I am excited to share that I will be speaking at the upcoming Virtual Summit for Nonprofit ChangeMakers hosted by TopNonprofits on September 15 and 17!

I will be leading a workshop based on one of our Signature Programs — Demystifying Donor Advised Funds (DAFs). The workshop will be a highly interactive discussion of DAFs, which are philanthropy’s fastest growing vehicle, and will include tools and tips for engagement that will elevate your organization’s fundraising effectiveness.

The Virtual Summit for Nonprofit Changemakers offers a tremendous professional development opportunity at a reasonable cost for nonprofit leaders, and includes sessions from 20+ Nonprofit Experts over 2 days, addressing critical issues facing nonprofits today in Fundraising, Development, Marketing and Operations in LIVE, ONLINE Virtual Sessions. Learn How-To, Best Practices, & What’s Coming Next from the top experts in the industry. Build relationships in small, informal chat rooms during breaks and connect with the businesses supporting the nonprofit sector. Plus, you get a virtual gift-bag full of apps, subscriptions, ebooks, and more to help you utilize what you have learned during the summit.

I invite you to join me at the Virtual Summit!

4 Pathways to Sustained Collaboration

Collaboration has always been a hallmark of the nonprofit sector.  Studies repeatedly show that nonprofits collaborate with one another far more than many suspect.  These efforts may take a variety of forms, which is the first important truth to realize about collaboration -- namely, it represents a spectrum of possibilities from associations to partnerships all the way to mergers at the far end of the spectrum.  The term I most like when discussing this topic is “sustained collaboration,” as it encompasses the many possibilities along the spectrum.  

As the Covid-19 pandemic and other realities continue to impact nonprofits across the country, many are now more intentionally investigating sustained collaborations, either for strategic or survival purposes.  While certainly not an exhaustive list, in working with nonprofits I have found 4 common pathways to sustained collaboration.   

• Increased ability to deliver services.

Many nonprofits have developed an innovative approach to addressing complex community challenges that has proven effective.  However, the limitations of their geographic reach, staff capacity, or financial position prevent them from expanding their service delivery.  Sustained collaboration with a partner can be a means to expand reach and impact.

This may benefit you if:  There is demand for your programs outside your current service area that you cannot meet.

• Common strategic vision.

Frequently, two organizations build a relationship over time.  They may start by sharing information about their shared mission focus.  Over time, they may grow their collaboration to include a partnership on program delivery.  At some point, they may sit down and realize there is synergy and alignment in their respective strategic visions for the future.  This relationship based model can often lead to highly successful sustained collaborations (occasionally even mergers) because it is built on a strong foundation of trust and shared focus on a common vision for the future.

This may benefit you if: You have identified a current collaborative partner with whom you share a common strategic vision and desire to work more closely.  

• Increased efficiency.

There is a common refrain many nonprofit leaders have heard repeatedly throughout their career --  “There are simply too many nonprofits in our community and they are duplicating services.”  While we can debate the merits of this statement, the duplication that is of most concern and presents the greatest opportunity for sustained collaboration is administrative duplication.  Let’s face it -- it takes significant administrative resources to sustain a nonprofit, from human resources to finance to payroll.  Many nonprofits have successfully increased the efficiency of their organizations through sustained collaborations to share administrative infrastructure and operations.  When structured thoughtfully, this enables nonprofits to focus a greater amount of their limited resources where they can have the most impact, on programs enhancing communities.

This may benefit you if: You seek to gain economies of scale by sharing administrative functions or your organization is vulnerable to key staff losses in administrative areas.

• Survival.  

It has never been more challenging to lead a nonprofit than it is right now.  Many organizations have teetered perilously close to the brink of closure for an extended period of time due to a multitude of factors.  While Covid-19 didn’t create the financial challenges pervasive in the nonprofit sector, it certainly has laid them bare and exacerbated them.   Recent studies illustrate the urgency of the situation:

• Between March and April 2020, the percentage of nonprofits reporting a drop in monthly revenue rose from 70% to 90%.

• More than 55% of nonprofits reported anticipating cutbacks in services

• More than 44% anticipate more staff layoffs to come

Nonprofit leaders are working to and often past the point of exhaustion attempting to keep their organizations afloat.  This has led many to consider the possibility of merger as a survival strategy to preserve the mission. 

This may be for you if: Organization business model is no longer viable or streams of revenue have been damaged so extensively that ongoing viability is a concern.  

