SKC's Blog

Lessons from Bona View Farm – Tractors and Databases

2011-10-07T09:14:00.000-07:00

Last weekend we sat on our porch and watched our neighbormow his 80 acres and the scant few acres we have. It took him several days to mow, rake andbale the hay. He had a process and theright equipment. By the end of the weekend we were looking out on rolling acresof freshly mown hay. But, what’s this gotto do with databases? There are lessonswe can learn …

The right tractor– The SKC staff is often asked for our recommendations for donor databases tosupport fundraising and communications activities. You may do well with a push mower during thestart-up phase by utilizing excel spreadsheets or an Access database. At some point, you’ll want to step up into adatabase software that helps you not only manage names, addresses and donoracknowledgement letters, but also is a tool that tracks and analyzesfundraising efforts and links to your fund development plan. When considering what product to step up to,whether it’s the tractor with the air conditioning and GPS (Raiser’s Edge) or something mid-rangelike DonorPerfect - do a three year cost analysis. Can you afford the fees now and can yousustain the cost over time? What’s thecost of human effort to implement and maintain?

Follow the contours ofthe land – There is no one size fits all setup. Give considerable thought to the databaselayout and the customized fields. Whoare your key stakeholders and constituents? How do you communicate with them? How do you track and analyze their giving? What information do the end-users (staff andboard) need to see in the reports? Keepyour database and the information you collect relevant. Keep the information in your database secureand respect the privacy of your donors.

Mow often – Usegood database “hygiene.” Developprocedures and protocols for putting data into the system and share with staffand volunteers. Routinely query newrecords and gifts added to make sure procedures are understood and beingfollowed. Reconcile the income recordedin your database with your accounting system each month. If you follow these three basicrecommendations, you won’t be second guessing and wondering whether theinformation is accurate and trustworthy a few years down the road.

At SKC, we help nonprofits develop tools thatsupport their work. We see good databasemanagement as an essential building block to supporting communications, transparency,and the fundraising success of your organization. The end product may not be as pretty as afield of freshly mown hay on a crisp fall day, but it’s a critical piece of yourorganization’s equipment.

Debra Box
Executive Director

Stepping it Up for Your Volunteers

2011-09-22T13:47:00.000-07:00

I stood a few yards away at the long check out table, setting up our auction software station, and watched the beginning of the event chaos unfold. Hundreds of guests tittered and complained to each other, decked out in their festive attire, anxious to check in, find their friends and begin their evenings. But the line had stopped. Volunteers with panicked, confused looks on their faces were frustrated and moving very slowly. Too many committee members shouted out directions to the volunteers and the line continued to slowly trickle through the doors as check lists and sign in forms were combed over and drink tickets, auction booklets, and table assignments were scrambled for and passed out to the continually growing line.

What had gone wrong here? How had this wonderful event turned into a standstill of irritated guests, frustrated volunteers, harried committee members and confused staff? Isn’t this your nightmare? As the Client Administrator with Support Kansas City, I’ve had the opportunity to work with committees for many, many events throughout the area and a continual challenge that I’ve seen for most organizations, exactly what caused this event to unravel, is volunteer management.

Special events can be an exhilarating and demanding way to raise financial support, increase awareness about your organization’s mission, and draw in new friends, donors and volunteers. But special events take time. A lot of time, right? With upwards of 3,400 nonprofits with income over $25,000 in the Kansas City metro area, hosting an average of one to two special events each year, there are an estimated 3,000 special events held in our city alone. That’s a lot of events that are going to need many, many volunteers.

While most nonprofits have some paid staff, many do not have the number of staff necessary to plan, execute and carry out these types of events. For many organizations, maybe even yours, the only time you work with volunteers are around special events. So how do you get volunteers engaged, motivated and prepared to help your organization pull off a stand-out event?

One Team with One Goal: Why are you having this event? Is it to raise money, awareness, friends? All three? Volunteers need to know the main goal of the event; to raise $55,000, increase visibility for your mission in Cass County, or build up excitement by bringing in new friends to meet your staff and fall in love with your mission. Whatever the goal, volunteers want to know what they are working for and how that fits in to your organization’s plan and mission.
Strong Leadership: One key staff person should lead the volunteers. From training, to logistics the night of, to the end of the event and wrap-up thank-you’s afterward, volunteers need to know who they can go to with questions, who has the authority to deal with problems or emergencies the night of the event and who is speaking up for them in planning meetings and committee discussions.
Clear Expectations and Training: This will vary depending on the volunteer’s duties, but whether a committee member, auction table watcher, greeter, or check-out table volunteer, everyone needs to know what their roles and responsibilities are before, during and after the event. If at all possible, training should not take place thirty minutes before the event begins. A walk through of the site, written instructions, contact names and numbers, and a clear timeline of the event should be given to all volunteers, tailored to fit their job description.
Ongoing Open Communication: Many volunteers, particularly committee members and fundraising volunteers have serious financial goals that they are expected to reach for your organization. Calling businesses for silent auction donations, reaching out for sponsorships, these can be daunting tasks even for seasoned volunteers. A weekly update/check-in email sent to key staff and volunteers helps hold everyone accountable and stay on target. If you see a volunteer pulling back, not able to reach their goals or struggling at all, make sure that you reach out to offer support and assistance. “What can I do to help you reach your goals? Is there any information or assistance that you need to be successful?”
Plenty of Thank-You’s: Volunteers can get burned out just like staff can. Volunteers should be recognized briefly at the event if possible and then receive a thank-you letter and a personal thank-you from leadership. You don’t need to throw another special event just to thank your volunteers, but having a wrap up and debrief meeting after the event to talk through challenges, celebrate successes and make changes for next year is vital to the ongoing success of your event. This is the perfect time to thank volunteers in person, and make them feel appreciated and connected with your organization. The opportunity to talk through the positives and negatives of the event helps volunteers feel heard and engages them in advance for next year.

