DEDICATING THIS PAGE AS A RESOURCE FOR BOARDS/ ASSOCIATIONS AND MEMBERS

POSTED JAN. 23, 2012

GRANT STATION~ TRACKS TO SUCCESS

Tracks to Success
The Fully-engaged Fundraising Board – Part 2

by Judith Margolin

To succeed at fundraising your nonprofit organization must have the right people on board, the right structure and policies in place to support fundraising, and a board that has overcome its reluctance to ask for money. Beyond that there are a number of very different roles your board members can play to help secure the financial resources you require. Some board members may limit themselves to just one role; others may take on several, either sequentially or all at once.

Roles Board Members Can Play to Help Secure Funds for Your Organization

Here are the various roles, many going beyond what one typically thinks of as fundraising:

• Board  member as financial contributor
• Board member as intermediary
• Board member as prospect identifier
• Board member as endorser of your request
• Board member as ambassador out in the community
• Board member as heavy lifter

Let’s examine these roles one by one:

Board member as financial contributor — Not every board member is capable of giving a significant gift. Everyone, however, is capable of giving at least a token gift — whatever amount you determine that gift should be. The important thing is that you are able to tell prospective funders that 100% of your board contributes financially to the organization.

Board member as intermediary — Serving as an intermediary between your organization and a prospective funder is actually a common role for a board member to play. An intermediary’s true function is typically to “grease the wheels” for the request rather than officially making the ask.

Board member as prospect identifier — Your board members have all kinds of connections, be they family, business, or personal. Each and every board member has the capacity to open doors to others who may have power and influence. Board members can also be very helpful in determining how much to ask a particular funder for and the best means of initial approach.

Board member as endorser of your request – Endorsement can take many forms, including a brief call or email prior to submission, a post-it or personal note attached to the proposal itself, a post-submission call while the decision making process is taking place, meeting and greeting at official and non-official functions, and participation in site visits along with the board chair or key staff member.

Board member as ambassador — When out in the community, whether at a social event, a business or town government meeting, a club gathering, or just chatting with someone while waiting in the supermarket line, your board member should always be wearing her or his board member’s hat, and be looking for opportunities to sing the praises of your organization.

Board member as heavy lifter – For the organization with no staff, all of the tasks related to securing funding still need to take place, but somehow they need to happen without anyone getting paid to do them. Virtually all tasks around raising funds are appropriate for board members to take on when there is no one else to do so. But it takes an incredibly dedicated board to complete these tasks and to do so in a cohesive, organized way, with accountability for what transpires.

Putting It All Together

For your own board to become a fully functioning well-oiled machine when it comes to raising funds, you need to develop an action plan, and that plan should involve board members contributing in all the ways described here. Having specific metrics around what you hope to achieve and enough time to implement the plan will be critical to your success.

The Fully-engaged Fundraising Board – Part 1

by Judith Margolin

Part 1

Over the course of my career, and especially in the recent economic turndown, I have noticed that one of the primary reasons nonprofit organizations fail to secure outside funding is that they have a weak, inactive, or unengaged board or a board that is reluctant to participate in fundraising. The fact is that in today’s competitive grantseeking environment, this is a luxury most nonprofits simply cannot afford.

Who’s On Your Board?

The ideal board is something we all strive for. Yet we rarely encounter it. Most of us have boards that are too small, with gaps to fill, and with some non-contributing members. If your organization does not have term limits for board members and rules about “re-upping,” that’s something you might want to implement.

Among the many nonprofit board members I’ve encountered over the years, here are few types that are quite common:

• The “inherited” board member who never seems to leave
• The “way-too-involved” board member who doesn’t give others a chance to lead
• The “I never come to meetings” board member
• The “you’re not my top priority” board member who is too involved with other organizations
• The “I don’t ask for money” board member

These are stereotypes, but they might be familiar to you. Even in these situations, however, the truth is that each and every one of your board members has skills, talents, interests, and connections to bring to the table. You just have to find a way to unleash those assets.

