Bookkeeping Basics
Content
Bookkeeping Basics: What Every Nonprofit Bookkeeper Needs to Know
Bookkeeping Basics is very methodical in its approach, introducing one concept at a time. This book will apply to many types of nonprofits and community groups because it is so elemental in nature and because the examples are from these types of groups.” This hands-on guide gives the novice bookkeeper the knowledge and skills to track the financial activity of their nonprofit in a way that brings order out of chaos, safeguards the organization's assets, and provides useful information for making sound decisions. The authors guide readers through the concepts and processes that every bookkeeper needs to know, including single- vs. double-entry bookkeeping, cash vs. accrual basis accounting, posting financial transactions, preparing financial statements, establishing internal controls, closing out your fiscal year, and much more. Reproducible forms include an accounts payable register, accounts receivable register, accounts receivable register, general ledger, financial summary form, grant tracking form, internal controls activity flow chart, and an audit preparation checklist.
Table of Contents Chapter 1: Bookkeeping Overview
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Bookkeeping Defined The Importance of Good Financial Records The Three Steps of Bookkeeping Chapter One Key Concepts
Chapter 2: Setting the Stage
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Cash Basis Versus Accrual Basis Accounting Double-Entry Bookkeeping Chapter Two Key Concepts
Chapter 3: Your Chart of Accounts
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Designing Your Chart of Accounts Chapter Three Key Concepts
Chapter 4: Recording Transactions
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Source Documents Journal Entries Posting to Ledger Accounts Preparing a Trial Balance Chapter Four Key Concepts
Chapter 5: Financial Statements 101
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Statement of Activities Statement of Position
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Other Financial Reports Chapter Five Key Concepts
Chapter 6: The Importance of Donor Intent
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Nonprofit Accounting Standards Handling Contributions Chapter Six Key Concepts
Chapter 7: The Bookkeeping Cycle
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Monthly Activities The Annual Audit Closing Entries Tax and Compliance Reporting Chapter Seven Key Concepts
Chapter 8: Internal Controls Part I: Protecting What You Own
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Budgets and Financial Statements Segregation of Duties Receiving Cash and Checks Preparing the Deposit Reconciling Your Bank Statement Accounts Receivable Aging of Accounts Receivable Accounting for Bad Debts Petty Cash Inventories Fixed/Capital Assets Depreciation Disposition of Fixed/Capital Assets Chapter Eight Key Concepts
Chapter 9: Internal Controls Part II: Protecting Your Expenditures and Liabilities
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Accounts Payable Accounts Payable Records Aging of Accounts Payable Paying the Bills Employee Advances Employee Travel Payroll Other Internal Control Issues Chapter Nine Key Concepts
Afterward Appendices Glossary: Terms Used in Nonprofit Accounting Bibliography Index
Field Guide to Developing and Operating Your Nonprofit Board of Directors by Carter McNamara, MBA, PhD, partner in Authenticity Consulting, LLC "The guide includes enough background theory to show you how to make change take place. Especially valuable are the practical, active tips that will really bring about change, instead of just talking about it. "
-- Leonard Zych, Executive Director, Executive Service Corps of San Antonio There are already plenty of publications about nonprofit Boards. Some publications provide basic, introductory overviews of Boards. There are many small publications that provide practical suggestions about one certain Board practice, for example, how to staff a Board or how to evaluate a Board. Some publications contain highly reflective and even inspirational discussions about the type of governance needed for the 21st Century. If you "boiled down" the information in these publications to the most practical suggestions and then added a lot of other practical suggestions and materials, as well, you'd end up with our Field Guide. This guide is very useful to start a Board or to fix a struggling Board. In our experience over the years, Boards rarely struggle because they don't understand advanced concepts. Rather, Boards struggle because they have not mastered, or they have gotten away from, the fundamentals. This guide will help your Board to establish and always maintain mastery of the fundamentals Guidelines are written in an easy-to-implement style, resulting in a highly practical resource that can be referenced at any time during the life of a nonprofit Board and organization.This complete, clear and concise guide takes the reader through each step to:
1. 2. 3. 4. 5. 6.