With some advance planning and a cohesive and focused team atmosphere directed by friendly but persuasive leadership, your volunteers will want to come back year after year. Committing themselves to help your organization’s special event grow and improve, making more friends and more money over the years, these volunteers are the key to your special event success. As much as any sponsoring company, or generous donor, make sure you treat them with respect, and make sure everyone has a chance for some fun. Special events should be fun, right?

Kassie Sands
Client Administrator

Women’s Employment Network – 25 Years of Success!

2011-08-11T11:24:00.000-07:00

The third part of a three part series focused on Support Kansas City's 2011 Excellence in Nonprofit Leadership Awards, profiles the agency winner with a budget of less than $1,000,000.

In 1986, Beth Smith and the late Marjorie Powell Allen founded the Women’s Employment Network. They were inspired by a successful women-focused employment program in San Antonio that emphasized self-esteem. Realizing the need for this vital service in our city, they created WEN, the only organization of its kind in the area

WEN has grown significantly in the last 25 years, with over 300 employers that are involved in a variety of ways to serve their clients. WEN plays matchmaker with clients and job posting employers, introducing corporate cultures to their clients through onsite visits, and providing employers the opportunity to volunteer through workshop facilitation, resume review and mock interviewing.

In the words of Cheryl Smith, WEN Board Chair, “Our board believes in the core mission of WEN: helping women help themselves. Our commitment to the women who come to WEN for help is foremost in our minds during our board and committee meetings. With the guidance of the current executive director, the board feels poised to take WEN to new heights.”

WEN leadership is a role model for best practices for nonprofits in governance and accountability. Speaking from personal experience, my first board training was conducted by Beth Smith. Twelve years later, I still draw on the shared wisdom of that experience with the boards I train. We look forward to sharing in WEN’s next 25 years of success!

Watch for WEN’s Annual Legacy Circle event to be held in September and the Fashion Show on September 20th, at the Webster House.

Debra Box
Executive Director

Phoenix Family Housing - A Real Award Winner!

2011-05-06T12:42:00.001-07:00

The second part of a three part series focused on Support Kansas City's 2011 Excellence in Nonprofit Leadership Awards, profiles the agency winner with a budget of $1,000,000 or more.

Ten years ago, Cliff & Jonathan Cohen had a vision to provide services for people living in low-income housing communities that would be unique because the services would be on-site and residents would be able to access them immediately from where they live. They founded Phoenix Family Housing. Phoenix Family Housing is unique in that they serve multiple populations – seniors, families, and youth at all ages and stages of their lives. They tailor specific programs and services to meet residents’ needs, directly on-site, at the housing community where their clients live. Currently, Phoenix Family serves more than 4,400 residents at 30 housing communities in 12 cities across Missouri and Kansas.

Phoenix Family Housing has been identified as a best practices agency by U.S. Housing & Urban Development, specifically noting exceptional service delivery and monitoring and evaluation of services delivered to residents living in low-income housing communities. In addition, the Missouri Housing Development Commission selected Phoenix Family as a best practices agency in service-enriched housing communities.

In addition to receiving the Support Kansas City award, Phoenix has a list of prestigious awards. They are a two-time award winner for the Building Bridges program from Boys & Girls Club of Greater Kansas City; University of Kansas recognition for outstanding intergenerational programs; five-tier Crystal Merit winner for best newsletter from Apartment Association of Kansas City and seven-time winner for best on-site youth activities; Harvesters’ Circle of Hope Award for best partner agency; and People to People International recognition for youth mural program.

The Phoenix Family is a leader in providing life-changing services in our community and exhibits leadership in governance and nonprofit accountability. They were chosen by Support Kansas City because of their stellar commitment to both.

Debra Box
Executive Director

And the Winners are....Congratulations to Phoenix Family Housing and the Women’s Employment Network!

2011-04-22T09:09:00.000-07:00

The first part of a three part series focused on Support Kansas City's 2011 Excellence in Nonprofit Leadership Awards, including upcoming profiles of the winning organizations.

Every day nonprofits throughout Kansas City provide essential services much needed in our community. They do it without any fanfare or glamour. They have staff and volunteers committed to their mission and to excellence. Support Kansas City is proud to recognize two such organizations this year as we award the Excellence in Nonprofit Leadership awards to Phoenix Family Housing (phoenixfamily.org) and the Women’s Employment Network (kcwen.org). SKC is proud to take this opportunity to beat the drum on their behalf!

An independent panel of judges gathers each year to review the applications and their supporting documents. Each year the decision gets a little tougher. It’s exciting to see the commitment to governance and leadership development in all the organizations represented. At a time when the papers have spotlighted large nonprofits who have struggled with governance and oversight, let’s not lose sight of the fact that important nonprofit practices are alive and well for most of our community!

Striving for excellence in nonprofit leadership is not rocket science, it takes a commitment to good governance and a willingness to implement change. There are many resources available to support change:

Resources:

* Boardsource; www.boardsource.org
* The Independent Sector, Principles for Good Governance and Ethical Practice; www.independentsector.org

Training:

* Nonprofit Connect, Network, Learn, Grow; www.npconnect.org
* Midwest Center for Nonprofit Leadership; www.mwcnpl.org

Just to name a few . . .

If you serve on a board and would like to raise the governance bar, get going, it’s not hard. Start with a conversation with your Executive Director or President/CEO. I have a feeling they have been wanting to have this conversation.

SKC would love to see your nonprofit recognized in 2012!

Debra Box
Executive Director

Nonprofit Accounting - What 's Keeping You Awake at Night?

2011-03-29T09:09:00.001-07:00

"What keeps me awake at night?"

