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Staffing a Nonprofit: Contracting with a Consultant vs Hiring an Employee

3/27/2023

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The decision to contract with a consultant or hire an employee to support your nonprofit organization can be a crucial decision, especially for nonprofits with limited resources, but large goals. While both options have their benefits, hiring a consultant can be a cost-effective and efficient way to obtain specialized expertise, improve processes, and implement strategic initiatives.

Consultants are experienced professionals who can offer unbiased opinions, innovative ideas, and effective solutions tailored to each organization's specific needs. Attaining a consultant provides access to high-quality expertise and support without the long-term commitment and financial burden of hiring staff. 

Additional benefits include:

  1. No benefits or overhead costs: Organizations incur costs for employees above their salary, these expenses including payroll taxes and fringe benefits ranging from paid time off, to health insurance, and retirement contributions. Additional expenses include equipment, office space overhead, worker’s compensation, payroll services, and equipment. Contracting with a consultant, is based on an agreed-upon contracted rate; they pay for their own taxes, benefits, and equipment.
  2. Flexible contracts: Consultants can be hired for specific projects or tasks, with contracts customized to fit each organization's needs. 
  3. Access to specialized expertise: Hiring a full-time employee with specialized expertise can be costly. Consultants, on the other hand, offer specialized expertise for a fraction of the cost of hiring internally.
  4. Lower training costs: Employee onboarding requires an investment of time and training resources. Consultants are experienced professionals with processes allowing them to quickly get up to speed on an organization's needs, without requiring extensive training, providing immediate value.
  5. Reduced risk: If an employee doesn’t turn out to be a good fit for your organization, it can be, difficult, time-consuming, and costly to go through the termination process only to have to start the hiring process again. Consultant’s contracts are for a fixed period of agreed-upon time If you love the consultant, you can choose to extend or enter into a new contract.
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It is important to note,  not all consultants are created equal. It's essential to due your due diligence when deciding who to work with.  The consultant should have relevant experience, knowledge, and skills. Additionally, having a clear scope of work, budget, and timeline will help ensure that both parties have realistic expectations and goals. Referrals and references from other similar organizations can help identify consultants supporting the nonprofit industry and speed up the vetting process

Overall, hiring a consultant can be a smart investment for nonprofit organizations seeking to maximize their impact, innovate, and adapt to changing environments. Leveraging the expertise of a consultant allows organizations to improve operations, increase efficiency, and achieve their mission while staying financially sustainable.

Are you considering hiring a consultant for your nonprofit organization? We would love to learn about your organization and share ways our monthly nonprofit consulting and grant writing packages may assist you. 


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Building and Sustaining Strong Donor Relationships for Nonprofits

3/17/2023

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For nonprofit organizations, cultivating and maintaining strong donor relationships is crucial to their survival and long-term success. While fundraising events and grant applications can bring in much-needed revenue, developing strong, ongoing relationships with donors ensures another sustainable source of funding and support. Below we will discuss the best practices for nurturing and retaining lifelong supporters for your nonprofit organization.

Understand Your Donors
The first step in building strong donor relationships is understanding who your donors are and why they support your cause. Research their interests, demographics, and preferences by conducting surveys, interviews, or focus groups. Analyze your donor database to identify patterns and trends. This knowledge will help you develop tailored communications and engagement strategies that resonate with your audience.

Communicate Regularly and Transparently
Transparent and regular communication is vital in building trust and credibility with your donors. Make sure to keep them updated on your organization's goals, accomplishments, and challenges to help them feel involved. Share stories of impact, both on an individual and community level, to demonstrate how their contributions are making a difference. Use a mix of communication channels, such as email, social media, and direct mail, to ensure that your message reaches your donors effectively.

Personalize Your Outreach
Donors appreciate personalized outreach that shows you value their contributions and recognize their unique interests. Address your donors by name, acknowledge their giving history, and tailor your messages to their preferences. This personalized touch not only makes donors feel appreciated but also increases the likelihood of future engagement and donations.

