Honored to lead a Board development session last night with the talented and committed Board of JFCS Louisville. Through an impressive array of programs and services, JFCS expands possibilities for each person and every family to meet life’s challenges with confidence.
Honored to lead a session last evening on “Demystifying Donor Advised Funds” as part of the Virtual Summit for Nonprofit Changemakers. Donor Advised Funds are currently philanthropy’s fastest growing vehicle, accounting for over 12% of individual charitable giving. Thoroughly enjoyed the interactive discussion during the session and the outstanding questions. Special thanks to Amy Devita and the team from TopNonprofits for presenting a fantastic learning and relationship building event!
Creating time for Board members to reflect and connect as colleagues and teammates builds the relationships necessary to govern and make effective decisions.
Honored to facilitate yesterday’s Board retreat with the leaders of Allegany Franciscan Ministries.
Allegany Franciscan Ministries is rooted in the tradition and vision of the Franciscan Sisters of Allegany and works with community partners in three regions of Florida formerly served by the Sisters’ hospitals: Miami-Dade County, Palm Beach, Martin and St. Lucie Counties, and the Tampa Bay area of Hillsborough and Pinellas Counties. Since awarding its first grant in 1998, Allegany Franciscan Ministries has invested $101 million to over 1,700 organizations serving those most in need in these communities.
Healthy Boards are intentional about recruiting members who bring a diversity of skills, talents, leadership styles, backgrounds, and perspectives to the team. Honored to facilitate a (socially distanced) Board workshop on recruiting last evening with the leaders of SeniorCare Experts.
Imagine the most energizing meeting you have ever participated in. Perhaps it included colleagues at work, or teammates playing a sport you love. What made that meeting so effective and memorable? Having asked this question of hundreds of nonprofit CEOs and Board members over the years, I’d like to share the consistent themes that have emerged from these conversations that can transform your nonprofit Board meetings from draining to dynamic. Taken together, they provide a framework for reimagining your next Board meeting agenda.
Connect as a team.
Research consistently shows that Boards that take time to get to know one another socially and connect as individuals rather than just as Board members consistently perform at a higher level. It makes sense -- Boards are a team and teams rely on expectations, support, trust, and accountability. Intentionally building time into every Board meeting agenda to connect as people and teammates provides a foundation for effective governance and decisionmaking. You don’t have to facilitate the ultimate icebreaker. Rather, focus on how we as a team can get to know one another just a bit better.
Celebrate progress.
Nonprofits address exceedingly complex and persistent community challenges. A temptation often creeps into our Board meetings to focus solely on how far we still have to go in our mission rather than how far we have come. I challenge you instead to intentionally celebrate progress at every Board meeting. You will find that when you reflect on the progress you have made and the joyful moments experienced since you last met as a Board, a renewed energy permeates the room and carries through the rest of the meeting. Think -- what are we most proud of this month?
Identify and discuss the most pressing challenges.
Board members regularly tell us they are most engaged during meetings that feature discussion and debate rather than simply recitation of reports. Use of a consent agenda -- a mechanism for grouping routine reports into a packet shared prior to the Board meeting -- can free up vital Board meeting time for more engaging and strategic discussions. Additionally, one of the most important skills of a nonprofit CEO is identifying the areas that require Board engagement and discussion. In planning the agenda, the CEO and Board Chair should discuss and agree on the 1, 2, or 3 issues that are most pressing for Board discussion and action at the upcoming meeting. Narrowing the topics and even sharing the vital questions prepares the Board to be strategic, focus on vital topics, and make effective decisions that provide needed direction.
Review commitments.
Productive meetings typically lead to next steps and commitments to action. Before adjourning the meeting, it is important to review these commitments and timeframes for their completion. A savvy Board Chair will ensure that assignments are distributed equitably across the Board team, and place Board members in position to leverage their skills and succeed. Including this step as a part of the meeting agenda promotes accountability on the Board team and closes the meeting with the momentum that comes from having a clear directional roadmap.
Thoughtful, well-structured meetings are essential to maximizing the potential of your Board and propelling your mission forward. If you would like to share your thoughts on dynamic, engaging Board meetings, or you would like assistance, tools, or resources to enhance your Board meetings, Nielsen Training & Consulting is your partner. Let’s connect!
I recently had the pleasure of joining my friend and colleague Janeal Ford of Fordable Fundraising on her live Facebook show Adventures in Fundraising. Janeal and I discussed the growing trend among nonprofits towards sustained collaborations up to and including mergers. I hope you will check out the video!
"It is mutual trust, even more than mutual interest, that holds human associations together."