Start a nonprofit organization Build the initial, working Board Develop the Board to become a fully functioning, governing Board Carefully hire, or replace, the Chief Executive Conduct a complete organizational assessment Diagnose and address Founder's Syndrome
Guidelines are comprehensive and integrated into a plan-based approach to effective, nonprofit governance. This hands-on guide is ideal for:·
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Nonprofit founders Current and potential nonprofit Board members Nonprofit Chief Executives and middle-management Nonprofit consultants and service providers Funders
Part I: How Do We Start a Nonprofit Corporation? What is a Nonprofit Organization?
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Nonprofit Compared to For-Profit Organizations Types of Needs Met by Nonprofits Primary Legal Forms of Nonprofits Typical Structures of Nonprofits Unique Culture of Traditional Nonprofits
Starting Your Nonprofit Corporation
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What's the Purpose, or Mission, of Your Nonprofit?
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Consider Fiscal Sponsorship to Jump Start Your Organization What Help Might You Need? Name Your Nonprofit Recruit Initial Board Members Hire a Chief Executive? Draft Articles of Incorporation and By-Laws Conduct Very Basic Strategic Planning Conduct Initial Board Meeting For Review and Approvals Make Necessary Filings
Checklist for Starting Your New Nonprofit Part II: What Are Roles of Board, Chief Executive and Other Staff? Variety of Boards and Materials
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What is a Board of Directors? Diversity of Board Structures Typical Life Stages of Boards Various Types of Boards Governance Documents
Roles and Responsibilities of Boards of Directors
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Legal and Ethical Responsibilities of Board Members Board Committees (or Task Forces) Roles of Board Members and Officers (Job Descriptions) Role of Board Chair Role of Executive Committee
Roles and Responsibilities of Chief Executive and Staff
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Chief Executive Officer Job Description: Chief Executive Officer Board/Staff Responsibilities Organization Chart of Board/Staff Relationships
Part III: How Do Boards Do Their Work? Board Calendar (Schedule of Annual Activities) Strategic Planning: Direction for Nonprofit and Board
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All Else Flows from Strategic Planning Basic Guidelines to Develop Strategic Plan Sample Planning Process for Short-Term Plan Developing Your Strategic Plan Document
Staffing the Board
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Adopt Board Staffing Policy Guidelines to Identify Potential Board Members
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Application Process Orientation to New Board Members What Board Members Need to Know Recognizing / Thanking Board Members Board Member "Retirement" Removing Board Member Frequently Asked Questions About Board Staffing
Organizing Board Committees and Assignments
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Guidelines to Organizing Board Committees Chartering/Delegating Committee Board Committees Work Plans
Guidelines to Making Board Decisions
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Foundations for Effective Decisions Guidelines to Consensus Decision Making
Guidelines for Good Governance and Accountability
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Communications from Stakeholders (Inbound Marketing) Strategic Planning Board Development Programs and Services Human Resource Management Fundraising Advertising, Promotions and Public Relations (Outbound Marketing) Finances, Taxes and Facilities Accountability and Evaluation
Ensuring Successful Board Meetings
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Key Steps to Plan Successful Board Meetings Sample Board Meeting Agenda Avoid "Sidebar Meetings" Summary Reference Sheet During Board Meetings Roberts' Rules of Order Board Meeting Minutes (Documentation of Board Meetings) Executive Session ("In Camera") Open Board Meetings Meeting Evaluation by Members
Board Coordination with Chief Executive and Staff
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Ensuring Effective Board and Staff Relations Evaluation of Chief Executive Officer Sustaining Strong Relationship Between Board Chair and Chief Executive
Ensuring High-Quality Board
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Board Retreats
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Board Training Board Development Board Self-Evaluation Ideas to Ensure Complete Participation of Members Guidelines to Mature Your Board
Part IV: How Do We Hire Or Replace Chief Executive? Do You Need a Chief Executive Officer?