Show Gratitude and Appreciation
A simple 'thank you' goes a long way in fostering strong donor relationships. Express your gratitude through personalized thank-you notes, phone calls, or even small tokens of appreciation. Unless they request to be anonymous, publicly recognize your donors by featuring their names on your website, annual reports, or newsletters. Make sure to acknowledge their contributions promptly, as timely appreciation significantly impacts donor retention.

Provide Opportunities for Involvement
Engaged donors are more likely to become long-term supporters of your organization. Provide them with various opportunities for involvement, such as volunteering, attending events, or joining committees. Encourage them to become ambassadors for your cause, sharing their experiences with their networks and helping to expand your reach.

Listen and Respond to Feedback
Encourage open dialogue with your donors and be receptive to their feedback. This demonstrates that you value their opinions and are committed to continuous improvement. Address any concerns they may have and implement their suggestions when appropriate. This active engagement helps to strengthen their sense of ownership in your organization's success.

Evaluate and Optimize Your Strategies
Regularly evaluate your donor relationship-building strategies to ensure they are effective and meet your goals. Analyze data on donor retention, gift amounts, and frequency to identify trends and areas for improvement. Continuously refine your strategies based on this data to maintain and grow strong donor relationships.


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Grant Writing Tip: Have an Accurate and Detailed Budget Ready

3/6/2023

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An accurate budget is a critical component of a grant application. It demonstrates feasibility, planning, and organization, increases credibility, helps funders evaluate impact, and allows for a realistic evaluation of the project's progress and impact. Below we will dive into each category deeper to assist in writing a strong grant proposal for your nonprofit.

Demonstrates Feasibility: An accurate budget demonstrates that the project is feasible, and that grant funds will be used effectively to achieve the project's objectives. It shows the applicant has thought through the project's scope, timeline, and resources required to execute it successfully. Quotes should be attained and included, when appropriate.

Shows Planning and Organization: A detailed and accurate budget indicates that the applicant has taken the time to carefully plan and organize the project. This shows the funder that the applicant is committed to executing the project with a high degree of professionalism and attention to detail.

Increases Credibility: An accurate budget increases the credibility of the grant application. It shows the funder that the applicant has a realistic understanding of the costs associated with the project, and that the proposed budget is based on sound assumptions.

Helps Funders Evaluate Impact: A detailed budget helps funders evaluate the potential impact of the project. It allows them to see how the grant funds will be used and what outcomes can be expected.

Allows for Realistic Evaluation: An accurate budget enables a realistic evaluation of the project's progress and impact. It provides a baseline against which to measure the actual costs and outcomes of the project, allowing the funder to evaluate the success of the project.

Many small to midsized nonprofits struggle with building program budgets that roll up and align with the organization's budget. Assisting nonprofit organization to develop accurate program budgets is just one of the components of our Premium Services. Magic Lamp Consulting offers a full-service suite of development and grant management services connect with us to learn more more about our Premium Services.
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Newly Launched LinkedIn Resource Hub For Nonprofits

2/28/2023

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Earlier this month, LinkedIn, one of the world's largest professional social networking platforms, launched The LinkedIn Resource Hub for Nonprofits. This new resource includes a range of features and tools, designed specifically for nonprofit organizations. This is a dedicated space that provides valuable resources to nonprofit organizations to connect with potential donors, volunteers, and advocates. This hub is a game-changer for nonprofit organizations looking to grow their impact and reach more people with social media.

The LinkedIn Resource Hub for Nonprofits includes a range of features and tools, designed specifically for nonprofit organizations. The hub's key feature is the ability to create a LinkedIn Page for the nonprofit organization. It also showcases resources to help improve the way nonprofits communicate their missions, stories, and updates on their LinkedIn Pages. The goal is to assist nonprofits in growing their organization and showcasing their work to a wider audience.


