Issue 9
December 18, 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. NEWSNOTES is pleased to announce that it recently received its 200th subscription, and that nearly 300 visitors per month read NEWSNOTES. 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

Accountability: Assess your Organization and Answer to Your Stakeholders

Accountability: Where does it start? How do we attain it as nonprofits? Scandals in a tiny minority of corporate and charitable groups have thrown the spotlight on all institutions. Donors are doing careful research and asking for more details on how their money is spent.

As nonprofit organizations, we aim to be accountable at all times, of course. We adhere to ethical and accountability standards, above and beyond those required by law. We focus on our missions and are financially responsible. We invite public interest in our organizations and when the lens of public scrutiny is focused on us, we can be proud of what others see. We are happy to share information with all of our stakeholders because we are proud of the work we do and the way we accomplish our missions.

But achieving accountability is time consuming. It takes commitment from all facets of the organization's leadership and starts with a serious dialogue. The result should be communication of our responsible behavior to the world, especially potential donors. Following are some resources to guide the discussion and suggestions on how to share information.

Accountability Assessment

• The Independent Sector is an excellent source of information for accountability and ethics standards. Their Compendium of Standards, Codes and Principles of Nonprofit and Philanthropic Organizations is a comprehensive listing of links to standards drawn up by external review organizations, organized by national and state nonprofit organizations and subsector. Ethical Conduct for Health Care Institutions, for example, can be a meaningful tool for organizations in that sector.

• To make an appraisal of your organization's practices, see Pillars of Accountability, a free web-based assessment tool available from the Nonprofit Risk Management Institute. This 20-minute appraisal covers ethical fundraising, strategic risk management, cultural competence and fiscal integrity. After answering questions about your operations on those topics, an action list is created for you to help strengthen any spots that show weakness.

• Watchdog groups give donors reports on charities that solicit on a national level. It's likely your organization is too small or locally focused to be listed at these sites, but visit them. Read their criteria for nonprofits and see what they are telling donors.
  • American Institute of Philanthropy: How AIP Rates Charities
  • BBB Wise Giving Alliance: Standards of Charitable Accountability
  • Charity Navigator: Charity Navigator Ratings
    

Communicating with Stakeholders

At this time of year, especially, the media has been full of articles addressed to donors encouraging them to give their money wisely. Pay heed to how your donors are getting information about your agency.

• If your annual gross receipts are over $25,000, you must file a 990 tax information return with the IRS. This is a public document; anyone has the right to ask for a copy of each of your last three filings. In fact, you might find your organization's Form 990 at Guidestar.

  Use the Guidestar site to your advantage. It's a comprehensive, well-respected site where potential donors are going to get information on over 850,000 nonprofits. You can create a profile of your agency free of charge and let it be a window into your agency. See "Ten reasons to become a Guidestar participant."

• Publish an annual report to share with stakeholders your accomplishments for the year and hopes for the future.

• Include your organization in the online Directory of Nonprofit Organizations in Washtenaw County. Choose "submit a new organization" if you're not already entered. You can request a password to update information at any time.

Other resources:

Evaluation on the Web:

• Ginsler and Associates offers a free Nonprofit Organization Self-Evaluation checklist , which provides a quick overview of the health of your major organizational systems.
• Garber and Associates has a Governance Check-up Sheet

Books:

• VAST of MI (Volunteer Accounting Service Team, formerly Accounting Aid Society): Michigan Nonprofit Management Manual 3rd ed., 1999. Includes "Organization Self Assessment Checklist" covering governance, financial management, bookkeeping and accounting, human resources, and program management. Available to use in the Nonprofit Reference Library.
• Nonprofit Risk Management Center, Healthy Nonprofits: Conserving Scarce Resources Through Effective Internal Controls, 1996. "By paying attention, your agency can reduce careless mistakes, ensure staff trustworthiness, and quickly detect theft and financial losses before they cripple your operations and undermine your mission." Borrow from the Nonprofit Reference Library or order online.
• Lang, Andrew S. Financial Responsibilities of Nonprofit Boards, rev. ed., Washington, DC: BoardSource, 2003. Borrow from the Nonprofit Reference Library or order online.

