I'm going to let you in on a little trade secret. If you hire me to be your consultant or your grant proposal writer, you won't be my only client. The continued viability of my business (and my mortgage payments, etc.) depends on my juggling several clients at a time.
I doubt any other consultant (nonprofit or not) is any different. We may have one or two "main" projects at any one time, supported by a few "back burner" projects that are less demanding, but we all have multiple clients - - or we're looking for a job.
When working with me - or any other consultant, grant writer, or other contractor - it's going to be up to you to make sure that your project remains off the back burner and stays on the top of our to-do lists. If you want to get the most out of your relationship with a consultant, you have to be proactive in the communications.
I keep calendars of important dates for each of my clients - meetings, due dates, etc. - but it is your responsibility to review that calendar too. If you're concerned that a deadline is coming up, don't be afraid to call or email and remind me.
I rarely, if ever, miss deadlines. But I admit that sometimes I get uncomfortably close for my clients. It's my fault, it's true. But it's your deadline too.
Bug your consultants. You are paying us for the right to bug us. Get your money's worth and stay in contact. Because the clients who I do pay the most attention to are the ones who don't let me slip away.
Okay, confession time is over.
Tags: consultants, deadlines, trade secrets, clients
Thursday, July 27, 2006
Tuesday, July 25, 2006
Volunteer Match
I'm in the midst of planning an event and meeting for one of my nonprofit clients right now, and we're in need of volunteers to help the day run smoothly. In addition to sending out emails to all our networks, I also just posted a listing for the event on VolunteerMatch.org.
VolunteerMatch is a great resource that I've used many times in different organizations. Basic membership and local listings are free, premium membership and wider broadcast of your volunteer opportunities are by subscription.
If your nonprofit uses volunteers, either occasionally or on a regular basis (and what nonprofit doesn't?), then you should consider joining and adding a listing at VolunteerMatch.org.
Tags: nonprofit, volunteers, resource
VolunteerMatch is a great resource that I've used many times in different organizations. Basic membership and local listings are free, premium membership and wider broadcast of your volunteer opportunities are by subscription.
If your nonprofit uses volunteers, either occasionally or on a regular basis (and what nonprofit doesn't?), then you should consider joining and adding a listing at VolunteerMatch.org.
Tags: nonprofit, volunteers, resource
Friday, July 21, 2006
Tainted Money?
What if a major donor of yours - one whose name is featured on your building plaque - were to be arrested and found guilty on charges of fraud and embezzlement? Would you remove his name from your building? Would you return the money? Would you make a donation to the fund for those who he swindled?
These are not just abstract ethics teasers for the many organization in the Aspen, Colorado area that were philanthropic beneficiaries of the late Ken Lay, who died just after conviction (but before sentencing) for his role in the Enron scandal.
The Aspen Music Festival and School is one organization facing this question. Their Garden Court bears the Lay name in prominent signage. The University of Missouri is wondering what to do with a $1.1 million endowed professorship Lay donated to the school's department of economics. In Katy, Texas, the YMCA of Greater Houston has no such problem; Lay wrote them a letter just after his conviction asking them to remove his name from their facility.
Had Lay lived, would he have released all of his Foundation's beneficiaries from their obligation to recognize him as a donor? This is a question of donor intent that we may never know the answer to. Meanwhile, nonprofits have to decide what they will do about it.
When Robin Hood steals from the middle class to enrich himself, but then gives a little bit back to the poor, how tainted is that money? Do you continue to promote your association with a questionable donor?
Public relations expert Jeanette Darnauer, owner and founder of Aspen-based Darnauer Group LLC, thinks distance is the best policy:
Tags: nonprofit, ethics, donors, Ken Lay
These are not just abstract ethics teasers for the many organization in the Aspen, Colorado area that were philanthropic beneficiaries of the late Ken Lay, who died just after conviction (but before sentencing) for his role in the Enron scandal.
The Aspen Music Festival and School is one organization facing this question. Their Garden Court bears the Lay name in prominent signage. The University of Missouri is wondering what to do with a $1.1 million endowed professorship Lay donated to the school's department of economics. In Katy, Texas, the YMCA of Greater Houston has no such problem; Lay wrote them a letter just after his conviction asking them to remove his name from their facility.
Had Lay lived, would he have released all of his Foundation's beneficiaries from their obligation to recognize him as a donor? This is a question of donor intent that we may never know the answer to. Meanwhile, nonprofits have to decide what they will do about it.
When Robin Hood steals from the middle class to enrich himself, but then gives a little bit back to the poor, how tainted is that money? Do you continue to promote your association with a questionable donor?
Public relations expert Jeanette Darnauer, owner and founder of Aspen-based Darnauer Group LLC, thinks distance is the best policy:
An organization's reputation takes years to build and it can be destroyed in a heartbeat. I think the music festival should do what's right to maintain their integrity and to protect their reputation. I certainly think they have a stellar reputation. But Ken Lay was convicted of hurting a lot of people. Any continued association with him is negative for the festival. I don't think they should disgrace their name by continuing to honor him by leaving his name in a place the public can see.If you were on the board of the Aspen Music Festival and School, what would you do?