Board Member Reluctance to Fundraise

None of us really loves asking people for money. And the reasons board members dislike doing this range from shyness, to fear of rejection, to assuming it is someone else’s job. I’d like to recommend that you and your board adopt a drastically expanded concept of what fundraising is all about, so that not everyone on your board is asking for money, by any means. But every board member is contributing in one way or another to the common cause of strengthening your organization’s financial resources.

And it’s really critical when new members come on board that you make expectations about all the activities they will be expected to engage in, including fundraising, crystal clear. Having board member job descriptions will help in this regard.

Key Roles and Responsibilities of Nonprofit Boards

The primary function of a nonprofit board is to provide governance and strategic and financial oversight of the organization. For staffed organizations the board may stick to this function only.  For volunteer-led organizations, board members often perform many other functions.

Nothing could me more critical, however, than ensuring that your organization has the financial resources to accomplish its mission. Every nonprofit board should have a structure in place to support development and excellent data sources, record keeping systems, and fundraising materials to make board members’ lives easier.

Fundraising is Data Driven and Board Members Need Support

If you are going to expect your board members to raise funds, they will need maximum hand-holding as well. Here is a list of basic requirements.

Board members who help raise funds need:

• accurate, current, and up-to-date information
• support and encouragement
• to be reminded of their role
• to be kept in the loop
• to be thanked, often

The savvy nonprofit development officer who keeps these basics in mind will soon find that board members are much more willing to engage in the task of asking others for money.

Next time: Fundraising isn’t all about money. What are some other key roles that board members can play that contribute to the bottom line?

IDEA IN PRACTICE:  An in-depth look at how one European industrial-goods company used the ideas in this article to improve execution.

INTERACTIVE TOOL: Use this simulator to test the effectiveness of various change initiatives.

A brilliant strategy, blockbuster product, or breakthrough technology can put you on the competitive map, but only solid execution can keep you there. You have to be able to deliver on your intent. Unfortunately, the majority of companies aren’t very good at it, by their own admission. Over the past five years, we have invited many thousands of employees (about 25% of whom came from executive ranks) to complete an online assessment of their organizations’ capabilities, a process that’s generated a database of 125,000 profiles representing more than 1,000 companies, government agencies, and not-for-profits in over 50 countries. Employees at three out of every five companies rated their organization weak at execution—that is, when asked if they agreed with the statement “Important strategic and operational decisions are quickly translated into action,” the majority answered no.

Execution is the result of thousands of decisions made every day by employees acting according to the information they have and their own self-interest. In our work helping more than 250 companies learn to execute more effectively, we’ve identified four fundamental building blocks executives can use to influence those actions—clarifying decision rights, designing information flows, aligning motivators, and making changes to structure. (For simplicity’s sake we refer to them as decision rights, information, motivators, and structure.)

In efforts to improve performance, most organizations go right to structural measures because moving lines around the org chart seems the most obvious solution and the changes are visible and concrete. Such steps generally reap some short-term efficiencies quickly, but in so doing address only the symptoms of dysfunction, not its root causes. Several years later, companies usually end up in the same place they started. Structural change can and should be part of the path to improved execution, but it’s best to think of it as the capstone, not the cornerstone, of any organizational transformation. In fact, our research shows that actions having to do with decision rights and information are far more important—about twice as effective—as improvements made to the other two building blocks. (See the exhibit “What Matters Most to Strategy Execution.”)

What Matters Most to Strategy Execution

When a company fails to execute its strategy, the first thing managers often think to do is restructure. But our research shows that the fundamentals of good execution start with clarifying decision rights and making sure information flows where it needs to go. If you get those right, the correct structure and motivators often become obvious.

Take, for example, the case of a global consumer packaged-goods company that lurched down the reorganization path in the early 1990s. (We have altered identifying details in this and other cases that follow.) Disappointed with company performance, senior management did what most companies were doing at that time: They restructured. They eliminated some layers of management and broadened spans of control. Management-staffing costs quickly fell by 18%. Eight years later, however, it was déjà vu. The layers had crept back in, and spans of control had once again narrowed. In addressing only structure, management had attacked the visible symptoms of poor performance but not the underlying cause—how people made decisions and how they were held accountable.