H.L. Mencken
A common truth exists across the nonprofit sector, bridging organizations of all sizes, shapes, and subsectors. It shines like a beacon from a lighthouse, indicating smooth waters or troubled seas ahead. That common truth is that the most critical relationship in a nonprofit organization is the one that exists between the Board Chair and the CEO.
Board Chairs and CEOs may come from different backgrounds almost assuredly reflecting different life experiences, but together in their hands they hold the promise of what an organization can become and the impact it can have on the lives of those served. Countless resources exist that delineate the roles and responsibilities of a Board Chair and CEO, but far fewer offer practical guidance for nurturing a productive relationship. Here are a few reflections on tending to this most critical relationship:
Begin by Building Trust.
Trust between Board Chair and CEO is the cornerstone upon which all else rests. When the Chair provides guidance or constructive feedback, the CEO must trust that it is coming from a place of good intentions. When the CEO provides information or insights, the Chair must trust it reflects thoughtfulness, reflection, and wisdom. Breakdowns in trust not only damage this relationship, but the ripple effects almost invariably extend to the full Board and staff. Board Chairs and CEOs who invest in building trust with one another create a culture that permeates the organization.
Practices that build trust include weekly “check-in” meetings, a commitment to “no surprises,” and frequent discussion of “what I need/don’t need” in particular situations.
Tend to the transition.
By far, one of the most overlooked aspects of building a strong Board Chair - CEO relationship is the transition period. Transitions are hard! As a former nonprofit CEO, I vividly recall that there is a period of uneasiness any time the Board Chair transitions from one individual to the next. Work and communication styles may differ and without thoughtful preparation and intentional discussions, faulty assumptions can ground a relationship before it ever has an opportunity to blossom.
During the transition period, take time for honest conversations about communication style, expectations, support needed, and methods of accountability.
Embrace your role.
When working with a nonprofit for the first time, one of the first questions I will pose to a CEO and Board Chair involves a request to tell me the story of how and why they came to their current role. The Board Chair needs to know that the CEO embraces leading the organization. Likewise, the CEO needs to know that the Chair wants to be his or her partner. It is like being in a rowboat together where two people must row in sync in order to propel the boat forward. If one person loses interest or quits rowing, the boat goes into a tailspin.
Embrace your role by leading with energy and enthusiasm, setting realistic expectations, and being accountable for yourself and those you lead.
Leading a nonprofit can be a fulfilling and exhilarating challenge, but it can also be a lonely road. Cultivating a healthy relationship between Board Chair and CEO grounded in mutual trust, expectations, and accountability enables leaders to reflect their best self and organizations to thrive.
Whether you are rowing together in unison or struggling to get in sync, I encourage you to connect with us to explore the ways in which together we can help nurture the relationship you need and deserve.
Supporting and evaluating the Chief Executive represents a core duty of a nonprofit Board. A thoughtful, planned evaluation process provides an opportunity to celebrate progress and achievements while also sharing constructive feedback on areas for future development. It should be conducted at least once per year. There are many ways in which a Board can fulfill this responsibility, and no one process will be appropriate for every Board. Rather, it is more productive to focus on a set of core principles when framing a Board’s approach to executive evaluation.
Evaluations tied to written job descriptions and annual goals.
In order to facilitate an equitable process, the review should be tied to identified accountabilities and goals. It should also be consistent with the areas of focus described in the strategic plan. This provides a consistent framework or lens through which the Executive and Board can reflect on performance.
Full participation of the Board.
Depending on the size of the Board, it can be unwieldy to require the entire Board to facilitate the review. Some Boards select an officer to lead the process or house the responsibility within a committee such as the Executive Committee. Others will engage an external facilitator to lead the process. Regardless of who facilitates, a core principle is every Board member should have a meaningful opportunity to provide input. This means that the Board must understand and support their obligation to conduct an annual review and must take the time to reflect on the Executive’s performance and share constructive feedback through the mechanism chosen.
Collaborative process design.
Let’s face it -- because of power dynamics, relationships, and a host of other factors, Executive reviews can be uncomfortable for all parties. This probably accounts for the number of nonprofit Executives I speak with who haven’t had any review in years! One way to make the process more comfortable is to involve the Executive in its design. Key questions Board leaders and the Executive can address together include:
Will the Board facilitate the process or engage an external facilitator?
Will the Board be seeking the feedback of any senior staff members as part of the review and if so how?
Will a particular assessment tool or instrument be used?
How will the Executive be afforded the opportunity to provide reflections and information
Commitment to professional development.
