Comments for Balancing the Mission Checkbook

Comment on How Sabbaticals Grow Leaders by Kathleen Fluegel

Kathleen Fluegel — Tue, 20 Jul 2010 18:34:13 +0000

Good for all of you! Congratulations!!!

Comment on Give Your 990 a Workout by Cary

Cary — Thu, 03 Jun 2010 13:30:09 +0000

Thanks for the great tool, Kate!

-Cary

Comment on How I Learned to Love Cash Reserves by Rachel

Rachel — Sun, 09 May 2010 14:38:02 +0000

Yes, the question of how much to have in reserve is a consideration for every nonprofit we have worked with. Something that should also be factored in is the stress level experienced by staff (paid and volunteer) when the organization is operating at a zero reserve. Some organizations aren’t bothered by this, with the founder personally covering expenses and being repaid at a later time. Other organizations become paralyzed because they can’t make any plans or decisions due to the lack of funds. In my opinion, a bare minimum reserve would be enough to plan and carry out at least one well planned fundraising event plus one month of operating expenses.

Comment on How I Learned to Love Cash Reserves by Rich Cowles

Rich Cowles — Tue, 30 Mar 2010 17:24:52 +0000

Right on, Kate.

One additional thought: For obvious reasons—especially in a down economy—most considerations about the proper level of reserves have to do with minimums. In our work with nonprofits and donors, however, the question occasionally arises: How much is too much? That there can be too high a level of reserves is consistent with your concern that idle cash isn’t an efficient use of capital, and donor surveys show that they expect their contributions to be put to use now rather than held for a rainy day. A few large nonprofits have, in fact, “hoarded” sums of unrestricted money with no plans for spending them—and yet they continue to compete for the donated dollar. When this is made public, as it eventually does, public trust in all nonprofits tends to suffer.

Accordingly, the Charities Review Council’s new Accountability Standards http://smartgivers.org/AccountabilityStandards09.html (going into effect April 1) include a Balanced Reserves standard that calls for a maximum of three years worth of expenses. Many nonprofits chuckle at this notion and remark that they’d love to have such a problem. But times and situations change, and it’s something to think about when developing a policy on reserves.

Comment on Ready, Set, Innovate by Lori L. Jacobwith

Lori L. Jacobwith — Wed, 24 Feb 2010 12:19:53 +0000

I’m a big fan of the book Blue Ocean Strategy. I found it helpful in getting organizations to think outside the box about their value & effectiveness. Being efficient is as important these days as being innovative. Another great read for smaller nonprofits: The E Myth Revisited by Michael E. Gerber.

Comment on Ready, Set, Innovate by Rich Cowles

Rich Cowles — Tue, 23 Feb 2010 22:12:02 +0000

One of my favorite thoughts about innovation comes from Alex Cirillo of the 3M Foundation–the charitable arm of a company known for innovation: You can’t be innovative if you talk only to people just like you.

Comment on The Year For “Right-Sized” Donations by Jen Banks Abreu

Jen Banks Abreu — Tue, 23 Feb 2010 20:35:17 +0000

I’m so glad I found this article. Well said, and so(!) very important for real-life development strategizing. Something I’ll be recommending for DDs, EDs, and Board members to read! Thanks, Kate.

Comment on The Case for Sabbaticals by Kate Barr

Kate Barr — Sat, 20 Feb 2010 17:01:57 +0000

Your comments are both great illustrations from different experiences. I was also thrust unexpectedly into new responsibilities years ago when my boss had a medical event. The new roles I took on changed the way I worked from then on. By the way, I’m not working now – I’m killing time in an airport and having a great sabbatical. Cheers.

Comment on The Case for Sabbaticals by Anne Ackerson

Anne Ackerson — Thu, 04 Feb 2010 14:12:56 +0000

Thank you for this post, Kate. I think the one-month sabbatical concept is a great protector against burn-out AND a terrific way to build leadership capacity among staff. About a decade ago, I left my position as the ED of a small history museum to “take a break”. It took me about a year to plan it, but it became a turning point for me. Granted, that wasn’t a sabbatical in the strictest sense of the word since I didn’t return to my employer. I can’t tell you how many colleagues of mine expressed their desire to do the same, but were afraid to make a break. A one-month sabbatical would have been the answer for many of them!

Comment on The Case for Sabbaticals by F. Luhr

F. Luhr — Wed, 03 Feb 2010 19:21:43 +0000

I like many points made in this article, but one of them really rings true with my own personal experience: “Organizational capacity is increased as the second tier of leadership takes on new responsibilities.” I learned this first-hand in my past job when my Boss went out for two consecutive hip replacements over a four-month period. I would have never thought that I could “do his job” until I had to do it through necessity. I learned that I could do it and that really boosted my confidence, allowing me to go to the “higher level position” in my next/current job. Second/mid-level people are usually not given enough new responsibilities and opportunities, and I think the sabbatical option, as you said, is one that can benefit multiple segments of the organization. I imagine this would be very helpful as part of a succession planning process as well. Thanks for the interesting post.