Nonprofit Harvest

Training for Minnesota Nonprofits, And Beyond

This is an exciting time at Nonprofits Assistance Fund. This week we unveiled our new webinar trainings, which have been in the works all summer.

Photo Credit: jurvetson on flickr

We’re looking forward to having our trainings available to nonprofit leaders across the state of Minnesota, as well as our friends all over the country.

If you have been hoping your friendly nonprofit finance geeks (that’s us!) would visit your neighborhood, the wait is over.  Participate in our webinars and share any thoughts you have about the experience.  We are very excited about this expansion of our training program and want it to be as helpful as possible.  Your participation and feedback will make it a stronger service.

As online learning and communications tools continue to evolve, we’ll do our best to take advantage of new ways to serve the nonprofit community. We’ll continue to ask how technology can enhance our work and deliver services to nonprofits in and outside of the Twin Cities metro area.  If you have ideas for us, share them here, on our facebook page, or contact @NAFund on twitter.

Additional Online Training Opportunities

There are many other online learning options for nonprofit staff and board members.  Here are some interesting opportunities that you can explore to take your work to the next level:

• Foundation Center’s Events Archive (their podcasts are also available on iTunes)
  
• Chronicle of Philanthropy Live Discussions 
• Pro Bono Partnership of Atlanta videos and webinars on nonprofit legal issues
• Arts Enterprise: Art as Business as Art course from UW-Madison and the Artful Manager,  Andrew Taylor (podcasts available through iTunes U)

Reconsidering Your Budget

Last week, Jeanne Bell wrote an excellent article for Blue Avocado, Focus on the Destination, Not the Route (Budget)!   In a nutshell, she is arguing that, especially in an uncertain economic climate, rolling projections and organizational goals are more valuable than an annual budget.

She offers great rationale for why this shift in focus matters, as well as some practical steps to get started, included:

Do a revised projection at the end of the current quarter, and have the management team and the board discuss it. Consider these questions:

• What are the key discrepancies between what’s in the budget and what we now believe is going to happen?
• Given this information, do we need to expect a different financial outcome for the year than what the budget was meant to achieve?
• What changes need to be made in the management of any revenue or expense items?
• What implications are there for the next fiscal year, given the projected financial result of this year?

Nonprofit Harvest: Employee Benefits

This week’s Chronicle of Philanthropy Live Discussion was on Employee Benefits at Nonprofit Groups.  It was a timely discussion, especially given a recent report by the Johns Hopkins Listening Post Project (a summary is available on MCF’s Philanthropy Potluck blog).

The discussion pointed out some useful resources to help nonprofits consider ways to limit costs while still providing benefits and professional development opportunities to their employees:

• Rethinking Benefits for Nonprofit Employees from CommonGood Careers:
• Nonprofit Workforce Action Agenda from Listening Post Project

Transparency as a Planning Tool

National Council of Nonprofits has produced a series of Special Reports on the economy.  Their most recent update, Strategies Being Used by Nonprofit Leaders To Cope with the Nation’s Economic Crisis, summarizes findings from a range of reports and provides some key takeaways.  I found the first tip is particularly interesting:

[B]eing transparent about financial challenges and “staying close to funders” emerged as an essential strategy for many organizations. Savvy nonprofits are asking grantmakers to be transparent – because nonprofits need to know how much to expect, and within what timeframe, in order to conduct realistic financial planning. For instance, asking foundations to expedite payments,  in these times when “cash flow” for many nonprofits feels like “cash drip,” is a fair thing to ask.  Likewise, it is better to hear bad news – that a grant will be smaller, or delayed, or even discontinued – earlier rather than later so that adjustments can be made immediately.

Until you have information about the likelihood and timing of grants and other sources of revenue, it’s hard to engage in realistic contingency planning.  The Minnesota Council of Foundations is doing their best to gather and aggregate data on how Minnesota grantmakers are responding to economy.

• Updated 2009 Giving Outlook 
• 2009 Giving Forecast by Minnesota Grantmakers

Nonprofits Assistance Fund has also created materials to help organizations manage cash flow and make informed financial management decisions.

