Best practice to have a nonprofit audit committee to provide accountability for organization’s independent audit
finance committee is responsible for monitoring the organization’s financial status
audit committee is given authority for overseeing the organization’s external audit process.
To ensure that the audit process is objective, an audit committee should be an “independent” body, meaning that no one on this committee is also employed by the nonprofit
Directly responsible for the selection, retention and oversight of the independent auditor
Having an audit committee lends to the transparency of the organization to the outside world via reporting on the IRS Form 990; all 990 tax returns for charitable orgs are publicly posted online.
As a partner of the Alliance for Strong Families and Communities, Accreditation Guru is excited to share with you their new and game-changing “Operations Support Services” offering for the nonprofit sector. This offering is intended to help leaders address provision of operations support services related to human resources, finance, administrative operations, and more. This is available to ALL nonprofits in the United States, not just Alliance member organizations.
Across the country, daily tasks, ranging from detailed budget reports to regular donor stewardship, siphon limited energy and resources that could be better directed toward program implementation. Because dollars available for overhead functions are particularly scarce, nonprofits should look for smart ways to maximize these resources. For organizations that cannot cost-effectively sustain internal capacity and expertise in administrative functions, the gap will continually widen and plague their abilities to focus and execute on their missions.
The Alliance is dedicated to helping community-based organizations (CBOs) bolster their approach to risk management, improve the effectiveness of fund usage, and understand the benefit of shared services—all of which allow for an increased focus on mission and people served. The “Operations Support Services” offering was created to help fulfill the five identified “North Star” initiatives in the landmark report, “A National Imperative: Joining Forces to Strengthen Human Services in America,” by the Alliance for Strong Families and Communities and the American Public Human Services Association.
By partnering with the Alliance, CBOs can outsource various financial and administrative duties for which internal capacity and resources may be limited. As part of this new venture, the Alliance also is offering competitive and robust benefits packages, enhanced retirement planning services, and comprehensive EAP and work-life services to their employees at a reasonable cost, regardless of their size. In addition, the Alliance’s unemployment tax program combats hidden expenses, avoids claims volatility, and enables better management of cash flow and claim tracking.
The Alliance has established many strategic partnerships to facilitate provision of operations support services that can be customized for any size nonprofit:
Flexible accounting and bookkeeping assistance delivered directly by Alliance staff
Comprehensive, competitively priced group health insurance packages offered via industry
leaders that cover thousands of companies and hundreds of thousands of lives
Employee assistance and work-life services from FEI Behavioral Health, the Alliance’s
social enterprise
The ability to provide a wide range of retirement plans and planning services to employees,
with the added value of no administrative fees
A cost-effective alternative to the state unemployment tax system
Access to group purchasing savings programs
“Along with our expertise in human resources, finance, and administrative operations, it is our intent to enhance and expand our support services to help leaders address needs related to fundraising and development; marketing, public relations, and communications; and information technology,” explains Lenore Schell, Alliance senior vice president of strategic business innovation.
For more information, visit the Alliance’s website.
Hired & non-owned auto insurance is a highly misunderstood coverage and as a result, often gets put at the bottom of the insurance coverage priority list. Hired and non-owned auto insurance provides coverage for bodily injury and property damage losses caused by vehicles you don’t own, vehicles you lease, hire, rent, and/or borrow, but are used for business operations.
For this discussion, we are going to focus on coverage for vehicles not owned by your organization but used for your operations. Typically, these vehicles are personally owned by employees and volunteers—in other words, non-owned auto.
Organizations that don’t own company vehicles, may automatically think they don’t need auto insurance. Nothing could be further from the truth! If you have employees or volunteers that drive their own vehicles on behalf of your organization, for any reason, then you can become responsible for auto claims. Situations, where your organization may be responsible for damages, can include (but is not limited to):
• Using their own vehicle to go to meetings
• Using their own vehicle to go to the bank, the post office, or other errands
• Using their own vehicle to provide the services offered by your organization
If there’s an accident in any of these circumstances, then your organization can be held responsible and sued for damages. Auto liability claims can have a significant impact on your bottom line. Hired and non-owned auto liability coverage can help absorb potential financial losses and protect your business.