Sustained collaborations are neither easy nor fast, but when entered into thoughtfully can provide benefits that allow for the expansion of services, advancement of a common vision, and preservation of organizational impact.  Frequently, engaging with an external thought partner can be a helpful first step in exploring a holistic process that will encompass not only the legal and financial due diligence necessary, but also considerations of governance, leadership, and organizational culture.  If your organization is contemplating a sustained collaboration, I invite you to connect with me for further discussion of this important topic.     

Recently, the Giving USA 2020 report was released. Giving USA, the longest-running and most comprehensive report on charitable giving of its kind in America, is published by Giving USA Foundation. It is researched and written by the Indiana University Lilly Family School of Philanthropy at IUPUI. The report paints a picture of an uneven charitable giving landscape, with plenty of caution flags and opportunities for nonprofit leaders. A note of caution in reading the report since the country has experienced significant challenges in recent months. Key findings from the report include:

• American individuals, bequests, foundations and corporations gave an estimated $449.64 billion to U.S. charities in 2019, placing it among the highest years ever for charitable giving

• Total charitable giving rose 4.2% measured in current dollars (2.4% adjusted for inflation)

• For only the second time since Giving USA data began to be published in 1955, individual contributions constituted less than 70% of charitable giving.

• There is a clear trend downwards in total donors and greater disparity in gift size as the report shows $6.57 billion in mega-gifts (defined as $300 million and above). This trend has been referred to as “Dollars up and donors down.”

A few of my own thoughts and observations in reading the report:

• The widening gap between "mega-gift" philanthropy and individual giving bears watching because of its potentially negative consequences for small-mid size nonprofits.

• "Dollars up, donors down" is not a formula for success for the vast majority of nonprofits

• Proposals for a universal charitable giving incentive are vital to engaging greater numbers of donors in philanthropy, particularly at the grassroots level and particularly for younger generations. Bonus Takeaway

• Savvy nonprofits will pay close attention to the continued rise of Donor Advised Funds (DAFs) as philanthropy's fastest growing vehicle and invest time and resources in strategies to engage DAF sponsors and holders.

If your leadership team and/or Board would like to connect to discuss your fundraising effectiveness or explore our signature “Demystifying Donor Advised Funds” workshop, let’s connect!

Over the past few weeks, I have advised many nonprofit leaders as they considered and applied for the Paycheck Protection Program (PPP) created by the CARES Act. As a newly created forgivable loan program, we have all learned a great deal during this process. With the announcement from the Small Business Administration (SBA) that appropriated funds for the program have been exhausted, I thought it would be a good time to pause and reflect on lessons learned so far from the PPP process that might help nonprofits if and when the program reopens.

1 Prepare.

The single most important factor in getting nonprofits approved under the PPP in a timely fashion is preparation. While the PPP application itself is straightforward, and can be completed online in a matter of minutes, preparing to file the application requires the gathering of appropriate documentation, and attention to detail. Nonprofit leaders should ensure they have the following supporting documentation when applying (where available):

• Salary and Wage Information:

  • Company w-2s, quarterly form 941 filings, or payroll company reports

  • Employer Tax Contributions: Forms or payroll reports documenting employer state and local tax contributions

  • Employer Benefit Contributions: Group health insurance plan invoices Retirement plan contribution reports

2. Obtain Board Approval.

At its most basic level, the PPP is a loan program from the federal government administered through individual banks. While the program provides opportunities for all or a portion of the loan amount to be forgiven, nonprofits must understand and accept that any portion not forgiven will be treated as a loan that must be repaid. It is recommended that nonprofit leaders secure Board approval to apply for the loan, and some banks may even request proof through a Board resolution.

3. Select your bank wisely.

There is no way to sugarcoat this -- the bank applicants choose to apply through unquestionably matters. Countless nonprofit leaders have experienced the frustration of broken online portals, lack of responsiveness, repeated requests for the same information already provided. Though it may be an overgeneralization, I have found that smaller, local banks have fared far better in submitting applications in a times fashion, securing approval, and disbursing funds than large mega-banks. Also, while many banks require the organization to have an existing banking relationship in order to apply, that is not universally the case. Banks accepting applications from non-account holders include:

• https://www.fundera.com/

• https://www.fountainheadcc.com/ppp

Nonprofits may also consider applying through Paypal, Intuit, Square, and others.

