Strategic Planning

The strategic plan identifies where the organization is going and how it will get there. It is a work in progress that is never quite complete. The result of strategic planning is a written document that can be use by the staff, board and committee members. It will guide the organization for several years. It will be used to form the development plan.

NPO’s are formed to meet the needs of the community so it is necessary to look at all current, relevant needs assessments in your service area. You don’t want to provide a service that is already being provided by another organization or just is not that urgent of a need in your service area.

Take a look at the services that you are currently providing. Are they self supporting? Is there still the need for a particular service? What outcomes are you seeing because of your services? Where are the funds being obtained for your programs? Is there reasonable expectation that the funding will continue? Is there enough community interest in your program?

Do a analysis. There are several books on this process of identifying your NPO's strengths, weaknesses, opportunities and threats. The SWOT Analysis: Using your Strength to overcome Weaknesses, Using Opportunities to overcome Threats Strategic Management and Business Analysis Marketing and Competitive Analysis Templates and Tools

Once all this information is gathered the strategic planning process can begin.

The first step is to Form a Planning Committee. The committee should be made up of individuals directly affected by the plan such as board members, staff, community members, donors, clients, and/or current volunteers. A mix of volunteers from different ages, ethnic back grounds, geographic areas and income levels should be considered.

Decide who should write the plan. The executive director usually takes ownership of this task.

There are several key components to the strategic planning process:
1. Mission
The mission statement describes the purpose of the non-profit. The reason it exists. Who you serve and how you serve. See: The Mission Statement Posted 3/24/10
2. Values Ethical stance that the NPO will take. They guide our actions.
3. Goals A subsection of the mission that will be addressed.
4. Objectives Designed to meet your goals. Time-based and measurable indicators of success
5. Activities Specific plans indicating who will do what, when and how.
financial guidelines

NPO’s that already are established may just have to re-examine some of the components. For instance, the mission of a well established organization may need updating or may be still relevant. If you are updating a current strategic plan, you may find in the preparation stage that the community needs are still in existence and only the activities need to be adjusted.
Remember that the strategic planning process takes time and careful consideration. Do not rush the process. Once the document is completed it is usually relevant for 3 to 5 years. But don’t shelf it. Take a look at it periodically and make sure you are on track.

An Evening Celebrating the Arts

That is the name of the fundraiser I attending last night in the Poconos. For those of you that have never heard of the Poconos, the area is located in a sleepy area on the east side of Pennsylvania about 70 miles west of New York City. There are many beautiful trees, hills, and lakes. A sportsman's dream. On the weekends many tourist land in the Poconos to enjoy skiing, golfing and getting away from the city.

Back to the event. This was a fundraiser for the arts. The invitation stated: “Please join the Pocono Arts Council as it promotes the best regional visual and performing artist.” There was a silent and live auction, entertainment by Christian Porter and Walk-about Dining AKA buffet.

The premise is that you walk in have a drink (cash bar) bid on a few items. And at the chosen time enter the dining area. At this point you choose a line to stand in. There was one line for salads one for the entre. Once most of the guests are seated a few announcements are made (mostly thank you’s) and then many guests got back up to stand in line for dessert. Once everyone that was going to leave had left and cooled off the room to an icy 50 or so degrees by opening the door and the rest returned to their seats the bidding began.

All in all it was a very nice evening and the Arts Council made some money. The artist donated half of the final bid price, for their art, to the council. The tickets were just $45.00 each for non members. The room was full. I tell you about this event so you can see one special event option. 

As a fundraiser I thought they could have “pushed the envelop” a little bit. Maybe had a couple of really big items that they previewed in the invitation. Tell me how the money will be used not how they are starting the year $15,000 in the red. How did you use the money last year. Did my donation make a difference?

The Mission Statement

The Mission statement describes the purpose of the non-profit. The reason it exists.
In a few succinct sentences, your mission statement clarifies your nonprofit’s vision. The mission should be a group decision that is carefully created over time. Once the mission statement is established it should be looked at yearly to be sure it is still relevant. Changes may not occur for several years.
To create the mission statement key stakeholders should gather to brainstorm and answer three simple questions.
What need are we trying to address? How will we address these needs? What principles guide our work?
Gather relevant statements. Categorize like words and phrases.
Walk away. Maybe, return several days or hours later.
Create a statement or two. Then polish it. Consolidate it. Make sure it is succinct.
The mission statement should be timeless, easy to read, and tell a lot in very few words.