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Other key components include:

Helps You Hire
This nonprofit-categorized LinkedIn Page will let you post available jobs and volunteer opportunities while giving you the tools to write compelling job descriptions to attract the right candidates. Nonprofits can also access information on best hiring practices and learn to create connections to build a strong talent pipeline.

Helps You Raise Funds
Another important feature of the Resource Hub is the ability to use LinkedIn's fundraising tools. Nonprofit organizations can create a dedicated fundraising campaign on LinkedIn, where supporters can donate directly to their cause. These campaigns are easy to set up and manage and can help nonprofits to reach their fundraising goals more quickly and efficiently.

Additionally, education is provided on strategic fundraising practices, helpful suggestions on finding new donors, and helpful tips for exploring new prospective donors. 

Helps You Market Your Nonprofit
In addition to LinkedIn Pages, the Resource Hub also provides access to LinkedIn's advertising platform. This allows nonprofit organizations to create targeted ad campaigns to reach potential donors and volunteers. With LinkedIn's precise targeting capabilities, nonprofit organizations can ensure that their ads are seen by the right people, at the right time. This can help nonprofits to increase their visibility and attract more support for their cause.

Nonprofits can also learn best practices by using the LinkedIn Live, LinkedIn Groups, and LinkedIn Events features for increasing awareness of their organization’s brand.

Overall, the LinkedIn Resource Hub for Nonprofits seems to be a new and valuable resource for nonprofit organizations of all sizes. We encourage you to learn more about LinkedIn for Nonprofits and let us know what you think!

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10 Components of a Strong Grant Proposal

2/15/2023

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Applying for grant funding can be a competitive and complex process, but many nonprofit organizations need to secure the resources they need to carry out their mission. A grant proposal is the organization's opportunity to showcase its work, its goals, and its vision for the future, and to make a compelling case for why the funding organization should invest in its project. To be successful, a grant proposal must provide the information that the funding organization needs to make an informed decision about the grant request. This information must be clear, concise, and compelling, and it must demonstrate the organization's commitment to achieving its goals and making a positive impact on the community it serves. In this blog, we will explore the key components of a strong grant proposal and provide tips for making sure that your proposal stands out from the rest.
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  1. Executive Summary: An executive summary should be included at the beginning of the proposal. The purpose is to give the funding organization a high-level overview that is a quick and comprehensive understanding of the proposal without having to read the entire document. It should be written clearly and concisely, using language that is easy to understand and avoiding technical jargon.

  2. Needs Statement: The foundation of any grant proposal is a clear and compelling description of the problem or need that your organization aims to address. This section should provide background information, data and statistics, and a clear explanation of why this issue is important and why your organization is well-positioned to address it.

  3. Project Goals: The next component is a description of the specific goals of the project. Goals are broad statements, clearly articulated, that define what you hope to accomplish.

  4. Project Objectives/Methods and Implementation Plan: In contrast to the goal, an objective is narrow, precise, tangible, concrete and can be measured. Explain how you plan to achieve your project goals using the S.M.A.R.T method; Specific, Measurable, Attainable, Realistic, and Time-Bound. This should include a detailed description of the activities that will be undertaken, as well as a timeline for when they will be completed.

  5. Outcomes Measures: Outcome measures are the results, or impact that you want the program or project to make, which ties back to the stated Goals and Objectives.

  6. Evaluation Method: This section should discuss how you will track, collect, and analyze outcomes and progress toward achieving your goals, using quantitative (data, numbers, measurements, statistics) and qualitative (characteristics, senses, intangibles, subjective) approaches. 

  7. Project Budget and Budget Explanation: A strong grant proposal includes a detailed budget outlining all the costs associated with your project, as well as a specific funding request. This section should be well-researched and include a clear explanation of why the requested funding is necessary to carry out your project and a breakdown of how the funding will be utilized.

  8. Project Sustainability: Funders want to understand how your organization plans to sustain the project once funding has been secured. This could include plans for securing additional funding, developing partnerships, or building capacity within the organization to ensure the long-term success of the project.