That was the question we asked ourselves in developing topics for a lunchtime seminar we held in February. While I am a pretty decent sleeper, I was able to identify a few issues that come across my desk on a fairly regular basis that make me sit up and take notice particularly in regard to compliance issues with the annual Form 990. The Form 990 received a major overhaul by the IRS in 2008 for the first time in 30 years increasing the breath of reporting into organizational policy, governance, disclosure, and compliance. The lists of questions are mind numbing and a simple answer of yes or no will often lead to completing an additional schedule or providing descriptive detail. Gone are the days when the Board Treasurer or Executive Director just signed and filed the 990. There are two issues I often get vague responses on our questionnaire and for which I would like Boards to consider developing strong(er) procedures:

1. Part VI Section B Line 11 “Has the organization provided a copy of this Form 990 to all members of its governing body before filing the form? Describe in Schedule O the process, if any, used by the organization to review this Form 990.”

This is a great time for the Board to discuss the process. Who should review the Form 990? Is it enough for the Board to be emailed a copy once it is approved by the Treasurer or Finance Committee? Does there need to be a formal presentation of the 990 at a Board meeting with documentation in the minutes?

2. Part VI Section B Line 15 “Did the process for determining compensation of the following persons include a review and approval by independent persons, comparability data, and contemporaneous substantiation of the deliberation and decision? a. The organization’s CEO, Executive Director, or top management official; b. Other officers or key employees of the organization. If ‘Yes’ to line 15a or 15b, describe the process in Schedule O.” I have seen very few strong compensation policies and processes. Take this question to the Board or Executive Committee and say, this is what the Form 990 is asking. Is our process sufficient or do we need to do more?

These are two issues that a Board can address within their review of Policies and Procedures. Other concerns I have regard the public support percentage on Schedule A and Unrelated Business Income (UBI) of over $1,000. The later was a topic of discussion at a breakout session at the AICPA Not-for-Profit Industry Conference I had the privilege to attend several years ago. There is a tendency to regard UBI as evil and undesirable when there are situations where the cost of filing a Form 990-T and paying the tax is minimal compared to the revenue stream generated. A historic home generates income by renting out the gardens for wedding and receptions. It is not a part of their mission, but the net income generated (after paying the requisite taxes) provides funding for programming and operations in a tough economic times. Are you wondering about public support percentage mentioned earlier? Your Form 990 preparer will complete additional schedules to determine income or revenue that are excluded from the calculation made on Schedule A. If you notice a downward trend in your percentage over time, you need to ask why. If it drops below 33 1/3 % your organization is at risk of losing its nonprofit status. And that should be keeping you awake at night!

Elizabeth Liddle, CPA Client Accountant

Nonprofit Compliance - What's Keeping You Up At Night? - Part 2

2011-03-18T12:50:00.000-07:00

This is the second posting in a series of two-part series written by guest blogger Christine DeMarea, Partner at Husch Blackwell and Feb. 9, 2011 workshop host and presenter.

The truth is in this day and age, with donors facing considerable financial challenges; donors are scrutinizing how a nonprofit operates. Without full confidence of the public, nonprofits will be unable to raise funds and further their charitable causes.

Corporate Sponsorship versus Advertising - Issues that should be considered. The IRS will look at the payment made to a nonprofit by a corporate sponsor and decide whether the payment is a tax-free gift (charitable contribution) or a taxable advertising payment. The IRS focuses on whether the corporate sponsorship has any expectation that it will receive a "substantial return benefit" for its payment. If so, the payment is considered taxable to the nonprofit. These rules are set forth in the Internal Revenue Code, section 513(i).

1. Avoiding "Substantial Return Benefit" Classification. In order to avoid this classification, nonprofits should structure their acknowledgement of corporate sponsorships to focus on the support the corporation provides the nonprofit's mission. Acknowledgments that do not cross the line include:
• The sponsor's name, logo, general phone number, locations, and internet address in printed media, or on a nonprofit's website.
• Value-neutral displays of a sponsor's products or services, or the distribution of free samples of a sponsor's products at a nonprofit event. The nonprofit should not endorse the product/service. • A single static internet website link that takes the viewer only to the sponsor's home page - not to a page where a product or service is marketed or sold.

2. What is considered a "substantial return benefit?"
• Providing prices, indications of savings or value, providing endorsements, or inducements to buy a sponsor's product or services.
• Providing a link from a sponsor's name/logo on the nonprofit's website to the page of a sponsor's website where a product or service is sold, or listing the phone number where the product or service can be ordered.
• Providing more than token services or other privileges to the sponsor in return for its sponsorship payment, such as tickets to an event that are complimentary and not otherwise available to the public or lavish receptions.
• Accepting a payment from a corporate sponsor that is contingent upon the level of attendance at the nonprofit event.
• Providing sponsors with advertising or acknowledgments in a nonprofit's regularly scheduled and published materials, such as a eNewsletter, is considered to constitute advertising and therefore the sponsorship payment is taxable income for the nonprofit.

Nonprofit Fundraising Registration - One more thing to worry about. Registration Requirement. Thirty-nine states plus the District of Columbia require nonprofits that solicit donations in their jurisdiction to register with a state agency. They are very complicated, confusing - and unfortunately, expensive. Every state has different requirements, forms and rules. Just figuring which states a nonprofit must register can be a nightmare.

Why Worry About It?
Although these laws have been on the books for year, most nonprofits largely ignored them. For a number of reasons, a nonprofit should determine whether they are in compliance. IRS Scrutiny. In the past, the IRS did not ask for information from nonprofits about whether they were in compliance with sate registration requirements or what states they were registered in. However, this changed in 2007 when the IRS adopted new, different forms 990 and 990-EZ. The new form asks two questions relating to state registration:

1. Part VI, Line 17 - The first question must be answered by all nonprofits. This question asks "List the states with which a copy of this Form 990 is required to be filed." All but three of the 39 states that have fundraising registration require that you file a copy of Form 990. You are required to list every state - you are not allowed to say "all states".

