Archive for the ‘nonprofit’ Category

It was a beautiful fall day when more than 30 organizations came together to share their thoughts on what was happening in Lake and Geauga counties.   There were similarities between what we heard in some of our Cuyahoga County conversations but also subtle differences as well as new ideas that were raised. 

Here are my recollections based on notes and the dialogue we held as a group:

In terms of challenges, agencies talked about an increase in demand for services which in some instances meant an increase of clients placed on waiting lists.  Others noted a shift in the needs of clients with many requiring more financial assistance, most likely due to the prolonged economic downturn.  Agencies, like their counterpoints in Cuyahoga County, were worried about state budget cuts and how to find other sources of funds to make up for those diminishing dollars.  Many suggested that nonprofit organizations did not have the capacity to develop additional resources. Finally, some noted that for those agencies that rely on memberships – either individuals or organizations – this was an expense some had to drop despite the value of the services.

In terms of opportunities, agencies were finding creative ways of doing more with less but some noted the need for more volunteers to help with implementing their missions.  For those who were doing this well, it was an opportunity to share its knowledge with others.  In shifting or re-thinking its priorities, agencies felt they had the ability to conduct operations differently, perhaps collaborating with another agency or reaching out to a specific segment of the community.  Individuals noted the opportunities in health (but with the challenge of implementing electronic health records), with stimulus dollars and in buying property that once were impossible to afford.  

The group had a long discussion about the role of boards and the need for training around responsibilities, particularly in the area of fundraising.  Topics including finding good board members, the time needed to education and train individual members and the impact on the executive director when good board members rotate off. 

The nonprofit community appreciated the role of the Lake-Geauga Fund in the community and having an office that was centrally located.  Many liked having the inquiry first, rather than submitting a full proposal.  One area that the community asked the foundation to think about was having flexibility in reporting deadlines.  Many times the results of the project are not yet fully known when the project is “officially” done.  Given the importance of outcomes, it was suggested that important data may be missing from these final reports. 

Another related topic of conversation was the need for balance with operating or infrastructure support to ensure quality.  Some participants noted that agencies are being held to very high standards in terms of deliverables or outcomes.  At the same time, many funding sources such as the Federal or State government, United Way, and foundations put strict limits on administrative expenses.  Grantees asked for a better balance and flexibility as it felt like most funders were tipping toward project-only support which was causing a lot of pain for the nonprofit community.   Participants asked the funding community for a deeper appreciation and/or understanding for the need for quality staff, updated systems, equipment and supplies to ensure the best possible outcomes for the clients being served. 

What else should we be talking about?  Let us know…

Over the past few months, the community responsive team has held another series of dialogues with nonprofit agencies in branches of the Cleveland library system. 

We have had the privilege of meeting with over 130 individuals representing the many sectors of the nonprofit community.   During these sessions, we gave an overview of grantmaking at the foundation; shared what we learned in our first round of community conversations as well as the Center for Effective Philanthropy survey; and what we have done, to date, with these suggestions.  And then we asked our partners to think about and respond to the following questions:

• What are the challenges and opportunities facing your organization in the next 18 months?
• What is working well with the Cleveland Foundation?  What could be improved?
• How do we build better relationships with our grantees?

This blog will focus on the first question – the challenges and opportunities of the coming year for nonprofits.  Our nonprofit colleagues broke into groups of 4-6 members to share and discuss the opportunities that the agency they worked for was facing as well as what they had heard from other groups.  Here is some of what we heard:

As you can imagine, there were many challenges particularly as the fall-out from the economic downturn continues.  Grantees talked about the increased need for services, the increased complexity of those needs and the changing face of that client as individuals struggle to find employment.  The issue of long term unemployment and its impact on the families and the community was on the minds of many.  Grantees were working hard to meet those needs but fundraising was a concern particularly in light of the state and county budgets. Some noted the strain on staff due to the increased need in this community.  There were questions about the impact of the current county scandal and how the new county government would affect organizations. 

Grantees noted the passion of their staff and the increased workload.  One agency leader noted that during tough times, professional development and/or training is sometimes the first item to be slashed from the budget.  Yet, professional development is a critical tool to ensure that staff is ready to meet the increased demand, avoid burn-out and help retain quality staff.