• Cash flow template
• Scenario Planning tools:
  • Scenario Planning Example
  • Scenario Planning Worksheet: A blank template for you to use

To see all of our financial management tools and articles, visit the Resources section of our website.

Nonprofit Harvest

Training and Resources

• New! Blue Avocado Webinars
• Human Resources for Nonprofits Update from Not For-Profit Accounting
  
• Alternatives to Forming a Charitable Nonprofit an article from Gene Takagi and Emily Chan of the Nonprofit Law Blog
  

Social Enterprise

• More Details on the Social Innovation Fund from Foundation Center DC
  
• New corporate structure could give social entrepreneurs new funding stream
• Foundation portfolios, proxy action leverage social change from MinnPost

News and Other Updates

• Sales tax breaks for nonprofits: New rules in the works from MinnPost
• Weathering The Storm – Financial Health Standard from Charities Review Council

Employee Compensation

Recently there’s been a lot of chatter about nonprofit wages in the blogosphere and beyond. Debating these questions is important, but in this age of tight budgets, are there any steps an organization can take to improve employee compensation right now? Especially for lower wage employees who are critical to an organization’s success, but are sometimes left out of this conversation.

Blue Avocado gets to the heart of the matter in the article Low-Wage Workers and Nonprofits:

While raising salaries would be, by far, the best way to support these important staff, doing so isn’t possible for most nonprofits: certainly not in the short term, and often impossible for the long term given business models and funding constraints…

Although the challenge of providing adequate compensation to low-wage employees may seem overwhelming, especially during a financial crisis, the fact is that nonprofits, consultants and funders can consider a number of helpful options without torpedoing the budget.

The article offers a range of options, which fall into three main categories:

• Steps to take relatively quickly at little or no cost
• Intermediate steps
• More far-reaching steps

These ideas are not intended to replace a real conversation about wages, especially one that goes beyond executive compensation.  But they are a place to start. Add your thoughts and suggestions here or leave a comment at Blue Avocado.

Related HR Resources

Not-For-Profit Accounting shares some information from the intersection of HR and accounting.  This post unpacks the sometimes woolly world of employee classifications — exempt vs. nonexempt, independent contractor vs. employee — and provides information on payroll systems.

If you have specific questions about nonprofit account, I suggest submitting them to Alan.  His regular Q&A feature is a great resource for financial managers.

New Resource Collection

Blue Avocado has compiled all of their articles about nonprofits and the economy. Visit this archive for information on financial management, HR, and more.

Harvest

• IRS Form 990 Filing Tips: Part VI, Governance 
• Nonprofit Policy News | May 2009
  • Federal Legislative and Regulatory Developments
  • IRS makes public its 2009- 2013 strategic plan
• Free Foundation Center Widgets
• Charities Loosening Strings on Arts Grants

Alan at Not-For-Profit Accounting sees a silver lining in the recession – a greater focus on nonprofit operations:

I have read more articles about not-for-profit operations, administration and finance recently than I think I have in the last ten years. And they have been positive. They have spoken of the need for organizations to look at how their finances and operations are handled, to make sure they have the systems in place to be able to figure a) out exactly where they stand financially and b) what to do going forward as far as budgeting, cash flow and capacity.

While I’m not happy about the pain that will be felt by many organizations and the populations they serve I am pleased that these discussions are taking place and that we will end up with a stronger sector once this crisis passes.

Check out his post,  Money Managing in Challenging Times, for a collection of tools and resources to help your organization.

HR Resources

COBRA Updates

• Health Insurance: A Bit of Good COBRA News (Blue Avocado)
• COBRA Premium Reduction in the Recovery Act (MCN)

Ask Rita

A regular Blue Avocado feature is Ask Rita in HR:

Rita in HR is actually two HR attorneys in one: Ellen Aldridge and Pamela Fyfe, both of the Nonprofits Insurance Alliance Group. They advise nonprofits on wrongful termination, wage & hour, discrimination, harassment, and other employment issues.

Recent topics include: 

• Downsizing from Employees to Independent Contractors?
• Nonprofit Layoffs and Furloughs: Do Them Right
• A Family and Medical Leave Act Checklist