Nonprofit Board Crisis

Nonprofit Myths (top 10)

I'm not sure that the Top 10 Myths offered by Blue Avocado are the 100% top ten myths but these are certainly a good starting point. 

I'm particularly fond of the myth about board size (16) and the expectaiton that boards are supposed to raise money. 

Regarding size, I've always maintained that as an Exec, 3 was a great number for board size but no way near helpful in terms of bringing community and other input.  I've also maintained that size really doesn't matter as much as having the "right" people at the table (committed, passionate) with clear roles and responsibilities and good support and structure to be able to do what has been agreed upon.

Regarding fundraising, yes, it's great when board members are committed to and have the capacity (e.g. access) to be helpful.  And yes, many institutional donors are more welcoming of board members as the requesters of support.  And yes, maybe there is a consequence if the board plays no role in helping request support (like not enough money).  But is raising money are requirement of board members?  Not implicitly.  Members must reach an agreement about this and then hold themselves accountable for implementation.

Anyway, check-out the myths.  This is a good thought piece that can generate some healthy conversation around your board table.  A cautionary note:  the refutes to the myths are not necessarily any more factual than the myths themselves.

Nonprofit Snubs Nose at Economy

So, maybe if you are a big museum with a really "important" art collection, you should be able to look around and snub your nose at the economic realities facing most other folks.  Such appears to be the case for the Barnes.

You may recall that the Barnes has an important collection of Impressionist and early Modernist paintings which has been housed in a non-urban and non-central setting developed by the original owner of the collection, Albert Barnes.

Anyway, having a big art collection in the middle of nowhere just isn't that sustainable, but Albert Barnes insisted on the collection remaining where it is when he set up the original trust.  So the trustees went to court to ask to move the collection to where it would be accessible.  This of course is a pretty unusual step because the intent of donors is considered pretty "sacred".  Well, the trustees won making the case that the donor really would want folks to experience the collection and that that just wasn't going to continue if the musuem failed economically staying where it was first housed. 

There are still those trying to stop this veering away from the original intent but the fundraising is going forward to make the move.  And with that, in these times, the Barnes has announced that they have increased membership from 400 to 10,000 and have exceeded their fundraising goal of $200 million, ensuring the development of an endowment to help offset future costs.  This of course is very good planning.

Meanwhile, the economy sucks and many arts groups are feeling this but there still remains some who can survive.  Why?

Nonprofits to help revise New York state nonprofit regs

A 29-member committee representing a range of nonprofits has been tasked to come-up with recommendations to adjust the rules that govern New York nonprofits.  Hooray that the state's attorney general thought to ask and hooray that there will be input from more than just lawyers.

Nonprofit regs are important for supporting donors and hopefully, achieving more and better outcomes (although the connection is not always clear).  I do hope however that this committee will see fit to find means for engaging as many other nonprofits as possible in the conversation - surveys, focus groups, interviews, whatever.  I would hate to think that this committee would behave like, oh..., the Independent Sector for instance.  You know, that organization where most nonprofits can't even afford the membership fee, never mind the conference registration.  Does IS say some good things for the sector?  Sure.  Does IS really represent the sector and all its parts -- I don't think so.

So New York Committee, please include others.  Yes, you are wise but your wisdom is not the only wisdom in the state.

Nonprofit Finance Partner Weds

So important an event is that that the New York Times covered it so who am I to not shout out on high?   

Kevin McQueen, my business partner and a guy who knows a lot of things about a lot of things, got married this weekend to a pretty amazing woman and her teenagers.  (Take it from me, one doesn't marry a woman with teenagers and not have them accept as well).

Anyway, Kevin, congratulations and thanks for adding to the BWB Solutions family!

Nonprofit Brewery

Here's an interesting nonprofit revenue generating enterprise developed to support local charities.

Conceived by the Oregon Community, a community christian church in Portland, Oregon, The Oregon Public House will be a nonprofit pub and resturaunt for the purpose of "creating a family-freindly and community-oriented environment" that will donate its profits to area nonprofits as directed by patrons. 

From a marketing strategy perspective, I have to admit that that the idea of generating profits and giving these to a charity of my choice is appealing.  Plus, this venture can benefit multiple parties (employees & vendors) in addition to customers and charities.  Seems like a win - win.  All that's left is to generate enough business to make a profit.  I trust the business plan has done a good job of identifying a solid customer base, besides church members of course. 

