Issue 26
May 26, 2004

NEWSNOTES is a monthly email newsletter published by Nonprofit Enterprise at Work. It includes items of interest to the nonprofit community in Washtenaw County and the surrounding areas, as well as resources available at NEW. Encourage your friends and colleagues to join nearly 310 other NEWSNOTES subscribers!

NEW would like to recognize the generous support of its Community Partners:

IN THIS ISSUE

LEAD STORY

Database Decisions: Fix, Build or Buy?

by Andy Wolber, Director of Consulting, NPower Michigan
www.npowermichigan.org

Almost every nonprofit organization experiences a need for a new database system at some point or another. The decision to fix your current system, build a new one, or buy existing software can have a huge impact on the efficiency of your organization. By following a relatively straightforward process, most database decisions can be made confidently.

NPower regularly receives calls similar to this one: “A former staff member built a database for us in Microsoft Access. That person is no longer with the organization and no one knows how to make changes. We have very little in the budget for this. Can NPower help?”

NPower Michigan’s mission is to help other nonprofits use technology to serve their communities better. We strive to help nonprofits get the most out of their organization’s data. A few key steps will help your organization through the database decision process.

Step 1. Assessment

Typically, NPower will schedule a two-hour meeting with staff members who are primary users of the system or need the information tracked by the database (e.g., the membership manager who does data entry or a finance manager who generates reports for funders). During this initial meeting we look at the database to assess how it is presently structured and used. We also seek to clarify what you need the system to do.

Databases typically fit into one of three major categories:

• Financial (accounting and related reporting systems)
• Donor / Membership (contributions, and grant-related information tracking and reporting)
• Program Related (for specific activities, events or services offered)

Keep in mind that there are costs associated with transferring information between each of these categories. For example, some donor management systems will export data directly into your accounting package. If this doesn't happen, be aware that staff will be spending time re-entering data, which takes more time and increases the chance for data entry error.

Step 2. Decide: Should we fix our current system?

Depending on the complexity of your needs and existing system, you must decide if fixing the database is a good business decision. If the system is simple, well documented (has a clear instruction manual), or needs only minor adjustments, then fixing it makes sense.

Our consultants examine your existing database and estimate how much time it would take to modify your database to function as you wish. Then, a quick survey of existing software is done to see if the required functionality is available, and, if so, at what price.

Step 3. Decide: Build or buy?

In general, the only time we really recommend building a database entirely from scratch is if you truly have unique customer information or specific work processes that require it. Otherwise, it is usually less expensive to take existing solutions and adapt them, if possible, to your needs.

Keep in mind that customizing even a very basic membership management database takes time. NPower consultants have done some small projects in 30 to 40 hours. But when you do the math, 30 hours at a basic $50 per hour rate, adds up to $1,500. And larger projects can take 4-6 weeks or more. Factor in time for documentation; the consultant must record how complex operations work and create a simple user’s manual.

In many cases, though, commercial software packages exist that will provide the majority of financial and donor management functionality required by small to mid-sized nonprofits. The initial purchase price of this software ranges between $500 and $2,500.

Step 4. Don't forget your data

Moving data from one system to another is usually not a problem. Depending on how data is structured, exporting it from one system to another can be a very simple process. In some cases, though, it makes more sense to pay a database developer to assist with data conversion. Most database vendors offer database conversion services.

Step 5. Invest in training

There’s no sense in having a healthy new or upgraded database if no one knows how to use it. Be sure to budget for key staff to receive training on the software.

Resources:

• NPower Michigan has more information on nonprofit databases
• TechSoup is is a site dedicated to nonprofit technology issues
• Compumentor's detailed Database Planning Guide

FEATURED ITEMS

Education and Training at NEW

The Fall 2004 workshop series is coming! Running from Tuesday, September 21 through Friday, November 19, the unifying theme will be Fundraising. Look for new workshop formats such as clinics and special seminars with nationally-known speakers, plus the bedrock three-hour workshops on topics that will help your nonprofit succeed.

