Research and recommendations for effective, day-to-day nonprofit practice from ASU faculty, staff, students, and the nonprofit and philanthropic community.
Wednesday, July 31, 2013
Streamlining your nonprofit’s business: Some legal considerations for forming an executive committee
“We have so many board members, we’re having trouble reaching decisions.”
The time it takes to reach consensus on a board of directors is often directly proportional to the size of the board. It’s simply more efficient to present, review, discuss and decide as a group when the number of members is manageable.
Ironically, a nonprofit that succeeds in recruiting a large number of board members with a passion for its mission can reach a point of diminishing returns, notwithstanding the valuable input each board member brings, because the time needed to give each member a say on every major decision lengthens (sometimes in an agonizing way) the time needed to reach those decisions. One way organizations can improve this process, without reducing the size of the board and the participation of its constituents, is by forming an executive committee.
An executive committee can be given the authority to act on behalf of the board only between meetings of the full board, or might be tasked with considering important matters prior to their presentation at the regular board meeting. Another option is to give the executive committee authority to act with the full power of the board in emergencies.
Whatever the structure and purpose, a clear statement in the bylaws or a resolution by the full board is needed to provide definition and guidance. Here is an example:
Read moreCreation of executive committee:…
Wednesday, July 24, 2013
Board members sometimes stand in the way of what their nonprofit needs most. I’ve written before about the meaningless at best and destructive at worst distinction between “overhead” and “program” dollars. Unfortunately, both board members and donors can sometimes overlook the actual costs of a nonprofit's work and its critical need for investment money in the organization.
Fortunately, board members can break this pattern by helping their nonprofit uncover, plan for and fund the staffing, technology, expertise and systems required to make the organization more effective. Board members need to put their weight behind organization building. And they can start by giving their nonprofit these five priceless gifts:
- Permission to talk about real costs. Don't wear your staff thin by asking them to work with less. Rather than insisting your executive director cut budget on salary, technology, or expert support, consider discussing the true costs of your organization's work and how best to achieve your ambitious goals. Taking a proactive approach on long-term sustainability, will help your organization thrive and make a greater impact.
- …
Wednesday, July 17, 2013
What’s a nonprofit executive to do when all the forces of nature, politics, and the economy conspire to thwart organizational (program and resource) development?
The answer lies in leveraging the crisis strategically for the opportunity that lies within the eye of the storm, in daring to lead beyond expectations and risking professional comfort.
Yes, a unique and seismic convergence of economic (the Great Recession and its aftermath), political (Congressional stalemate on the national budget and sequestration), social (demographic shifts and changes in attitudes and values regarding social responsibility), and technological (the democratization of social media and alternative forms of charitable expression) have taken a financial and programmatic toll on nonprofits. Today’s storm is unlike those of past economic downturns in both scale and duration.
In other words, times are rough for nonprofits, and every indication is that they are going to get even rougher and more challenging. These dramatic changes in the marketplace have broad implications for organizational governance and for the viability of the conventional nonprofit business model.
A number of long-standing organizations have fallen by the wayside. Some are gone because of failures of governance, others because of funding cutbacks they could not withstand, others for their inability to adapt to a highly competitive marketplace. Still others remain at risk,…
Read moreWednesday, July 10, 2013
Supporting a cause is now easier than ever.
Forget throwing on overalls and a pair of gloves to pick up trash or dig through rubble. Never mind laboring in the heat to plant trees or paint houses. Scrap the notion that in order to support a cause, you have to actually get your hands dirty.
These conceptions are facetious, of course, but according to a current trend sweeping the nonprofit scene, all that’s necessary to support a cause you’re passionate about is clicking “like” on a Facebook page. Five minutes and you’ve done your good for the day. Now you can return to perusing Reddit with a smug smile plastered across your face.
Sadly, slacktivism – actions performed via the Internet in support of a political or social cause but regarded as requiring little time or involvement (courtesy of the Oxford Dictionary) – is the popular avenue of support when it comes to contemporary activism. Many charities or nonprofits only require activists to “like our Facebook page” or “retweet this” or “hashtag that.” Sure, work is being done and lives are being improved, but the impact is often times minimal. You don’t have to physically help to help, you simply have to help spread the word, while exuding as little physical activity as humanly possible. But does that really help?
Wednesday, July 3, 2013
Ask a Nonprofit Specialist: What does the repeal of Arizona's solicitation law mean to my nonprofit?
Question: How have the requirements for charitable solicitation registration in Arizona changed with new legislation? What does this mean for my organization? Are we still required to file annual reports? What about internet based fundraising? Are we required to register with other states? Is this good or bad for nonprofits in Arizona?
The Arizona legislature recently passed legislation that repeals Arizona’s solicitation registration laws and the requirement that nonprofit organizations file annual solicitation registration or renewal forms with the Secretary of State. This should not be confused with the Corporate Annual Report required by the Arizona Corporation Commission, which is still required.
Most states typically regulate nonprofit organizations through solicitation laws that are concerned with charitable solicitations from the general public. These laws were designed to protect the public from misleading or unethical fundraising practices.
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