Essential Supports for Nonprofits and Family Foundations

Essential Supports for Nonprofits and Family Foundations 

In the dynamic realm of nonprofit and family foundations, unforeseen challenges can and will arise.  Having skilled professionals onboard in a variety of areas helps to mitigate unique challenges. A team of knowledgeable professionals is a necessity for those committed to creating positive impacts. In the ever-evolving landscape of nonprofit and family foundations, the importance of a solid team of professionals cannot be overstated. Having these professionals on board assures your resilience and ability to thrive amidst challenges. 

1. A Seasoned Nonprofit/Tax-Exempt Org Attorney: At the forefront of any nonprofit's arsenal is an experienced attorney specializing in nonprofit law. Navigating the complex legal framework governing nonprofits requires not just expertise but also foresight. From establishing the organization's legal structure to ensuring compliance with regulatory requirements, the attorney plays a pivotal role in safeguarding the organization's interests. When to call the lawyer? Example: When there is a conflict of interest involving a potential transaction between a board member and the organization.  

2. Certified Public Accounting Firm (CPA Firm) specializing in nonprofits: Trust is at the heart of the nonprofit's relationship with its beneficiaries, donors, and the public. Financial transparency and clarity enhance trust. CPA firms today provide three essential service areas advisory, tax, and audit. Nonprofits always need advisory and tax preparation and those with 2m or more in revenue (California) require audit services.  A good nonprofit CPA firm can provide invaluable expertise in financial management, budgeting, and reporting. The auditor provides oversight to ensure transparency and accountability in the organization's financial operations, thereby fostering trust among stakeholders.  When to call your CPA? Example: When you are unsure about categorizing an expense as program management or fundraising. Definitely call when you are considering undertaking a fee for service or other revenue generating program activity.  

3. Investment Manager with multiple nonprofit clients: In an era of economic uncertainty, effective management of financial assets is paramount for nonprofits. An investment manager, equipped with market insights and strategic acumen, helps optimize the organization's investment portfolio to support its long-term sustainability and growth objectives. Ideally, your Invesment Manager will communicate or meet with the Finance or Invesment Committee Quarterly and with the Board Annually. BV recommends working with investment management firms who are willing to serve as a true and certified fiduciary in writing. When to call your investment manager? When you are considering a larger than average withdrawal from the portfolio or anticipating an unusual one-time gift of cash or stock. (These are also good times to call your CPA).  

4. HR Specialist who understands nonprofits: People are the most important asset of any organization, and nonprofits are no exception. An HR specialist plays a multifaceted role in recruiting, retaining, and developing talent within the organization. From crafting equitable employment policies to fostering a culture of inclusivity and diversity, their contributions are instrumental in nurturing a cohesive and high-performing team. Additionally, the employment laws in the U.S. (particularly California and New York) are ever-changing and complex. Nonprofits operating in multiple cities, counties, and states may have three or more minimum wage statutes requiring compliance. When to call your HR consultant? When you are considering hiring employees in a new city, county, or state. Other times to call your HR consultant? When you feel unrest or discontent among your employees or when you receive a complaint regarding any of the following: race, color, ancestry, national origin, religion, creed, age, disability (mental and physical), sex, or gender (including pregnancy, childbirth, breastfeeding or related medical conditions) sexual orientation. 

5. Real Estate Advisor specializing in nonprofits: Nonprofits often rely on physical infrastructure to fulfill their mission, whether it's office spaces, community centers, or outreach facilities. A real estate advisor brings expertise in property acquisition, leasing, and management, helping the organization make informed decisions regarding its real estate assets. Their strategic guidance ensures that the organization's physical footprint aligns with its operational needs and budgetary constraints. When to call a real estate advisor? When you are entering strategic planning and the question of improving the current owned building versus leasing or purchasing a new or larger building arises. 

6. Banking Specialist focused on nonprofits: Efficient cash management is essential for the smooth functioning of nonprofits, ensuring liquidity to meet operational expenses and fund critical initiatives. A good banking specialist will offer insights into products and services which optimize cash flow, earn interest, and mitigate financial risks. Their expertise can help you make sound financial decisions in this dynamic economic environment. When to call your banker? When you are awarded a government grant which has a 90 day or greater payment cycle. (Cash flow is key to paying your employees and vendors while awaiting payment or reimbursement from the city, county, state, or federal government.) Or be sure to call you banker when you have funds not needed for immediate operations and would like to earn interest on them. A good banker will assist you in creating a CD ladder or to enter a high interest money market account to meet both your desire for interest and accessibility of assets.  

In nonprofit and family foundations, unforeseen challenges are inevitable, testing the resilience of organizations. However, having a skilled team of professionals onboard in various key areas is crucial for mitigating these challenges effectively. In this comprehensive exploration, we've identified six essential players: an experienced attorney, CPA, investment manager, HR specialist, real estate advisor, and banking specialist. Each of these professionals brings unique expertise to the table, contributing to the organization's ability to navigate both expected and unexpected obstacles. From legal compliance to financial stewardship, talent management, real estate strategy, and cash management, these key players form the backbone of nonprofit resilience and efficacy. By delving into the roles and responsibilities of each, we aim to uncover the strategies and best practices that empower nonprofits and family foundations to achieve their mission and create lasting positive impacts in their communities. 

