501(c)(3): To Be or Not To Be?

Just because an organization does good work, it doesn't necessarily qualify for tax-exempt charitable status. Nor does it have to incorporate. Attorney Anthony Mancuso, who wrote the book on forming a nonprofit corporation, answers some frequently asked questions about whether a group can -- or should -- become a 501(c)(3). He also has advice on dealing with one of the trickiest tasks that a new organization will face -- choosing a name.

A Basic Guide to Program Evaluation

More and more grantmakers are demanding program evaluations as a condition of funding. Management consultant Carter McNamara lays out a framework for conducting these evaluations, and he charts the various methods available for gathering valuable data.

Benchmarking

For several decades, big business has used a management tool known as "benchmarking" to measure performance, motivate employees, and build profits. Now the nonprofit sector is adapting this technique to meet its own needs and to fit its own culture. Christine W. Letts, William P. Ryan and Allen Grossman of the Harvard Business School explain how benchmarking can help nonprofits improve services. They show how the process has been successfully implemented at two organizations, one large and one small.

Building Grassroots Capacity

What are the best capacity-building techniques for grassroots groups? To find out, the Environmental Support Center interviewed a number of technical-assistance providers as well as representatives of the organizations that use their services.

Collateral Matters

For many in the nonprofit sector, borrowing carries with it an undeserved stigma-it's seen as a sign of poor management. Yet most for-profit businesses would flounder if they couldn't borrow to stabilize cash flow. Nonprofit consultant Richard Linzer explains how organizations can secure the collateral necessary to obtain their own line of credit. He also shows how two nonprofits have effectively used credit-based strategies to stave off fiscal crises and gain a solid financial footing.

Connecting a Far-flung Board

If the members of an organization's board are geographically dispersed, they may have trouble working together cohesively. Technology consultant Corinne Waldenmayer shows how to solve this problem by using a variety of electronic tools and resources.

Dealing With the Press

Good publicity is a key to gaining support for your cause, bolstering membership, even raising more money. But too many nonprofits fail to make the most of their publicity opportunities--or fail to recognize an opportunity when it comes along. Veteran communications consultant Richard Beamish explains why the press needs you as much as you need them. He illustrates the ins and outs of dealing with the news media, and shows how to work with the press to make your presence known in the community, influence public policy, and enhance your organization's image.

Designing a Grants Filing System That Works

In the imperfect world of grants management, there's no such thing as an ideal system for keeping track of the voluminous paperwork that every office generates. The key, according to grants administrator Henry Flood, is to devise a practical system that works for you-and anyone who might succeed you.

Determining Executive Compensation

Figuring out what to pay an organization's top executive is one of the biggest challenges facing any board of directors. The National Center for Nonprofit Boards offers some guidelines for carrying out the process.

Employee Evaluation

Because of the frequently intangible nature of nonprofit work, job performance can be difficult to appraise. But no organization can afford a payroll padded with excess or inefficient workers, so regular employee evaluation remains one of the most important responsibilities facing nonprofit managers. Personnel expert Jerry Jenson describes the pros and cons of various approaches to this critical task.

Essentials of Grants Management: A Guide for the Perplexed

Grants managers serve many masters. They must facilitate the work of program staff while ensuring that every obligation to a funding source is being met. It's a job that takes on special importance when dealing with government grants, which have strict compliance and reporting requirements. Veteran grants administrator Henry Flood shows how to set up the necessary record-keeping apparatus, quality review procedures, and other systems needed to stay on top of the job.

Getting and Managing a Construction Grant

The federal government may not be as generous with construction funding as it once was, but many departments still award these grants for various purposes. Federal grants expert Henry Flood tells what's available and what to watch out for when applying. He also offers a blueprint for managing the grant once you have it.

Getting Credit for What You Do

Many nonprofits have an unfounded fear of borrowing money, but the ability to borrow can help deal with unpredictable income steams, growing service demands, or outdated equipment. Financial consultants Susan Kenny Stevens and Lisa M. Anderson outline the types of loans available to non-profits and how to get them.

Hiring Independent Contractors

Workers aren't independent contractors just because you say they are. Courts and government agencies use a variety of legal tests to determine worker status. You should be using those same tests to classify the people who work for your organization. Attorney Stephen Fishman tells how to avoid some common mistakes and stay out of hot water with the IRS.

