Participants from a recent series of the EDI Roundtables for Nonprofit Executives share their key takeaways and honest feedback to consider along the EDI journey.
Best practices
New Attitudes, Old Practices: The Provision of Multiyear General Operating Support makes the case that "multiyear general operating support (GOS) provides nonprofits with the flexibility to use funds to fulfill their missions and the ability to plan for the long-term sustainability of their organizations, programs, and services" and should become a standard grantmaking practice.
Jeanne Tedrow, President and CEO, North Carolina Center for Nonprofits
Comprehensive fiscal sponsorship is also known as "Model A" or "direct project" sponsorship and refers to situations where an individual or loose group of individuals approaches the sponsor to become the sponsor's employee or volunteer. (See Fiscal Sponsorship Models Summary to compare other models.)
What is fiscal sponsorship? How do I find a fiscal sponsor? - "Fiscal sponsorship is a formal arrangement in which a 501(c)(3) public charity sponsors a project that may lack exempt status. This alternative to starting your own nonprofit allows you to seek grants and solicit tax-deductible donations under your sponsor's exempt status. [...] Since most grantmakers give to organizations, not individuals, fiscal sponsorship may help you qualify for more funding opportunities.
"An effective recordkeeping system enables an organization to monitor the progress of programs and aid in the preparation of financial statements and returns. If an organization does not keep required records, it may be unable to show it qualifies for exemption. Thus, the organization may lose its tax-exempt status. In addition, an organization may be unable to complete its returns accurately and may be subject to penalties."
Financial Management - Basic principles of nonprofit financial management for nonprofit boards illustrated by the National Council of Nonprofits.
(Recursos similares disponibles en español.)
Why Boards Don't Govern, Part 1 by CompassPoint Nonprofit Services: "In the aftermath of every “nonprofit mismanagement” news story is the question: Why didn’t the board do something? Yet the boards of the nonprofits recently headlined with scandals did not do any less than most nonprofit boards. The reality is that most nonprofit boards are ineffective in their governing function. Only when gross mismanagement occurs does a failure at governance come to the fore."&nbs
In Why Boards Don't Govern, Part 2 (CompassPoint Nonprofit Services, 2006), Jan Masaoka and Mike Allison advocate for board to receive at least part of their information from someone else besides the Executive Director, how to improve board meetings, encourage question asking, and qualities to look for when recruiting. See also Part 1 of the Board Café series on Why Boards Don't Govern.
"Nonprofit employers face a unique set of challenges. They are always trying to do more with less — fewer staff members, less support, less funding. A combination of these pressures can result in poor employment practices, even when one thinks they are doing 'the right thing.' Engaging in best practices with nonprofit employees will result in helping to decrease employee turnover and retain high performers. It will also help identify problem employees who might otherwise fly under the radar or be the low performing 'hot potato' that gets passed between departments."