Helping Nonprofits Help Arkansas
May 2013
Best Practices for Your Nonprofit
Arkansas Coalition for Excellence: Helping Nonprofits Help Arkansas We are proud to work with you to achieve ACE’s mission and vision together: Mission: Strengthen Arkansas Nonprofits Vision: A strong, vibrant, united and effective nonprofit sector that is well positioned to meet the diverse needs of all Arkansans. Our Core Values: Best Practices |Inclusive | Unity in Diversity | Connecting & Equipping | Statewide Vision | Regional Approach
Call for Board Nominations ACE is looking for energetic, passionate, engaged board members statewide to help our organization continue to grow and serve Arkansas nonprofits. If you know of someone who you believe is a strong candidate please e-mail your nomination to smeincke@acenonprofit.org.
IN THIS EDITION 3
Greetings from ACE
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Upcoming Trainings and Events
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Member Corner
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Advocacy Updates
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The Arkansas Diamond Standards ™
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Resources & Other Links Contact Us
Arkansas Coalition for Excellence | 200 River Market Avenue, Suite 100 | Little Rock, AR 72201 | 501.375.1223 | www.acenonprofit.org
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GREETINGS FROM ACE ACE Members and Friends, What are Best Practices? According to various dictionary definitions (dictionary.com), best practices are techniques or methods that, through experience & research, have consistently proven to be effective in impacting program goals. Several important words in this definition – experience, research, effective & impact. How will we know a best practice IS a best practice? Our experience with a technique or method will provide a great deal of information about the appropriateness and effectiveness of it. Many times, that is all that is needed. Sometimes it is important to make our case about professional development, & this often requires an evidenced-based approach backed by research. Some projects have a wealth of knowledge about the effectiveness of their programs. The Nurse-Family Partnership (NFP) & Healthy Families America are two such organizations. These programs have undergone rigorous evaluation on many different benchmark areas over 20 years. This research has led to reproduction of the models all over the country. Are they effective and do they make an impact in the community? The research shows the do. And that is where we must aim – for measurable objectives and results that inform our practice over time and that show IMPACT in serving our mission. What are Best Practices good for? Absolutely nothing - unless they are implemented. This is where we most often find the gap – professionals attend critical training, respond enthusiastically, and then go home, never to address nonprofit issues with best practice action. Best practices can inform you about all aspects of a program from internal management to programmatic implementation and evaluation. More than 10 years ago, our founding board members created the Arkansas Diamond Standards™ of best practices for nonprofit management. The Diamond Standards™ focused on four benchmark areas: Mission, Money, Management & Governance. It is these standards that ACE follows in supporting members, conducting training and managing everything in between. We encourage you to use them, too, as a roadmap and conductor of your agency’s administration and programs. Best practices remain best practices only when they are open to changing information, results and discoveries. Without the option of re-examining best practice methods and technologies, we limit their use. This and subsequent years will find ACE re-examining our Diamond Standards™ and modifying them as appropriate. You will see the benefits of this activity in the type of programs we offer – in fact, if you attended our one day intensive on Creating Highly Effective Boards, you already have. Sincerely,
Stephanie F. Meincke, MSW President & CEO Arkansas Coalition for Excellence | 200 River Market Avenue, Suite 100 | Little Rock, AR 72201 | 501.375.1223 | www.acenonprofit.org
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UPCOMING TRAININGS, EVENTS & PROGRAMS ACE TRAINING & EVENTS The Sustainability Question Hosted by: Pennsylvania Association of Nonprofit Organizations (PANO) Presented by: Hildy Gottlieb, Co-Founder & Chief Boundary Pusher, Creating the Future Thursday, June 6 1:30 p.m. to 3:00 p.m. Webinar, Accessible online & by phone Cost: $49 for ACE Members (Become a Member) $69 for Non-Members Register Here