  9. Organizational Background and Capacity: Finally, a strong grant proposal should include a description of your organization and its capacity to carry out the proposed project. This should include information on your organization's mission, history, and track record, as well as a discussion of the skills and experience of your staff and board.

  10. Supporting Materials: Some funders provide an opportunity to include supporting materials allowing applicants to include additional details or context about the proposal. This could include things like a resume of key staff members, letters of support from partners and stakeholders, data and research that supports the need for the project, articles or publications highlighting the nonprofit and any other relevant materials that help to demonstrate the feasibility and impact of the proposal.

​In conclusion, when submitting a proposal, it is essential to remember that the funding organization will be evaluating the proposal based on its ability to meet the organization's funding priorities, its alignment with the organization's mission, and the capacity of the organization to carry out the project successfully. By focusing on these key components, you will increase the chances of securing funding to support your important work.
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Leveraging Volunteer Skills: Matching Talent to Task for Maximum Nonprofit Efficiency

1/31/2023

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Volunteers are a vital part of most nonprofit organizations, but managing and leveraging these valuable resources can be challenging. Ensuring volunteers are engaged, is important to maximize their skills and enthusiasm - whether it's web development or program support. When aligned correctly it will result in maximum nonprofit efficiency and a fulfilling experience for the volunteer. 

Matching Tasks with Volunteer Skillsets
Never underestimate the power of assigning specific tasks that align with each individual’s unique skills and interests. The results can positively impact production, happiness, and the overall flow of the organization while allowing volunteers to hone their skills, and develop new ones while providing a sense of ownership and belonging. This often results in trust and commitment between volunteers and the nonprofit.

Provide Training and Support
Investing in training and support is key to maximizing the utilization of volunteer resources. When volunteers feel equipped, prepared and motivated they are more likely to dedicate their time and energy to making a meaningful impact. Providing appropriate support structures and resources, such as regularly scheduled training sessions, or video calls can help ensure volunteers are feeling good about their contribution. This investment not only helps reach goals faster but also leads to greater job satisfaction for volunteers - something essential for retaining them for the long term. 

Create a Clear Communication System
A clear and effective communication system is vital to ensure that volunteers and staff members can collaborate seamlessly to efficiently complete key tasks. Communication must go beyond the basic "to-do list." It should include a clear way to share timely feedback, resources, information, ideas, and open dialogue about mission-critical objectives, and strategy. In addition, leaders are able to respond effectively in times of urgent need, quickly allocate resources, and collectively stay up-to-date about operational decisions. 
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We encourage you to ask your volunteers and staff members what communication style works best for them. This system doesn't have to be elaborate. It could be as simple as a group chat over text. The goal is to find one platform that everyone in the organization can collaborate on together.
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Recognize Volunteers Regularly
Nonprofits strive to meet their goals by making the most of limited resources. A key piece of this puzzle is recognizing and appreciating volunteers' contributions through regular and timely feedback and acknowledgment. Regularly thanking volunteers for their time, highlighting their impact, and showing appreciation can motivate volunteers to continue providing meaningful contributions to their time.


Create Opportunities for Leadership and Advancement
Nonprofits play an increasingly important role in today’s society, often providing services and advocating for causes that the public sector does not. Investing in leadership training and career pathways for volunteers creates a sustainable cycle that improves organizational performance while also helping volunteers grow professionally. This can helps attract new volunteers, sponsors, and donations allowing nonprofits to make a greater impact.


Build Relationships with Volunteers
An effective way to incentivize volunteer engagement is by involving them in decision-making processes and allowing them to shape their roles in the organization. This can be done through careful consultation and allowing volunteers to actively contribute to discussions on future strategies. In addition, delivering regular updates on progress within the organization will demonstrate appreciation for volunteers’ efforts and will foster greater collaboration.