Sample Mission Statements
The American Red Cross, a humanitarian organization led by volunteers and guided by its Congressional Charter and the Fundamental Principles of the International Red Cross Movement, will provide relief to victims of disaster and help people prevent, prepare for, and respond to emergencies.
United Way to improve lives by mobilizing the caring power of communities around the world to advance the common good.
Habitat for Humanity works in partnership with God and people everywhere, from all walks of life, to develop communities with people in need by building and renovating houses so that there are decent houses in decent communities in which every person can experience God’s love and can live and grow into all that God intends.
The American Heart Association
Building healthier lives, free of cardiovascular diseases and stroke.

Editor’s note: I found all of these mission statements from the organizations website. Some were hard to find even after I used the search engine. One well known organization did not make my list because I could not find its mission.

Writing a Problem Statement

Clearly define the problem. A problem is the difference between the desired outcome and what is happening now as measured by statistical data.

To write a problem statement tell the reader what is occurring, what should occur and what will happen if the problem is not addressed.

Example: Fifty percent of all children less than 16 years of age are obese. This number should be at 20%. According to XYZ agency this number is expected to climb over the next five years. (All these stats are made up but you should get the idea.)

Statistics can be found on several reputable websites such as www.cdc.gov or the health department website for your state.

Nurturing Your Board

There are many types of boards. Some are governing others advisory. They are all responsible for fundraising. So how do Executive Directors and Development Professionals get the Board Members to do their job? Well, we provide the tools and encouragement to help the volunteers to feel comfortable. If asking for a gift is too much for a board member, maybe making thank you calls is more their pace. It may take a board member a year or longer before they are ready to invite a friend for a tour of your NPO.

To fire up board members it is a good idea to start with a tour of our facilities or presentation of your program.
Take notice: Are they effected by what they see or are they uncomfortable?
Do they offer advice or volunteer to help? Do they clearly understand our mission?
Tell them about stories of the individuals that are being served.
Let board members tell their stories. Is there a connection? Passion?

Show the plan:
Where are we? Where are we headed? What are our immediate needs? How about in the future?

List the areas that you need help. All board members should have choices of fundraising tasks.
Personally contribute (mandatory)
Participate in special events
Regular attendance at board meetings (mandatory)
Serving on a board committee
Voice in the community
Asking for advice
Host a gathering or tour
Thank you calls (for attendance at an event or for a donation)
Cultivate a prospective donor
Make the ask

Board of Directors and Bylaws

An effective Nonprofit Organization has a competent Board of Directors. This competency is derived from several factors. But the key is to have a set of bylaws that are followed and used to strengthen the NPO.

Within the Bylaws the required number of board members should be listed. It is best to have a minimum and maximum number. This helps when there is an unexpected resignation or two. The Membership Chair will have the opportunity to carefully select a new member rather than rushing to fill a position with someone that may not be the best person for the NPO.

The terms of office need to be listed. Also state if or how many times a term may be repeated. I have been on boards that were required to change their bylaws in order to renew their officer terms. To avoid this, a provision can be made to renew a membership as an exception if there is a majority vote in favor of the renewal. This allows a particularly effective board member to stay on while others serve their terms and step down. It also helps in cases where there are no new volunteers to step in.

An election process and by law change protocol should also be listed in the bylaws. This typically includes written notification one meeting before the election.

Removing a board member. This is not as difficult as it seems. But the process should be clearly stated in the bylaws. For instance; How many meetings should a board member be allowed to miss before they are asked to resign? What if they do something publically that does not look favorably on the NPO? What if they become seriously ill?

Let’s assume that your board members were properly introduced to your NPO and given a clear list of expectations. Then a simple phone call or letter will take care of the situation. Many times board members are relieved to be given an out. Or they may not realize how many meetings they have missed or how important their presence is valued.

Cover Letter

This is the funder's first look at your proposal.
Use quality paper with letterhead and matching envelope.
Times New Roman or Ariel Type 12 point
Check your spelling and grammar. Use another set of eyes, not just your computer.
Use action words that are positive.
Do not get too technical. The letter should be easy reading. (Think 6th to 8th grade)

The cover letter is a brief reflection of your proposal. Include a greeting, the need you are addressing,how you plan to address this need and an invitation to help. Thank the funder for considering your request and give them your contact information in case there is a need for clarification. Close and don't forget to sign!

Rember to keep the information simple The details will be described in your proposal.

Charities Must Focus on Multiple Ways to Reach Young Donors, Generation Study Finds

http://philanthropy.com/article/Charities-Must-Find-Multiple/64675/

What is a Special Needs Trust?