Optimizing Your Governance Committee Presented by: Susan Meier, Meier & Associates, former Vice President of Boardsource Tuesday, June 18 11:45 a.m. to 1:00 p.m. Webinar, Accessible online & by phone Cost: Free for ACE Members (Become a Member) $30 for Non-Members Register Here
OTHER TRAINING OPPORTUNITIES Annual Grantwriting Workshop Grant Professionals Association Wednesday, June 19 9:00 a.m. to 4:00 Little Rock More Information
Recruiting the Next Generation Young Nonprofit Professionals Network Little Rock In Partnership with ACE & UALR Center for Nonprofits Introduction by. Regan Gruber Moffit, Winthrop Rockefeller Foundation This networking event gives executive directors the opportunity to plug into a community of creative & energetic young professionals & find their next generation of board members. Thursday, June 20 5:00 p.m.-7:00p.m. studioMAIN, Little Rock Arkansas Coalition for Excellence | 200 River Market Avenue, Suite 100 | Little Rock, AR 72201 | 501.375.1223 | www.acenonprofit.org
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New and Renewing Members
MEMBERSHIP MEMBER OF THE MONTH Single Parent Scholarship Fund of Pulaski County
Single Parent Scholarship Fund (SPSF) provides scholarships and support services to high-potential, full-time, single-parent college students in Pulaski County. SPSF of Pulaski County had 29 recipients graduate this year. Graduates earned Associate Degrees and Bachelor Degrees from UALR, UAMS, PTC, Baptist Health Schools, Philander Smith, Harding University, and Arkansas Baptist College. Learn more here.
Garland County CASA Program, Hot Springs | The Butterfly Effect, Little Rock – NEW | Hackett Public School Education Foundation, Hackett - NEW | Central Arkansas Development Council, Benton | Garland County Habitat for Humanity, Hot Springs – NEW | Disability Rights Center of Arkansas, Little Rock – NEW | Harbour Resources, Inc., Little Rock – NEW | Saline Memorial Health Foundation, Benton – NEW | Young Nonprofit Professionals Network, Little Rock – NEW | National High School Basketball Association, Little Rock |Higher Level for Dimensional Growth, Fort Smith – NEW | Robin Freeman, Little Rock – NEW | The Gaines House, Little Rock | Arkansas Nonprofit Services, Little Rock | The Winthrop Rockefeller Foundation, Little Rock | Susan G. Komen Breast Cancer FoundationArkansas, Little Rock
BENEFIT OF THE MONTH Arkansas Diamond Standards™ The Arkansas Diamond Standards™ are principles and practices that guide nonprofits to excellence in four areas: Mission, Money, Management and Governance. The Standards include a checklist of key policies needed for your organization’s success, a self-evaluation that will help you access your organization’s strengths and areas for improvement, and a handbook to help guide you through The Standards. Learn more on page 7.
Want to join our coalition of over 300 members dedicated to strengthening the nonprofit sector ? Contact Rebecca at 501.375.1223 or email rzimmermann@acenonprofit.org.
Arkansas Coalition for Excellence | 200 River Market Avenue, Suite 100 | Little Rock, AR 72201 | 501.375.1223 | www.acenonprofit.org
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ADVOCACY UPDATES ACE Goes to Washington The Arkansas Coalition for Excellence will be in Washington D.C. on June 7th for the National Council of Nonprofits Annual Meeting & Lobby. If you have an thoughts you would like ACE to share the Arkansas Congressional Delegation on challenges or triumphs in the nonprofits sector e-mail smeincke@acenonprofit.org.
Political Scandal Focuses on IRS Decision-making The Internal Revenue Service is acknowledging that it applied inappropriate political considerations by flagging for extra scrutiny the applications of conservative groups seeking tax-exempt status as section 501(c)(4) social welfare organizations. At a hearing Friday before the House Ways and Means Committee, the first of several scheduled hearings in the House and Senate, Members of Congress initially expressed bipartisan outrage but then appeared to split along partisan lines. Generally, Republican Representatives sought to determine when the Obama Administration learned of the investigation and whether politically-appointed officials were involved. Democratic Members tended to focus on the vagueness of the law that requires the IRS to apply subjective scrutiny to 501(c)(4) applications, due in part to the Supreme Court’s Citizens United decision which struck down many prohibitions on political activities of such groups. Left unclear after the hearing is whether the scandal and ensuing investigation will delay or undermine efforts in this Congress to enact comprehensive tax reform. Read more...
