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At LAPA, we have long promoted evaluation not only as a means of keeping funders informed, but also as a tool to help you know when you are successfully fulfilling your organization's mission. I am humbled to let you know that, coinciding with our tenth anniversary in 2005, we are undertaking an evaluation of our own--a self-assessment to determine the extent to which LAPA achieves its mission of helping nonprofit organizations improve their management, program, and fundraising performance.
We plan to use the information gathered to strengthen our services. Also, we hope to contribute to the larger field of nonprofit capacity building by disseminating (through a published article) the lessons we have learned over the past decade and what remaining challenges remain.
We are delighted to be working with Strategists, Inc. and its president, Debbie Mason. Strategists, Inc. has a long track record of providing research, strategic planning, and communication counseling services to nonprofit organizations and corporations. (Yes, even consultants sometimes need to hire consultants!) Michelle Portlock, a Strategists Inc. consultant, is temporarily based at our office during this project.
We are excited about this self-assessment and see it as an important means to keep LAPA's services fresh, relevant, and effective.
In the interest of helping you advance your mission in the shorter term, I offer this edition of LAPA News & Views. In it one of our associates, Michael Davidson, offers his experienced view of working with boards. Raissa Smorol reflects on an extraordinary new article by Bill Shore of Share Our Strength. Finally, Bodi Luse answers your questions about avoiding a year-end deficit.
Laurence A. Pagnoni, MA, MPA
lpagnoni@lp-associates.com
P.S. Feel free to forward this newsletter to others whom you feel it would benefit. If you would like to be removed from our list, follow the instructions at the end of the page. Thank you and enjoy!
P.P.S. We have added new staff photos to the "associates" page of our Web site. If you've ever wanted to catch a glimpse of some of our core staff members, now is your chance! Visit: http://www.lp-associates.com/associate.htm.
| 2005
is LAPA's Tenth Anniversary--It remains our privilege to help you
make a positive difference in your communities! |
by Michael Davidson, Nonprofit Management Services
[Note: Below is a summary version of the article. The full article, with more specific suggestions on working with your board, is available at: http://www.lp-associates.com/boardsthatwork.htm.]
Often the most effective boards are those whose members commit their time, energy, and resources. To understand this idea, it is important to look at the dynamics which motivate energized and committed board members.
1. The executive director has a critical role in creating the environment in which the board operates. An executive director who regards the board as an impediment to the agency's management, or considers boards "more trouble than they are worth," is playing a large part in creating boards that are just that.
2. Volunteers join boards because:
-- The mission of the organization is meaningful to them.
-- They want to help achieve that mission in community with others.
-- They want to use their skills to advance that mission and to have an opportunity to develop new leadership skills.
Boards that work best are those that demand the most from their members, not the least!
3. Board members will do their best work when they are aware of how that work connects with their values. This reflection can be accomplished at a board meeting by setting aside a few minutes at the end for board members to evaluate the meeting. You will be amazed at what you learn!
-- Michael Davidson has more than 20 years experience in nonprofit management as a board president, manager, and consultant. He is an instructor at the Milano Graduate School of Nonprofit Management and is on the Steering Committee of the New York Technical Assistance Providers Network.
by Raissa Smorol, LAPA Associate
Every now and then we read something here at LAPA that particularly inspires us. One example is an editorial written by Bill Shore, executive director of Share Our Strength, that appeared in The Boston Globe on December 12, 2004.
The editorial makes three main points that address common misconceptions held by donors and propagated by nonprofits. Shore argues that:
-- "A little does not go a long way." It is tempting to tote our ability to make precious dollars stretch in the nonprofit world. However, the truth is that solving society's most pressing ills requires a lot of "time, talent, and treasure." We should be more honest with donors about the reality of our work--societal change is a long-term and expensive commitment.
-- "Impact counts more than overhead." Using administrative overhead alone as a measure of effectiveness is flawed. It tells us nothing about how well nonprofits are achieving their missions. Donors and nonprofits would be better served to examine multiple measures of impact.
-- "What you least wish to pay for is often most important." Many donors hold a belief that their dollars should only go towards direct service. This excludes critical functions of strategic planning, advocacy, and capacity-building--the very functions that make direct service effective!
The editorial reinforces LAPA's view that nonprofits have a responsibility to educate their donors about where, how, why, and when to give. Often organizations treat funders differently from other stakeholders in their work. They shy away from having tough conversations about real funding needs because they fear exposing unflattering truths or losing a revenue stream.
Ultimately, however, nonprofits must help move donors towards better philanthropy by training them to appreciate the full continuum of nonprofit needs. When they do so, donors feel a greater satisfaction with and connection to the organizations, and nonprofits benefit from long-term, deep funding commitments.
One way to begin this dialogue is to invite your top ten donors to a private roundtable discussion with you about these issues, then sit back and listen. The full text of Bill Shore's editorial can be found at: http://www.boston.com/news/globe/editorial_opinion/oped/articles/2004/12/12/shortsighted_charity_donors/
Q. Dear LAPA,
This past year my organization ended its budget cycle with a deficit. I was caught by surprise. Short of just having more money, is there any way I can avoid this situation in the future?
- Randy in Manhattan
A. LAPA Associate Bodi Luse responds:
Dear Randy,
Since LAPA serves emerging nonprofits that usually operate on tight budgets and that can sometimes face a serious cash flow difficulty, we often encounter problems like this.
Obviously, effective budgeting for a given year and close monitoring of budget-to-actuals is critical in keeping your organization out of the red. But we also recommend other strategies to avoid facing a surprise deficit.
Set a reminder for yourself four months before the end of your fiscal year to examine your current finances. (Organizations that end their fiscal years in June should do this in March.) You can then orient your fourth quarter fundraising to meet any projected shortfalls. This level of vigilance can make a big difference in helping you close out your year with a balanced budget. If the situation looks especially dire, you can make an emergency appeal to donors describing unforeseen expenses incurred during the year. Or you can meet with your treasurer and recommend a detailed plan for reducing expenses.
One of our clients recently faced a cash flow crunch and risked a year-end deficit after an unfortunate series of plumbing disasters that resulted in costly site repairs. However, this client was able to approach a select group of loyal donors who proved sympathetic to the unexpected dilemma and were willing to cover the gap. If the agency had not done this, it would have ended the year with a deficit and impaired its future ability to raise funds.
In the case of larger budget shortfalls, a combination of stepped-up foundation proposals and in-person meetings with major donors during the fourth quarter can make a significant impact on the final balance of your accounts. Approaching your current foundation funders to ask for a special gift can also be effective; because they already know you, they are often more willing to consider unusual circumstances. (You should never ask a funder to give simply for the purposes of covering a deficit, however.) Remember, for groups that end their fiscal year in December, end-of-year giving usually makes the fourth quarter the most lucrative.
Yours,
Bodi
DO YOU HAVE QUESTIONS FOR LAPA? Please e-mail your queries to lpagnoni@lp-associates.com
with the subject "Ask LAPA." Our team will answer as many of your questions
as possible in future newsletters.
Mark Engler, BA
Enid Harlow, MA
Jenk Kurt, BS
Bodi Luse, MS
Elsa Ríos, MSW
Julia Ritchie, CSW
Dwayne Sampson, BA
Melissa Shurkin, MMHS
Raissa Smorol, MPA
Bob Zuber, EdD
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