated with respect and kindness.

Wow! Big expansive visions. They are packed full of inspiration, and clearly explain in just a few words to donorswhat they are investing in. They are chock-full of aspiration, and guide the organization’s decision making.

Of course, this isn’t the only way to write a vision statement.

On the other hand, you have folks who believe a vision statement should focus on the organization and the change it strives to bring to itself and its clients. The following are a few more examples that illustrate this way of thinking:

The United Way of Elgin will be a recognized catalyst for mobilizing resources to build a healthier, more compassionate community.
Greater Elgin Family Care Center is known in the communities it serves for high quality, patient-centered care, delivered by a team of competent and committed staff. GEFCC will grow responsively and responsibly to fulfill unmet health needs, enhance community relationships and maintain financial viability.
It is our vision that the Rappahannock Youth Symphony will become a major regional youth orchestral organization that nurtures young talent and enriches the greater Fredericksburg community through the performance of orchestral literature.

OK . . . perhaps, these vision statements aren’t as grand as the ones previously cited, but they are certainly very utilitarian and functional. I suspect donors are no less inspired by these visions, and the organization is much clearer on what decisions it must make and actions it must take to get from point A to point B.

Let me be clear. I find both schools of thought to be perfectly acceptable when it comes to writing non-profit vision statements.

Is your organization reaching the end of road with its current strategic plan? Have you fulfilled your vision? Are you getting ready to develop a new vision and plan?

If your answer is ‘YES’ to the previous question, my first piece of advice is to make a conscious decision about which school of thought you subscribe. Recognize that you are at a fork in the road and must make a decision on which road to travel. Once you make this decision, then you may want to check out some of the following resources on how to go about developing and writing your vision statement:

wikiHow: “How to Write a Nonprofit Vision Statement“
Brainzooming: “Strategic Planning Doesn’t Have to Kill Creativity“
Brainzooming: “What Are We Trying To Say?“

How is your non-profit vision statement written? To which school of thought do you subscribe? What process did you use to develop your vision statement? How do you use your vision statement?

Please use the comment box below to share your thoughts and experiences. We can all learn from each other.

Here’s to your health!

Non-profit boards need to stop crying about evaluating their CEO

September 13, 2013 erik Board governance, organizational development

In a post titled “There Is No Crying In Performance Reviews!,” John talks about how year-end evaluations are difficult exercises not only for the person being evaluated but also the person doing the evaluation. He goes on to talk about the reasons for the anxiety, shares a few difficult stories, and finishes with how he has made a few changes to make the process easier.

If you are responsible for evaluating employees, you should click-through and read this post.

However, when I read this post, my mind was in a very different place.

I had been working with a number of different non-profit boards and facilitating trainings on board roles and responsibilities. I usually administer a simple little pre-test a few days before conducting the training. Not only does it help me get a sense of the board’s collective mindset, but I share the aggregated results with the board prior to launching into the curriculum. I’ve found that doing so gets participants’ attention and creates a greater sense of focus.

CEO review1 One of the pre-test questions that tends to trip people up is whether or not the board has a responsibility to “oversee the CEO“. Believe it or not, it isn’t uncommon for one-quarter to one-third of board volunteers to say “NO“.

I always find it funny because the previous question on the pre-test asks if they are responsible for “hiring the CEO,” and almost everyone agrees that is a basic non-profit board responsibility.

So, where is the disconnect?

If you are responsible for hiring someone, then doesn’t it follow that in most situations you’re responsible for developing their annual performance plan AND evaluating their performance?

After re-reading John’s post this morning, I think the answer is simple.

The collective board and its individual members feel anxiety about evaluating its one and only employee. As John describes in this post, it is the same feelings that individual managers experience.

Understanding where that anxiety comes from is a step in the right direction of solving the problem. The following are just a few of the reasons cited by John:

not being organized;
not doing your homework;
not knowing the jobs being assessed, or how they’ve really done them; and
not having detailed examples to cite in defense of critical feedback.

If your non-profit organization is going to thrive, then you and your board need to GET OVER IT. As John points out in the title of his post, “There Is No Crying In Performance Reviews!”

CEO review2 So, maybe you don’t know where to start?