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Wrong Reasons to Hire CEO Right Reasons to Hire CEO
Propriety and Public Relations
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Outgoing Chief Executive's Notification to Board Maintaining Confidentiality
Board and Staff Preparation and Coordination
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Board Preparation Administrative Preparation Interim Coordination Between Board and Staff
Hiring Chief Executive
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Selecting Chief Executive Orientating New Chief Executive
Part V: How Do We Evolve Board to Next Level? Typical Challenge in Board Evolution: Personalities to Policies
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Typical Problem Among Small Organizations Some Troublesome Traits Among Founders and Boards Typical Traits of Well-Developed Leaders Basic Principles in Developing Leadership
Actions Boards Must Take Actions Founders Must Take Actions Staff Might Take Appendices Appendix A: Glossary Appendix B: Free, On-Line Resources for Nonprofits
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Free Management Library(SM) Free Nonprofit Micro-eMBA(SM) Organization Development Program Organizations Assisting Nonprofits Free, On-Line Newsletters
Appendix C: Useful Assessments
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Checklist of Nonprofit Management Indicators (Internal Analysis) Driving Forces Impacts (External Analysis)
Appendix D: Typical Contents of Board Manual Appendix E: Guidelines to Form Advisory Boards
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Overall Benefit of Advisory Group What is Advisory Group? When Should Advisory Group Be Formed? How Should Advisory Group Be Defined or Organized?
Appendix F: Sample Board Policies
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Sample Board Attendance Policy Sample Conflict of Interest Policy
Appendix G: Guidelines to Working With Consultants
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ensure that the Board and Executive Director are working "from the same page".
Field Guide to Nonprofit Strategic Planning and Facilitation
by Carter McNamara, MBA, PhD, partner in Authenticity Consulting, LLC Includes worksheets in an appendix, as well as on-line for more flexible use. "The guidebook is awesome!" -- Christie Hammes Director, Strategic Development Services MAP for Nonprofits, Inc. (Book reviews by Jane Garthson and Wayne Amundson) This book is used by a variety of educational institutions. Contact us if you are an educator. If you'd first like to read some of the high praise that our customers give us regarding our publications, click here. Focus of Guidebook When members of nonprofit organizations struggle with their strategic planning process or their plan ends up not being useful at all, it is rarely because their planning process did not include state-of-the-art techniques in facilitation or the latest models in strategic planning. Rather, it is because their process 1) did not completely suit the nature and needs of the nonprofit and 2) did not thoroughly address all of the most critical, "core" aspects of strategic planning. Guidelines in this guidebook are focused on customizing and implementing an organization- or program-wide, strategic planning process for a nonprofit organization. Guidelines will show you, step-by-step, how to conduct a very complete, simplified (not simplistic!) strategic planning process that is very realistic, flexible and suited to the nature of the typical nonprofit organization. Guidelines are useful to cultures that prefer highly rational approaches to planning or more naturalistic and unfolding (organic) approaches.
