Leadership is Hard - RISK eNews

A SOURCE for Tools, Advice, and Training to control risks… so you can focus on your nonprofit’s mission.

April 23, 2014 With Thanks The Nonprofit Risk Management Center is deeply grateful to the companies that have signed on as Corporate Sponsors of our 2014 risk-themed conferences. In addition to our Corporate Sustainers, we are pleased to report that USLI and The Hanover Insurance Group, Inc. have enrolled as 2014 sponsors. Thank you! Visit our2014 Conferences webpage for location details, conference schedules, and online registration. Contact Kay Nakamura at (202) 785-3891 to discuss partnership opportunities. Leadership is Hard By Melanie Lockwood Herman This week I’ve been reading “The Hard Thing About Hard Things,” by Ben Horowitz, the former CEO of Opsware, whose company was acquired by HP for $1.6 Billion in 2007. What practical advice might a Silicon Valley tech executive turned venture capitalist have to offer nonprofit CEOs and risk champions? Brutal but helpful lessons from the world of startups, dot coms, and life on the fine dividing line between financial success and disaster. Like the corporate CEOs referenced in “The Hard Thing About Hard Things,” most of us leading mission-driven organizations awake each morning believing that we run great organizations. We yearn for opportunities to boast about our compelling missions and how we transform lives and communities. But I think Horowitz is right when he says that the true test of that belief is when the organization—and the CEO—have to do something truly difficult. Here are just a few of the “hard things” I learned from this provocative new book. No Excuses, No Self-Pity – In one of the shortest but most memorable chapters, Horowitz explains that when disaster strikes, “nobody cares.” His advice? Conserve the mental energy needed to rationalize the mess, make excuses for the mess, or engage in self-pity. Use the energy you have to “find the one seemingly impossible way out… Spend zero time on what you could have done, and devote all of your time to what you might do.” Recognize Good from Bad – The opportunity to make a difference is often touted by nonprofit CEOs attempting to lure talented professionals to their organizations. Yet are we being honest about whether our nonprofits—regardless of the warm feelings our mission statements convey—are really good organizations? Horowitz explains that in a good organization, “staff wake up knowing that the work they do will be efficient, effective and make a difference for the organization and themselves. These things will make their organizations both motivating and fulfilling.” In contrast, in a poor organization, “people spend much of their time fighting organizational boundaries, infighting, and on broken processes. They are not even clear on what their jobs are, so there is no way to know if they are getting the job done or not.” Which characterization fits the nonprofit you lead? If you’re not 100% confident that the “good organization” label applies, what steps are you taking to dispense with mission-wasting processes and eliminate the confusion and chaos you need to evolve to good? Take a Hard Look at the Numbers and the White Space – Today’s nonprofit CEOs are becoming increasingly obsessed with numbers. I recall a board meeting more than 10 years ago when one of my business-savvy board members urged our team to conduct an annual “ROI” process. Her suggestion, which seemed novel in 2004, is not an uncommon theme at today’s board table. But Horowitz cautions against focusing on the wrong numbers or looking at them in the wrong way. He describes “management by numbers” as “sort of like paint by numbers—it’s strictly for amateurs.” The frequent mistake that leaders make is to focus on short-term results while sacrificing future opportunities, or “downstream competitiveness.” He urges CEOs to look beyond the black box with the numbers to the intriguing “white space” that explains how the organization achieved those numbers. He reminds his readers that in many cases, qualitative goals may be an organization’s most important ones. Invite Candid Feedback Through One-on-Ones – According to Ben Horowitz, a common mistake made by tech CEOs is to engage in one-way conversations with staff. Whether it’s a performance review, pep talk, or opportunity to make a big announcement, apparently many CEOs prefer to hear the sound of their own voices to hearing feedback from direct reports and the rank and file! Horowitz challenges CEOs to make time for one-on-one conversations with staff. During these one-on-ones, the most important rule is the 90:10 rule: CEOs should do no more than 10% of the talking. Questions to help spark the conversation include: If we could improve in any way, how would we do it? What’s the number one problem with our organization? Why? What’s not fun about working here? What are we not doing that we should be doing? Share Every Burden You Can – Horowitz writes that “It’s easy to think that the things that bother you will upset your people more. That’s not true. The opposite is true. Nobody takes the losses harder than the person most responsible.” The author’s antidote to lonely despair when things go terribly wrong? “Share every burden you can. Get the maximum number of brains on the problems even if the problems represent existential threats.” Leaders of nonprofit organizations are fortunate that our missions attract smart and passionate staff and volunteers. It’s been years since I’ve heard any CEO complain about having a hard time recruiting top notch staff and brilliant board leaders. With the opportunity to work with and tap the enthusiasm, creativity and dedication of bright people, our missions know no bounds. But despite the talent at our doorsteps, leading a nonprofit requires making hard choices, choosing between sometimes painful alternatives, and never giving up or giving in when the going gets tough. You can reach out for help, look for opportunity in the face of disaster, but you can’t hide. Why? Because your mission deserves your commitment and fortitude to handle the “hard things” that are inevitable in the extraordinary world of nonprofit service. Melanie Lockwood Herman is Executive Director at the Nonprofit Risk Management Center. Melanie’s calendar of upcoming speaking engagements is available online. Also available are “hot topics” for workshops in 2014. Questions? Call Kay Nakamura at (202) 785-3891 to discuss Melanie’s availability as a keynote or workshop speaker. Suit Yourself Risk Management Training Each month the Center records a brand-new Risk Webinar featuring up-to-date content on issues that are top-of-mind for nonprofit leaders. The one-time cost for each program is $59, or apply to become an Affiliate Member to enjoy unlimited access to our “vault” of more than 100 hours of risk management training. Frustrated with the limitations of your annual performance review process? Learn what’s new in the field of performance management by purchasing this month’s program on Managing Risk in Performance Management. Next month’s program, on The Insurance Marketplace will be released on May 5. To purchase any recorded program or peruse the “webinar vault,” visit our 2014 Webinars page today.