Most Executive evaluations reflect instances of accomplishment as well as areas to further develop. If you refer back to the opening sentence of this article, I note that evaluating and supporting the Chief Executive is a core responsibility of the Board. The two go hand in hand. The review provides a needed goal-setting opportunity for the coming year. Additionally, healthy Boards use the annual review as an opportunity to support the Executive’s leadership growth through investment in meaningful professional development. When planned and conducted thoughtfully, an evaluation can be a tremendous way to strengthen the relationship between Board and Executive and keep needed lines of communication open.
The core principles discussed above represent a guide to help your organization conduct an effective evaluation. If you are interested in additional tools and guidance, including information on a facilitated Executive evaluation process, NTC CAN HELP -- contact us!
I am excited to share that I will be speaking at the upcoming Virtual Summit for Nonprofit ChangeMakers hosted by TopNonprofits on September 15 and 17!
I will be leading a workshop based on one of our Signature Programs — Demystifying Donor Advised Funds (DAFs). The workshop will be a highly interactive discussion of DAFs, which are philanthropy’s fastest growing vehicle, and will include tools and tips for engagement that will elevate your organization’s fundraising effectiveness.
The Virtual Summit for Nonprofit Changemakers offers a tremendous professional development opportunity at a reasonable cost for nonprofit leaders, and includes sessions from 20+ Nonprofit Experts over 2 days, addressing critical issues facing nonprofits today in Fundraising, Development, Marketing and Operations in LIVE, ONLINE Virtual Sessions. Learn How-To, Best Practices, & What’s Coming Next from the top experts in the industry. Build relationships in small, informal chat rooms during breaks and connect with the businesses supporting the nonprofit sector. Plus, you get a virtual gift-bag full of apps, subscriptions, ebooks, and more to help you utilize what you have learned during the summit.
I invite you to join me at the Virtual Summit!
It is estimated that up to 85% of individuals/orgs will have fully spent their PPP funds by early August. What happens next? Gary Romano of Civitas Strategies and I share the latest we are hearing from D.C. and the nation.
4 Pathways to Sustained Collaboration
Collaboration has always been a hallmark of the nonprofit sector. Studies repeatedly show that nonprofits collaborate with one another far more than many suspect. These efforts may take a variety of forms, which is the first important truth to realize about collaboration -- namely, it represents a spectrum of possibilities from associations to partnerships all the way to mergers at the far end of the spectrum. The term I most like when discussing this topic is “sustained collaboration,” as it encompasses the many possibilities along the spectrum.
As the Covid-19 pandemic and other realities continue to impact nonprofits across the country, many are now more intentionally investigating sustained collaborations, either for strategic or survival purposes. While certainly not an exhaustive list, in working with nonprofits I have found 4 common pathways to sustained collaboration.
Increased ability to deliver services.
Many nonprofits have developed an innovative approach to addressing complex community challenges that has proven effective. However, the limitations of their geographic reach, staff capacity, or financial position prevent them from expanding their service delivery. Sustained collaboration with a partner can be a means to expand reach and impact.
This may benefit you if: There is demand for your programs outside your current service area that you cannot meet.
Common strategic vision.
Frequently, two organizations build a relationship over time. They may start by sharing information about their shared mission focus. Over time, they may grow their collaboration to include a partnership on program delivery. At some point, they may sit down and realize there is synergy and alignment in their respective strategic visions for the future. This relationship based model can often lead to highly successful sustained collaborations (occasionally even mergers) because it is built on a strong foundation of trust and shared focus on a common vision for the future.
This may benefit you if: You have identified a current collaborative partner with whom you share a common strategic vision and desire to work more closely.
Increased efficiency.
There is a common refrain many nonprofit leaders have heard repeatedly throughout their career -- “There are simply too many nonprofits in our community and they are duplicating services.” While we can debate the merits of this statement, the duplication that is of most concern and presents the greatest opportunity for sustained collaboration is administrative duplication. Let’s face it -- it takes significant administrative resources to sustain a nonprofit, from human resources to finance to payroll. Many nonprofits have successfully increased the efficiency of their organizations through sustained collaborations to share administrative infrastructure and operations. When structured thoughtfully, this enables nonprofits to focus a greater amount of their limited resources where they can have the most impact, on programs enhancing communities.
This may benefit you if: You seek to gain economies of scale by sharing administrative functions or your organization is vulnerable to key staff losses in administrative areas.
Survival.
