Issue 8
November 20, 2002

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. Feel free to share NEWSNOTES with friends and colleagues -- encourage them to sign up for their own subscription.

NEW would like to recognize the generous support of its partners:

IN THIS ISSUE

LEAD STORY

Strategic Risk Management

Traditionally, managers of nonprofit organizations have dealt with risk by buying insurance, crossing their fingers, and hoping beyond hope that disaster would be avoided. You can avoid risk entirely by closing down shop, going home and pulling the covers over your head - or you can join the ranks of other organizations that have developed a strategic risk management plan.

Embezzlement, fraud, bodily injury - not exactly the makings of sugarplum dreams. Insurance does play a key role in your plan for dealing with these possibilities, but there is no policy that will repair damage to your organization's reputation, bring back disenchanted donors, or reinstate tax exempt status if revoked.

Strategic is the key word for dealing with risk. Risks are inherent in many of your operations; you can't avoid them entirely, but you can plan, prioritize and have strategies in place should they occur.

Designate a committee or individual to be responsible for the planning and implementation of a strategic risk management program, then follow these five steps:

1. Identify potential risks. Attempt to envision future events that may differ from what you expect or could deviate from the norm. Make a list -- from a civil rights lawsuit to a tornado that destroys half your facility - regardless of how improbable it might seem. Yes, it could happen to your organization.
2. Evaluate and prioritize. Determine the probability of the potential risks listed and the cost to the organization if each occurred. Is your building in a flood plain? Do you have volunteers driving clients to appointments? Prioritize your risks by focusing on the events that are most likely to occur or that would incur the most expense.
3. Develop strategies. You may decide to avoid risky activities, modify actions to make them less risky, or accept the risk and prepare for the consequences. Choose a combination of risk management techniques that are cost-effective and in accordance with your agency's goals. Evaluate your insurance coverage, certainly, and investigate local disaster preparedness plans. Do you have solid personnel policies to cover you when you must hire or fire employees? Help from outside experts may be part of developing a cost-effective solution.
4. Implement the plan. Now is the time to write that policy that will screen staff and volunteers upon hiring. Purchase the safety equipment you've been meaning to buy. Train staff and involve them in planning so normal operations can resume quickly should a misfortune occur.
5. Follow-up. Revisit your plan regularly to insure that it has the intended results. The strategic risk management process is ongoing and must constantly shift to meet the changing needs of your organization.

Resources to help you through the process:

Web sites:

• Nonprofit Risk Management Center is the most comprehensive Web site on the topic of risk issues. Find free advice and products to help you with any stage of your planning process, including:
  • Pillars of Accountability in the Nonprofit World, a free Web-based self-assessment and planning tool that covers Ethical Fundraising, Strategic Risk Management, Cultural Competence and Fiscal Integrity.
  • Keeping Your Organization Viable for the Future, which includes free online guidelines for preparing a business continuity plan. Teaches you how to be back in business immediately after a crisis.
  • Nonprofit CARES (Computer Assisted Risk Evaluation System) is available to "test drive" free online, or you can borrow the CD-ROM disk from the Nonprofit Reference Library. The program allows you to evaluate risks, safeguard assets, and protect clients and staff from harm.
  • Mission Controls Fact Sheets on Crisis Management. Look here for tips on how evacuate a building or screen prospective staff.
• The Alliance of Nonprofits for Insurance, Risk Retention Group (ANI-RRG) is a 501(c)(3) tax-exempt nonprofit insurance company whose mission is to be a stable source of reasonably priced liability insurance for 501(c)(3) nonprofits, including those in Michigan. ANI-RRG also assists nonprofit organizations to develop and implement effective loss control and risk management programs.
• Carter McNamara's Free Management Library's guides to
• Risk management
• Insurance
• Crisis management
• Safety in the workplace
• Violence in the workplace
• Nonprofit Genie answers frequently asked questions on insurance.

Books:

Many books are available to borrow from Nonprofit Reference Library at the NEW Center. Links will take you to ordering information if you wish to purchase copies.

Newsletters:

The Nonprofit Risk Management Center has both print and online newsletters.

• Subscribe to their monthly e-news
• Community Risk Management and Insurance is distributed in print three times each year to more than 15,000 nonprofits. Each issue covers a wide spectrum of risk management issues, showcases the Center's training and workshop sessions and highlights other crucial nonprofit risk management issues. Subscriptions are free. The Nonprofit Reference Library also has copies on hand.

Charity Channel publishes several email newsletters:

• Nonprofit Boards and Governance Review sends a weekly nugget of important information or advice to your inbox. On target for this issue of NEWSNOTES is their recent article on Directors and Officers Insurance - Part 2.
• Volunteer Management Review recently featured an article about Protecting Volunteer Programs.
  

FEATURED ITEMS

Education and Training: Upcoming Workshops

Featuring fundraising and key competencies.

Prepare for the year-end giving season with fundraising sessions! Upcoming workshops at NEW include:

• Friendraising & Fundraising: Steps Toward Reward
  • Join John Fike, CFRE, President of Philanthropy Solutions to learn about how relationships reflect and affect the ability of charitable organizations to solicit donors. (more…)
  • Thursday, Nov. 21, 2002, 9:00 am - 3:00 pm, NEW Center - $85; includes lunch.
  • Register online
• Roadmap for Annual Giving
  • Best practices and new approaches for annual campaigns, an organization's best source for unrestricted operating funds will be taught by Timothy Swope, Director of Fund Advancement for Michigan Nonprofit Association. (more…)
  • Tuesday, Dec. 3, 2002, 9:00 am - 4:00 pm, NEW Center - $95; includes lunch.
  • Register online

Develop your skills in key competencies with the final workshops of the Fall 2002 series.