Embracing an Inclusive Environment
Creating a welcoming and inclusive environment for volunteers that values diversity and different perspectives are critical; when social, economic, and ethnic diversities are respected, organizations demonstrate their commitment to equity and fairness. An atmosphere between volunteers of different backgrounds can foster collaboration, build trust,  and can make even mundane tasks more interesting. Individuals with unique talents and skills can come together to make a positive impact on their community.

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4 Tips To Help Nonprofits with Grant Writing

12/27/2022

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Nonprofit Executive Directors and Development staff understand first-hand how impactful grant funding can be toward supporting the organization’s mission. However, grant writing can often feel overwhelming for beginners. There are some key concepts and processes that can make writing proposals easier. 

This blog post will introduce a few fundamentals of grant writing in order to apply for grants to further the nonprofit’s mission successfully. 

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Tip #1: Define the Project
It is important to clearly define projects or programs before pursuing grants. This process helps you stay focused on the mission and aligned with the strategic plan in order to avoid mission creep. Mission creep often happens when an organization begins chasing grants and loses focus by taking on new projects or programs that lie slightly outside the core purpose just to get funding. When defining the project, identify the problem to be solved; create a case statement; identify the target audience, define the goals, objectives, outcomes, and how success will be measured.                                
Tip #2: Develop a Budget 
The budget is one of the most essential components of any grant proposal because it outlines exactly how much money the project needs and how funds will be allocated. Most foundations require detailed budgets with line-item costs; therefore, it may take some research into identifying what vendors will be utilized and determine item costs to create an accurate budget breakdown. Prepare a budget justification to explain how the costs were determined and why they are necessary. If vendor quotes are received, they should be included with the application.

Tip #3: Research 
Research is one of the most critical aspects in pursuing grants. Good research will save time later in the process, helping ensure time is only spent on submitting relevant grants.

Ways to determine if a funder aligns with the nonprofit’s needs is through grant research. Research criteria include geography, population served, grant focus area, and funding history. It is important to read eligibility requirements carefully so time is not wasted applying for grants that aren’t a strong match to the nonprofit's mission and goals. The Foundation Directory Online is a wonderful research tool, check out their Funding Information Network to find a location near you.  

Tip #4: Create a Draft
Once the research is completed, and it is close to when the funder’s grant cycle opens, it is time to draft an application. Read and follow the application guidelines closely. Most grant applications have slightly different ways they ask questions. Ensure each question is answered completely. Watch the character count, most applications limit the number of characters used in each section. Once the first draft is complete, have someone unrelated to the project review it for a clear understanding of the request, accuracy, and to provide feedback before submitting the application.

Grant writing can be intimidating at first but with a little bit of practice, your organization can get started submitting proposals!

Do you have specific questions about the grant writing process? We are here to help. Contact Magic Lamp Consulting for an On-Demand Consulting Session to focus on the specific needs of your organization.

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3 Ways to Optimize Your Candid (GuideStar) Nonprofit Profile

12/14/2022

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GuideStar, a 501(c)3 public charity, is the world’s largest source of information regarding nonprofit organizations. Their mission is to revolutionize philanthropy by providing information that advances transparency, enables users to make better decisions, and encourages charitable giving. GuideStar lists information on every nonprofit registered with the Internal Revenue Service as tax-exempt. They strive to collect and provide access to the most comprehensive, updated, and accurate nonprofit information available. They obtain the information from the federal government, partners in the nonprofit sector, and the nonprofits themselves.

Help Millions of Funders Find Your Nonprofit
Guidestar is used by potential funders nationwide as a reliable tool to quickly assess nonprofit organizations. Claiming and completing your nonprofit’s profile helps increase the chances of potential supporters making a favorable decision when requesting funding. 

Seals of Transparency
One crucial component of each nonprofit's GuideStar profile is its Seal of Transparency. The seal helps gain the trust and support of potential funders. The Seal of Transparency levels includes Bronze, Silver, Gold, and Platinum. Each level provides more and more transparency on the nonprofit organization, starting with things as simple as adding your mission statement, leveling up by adding board information, to sharing the metrics of demonstrated performance towards your mission. The more information you provide, the higher your Seal of Transparency becomes.