Demystifying the Grant Application Process: A Guide for Pursuing Grants from Private Foundations

Introduction: 

Embarking on the journey of securing grants is a critical aspect of sustaining and expanding the impact of nonprofits. The grant seeking cycle involves a series of interconnected steps that, when navigated strategically, can lead to successful funding outcomes. In this guide, we'll delve into each stage of the grant cycle, providing insights and tips to empower organizations in their pursuit of financial support. 

1. Assessment and Planning: 

The grant-seeking process begins with a thorough assessment of your organization's needs and objectives. Identify funding opportunities aligned with your mission and create a plan that outlines your goals, target funders, and potential outcomes. 

2. Research and Identification: 

Conduct solid research to identify potential grant opportunities. Explore government agencies, private foundations, and corporate donors that share a mission or values congruent with your organization. Utilize online databases, networking events, and industry publications to stay informed. Databases like Candid (Foundation Directory Online), Grant Watch, Grant Station, and even social networking sites like LinkedIn.  

3. Proposal Development: 

3a. Craft Your Core Language 

Crafting the core language for your proposals can be an efficient tool as most of that core language will remain the same across multiple applications and funders. When creating your core program description BV recommends directly working with the Program Coordinator. Your organization's program coordinator will have the most up-to-date descriptions as well as amazing stories of those served by the program. In your expanded core language clearly articulate your organization's mission, goals, and the specific project or initiative for which you are seeking funding.  

3b. Specific Proposal for Specific Funder 

Nearly all proposals are submitted online today. You will need to register as a user on the funders’ platforms or websites to begin the proposal process. Some foundations will require a pre-application, eligibility form or a more extensive letter of inquiry. Follow the prompts and complete any pre-applications or eligibility forms. Once done, you will be allowed or invited to move onto a letter of inquiry or a full proposal. Again, nearly all of these proposals and attachments are done online through either a foundation portal or a platform such as Submittable, Blackbaud, Foundant or Good Grants. Tailor each proposal to meet the requirements and priorities of the targeted funder.  

3c. Brief is often Better! 

The online applications via portal or platform will most frequently have character or word limits per section. Just because the funder has permitted 1,000 characters does NOT mean you need to use them all! Program Officers and others reviewing grants online have a finite amount of time and are greatly appreciative of clarity and conciseness. 

3d. Be Human 

Remember a few paragraphs ago when we suggested you speak with the Program Coordinator at your organization? Go talk with them again! They have the most amazing stories and quotes to share with you. These can and should be woven into your grant proposals. They are the icing on the cake and make for a human connection. We are wired for a good story. 

 4. Application Submission: 

Navigate the intricacies of grant application submissions with precision. Ensure that all required documents are completed accurately and submitted by the deadline. Pay careful attention to guidelines and formatting preferences outlined by the funding entity. Be sure to check your email for correspondence from the funder OR the funder’s platform. For example: When foundations manage grants via Submittable, some prefer to correspond via the Submittable platform so that they and the grantee can have a nice, clean record of communications via one system.  

5. Grant Review and Evaluation: 

Once submitted, your proposal undergoes a review process. Familiarize yourself with the evaluation criteria used by funders. Be prepared to address any additional inquiries or provide supplementary information during this phase. Again, check your email for notices from the grant submission platform. 

 6. Award and Acceptance: 

Celebrate success upon receiving a grant award! (BV staff have been known to dance, cheer or even cry when awards come in!) Thoroughly review the terms and conditions outlined in any grant agreement, and promptly submit any required documentation to formalize the acceptance process. Demonstrate gratitude to the funding entity for their support. Just because it is a private foundation vs an individual does not mean that a Thank you letter is not expected. In fact, auditors frequently ask foundations for a copy of thank you letters sent by grantees to the funder. Include the program/project, date and amount of the grant in the letter. 

7. Grant Implementation: 

Review your plan for utilizing the grant funds, ensuring alignment with the proposed project. Establish communication channels with the funder to provide updates and address any unforeseen challenges. Notify the funder ahead of time if you anticipate a failure to spend all funds allocated or have an urgent need to request a redirect of any funds. (Not ideal, but better to ask permission if needed.)  

 8. Monitoring and Reporting: 

Implement a monitoring mechanism to track progress and evaluate the impact of funded initiatives. Regularly communicate with the funding entity through progress reports, sharing successes, challenges, and adjustments made to ensure transparency and accountability. And... funders actually love to see photos – especially family foundations. 

Closing and Evaluation: 

As the grant-funded project concludes, conduct an internal review and complete any reporting and evaluation requested by the funder. Reflect on the accomplishments. The final report should highlight the outcomes and impact of the funded activities as well as any challenges you had to overcome, or lessons learned.  