This time, management looked beyond lines and boxes to the mechanics of how work got done. Instead of searching for ways to strip out costs, they focused on improving execution—and in the process discovered the true reasons for the performance shortfall. Managers didn’t have a clear sense of their respective roles and responsibilities. They did not intuitively understand which decisions were theirs to make. Moreover, the link between performance and rewards was weak. This was a company long on micromanaging and second-guessing, and short on accountability. Middle managers spent 40% of their time justifying and reporting upward or questioning the tactical decisions of their direct reports.

Armed with this understanding, the company designed a new management model that established who was accountable for what and made the connection between performance and reward. For instance, the norm at this company, not unusual in the industry, had been to promote people quickly, within 18 months to two years, before they had a chance to see their initiatives through. As a result, managers at every level kept doing their old jobs even after they had been promoted, peering over the shoulders of the direct reports who were now in charge of their projects and, all too frequently, taking over. Today, people stay in their positions longer so they can follow through on their own initiatives, and they’re still around when the fruits of their labors start to kick in. What’s more, results from those initiatives continue to count in their performance reviews for some time after they’ve been promoted, forcing managers to live with the expectations they’d set in their previous jobs. As a consequence, forecasting has become more accurate and reliable. These actions did yield a structure with fewer layers and greater spans of control, but that was a side effect, not the primary focus, of the changes.

The Elements of Strong Execution

Our conclusions arise out of decades of practical application and intensive research. Nearly five years ago, we and our colleagues set out to gather empirical data to identify the actions that were most effective in enabling an organization to implement strategy. What particular ways of restructuring, motivating, improving information flows, and clarifying decision rights mattered the most? We started by drawing up a list of 17 traits, each corresponding to one or more of the four building blocks we knew could enable effective execution—traits like the free flow of information across organizational boundaries or the degree to which senior leaders refrain from getting involved in operating decisions. With these factors in mind, we developed an online profiler that allows individuals to assess the execution capabilities of their organizations. Over the next four years or so, we collected data from many thousands of profiles, which in turn allowed us to more precisely calibrate the impact of each trait on an organization’s ability to execute. That allowed us to rank all 17 traits in order of their relative influence. (See the exhibit “The 17 Fundamental Traits of Organizational Effectiveness.)

Posted 12/23/2011

Ten Basic Responsibilities of Nonprofit Boards

By National Center for Nonprofit Boards

• Determine the Organization’s Mission and Purpose

• A statement of mission and purposes should articulate the organization’s goals, means, and primary constituents served. It is the board of directors’ responsibility to create the mission statement and review it periodically for accuracy and validity. Each individual board member should fully understand and support it.

• Select the Executive

• Boards must reach consensus on the chief executive’s job description and undertake a careful search process to find the most qualified individual for the position.

• Support the Executive and Review His or Her Performance

• The board should ensure that the chief executive has the moral and professional support he or she needs to further the goals of the organization. The chief executive, in partnership with the entire board, should decide upon a periodic evaluation of the chief executive’s performance.

• Ensure Effective Organizational Planning

• As stewards of an organization, boards must actively participate with the staff in an overall planning process and assist in implementing the plan’s goals.

• Ensure Adequate Resources

• One of the board’s foremost responsibilities is to provide adequate resources for the organization to fulfill its mission. The board should work in partnership with the chief executive and development staff, if any, to raise funds from the community.

• Manage Resources Effectively

• The board, in order to remain accountable to its donors, the public, and to safeguard its tax-exempt status, must assist in developing the annual budget and ensuring that proper financial controls are in place.

• Determine and Monitor the Organization’s Programs and Services

• The board’s role in this area is to determine which programs are the most consistent with an organization’s mission, and to monitor their effectiveness.

• Enhance the Organization’s Public Image

• An organization’s primary link to the community, including constituents, the public, and the media, is the board. Clearly articulating the organization’s mission, accomplishments, and goals to the public, as well as garnering support from important members of the community, are important elements of a comprehensive public relations strategy.