2. Schedule G. If your nonprofit reports payments of more than $15,000 for expenses for professional fundraising services. IRS Penalties for Filing Inaccurate Forms. It is important to file to file an accurate return. Penalties can be harsh. You could be charged a penalty of $20 a day up to the lesser of $10,000 or 5% of your annual gross receipts. Nonprofits with annual gross receipts exceeding $1 million are subject to a penalty of $100 a day up to a maximum of $50,000 penalty. Responsible persons could also be held liable and if you fail to file an accurate tax return for 3 consecutive years, you could loose your tax exemption. An organization is better off explaining why or what actions you are taking to remedy the situation as opposed to trying to skirt the truth with less than honest answers. Remember - the IRS can't take action if you failed to register, it is the state that will need to take action. There is no need to have both the state and federal government pursuing you.

State Scrutiny. States are more becoming more concerned about revenue. As a result, they are becoming more active in pursuing nonprofits who have not registered. Other states are starting to collect fees and giving other states some basis for pursuing nonprofits. (In 2004, NY collected $500,000 in fines. In 2009, Washington sent letters to 39,000 nonprofits. Liability Exposure. If you are assessed a penalty for failing to register, the board members may be personally liable for the penalties. This is a surprise to many nonprofits. Unlike many other debts and liability of a nonprofit, if your organization is fined for failure to register with a state (or failed to file an accurate return with the IRS), your board of directors can be held personally liable for those fines. Many state solicitation laws provide that a nonprofit cannot reimburse its directors, officers or employees for such fines.

You might be asked by Donors/ Funders/Auditors. Many sophisticated donors know about state registration and are starting to ask. You want to be able to answer that you have complied with applicable law.

My Nonprofit is Probably Exempt. It is possible that your nonprofit will not be required to register but you want to be certain. Some facts to consider include:
• Your Website might "do you in" and trigger registration. If you have a "donate" button, this might cause you to fall within a state's registration requirements. There are steps you could take to avoid this.

Christine DeMarea Partner, Husch Blackwell Christine is highly regarded in business and estate planning, and charitable planned giving. She counsels clients on estate planning and tax-exempt organizations, assisting in administrative, legal, tax and compliance matters.

Nonprofit Compliance - What's Keeping You Up at Night?

2011-03-18T11:50:00.000-07:00

Continuing our resource theme from our Feb. 9, 2011 nonprofit compliance workshop, this is the first of a two-part series written by guest blogger Christine DeMarea, Partner at Husch Blackwell and workshop host and presenter.

As any Executive Director and nonprofit board member will tell you running a Nonprofit Organization is challenging. There are many issues that must be addressed and considered on a daily basis.

Amending Bylaws - Corporate Governance: The nonprofit's formation documents provide the blue print by which the nonprofit operates. If you are operating in a manner that is contrary to your Bylaws / Articles / Trust Agreement then you are breaching your duty to the organization. In addressing this issue, we strongly suggest that the nonprofit reviews its formation documents and if a change is needed, properly amend the documents. The steps that should be taken include:

1. Make sure your organization complies with your bylaws:

Restate or Amend? If you operate as a nonprofit corporation, changes could be made as an amendment to the section or a restatement of the entire document. This decision is usually based on how many prior amendments there have been and how many changes are being made to the document.
If your organization operates under a trust agreement, there are more formalities that will need to be followed. This is a different body of law.

2. Obtain Board or Trustee approval of such changes. The organization's documents may set forth the procedure to amend your bylaws.

3. If you are required to file a Form 990/Form 990EZ, make sure you satisfy the reporting requirements for reporting changes made to the organizing or governing documents on the 990.

State Open Meeting Laws:

1. What are they? Some states have laws known as "sunshine laws" that require groups to open their meetings to the public. However, these laws only apply to governmental or quasi-governmental groups. Unless the nonprofit is a governmental entity, there is no obligation to open board meetings to the public. In limited situation, your nonprofit might be subject to the nonprofit laws.

2. In the current nonprofit governance environment, it is important that nonprofit boards and their directors to be mindful of the factors affecting the nonprofit organization's potential disclosure requirements.

Excess Benefits / Self-Dealing Transactions

1. Private Inurement. The prohibition on private inurement is absolute. Even one dollar of private inurement could result in loss of tax exemption. Because of the harshness of the penalty, private inurement was infrequently involved. As a result, most acts of private inurement were not penalized. The offending nonprofit continued to operate without punishment.

2. Excess Benefit Transaction. To address this enforcement disparity, Congress enacted sanctions under the Excess Benefit Transaction statute under Section 4958 in 1996. These rules paralleled and overlapped the private inurement rules.

a. Section 4958 imposed intermediate sanctions on any excess benefit transactions.

b. Anytime a nonprofit enters into a transaction with a person that has had substantial influence over the nonprofit at any time over the last 5 years (or is a family member of such a person), the excess benefit rules could apply.

c. Penalties: Failure to comply may subject the recipient of the excess benefit and the board to penalties.

Examples:

Compensation
Sale / Lease of Real Estate

3. Rebuttable Presumption Test. If a transaction is one that could give rise to intermediate sanctions, the nonprofit should implement policies so that the burden shifts to the IRS. This is known as the rebuttable presumption test.

Christine H. DeMarea
Partner, Husch Blackwell

Christine is highly regarded in business and estate planning, and charitable planned giving. She counsels clients on estate planning and tax-exempt organizations, assisting in administrative, legal, tax and compliance matters.