What is Hired & Non-Owned Auto Insurance?
Hired & Non-Owned Auto Liability Coverage is for vehicles owned by employees or volunteers and covers injuries to other people and damage to other people’s property. This is coverage in addition to the coverage an employee or volunteer may already have on their vehicle. It does not cover damage to the vehicles owned by your employees or volunteers, only liability.
In the event your organization is in any way responsible for an accident, a driver’s own auto insurance will be responsible for any claims. However, if the claims are more than the liability coverage limits that the individual has on their personal auto policy, then your non-owned auto insurance could kick in to pay the remainder of the claim. In other words, the employee or volunteer auto insurance triggers first.
Example
The Executive Director of an organization was driving to the bank in their own vehicle to drop off some paperwork for a business loan. She was in a hurry and sped through a yellow light. A car turned in front of her and she hit the driver’s side of the oncoming vehicle. This collision resulted in considerable damage to both vehicles and severe injuries to the other driver.
The injured driver sued the Executive Director and the organization for the damage to his vehicle and his injuries. Because the Executive Director was driving for business, the organization would be responsible for the damages caused by the accident. The total claim was $450,000 including the associated legal fees.
The payments were as follows:
• The Executive Director’s personal auto policy paid up to her limit of $300,000
• The organizations non-owned auto policy paid the remaining $150,000
• The annual premium cost of the non-owned auto Insurance was $350
Auto claims are by far the most frequent type of claim we see, and auto claims involving injury can be quite large. All organizations have some type of driving associated with their mission and general operations. If an organization is deemed in any way responsible for an auto accident, even a small claim can quickly eat up the organization’s reserves and as we’ve seen, a small expenditure for the coverage more than compensates for the potential risks.
Make sure that you include non-owned auto insurance as part of your organization’s risk management arsenal.
New or small businesses may think of Corporate Social Responsibility (CSR) programs as something belonging in the domain of larger companies, but that is not necessarily true. There are many ways that small or mid-sized companies can develop social partnerships that also make good business sense.
Recently, the Business Council of Westchester held its first Thompkins Mahopac Bank Power Breakfast, a panel titled “Corporate Social Responsibility – Social Partnerships that Make Good Business Sense: Part II,” moderated by Jennifer Flowers Founder & CEO, Accreditation Guru, Inc. (AG). The CSR topic was brought back by popular demand, as in 2017 Jennifer moderated part 1, “Corporate Social Responsibility Done Right,” which broke attendance records for a Power Breakfast. Both programs featured a distinguished panel of local business leaders and drew well over 100 attendees. Key themes discussed included factors in determining a social responsibility program that makes sense for one’s business (with a focus on small and mid-sized); a lively discussion about promotion of efforts; and the effects that socially responsibility programs have on company culture, identity, and employee retention.
One issue that was discussed during the above-mentioned CSR panels was how smart partnering between for-profits and nonprofits is one way to create value for both the business and society simultaneously. Management time and resources are limited, so the greatest opportunities will come from areas where the business significantly interacts with—and thus can have the greatest impact on—society. Finding the right nonprofits to collaborate with will be those that benefit from your core business activities and capabilities—and that the company can benefit from in turn. Many mid- to smaller- sized businesses choose to collaborate with agencies in their hometown or county, thus focusing on impacting the community closest to them.
Some companies approach CSR as a way to demonstrate commitment to various causes, which can improve the public image of an organization of any size. The increased media coverage that can come from corporate involvement in the community may enhance relationships with existing clients and go a long way to attracting new ones. Of course, there are also the intangibles—the positive changes in corporate culture that come from a workforce that feels good about what they do in and out of the office. With the visibility of actual involvement, companies large and small have the ability to improve their name recognition, their brand recognition, as well as improving the public perception of the company as a whole.
