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Team Welter

Mar 18
0

Leading During Crisis: The Nonprofit Response to the COVID-19 Outbreak

By | Uncategorized | No Comments

 

The Nonprofit Association of Oregon sent an email out today to all members announcing they would cease in-person activities to comply with government and health authorities’ requests for social distancing in an effort to halt the spread of coronavirus, also known as COVID-19.

Their email listed several key points for nonprofit leaders to keep in mind during this time of crisis. With Washington state at the epicenter of the United States’ epidemic, and many nonprofits struggling to meet the growing demand for their services, it is imperative that nonprofits leaders lead by example, helping rather than hindering the efforts of our state and national leaders to combat the disease.

The following 9 tips for leaders can help you lead by example during this crisis.

Some of these points are inspired by Marian Saltzman’s article in Forbes and others are derived from our own experience.

Tips for Leading a Nonprofit During a Crisis

  1. Pain is unavoidable: Furloughs, pay cuts – consider what may happen. You may not be able to soften the blow, but you can deal compassionately with others when addressing these issues with your team.
  2. Allow working from home: Even if your company doesn’t currently allow employees to work from home, many in accounting, finance and marketing may be able to telework.
  3. Avoid spreading rumors: Encourage staff to utilize authoritative resources such as the CDC’s website on COVID-19 for updates. Remind your social media team and anyone who works with the public to refrain from commenting on the topic.
  4. Designate a crisis communication person. The director or public relations spokesperson should be coached on what to say and how to say it during this event. Avoid speculation.
  5. Speak positively but cautiously: No one knows when this crisis will end. It could be weeks or months before activities return to pre-COVID-19 normal. Remain positive and encouraging but refrain from giving false hope to people.
  6. Foster connections: Social distancing means everyone remains at home, but this also means we lose our connections to one another. It’s up to you as the leader of your organization to foster connections. Call employees and check in on them. Set up Slack, Skype or other instant messenger channels and use Zoom or another video conferencing system to keep everyone connected. Make sure that even if people are working from their homes, they still feel like they are still part of a team.
  7. Remain skeptical: During times of crisis, the mind responds to every perceived sign of danger, making some people prone to believing rumors and panicking at false information. Stay vigilant for this type of behavior. Remind everyone to remain skeptical of news sources especially social media, which adds fuel to the fire when well-intentioned people spread what they think is helpful information.
  8. Remember volunteers: Volunteers may feel disconnected during this time if they’re sent home abruptly. Check in with them too, and set up volunteer channels on instant messenger. You may not use them as frequently as you use the employee channels, but it’s a good way to remain in touch with everyone.
  9. Provide resources to stay healthy: For those nonprofits who absolutely cannot shut down entirely, provide support and assistance to those who must work. Put hand soap, hand sanitizers, and disposable paper towels near every sink. Sanitize hard surfaces with a bleach-based cleaner or another disinfectant recommended by the CDC. Ask employees to work six feet apart or more, the recommended distance for social distancing from the CDC. Bear in mind that if you work with the public, additional measures might need to be in place to protect the health and well-being of employees. Contact your local health authority or visit their website for specific guidance.

And, by all means, stay at home aside from necessary trips to the grocery store, gas station, or pharmacy.  Although you may not be among those at high risk for COVID-19, everyone is a risk of becoming a carrier and infecting others. We must unite during this time of national turmoil.

“We must hang together,” to quote Benjamin Franklin, or “we will assuredly hang separately.”

Welter Consulting can be reached by phone (206-605-3113) or through our website.

Mar 17
0

Technology Trends to Make Outcomes Measurement Easier

By | Technology | No Comments

“For-profit organizations report income; nonprofits report outcomes.”

This quote, attributed to Peter Fortenbaugh, ED Boys and Girls Club of Peninsula, sums up a perfect response to the claim that nonprofits should act more like for-profits. By their very nature, nonprofits cannot act the same way. They must report on the outcomes of their work. Reporting profits doesn’t matter as much as what they’ve achieved. To do so, nonprofits need to measure and track results.

But how do you go about measuring outcomes and tracking dollars to outcomes?

New technology trends in the world of nonprofits are shaping both how nonprofits track their work and how they measure outcomes. Grantors, funders, and donors demand greater transparency and accountability from the nonprofits with which they work. Tracking and sharing data is one step towards transparency; measuring outcomes is a step towards accountability.

What Is Outcome Measurement?