Partner with the County to Save Money

Team up with the Washtenaw County Nonprofit Joint Purchasing Program to save money on everyday purchases. The program is open to any 501(c)(3) organization, and allows you to purchase office supplies, furniture, computers, and office machines from area vendors at reduced rates. Local nonprofits wishing to participate must first register with the county’s program. Don’t wait another day to start saving money! Contact the Purchasing Division (734-222-6760).

Community Calendar on the Web

The Ann Arbor Area Convention and Visitors Bureau has created a Web-based calendar of events serving the entire Washtenaw County area. You are invited to use this calendar to gain additional exposure for your events and avoid scheduling conflicts with other organizations.

This calendar allows you to add, change or delete your organization’s events at any time. A special feature is that you can enter events that only registered calendar users will be able to see. Your private reception for donors can be posted so that other organizations can take note and avoid scheduling a similar event the same day.

Contact Nick Miller (734-995-7281) or Virginia Kingsley (734-547-6855) to learn more and to obtain a password to start using this valuable “Extranet Calendar” free of charge.

Funding for Arts Programs: MCACA Minigrant Deadline July 1, 2004

The Michigan Council for Arts and Cultural Affairs (MCACA) offers minigrants of up to $4,000 to Michigan nonprofit organizations for locally developed, high-quality arts and cultural projects that increase public access to art and culture. NEW administers the MCACA Minigrant program for Washtenaw, Livingston and Monroe counties. Minigrant applications and guidelines are available on the NEW Web site.

NEW will host two free grant assistance workshops in preparation for the next application deadline of July 1, 2004 (for projects taking place between October 1, 2004 and September 30, 2005). Register for a workshop online or call (734) 998-0160. Workshops will be held at the NEW Center, 1100 N. Main St., Ann Arbor on the following dates:

• Wednesday, June 2, 2004, 4:30 pm – 6:30 pm
• Thursday, June 3, 2004, 8:30 am – 10:30 am

If your organization is in a county other than Livingston, Washtenaw or Monroe, visit MCACA’s Mini-Grant Regional Regranters County List to find the name of the regranting agency in your region.

For more information contact Andrew Steck (734-998-0160).

Pfizer Community Grants Program

Pfizer Global Research & Development, Ann Arbor Laboratories is committed to “supporting agencies that enhance the quality of life, provide critical health services to people in need, and foster and inspire future scientists.” To this end, they focus grantmaking efforts on programs dealing with arts and culture, healthcare, and science education. Applications are accepted twice a year and must be postmarked by January 30 or June 30. Contact the Pfizer Community Grants Program (734)622-1107 to request guidelines and an application form. The information packet is also available from NEW’s Nonprofit Resource Library.

Community Consulting Club Seeks Clients

The Community Consulting Club (CCC) at the University of Michigan Business School is seeking project clients for the 2004 Fall Semester.

The CCC provides free consulting services to nonprofit organizations in the Ann Arbor area. Small teams of MBA and undergraduate business students apply their knowledge, skills and enthusiasm to challenging business problems in strategy, marketing, operations, and finance. The consulting projects last about 10 to12 weeks from mid-September to early December.

If you are a local nonprofit interested in a CCC engagement, and are able to provide at least one dedicated project liaison throughout the project, please contact Sid Sahni or Jack Yu by June 18, 2004.

See the CCC Web site for more information.

Summer Learning Opportunities from MNA

The Michigan Nonprofit Association is offering trainings this summer at their offices in Lansing (1048 Pierpont, Suite 3). All sessions are 9 a.m. to noon.

• June 22, 2004: Developing and Maintaining a Newsletter that Supports Your Organization’s Goals
• July 8, 2004: Building Long-term Relationships with Foundations
• July 13, 2004: Researching Funding Sources
• July 21, 2004: Keeping Your Web Site Content Relevant and Fresh, presented by NPower Michigan

Online registration is available. Call 888-242-7075 (toll free in Michigan only) or
517-492-2400 for more information.