A Special Needs Trust is designed to provide financial resources to assist a disabled individual who receive government funding.  This prevents the department of Public Welfare from taking the money for reimbursement of funds (MA benefits) for the provision of MH/MR.
There are three types of special needs trusts:
Third Party Funded Special Need Trusts  funded from someone else's money.  The creator must state that the money is to be used to supplement public funding and not replace the public funding.  The Trust is irrevocable. The trustee has discretion on the use of the funds.
Self Funded Special Need Trusts  Must be created by the parent, grandparent, guardian or court.  Discretion of the trustee. Irrevocable. For a disabled beneficiary. Balance is used to payback the state for Medical Assistance. Can't be created after an individual is 65
Pooled Trusts a non-profit fiduciary must be the trustee.  Can be created by anyone. Residue remains in trust upon death of disabled beneficiary PA now requires a 50% payback.

Purchases from a Special Needs Trust are to be used to enhance the individuals quality of life.  It must be for their benefit.  One home, vehicle and a trip with a care giver are examples.
This information is based on Pennsylvania Rules.  The guidelines in your state may differ.  An attorney should be used by any person wishing to create a trust.

Obama Names Charities to Share His $1.4-million Nobel Award

http://philanthropy.com/blogPost/Obama-Names-Charities-to-Share/21763/

Q & A

Question
You are putting on a Gala with music dinner and drinks included. The ticket price is $175. Our venue and some of the other event expenses such as invitations and music have been donated. How do you figure out the deductable amount of the ticket price? Is most of the ticket price deductable because most of the event expenses have been under written?


Answer
Often charities use the deductable portion of a ticket price as a promotion for their event. “100% of the ticket price is deductable” This statement is false and in reality is not for a charity to determine. Instead the NPO should determine the fair market value of the evening. This has nothing to do with what it cost to stage the event. NPO’s are often reluctant to disclose the value of food, liquor, entertainment but the benefits that the ticket purchaser receives by participating in the event are the “fair market value.” The balance of the ticket price is the deductable amount

I was involved in a Charity ball that cost every penny of the ticket price to put on the dinner. This caused a lot of discussion. The individuals were purchasing a $250 and were also receiving $225 in amenities at the event. This is not to say the NPO did not raise money. We did in fact raise $100,000. this was realized through sponsorships and donated services.

Types of Planned Gifts

Traditional Types of Planned Giving
Bequest: Cash or property donated at donor's death. the donor typically makes this bequest through his/her will. Property may include Cash Stocks, bonds, mutual funds &other property which is subject to board approval.

Charitable Gift Annuity: Cash or property donated during the donor's life in exchange for a fixed income for life. Typically $10,000 or more with no additional contributions permitted.

Pooled Income Fund: A common trust donated by separate donors for investment purposes. Each donor receives a portion of the income each year. The charity keeps the remaining assets as each donor's share at the time of death.

Charitable Remainder Trust: Donors create a trust and receive an annual payment. After the last beneficiary passes, the charity receives the remainder of the assets.

Charitable Lead Trust: Donor creates a trust that provides an income for the charity for a period of time. At the end of the period of time, the trust reverts back to the donor or other beneficiary.

Power Point Tips

As a development professional you may have to "make the ask" or "tell your story" through a presentation. Click this link to see some tips from Steve Jobs, co-founder of Apple. http://www.slideshare.net/prwalker/the-presentation-secrets-of-steve-jobs-2814996

How Do I Know How Much To Ask For?

Here is a simple tip. Look at the funder’s 990 form. (Availble though Guidestar, foundation Center, etc.) They list their charitable contributions. This will also tell you what types of agencies that they are funding. Don’t forget to consider your relationship with the organization. Align your ask with the strength of our relationship and the dollars given to like organizations.

Writing Your Grant

Always follow the funder’s guidelines as they have directed.
If you have questions, contact the grant administrator. It is their job to help you.

Here are some questions that you might have to answer:
Describe goals and objectives. This means:
Who (including partners) will be responsible for activities?
What communication activities will take place?
When (timeline) the activities will get done,
Where the activities will get done
How often the activities get done.
How will you sustain the program?

Decide on roles and responsibilities of the staff and partners. Don’t “wing it” and find out you get the funding but do not have an implementation plan.