Outcome measurement in the nonprofit environment measures the effect a specific program has on the participants in that program. It is an approach that measures the social impact of a nonprofit’s work. Unlike for profits which judge progress by profits, nonprofits judge their progress by the impact of their work. Nonprofits may seek to have a positive margin at the end of their fiscal year but margin isn’t the goal of their work. Rather, doing good with the money they have, no matter how they define good, is the goal. Outcomes measurement takes into account this unique difference and focuses on the effect of the nonprofit’s work.

Technology Trends that Support Nonprofit Work and Outcomes Measurement

Several technology trends are likely to help nonprofits track dollars to outcomes. These include:

  1. Unified systems: When systems are unified or integrated, the data each contains may be shared among them. By having a unified system in place, nonprofits can more easily apportion funding towards specific programs and outcomes. They can ensure that budgets apportioned for special projects are spent on that project. More importantly, unified systems make it easy to run reports for donors, grant organizations, and other stakeholders. It takes just seconds to click on a report in a unified system and requires no manual data entry to run the appropriate reports to showcase program outcomes.
  2. Measuring infrastructure costs: By measuring the true cost of infrastructure, the costs can be deducted from program costs, thus aligning the true program costs with outcome measurement. Systems and programs to manage infrastructure costs, tied to accounting and finance programs, help nonprofits measure costs and outcomes accurately.
  3. Donating technology: Technology companies, seeking to make a difference, are donating to nonprofits at unprecedented rates. Pro bono services and equipment donated to nonprofits, but especially to traditionally under-served communities, is a growing trend.

Building a Smart System to Measure Outcomes

As you consider outcome measurement, review your current technology uses and needs. Consider working with a nonprofit consultant to evaluate what your nonprofit might need to better measure outcomes.

There’s a noticeable link between transparency within nonprofits and their ability to generation donations and secure grants. A nonprofit that is able to provide clear, consistent data demonstrating success in achieving most or all of their goals and delineating how their funding was used, is much more likely to get grant funding renewed. Reports to the public that showcase results and money spent to achieve such results also encourage donation. By integrating and aligning software and systems, you’ll be able to gather a complete picture of your organization’s finances, achievements, and outcomes more easily, and provide them to a public hungry for honesty and transparency.

Welter Consulting

Welter Consulting bridges people and technology together for effective solutions for nonprofit organizations. We offer software and services that can help you with your accounting needs. Please contact Welter Consulting at 206-605-3113 for more information.

Mar 10
0

Put Dollars Where They Count When It Comes to Software Subscription Fees

By | Fundraising Software | No Comments

Software subscription fees can sneak up on you. What seems like a small purchase at one time adds up as monthly charges continue to ding your credit card or bank account. Those recurring charges can slowly and insidiously drain your resources and should be avoided, especially if you don’t use the software frequently,

Review Software Needs Quarterly

It’s a good idea to review software charges quarterly and check with your staff to see who is using which software package. While it may be clear to all that an annual subscription to Microsoft Office is necessary for business, you may not know what other software is being used. Have a team member review subscriptions to ensure that you don’t accidentally cut off something that’s needed by a department or group.

Fundraising Software: a Smart Investment

One area where you won’t want to skimp is fundraising software. Although fundraising software came with a hefty price tag years ago, there are several platforms available that offer plenty of functionality at a low cost.

What should you look for when shopping for fundraising software? To get the most for your money, look for the following features:

  • No contract: Contracts work in favor of the software owner, not the end user. Even though they may look good on the surface by locking in a rate or special features, your organization’s needs may change. Instead of long-term contracts, look for cancel at any time or at least a monthly contract that enables you to leave without cost with notice.
  • No or low fees: Some software offers a free trial and free or low cost fees for nonprofits. Others enable nonprofits to have up to a certain number of users before fees are applied. Read the fine print and look for software with low or no transaction fees.
  • Payment processing with standard rates: Review the fees the system charges for payment processing and compare them to standard rates. Make sure that the software vendor isn’t overcharging for payment processing to make up for giving away the software subscription ‘free.’

Best Features in Fundraising Software

Not all fundraising software is created equal. Each offers unique features and benefits. The right software for your organization is the one that solves the problems your team faces when it comes to managing fundraising activities.