One of the best ways to ensure that the strategic planning process is highly effective is to ensure that facilitation of the process is highly effective as well. Therefore, this guidebook also provides complete, step-by-step techniques and tools for facilitating every aspect of nonprofit strategic planning -- one of the few strategic planning books, if any, to include that information for facilitators. The book is organized so that the reader can use it to conduct a complete strategic planning process, or it can be used as a reference manual to address certain phases of planning when needed. Content of Guidebook PART I of the guidebook includes guidelines to help the reader gain clear understanding of the strategic planning process, including how it guides the direction, structure and operations of all facets of nonprofit organizations. Ultimately, from reading this section, the reader realizes the importance of customizing the strategic planning process to suit the nature and needs of the typical nonprofit organization. PART II includes complete, step-by-step guidelines to customize a strategic planning process that is relevant, realistic and flexible. Guidelines make frequent reference to numerous practical tools and techniques spread throughout the guidebook. The planning process is divided into six overall phases, including: 1. Preparing a thorough "plan for a plan" to customize your strategic planning process. 2. Conducting realistic situational analyses, external and internal to the organization. 3. Establishing consensus-driven strategic direction for the organization, including meaningful mission (and vision and/or values, if preferred), goals and strategies. 4. Developing realistic and flexible implementation plans, including action plans, performance plans, staffing plans and an operating budget. 5. Developing and communicating the strategic plan document, including thorough review and approval. 6. Monitoring implementation and adjusting plans, including specific approaches and tools to track status of implementation, along with clearly making changes to plans as needed. PART III is a Toolkit for the facilitator of the nonprofit strategic planning process, whether the facilitator is internal or external to the organization. Specific procedures are included for the most useful techniques used in facilitating nonprofit strategic planning. Guidelines suggest which technique to use and when. The techniques are referenced throughout the book, as well. The section ends with numerous guidelines and tips about how to address the most common challenges that can arise during facilitation of strategic planning. Appendices include numerous resources for strategic planners, including:
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Glossary of most common terms in strategic planning Vast resources for nonprofits (many of them free) Comprehensive, practical tool to conduct an internal analysis of your organization and compare results to best practices in nonprofit organizations Quick, convenient methods to collect information from important stakeholders Guidelines to recruit and hire a consultant, including a strategic planning facilitator
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Description of the culture, designs, Board structures, cycle of operations and designs of programs in the typical nonprofit organization Worksheets to conveniently identify and organize the most important information about all aspects of your customized strategic planning process (these worksheets are available on-line, as well) Tools to help planners carefully analyze strategic issues and goals and then identify the most relevant and suitable strategies to address those issues and goals
You Can Use this Guidebook to Learn About:
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Nonprofits, including their typical nature, needs and designs, along with common challenges when conducting strategic planning The strategic planning process, including its purpose, major benefits and influences to the nonprofit organization, along with common myths about the process, what it will do and what it won't do for you Facilitating strategic planning, including the role, common techniques and when to use them, and how to address the most common challenges in facilitating strategic planning -- along with complete, step-by-step guidelines to guide planners to customize and carry out their strategic planning process Cultivating strong ownership and commitment of the members of the organization in their planning process Structuring strong, strategic thinking in all aspects of the strategic planning process Ensuring that plans are highly relevant, realistic and flexible Ensuring implementation and necessary adjustments to plan
Audiences This guidebook will be extremely useful to you, whether:
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Yours is a new or established nonprofit. You are conducting strategic planning for the first time or have done planning before. Your organization is facing several major, current issues or you are using planning just to "fine tune" things in your organization. You are facilitating the strategic planning process yourself or having someone else facilitate the process for your nonprofit. You prefer a highly rational approach to decision making and problem solving or a more unfolding and holistic (organic) approach.
This guidebook will also be extremely useful to you if you are: 1. You are a service provider to nonprofits and wish to provide more qualified strategic planning facilitators to the nonprofits in your area. 2. Member of a nonprofit who can't afford a strategic planning facilitator, but are willing to work through the process to customize your own strategic plan if you have a step-by-step resource. 3. Someone who wants to learn how to facilitate strategic planning for nonprofits. 4. Someone who doesn't already know a lot about nonprofits.
Field Guide to Nonprofit Strategic Planning and Facilitation Table of Contents by Carter McNamara, MBA, PhD, partner in Authenticity Consulting, LLC Description of the book is located here. Part I: Understanding Strategic Planning Strategic Planning
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What is Strategic Planning? What is "Strategic"? All Else Flows From Strategic Planning in Nonprofit Benefits of Strategic Planning Many Reasons Nonprofits Do Strategic Planning
Conducting Strategic Planning
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Strategic Planning Framework Traits of Any Strategic Planning Process What Strategic Planning Won't Do for You Myths About Strategic Planning Three Criteria for Highly Effective Strategic Planning and Plans When Should Strategic Planning Be Done? Strategic Management: Strategic Planning Cycle How Much Will Strategic Planning Cost?