Combined Federal Campaign Changes Threaten Donations The U.S. Office of Personnel Management (OPM) released proposed regulatory changes to the Combined Federal Campaign (CFC), a giving program that allows federal employees to donate to eligible charitable nonprofits. Many nonprofit groups have expressed concern that several proposed changes would harm the effectiveness of the giving program. For instance, one OPM proposal would shift the burden of the cost of the campaign by imposing an up-front flat application fee for participating charitable nonprofits rather than continuing the past practice of charging 10 percent of donations actually collected. This approach could hurt smaller charities unable to pay the higher “entry” or “participation” fee. The proposed changes would also restrict giving options to electronic ones, and move administration of the program from local to regional or centralized offices, potentially creating a disconnect between local nonprofits and the federal employees making the donations. The proposed changes are open for public comment until June 7, 2013 and, if approved, would take effect in 2014. Arkansas Coalition for Excellence | 200 River Market Avenue, Suite 100 | Little Rock, AR 72201 | 501.375.1223 | www.acenonprofit.org
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ARKANSAS DIAMOND STANDARDS™ WHY THE DIAMOND STANDARDS? The mandate for reform of nonprofit organizations has never been stronger. Highly publicized abuses have led to legislative reforms and stricter scrutiny by regulators at both state and federal levels. The public expects greater accountability, and funders require more evidence of increased capacity and improved results in making decisions on grants. The Arkansas Diamond Standards™ are principles and practices that guide nonprofits to excellence in four areas: Mission, Money, Management and Governance. Read more about each area below and take a moment to self-assess your organization. MISSION All authorities emphasize the critical importance of clearly articulating the organization's alignment of Planning and Strategy, Programs with the course set by Mission and Vision, Purpose in statements of Mission and Vision derived from core Values, and Public Communication and Accountability that upholds a culture of openness and disclosure which helps assure fidelity to the public trust and the organizational Mission. Assess your organization’s strengths and weaknesses. MONEY To achieve the MISSION, adequate financial resources must be developed, managed, protected, and deployed, all in compliance with law. Financial Development activities must exhibit the highest ethical standards, employing honest, accurate information about the organization, honoring donor intent, and respecting donor privacy. Sound Financial Management requires the Board to approve realistic budgets, monitor financial performance, establish proper accounting controls, and engage independent review of its financial statements. Financial Protection uses a Risk Management process that eliminates unnecessary risks, employs loss prevention programs, and provides for appropriate I nsurance coverage. The Board understands its fiduciary duties and monitors the organization's Legal Compliance, by adhering to all applicable laws and regulations. Assess your organization’s strengths and weaknesses. MANAGEMENT This view of management emphasizes applying internal processes to transform human, information and organization capital into both program and financial results. In managing its Human Capital, the organization has systems for recruiting, training and managing employees and leveraging its human resources with volunteers. Information Capital includes information systems and computer technologies that support management and enhance communications. Organizational Capital Includes Collaboration that eliminates duplication and creates efficiency and synergy, as well as Innovation processes, which drive the quest for continuous learning and quality improvement. Assess your organization’s strengths and weaknesses. GOVERNANCE Effective governing boards are needed to set policy and provide oversight of MANAGEMENT and MONEY to assure fidelity to the MISSION. The Board-CEO Relationship requires the Board to hire and supervise the CEO, who in turn is responsible for managing all other staff. The Board Composition and Structure of its committees should be carefully designed to create independence and to facilitate the work of the Board. The Board's Functioning through its meetings and processes should be sufficient to fulfill its roles and responsibilities. The Board's Role of governance should be clearly defined and distinct from the management role of the CEO. Assess your organization’s strengths and weaknesses. Arkansas Coalition for Excellence | 200 River Market Avenue, Suite 100 | Little Rock, AR 72201 | 501.375.1223 | www.acenonprofit.org
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RESOURCES AND OTHER LINKS Below you will find resources that will help you implement best practices for your nonprofit, based on the four focus areas of the Arkansas Diamond Standards ™ , Mission, Money, Management, and Governance.
