Often times grassroots nonprofits spend time exploring ways to become more effective. The most common areas of evaluation seem to be mission clarity, program development and implementation, staff training, fundraising, and mission based marketing. One area, however, that may not be so deeply investigated is Board performance.
Board leadership is a success factor for organizations seeking to increase organizational capacity and maximize impact. Nonprofits rely on their Board for effective decision making, organizational accountability, donor cultivation, community reputation, and financial and legal oversight. Unfortunately, one essential element of Board leadership that may have been overlooked is full Board financial contribution.
When undertaking fundraising efforts, an organization should be able to demonstrate to the community that each of their leaders are willing to make donations to ensure mission fulfillment. Why should I give to a cause whose own administration does not feel strongly enough to make a personal financial contribution? While not all Board members- especially those in startup nonprofits- are affluent individuals, each should be willing to make a sacrifice in order to lead by example within their community. In addition to making a personal contribution, each member of the Board should be charged with the responsibility of soliciting donations from others with with they have established relationships.
So how do you get your Board to become a fully contributing Board? Asking the Board to give is the job of the President. At the end of each fiscal year, the President should draft a letter to each member requesting their direct donation toward the upcoming budget. If some motivation to give is necessary, remind members to keep in mind that many times other prospective donors, especially foundation grantmakers and major donors, will only make a donation if everyone on the Board has made a capacity gift. Such gifts need not be excessive, they should be to the extent of each individual member’s capacity. By demonstrating that a stretch of your personal budget has been made in an effort to demonstrate dedication to the cause it will influence other members of your community to do the same.
Monday, September 15, 2008
Monday, September 8, 2008
Starting a Nonprofit: Things to Think About
Each year, thousands of people set out to start a nonprofit organization. These individuals are undoubtedly passionate about their cause and truly want to make a difference in their communities. Unfortunately, many start off on the wrong foot because they fail to fully develop their idea through comprehensive planning. Most do not recognize that operating within the nonprofit sector requires a unique set of knowledge, skills, and abilities. To help you identify what area of your plan needs more attention, here are some common things to think about.
What equipment, supplies, and human resources will I need?
Create a realistic budget, and know where you will get funding
How do I make it legal?
• Obtain 501 status
• Make sure you are registered in each state you solicit funding in
• File your taxes to keep from being removed from Publication 78
• Make sure you are exempt from state taxes
Where will I find the following resources?
• Articles of Incorporation
• 501c3 tax exempt services
• State tax exemption & Charity Registrations
• Grant writing Services
• Fundraising Services
• Web development Services
• Bookkeeping and Accounting Services
What Financing will I need?
• Salary
• Rent/ Utilities
• Office Supplies
• Program Supplies
• Fundraising Expense
• Incidentals
What’s my Advantage?
• What skills and experience do I bring to the nonprofit business?
• What solution will you offer that other organizations do not?
• What is your Marketing Advantage?
What makes my organization unique?
• Choose methods of service delivery that are unique
• Do not duplicate the services of other organizations in your community
• Discover ways to collaborate with other nonprofits, offering unique partnership abilities
What equipment, supplies, and human resources will I need?
Create a realistic budget, and know where you will get funding
How do I make it legal?
• Obtain 501 status
• Make sure you are registered in each state you solicit funding in
• File your taxes to keep from being removed from Publication 78
• Make sure you are exempt from state taxes
Where will I find the following resources?
• Articles of Incorporation
• 501c3 tax exempt services
• State tax exemption & Charity Registrations
• Grant writing Services
• Fundraising Services
• Web development Services
• Bookkeeping and Accounting Services
What Financing will I need?
• Salary
• Rent/ Utilities
• Office Supplies
• Program Supplies
• Fundraising Expense
• Incidentals
What’s my Advantage?
• What skills and experience do I bring to the nonprofit business?
• What solution will you offer that other organizations do not?
• What is your Marketing Advantage?
What makes my organization unique?
• Choose methods of service delivery that are unique
• Do not duplicate the services of other organizations in your community
• Discover ways to collaborate with other nonprofits, offering unique partnership abilities
Thursday, September 4, 2008
Church Planting: Beyond Faith and Inspiration
It has been my pleasure over the last couple of years to have the opportunity to work with many passionate, inspired Christians during their journey in church planting. These faithful missionaries have been such an inspiration- demonstrating their devotion to God by working diligently to create a new flock from the unchurched. Reaching out to both believers and non-believers in many areas of the world, those called to plant new churches exude a dedication and zeal that reminds me why I chose a career in the nonprofit sector.