We heard that committed donors were decreasing support, it was hard to engage new donors, and competition was stiff for tight resources.  Grantees wondered about what happens after the stimulus dollars are spent while others noted that government funding opportunities were targeted and time-limited.  Finally, some of our grantees spoke about the concern around putting basic needs first in terms of funding.

Yet the participants shared many opportunities to explore in the coming months.  Attendees talked about the openness to change, sharing resources and information and the prospect of building on the strengths of the nonprofits.  Others spoke about how to engage volunteers more fully in the work while others talked about how technology could support new ways of providing services.  Many talked about the opportunity of connecting organizations for deeper collaboration and enhanced efficiencies.  Others noted that with the shortage of capital that this might provide the opportunities to reinvest in existing assets.

Several members of the community strongly believe that now is the time to focus on the benefits of nonprofits as an industry.  Nonprofits contribute to the economic development of the region through its employment base and resulting payroll taxes, its ability to attract people to the region, its safety-net features and more.  How do we make sure this message is heard in our community?

In the coming year, nonprofits will be taking advantage of many of these opportunities to tell its own individual story better to ensure that its mission is implemented effectively and clients or patrons are served.  Are there other critical opportunities or challenges that we missed? 

Let us know….. and next week I will focus on sharing the other feedback that we heard from our partners.

Earlier in my career, I was part of a rather large agency that merged with another to create a new entity. 

The rationale for the merger was that: 

• both organizations had similar missions, i.e. programs serving children and families,
• one entity would be more effective;
• and being housed together would lead to more collaboration and be more helpful to our clients. 

While it ultimately was the right direction for the constituents being served, it was a difficult process for the staff and oversight groups – and quite frankly for me!  Each agency had its own culture and way of doing business.   People were concerned about losing their position and/or status in the newly created organization.  There were trust issues – would information shared be used appropriately?    Would my work be valued?   Would the “other” agency be favored?   Would sufficient resources be assigned?  Did others understand the importance of “my” programs?

I remember being scared about would happen to me and the programs I worked on.  I thought that merging might be perceived as a sign of weakness or that it signaled that my agency was troubled.  And I had to let go –  I was deeply attached to my old agency, how it was organized, my colleagues, how we worked together. 

It took time, ongoing communication, and assistance from outside, neutral parties to help create this new organization – before, during and after the process.  Change takes time…..it was not something that just happened over night. 

My agency did not merge due to leadership or financial issues which according to a recent report from Bridgespan is the typical reason. 

It merged to create a more holistic approach to working with children and families.  Now, more than ever, it is important for each of us to look at what we do and critically ask – is this the best strategy for achieving the outcome?   Who else might help us to meet our mission?   Part of the response to that question may be considering different organization structures and models of delivering services.  But we need to do this not only when there are financial challenges but because it makes sense for the people being served and will allow for greater impact.

Foundation staff is here to listen, exchange ideas and hear your experiences.  We have access to resources and expertise – in addition to grantmaking dollars.  I would encourage you to reach out to foundation staff early in your thinking – keep us informed  — so that we can share what was learned during other consolidations, suggest possible consultants or facilitators, or provide direction on accessing funding.

What is Twitter? …and how does it relate to the nonprofit/philanthropic community?

This week I’m posting some basics about Twitter, what it is and how I am using it. Next week I’ll post information about how I see Twitter benefiting the nonprofit/philanthropic community.

Twitter is a microblogging site that allows you to follow the updates of interesting people and also update your own followers on items of interest. All of this is done in 140-character posts or “tweets.”

Although it’s been around for a few years, in recent months interest in Twitter has seemingly skyrocketed. This video from Common Craft, helps explain the basic concept in an easy-to-understand and entertaining manner.

I like to think of Twitter as a constantly-flowing stream of all sorts of information – at times worthwhile, amusing, confusing, insipid, overwhelming, or even brilliant.

Personally, besides being a bit of a technophile, I enjoy Twitter for several reasons. Foremost is the ability to get useful information from experts around the globe in real-time, bite-sized chunks. Although you can get sucked into the torrent of information available, if you do a quick-scan just a few times each day (I try to check mid-day and late afternoon), you really can gather and share good, quality information in just a few minutes each day.

As a disclaimer I will state that I am not an expert user. I am not consistent in my posts, nor do I understand it all – but I think the important thing is to jump in, test the water (it is fine), and read or “listen” for a while.