Risk Management Center Presents Locally and Online

Regional Conference on Financial Risk
NEW is pleased to serve as a local co-host for Money & Mission: Managing Financial Risk in Your Nonprofit, a one-day regional conference in Detroit on Wednesday, June 23, 2004 at the Holiday Inn Fairlane.

Find out what you can do to fortify your nonprofit for a healthy future. The Nonprofit Risk Management Center and the Michigan Nonprofit Association are hosting this training to introduce you to some key strategies for ensuring financial accountability and avoiding “scandal” and other financial problems. Nationally-known experts will teach you how to:

• Devise a game plan for avoiding mistakes and security gaps that can lead to an organizational crisis.
• Integrate practical measures that lift up and protect your organization’s charitable, community-serving mission.

MNA members attend for a reduced rate. All participants receive a free copy of the Nonprofit Risk Management Center’s best-selling book, Coverage, Claims & Consequences: An Insurance Handbook for Nonprofits.

If you can’t make it to the seminar on June 23, consider these online seminars:

The Nonprofit Risk Management Center will also offer two affordable Web seminars in June. These training sessions are an efficient and effective way to deliver in-service education.

Fraud Prevention for Nonprofits, Wednesday, June 9, 2 pm: a 60-minute seminar for $49. Learn to protect your nonprofit’s vital financial assets. Develop a game plan for avoiding mistakes and security gaps that increase your exposure to fraud. Learn how to integrate practical measures that lift up and protect your nonprofit’s charitable, community-serving mission.

Screening Employees and Volunteers, Tuesday, June 15, 1 pm: a 90-minute seminar for $75. Whether operating with all paid staff, all volunteers, or a combination of both, every community-serving organization should strive to prevent harm to service recipients or damage to the community or the organization. Screening is part of a full risk-management strategy for meeting that obligation.

If you are unable to participate in these seminars or wish to read further on these topics, stop by the Nonprofit Resource Library and check out these books published by the Nonprofit Risk Management Center:

• Healthy Nonprofits: Conserving Scarce Resources Through Effective Internal Controls
• Staff Screening Toolkit
  

Peter Drucker Award for Nonprofit Innovation

The Peter F. Drucker Award for Nonprofit Innovation is presented annually to three nonprofit organizations in recognition of an innovative, existing program that has made a difference in the lives of the people it serves.

The award is accompanied by a first-place prize of $20,000 and two runners-up prizes of $2500 each. The application deadline is August 3, 2004.

Eligibility requirements are as follows:

• Applications must be submitted by the organization responsible for the program.
• The organization must be a U.S. domiciled entity serving a U.S. population.
• The program must be fully operational at the time of application submission.
• The organization must be a registered 501(c) (3) nonprofit organization.
• The program must have been launched no earlier than January 1, 2000.

Find more details see the program's Web site for complete application information, forms, and descriptions of previous award winners.

Technology Strategies for Nonprofit Leaders

This one-day training offered by NPower Michigan is for senior leaders who oversee strategic planning and resource allocation at nonprofit organizations. The workshop content is not technical and technical aptitude is not required.

Where: Detroit, June 11, 9 am – 4:30 pm, Penobscot Building, 645 Griswold Ave., 13th floor. To register, contact NPower (866-41-NPower).

Technology Guides

NPower has published a series of toolkits highlighting the mission-support role of technology in four distinct sectors. These Technology Guides for Nonprofit Leaders identify innovative uses of technology in direct service delivery and explore the associated tools, solutions and resources that are available to nonprofits.

There are four guides available for free download on the NPower Web site:

• Arts and Culture
• Health and Human Services
• Education Services
• Community Development

The guides are also available to borrow from NEW’s Nonprofit Resource Library. Although each guide is sector specific, it has lessons and tools that may be interesting and applicable to nonprofit leaders from other sectors.

REGULAR FEATURES

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