Free Program: Using a Fund Development Committee to Help Your Non-Profit

Leatherstocking AEA: Using a Fund Development Committee to Help Your Non-Profit May 15th   9:00 AM to 11:30 AM Discussion and Overview    REGISTER    This program will explore the importance and role of a fund development committee within your nonprofit organization. Discussions will be based upon how to raise more money and how these committees can become an essential part in planning for future expenses. The program will provide valuable information concerning topics surrounding the issue.  Bring your ideas and examples from your nonprofit to share in this facilitated discussion.  Date: May 15th, 2014 Time: 9:00am-11:30am Location: FoxCare Center's Wellness Conference Room FoxCare Drive  Route 7 Oneonta, NY 13820 REGISTER Visit the New York Nonprofit Executive Directors Network Online Stay Informed. Connect with your peers. Post your questions. NYNED is your resource. About the Leatherstocking AEA This group is supported by the New York Council of Nonprofits and offers nonprofit executive directors opportunities for networking and professional development.

Local Not-For-Profits to Receive Grants from Community Fund

A number of area not-for-profit organizations are going to be given grants from a local foundation.

Forty-four organizations applied for nearly $400,000 worth of private donations made to the Community Foundation for South Central New York.

In Delaware County, the Bovina Public Library will receive $6,400 to replace the furnace and hot water heater, and the Wilson Children’s Center in Deposit will receive $15,000 dollars for general operating support. The Mount Upton United Methodist Church in Chenango County will receive $11,800 to renovate the kitchen used for a community food pantry and meal center. In Otsego County, the Richfield Springs Community Center will get 1$15,000 to pay the expenses of the executive director’s salary.

The Community Foundation for South Central New York’s Community Fund uses a competitive grant cycle. They have given out more than $8.2 million since they started in 1997.

Read More: Local Not-For-Profits to Receive Grants from Community Fund | http://cnynews.com/local-not-for-profits-to-receive-grants-from-community-fund/?trackback=tsmclip

New Report on Foundation Funding to Address Domestic Violence

FOR IMMEDIATE RELEASE

CONTACT:Cheryl Loe
Communications Project Manager
The Foundation Center
(888) 356-0354 ext. 701
communications@foundationcenter.org

New Report on Foundation Funding to Address Domestic Violence

New York, NY — April 21, 2014. Today, the Foundation Center announced the release of a landmark report on foundation support for organizations and programs working to prevent — and address the consequences of — domestic violence in California. Enabled through a grant from Blue Shield of California Foundation, and using data from the Foundation Center's research database, Foundation Funding to Address Domestic Violence in California is the first-ever examination of philanthropy's contribution to the field of domestic violence. The report provides a landscape analysis to inform community organizations, funders, government agencies, and other stakeholders working to improve prevailing statistics that show one in three women will experience rape, physical violence, and/or stalking by an intimate partner in her lifetime.

"It is evident from this study that there is still ample space for additional funders to help end domestic violence," said Peter Long, Ph.D., president and CEO of Blue Shield of California Foundation. "Given the complex causes of and solutions for domestic violence, philanthropic organizations working on a variety of issues — from healthcare to childhood development — have clear opportunities to get involved and make a difference."

In the period 2009-2011, a total of 96 funders awarded more than $42 million in grants to domestic violence organizations in California. Funds primarily supported family services (80 percent), along with grants for legal services (28.8 percent), prevention (35.6 percent), and public health (27.2 percent).

