Issue 40
September 14, 2005

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. NEWSNOTES is proud to celebrate its fourth year of publication, with delivery to over 540 subscribers every month! We welcome your feedback and suggestions!

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

IN THIS ISSUE

LEAD STORY

Sound Financial Management for a Sound Night's Sleep

by Bonnie McFarlane, Director, Fiscal Sponsorship Third Sector New England*

When nonprofit executives and senior managers are asked what about their organization keeps them awake at night, most will give the short and simple answer: money.

While most executive directors bring financial management experience to their job, many have less expertise in this area than they would like. All of them, however, are aware that financial management is key for organizational success. Strategic money management is essential on both an operations and a macro level. It is linked with every function of the nonprofit.

Macro Level Oversight

Do your funding sources support the program mix you need? Do you have the right combination of restricted and unrestricted funds, individual donors, foundation and government funding sources?

Are you investing in your organization’s future? Sound financial management requires that you broaden your focus beyond having a fund balance large enough to finance cash flow (typically 3 to 12 months of operating expenses). If you’re always coming in at break even, research some ways to invest, perhaps through an endowment, a major donor campaign or an annual fund.

Are you doing enough to build your infrastructure to match what will be needed in the future? Costs are involved in evaluation, technology, marketing – all critical to developing viable programs.

Make sure you understand your balance sheet or Statement of Financial Position. The information can give excellent insights into cash flow needs, debt payment requirements, and funding needed to maintain equipment and facilities, to name a few.

Operational Level Oversight

Are you “in the mix” when it comes to financial systems and information? Look at the details, the systems, the checks and balances and the management letter from the audit report. Can you get details from your finance professionals in a format that you can understand? Would you be embarrassed if anything in your expenditure or salary base made today’s headlines? Can you defend your budget to your board, supporters and colleagues? If not, change is in order.

Are you comfortable with financials on the programmatic and organizational level? Are managers getting the information they need to understand their programs on a financial level? Are programs paying their way, including overhead and administrative costs? Financial reports must clearly show the restricted and unrestricted funds. This is critical for knowing what can and cannot be changed if the budget should require adjustment.

Do your financial statements pass the “logic test”? If, for example, you have a government contract that requires certain services be performed by a specific staff member, do the financials show a portion of that person’s salary apportioned to those contract funds?

If financials are not easily understood, take steps to rectify the problem through a change in format or additional training for those reading the statements.

How do you address problems with financial reporting? Are reports, reimbursements or billings going out late or have consistent errors? A different timeline could make a difference, or you may need to provide additional training for those preparing the reports. In some instances, a change in personnel may be in order.

To make sure your nonprofit organization is financially healthy, you need to know the details, ask questions, demand answers and understand the big picture. The benefits? You will be able to be more entrepreneurial. You'll understand where you can be creative, how you can invest, and where you have or can get the freedom to pay for programs or activities not covered by most funders. You will better meet your mission, and you'll be doing the most with the funds – and the public trust – you receive as a nonprofit organization.

Having a firm grasp on your finances on a regular basis will relieve a lot of tension and help you understand your organization on a deeper, more holistic level. And you will, more likely, get a better night’s sleep.

* This is a shortened version of Ms McFarlane’s article from the Third Sector New England’s TSNE newsletter of April 2005. See the complete article. Subscribe to the TSNe-Bulletin.
Learn more about the fiscal sponsorship department at TSNE.

Additional Resources:

NEW’s Managing for Nonprofit Excellence workshop series has just what you need to improve your financial management skills. Check out these workshops offered this fall:

Basic Nonprofit Accounting, September 22
Budgeting for Programs and Proposals, an online course available any time
Planning Your Finances to Sustain Your Mission, October 11
Financial Literacy: How to Make Sense of Your Financial Information, October 20
How to Read Financial Statements, November 17
QuickBooks® 2003, a two-part class November 11 and November 18

NEW’s ResourceConnect provides links to Web resources as well as books and service providers to help you with your financial management questions.

Subscribe to the online newsletter Nonprofit Fiscal Fitness.

FEATURED ITEMS

NEW Workshop Series

Good stewardship of our community resources requires lifelong learning. Peter Brinckerhoff suggests we conduct a regular personal stewardship self-assessment that includes the question; “Have I learned a new skill of any kind in the past eighteen months?”(Nonprofit Stewardship, p. 223).

