Organizational analysis could spur immediate opportunity

Have you ever conducted a third-party review of the non-profit organization you manage? If you’re a board member, have you ever seen an organizational review of the charitable organization?

You can find suitable ways to review your charity’s financial operations through internet searches. We recommend you take a look at those. We also suggest you consider a unique analytic system we created. It’s called HealthCheck. It closely resembles your own visit to your primary physician, who will conduct a review of your health and provide feedback and make suggestions.

 

HealthCheck is designed to provide research and organizational analysis to help organizations make strategic decisions…and help donors make wise charitable giving decisions.

Benefit to charity leaders…

Board and staff members of nearly every non-profit organization want organizational growth…all want money. Not every organization can hire new staff or add a consultant, but they want expertise and leverage to attract new supporters and help build confidence and relationships with existing donors and volunteers. We created HealthCheck to meet these needs in an affordable and hands-on manner. By doing so, we form an alliance with non-profit leaders, where we essentially work alongside, determining and implementing ways to strengthen the organization.

Benefit to donors…

When donors consider non-profit organizations for their contributions, a number of factors come into play, including the donor’s relationship, belief in the mission, and geographical location. Many times, this isn’t enough information for a prospective donor to render a decision. We created HealthCheck to deliver existing and prospective donors with a resource they can easily locate. Knowledge derived from our 40+ years of non-profit and corporate leadership experience were used to design a research and best practices tool, which gives donors all the information they need and in five key organizational strength indicators.
  

HealthCheck analyzes specific strength indicators, including:

Data & Efficiency – Analyzing IRS Forms 990 to evaluate a non-profit organization’s financial performance in key performance categories. Upon analyzing performance categories, we assign a score as it relates to the organization’s efficiency, capacity, and overall financial health.

Finance & Fund Development – Non-profits have an obligation to act as responsible stewards in managing their financial resources. They must comply with all legal financial requirements and adhere to sound accounting principles that produce reliable financial information, ensure fiscal responsibility and build public trust. In addition, non-profits act as the intermediary between donors and beneficiaries and have an ethical obligation to ensure proper handling of funds to carry out their missions.

Governance – A non-profit’s leadership, represented by its staff and board of directors is responsible for defining the organization’s mission and for providing overall leadership and strategic direction to the organization. Each non-profit board should: ensure that the organization has adequate resources to carry out its mission and provide direction for the executive director and key staff; and evaluate its own effectiveness as a governing body and as representatives of the community in upholding the public interest served by the organization.

Human Resources – The ability of an organization to make effective use of the energy, time and talents of its employees and volunteers is essential to accomplish the organization’s mission. Non-profit organizations should place a high priority on exercising fair and equitable practices that attract and retain qualified volunteers and employees. Nonprofits have an obligation to adhere to all applicable employment laws and to provide a safe and productive work environment.

Public Information – Non-profits that provide information to prospective donors and other constituents promote informed and responsible philanthropy. Donors are better able to make decisions when they can learn a nonprofit’s purpose, who governs it, how it manages its financial resources, whom the nonprofit serves, and what progress it has made toward achieving its mission.

   

Here are the outcomes…

After a very small investment ($45), the process begins with executive staff (or a board exec) honestly responding to sets of specific questions. The process can be relatively short. It will take about 20 minutes to answer online-based questions, then 24 hours for NPcatalyst to conduct research and prepare its findings.

When completed, the organization will be presented with a charity rating score, much like a grade earned on a test. Scores will be earned in the various areas of analysis, accompanied by an overall score. Organizations which seek greater detail may purchase a “best practices guide” to received recommended action items to improve each area of operation. The guide is intended to help the organization raise the rating score to 100.

Donors and prospective contributors enjoy seeing rating scores to accompany the research their conducting on charitable organizations, but also recognize the organization’s desire to diagnose various areas of operation.

 

Click here to indicate your interest to learn more about the unique HealthCheck system or to order the analysis.
 

 

 

Things to consider when making donations

Making donations to charitable organizations can be a very strategic, methodical, and evaluative process. For many, the donations are more than mere “gifts”, they’re actually investments in causes, organizations, needs, and beneficiaries. A key component of the donor-decision process is quality information. When working with our clients on their giving strategies, we advise an analysis of organizations in five functional areas of charitable operations.

