Nonprofits operate within complex legal frameworks that influence their governance. A comprehensive understanding of these laws is crucial for nonprofit leaders to ensure informed decision-making, uphold ethical standards, and maintain transparency and accountability. This blog explores general issues and their corresponding recommendations. Tactics meant to help us navigate these legal frameworks effectively.

Key legal and governance frameworks

Issue: Fiduciary duties lie at the heart of nonprofit governance, compelling board members and executives to act in the organization's and its beneficiaries' best interests. This encompasses care, loyalty, and obedience responsibilities, which align decision-making with the nonprofit's mission and reduce conflicts of interest. Financial accountability is integral and governed by statutes like the Sarbanes-Oxley Act and IRS guidelines, which mandate specific financial reporting and internal controls. These measures are critical to preventing fraud, increasing transparency, and maintaining tax-exempt status—aspects of the organization that build trust with donors and the public.

Recommendation: Many nonprofits adopt best practices from the for-profit sector to meet and exceed these basic requirements, demonstrating…

In nonprofit organizations, where resources are often limited and projects aim to address pressing societal issues, efficient management is critical. To ensure that projects run smoothly, meet their objectives, and stay within budget, many nonprofits are turning to Program Management Information Systems (PMIS). PMIS offers a range of tools and features designed to support project managers by streamlining processes, improving resource management, and enhancing transparency. Here’s how PMIS can drive effective project management and ensure better outcomes for nonprofits.

Real-time data access and decision-making

One of the biggest challenges in nonprofit project management is making timely, informed decisions. With PMIS, project managers can access real-time data on project progress, budgets, and resources. This instant access allows managers to assess whether the project is on track or requires adjustments. Having real-time insights into metrics like funds spent, deliverables achieved, or timelines helps managers make quick, informed choices that keep projects aligned with their goals.

For example, in a project aimed at providing educational resources to underserved communities…

Navigating the financial landscape within nonprofits is often challenging, especially when ensuring staff members' well-being. As organizations strive to fulfill their missions, they must also address the financial strain experienced by their employees. This post explores strategies nonprofits can implement to support their staff members and effectively alleviate financial stress.

Understanding the challenges

Nonprofit workers are renowned for their dedication and passion for their jobs. However, this commitment can sometimes place them in financially precarious situations. Financial stress has a significant impact on employees' mental health and job satisfaction, affecting their overall well-being and productivity. Limited budgets within the nonprofit sector exacerbate these challenges, adding pressure on organizations to meet their employees' financial needs.

Strategies for alleviating financial strain

Fair and Competitive Compensation: Nonprofits must prioritize fair and competitive employee compensation. Conducting regular salary benchmarking and offering non-monetary rewards can help retain staff and boost morale.

Flexible Work Arrangements: Flexible work schedules or remote work…

Nonprofit organizations provide services that are valuable and relied upon by communities. Leadership, represented by the board and executives, is ultimately responsible for nonprofit governance. In the absence of proper oversight and accountability, an organization is not able to consistently provide the support and services to the community for which it was founded. So how do boards and executives work together effectively to achieve the best possible results? In short, by living the mantra coined by John C. Maxwell, “teamwork makes the dream work”. While the cliché rings true, it’s necessary to take a deeper look at the dynamics at play and how nonprofits can best position themselves to promote cohesive leadership.

Board-executive role confusion and conflict is well documented in nonprofit governance research. When conflict arises, the organization and those served by the nonprofit suffer. When conflict is not addressed, it can lead to the turnover of executives and/or board members. The board relies on information from the executive(s) concerning staff management and daily operations. When there is inaccurate, incomplete, or inconsistent information, the leadership is not able to properly assess and act. With deliberate planning, policies, and procedures such instances of conflict…

Retirees aged 65 and older have been the backbone of the volunteer population for years. According to AmeriCorps, in 2023, approximately 41 million retired older adults volunteered with nonprofit organizations nationwide. However, we are seeing fewer individuals retire each year due to financial hardships and the rise in the retirement age. There is a higher rate of retirees leaving the volunteer population than new retirees coming in to replace them, making this gap within the volunteerism pool broader and more expansive. This post will help you to understand how to hold on to your valuable retiree volunteers and who else we can look to to fill this gap in the volunteer pool.

The root of it all: why retirees volunteer 

Volunteerism is a great way for retirees to mingle outside their social circles. After retirement, many individuals look to volunteerism as a way to continue routine and structure in their everyday lives. Not only does volunteering benefit the community, but it also provides health benefits to this population's cognitive and social well-being. Doctors have even prescribed volunteering to patients to boost their mood and mental health. 

Retiree volunteer retention

It is vital to meet the needs of the retired volunteers who are already donating their time to your organization. Retirees want to give their time and talents to a cause they care about without being locked into a long-term commitment. These…