But there is more to strategically planting a new church than simply following God’s call to action. For a new church to be successful in acquiring initial capital, attracting a faithful membership, and expanding outreach ministries to reach all populations in need, church leaders must learn to take on the characteristics of entrepreneurs.
It may seem divergent to view the Church in a commercial sense, however if you think about churches who have achieved extreme success they are operating as a business- a big business. While your goals in church planting most likely have led you to focus on location, congregation, and ways to reach out to disbelievers, you may not have considered the following essential aspects of church administration:
Incorporation- Becoming a legal entity, limiting the liability of those involved, and increasing eligibility for funding and benefits such as tax exemption are of importance. Rules and regulations for incorporation vary by state, so be sure you know the facts in your area.
Bylaws- While I’m sure you’ve developed a Doctrinal Statement and religious hierarchy for your planned church, it is also essential that you develop and affirm Board duties and responsibilities, conflict of interest policy, and checks and balances.
Tax Exemption- Recognition as an exempt organization under section 501(c)(3) provides validation to supporters that your church is legitimate. It provides the opportunity to receive faith-based grants, receive discounted rates on occupancy, and assures the members of your congregation that their tithes are tax deductible.
Marketing- Word of mouth is a great way to develop membership, however other avenues to market your organization are critical, especially if the church you are planting is in an area in which you do not have established personal contacts. Website development is a great start, as about 50% of Americans log onto the web to conduct searches daily. Search engine optimization for your site is also key- if someone is searching for a Christian church in your target area you’d rather your site be at the top of the list of results rather than buried ten pages in.
Grants- There are many established grantmakers out there whose specific mission is to fund religious organizations and churches. Drafting a successful proposal and conducting detailed research into funding agencies may add a much needed source of capital for your organization. While tithes and offering will undoubtedly represent your bulk of funding, think of how many more missions you could undertake if you could generate a few thousand (or more) extra dollars each year via grant funding.
I understand your area of expertise may be in theology and the thought of assuming such administrative responsibilities may seem a daunting task. If that’s the case, you may want to look to outside experts for support. That’s why I’m here.
But there is more to strategically planting a new church than simply following God’s call to action. For a new church to be successful in acquiring initial capital, attracting a faithful membership, and expanding outreach ministries to reach all populations in need, church leaders must learn to take on the characteristics of entrepreneurs.
It may seem divergent to view the Church in a commercial sense, however if you think about churches who have achieved extreme success they are operating as a business- a big business. While your goals in church planting most likely have led you to focus on location, congregation, and ways to reach out to disbelievers, you may not have considered the following essential aspects of church administration:
Incorporation- Becoming a legal entity, limiting the liability of those involved, and increasing eligibility for funding and benefits such as tax exemption are of importance. Rules and regulations for incorporation vary by state, so be sure you know the facts in your area.
Bylaws- While I’m sure you’ve developed a Doctrinal Statement and religious hierarchy for your planned church, it is also essential that you develop and affirm Board duties and responsibilities, conflict of interest policy, and checks and balances.
Tax Exemption- Recognition as an exempt organization under section 501(c)(3) provides validation to supporters that your church is legitimate. It provides the opportunity to receive faith-based grants, receive discounted rates on occupancy, and assures the members of your congregation that their tithes are tax deductible.
Marketing- Word of mouth is a great way to develop membership, however other avenues to market your organization are critical, especially if the church you are planting is in an area in which you do not have established personal contacts. Website development is a great start, as about 50% of Americans log onto the web to conduct searches daily. Search engine optimization for your site is also key- if someone is searching for a Christian church in your target area you’d rather your site be at the top of the list of results rather than buried ten pages in.
Grants- There are many established grantmakers out there whose specific mission is to fund religious organizations and churches. Drafting a successful proposal and conducting detailed research into funding agencies may add a much needed source of capital for your organization. While tithes and offering will undoubtedly represent your bulk of funding, think of how many more missions you could undertake if you could generate a few thousand (or more) extra dollars each year via grant funding.
I understand your area of expertise may be in theology and the thought of assuming such administrative responsibilities may seem a daunting task. If that’s the case, you may want to look to outside experts for support. That’s why I’m here.
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