Data & Efficiency

Be sure to look at the organization’s finances to determine such things as proper allocation of funds between administration, programs, fundraising, etc. We recommend using Guidestar to review the organization’s 990 provide sufficient data for an initial screening, enabling donors with a good look at financial performance.

Finance & Fund Development

Non-profits have an obligation to act as responsible stewards in managing their financial resources. This includes compliance with financial requirements, sound accounting principles, and fiscal responsibilities. Since non-profits act as the intermediary between donors and beneficiaries, they have an ethical obligation to ensure proper handling of funds to carry out their missions.

Governance

A non-profit’s leadership, represented by its staff and board of directors is responsible for defining the organization’s mission and for providing overall leadership and strategic direction to the organization. Strong boards strive to ensure that their organizations have adequate resources, provide direction for the executive director and key staff and, evaluate their own effectiveness as governing bodies.

Human Resources

The ability of an organization to make effective use of the energy, time and talents of its employees and volunteers is essential to accomplish the organization’s mission. Exercising fair and equitable practices that attract and retain qualified volunteers and employees is just one best practice. Nonprofits have an obligation to adhere to all applicable employment laws and to provide a safe and productive work environment.

Public Information

Non-profits that provide information to prospective donors and other constituents promote informed and responsible philanthropy. This works to their advantage as donors are better able to make decisions when they can learn a nonprofit’s purpose, who governs it, how it manages its financial resources, whom the nonprofit serves, and what progress it has made toward achieving its mission.

Ideally, donors placing their “investments” with organizations are doing so through strong existing relationships. However, whether donors are already engaged with these organizations or have yet to meet their leaders, taking an in-depth look at these five areas will help solidify the receipt, usage, distribution, and recognition of financial contributions.

 

 

Offer for free board assessment ends soon

On the first of this month, we issued an offer to conduct a complimentary board assessment for interested non-profit organizations. There are no restrictions, such as size, location, or sector of the organization. Our desire was to celebrate the start of the new fiscal period with something of benefit to organizations, by showcasing our BoardCheck service.

The deadline to apply is July 15th.

BoardCheck targets a non-profit organization’s growth through the voices of its board leaders. This proven instrument takes a snapshot of the organization’s makeup and activity, thus identifying strengths, weaknesses, and opportunities.

Conducting annual board evaluations is an ideal solution to strengthening charitable boards and their organizations. For some organizations, they can be difficult to plan, cumbersome to coordinate, and last minute activities. This new survey tool eases the burden and, more importantly, delivers a clear understanding of board leadership.

BoardCheck is delivered in three specific solutions:

  • Raw Survey Results – Your organization will receive a basic summary of survey responses. –  Offer — FREE (typically $129)
  • Results Presentation – Your organization will receive a presentation complete with statistical and graphical results, prepared in a retreat/meeting-ready format.  –  Offer — 50% off (typically $295)
  • Presentation with Analysis – Your organization will receive the presentation-ready report, complete with an analysis of survey results and recommendations –  Offer — 50% off (typically $495)

 

CLICK HERE if you’re interested in taking advantage of the offer or receiving more information. The offer ends July 15th.

HealthCheck rating tool gathering attention

 

The charity rating and best practice tool, created by NPcatalyst this past January, is becoming increasingly popular with non-profit donors, volunteers, and job-seekers.

The tool was designed to address two distinct, yet critical needs. First, it’s designed to rate charities in five management and performance areas, giving organizations an objective instrument from which to guide their goals and strategies. Second, it’s used as a research mechanism, providing donors with “insider” information, which they can’t immediately or easily find online or through non-profit manuals.

“Launching a new product in a tough industry, especially a product which we created, has been both exciting and difficult,” says Pete Parker, NPcatalyst’s managing partner. It’s taken a considerable effort to educate non-profit organizations as well as business, community, and philanthropic leaders to adapt this innovative tool. “I wanted to create a tool which gives donors a true and in-depth view of non-profit organizations, enabling them to make thought out and well-researched donation decisions.”