MISSION Sample Business Plans for Nonprofits– The Bridgespan Group Nonprofit Business Plan Development– Healthcare Georgia Foundation Develop Mission & Vision Statements– Foundation Center Exempt Organization Public Disclosure and Availability Requirements– Internal Revenue Service
MONEY Nonprofit Audit Guide– National Council of Nonprofits Donor Bill of Rights– Association of Fundraising Professionals Linking Mission and Money, Nonprofit Finance Fund Financial Management Self-Assessment Tool, Nonprofit Association of Oregon Nonprofit Budgets Have to Balance: False, Blue Avocado
MANAGEMENT Videos on Leadership– The Soderquist Center Nonprofit Risk Management Center The Nonprofit Times Management Tips The Nonprofit Social Media Policy Workbook, Idealware
Risk Management and Insurance Resources, National Council of Nonprofits
GOVERNANCE Board Self-Assessment– Boardsource Checklist for Basic Governance Policies, IRS Form 990 Conflict of Interest Executive Director Evaluation Form, Blue Avocado
Arkansas Coalition for Excellence | 200 River Market Avenue, Suite 100 | Little Rock, AR 72201 | 501.375.1223 | www.acenonprofit.org
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LEADERSHIP TIP OF THE MONTH 4 Corner Posts to Ignite Best Practices By: Mike Harbour, Harbour Resources In the news in recent days, it has become very clear that non-profit organizations are under close scrutiny by governing authorities. While it is disturbing, it also underscores the need for a non-profit organization to ensure they are engaging in best practices. There is no universal guidebook for best practices across the non-profit world, but there are defining principles that apply universally. Here are Four Corner Posts to ensure your organization has best practices in place. Read more...
IN THE KNOW Assess Your Nonprofit’s Health The University of Arkansas Sam Walton College o of Business is conducting a survey to explore nonprofit organizational health and how it relates to organizational sustainability and fundraising. Take the survey here. Grant Opportunity The Carl B. and Florence E. King foundation is now accepting applications for its fall grant cycle. Areas of interest include: the aging population, arts, culture, and history, children and youth, education, indigent, and nonprofit capacity with a geographic focus in the Arkansas Delta and Southern regions. Deadline to apply is June 17th. Learn more. Become a Certified Volunteer Manager UALR’s Arkansas Public Administration Consortium is now accepting application’s for its fall CVM program. To apply and to learn more click here...
JOBS CENTER Executive Director– Arkansas Prostate Cancer Foundation EAST Core Coordinator– The EAST Initiative Chief Executive Officer- Girl Scouts - Diamonds of Arkansas, Oklahoma and Texas
ACE Members can post jobs to the ACE Job Board for free. Click here to create your employer account.
Arkansas Coalition for Excellence | 200 River Market Avenue, Suite 100 | Little Rock, AR 72201 | 501.375.1223 | www.acenonprofit.org
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Thank you for reading this month’s edition of our newsletter. Questions or Comments? Contact us.
Stephanie F. Meincke, MSW President and CEO smeincke@acenonprofit.org Emily C. Ingram, Vice President eingram@acenonprofit.org Rebecca Zimmermann, Program Coordinator rzimmermann@acenonprofit.org Ivan Martinez, Membership Services, AmeriCorps*VISTA imartinez@acenonprofit.org
Helping Nonprofits Help Arkansas
Located within the Charles A. Frueauff Foundation Offices 200 River Market Avenue, Suite 100 Little Rock, AR 72201 (501) 375-1223 www.acenonprofit.org