Other key findings from the report:

• The populations most targeted by foundations were women and girls (96 percent) and children and youth (73.5 percent), followed by the economically disadvantaged (35 percent) and racial/ethnic minorities (16.1 percent).
• Grant recipient organizations located in major metropolitan areas led the state in their share of domestic violence funding dollars: San Francisco (27.4 percent) and Los Angeles (20.7 percent).
• Blue Shield of California Foundation is the leading domestic violence funder in California, making up more than 30 percent of total grant dollars awarded toward domestic violence prevention and services.
• Among the 1,000 largest foundations, the most that invested in any given year during the study period was 74.

"It is essential for funders, practitioners, and policymakers to have concrete data about funding to address domestic violence," said Brenda Henry-Sanchez, director of research for special projects at the Foundation Center and co-author of the report. "This kind of knowledge helps pinpoint where the gaps are so funders can direct their investments where it will do the most good."

Data on foundation funding for critical social issues like domestic violence align with the Foundation Center's stated priorities to communicate philanthropy's contribution to making a better world and to empower donors with the knowledge tools they need to be strategic. This report provides benchmarks against which to measure future progress in California and can serve as a model for other states that want to better understand the nature of foundation funding to address domestic violence.

The data highlighted in Foundation Funding to Address Domestic Violence in California are from the Foundation Center's research grants set, which includes all grants of $10,000 or more awarded by 1,000 of the largest U.S. foundations.

The report, which can be downloaded for free from the Foundation Center's web site, is part of a project funded by Blue Shield of California Foundation that offers tools and training to improve the fundraising capacity of California's domestic violence service providers. In collaboration with several funder associations and Blue Shield of California Foundation, the Foundation Center will present a webinar on May 6 at 11:00 am (PT) to highlight the findings of the report and engage funders and advocates to discuss its implications for the field. Registration for the webinar is online.

About the Foundation Center
Established in 1956, the Foundation Center is the leading source of information about philanthropy worldwide. Through data, analysis, and training, it connects people who want to change the world to the resources they need to succeed. The Center maintains the most comprehensive database on U.S. and, increasingly, global grantmakers and their grants — a robust, accessible knowledge bank for the sector. It also operates research, education, and training programs designed to advance knowledge of philanthropy at every level. Thousands of people visit the Center's web site each day and are served in its five regional library/learning centers and its network of more than 470 funding information centers located in public libraries, community foundations, and educational institutions nationwide and around the world. For more information, please visit foundationcenter.org or call (212) 620-4230.

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Nonprofit Knowledge Matters | Having Fun With Nonprofit Financial Literacy

How much is that doggy in the window? by Jennifer Chandler April is financial literacy month, so in the nonprofit community it’s the right time of year to ask this question: “We’ve got some board members who don’t want to serve on the finance committee and claim not to understand financial reports. How can we help them become more comfortable with our nonprofit’s finances?”  Hmm. Without meaning to be flippant, I submit that helping board members with this is as simple as showing them a cute puppy and asking them how much it costs. They might not be familiar with cost allocations for programs, or restricted funds, but they can understand that the cost of the puppy is not just the initial cost, but also the direct costs of food, treats, vet bills, plus the real, yet indirect costs of washing towels (muddy paws!), and just in case – “Oops – the puppy just swallowed its leash!” (this actually happened to a neighbor of mine) – funds set aside for emergencies.  advertisement So the puppy provides us with some important but pretty basic concepts in nonprofit finance: calculating full costs, annual budgeting, and reserves. Another very important concept for board members to understand, that I confess I couldn’t figure out how to fit into the cute puppy analogy, is donor restricted funding. Why not take ten-minutes at the next board meeting to make sure everyone is on the same page with these basic concepts? If you’re still asking: “What’s with the puppy?” I admit that nonprofit accounting is not THAT simple, but how about opening your next board meeting with some cute puppy pictures and then introducing your board to one of these options?    Read on for tips for talking to your board about finances Soon, what you don't know can cost you Speaking of financial literacy, quick – tell me – what’s your nonprofit’s indirect cost rate? Need a hint? Sometimes it’s referred to as your “overhead” or “administrative” cost rates (although technically there is a difference). Still not sure? Most nonprofit executives don't know either, probably because no one has asked before.  But what if there were a financial incentive for knowing your indirect costs, so that you would be paid more if you could accurately calculate those costs? Would an extra 10%, 15%, or even 26% inspire you to understand the full costs of delivering your nonprofit’s programs? The National Council of Nonprofits has been focusing on a financial literacy challenge that will benefit the entire nonprofit sector and those we serve. The issue involves the source of a third of the nonprofit sector’s revenue every year: no, it is not foundation grants (which amount to only 2% of the total revenue to the nonprofit sector) or individual giving (9%), but government contracts/grants that provide 32% of the sector’s revenue.  Read on to find out more about how owning your full costs can help your nonprofit.   Fresh Air for Annual Reports When was the last time your nonprofit invested long hours and significant dollars in drafting, designing, editing, proofing, printing, and mailing a hard copy annual report? If you are scratching your head or thinking, ‘Never!’ you are not alone. With the ease of handheld video cameras, sending an e-blast, and posting a pdf, technology is morphing the traditional annual report into something else. But as these exciting alternative opportunities develop, let’s make sure we continue to honor the purpose: to let in the fresh air of transparency so our nation’s charitable organizations continue to earn the trust of the donating public. A novel way to present an annual report that offers transparency as well as connections with stakeholders is to host a national conference call. That’s what GuideStar did earlier this year, experimenting with an innovative approach to annual reports.  Read on for insights on how GuideStar used a different annual report model and explore tips from others.​