4. Be meticulous in recordkeeping.

As mentioned earlier, the loan obtained under the PPP may be forgiven if specific conditions are met. While we know what the law says about the amounts that can be forgiven, the rules regarding the forgiveness process have yet to be published. Nevertheless, just as preparation was a key to a successful application, I fully expect meticulous recordkeeping to be a key to a successful request for loan forgiveness. Nonprofits should keep all receipts for amounts paid using loan funds, write hard checks where possible, keep all invoices, and be prepared to produce accurate payroll reports substantiating the use of the loan funds.

While we all await Congressional action relative to funding the PPP, it is my hope these tips provide guidance for you and your organization if and when the PPP again begins funding nonprofits. As always, Nielsen Training & Consulting is here to keep you informed, answer your questions, and partner with you.

Have you ever attended a retreat or strategy session and left feeling empowered and inspired? Charting a course for the future of an organization can and should be informative, engaging, and inspirational. Honored to facilitate the strategic planning retreat this past weekend with the amazing Board and staff team of Kentucky to the World, led by visionary founder Shelly Zegart. This organization enhances Kentucky’s image by showcasing the talent, ingenuity, and excellence of people with strong Kentucky ties. Exciting times ahead!

Highly effective nonprofits embrace discussions about ethical leadership with Board and staff members. According to a recent survey from Association of Fundraising Professionals (AFP)​, 25% of fundraisers report confronting ethical dilemmas at least 6 times per year.

"From a list of common ethical challenges, respondents also identified ethical issues on which they need more guidance and resources. Donor control and restrictions on how gifts can be used was identified by almost half (48 percent) of respondents as a critical issue, followed by conflicts of interest (41 percent) and “tainted” money from donors (40 percent)."

If your team would like more information or training on navigating ethical challenges in fundraising, please reach out and let's work together to craft a solution that provides your team with the tools and resources needed to excel.

Did you know that when fundraising expectations are clearly articulated during recruitment, 52% of CEOs report their boards are actively engaged in the organization’s fundraising efforts?

Enjoyed discussing this and more while leading 2 workshops in Miami this week:

• From “Survivor to “Amazing Race:” Board Champions

• Engaged Board, Effective Fundraising.

Last month, we celebrated the 1 year anniversary of the launch of Nielsen Training & Consulting. Over the past year, I have been honored to work with nonprofit organizations from New Jersey to San Francisco, Miami to Denver, and of course here at home in Kentucky.

As we begin year 2, I recognize that developing a highly effective Board doesn’t happen overnight, but is the product of intentionality, engagement, and effort.

That is why I am thrilled to announce the launch of Board Champions.

This is a year-round, fully customizable Board development program, designed to partner with you in building a Board team capable of translating bold vision into reality.

Flexible enough to meet the needs of your nonprofit, Board Champions begins with a customized Board Self Assessment and facilitated Board retreat and subsequently may include the following services:

• CEO or Board coaching

• Defining Board expectations

• Assessing the skills and diversity of your Board team

• Building an effective orientation program

• Aligning committee engagement with strategic objectives

Click the button below to learn more or connect with Greg to set up a consultation. Let’s work together to develop your team into Board Champions!

This article presents a challenge #nonprofit leaders are confronting now, and will likely continue to face in the future. Does this match your perception and experience? How are you addressing?

"The reasons the revolving door keeps spinning are numerous, our survey shows. But two findings stand out:

84 percent of fundraisers said they felt “tremendous pressure to succeed” in their role.
55 percent said they “often feel unappreciated” in their work."

https://www.philanthropy.com/article/51-of-Fundraisers-Plan-to/246857

Check out this month's e-newsletter for tips to elevate Board fundraising success, information about our new nonprofit leadership podcast, and more! CLICK HERE to access!

Last week, the New York Attorney General’s office released its most recent "Pennies for Charity" report, which seeks to educate donors about "where your money goes" when you give to a particular nonprofit.

As a Consultant who works to help nonprofits and Boards transparently measure and communicate their impact and effectiveness, I feel passionately about this issue. There are a number of misconceptions and flawed assumptions that continue to be perpetuated with respect to nonprofit “overhead” and administrative costs. A vibrant nonprofit MUST invest in its infrastructure and talent in order to effectively carry out its mission.

For these reasons, I am thrilled to see a leadership response from Anne Wallestad, CEO of BoardSource.

The time has come for #nonprofit #leaders, #Board members, and supporters to unite behind and amplify this critically important message. I encourage you to read and reflect on the full article from Anne Wallestad: https://www.philanthropy.com/article/Deeply-Flawed-Pennies-for/245257