Well, I think some of the answers can be found the aforementioned bullet points (aka the causes of this avoidance behavior). Here are a few of my suggestions:

Make it a board policy that an annual performance plan, which is rooted in your strategic plan, is developed and issued to the executive director by the start of the year. Make sure this policy speaks clearly to the issue of who is responsible for making this happen and how they engage the board in the process.
Develop a 360-degree feedback process and get input from all of the executive director’s direct reports.
Make it a practice to ask the executive director to self-evaluate themselves as part of the process.

These are just a few suggestions. The following are even better resources that I found online:

First Nonprofit Foundation: “Evaluating the Executive Director: Your Role as a Board Member” by Vincent Hyman
Berkeley Development Services: “Evaluation of the Chief Executive: A Briefing for Non-Profit Boards of Directors“
blue avocado: “Executive Director Evaluation Survey Form“

Oh yeah! One more thing . . . once you start down this path, take great care not to fall into some common pitfalls. What would those pitfalls be? Well, the following are just a few according to a document I recently found in an old board governance manual:

Avoid falling prey to the “halo effect“. (aka the CEO can do no wrong mentality)
Keep personality out of the process . . . this is only about performance. (e.g. Just the faces, ma’am)
Being too lenient (e.g. the glass is half full)
Being too critical (e.g. the glass is half empty)
Being clouded by recent events (e.g. letting a crisis or recent victory override an entire year’s worth of performance)

In my experience, the vast number of non-profit boards don’t do a good job with managing and evaluating their executive director’s performance. This needs to stop because “that which gets measures . . . gets DONE“. In other words, if you want your agency to succeed, you need to stop crying and figure it out!

How does your agency evaluate its executive director? What have you done that takes some of the anxiety out of the process? How do you keep from falling into common pitfalls? Please use the comment box below to share your thoughts and experiences. We can all learn from each other.

Here’s to your health!

Trends in non-profit governance?

September 12, 2013 erik Board development, Board governance

great carnac I was reviewing some old non-profit board governance material this morning and came across a document talking about “trends in non-profit governance“. In other words, the person who wrote that paper thought s/he was able to predict the future. Of course, this document was written more than 10 years ago, which got me thinking it might be fun to review some of their trends and determine where they were right or wrong.

The following are just a few of the trends that I found interesting:

As I review this list, there are a number of thoughts and questions running through my head. Let me spill those things out in the following bullet pointed list:

How many non-profit board have gotten smaller over the last decade? I wonder how that is going for them? Are they more effective or less effective?
Wow! They nailed the technology trend. I see many agencies conference calling people into meetings and doing some business via email polling and voting. (Not that I think it is very effective.)
Huh? The FROM-TO pertaining to fundraising is a little comical. I cannot tell you how many non-profit boards I’ve worked with who are very reluctant fundraising solicitors.
Really? Once in a blue moon, I run into a non-profit board that has an annual performance evaluation process in place for their executive director. More often than not, I see boards doing everything in their power to NOT evaluate the CEO.

The following are a few interesting resources I dug up online pertaining to some of these trends:

The Bridgespan Group: “Size of the board“
blue avocado: “Executive Director Evaluation Survey Form“
National Council of Nonprofits: “Ethics and Accountability in the Nonprofit Sector“
The Bridgespan Group: “Recruiting and Vetting Nonprofit Board Members“
nonprofit hub: “15 Ways to Transform Your Board of Directors into Fundraising Champions“

While clicking around for these links, I came across another great document titled “Emerging Trends in Nonprofit Governance“. It looks like it was presented at the ASAE & The Center’s Annual Association Law Symposium in 2009. This document contains all sorts of best practices, and it is definitely worth the click.

I’m not sure if I would put any of these things under the classification of “trends“. I think most of the trends stuff that I’ve reviewed today can better be described as “best practices“.

So, let me go out on a limb this morning and identify what I see as a real trend in non-profit governance . . .

Serving on a non-profit board will
continue to be difficult and entail hard work!

Duh! 😉

I hope when non-profit bloggers revisit this post a decade from now they will be able to say, “That Erik Anderson really nailed that trend.” LOL

When reviewing the initial list of “trends” that I shared at the beginning of this post, what questions and thoughts initially spring to mind? Has your agency made the “FROM-TO” transition on any of those trends? If so, which ones? Are you currently working on any of those changes in your non-profit governance? If so, which ones and what are you doing to facilitate the change?

Please use the comment box below to share your thoughts and experiences. We can all learn from each other.

Here’s to your health!