It has never been more challenging to lead a nonprofit than it is right now. Many organizations have teetered perilously close to the brink of closure for an extended period of time due to a multitude of factors. While Covid-19 didn’t create the financial challenges pervasive in the nonprofit sector, it certainly has laid them bare and exacerbated them. Recent studies illustrate the urgency of the situation:
Between March and April 2020, the percentage of nonprofits reporting a drop in monthly revenue rose from 70% to 90%.
More than 55% of nonprofits reported anticipating cutbacks in services
More than 44% anticipate more staff layoffs to come
Nonprofit leaders are working to and often past the point of exhaustion attempting to keep their organizations afloat. This has led many to consider the possibility of merger as a survival strategy to preserve the mission.
This may be for you if: Organization business model is no longer viable or streams of revenue have been damaged so extensively that ongoing viability is a concern.
Sustained collaborations are neither easy nor fast, but when entered into thoughtfully can provide benefits that allow for the expansion of services, advancement of a common vision, and preservation of organizational impact. Frequently, engaging with an external thought partner can be a helpful first step in exploring a holistic process that will encompass not only the legal and financial due diligence necessary, but also considerations of governance, leadership, and organizational culture. If your organization is contemplating a sustained collaboration, I invite you to connect with me for further discussion of this important topic.
Realize PPP forgiveness with an informative webinar, step-by-step guide, and access to experienced professionals!
The Civitas Strategies and NTC team has helped over 100 organizations secure PPP funding, with amounts ranging from greater than $1 million to less than $5,000. Learn from our experience!
The Paycheck Protection Program (PPP) provided a path for nonprofits and for-profits get the funding they need to survive the COVID-19 pandemic. If you have the loan, you’ve made it halfway- now you need to apply and secure forgiveness. Unfortunately, the process is even more convoluted than the application.
Drawing on our support on the PPP to organizations across the U.S., Civitas Strategies and Nielsen Training and Consulting are offering a limited-time opportunity to help you painlessly navigate the forgiveness process.
The PPP Forgiveness Support Package includes:
Live webinar with the CEO of Civitas Strategies or Nielsen Training and Consulting to learn about the forgiveness process.
Step-by-step guide for filling out your forgiveness request explaining every field on the forms.
Ability to email senior consultants with any questions that arise while you apply for forgiveness. Register now!
Package Price: $89.95
*Register between now and July 24 and use the code PPPNOW to get 25% off the cost of registration!
A Board retreat represents a great opportunity to reconnect as a team, revisit strategy, and embrace challenging conversations. Enjoyed facilitating today's Board retreat with the talented team of Alpaca Owners Association, Inc.!
Developing rules of engagement for virtual meetings together with your Board is an important step towards creating a culture of performance. Enjoyed leading a highly interactive workshop on "Habits of Healthy Boards and Managing Effective Virtual Board Meetings" with the talented leaders of American Health Information Management Association (AHIMA). What is your favorite tip for effective virtual meetings?
Fostering and embracing ongoing conversation about strategy is vital for healthy nonprofits. Honored to facilitate a staff strategy retreat this week for the amazing leaders of CASA of Lexington. CASA of Lexington’s trained and supervised volunteers advocate through the family court system to ensure all victims of child abuse and neglect are safe and thrive in a permanent home. Whether you are in one of the counties they serve or elsewhere around the country, I highly encourage all to consider serving as a CASA volunteer!
Many conversations about Donor Advised Funds (DAFs) unfortunately devolve into "good vs. bad" rather than embracing the deeper, more critical conversations needed when talking about philanthropy's fastest growing vehicle. Therefore, when I see an article that delves deeper, it immediately grabs my attention! The CEO of FJC - A Foundation of Philanthropic Funds, recently published a thoughtful piece on the blog of the Center for Effective Philanthropy entitled “The Power (and Challenges) of Mobilizing DAFs in a Time of Crisis.” One fantastic question posed by the article linked below is:
"This highlights the important question about whether DAF sponsors should primarily be a mechanism for individual giving, or whether there’s a role for sponsors in inspiring their donors to consider different, and potentially more equitable, approaches to their philanthropy."
If your Board, leadership team, or development team are interested in learning more about Donor Advised Funds, we have created a Signature Program entitled “Demystifying Donor Advised Funds.” In a highly interactive format, this workshop discusses donor advised funds, how they differ from private foundations, tips for engagement, critiques and potential reforms. If you’d like to learn more, contact us today!