Create an evaluation plan
Describe the goals and objectives
List the anticipated outcomes and process for measuring results
Design a plan that describes the sources of information and the methods that will be used to gather data.
Share it with appropriate staff

Tips
 Write your grant request in a compelling, convincing, and concise manner.
 No fancy lettering. Use Times New Roman or Arial type
 Number pages, include name of organization on each page
 Do not staple, bind, or fold
 All sheets should be 81/2 X 11

Once you are funded
 Say thank you
 Stick to your narrative/contract
 If you can not meet the timeline call the funder. DO NOT WAIT FOR THEM TO CALL YOU!
 Use this time to strengthen your relationship

The funny part about grants is that you have to have all the details figured out before you submit a grant. This does not guarantee funding but it does increase your chances of receiving funding.

Special Events

Here are 50 special event ideas.
Special events are the most costly and produce the least amount of revenue. They do attract new donors and awareness of your non-profit.
Antique Show
American Girl Doll Tea
Art Show
Auction
Bake Sale
Barbecue
Basket Raffle
Basketball, Golf or any Sport Tournament
Bike or Walking Tour
Bingo
Campaign Kickoff
Candy Sale
Car wash
Car show
Casino Night
Celebrity Bar Tending
Celebrity Chef Dinner
Chili Cook Off
Concert
Cookbook Sale
Cooking/Tasting event
Craft Show
Dance Marathon
Dedication
Derby Day
Dine around town
Discount Cards
Donkey Basketball
Fashion Show
Fishing Contest
Flower Sale
Gala Dinner
Garage Sale
Home Tours
Haunted House
Ice Cream Social
Jail-a-thon
Lecture Series
Logo/T-shirt Design Contest
Mother Daughter Banquet
Murder Mystery Dinner
Non-event
Pancake Breakfast
Pet Costume Parade
Phone-a-thon
Raffle
Reception
Rubber Ducky Regatta
Run/Walk
Sport Clinics
Sweat shirt sale
Telethon
Themed parties
VIP Dinner
Wine Tasting

Finding a Grant Funder

So you want to write a grant. There are a few basic steps that are relevant for any grant. The number one most important step you should take before writing a grant is identifying a potential funder. Determine if a funder’s mission and guidelines are in line with your organizations mission and needs. DO NOT FORCE A FIT. There are plenty of grant dollars out there if you’re asking the right foundation or government agency.

These three websites will take you to search engines that will help you find funders.
www.grants.gov
www.guidestar.org
www.foundations.org
However, there are several grant alerts out there that are easy to find with Google. Another way to find out about foundations is to look them up directly without using a search engine. Just Google the foundation name. I have learned about some foundations by networking with other fundraisers or clicking around on the internet. Look at like agencies to see who is funding them.

You will find your best prospects by focusing your efforts with people and organizations that are in close geographic proximity or interest with your organization. Start with the funders that match your mission and are geographically close to you. Connect with them and build a relationship. To determine if your organization is a fit, you should be able to answer these 6 questions about your organization.
What is your mission?
What are your NPO’s goals?
Who are you trying to assist? (Children, hungry, etc.)
When are you going to start/finish your program?
Why is your organization the one to address the problem?
How will your organization address the problem?
Answering these questions will help you to align your NPO with the most likely funder to help with your cause.

Once you have an organization in mind, I find it best to go to their website directly. That is where you get the most accurate and up to date guidelines. Now compare your mission with theirs. Do they fund in your geographic area? Do they fund the area of interest you are looking for funding in? (Capital, scholarships, operations, etc.) Do you know any of their board members? Do any of your board members have relationships with the organization? If you are not connected in any way with the potential funder get connected.

With Pennsylvania'a delay in passing the FY10 budget many of the local non-profits were feeling like sitting ducks waiting to see what would happen with this year's budget. As the President of the local AFP Chapter and with the help of Representative Mario Scavello(R), and our chapter officers we organized a Legislative Forum. I have always felt that knowledge was power and so we went looking for some answers. Below are the 5 tips that highlight what we found out:

1. Invite your local legislators to visit your non-profit. Remember that the legislators "talk up". They will let state and federal congressmen know what your needs are.

2. Use the local newspapers to spread the word. The politicians at your capital do read the papers. So when you speak about your non-profit be sure to speak about your needs.

3. Regarding stimulus money - the dollars are going to larger project ready causes and can be accessed through local economic development groups.

4. NPO are strongly encouraged to collaborate. There is and will continue to be less money to go around so collaborating is more important than ever.

5.Grants need to be accurately and consicely written. This is nothing new but now that there is less money, sloppy work will be dropped to the bottom and may not get a second look.