• Serve as a Court of Appeal

• Except in the direst of circumstances, the board must serve as a court of appeal in personnel matters. Solid personnel policies, grievance procedures, and a clear delegation to the chief executive of hiring and managing employees will reduce the risk of conflict.

• Assess Its Own Performance

• By evaluating its performance in fulfilling its responsibilities, the board can recognize its achievements and reach consensus on which areas need to be improved. Discussing the results of a self-assessment at a retreat can assist in developing a long-range plan.

(From the National Center for Nonprofit Boards “Ten Basic Responsibilities of Nonprofit Boards”, 1988.)

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How to Use the Guiding Principles & Best Practices

The voices and experience of our partners help ensure this document remains relevant. We encourage you to continue to share your thoughts and suggestions as you seek to put these practices to work in your organizations.

The practices are organized around nine core principles:
• Mission & Planning
• Governance
• Accountability, Transparency & Legal Compliance
• Operational Planning and Evaluation
• Financial Management and Stewardship
• Human Resources
• Fundraising
• Marketing & Communications
• Information Management

Adherence to these principles and practices is not mandatory. However, SCANPO believes that all well-run organizations should adopt them. At the same time, it is recognized that nonprofits are diverse and that they evolve differently over time. Nonprofit board members and staffers are encouraged to use the document as a guide to assess their current levels of practice, with an eye toward identifying opportunities to improve the effectiveness of their organizations.

SCANPO acknowledges that many nonprofits have taken steps toward excellence by obtaining accreditation or certification as affiliates of parent organizations that have established their own performance standards. The Guiding Principles & Best Practices are seen as complimentary to the work of these other bodies. In fact, some of those organizations’ standards helped inform the work of the task force. In addition, organizations whose boards are operating under Policy Governance®, also known as Carver Governance, may differ slightly in their definition of “best practices”. For these organizations, a brief supplement to the Guiding Principles & Best Practices is available from SCANPO upon request.

Mission & Planning

A nonprofit operates for a clearly defined mission that flows from its vision of the community it seeks to build and the role it will plan in achieving that vision. A set of values guides both that vision and how the organization believes it will go about achieving its mission. Vision, values and mission drive fundamental decisions and planning.

Best Practices

• The board of directors has developed vision, values and mission statements that define the organization’s reason for being and guide all decision-making. These statements are sufficiently defined to effectively guide all activities of the organization.
• The board, in concert with key staff, sets direction and strategic targets to be achieved, and relies on input from stakeholders
• The board regularly assesses vision, values and mission, to determine ongoing relevancy, address evolving needs and consider societal and community changes.
• The organization’s vision, values, mission and strategic direction are not created and adopted by the board in a vacuum. The board seeks and relies on input from all of the organization’s stakeholders, including staff, clients, members, supporters, partners and the community at large.
• A strategic analysis is conducted on a regular basis resulting in a body of quality information from both internal and external sources.
• The board anticipates the future by asking “what if” and considers how current issues and developments may impact the organization’s activities in the future.
• The board sets aside sufficient time at every board meeting to examine strategic direction and make needed adjustments.
• The organization consults with its counter parts in the community to determine the need for services and the best use of community resources.

Governance

The responsibility for governing a nonprofit lies with its board – a decision making body that provides overall leadership and policy direction. The board ensures sound stewardship of nonprofit assets and resources. Board members are held to the high legal and ethical standards to ensure that their loyalties lie entirely with the nonprofit, that they are diligent in carrying out their duties, and that they act in good faith to advance the nonprofit’s mission.