Learn more about the different GuideStar seals and requirements.

National Taxonomy of Exempt Entities Code (NTEE) - The GuideStar profile allows nonprofits to add the NTEE codes that align with their nonprofit’s mission. These codes help viewers categorize a search for nonprofits focused on their area of interest. Sometimes profiles that are populated with incorrect NTEE codes or only include one code, note more than one code is permitted. Unfortunately, this leaves the door open for lost funding opportunities since the funder might not find your nonprofit when searching the website.

We encourage you to review the National Taxonomy of Exempt Entities (NTEE) Classification System to ensure you are accurately coding your nonprofit.

Geographic Service Areas
GuideStar provides the ability to highlight the geographic areas your nonprofit services. Note, be careful not to limit the area to where the nonprofit is physically located, but also include the communities served. Funders often focus on specific geographic areas where they want to make a difference. Ensuring your service areas are accurate will help improve your alignment in the funder’s focus areas. We hope the above tips give you a better idea of how to get the maximum benefits from your GuideStar profile. Still have questions? We encourage you to contact us for an On-Demand Strategy Session where together, we can look deeper into your nonprofit profile and offer expert nonprofit advice.
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Effective Ways to Fund Your Nonprofit

12/2/2022

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Running a nonprofit is no easy feat; from managing volunteers to putting on events and everything in between, a lot goes into keeping a nonprofit running smoothly. One of the most important aspects of any nonprofit is ensuring there ar enough funds to support the mission. 
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Diversifying funding sources is critical to sustaining operations and achieving long-term success. Relying on a single funding source can make an organization vulnerable to budget or funding priorities changes. Diversifying funding sources helps insulate organizations from fluctuations in any one area and can provide a steadier stream of income that can be used to support ongoing programs and services. In addition, having a diversified funding base can help an organization attract new donors and supporters. By demonstrating that the organization has a broad range of support, potential donors may be more likely to invest , knowing that their contribution will have a lasting impact.

As we get close to another new year, we thought there would be no better time to introduce some proven practical ways to fund a nonprofit. Remember, having a diversified funding stream is essential to ensuring stability and long-term success.

1. Grants
One of the most common—and effective—ways to help fund a nonprofit is through grant funding. The most common types are Corporate, Foundation, and Government. While there are many opportunities available, it is essential to thoroughly research and identify funders with a giving focus that closely matches your organization's mission and needs. The next step is to develop a strong application sharing your organization's story and clearly identifying how your request aligns with the grant guidelines.
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Unsure how to begin to apply for grants? Learn how to get ready in one of our previous blogs, Proactive Ways to Get Your Nonprofit Grant Ready.

2. Individual Donations
Individual donations can be a consistent way to raise money for your nonprofit. Soliciting donations can be done in various ways, including adding a donate button on your website and social media pages. We encourage you to make giving easy for your donors by offering multiple ways to donate; this can include venturing into the realm of text messages where donors can simply click to donate. In addition, utilizing the convenience of online payment apps like Venmo can simplify the fundraising process and allows nonprofits to reach a wider audience of supporters, including younger donors.

3. Corporate Sponsorships
Corporate Sponsorships provide a way for businesses to align with charitable organizations. It is a form of marketing where each party benefits. The nonprofit promotes, advertises, and highlights its corporate partners in exchange for a financial donation. Therefore, it is essential to select partners who share your values.

4. Fundraising Events
Fundraising events are another way to diversify your nonprofit’s revenue stream while cultivating relationships with donors. Creative and fun fundraising events are a great way to excite donors while generating interest and awareness of the nonprofit, gaining new supporters and volunteers, and bringing the community together. Annual Galas provide an opportunity to gather to celebrate the year’s successes while highlighting the need for future donations. Funds are usually raised through ticket sales, auctions, and appeals made during the event. Sporting events, including golf tournaments, walk-a-thons, and 5k races, are fun and easy and can be supported by volunteers. Fundraising events can be a powerful tool for nonprofits to raise money and support their mission.