An exciting lineup of training opportunities awaits you this fall through the Managing for Nonprofit Excellence workshop series. Encourage board members, volunteers and staff to brush up on current skills or acquire new perspectives at upcoming workshops covering topics from accounting to volunteer management. The calendar shows the offerings chronologically.

Register online and save $5 off the workshop price!

Leadership²Go: Executive Directors Series

Friday, September 30, 8:30 a.m. – 10:30 a.m.
NEW Center, 1100 N Main St., Ann Arbor

Executive directors are invited to attend a networking and panel discussion session entitled A Roadmap to Compliance: Preparing to Navigate New Regulations. Get crucial up-to-date information on the intensified regulations that are expected to affect all nonprofits. Come away with action steps and sample policies to help prepare a stronger future for your organization.

The $10 registration fee includes a continental breakfast. Please register in advance.

Grant Research at the NEW Center

Are you looking for grants to fund your programs? FC Search, the definitive CD-Rom database of foundations and corporate giving programs is available to use at the Borders Group Nonprofit Resource Library, Room 103. Any member of the public is welcome to make an appointment to receive training and coaching from the library staff. A judicious choice of search terms will quickly result in a list, with full text records, of the most likely funders. Please contact Ann Gladwin (734-998-0160 x 218).

FC Search training is also available in a classroom setting either Friday, October 21 from 9 a.m. to 10:30 a.m. or December 9 from noon to 1:30 p.m.

Short on time? The Library staff can perform a search for potential funders for a reasonable fee.

Foundation Grant Deadlines

The Ann Arbor Area Community Foundation (AACF) is accepting applications for two different grant programs this fall.

1. The Ypsilanti Community Fund is a permanent endowment established to support programs, events and projects in the greater Ypsilanti area. The deadline for a letter of intent is October 5, 2005. Visit the website for more details and download a copy of the application.
   
2. The AAACF Youth Council will be making grants from their Youth Fund to local nonprofits that serve youth ages 5 to 18. See the criteria for applying in the request for proposals. The deadline for submission is November 2, 2005.

All potential applicants should visit the grant section on AAACF’s website for detailed instruction on the grant application process. Applicants for either program are encouraged to apply on-line. All grant applicants are required to contact Martha Bloom (734-663-0401)at the Foundation before the deadline to explain the nature of the grant and also gain an understanding of the Foundation priorities for the year.

U of M Students Seek Real World Projects

Each year, students living in the University of Michigan’s Telluride House plan and implement a major project that improves public life in the Ann Arbor area. The students welcome proposals from nonprofits organization in southeastern Michigan for their Community Service Partnership Grant. The deadline for application submission is Monday, October 3, 2005 by 5 p.m. The chosen organization will receive $1000 in project-related support as well as approximately four volunteer hours per week from about eight individual students. The grant could be renewable for up to three years, with project-related support increasing to a maximum of $5000 per year. Find out more about the program, and download an application at their website.

The Needs Assessment Methods class in the University of Michigan’s School of Public Health would like to conduct ‘real world’ needs assessment projects for health and human service organizations. Contact John Sonnega (w. 734-936-0556; h: 734-459-3877).

The U of M’s Undergraduate Research Opportunity Program (UROP) sponsors the Community Based Research Fellowship Program. Students with a keen interest in issues relevant to urban communities, communities of color and/or diverse populations spend 10 to 15 hours per week on an 8-month research project. There is no cost to the organization, but a project supervisor is required. Contact Alba Rueda-Riedle (734-647-7767) about opportunities for next year.

The Community Consulting Club (CCC) at U of M’s Ross School of Business offers management consulting services for local nonprofit organizations. Projects include business development plans, marketing strategies, as well as fundraising / finance planning. The fall project list is already set, but the CCC is beginning to accept applications for the winter term. For more information, visit the CCC website.

Nonprofit Week 2005

The week of September 18 – 24 is designated Nonprofit Week to raise the awareness of the wide variety of services provided by over 23,000 nonprofit organizations in the state of Michigan. A major highlight of this celebration will be the annual Nonprofit Day in Lansing on September 25. Participants will learn about the public policy topics impacting nonprofits and how the sector can work together to address these concerns. This year’s keynote speaker is Deborah S. Hechinger, President and CEO of BoardSource, the premier resource for nonprofit board information and leadership development.