Tags: nonprofit, ethics, donors, Ken Lay
Wednesday, July 19, 2006
Transferring Assets Between Nonprofits
Here's a question that I received by email this week:
Interesting question! If you are asking about IRS rules for transferring assets to another nonprofit, I don't think it's very difficult at all, although you should consult with your accountant to make sure it's done properly.
I think the bigger question here is the ethical one. What was the donor's intent?
If the money were from a grant, or from a single large donor, there'd be no doubt that you'd have to have a conversation with that funder about your intentions and to get their approval for the transfer.
Your email suggests to me, however, that it was from many smaller donors as part of an event that you held, making it more difficult to ask each donor.
Many nonprofits would (erroneously) assume that money raised this way is completely unrestricted and that they can use it for whatever purpose they choose. But, you really have to look at how the event was advertised, and what implied promises were made regarding how the money raised would be spent.
If the nonprofit you wish to give a portion of the proceeds to has very little to do with your mission, or the program promoted in association with the event, then it's probably not a wise decision. For example, a child welfare organization giving a portion of their assets to an addiction recovery clinic.
If, on the other hand, the reason for the transfer is that the other organization is now running the program that the event was held to support, it is clear that moving the funds would keep with the donor's intent. For example, if you were partnering with the other organization on the project, but they are now the sole fiscal agent for it.
In a situation where a nonprofit is dissolving and closing operations for good (such as in a bankruptcy), one of the last decisions the Board is required to make is to select a successor organization with a mission as close to the old organization's as possible to receive any liquidated assets once creditors are fully paid. As a nonprofit, these remaining assets cannot be taken as profits; they must remain with a 501(c)(3) (or similar) organization.
I hope this information helps in your decision. Please let me know if you have any follow-up questions.
Tags: nonprofit, fundraising, ethics, donor intent
What are the rules for giving part of your profits from a fundraiser to another nonprofit?What follows is from my email response:
Interesting question! If you are asking about IRS rules for transferring assets to another nonprofit, I don't think it's very difficult at all, although you should consult with your accountant to make sure it's done properly.
I think the bigger question here is the ethical one. What was the donor's intent?
If the money were from a grant, or from a single large donor, there'd be no doubt that you'd have to have a conversation with that funder about your intentions and to get their approval for the transfer.
Your email suggests to me, however, that it was from many smaller donors as part of an event that you held, making it more difficult to ask each donor.
Many nonprofits would (erroneously) assume that money raised this way is completely unrestricted and that they can use it for whatever purpose they choose. But, you really have to look at how the event was advertised, and what implied promises were made regarding how the money raised would be spent.
If the nonprofit you wish to give a portion of the proceeds to has very little to do with your mission, or the program promoted in association with the event, then it's probably not a wise decision. For example, a child welfare organization giving a portion of their assets to an addiction recovery clinic.
If, on the other hand, the reason for the transfer is that the other organization is now running the program that the event was held to support, it is clear that moving the funds would keep with the donor's intent. For example, if you were partnering with the other organization on the project, but they are now the sole fiscal agent for it.
In a situation where a nonprofit is dissolving and closing operations for good (such as in a bankruptcy), one of the last decisions the Board is required to make is to select a successor organization with a mission as close to the old organization's as possible to receive any liquidated assets once creditors are fully paid. As a nonprofit, these remaining assets cannot be taken as profits; they must remain with a 501(c)(3) (or similar) organization.
I hope this information helps in your decision. Please let me know if you have any follow-up questions.
Tags: nonprofit, fundraising, ethics, donor intent
Monday, July 17, 2006
Charity or Philanthropy?
Karen Woods, of the Acton Institute, has a new commentary posted on Charity vs. Philanthropy in which she draws a distinction between philanthropy (of the sort practiced by Warren Buffett, Bill Gates, and others) and charity (as practiced by the average person):
Of course, by these definitions, we'd all prefer to be the beneficiary of Philanthropy rather than just charity. But, as Woods points out, while philanthropy may be attractive to our budget process, most nonprofit work "is generally conducted by small, community based, often faith-informed, programs without dependence on big government" - and that is her definition of charity.
Tags: philanthropy, charity, donors, nonprofit
Philanthropy, for all its good intentions, does not necessarily imply a personal connection with the needy person - though it can and sometimes does. Philanthropy is the more institutional, "big-picture" cousin of charity, which is the personal and direct connection to those in need.It's an interesting distinction she draws, with a focus on the importance of that personal, grass-roots connection that small-donor charity brings. In Woods' view, one is the micro and the other the macro, and both are necessary.
Of course, by these definitions, we'd all prefer to be the beneficiary of Philanthropy rather than just charity. But, as Woods points out, while philanthropy may be attractive to our budget process, most nonprofit work "is generally conducted by small, community based, often faith-informed, programs without dependence on big government" - and that is her definition of charity.
Tags: philanthropy, charity, donors, nonprofit
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