Hiring People You Don't Like

Most managers hire people who make them feel comfortable. According to management expert Robert I. Sutton, that may be the wrong thing to do if you want your organization to become more innovative and productive.

How to Conduct a Focus Group

Politicians and marketers use focus groups to structure campaigns. Nonprofits can use them too--to connect with the communities they serve. Judith Sharken Simon offers a 10-step guide to planning and conducting focus groups. She shows how to get the job done efficiently and how to make the most of what you learn.

How to Conduct a Salary Survey

Salary surveys are a window on the job market. They show what other employers are paying their personnel, and indicate whether your own wage levels are competitive. Here's a nuts-and-bolts guide to designing a salary survey for your own agency.

How to Make Cash Flow Projections

Over the course of a fiscal year, many nonprofits find themselves tilting back and forth between cash deficits and cash surpluses. Accurate cash flow projection enables management to plan for either situation. ShoreBank's Tim Spilker explains how to prepare cash flow projections and keep your finances on an even keel.

How to Write a Mission Statement

Every group has a mission, but how do you distill that mission down to a single, concise paragraph? Communications expert Janel M. Radtke has some answers. She also gives several illustrations of mission statements that work.

Inside Form 990

It's the annual return that nonprofits file with the IRS. It's also a source of public information about your organization— and organizations like yours. Peter Swords describes what the Form 990 reveals about your finances and operations, and how you can use the 990 as an information resource.

IRS Nonprofit Audit Targets

Nonprofits frequently make mistakes filling out their Form 990. Tax authority Andrew Dzamba tells which sections of the form the IRS is most likely to scrutinize-and which activities are most likely to trigger an audit. He also offers ten pointers for avoiding common tax errors.

Keeping Your Board Above Board

In the wake of recent corporate scandals, Congress has imposed strict new standards for the governing boards of public companies. Attorney Patrick O'Hare argues that nonprofit boards would do well to adopt similar standards--especially in regard to certification of financial statements, compensation of senior executives, and financial officers' code of conduct.

Learning to Read Financial Statements

Balance sheets and income statements may be a mystery to the uninitiated, but board members have a duty to know what they mean. Steven Berger tells what to look for and how to make sense of the numbers.

Letting Go

Few tasks are more daunting than firing someone. Because payroll is the biggest expense for most service organizations, however, cuts in staffing are often the only way to reduce costs and ensure survival. That's why managers need to establish sound policies beforehand. Personnel expert Jerry Jensen outlines the dos and don'ts of terminating employees.

Lobbying Without Regret

Many nonprofits believe that lobbying is taboo. It isn't. In fact, directly influencing public policy may be one of the most effective ways that you can serve the interests of your clients. Here's a simple guide to the rules on legislative advocacy that should help you understand what your organization can and cannot do.

Looking for Mr. Goodboard (and Ms. Goodboard and Dr. Goodboard...)

Recruiting good board members is a persistent challenge for community-based organizations. Grantsmanship Center trainer Judy Gooch suggests a dozen places to start looking for prospective members. She also identifies some hazards to avoid once the search is underway.

Making Your Message Stick

Urban legends are pure hooey, but they still leave a lasting impression. What makes them endure? Chip Heath of the Stanford Business School has identified six qualities that characterize these familiar myths. He shows how those same qualities can help more authentic stories, including the messages your organization wants to convey, get noticed and take hold.

Managing Grants Data—The Need for System Integration

Grants managers often find themselves struggling with two or more unintegrated software systems. Tiffy Barnett has experienced the problem first-hand, and she suggests some ways to address it.

Managing Risks in Hiring and Firing

No organization can insulate itself completely from employment-related risks. But written policies and a carefully drafted manual can go a long way toward minimizing those risks. Here's what goes into producing such a manual- along with a list of dos and don'ts for job assessment.

New Software Solutions— How Open Source Can Help

Because of high prices and restrictive licenses, your organization may not be able to purchase all the software it requires. According to computer expert Howard Fosdick, open-source software— free of cost and readily accessible— may be the answer.

Nonprofit Mergers: Is Your Organization Ready for the Road?