I am currently following a photographer in Australia, some nationally-known social media gurus, some Cleveland bloggers, a politician or two, a few celebrities (local and otherwise), folks in fields I know nothing about and some local nonprofit/philanthropy-connected folks. What does this get me?

Information; updates; connections; answers to questions; news faster than traditional media sources; a panel of experts; etc.

 For those who haven’t yet tested the waters I encourage you to jump in.

Create a username and profile, follow a few folks, and see what happens. Search for and follow updates from people you are interested in following for personal or professional reasons.

You can also follow @CleveFoundation for foundation updates. Next week I will share a few resources relating to why I think Twitter is important and worthwhile for nonprofits and foundations to explore, and what I learned from Cleveland’s participation in the first-ever global Twestival nonprofit fundraiser.

We don’t think this blog will become simply another place for reposting – but the implications of this are too important not to share. Hopefully old news for Cleveland-area nonprofits, but just in case…

From GuideStar last week:

“Half a million nonprofits could find themselves stripped of tax-exempt status in May 2010. According to IRS estimates, that’s how many smaller organizations have failed to file a Form 990-N. The Pension Protection Act of 2006 requires exempt organizations (nonprofits the IRS has designated as exempt from federal income taxes) that do not meet the income threshold for filing an annual return (IRS Form 990 or one of its variants) to provide certain information to the IRS each year. The IRS created Form 990-N for this purpose, and smaller nonprofits began filing it in 2008.

The Pension Protection Act also directs the IRS to revoke the tax-exempt status of any organization that fails to file an annual return, including the 990-N, for three consecutive years. Revocations will happen automatically beginning in May 2010.

Nonprofits whose exemptions are revoked will suddenly be required to pay federal income taxes—and subject to financial penalties if they fail to do so. Hundreds of thousands of charities, many operated on shoestrings, could find them themselves no longer eligible to accept tax-deductible contributions. Nonprofits that wish to have their exemptions reinstated will be required to re-apply to the IRS for tax-exempt status, a process that can take several months.”

The IRS summarizes: “Beginning in 2008, small tax-exempt organizations have a new filing requirement. It’s short, easy and electronic – it’s the new e-Postcard. If you are a tax-exempt organization that normally has annual gross receipts of $25,000 or less and does not have to file Form 990 or 990-EZ, you must file the e-Postcard. The e-Postcard is due by the 15th day of the fifth month after the close of your tax year. So if your organization operates on a calendar year, the e-Postcard is due by May 15 of the following year. What happens if you don’t file? You risk losing your tax-exempt status! If you think this new filing requirement may apply to your organization, go to www.irs.gov/eo for complete details and while you’re there sign up for Exempt Organization’s free email newsletter, EO Update, to receive up-to-date information posted on the charity pages of irs.gov.”

 Check out the IRS page for more information.

Read an interesting piece last night on community engagement from Chris Corrigan, Canadian facilitator and blogger who moves within the space between.

He mentions several principles such as “find a centre, find something that you can continually come back to that roots you in who you are” and “don’t sacrifice relationships at the altar of efficiency.”

He also made a great point about foundations and measurements. Excerpt from the transcript of his talk pasted below. He’s discussing how smaller organizations can measure their effectiveness:

“The native radio stations they run in the States get funded predominantly by their own sources, but they also get funded by foundations. Some of the foundations were saying, ‘We have to have a way of measuring your effectiveness.’

I don’t know if you’ve traveled in the States or if you have a radio station at home. We’re talking about tiny little radio stations.

They asked, ‘How do you want us to prove that we’re effective?’

The foundations said, ‘You have to show the number of listeners you have.’

‘Is 15 enough, because that’s how many we’ve got? This is so confusing,’ the stations replied….

So we said, ‘How do you measure the impact of a tiny little radio station when all it does is language programming?’ It’s a very important role with very few listeners. So we began by asking the question, ‘What would happen if the radio station disappeared overnight?’

When you confront your own death you get really clear about the role you play in the world. If they started recording all of their ideas around, here’s what we really do, here’s who we really are, here’s how you can measure us, so the number of language speakers in the community, the number of people that get vaccinated, the number of people that get out of the way of the floodwaters when we broadcast emergency messages, these are all ways to measure our impact. If we didn’t have that media then people will be swept away all the time.

People are totally capable of coming up with measuring their own work.”

Read more of Corrigan’s thoughts on community engagement at http://chriscorrigan.com/parkinglot/?p=1887