Best Practices

• The board functions at a level of policy and strategy to establish direction consistent with the vision, values and mission of the nonprofit.
• The organization complies with governing documents, including by-laws and articles of incorporation. The board reviews these documents regularly and updates them as needed.
• The board ensures that the nonprofit follows its policies and strategies through evaluation of the chief executive, the board itself and the nonprofit as a whole. That evaluation includes ongoing review of financial programmatic performance and leads to changes in policy or strategy as needed to advance its mission.
• In carrying out its duties, the board functions corporately, as a body. The whole board – and not individual members – establishes policy, determines strategies and gives direction to the nonprofit. The board through designated spokespersons speaks with a single voice on matters affective the nonprofit.
• Board members diligently carry out their duties by:
  a. regularly attending board and committee meetings,
  b. reviewing, understanding and independently evaluating materials presented to the board, and
  c. asking for the information needed to carry out their job.
• The board has in place and enforces policies and processes to ensure the highest ethical standards.
• Board members, staff and volunteers act in the best interest of the nonprofit. They do not further their own personal interests. Board members question wrongdoing.
• Board members are recruited, oriented and trained through a deliberate process that ensures that members have the skills and knowledge to carry out their duties and a clear understanding of:
  a. the nonprofit’s vision, values and mission.
  b. board member’s roles, both collectively and individually, in carrying out that mission,
  c. the board’s responsibilities and duties, and
  d. best practices in governing and leading nonprofits.
• The board includes a diversity of cultures, experiences, skills and perspectives that reflect the community that the nonprofit serves.
• The board adopts and uses processes for decision making that encourage full and vigorous discussion from diverse viewpoints and problem solving.
• The responsibilities and authority of the board and any staff are clearly outlined, consistent with the board’s legal duties and the vision, values and mission of the nonprofit.
• The loyalty of board members to the mission of the organization is greater than their loyalty to the chief executive.
• The board hires the chief executive, sets and reviews compensation, and holds him or her accountable for the organization’s performance.
• Board members serve as ambassadors, representing and advocating for the nonprofit, as well as hearing and seeing the needs for and effect of the nonprofit in the community it serves.
• Board members make personal financial contributions, commensurate with their ability, and help raise funds for the nonprofit.

Accountability, Transparency & Legal Compliance

Nonprofits, by their nature, exist to serve the public good. They have a legal and ethical obligation to conduct their activities in a way that ensures their accountability and is transparent, or clearly evident, to the public. Communication to constituents and the public about the mission, activities and decision-making is open, honest and ongoing. Information that is easily accessible promotes external visibility, public understanding and trust.

Best Practices

• Board and staff know about and adhere to all applicable federal, state and local laws, regulations and fiduciary responsibilities. The organization conducts a periodic internal review of compliance and provides a summary of results to the board and staff.
• The organization has adopted a code of ethics and makes it publicly available.
• The organization has a formal conflict of interest policy that meets minimum IRS standards and guidelines and ensures board and staff members adhere to this policy in all dealings.
• A “whistleblower” policy and system are in place that allows individuals to report misconduct confidentially and without negative consequence for doing so.
• The organization has a policy to respect and protect the confidentiality and privacy rights of clients, members, grantees, employees, donors, volunteers, evaluation participants and others in the organization, consistent with applicable law. It does not release or disclose information about those individuals or organizations without their specific knowledge, understanding and permission, except as required by law or appropriate standards of organizational transparency.
• The organization prepares and makes available to the public annually a report that includes information about the mission, programs, basic financial data, board and staff members and volunteers.

Operational Planning and Evaluation

Nonprofits development, implement and monitor operational plans based on the vision, values, mission and strategic direction created by the board of directors and key staff. Operational plans ensure accountability and provide the foundation for an evaluation of the organization’s activities. Nonprofits understand their essential responsibility to assess the impact of their efforts and act upon the information.