FEATURED ITEMS

Board Resources: Our Favorite Sites Online

Bookmark this fantastic web site for board information! Every board member should know about the online "Toolkit for Boards" found at www.managementhelp.org. Created and managed by Management Assistance for Nonprofits in St. Paul, Minnesota, this easy resource has every board topic you'd ever consider - from by-laws to conflicts of interest to trustee recruitment. For help implementing your favorite ideas, contact NEW's Board Programs for support and assistance - Liz S. Peintner, (734) 998-0160.

Other favorite websites of NEW's board programs staff:

• The Alliance for Nonprofit Management Board Development FAQs
• Georgia Center for Nonprofits Governance FAQs

Nonprofit Reference Library: New Titles

Valuable print resources on board governance have recently been added to the circulating collection at the NEW Center. Come to Room 103 to borrow, or order copies online.

• Nonprofit Board Answer Book II: Beyond the Basics
• Transforming Board Structure: Strategies for Committees and Task Forces
• Youth on Board
• The 9-part Governance Series (revised)
  • Ten Basic Responsibilities of Nonprofit Boards
  • Financial Responsibilities of Nonprofit Boards
  • Structures and Practices of Nonprofit Boards
  • Fundraising Responsibilities of Nonprofit Boards
  • Legal Responsibilities of Nonprofit Boards
  • The Nonprofit Board's Role in Setting and Advancing Mission
  • The Nonprofit Board's Role in Planning and Evaluation
  • How to Help Your Board Govern More and Manage Less
  • Leadership Roles in Nonprofit Governance

Leadership²Go: An Executive Director Exclusive!

Executive directors, mark your calendars now for Spring 2003 Leadership²Go events:

• Happy Staff Who Stay (Panel, Q&A and Networking)
  February 14, 2003, 8:30 -10:30 am

  Come talk with other area executive directors about recruiting and retaining enthusiastic, qualified staff. Panelists include Dale Berry of Huron Valley Ambulance, Jim Frenza of Ann Arbor Hands-On Museum, Laura Rubin of Huron River Watershed Council and Gail Scott of Girl Scouts of the Huron River Valley Council.

• The Trustee Connection (Panel, Q&A and Networking)
  Friday, May 2, 2003, 8:30 - 10:30am

  Solid leadership by both the executive director and board are the foundation for a healthy, sustainable organization. Panelists include Gary Bell of SOS Community Services, Joan Chesler of the Corner Health Center, Mary Steffek Blaske of the Ann Arbor Symphony Orchestra and Dave McDowell of Ronald McDonald House of Ann Arbor.

Mark your calendar and register in January under the "workshops" section on NEW's home
page.

Education and Training

The catalog of workshops for 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 for workshops will also be online. The deadline for scholarship applications is February 10, 2003. Visit NEW's home page for details.

Arts Minigrant Program

Reminder - Minigrant Application Deadline February 1, 2003: The Arts Minigrant Application Deadline is February 1, 2003. The Michigan Council for Arts and Cultural Affairs (MCACA) minigrant program is for projects whose start and end dates are between May 1, 2003 and September 30, 2003. Nonprofit Enterprise at Work (NEW) will host free grant assistance workshops in Washtenaw, Monroe, and Livingston Counties to provide an overview of the program, the review process, and successful grantwriting approaches. More information is available on NEW's Web site.

Ann Arbor Area Community Foundation: Upcoming Deadlines

The General Grant Program accepts applications for projects focusing on education, social service, the environment, culture, community development, or health and wellness. Deadline: February 5.

The Foundation's Youth Council, comprised of teenagers from local high schools, awards grants from a separate endowed fund. Their grants focus on issues and problems relating to young people in our community. Deadline: February 12.

The African American Endowment Fund provides grants to improve the physical, economic, social, and educational conditions of African Americans in the Ann Arbor Area. Deadline for letter of intent: March 5.

Rosebud Foundation: Grant Deadline Announced

The Rosebud Foundation in Dexter, MI is accepting applications for their Youth Program Grants (maximum $5,000). Deadline February 21. Contact Brooke Tracy at 734-424-0727.

Technology: Dynamic Email on a Shoestring Budget

If your nonprofit staff knows how to create a Web page in HTML, then your organization has the ability to send out attractive and effective "dynamic" email that includes graphics, links, and attractive layouts (perfect for online newsletters). Better yet, you can do so at little or no cost! NEW's Nonprofit WebConnect program recently presented a training session on this topic, and released a comprehensive Dynamic Email Handbook that is available free of charge.

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