In order to improve their finances, their services, or their pursuit of mission, nonprofits may be tempted to merge with other,, similar organizations. But the road to merger can be difficult-even dangerous. Strategic planning expert David La Piana poses 11 questions to help you decide if your organization is a good candidate for merger.

Nonprofit Mergers: Laying the Groundwork with Volunteers and Staff

Both volunteer board members and paid employees typically feel a strong emotional attachment to the nonprofits they serve, leading them to see merger as more of a threat than an opportunity. Management consultant Dan H. McCormick shows how to deal with this perception and pave the way to successful organizational change.

Nonprofit Pay— Who Gets How Much?

A recently released survey of compensation among nonprofit personnel shows the median pay for typical nonprofit jobs, including chief executive officer, director of development, and grant proposal writer.

Planning for Growth

Most organizations assume that getting bigger means getting better. But if it isn't closely managed, organizational growth can actually end up diluting a nonprofit's effectiveness. Management consultants Paul Connolly and Laura Colin Klein outline the benefits and perils of growth, and suggest how to begin the planning process.

Public Disclosure

Nonprofits have to file information about their finances with the Internal Revenue Service. They also have to make that information public. Failing to do so can lead to legal hassles and public relations problems. Do you know what your organization must reveal -- and to whom? Do you know what impact those revelations could have on your fundraising efforts?

Published Salary Surveys and Other Resources

A listing of regional and occupational salary surveys for nonprofits, plus related resources pertaining to compensation policies and decisions.

Putting Your Organization on the Internet

Like any organizational innovation, going online takes careful planning. In addition to the technical challenges, there's a whole host of administrative and policy concerns to confront. Putnam Barber explains how to manage the process.

Resolving Board Conflicts

Board conflicts can present some of the most formidable challenges that a nonprofit manager must face. They generally come in two forms--conflict between members of the board and conflict between board and staff. Professional mediator Marion Peters Angelica looks at both of these nettlesome situations and offers practical strategies for resolving them discreetly and effectively.

Restrictions on Advocacy

Opponents call it the "Silence America" amendment. A Republican-sponsored measure would place severe restrictions on federal grantees who use non-federal money for lobbying or other advocacy efforts. A broad-based coalition of charitable groups is mounting a vigorous campaign to defeat the amendment, which could seriously jeopardize the ability of nonprofits to represent clients and influence public opinion.

Salary Management for Nonprofits

Many nonprofit groups assume that because their cause is noble, their employees should be willing to work for little money. But without the ability to attract and retain good workers, any enterprise is doomed to failure. That's why it is critical to devise compensation policies that are both competitive and fair. Personnel expert Jerry Jensen explains how to develop an effective pay system that is consistent with your organization's goals and capabilities.

Shared Spaces

Faced with rising rents, more and more nonprofits are scrambling for affordable office space. Multi-tenant nonprofit centers promise greater cost efficiencies and new opportunities for collaboration. China Brotsky, who heads the Tides Foundation's real estate initiative, describes how multi-tenant centers work and what they have to offer.

Strategic Budget Cutting

Reducing your agency's budget is never simple. If you have little in the way of unjustified spending to eliminate, there are no easy targets. And imposing a wage or hiring freeze can diminish morale and adversely impact services. Nonprofit management consultant David Maddox explains why budget cuts may still be necessary, and how you can implement them with maximum fairness and minimum disruption.

Technology Planning for the Development Office

With new technology, nonprofits are able to connect with their constituents much more effectively. But when a development office relies on poorly configured equipment and inconsistent databases, more money is spent and less money comes in. Susan Packard Orr offers a blueprint for getting your house in order.

Templates for Writing Grants Policy Statements

Good grant administration starts with a set of organization-wide policies. Veteran grants administrator Henry Flood offers two model policy statements, one for local governments and another for nonprofit organizations.

Understanding Single Audits

Entities that receive substantial funding from the federal government are subject to the Single Audit Act, requiring an organization-wide review that includes both financial and compliance components. Veteran grants manager Henry Flood explains the obligations that a single audit entails.

When Life Was Dutiful

All across the country, traditional women's organizations are getting grayer. As baby boomers shun the role of "professional wife" and volunteer, the stalwarts who have run these organizations look in vain for their successors. Who will fill the void?