Certified Confidence

2011-03-04T07:03:00.000-08:00

In the more than ten years that I’ve worked for or volunteered with nonprofit organizations, I’ve struggled to find my place. As a social worker and case manager working first with children transitioning out of foster care and then with adults with developmental disabilities, I loved the feeling of making a difference in my clients’ lives everyday. That sense of giving back to the community and helping those with real needs feel safer, more independent and confident carried me through the crazy hours and often chaotic family struggles. But the emotional impact and stress of that work was not something I could tolerate for the long term. I think I’ve always known that my career would include working for nonprofit causes, but where did my skills best fit in this vast and varied nonprofit community? Then in 2007, I joined Support Kansas City.

Hired as Client Administrator, my duties included database management and fund development support for a variety of nonprofit clients. During the first couple of years here, the majority of my continuing education came from mentoring, coaching, and working along side older more experienced fund development specialists. These women were talented grant writers, special event planning gurus and had the wealth of experience in major giving and capital campaign fundraising that I hoped to gain myself. Under their tutelage and with the ongoing guidance and support of Debra Box, our executive director, the last four years have been filled with quality hands-on learning experiences, dedicated clients with vital missions, and the strong realization that after almost ten years in the nonprofit sector, I’ve found my niche right here in fund development.

In 2010, as Support Kansas City focused on growing our fund development department, I decided to take my education to the next level and pursue a Certificate in Fundraising through the University of Missouri Kansas City’s Midwest Center for Nonprofit Leadership. This program is composed of two core required classes, Organizing for Successful Fundraising and Creating and Implementing the Annual Development Plan and two chosen electives, and includes more than 96 hours of coursework. After completing the coursework and earning my certificate just last month, I walked away with some powerful new information to impart to my clients, renewed confidence and new connections in the community.

The strength of these classes comes from three central components: First, the vast wealth of knowledge and experience of the two instructors, Senior Fellows with the Center, William Bergosh and Robert Buchanan. These two gentlemen are great teachers, utilizing decades of experience to impart their war stories, examples of their own mistakes and grand successes. They are open and approachable, with their main goal to empower each student to understand the core principles of fund development. And to impart the fund development director’s role in the planning and organized decision making processes that every successful nonprofit must undertake with their leadership and staff annually.

Secondly, the carefully structured and hands-on curriculums of these courses are designed to be studied and immediately implemented within a nonprofit organization. The ask techniques, annual fund plans, special events worksheets, gift charts, direct mail guidelines and specific well-tested major giving methods are easy to understand, simple to customize and literally can be put into practice the next day.

Finally, the networking benefit of enrolling in these courses is invaluable. Fund development at its core is about relationship building. And that is exactly what these classes help students to achieve. My classes were filled with foundation staff and leadership, fellow fund development staff, executive directors and program coordinators from nonprofits all over the area. The laid back atmosphere of the classes encouraged constructive feedback and discussion after presentations, open dialogue regarding the struggles and challenges of nonprofits both large and well-established and those grassroots, brand-new groups. That open dialogue ensures that my fellow students and I will develop ongoing relationships in the close knit community that is Kansas City’s nonprofit sector.

The combination of ongoing hands on experience, strong mentoring from talented, mature fund development directors, and now the addition of the Certificate in Fundraising course work, I feel more prepared and confident than ever in our ability to help nonprofits increase their fundraising dollars, develop cohesive and targeted fund development plans that align with budgeted goals, and create compelling and engaging marketing materials to increase awareness about their organizations, raising both funds and friends. Through board and staff training, annual fund implementation and capital campaign planning, I feel like I’m making a difference every day, giving back to the community by helping people find the best ways to raise the funds and engage the public in the valuable work they’re doing, serving Kansas City and fulfilling their mission. That’s my mission, and our mission at Support Kansas City.

Kassie Sands
Client Administrator

2011-02-15T10:52:00.000-08:00

Nonprofit Compliance – What’s Keeping You Awake at Night?

On February 9, 2011, the SKC team of experts partnered with the legal experts at Husch Blackwell to tackle some tough compliance topics that all nonprofits must deal with. Our desks are full of things we could do, or should do, but getting our minds around what we must do can be cause for insomnia!

We couldn’t flush out every possibility in a 2-hour workshop, but we did our best. Here are some of the questions the experts tackled as part of their presentations:

• Corporate governance – bylaws/articles
• State open meeting laws
• Corporate sponsorship vs. advertising
• Nonprofit fundraising registration and state scrutiny
• Excess benefits/self-dealing
• Website pitfalls
• How to avoid creating solicitations that restrict gifts
• What are the rules for recognizing contributions?
• 990 policy review – how is the 990 shared with the board before filing? Does the board have policies in place that are asked on the 990?
• What is the public support test for keeping your charitable status and is your nonprofit at risk?
• Changes in 1099 requirements
• Health care reform – tax credits for nonprofits

The SKC staff and Christine DeMarea with Husch Blackwell have agreed to blog about these important topics. Please follow our blog postings for a more in-depth discussion on each topic and additional resources.

Hopefully, the information and the resources provided will help us all sleep better at night!

Debra Box
Executive Director

Partnerships Build Capacity

2011-02-04T14:07:00.000-08:00

Partnerships build capacity. The most recent publication of The Nonprofit Quarterly (Winter, 2010) has a number of articles reporting innovative ways to build capacity through by shared resources and partnering. These examples include sharing staff between organizations with similar missions, co-locating, advocating as a group, and the changing role of governance in networked organizations. The articles are full of great examples of changes already happening at innovative nonprofits.

I think back to the early years of SKC and how innovative we were in our community. I am grateful to the “early adopters” who understood how utilizing our services could help them focus on their mission. After ten years, we are still considered unique. And we continue to be innovative in the ways we help our clients. We believe that we are partners with our clients. One executive director stated it best when he said “I wish my organization had enlisted support from SKC sooner. Our relationship feels more like a partnership than a vendor relationship. This partnership maximizes our organization’s fiscal and human resources”.