Recently, the Giving USA 2020 report was released. Giving USA, the longest-running and most comprehensive report on charitable giving of its kind in America, is published by Giving USA Foundation. It is researched and written by the Indiana University Lilly Family School of Philanthropy at IUPUI. The report paints a picture of an uneven charitable giving landscape, with plenty of caution flags and opportunities for nonprofit leaders. A note of caution in reading the report since the country has experienced significant challenges in recent months. Key findings from the report include:
American individuals, bequests, foundations and corporations gave an estimated $449.64 billion to U.S. charities in 2019, placing it among the highest years ever for charitable giving
Total charitable giving rose 4.2% measured in current dollars (2.4% adjusted for inflation)
For only the second time since Giving USA data began to be published in 1955, individual contributions constituted less than 70% of charitable giving.
There is a clear trend downwards in total donors and greater disparity in gift size as the report shows $6.57 billion in mega-gifts (defined as $300 million and above). This trend has been referred to as “Dollars up and donors down.”
A few of my own thoughts and observations in reading the report:
The widening gap between "mega-gift" philanthropy and individual giving bears watching because of its potentially negative consequences for small-mid size nonprofits.
"Dollars up, donors down" is not a formula for success for the vast majority of nonprofits
Proposals for a universal charitable giving incentive are vital to engaging greater numbers of donors in philanthropy, particularly at the grassroots level and particularly for younger generations. Bonus Takeaway
Savvy nonprofits will pay close attention to the continued rise of Donor Advised Funds (DAFs) as philanthropy's fastest growing vehicle and invest time and resources in strategies to engage DAF sponsors and holders.
If your leadership team and/or Board would like to connect to discuss your fundraising effectiveness or explore our signature “Demystifying Donor Advised Funds” workshop, let’s connect!
Congress has passed — and today the President signed — the Paycheck Protection Program Flexibility Act (PPPFA). Among its major provisions, the bill provides borrowers with additional flexibility and time to use PPP loan funds and still receive forgiveness on the loan. Highlights of the bill and lingering questions include:
PPPFA extends time period to use funds from 8 to 24 weeks.
Borrowers now have 24 weeks from the disbursement of their loan to use PPP funds, though they may still elect to use the 8 week period if beneficial.
Big Question: Does this mean 24 weeks of payroll or just 8 weeks of payroll that can be expended over 24 weeks? Guidance is still pending.
PPPFA reduces the amount of the loan needed to be spent on payroll from 75% to 60%.
Borrowers may now spend up to 40% of PPP funds on approved non-payroll expenses such as rent, utilities, and mortgage interest.
PPPFA extends the amount of time to rehire workers from June 30 to December 31.
This provides additional needed flexibility, especially for borrowers whose operations are significantly impacted by Covid-19.
Big question - what if you opt for an 8 week forgiveness period- do you still need to have the same FTEs in December?
PPPFA relaxes re-hire requirements in specific instances.
Borrowers may receive an exemption from a reduction in loan forgiveness if in good faith they can certify an inability to rehire eligible employees, similarly qualified employees, or return to a similar level of business activity of before February 15, 2020.
PPPFA changes the repayment term from 2 to 5 years.
The 1% interest rate on the loan remains unchanged.
Big question- who will have the authority and what will the process be for changing the terms of the loans?
Many of these changes stand to benefit nonprofit organizations around the country who have taken advantage of the funds available through the PPP. Sign up for our emails HERE — Nielsen Training & Consulting will continue to monitor critical legislation that impacts nonprofits and provide updates and analysis as available. Stay well friends!
Speaking with your Board about their performance can be a challenging -- and pivotal -- moment for any nonprofit leader. I invite you to join me and Dennis C Miller this Wednesday, June 3 at 1pm for a FREE webinar in which we discuss "How to Speak Authentically With Your Board About Their Performance.
Developing a dynamic and engaged Board is vital to the success of your mission. It doesn’t happen overnight, but is the product of intentionality, engagement, and effort.
Honored to facilitate Board development webinars this week for the leaders of two outstanding organizations — Kentucky CASA Network and Hershel Woody Williams Medal of Honor Foundation.
The Kentucky CASA Network (KCN) is supports a statewide network of local, community-based CASA programs, through which trained volunteers advocate for the best interests of children who have been removed from their families because of abuse or neglect. The KCN aims to support local programs by providing resources, technical assistance, and advocating in their interest.
The Hershel Woody Williams Medal of Honor Foundation encourages, with the assistance of the American public and community leaders, establishing permanent Gold Star Families Memorial Monuments in communities throughout the United States, conducting Gold Star Families Outreach across the country, providing Living Legacy scholarships to eligible Gold Star Children, and advocating for educational benefits for all Gold Star Family members.
Board Champions is a year-round, fully customizable Board development program, designed to partner with you in building a Board team capable of translating bold vision into reality. If you are looking to elevate the performance and effectiveness of your Board, let’s connect!