Businesses often find that by having a CSR program, it will, in turn, lead to higher employee engagement. As Forbes reported in September of 2017, when Millennials are considering applying for a job, their top priority is what the company sells and/or produces. But beyond compensation and benefits, what matters most to them is the company’s work culture, involvement with causes, office environment and attention to diversity. Millennials are increasingly engaging with causes and tend to believe that a company that is committed to socially responsible causes will care about treating them well too, thus increasing their loyalty to the company.
Here at Accreditation Guru, corporate social responsibility lies at the heart of who we are as a professional, service-oriented organization. AG is committed to volunteering its professional services (including nonprofit governance expertise and guidance), offering financial support, and volunteering for fundraising and other sustaining events, to a variety of local nonprofit associations as a way of giving back to the community and, most especially, lending a hand to those in need. AG also encourages all team members to give back and volunteer within their own communities.
In keeping with our core focus of working with human service agencies across North America, in 2017 AG proudly joined Westchester Companies for Kids (WC4K) in supporting Westchester Children’s Association, whose vision helps every Westchester child be healthy, safe and prepared for life’s challenges.
Accreditation Guru also supports the Northeast STEM Starter Academy at Mount Vernon (NSSA). NSSA’s mission is to expose at-risk students to state-of-the-art science and technology resources and provide them with inspiration and pathways for eventual careers in the STEM sectors.
Never think that your organization is too new or too small to give back in a meaningful way. There are numerous opportunities and benefits to doing good for society while also being good for business. You just need to find the right fit and then get started!
Did you miss any of our Accreditation Guru blog posts during the past year? We published nearly 25 informative articles on topics ranging from accreditation preparation to nonprofit management to issues affecting the behavioral healthcare field. Below we have highlighted some of our most popular posts from 2017 that may be worth a second look for your organization as you beginning planning for the New Year. Thank you for being loyal followers in 2017. We look forward to providing you with more informative posts in 2018! Here’s to the happiest of New Years!
And don’t forget our popular series “Accreditation in Action,” which highlights organizations across the country and how they benefit from being nationally accredited.
Most nonprofit organizations have (or should have!) a long-term strategic plan, one that they have spent a great deal of time and resources to develop. By engaging various staff, board members and stakeholders, the strategic planning process can be an effective way to identify strategies that will support the organization as it strives to fulfill its mission. As stellar as the strategic plan may be, however, unless its strategies are methodically put into action, the plan itself becomes inconsequential to the agency’s operations.
Generally speaking, a strategic plan covers a three-to-five-year period (most common is three years) – which in today’s real-time, fast-paced operating environment can seem daunting to even the most seasoned nonprofit leaders. This is where an annual plan can become a strategic plan’s greatest tool for success. First, it is essential to understand the difference between the two. A strategic plan clearly defines the organization’s mission, lays out a vision of what it wants to achieve over the next few years, and defines several strategic priorities designed to guide the agency toward mission fulfillment. This is the framework for what is to come. An annual plan – or work plan – is staff-driven, designed with specific objectives, outcome measures, and areas of responsibility (including timelines) in order to provide the day-to-day guidelines needed to ensure the strategic goals are ultimately met.
We’ve gathered these key considerations to help create a valuable and effective annual plan:
Be sure annual planning remains an inclusive process for everyone involved, including internal and external parties; when people feel personally connected they are more likely to take ownership and responsibility for the tasks at hand
List only the strategies to be implemented during the coming year; this keeps focus on the short-term as well as laying out a manageable, rather than overwhelming, plan for the next year
Break down annual strategies into smaller goals that are assigned to specific areas or individuals, including due dates and follow-up procedures
Expect that future events will often cause the need to reevaluate and perhaps even change the course of part of the plan; being ‘at the ready’ and adaptable to unforeseen events will only help to move both plans forward!
Annual plans may also incorporate other regular planning processes, including review of the technology and information management plan, financial planning, human resources planning, etc.
The annual plan is precisely the place to be specific; use a variety of tools here that will highlight the details of the plan’s successes and shortcomings, such as metrics, measurements, or any other analytical tools that are relevant to evaluating the plan’s overall goals
The giving season is right around the corner and now is the time to be sure that your nonprofit is ready spread your mission and acquire those much needed donations this holiday season!