When reviewing fundraising software, look for the following features:

  • Easy integration: New software such as fundraising software should integrate easily with your existing software. If it doesn’t, you’ll end up spending precious resources to make it work. For example, manual data entry gets tiresome quickly if you have to import everything from the fundraising system into the accounting system by hand. Check to make sure that any new fundraising software under consideration integrates easily with your existing platform. If it doesn’t, what might you need to do to make it work? What are the costs, opportunities, and benefits of using it over another platform that does integrate easily?
  • Customization: Can you customize messages to constituent groups? This is important because customizing messages can increase donation and gift size. The more you can speak directly to the interests and needs of groups on your list, the greater the potential opportunity. “Canned” responses that cannot be customized limit your fundraising abilities.
  • Tracking potential: Does the software enable you to track potential donations or just incoming ones? Those that have layered tracking, giving you different views of where potential donations stand in the pipeline, offer greater flexibility.
  • Planning capacity: Lastly, does the fundraising software allow for planning events and donations?

Not all software is needed or needed all the time. Fundraising software contributes directly to an organization’s cashflow and, as such, should be considered an important technology to keep. That doesn’t mean that you can afford to waste money on it, however. Reviewing your current package and considering a new one should be a routine step to maintaining the right fundraising software for your organization’s needs.

Welter Consulting

Welter Consulting bridges people and technology together for effective solutions for nonprofit organizations. We offer software and services that can help you with your accounting needs. Please contact Welter Consulting at 206-605-3113 for more information.

Mar 03
0

Do You Have D & O? What You Need to Know About Directors and Officers Liability Insurance

By | Insurance | No Comments

Do you have D & O? That’s directors and officers liability insurance, not some unpleasant medical condition. In all seriousness, D & O is insurance that nonprofits know they need but rarely understand.

There’s good reason for that. According to some insurance industry experts, many D & O policies require dozens of pages, sometimes up to 90 pages, to explain what they cover and what they don’t cover.

While we can’t delve into what your nonprofit’s specific D & O policy covers, we can review the basics with you here and provide you with some information on what D & O insurance is, what it covers, why you need it, and how to ensure you have adequate coverage for your nonprofit.

What Is Directors and Officers Liability Insurance?

Nonprofits typically have both directors and officers leading and guiding the organization. Those in leadership positions should have the knowledge, experience, skills to make sound judgement calls—but that isn’t always the case. And, of course, even the smartest and best people make mistakes.

The litigious environment in which companies, including nonprofits, operate today opens them up to lawsuits in which claims of negligence can lead to expensive judgments. Board members and officers may be unaware of all of the laws governing their conduct and how to avoid mistakes. The results can be devastating both to them personally and to the nonprofits they serve.

What Does It Cover?

There’s no one right answer to this question. Some policies cover financial impropriety while others cover only negligence. Each policy covers different things and policies can be customized for a specific nonprofit. For example, a nonprofit providing medical services may have different coverage than a food panty or a homeless shelter, based upon the risks taken by the officers and directors when making decisions.

Generally speaking, most directors and officers liability policies cover:

  • The personal assets of directors and officers and their spouses if they are sued for actions taken during the course of their duties
  • Legal fees, settlements, and other costs associated with suits in which directors and officers are involved

Directors and officers may be held responsible for:

  • Misuse of company funds or breach of financial duty that leads to losses or bankruptcy
  • Misrepresentation of company assets
  • Fraud
  • Failure to comply with workplace laws
  • Intellectual property theft
  • Improper actions or lack of corporate governance

Does Your Nonprofit Have Enough Coverage?

Most nonprofits do not maintain adequate coverage. Lawsuits have been increasing over the past several years, especially class action suits, which can leave an organization vulnerable.

If your organization failed to conduct a thorough due diligence on its new board members, officers, and directors, it may already have a potential problem on its hand. Many nonprofits rush to fill vacant board seats and struggle to find willing candidates. Those they do find may lack the experience to avoid costly errors.

It is a smart idea to meet annually with your insurance broker to discuss your current coverage. Your broker can advise you on whether or not increasing coverage is warranted and what the potential risks might be that you need to protect against for your nonprofit. Each organization is different, and each requires varying levels of coverage.

Custom Coverage Is Available

Lastly, know that custom coverage is also available. In fact, many brokers recommend custom coverage so that the nonprofit is adequately protected against its’ unique risks. Since there are so many variables that lead to lawsuits, a skilled broker can help you navigate the potential minefield of risk and shield you from many possible issues.

Director and officer liability insurance is a must-have for your nonprofit leaders. It’s imperative that you have enough coverage so that they can feel confident doing their job. It’s well worth making a phone call to your insurance agent or broker to check on the details of your current policy.

Welter Consulting

Welter Consulting bridges people and technology together for effective solutions for nonprofit organizations. We offer software and services that can help you with your accounting needs. Please contact Welter Consulting at 206-605-3113 for more information.