If you are interested in reading more about capacity building, you can download articles from The Nonprofit Quarterly website at www.npqmag.org

Debra Box
Executive Director

Looking Back at 2010

2011-01-12T09:01:00.000-08:00

Writing about last year’s accomplishments always feels a little stiff and formal to me, but 2010 was an exciting year for SKC. We celebrated our ten year anniversary. As part of that celebration we awarded the Excellence in Nonprofit Leadership Awards to the Rose Brooks Center and the Down Syndrome Guild of KC. SKC was recognized as well by the Kansas Department of Commerce, we received their 2010 Business Excellence Award.

I am proud of the services we provided and our great support team. SKC provided services to 110 nonprofits, representing almost 10,000 hours of direct client services. There seems to be a lot of “10’s” in the statistics, but we lose the trend when we talk about staff. SKC has 11 nonprofit specialists on staff, and they are all perfect “10’s” in my book.

Some might think 13 is an unlucky number, but not so for the 13 SKC board members. This is an engaged group with diverse skills. The SKC Board supported our leadership award and greatly contributed to the success of our ten year anniversary event. They are always willing to be a sounding board and provide their wisdom and guidance.

2010 was not a year of recovery for our nonprofit sector. We saw some agencies gain, some lose, and some treaded water. Those with a solid focus on their mission and an engaged board tended to be in the gaining and treading water categories.

I look forward to 2011 with cautious optimism. I believe that SKC has been a solution for our clients who are stretching resources and searching for nonprofit expertise. I often ask our clients if SKC really delivers on our mission, do we really empower them to focus on their mission? One of my favorite responses was “absolutely, my board and I are able to make good sense of the financial situation and that has helped us do what we need to do. We were able to cut expenses, change programs and still serve the same number of kids.”

Best wishes for 2011, and here’s hoping we all get to do more with more in 2011.

Debra Box
Executive Director

Support Kansas City Announces New Award to Honor Kansas City's Best Nonprofits

2009-12-15T09:37:00.000-08:00

Mission, KS - Support Kansas City, a local nonprofit providing business and administrative support services to other nonprofits, will celebrate their ten year anniversary by honoring two local nonprofit agencies with the 2010 Excellence In Nonprofit Leadership Award. The awards will be presented to two agencies: an agency with a budget of $3 million or less and an agency with a budget of more than $3 million. The awards will be presented on April 29, 2010 during Support Kansas City’s 10 Year Anniversary Luncheon held at the Kauffman Conference Center.
Jim Mueth, Vice President at Bank of America Merrill Lynch will serve as the Honorary Chair for this event. The call for nominations and nomination forms can be found on Support Kansas City’s website: www.supportkc.org.

This new award is distinctive because it will honor agencies that exhibit a strong and balanced relationship between the board of directors and executive staff, as well as meeting criteria drawn from the Nonprofit Sector’s Principles for Good Governance and Ethical Practices. “In the last ten years we have worked with over 200 agencies in Kansas City,” said Debra Box, Executive Director for Support Kansas City, “and we felt it was important to recognize the excellent leadership standards at the organizational level in our nonprofit community.” All nonprofits in Kansas City are eligible for the award. An independent panel of judges will select an agency in each of the categories, based on applications submitted.

Support Kansas City’s 10 Year Anniversary Luncheon will also recognize several key stakeholders and supporters, including founder, David Ross. More details regarding the event will be forthcoming, including reservation information, sponsorship packages and additional 10 Year Anniversary activities at www.supportkc.org.

Support Kansas City is based in Mission, Kansas and provides nonprofit organizations in Kansas and Missouri, with business and development expertise, empowering them to focus on their missions.

Debra Box
Executive Director

Stewardship’s Role in Planning and Managing

2009-10-06T06:53:00.000-07:00

Over the last few months I’ve facilitated several planning retreats for our nonprofit clients and have been a participant in our own agency’s retreat. I hear the genuine concern boards and staff have for the future. I know this is driven by our current economic downturn. Nonprofits have always been at the mercy of charitable giving, but the economy looms even larger as we make our best attempts to lay out reasonable goals and objectives for the future.

The Maori New Zealanders have a phrase for planning for the future “katiakitanga,” which means that the management actions you foster today will create benefits for the future. Or put more simply, the small actions we take today will root and grow if they are nurtured. It’s important to infuse some katiakitanga in both our plans and our actions. We want to create planning documents that include compelling action items as part of our stewardship, my western interpretation of katiakitanga. Stewardship is management’s responsibility to properly utilize and develop its resources, including its people, its property and its financial assets.

As leaders of nonprofits we have the challenging responsibility to manage and develop resources in an environment of uncertainty. I think the Maoris’ challenge to us would be respond to uncertainty by taking a look at our resources differently and “explore outside our comfort zones.” As you prepare to plan for 2010, you might want to consider the values the Tipu Ake incorporate in their leadership model:

· When we focus on outcomes, nothing is a barrier

· We have no room for (stingy) gatekeepers

· Keep our processes simple and effective (KISS principle)

· Sense what is happening around us; reflect on it together to learn

· Grow win-win alliances; look outward to connect with external energy

· Leave our organizational hats at the door

· A kumura (sweet potato) never calls itself sweet – that is for the eater to say (Ego)

· Find courage to face the hard issues – explore outside comfort zones

· Our biggest enemy is the one within each of us; conquer that first

You can read more about this organic approach to planning and managing resources at their website:http://tipuake.org.nz/index.php

Debra Box
Executive Director

Strategic Reporting – Who Wants to Know?

2009-09-30T08:35:00.000-07:00

Last week I presented a workshop to local nonprofits entitled “Strategic Reporting.” I shared with the group three key concepts:

1. Know your audiences – who’s going to review these reports?

2. Different audiences may need different information, but everyone appreciates key information presented in a way that is clear, straight forward and easy to interpret.