The HealthCheck tool analyzes and applies a rating score to organizations in five different operational areas. NPcatalyst publicizes the scores on profile pages create for each charity. “To promote the HealthCheck tool, I’ve been screening the financial efficiencies for organizations located in the three locations where we’re seeing the heaviest traffic of donors and leaders,” says Parker. To date, 200 organizations have been screened and featured on the NPcatalyst website.

As a result of social media marketing, professional networking, and personal connections, visits to the NPcatalyst website have tripled in recent months. “What’s exciting is that our non-profit profile pages are seeing the greatest growth…and we put very little effort into marketing the pages”, according to Parker. The profile page of the first HealthCheck client, Sierra Nevada Journeys, has seen a 205% increase in views in the last month. “My hope, and the goal of this thing, is that Jonathan (SNJ’s executive director) tells me that they’re seeing an equally impressive spike in contributions.”

The HealthCheck tool is available to all non-profit organizations with an active 501(c)3 status. While the financial efficiencies of each may be screened due to public information found online, organizations seeking the full rating and tailored best practices guide will be charged a fee. “I wish we could offer HealthCheck at no cost, but we run a business to help strengthen our clients”, says Parker. “There’s a great deal we offer in benefits, plus we’re happy to work with businesses and foundations looking to underwrite the fees.”

For more information about NPcatalyst or its HealthCheck tool, log onto www.NPcatalyst.com, email info@NPcatalyst.com, or call 775-333-9444.

Research and transparency can increase charitable support

Over the last five years, we’ve witnessed an interesting progression with donors and volunteers. As a result of charitable competition, economic forces, and electronic capacities, today’s donors are increasingly curious, analyze before acting, and desire greater connectivity. When donors consider non-profit organizations for their contributions, a number of factors come into play, including the donor’s relationship, belief in the mission, and geographical location. Many times, this isn’t enough information for a prospective donor to render a decision.

In an article, written by Forbes magazine columnist Matt Brady, last September, he wrote, “Since wealthy donors want greater impact and demonstrable results from their giving, the onus is increasingly on charities to provide greater transparency in how they are spending their money and more evidence of the effect of their efforts. Smaller, nimbler and more accountable charities are becoming increasingly attractive to donors vs. large, traditional ones.”

In our many conversations with donors and volunteers, they gain the most satisfaction when supporting efficient, well-operated organizations. When asked what they look for when determining their charitable support, the answers have fallen within the following five predominant categories:

Data & Efficiency

A review of financial information, such as figures found on IRS Forms, enables the donor to analyze a non-profit organization’s financial information. The donor can then determine organization’s efficiency, capacity, and overall financial health.

Finance & Fund Development

Non-profits have an obligation to act as responsible stewards in managing their financial resources. They must comply with all legal financial requirements and adhere to sound accounting principles that produce reliable financial information, ensure fiscal responsibility and build public trust. In addition, non-profits act as the intermediary between donors and beneficiaries and have an ethical obligation to ensure proper handling of funds to carry out their missions.

Governance

A non-profit’s leadership, represented by its staff and board of directors is responsible for defining the organization’s mission and for providing overall leadership and strategic direction to the organization. Each non-profit board should: ensure that the organization has adequate resources to carry out its mission and provide direction for the executive director and key staff; and evaluate its own effectiveness as a governing body and as representatives of the community in upholding the public interest served by the organization.

Human Resources

The ability of an organization to make effective use of the energy, time and talents of its employees and volunteers is essential to accomplish the organization’s mission. Non-profit organizations should place a high priority on exercising fair and equitable practices that attract and retain qualified volunteers and employees. Nonprofits have an obligation to adhere to all applicable employment laws and to provide a safe and productive work environment.

Public Information

Non-profits that provide information to prospective donors and other constituents promote informed and responsible philanthropy. Donors are better able to make decisions when they can learn a nonprofit’s purpose, who governs it, how it manages its financial resources, whom the nonprofit serves, and what progress it has made toward achieving its mission.

We’re excited by this movement, as I believe we’ll see increases in financial and voluntary support as well as stronger organizations which receive the support. In fact, NPcatalyst has created a tool designed to drive support to non-profit organizations while, at the same time, rating each organization according to the various performance indicators. It’s called NPHealthCheck and can be found at www.npcatalyst.com.

.