Are you looking to brainstorm ways to diversify your revenue streams? Schedule an On-Demand Strategy Consulting Session - we are here to help!

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The Board of Directors: An Imperative Piece of a Nonprofit’s Structure

11/8/2022

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A Board of Directors is a vital, and in Massachusetts required, part of all nonprofit organizations. They serve as the nonprofit’s governing body. As a public entity, the IRS recommends a minimum of three board members, with at least 51% of the voting members being unrelated. This rule is to ensure the board functions independently and is not influenced by familial relationships, preventing conflicts of-interest. 

Key board roles include Chairperson, Secretary, and Treasurer. Board Leadership have legal duties including the Duty of Care, to participate actively in decisions making on behalf of the organization; Duty of Loyalty, to put the interest of the organization before their personal and professional interests; the Duty of Obedience, they are legally responsible for ensuring the organization complies with applicable laws and adheres to its stated mission. 









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​The board is responsible for key decisions around the strategic planning, developing the mission and goals, and financial oversight, stearing the organization towards a sustainable future
. They also work to build relationships with funding organizations and other key stakeholders. Board membership is a highly sought-after position for individuals who want to give back to their community or sector.


Sought Out Expertises of Board Members
Nonprofits search for board members that can provide knowledge, expertise, and direction in various areas of the organization. A healthy board is a diverse board. On average they are made up of 15 members. Many members have backgrounds in finance, marketing, public relations, governance, leadership, and more. Nonprofits are encouraged to create inclusive boards that range in diverse backgrounds and cultures. Historically, board members are appointed as volunteers and not compensated for their service.
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Board Responsibilities
According to the Council of Nonprofits, boards have three main legal duties they are responsible to focus on. Those include:


  1. Duty of Care: Take care of the nonprofit by ensuring prudent use of all assets, including facility, people, and goodwill;
  2. Duty of Loyalty: Ensure that the nonprofit's activities and transactions are, first and foremost, advancing its mission; recognize and disclose conflicts of interest; make decisions that are in the best interest of the nonprofit corporation; not in the best interest of the individual board member (or any other individual or for-profit entity).
  3. Duty of Obedience: Ensure that the nonprofit obeys applicable laws and regulations; follows its bylaws; and that the nonprofit adheres to its stated corporate purposes/mission.

Other common responsibilities that board members oversee are:

Strategic Planning
One of the most important roles of the board is to develop and approve the strategic plan for the organization. The strategic plan sets forth the mission and vision for the nonprofit and outlines the goals and objectives that it hopes to achieve. The board is responsible for making sure the strategic plan is aligned with the values of the organization and it reflects input from all stakeholders.
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Resource Development
Another key role is to ensure that the nonprofit has adequate resources to achieve its goals. This includes financial resources, human resources, staffing, and other types of resources that may be necessary. 

Fiscal Oversight
In addition to setting direction and ensuring adequate resources, the board has a responsibility to provide oversight to make sure that the nonprofit is operating effectively and efficiently. The board is responsible for approving budgets and ensuring that expenses are controlled. They review financial statements, monitor compliance with laws and regulations, and assess programmatic results. 

Evaluation of Executive Leadership
The Executive Director is known to be responsible for the day-to-day operations of a nonprofit, but the board is responsible to analyze the performance of their leadership. Boards are tasked with completing an annual performance review of the Executive Director. In this review, they can clarify the organization's goals and expectations and address any concerns they might have. Many times this duty is carried about by the board chair, but all board members should have access to the findings. Alternatively, if a nonprofit does not have an Executive Director, the board is responsible for the hiring process and setting the compensation for that role. 


Looking to make your current nonprofit board more effective? We encourage you to reach out to us and schedule a free consultation. With over two decades of nonprofit experience, we will be happy to assist you!

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    Debbi Mallinson enjoys working in collaboration with nonprofit organizations to develop a grant strategy to support their mission.

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