3. If you have a strategic plan, are you reporting your plans progress on an ongoing basis to board and staff?

Knowing your audience will help you frame how you report key information. Board members require different information than staff or donors. Educating prospective donors about your organization might include information you wouldn’t need to share with current donors since they’ve already made a commitment to the organization.

The last time I blogged I touched on the importance of measuring your agency’s performance. Identify what is “key” for your agency to report performance, determine the best way to measure performance and develop meaningful report formats. Wikipedia defines key performance indicators (KPI’s) as “a measure of performance” and suggests you can identify KPI’s by asking different stakeholders “what is really important.” I divide the stakeholder interests into three core areas; mission-delivery (program), agency infrastructure (resources needed to deliver programs), and financial (earned revenue and support revenue) and generate KPI’s for each of these core areas.

You can use the SMART(ER) method to test KPI’s and how you would report performance progress:

Specific
Measureable
Attainable
Relevant
Time-bound
Evaluate
Reevaluate

Almost a third of the workshop attendees responded that they routinely reported against their strategic plan’s progress. Strategic reporting ultimately means that reporting links to your strategic plan. Strategic reporting includes key measures for mission-delivery, infrastructure and finances that are presented in a way that stakeholders can evaluate progress and make good decisions in a timely manner.

For the full workshop podcast go to http://www.npconnect.org/page/podcasts_landing_page/

Resources:
Liveunited.org/outcomes
Innonet.org
BoardSource.org (Dashboard Generator)
The Strategy Focused Organization by Robert S. Kaplan and David P. Norton

Debra Box
Executive Director

Tracking and Reporting Agency Performance

2009-08-25T12:41:00.001-07:00

Does your nonprofit agency have a way to measure performance for your organization? Not just the financial measures, but mission delivery and the organization’s effectiveness? The tool agencies most commonly use to measure and evaluate the agency's overall performance is called a dashboard or sometimes a scorecard.

Your agency performance reports should help you better lead your agency and make informed decisions. Recently, I heard two hybrid car owners with different models and years discuss how their dashboards provided information and the layout of their respective dashboards. It appeared one model had a dashboard that clearly defined the car’s performance and better reported what the engine was doing. The car owner stated simply, “because I have been monitoring what’s going on with the engine and the mileage performance, I’ve changed my driving style.”

Just like your car’s dashboard, your organization’s dashboard should be designed to help monitor your agency’s performance. Board meetings should include discussions of not just the financial reports, but should also include key information that helps the leadership team make better decisions about the agency’s mission-delivery and effectiveness. Outcomes are not just for grant reports. They should be integral to your ongoing reporting systems and should be shared at both board and staff level. Measures should be meaningful, linking actions to outcomes. Identifying key performance measures and who owns them creates a culture of accountability and “reportability.” helping board and staff better understand their roles and actions in support of common goals.

If you are just exploring how to create a dashboard or scorecard, solicit the help of your staff and board. If you have a strategic plan, it should be developed to a level of measurable initiatives that create the framework for a strong reporting tool. If you don’t have a strategic plan, well, that’s another blog.

You may want to consider ordering the dashboard workbook and worksheet tool available through BoardSource at www.boardsource.org. You can also utilize an Access application available at www.opengatesw.net or Xcelsius Engage 2008 is available for nonprofits that qualify at www.TechSoup.org.

Debra Box
Executive Director

Working Smarter and Harder?

2009-08-12T14:31:00.000-07:00

I keep hearing this tentative questioning among my colleagues asking “how are you doing?” and the responses seem to be, “we’re working a lot harder to accomplish the same things with less.” Workloads have changed. Most aren’t complaining, they’re happy to have workloads. They’re even happier if their paychecks haven’t changed. You’ve heard the saying “work smarter, not harder.” In these times of financial flux, defining “smarter” takes on a broader meaning. Smarter may need to be redefined.

Smarter in this economy may mean taking a hard look at resources and balancing what’s deliverable from a mission perspective against what you have or can count on having. What are the agency’s core services and how best can services be provided to those who count on them? It’s important to serve those that count on your agency’s services well while not letting the quality of your programs suffer. Internally is your agency operating efficiently? Externally, who might want to share resources or models of efficiency?

Let staff know you appreciate their efforts and their ideas. Encourage them to communicate with you and their teammates. Making changes and seeking out creative solutions requires current, solid information. Engage staff in some imaginative discussions at staff gatherings that capture fresh ideas and solutions.

Smarter definitely means giving your board members a true accounting of what you’re dealing with. Ask them for their support and advice. Define for them what changes you are seeing and how these changes impact the agency and how they can help. Keep in mind they may be dealing with these same issues in their professional lives. Their role is to govern, strategize, fundraise and advocate, but they can also be your cheerleader. Good old moral support is always appreciated and doesn’t cost anything.

Communicate with your funders and donors. Let them know what actions the agency is undertaking to efficiently respond to the needs in your community. Seek out their opinions and advice as well.

And always, always find out what your constituents need. Your agency’s existence is based on what you provide for them.

You might want to read the seven steps for managing in tough times from the Bridgespan Group which includes a survey of 100 nonprofit leaders:

http://www.bridgespan.org/LearningCenter/ResourceDetail.aspx?id=2638

Debra Box
Executive Director

33 Principles for Good Governance and Ethical Practice

2009-07-27T08:40:00.000-07:00

I love it when someone makes my life easier! In 2007, the Independent Sector created 33 Principles for Good Governance and Ethical Practice as part of its efforts to strengthen good practices for the nonprofit sector. I use the principles as guidelines for the board development and strategic planning assistance we provide to our clients. Now The Independent Sector has teamed up with BoardSource and developed a great workbook based on the principles, The Principles Workbook: Steering Your Board Toward Good Governance and Ethical Practice.