• Leadership Resolutions: Small Actions, Big Returns
  • Do you find yourself consistently high on effort but low on time and resources to accomplish your goals? Are you achieving the results you want? Julie Hayden Maloney, President, Wisdom Works Inc. of Michigan will help you find solutions. (more…)
• Wednesday, Dec. 4, 2002, 9:00 am - 4:00 pm, NEW Center - $95; includes lunch.
• Register online
• Volunteer Recruitment for Results
  • Are you willing to change at least one thing to make a maximum impact on volunteer recruitment? Celebrate Volunteer Managers' Day by getting recharged on recruitment! Beth Frydlewicz, Parenting Program Manager, Beaumont Hospital, and Debbie Macon, Program Associate, Trustee Leadership Development, Inc. share their expertise. (more…)
  • Thursday, Dec. 5, 2002, 9:00 am - 12:00 noon, NEW Center - $50.
  • Register online
• Managing Multiple Priorities
  • With so many competing demands for our time and energy, it is more crucial than ever to focus on priorities-what is important, vital and productive. Taught by Jane Stephenson, WCC Faculty. (more…)
  • Friday, Dec. 6, 2002, 8:30 am - 11:30 am, Washtenaw Community College, 4800 E. Huron River Drive, Ann Arbor, Morris Lawrence Building, $50
  • Register online

The catalog of workshops in NEW's spring 2003 Managing for Nonprofit Excellence series will be online and in the mail in January. Sessions begin in mid-March and continue through early June. Scholarship applications will also be online; deadline for applications is February 10, 2003. Visit www.new.org for details.

Consultant Directory Up and Running at NEW's Web Site

Consultant profiles are now available to view on NEW's Online Consultant Directory. The Directory links nonprofits seeking management assistance with a network of high quality, professional independent consultants who care about serving nonprofit organizations. Consultant profiles contain comprehensive information about skills and experience to help organizations find consultants who are the best match for their needs. NEW also provides organizations with information and tools to help them embark on successful consulting projects.

Consultants currently in the Directory offer a spectrum of skills including board governance, communications and marketing, financial management, fundraising and development, human resources, meeting facilitation, organizational development and change, program planning and evaluation, strategic planning, and training. If your organization is in need of consulting services, please visit the NEW's consulting Web page.

Qualified consultants with a desire to serve the nonprofit sector are encouraged to join the Directory! Learn more at the Web site.

For more information or additional assistance, contact Daran Smith at (734) 998-0160.

Low-Cost Software for Nonprofits: Why Pay More?

Did you know that your nonprofit can purchase Microsoft products and other software licenses at significantly reduced prices? DiscounTech is an authorized reseller of "charity licenses", and offers prices that can't be beat. For example, a full version of Microsoft Office XP, which retails for close to $500, is available to nonprofits for only $60 (with additional licenses at only $40 each).

Another source of discount software for nonprofits is Consistent Computer Bargains, which offers a wider range of products at slightly higher prices. These services are fast, easy, and they save you money!

Arts Minigrant Program

Minigrant Application Deadline February 1, 2003: The Michigan Council for Arts and Cultural Affairs (MCACA) offers minigrants of up to $4,000 to Michigan nonprofit organizations to conduct locally developed, high-quality arts and cultural projects that increase public access to arts and culture. The program awards grants three times per year, with deadlines in July, October and February. Activities such as exhibits, performances, artist residencies, festivals, and conferences are eligible for funding. Applicants may be nonprofit organizations, public and private schools, cities, townships, or villages.

Nonprofit Enterprise at Work (NEW) administers this MCACA program in Washtenaw, Livingston and Monroe counties. The upcoming application deadline of February 1, 2003 is for projects whose start and end dates are between May 1, 2003 and September 30, 2003.

NEW will host a free grant assistance workshop in each county to provide an overview of the MCACA minigrant program, the review process, and successful grantwriting approaches. Interested participants may attend at the location of their choice:

Register online or call 734-998-0160. You can also download the minigrant application and guidelines from the NEW Web site. Please note that applicants in other counties may visit MCACA's website to locate the regranting agency in their region.

For more information contact Daran Smith (734-998-0160).

Marketing Challenges: Get Solutions

Would you like to brainstorm your marketing challenges with some of the brightest marketing minds in Washtenaw County - all for the price of an $8 lunch?

Marketers Making a Difference is a group of marketing professionals who meet once a month over lunch in Ann Arbor to network and sharpen their brainstorming skills by helping a featured nonprofit. They are currently seeking nonprofits interested in receiving feedback about their marketing plans at meetings to be held next spring. For more information or to be considered as a featured nonprofit, contact Cynthia D'Amour, People Power Unlimited, 734-994-3375.

Onsite Board Training Introduces New Topics

NEW's Onsite Board Training program is now offering a total of four topics for onsite delivery with your board of directors.

• Board Basics
• How to be a High Performing Board
• Recruiting a High Performing Board
• Board Survival Skills: Crisis-Free Transitions
  

Each module is a 2-3 hour class, easily delivered to your board of directors at your location. Contact Liz Peintner (734-998-0160) for more information or sample agendas for each module.

REGULAR FEATURES

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