Best Practices

• Working from the board’s strategic direction and guided by the organization’s vision, values and mission, the staff develops and works from an operational plan that defines how the organization will achieve its goals and objectives within an established timeframe and budget.
• The operational plan is dynamic. The organization modifies the plan in response to environmental changes and to ongoing evaluation of its successes and failures.
• The organization develops a budget that reflects the operational plan and ensures acquisition and allocation of adequate resources to accomplish the plan. The annual budget process includes steps to ensure that the budget is consistent with the organization’s vision, values, mission and strategic direction.
• The nonprofit builds evaluation into its operational plan. It includes clearly measurable outcomes, goals, objectives, timelines and key indicators, and defines specific activities and responsibilities for board, staff and volunteers. The operational plan serves as a management tool for measuring activities, evaluating outcomes, and adjusting plans and strategies.
• The nonprofit relies on evaluations to identify its strengths and successes as well as its weaknesses and failures. The organization uses evaluation findings continuously to improve program operations and guide the strategic planning process.
• Organizational stakeholders, including clients, members and constituents, are involved in evaluation activities. Evaluation includes measures of the satisfaction of service participants and constituents, as well as program efficiency, effectiveness and outcomes.
• The organization has defined procedures in place for evaluating its programs and outcomes in relation to its vision, values and mission. It uses performance measures that are realistic and appropriate to its size and scope and to its constituents. As appropriate, the evaluation makes use of both quantitative and qualitative data.
• The organization has a complaint policy and process for clients and constituents, which are a critical evaluation tool for determining how customers feel about what they do and how they do it.
• The organization seeks professional guidance in planning and executing evaluation processes as appropriate.
• The organization communicates evaluation results to a broad range of groups, including board, staff, constituents, clients, funders and the public.
• The organization, as a routine part of its work, anticipates and plans for disasters, disruptions and transitions. When unanticipated events occur, the board is fully informed and participates in determining a plan to proceed.

Financial Management and Stewardship

Nonprofits are knowledgeable and responsible stewards in managing their financial resources. This requires effective annual budgeting practices, compliance with legally mandated financial requirements, adherence to sound accounting principles that ensure fiscal responsibility and public trust, effective internal controls, effective and efficient use of resources, and clear policies and practices to monitor the sources and uses of funds.

Best Practices

• The organization has established a system of internal controls that can produce accurate and reliable financial statements on a regular basis for review by the board and that can deter fraud. The extent of internal controls is based upon the size and complexity of the organization.
• The organization secures an external financial audit by an independent Certified Public Accountant (CPA). Small organizations, depending upon their size and complexity and consistent with the advice of a CPA or external accounting professional, may choose an annual review of the financial statements or take such other steps to ensure that the organization’s financial results are reported accurately and in a way that is comparable with similar organizations and that appropriate financial procedures are in place.
• The organization has established an audit committee, composed of directors who are not compensated by the organization and at least one financial professional. For organizations whose size or structure makes an audit infeasible, the audit committee reviews or ensures a review so that the board can be assured of fairly reported financial statements.
• The organization operates in accordance with an annual budget approved by the board or under financial guidelines set in place beforehand by the board.
• The board includes members with financial expertise appropriate to the size and complexity of the organization, and when appropriate, seeks outside professional advice.
• The organization operates in accordance with a board-approved investment policy that ensures reasonable returns balanced with investment prudence. The investment policy is customized to the particular goals and needs of the organization and, at a minimum, reviewed on an annual basis.
• The organization adheres to a risk management plan and regularly considers the need for insurance coverage, taking into account the nature and scope of the nonprofit’s activities and its resources.
• The IRS Federal Form 990 is reviewed with the board each year to ensure their familiarity with the content.

Human Resources

People are a nonprofit’s most essential assets. Effective leadership, adequate resources and capable management of these assets enable nonprofits to accomplish their goals. Fair and equitable practices, including adherence to applicable local, state and federal employment laws, ensure the attraction and retention of qualified staff members and volunteers, and support a healthy work environment.

Best Practices

• A statement of the organization’s values is provided to all employees and volunteers and is used as a tool for creating a supportive work environment that fosters mutual respect and trust.
• Employees and volunteers are provided with written policies and procedures that describe expectations for them as well as obligations of the employees, and that have been approved by the board and reviewed by a qualified attorney.
• Staff members and volunteers are provided with opportunities for personal growth and professional development.
• The performance of staff members and volunteers is evaluated annually.
• Staff members and volunteers reflect the diversity of the communities the nonprofit serves.
• Staff members and volunteers possess the necessary skills and knowledge to perform their job.
• Staff members receive market-based and livable compensation, adequate benefits, and the opportunity to contribute financially to retirement plans.
• Current, written position descriptions are provided for staff members and volunteers.
• A clear conflict of interest policy has been established for employees that includes disclosure of relationships, nepotism and interested party transactions.
• Specific grievance procedures have been adopted for personnel that include protections for reports of violations or organizational policy or applicable laws.
• Organizational transition plans, including succession plans, have been established to manage changes in leadership.