Celebrating its fourth year on December 1, #GivingTuesday will bring people and organizations from around the world together for one common purpose – to celebrate generosity and to give. Founded in 2012 by New York’s 92nd Street Y, in collaboration with the United Nations Foundation, #GivingTuesday now engages more than 30,000 organizations globally through the power of social media and collaboration. According to GivingTuesday.org, since the first #GivingTuesday, online donations on the Tuesday after Thanksgiving have seen an increase of more than 470%! Nonprofits cannot afford not to get in on this extraordinary opportunity.
One way to do this is to take advantage of Facebook’s recently launched “Donate Now” call-to-action button available (free of charge) for nonprofits to add to their Facebook pages and link ads that will connect donors directly with an organization’s donation page, making it faster and easier to donate than ever before. Many nonprofits already realize and take advantage of the value of a strong social following; by adding the “Donate Now” option, nonprofits are able to more readily turn online engagement into meaningful monetary support.
Here are our tips for making the most of these two giving opportunities:
Planning and preparation are key – assemble your fundraising team and begin planning now to inspire generosity
Add a #GivingTuesday message to your nonprofit’s website, Facebook page and other social media outlets to build momentum and reach all of your followers
Use the #GivingTuesday hashtag in your nonprofit’s Tweets – this will make your organization discoverable to anyone searching #GivingTuesday
Don’t consider #GivingTuesday as a one-day event – begin December 2 by connecting with your newly acquired and existing donors sharing the results of their generosity and how it will impact those you serve – in other words, create goodwill
Always engage and thank your valued donors – not just on #GivingTuesday – but the whole year through; long-term relationships can last a lifetime
While monetary donations are crucial for nonprofits, we can’t underscore the importance of volunteer efforts – encourage donors to get creative and give time for volunteering; those who can’t afford a monetary donation may be inspired to contribute in this way, making it a win-win for everyone involved
Reference your “Donate Now” button in your Facebook and other social media communications and dedicate specific content that make users aware of the button and perhaps how donations will be used
Pay attention to who is taking advantage of the “Donate Now” option; as with any campaign, information is key and analyzing and understanding who these givers are will go a long way in helping your nonprofit build sustaining donors
During this season of giving nonprofit organizations have a unique opportunity – and responsibility – to applaud the generosity we have been given throughout the past year and to celebrate the humanity that seems especially prominent during this holiday season.
We know that our donors and volunteers are an invaluable part of our work – but are they truly aware of the impact they make and of our gratitude for their generosity? This season, move beyond the standard form letters and cards that so often go unnoticed and thank them…for being them! The kind of folks who recognize a need and give to important causes.
Be innovative! Be passionate! Your goal is to make your supporters feel something wonderful!
Before you begin:
Get excited! Turn on that holiday music and order up an espresso – your passion and enthusiasm will come through no matter the method of communication you choose.
Remember – give your donors and volunteers credit – not you! Your supporters are the heroes; your goal is to tell them everything that they have made possible. Make them shine!
Here are a few of our favorite ideas to get you started:
Include your supporters in a custom-made video.
There are plenty of cost-effective video tools at your disposal: vSnap, GoPro or even your smartphone will do a great job. The idea is to include your donors and volunteers (and the clients you serve, if allowable) in this creative process – and will assuredly be something they remember (and share with other potential supporters!) for a long time to come.
Take a look at the following example from One Justice. Their message was delivered via handwritten posters held and read by actual supporters of the organization who were each asked to record the few moments of video and send it back to One Justice. Then, iMovie was used to put it all together and the completed project was shared with every supporter as a personal ‘thank you’! Oh, and the participants were not told the premise of the project, so they were also surprised to receive this personalized thank you ‘gift’!
View One Justice ‘You Did It! Thank You!’ video here.
Have agency employees donate their time doing something special during the season in honor of a specific donor, volunteer, or group.