Planning For and Sustaining Your Organizational Future April 24th: Capacity Building Training Series

Planning For and Sustaining Your Organizational Future [Binghamton]  Offered through the Southern Tier Capacity Building Program Presented by Susan Weinrich, VP, Organizational & Community Development, NYCON April 24, 2014 from 9:30 AM to 1:00 PM    REGISTER   This interactive workshop will explore the varied and often interconnected areas of organizational planning that affect a nonprofit's ability to remain effective, relevant, and sustainable.  Using case studies and real life examples we will discuss issues such as how to build a strategic culture, plan within the ever-changing world of regulatory compliance and systems changes, and ensure that your programs and services are relevant and valued by your consumers and stakeholders.  This workshop will also set the stage for the upcoming workshops in  resource development, governance, creative collaboration, and financial planning and oversight. Date: April 21st, 2014 Time: 9:30am to 1:00pm Cost: Free to nonprofit directors, board and staff (Board Member must register and attend in order to qualify for Capacity Building Mini-Grant and Assessment Programs) Location: Broome County Public Library                Decker Room                185 Court Street                Binghamton, NY 13901   REGISTER    This event is free of charge and offered as a part of the Southern Tier Capacity Building Program. Sponsored by United Way of Broome County, The Stewart W. and Willma C. Hoyt Foundation, The Community Foundation for South Central New York, and Conrad and Virginia Klee Foundation About the Southern Tier Capacity Building Mini-Grant Program Nonprofits who have a Board Member attend will qualify to apply for the 2014 Southern Tier Capacity Building Mini-Grant Program and Assessment Program. The Mini-Grant and Assessment Programs are supported by United Way of Broome County, The Stewart W. and Willma C. Hoyt Foundation, The Community Foundation for South Central New York, Conrad and Virginia Klee Foundation, and United Way of Delaware and Otsego Counties, Inc.

State of the Nonprofit Sector Survey: The Nonprofit Finance Fund

  
  
  

Nonprofit Finance Fund Releases "State of the Nonprofit Sector" Survey Results Nonprofits Striving for Long Term Financial Survival The Nonprofit Finance Fund's sixth annual State of the Nonprofit Sector Report depicts a National Nonprofit sector struggling to meet a heightening demand for services, while at the same time deal with increasing revenue cuts. The results reflect ongoing issues, such as continuing gaps and inconsistencies of funding streams to New York State Nonprofits, which drastically decrease the likelihood of long term financial survival for the State's sector. The survey had a total of 5,019 respondents, with a representative number 462 nonprofit organizations from New York State. For specific data on New York State please click here. Some of the highlights from the Survey comparing New York State and the National Survey results can be found below: NYS matched the National number of 80% of respondents reporting a slight or significant increase in the demand for services.  50% of NYS Nonprofits, compared to the 56% Nationally, were unable to meet demand in 2013- the highest reported in the survey's history. 31% of NYS Nonprofits, compared to 28% Nationally, ended FY2013 with an operating deficit See below for specific New York State data results:   When government contracting payments are late 38% of Nonprofits stated they use reserves while 26% rely on a loan, line of credit, or some other type of debt.   Between 40-45% of Nonprofits stated that their Federal, State, or Local funding had declined.      23% of Nonprofits reported that the Average Indirect Rate paid by the state is 0-3%  50% of Nonprofits reported that NYS contracts are 30 to over 90 days late on payment.   Top barrier reported in measuring impact was not enough staff and time  NYCON will continue to update our members on the latest trends and research on our State's Nonprofit Sector.  Let us know how these trends resonate with your organization, email Amber Vanderwarker, Policy & Program Associate at NYON.