Fundraising

As the intermediary between donors and beneficiaries, nonprofits serve as the vehicle through which philanthropy occurs. They have an ethical and fiduciary obligation to ensure funds are handled properly to carry out the organization’s mission and the intentions of donors. Fundraising adheres to high standards of practice, governed by clear policies and open communication with donors and other stakeholders.

Best Practices

• The organization has established policies to govern the acceptance and use of charitable gifts that are in compliance with applicable laws and regulations consistent with the organization’s mission.
• A comprehensive fundraising plan of action has been developed that reflects diverse revenue sources when appropriate.
• Clear, valid, compelling bases have been established to attract charitable funds.
• The organization has secured board consensus of fundraising goals, objects and timelines, with accountability tied to the board committee charged with raising funds.
• The organization communicates regularly with donors regarding the nonprofit’s activities and makes information available through varied means and media.
• The organization adheres to the known intentions and restrictions of donors regarding the use of donated funds and property.
• The organization respects the privacy of donors and safeguards the confidentiality of donor information as instructed by the donor.
• Fundraising communications contain clear, accurate and honest information about the organization, its activities, and the intended use of funds.
• A donor stewardship program, with staff accountability, has been established for each level of donor.
• Volunteer fundraising leadership is recruited commensurate with the scope of the fundraising project.
• Compensation for fundraising personnel and contractors is on an ethical basis that puts the interests of the nonprofit first. The organization does not compensate personnel on a percentage or commission basis.

Marketing & Communications

Nonprofits engage in marketing to communicate their vision, values, mission and progress of social change to both their internal and external constituents. They adhere to the highest ethical and professional marketing standards. Effective communications and sound marketing practices build trust through accountability and enhanced relationships. Investing in a clearly defined marketing and communications plan raises public consciousness, influencing decision making, increased funding and sustainability of the organization and contributes to mission fulfillment.

Best Practices

• The organization establishes clear, written marketing and communication standards, and includes them in orientation for all employees and volunteers.
• The organization intentionally strives to ensure consistency between its actions and its marketing and communications.
• The nonprofit has defined its key audiences and understands their needs and desires as they relate to the organization’s vision, values and mission. Audiences may include clients, funders, members, employees, volunteers, board members, media, legislators and the public.
• To understand the marketing environment, the nonprofit conducts research and completes a realistic situational and environmental analysis before developing and implementing a marketing and communications plan.
• The organization develops a marketing and communications plan that reflects realistic and measurable goals, objectives, a budget and timeline. The plan supports the organization’s overall strategic direction and demonstrates accountability to constituents and the public.
• Board members endorse and are committed to implementing the organization’s marketing and communications plan, and carry out their role as organizational advocates.
• The organization develops its marketing, communications and design efforts with the advice of individuals with marketing skills and experience. The organization builds internal capacity for marketing and communications.
• The organization regularly assesses the marketing and communications plan, evaluates results, and makes necessary changes to ensure achievement of goals, sustainability, and fulfillment of the mission.

Information Management

Nonprofits have extensive responsibilities for managing information in a way that ensures confidentiality, accuracy, timeliness, integrity, security and legal compliance. Adequate and current technology is critical for managing information and achieving the organization’s mission.

Best Practices

• Systems are in place to provide timely, accurate and relevant information.
• The organization has created and regularly updates a plan for investing in and ensuring sufficient resources for technology.
• The organization has established policies that govern the use of information and technology systems, including security, data storage, appropriate use, access rights, maintenance and back-up.
• The organization has established policies to ensure confidentiality of information and privacy, with appropriate procedures to limit access to data.
• Staff, board members and volunteers have the skills they need to use technology required for their work.
• The organization has a written mandatory retention and periodic destruction policy, which includes guidelines for electronic files and voicemail.
• Policies and practices are in place to identify and protect the organization’s intellectual property rights and to ensure the rights of other organizations are not violated.
• The organization maintains and implements plans to deal with disasters and transitions.
• The organization seeks to ensure that any web-based information about the nonprofit is accurate.