Do you have a supporter who has a loved one in a nursing home or a children’s hospital? Gather a group of employees and visit those individuals, performing some holiday carols and delivering some holiday cheer just for them!
Does someone have a loved one serving in the military? If your agency serves children, have the children create handmade cards that can be sent to that service man or woman as well as others who are serving and unable to be with their families for the holidays.
Ask employees to bake a dozen or two homemade treats and deliver them (along with a thank you note) to the local police, fire, or first responder’s station in the area in the name of your donor or volunteer.
What are some of your favorite ways to thank your donors and volunteers? Please share your ideas!
#GivingTuesday is a day when people and organizations from all over the globe come together to give back. On the first Tuesday following Thanksgiving, people around the world will unite for one common purpose: to celebrate generosity and to give. For nonprofit agencies that want to spread the word about their mission and secure sustainable donors, this is an opportunity not to be missed.
Founded in 2012 by New York’s 92nd Street Y in partnership with the United Nations Foundation, #GivingTuesday has become a global movement that has engaged over 10,000 organizations worldwide. Free to all nonprofit agencies, #GivingTuesday will provide you with all of the resources you need to take advantage of this extraordinary day.
Here are some examples of how your nonprofit can benefit from participating in #GivingTuesday:
Launch a new fundraiser or giving platform with national/international press to expand and generate greater funds
Celebrate efforts and announce totals on #GivingTuesday
Send online and direct marketing communications to donor community to inspire early giving
Activate your social media constituency – or start one! – for a social media campaign
Get a matching grant or offer something new (a new video or photos) for donors
Create a volunteer day for giving back in your community
The possibilities truly are endless. For additional information, visit www.GivingTuesday.org.
How do you plan to participate in #GivingTuesday? Please share your ideas here.
Nonprofit organizations put forth much effort, and often invest significant resources, into soliciting and maintaining a steady stream of contributions from committed donors. However, once the donations are received, what many nonprofits often overlook is the necessary practice of appropriately showing appreciation for and valuing the donors themselves. By overlooking this key component, nonprofits are depriving themselves of an important perspective. As public agencies dependent upon external donations, the better we understand and meet the needs of our public stakeholders, the more likely our chances of establishing the long-term donor relationships that are paramount to the successes of our organizations.
When a donor decides to contribute to your organization and its mission, it is often because he or she feels that the services you provide are helping to fill an essential gap in the community or perhaps there is a more personal connection to the services you provide. Whatever the reason, the donor specifically chose to support your agency. Therefore, donors want to feel a personal connection with the clients that were and continue to be aided by your organization.
First, it is important to take a close look at how your agency currently thanks its donors for their contributions and how it goes about fostering donor relationships to keep them dedicated to your organization’s mission for the long-term. Staggering statistics from the 2012 Fundraising Effectiveness Survey have reported that for every $100 of new funds raised, $100 was lost due to downgraded or lapsed gifts. Further, for every new 100 donors secured, nonprofits lost 107 donors through attrition. Appropriate and thoughtful action is required on behalf of the nonprofit agency to stay way ahead of this astounding trend.
Once your organization has a solid understanding of its current (and potential) donor base, it is time to focus on the needs of the donors to begin building those vital long-term relationships. Often donors want to feel a personal connection with clients that have benefited from the nonprofits that they have supported. Consider providing a detailed update (as well as appeals) rather than simply relying on short form letters or tweets. Building that personal connectivity to your mission fosters long-term dedication.
Share progress with your donors, no matter how small. What matters to them is that they feel like they are making a difference. Show them the little things, too, that are just as important to advancing your cause and improving the lives of others. Perhaps a personal testimonial or an impressive statistic will make a lasting impression. Send a special invitation – without soliciting for another donation. Perhaps to your next free event, a behind-the-scenes tour, or simply a volunteer activity that will connect them personally with those that directly benefit from their continued contributions. The possibilities are endless and, rest assured, the little creative effort it takes on behalf of your organization to reach out to your donors will come back to both you and your clients for many years to come.