The workbook is a very practical tool, with well-developed sample worksheets that are visually appealing. Each principle has good background information, solid definitions, and focused worksheets. There is sound guidance for using the workbook. The principles are divided into four sections; legal compliance and public disclosure, effective governance, strong financial management, and responsible fund-raising.

Most of the language and layout is closely aligned with strategic planning tools that have become more commonplace. The worksheet action steps sync up nicely with strategic planning and reporting. It also aligns with the policy questions asked as part of the revised Form 990. If you’ve followed the principles, you’ll be well-versed in the 990 governance questions.

Not every principle and every worksheet applies to every nonprofit organization, but the workbook is substantive and a wonderful resource. You can download a free copy from the Independent Sector’s website at www.independentsector.org. Happy reading! Mine is a little dog-eared already.

Debra Box
Executive Director

Buddy - The “Model Volunteer”

2009-04-22T11:01:00.000-07:00

As volunteers go, Buddy is one of the best - ever. This claim was made by one of the executive directors who joined us for our April 16th, executive director brown bag lunch. Our topic that day was volunteers. Everyone in attendance recognized how important volunteers are to each of our agencies and how much they contribute to our organizations. From serving as board members to envelope stuffing, it takes many hands and many talents to make light of the work we need to accomplish.

But back to Buddy, what makes him so special? He’s always available, and never complains about the hours. He’s friendly and supportive. He never says anything, but you know he’s listening. The kids love him, but what kid wouldn’t love a Shetland pony? Yes, Buddy is a pony who works in one of the equine therapy programs. He’s a four-legged volunteer with plenty of heart – but don’t ask him to stuff envelopes.

Getting the right volunteers for the right jobs is critical in developing a successful volunteer program. An agency needs to identify what tasks are best suited for volunteers and what tasks are best suited for paid staff. Keeping track of volunteer expertise and volunteer time is essential to planning, assigning and acknowledging our volunteers. Recognizing volunteers and acknowledging them for what they’ve done is equally important. We can’t say “thank you” enough for a job well-done.

The SKC team, Kassie, Francie and Elizabeth took the discussion even further and provided some guidelines on recording and valuing volunteer time, what volunteer time can be booked on financial statements, and what can’t. Reporting the impact of some services provided by volunteers might not belong on the financial statements, but shouldn’t be overlooked in newsletters, annual reports and funding requests. You can find great examples and definitions at blueavocado.org in their March 14th newsletter. We’ve also uploaded some websites on our resource page.

We had a great discussion that day, and shared some wonderful ideas and resources. We all agreed we could use some quality time with Buddy!

Debra Box
Executive Director

From the Board President

2009-02-17T08:06:00.000-08:00

I was invited to participate as a panel member in the Board Chair Boot Camp on February 3, 2009, sponsored by Nonprofit Connect. The four-hour workshop consisted of a three hour training class, led by Larry Guillot from Park University, Hauptmann School of Public Affairs, followed by a one-hour panel discussion. This is the first time this workshop has been offered: congratulations to our board member Amy Mulligan Kennedy for putting together a great program for this sellout event! Amy serves as Education and Member Services Manager for Nonprofit Connect.

The other panel members were Tracy Foster, Board Chair of KCPT, Gavin Steketee, Board Chair of the Dream Factory and Jarene Stafford, Community Volunteer, which represented a wide variety of agencies and board leadership experiences. In our overview, I described some of the keys to our success at Support Kansas City, which include recruiting and developing good people, developing a commitment to planning and processes and measuring and ensuring accountability for results.

We had many good questions from the participants, but one stuck with me. She asked, "What suggestions would you have to get started as an incoming board chair?" My response was to spend the most time developing relationships with the executive director, other board members and staff. Investing time and energy developing those relationships is the key to your success as a board chair, and having those solid relationships in place are indicative of a high-performing board and agency.

In this economy, I can't think of a better place to get a stellar return on your investment.

Gene Kelly
Board President

REPUTATION - AN INTANGIBLE ASSET

2009-02-10T07:49:00.000-08:00

Building and protecting your agency's reputation in the community may be a nonprofit's best untapped asset in these uncertain economic times. During a recent discussion about the strength of reputation with a former board member, he provided some insight about how important this is in his funding circle. Reputation is an intagible asset that may not be valued until it's lost. I sat up and took note and made a mental inventory of those characteristics of reputation that our board and staff felt were important.

An understanding of the agency's mission and programs - the community may have heard of your agency, but oftentimes there may be confusion about what your agency actually does. Support Kansas City provides business and administrative support services to other nonprofits. It took a number of years for the community to understand how we serve our nonprofit clients and the value we bring to the community.

The people who serve your agency further your reputation in the community. Board and staff are the faces and voices of your agency. Key to reputation success is attracting and retaining quality staff and volunteers that have the skills to deliver on the mission, are loyal and committed to the agency, and understand how they serve the community.

Transparency is the sign of our nonprofit times. More time is demanded of agencies to report at higher levels of scrutiny. Don't let time constraints tempt you to under-report and fail to put your best foot forward. Accurate and timely reporting with clear measurable outcomes only reinforces the good works the agency provides.

The next time you and a board member approach a prospective donor to ask for support, remember you reputation precedes you.

Debra Box
Executive Director

WELCOME!

2009-02-10T07:45:00.000-08:00

Now in my almost seventh year leading Support Kansas City, it's time I take advantage of blog technology to share ideas. I will develop my blog entries the same way I have approached my communications in the past, by sharing the wisdom of both the nonprofit clients we serve and our capable staff and board! You can look forward to comments from staff, board and postings with quotes from clients.

Now more than ever our nonprofit community needs to share resources and support each other in collaborative and meaningful exchanges of information.

Thank you for reading this blog.

Debra Box
Executive Director