The Michigan Nonprofit Association offers tips on how to celebrate nonprofit week.

Leadership Programs at MNA

The Michigan Nonprofit Association has extended its deadline for application to both of its leadership programs until Thursday, September 15.

The Executive Leadership Fellows Program gives executive directors with less than three years experience leading a nonprofit organization the opportunity to acquire and fine-tune basic management skills, explore a personal leadership style, and chart a course for the organization’s future. The program spans seven months, with five interactive two-day sessions.

Participants in the Emerging Leaders Program are individuals with between one and five years of professional experience in the nonprofit sector who commit over 100 hours to a focused education over six months. Visit the website for more information or contact Robin Lynn Grinnell (517-492-2414 or 888-242-7075).

Certificate of Excellence in Nonprofit Leadership

The Learning Institute for Nonprofit Organizations is introducing a new group study approach to online learning. The first month-long course in a series of eight begins on September 15. Completion of the series next May earns participants a Certificate of Excellence in Nonprofit Leadership and Management from the Society for Nonprofit Organizations and 4.8 continuing education unit credits from Michigan State University.. These classes, beginning with Strategic Planning, are taught by acknowledged experts in their fields. They are facilitated, interactive, and limited to 25 students.

The Learning Institute’s original independent study option for the eight courses is still available and CEU credits apply.

Technology Training

Tech Train-o-Rama
Are you the person that takes care of your agency’s computer, but you aren’t really a techie? Are you looking for some tips and tricks to keep your nonprofit’s computers and network running smoothly? Then you will enjoy Npower Michigan’s free Day of Service: Tech Train-o-Rama on Friday, September 30th sponsored by Microsoft Corporation and held at their headquarters in Southfield. NPower will offer a series of mini-seminars covering the basics to help you do your job.

Detailed information and online registration is available on the NPower website.

Online Technology Seminars
Nonprofit Technology Enterprise Network (N-TEN) helps nonprofits make more effective use of technology to advance their missions. Check out the Webinar [online seminar] choices being offered this fall.

Sept. 15 Best Practices for Streaming Media Production
Oct. 12 Online Publishing and Content Management with Open Source Software
Nov. 3 How the Internet has Changed Volunteering
Nov. 15 Branding Through Websites

Participants log-in to watch the presentation on their personal computers and listen by dialing in by phone. The cost to purchase a Webinar is just $50 for N-TEN members and $75 for non-members. As many people can watch at one computer as can hear the speaker phone!

Arts Minigrants

The Michigan Council for Arts and Cultural Affairs (MCACA) Minigrant Program provides grants of up to $4,000 for locally developed, high-quality arts and cultural projects. The Arts Alliance of the Ann Arbor Area (A5) is the regional regranting agency for the Minigrant Program in Livingston, Monroe and Washtenaw counties

The deadline for application submissions is Monday, October 3, 2005. Find more information online including criteria for applying and scheduled trainings in proposal development.

Washtenaw County Nonprofit Joint Purchasing Program

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 in the County, and allows purchases of office supplies, furniture, computers, and office machines from area vendors at reduced rates. An informational meeting about the program and its vendors is scheduled for Tuesday, September 27, 9 a.m. – noon at the Washtenaw County Library Learning Resource Center, 4135 Washtenaw Ave., Ann Arbor. Please call 734-222-6760 to register (ask for Crystal or Jody). The meeting will also feature a presentation on Wireless Washtenaw.

Reminders

Office space is available at the NEW Center for a 501(c)(3) tax exempt organization. Contact Lia Stevens (734-998-0160 x 203).

A Women’s Expo will be held Friday, October 21 and 22 at EMU’s Convocation Center

REGULAR FEATURES

Nonprofit Bulletin Board

Visit NEW's Nonprofit Bulletin Board to post and view notices about free resources, fundraising opportunities, and other items relevant to the southeast Michigan nonprofit community.

Events Calendar

Ann Arbor Area Convention and Visitors Bureau calendar of events. E-mail Nick Miller to request a password to submit an event.