Navigating the full grant cycle is a dynamic process that requires planning, effective communication, and a commitment to accountability. By understanding each stage of the cycle and adopting the above practices, nonprofits can enhance their grant-seeking endeavors, ultimately leading to greater success in funding their missions. Remember, each step is an opportunity to strengthen relationships with funders and showcase the positive impact of your organization. 

Infrastructure: Benefits & Compensation

In our previous blog we gave you an introduction to Infrastructure and we’re back again to get into the details of benefits and their role in the infrastructure building process. Benefits are forms of compensation separate from wages that employers provide in addition to salaries. Having competitive compensation and benefits packages are essential for maintaining quality employees and reducing turnover.  

You may be wondering where to start when thinking about benefits and compensation. Like most parts of the infrastructure building process the first place to start is by identifying what the needs of your organization are. Here is where you would define what roles are essential to keeping things running. Most family foundations and charities typically have CEOs or Presidents, CFOs, director(s), a series of program officers, and administrative support. Depending on the size and needs of your organization you may need to create niche roles dedicated to specific areas of business. After you define what positions your organization needs to thrive you need to research what your industry peers are paying. Through conducting this research, you will be able to get a clearer understanding of what you can expect to pay in salaries and benefits.  

Now that you have established what base salaries you will offer for each of these positions, the next step is figuring out what benefits you would like to give your employees. Most organizations provide basic medical benefits. Other forms of benefits such as dental, vision, and retirement plans vary between organizations. High Deductible Medical Plans with HSAs (Health Savings Accounts) are growing in popularity because of their significantly lower monthly premiums. 

Deciding on what benefits to give your employees may feel daunting but there is light at the end of the benefits and compensation tunnel. Once you decide on the core pieces of compensation, you can move on to decide what other perks your employees will receive while working with your organization. Do you want to give employees remote working options? Do you want to sponsor wellness benefits such as gym memberships and access to mindfulness classes? How about reimbursement for Wi-Fi, cell phones, and any other tools your employees may use daily to keep business running smoothly? The list of potential employee perks is endless, and you get to decide how you will care for your employees outside of compensation. 

Compensation and benefits can work for the betterment of your business. Offering employee benefits helps to attract and retain quality employees that will care about your organization just as much as you do! 

Maximizing Year-End Fundraising Success

As the year comes to a close, organizations are presented with the opportunity to maximize their fundraising efforts. With the holiday spirit (and year- end tax planning) in full swing, donors are more generous during this time. To help your nonprofit make the most of this season, we've outlined helpful steps for year-end fundraising success: 

1. Set Clear Fundraising Objectives:  

Start by defining specific, measurable, and achievable fundraising goals. Whether it's a monetary target, the number of new donors you aim to acquire, or a percentage increase compared to the previous year, clear objectives will guide your efforts. 

2. Get Personal with Your Donor List: 

Not all donors are the same. Separate your donor list based on factors like giving history, demographics, or your own unique relationship. This enables you to tailor your messaging and fundraising appeals to each group, making your outreach more personalized and effective. 

3. Tell Compelling Stories: 

Stories have the power to connect with your audience on an emotional level. Craft compelling narratives that highlight the impact of your organization's work. Use real-life stories, testimonials, and case studies to demonstrate the tangible difference their support can make. This is a great opportunity to utilize your annual report when looking for stories to tell. 

4. Start Early and Plan Strategically: 

Successful year-end fundraising requires early planning. Commence preparations well in advance, with a comprehensive campaign strategy that outlines your messaging, communication channels, and the timeline of your campaign. This approach allows for a coordinated and strategic effort. 

5.Utilize a Multi-Channel Approach: 

Don't rely on a single communication channel. Combine email, social media, direct mail, and your website to reach a broader audience. Different donors prefer different methods, so using multiple channels ensures you can connect with as many potential supporters as possible. Ensure your online donation process is mobile-friendly. With the increasing use of smartphones and tablets for online transactions, it's essential to have a seamless mobile giving experience to capture donations from donors using these devices. The Giving USA report shared many new and inventive ways that people are turning to technology for giving.  

6. Thank and Recognize Donors: 

Donor appreciation is crucial. Show your gratitude with personalized thank-you messages, certificates, or exclusive content that acknowledges their support. Acknowledging their generosity can help build strong and lasting donor relationships. Each donor will have their own “love language” for gratitude and recognition. For some donors that may look like a virtual or in-person event specifically for donors and for others it may be as simple as a handwritten note.  

7. Be A Friend  

Fundraising is all about building and nurturing relationships. Make sure you are in tune with your supporters and are making the effort to get to know them as people beyond your work together. When BV works with board members, we often notice that the organizations that have the most impact on donors are the ones who establish meaningful relationships with them. Being a friend with your donor looks like understanding them beyond their role and seeing them as people. If you find out your donor or contact is having trouble such as family death, illness or other forms of stress, don’t hesitate to send them a small tangible gift to let them know you are thinking of them. 

By taking these steps, your nonprofit can make the most of the year-end season, not only boosting fundraising success but also building and strengthening lasting donor relationships. The end of the year is not just a conclusion; it's an opportunity to make a lasting impact. Thanksgiving is not just a holiday but rather a state of mind that drives charitable giving.