One note, on their website they indicate that this is a first.  Maybe its the first pub but there are a lot of nonprofits around the US that have resturaunts not only to generate revenues for charitable works but also as employment training efforts.  I'm sure a list can be viewed over at the Social Enterprise Alliance.

Nonprofit Board Responsibly Addresses Financial Issues

The Capital Area Food Bank board has decided to change a policy that will have a significant impact on its 700  members.  Its members, area food banks, will soon have to pay ten cents a pound for fresh fruit and vegetables.  The revenue will help offset the costs of rising transportation and food prices.  The consequence means that some members will have to increase their own budgets, in some cases, significantly, or find some other way to find the same items without the added cost (recognizing thought that just the process of acquiring these items from different sources means increased indirect or volunteer costs).

I wonder whether or not the Capital Area Food Bank, in not originally assessing a cost for these items, was really doing a service in the first place.  Not having ever assessed a fee historically makes this move appear as an onerous act.  One might also argue from a marketing framework, no fee has lowered the perceived value of the offerings (free is often perceived as "no value").  And, of course, the Food Bank had these costs all along although perhaps not as high as today.

So, the decision to charge certainly makes sense on many levels.  And yes, there is a consequence for the members.  But isn't a nonprofit board's first obligation to ensure the financial wellness of its organization or else threaten the accomplishment of its mission (which I'm guessing is to increase the access to wholesome food to its members)?  A ten cents a pound charge continues to meet mission and address these issues.

For details on the story, visit the Washington Post.

Nonprofit Adopts Consumer Marketing Techniques

The perception of animal shelters is generally that these are the last place to go to if you want a dog or cat.

But what if the shelter isn't a shelter but a pet store with all the bells and whistles including an accessible location?  Then, we shoppers, driven 1st by perception in our shopping, might just be ready to check-out the offerings the shelter has to offer.

This strategy is being tested by the Found Animals Foundation in southern California according to a Christian Science Monitor story.  These folks have opened a pet store in a middle-class mall, right alongside the traditional medium-to-upscale retail stores.  As the Exec. notes: "it's an animal shelter disguised as an upscale pet-adoption center and pet supply boutique."  The result appears to be a fairly solid rate of adoptions that have been appropriately matched for the new home. 

I don't know anything about the economics of the Foundation's efforts (i.e. the sustainability elements) but from a first blush, these folks have taken a good approach using traditional marketing principals (know your target audience and apply the 5 p's (product, place, price, promotion and position) to achieve your goals.

Kudos to the exec and board who were willing to think in a non-traditional way and also willing to put up the bucks to make this work!

Nonprofit Board Performance

The Alliance for Children & Families Issue 2, 2011 (alliance1.org) has offered four suggestions for how boards can focus on improving (or even think about) their performance.

1. Implement the 33 board principles developed by the Independent Sector.  And, yes, this is one of those little gifts the IS offers the "rest" of the nonprofit sector who aren't its elite members.

2. Evaluate the decisions the board made during the past year as excellent or lackluster and as fully-informed or not.  This exercise, maybe at the annual meeting, is a good review of how outcome-focused the board is.

3. Dedicate one day each year to training.  I however believe every board meeting should include training or at least consciousness raising about outcomes and results and the stories that illustrate outcomes and results.

4. Establish an emeritus trustee program as a resource pool of counsel to and for the board.  I kind of like this principle but would caution that this should be on the Governance Committee's not the Staff's shoulders, and a plan for how to effectively use this resource should be in place.

This is certainly a helpful list for boards to consider as they ponder (assuming they do) how to be effective.

Nonprofit Boards: Need to Know

The moral of the story: nonprofit boards may want to be more fully informed about whether the organization's operations are being conducted consistent with the organization's theory of change, mission and values.

The Slate Magazine story title "Silence of the Lambs" provides some interesting insights into what might actually be going on behind closed nonprofit doors operating in other countries.  Yes, there's a slant that of course suggests, in the mind of an investigative reporter, that all is not what it seems.  But there's also a bunch of facts and even some positives thrown in that are cumulatively offered to lead to one conclusion: think and learn before you give.

More importantly, I would also offer that the boards regulalry revisit their theories of change, their missions and most importantly, their values.  My question: should a nonprofit board know deeper and broader about their organization's work than just about impact or outcome?  Or is impact or outcome enough?

Let's see: there's risk issues, reputation issues, customer relations issues.....

Nonprofits: It's Getting Better!

It's getting better is the message from Giving USA via the New York Times.

All I can say is: hm?