Part II: Conducting Relevant, Realistic and Flexible Strategic Planning Phase 1: Design Plan for a Plan
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Ready for Strategic Planning Organize Planning Committee? Why Do Strategic Planning Now? What is the Organizational Scope of the Plan? What Strategic Planning Approach Might Be Used? How Might Strategic Planning Approach Be Followed What is the Time Span for the Plan? What is the Schedule for Developing the Plan? Who Will Be Involved From Your Nonprofit? How? When? Need Outside Help? How? When? How to Get It? What Materials Might Be Needed? When? How to Get Them? Conventions for Terms Provide Planning Guide to Planners? Develop Profile of Your Organization How Will You Get "Buy In" of Your Planners? How Will Planners Be Trained About Strategic Planning?
Phase 2: Conduct Situational Analysis
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Develop Mission Statement Now or Situational Analysis First?
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Analyze External Environment -- What We Can't Control Analyze Internal Environment -- What We Can Control Identify Strategic Issues or Establish Strategic Goals?
Phase 3: Establish Strategic Direction
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Develop/Update Mission, Vision and Values Statements Ensure Strategic Thinking for Goals and Strategies Establish Strategic Goals Now? Identify Strategies
Phase 4: Develop Implementation and Finance Plans
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Develop Action Plans Finalize Action Plans -- Integration and Reality Check Develop Performance Plans Developing Staffing Plan Develop Associated Plans? Develop Operating Budget
Phase 5: Develop Strategic Plan Document
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Draft Strategic Plan Document Coordinate Reviews and Approval of Plan Distribute and Communicate Plan Celebrate Completion of Plan
Phase 6: Monitor Implementation and Adjust Plans
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Leadership, Supervision and Delegation Specific Approaches to Ensure Implementation of Plans Specific Tools to Track Implementation of Plans Adjust Plans As Needed
Part III: Foundations for Effective Facilitation Getting Started As Facilitator
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Understand What Strategic Planning Facilitator Does Understand Yourself as Facilitator Learn to Work with Diversity Develop Contract With Nonprofit Organization? Understand Planners' Nonprofit Organization Clarify Expectations Between You and Planners Establish Criteria to Evaluate Planning Effort
Facilitation Techniques and When to Use Them
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Overview of Common Techniques and Their Applications Procedures for Each Facilitation Technique
Challenges in Facilitating Strategic Planning
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What If Board Not Ready For Planning? How Do We Enhance Group Participation? How Do We Resolve Differences and Reach Consensus? How Do We Get Unstuck? How Do We Deal With Resistance? How Do We Ensure Implementation of Plan?
Appendices Appendix A: Glossary of Common Strategic Planning Terms Appendix B: Resources for Nonprofits Appendix C: Nonprofit Management Indicators (Internal Analysis Tool) Appendix D: Data Collection Guidelines
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Conducting Interviews Conducting Focus Groups Basic Methods to Assess Client Needs
Appendix E: Getting and Working With Consultants Appendix F: Understanding Nonprofits
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Unique Culture of Typical Nonprofit Organization Chart of Typical Start-Up Nonprofit Organization Chart of Typical Small Nonprofit With Chief Executive Officer Organization Chart of Typical Medium-Sized Nonprofit Diversity of Board Structures Typical Cycle of Operations in Nonprofits Nonprofit Programs, Configurations and Types
Appendix G: Worksheets
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Worksheet #1: Plan for Plan 1.1 Is Nonprofit Ready for Strategic Planning? 1.2 Organize Planning Committee? 1.3 Why Do Strategic Planning Now? 1.4 What is Organizational Scope of Plan? 1.5 What Strategic Planning Approach Might Be Used? 1.6 How Might Strategic Planning Approach Be Followed? 1.7 What Time Span Will Be Used? 1.8 What Schedule Might Be Used? 1.9 Who Will Be Involved from Nonprofit? How? When? 1.10 Outside Help Needed? When? How Get It? 1.11 Materials Needed? When? How Get Them? 1.12 Any Conventions for Use of Terms? 1.13 Provide Planning Guide to Planners? 1.14 Develop Organizational Profile 1.15 How Will You Get "Buy In" When Announcing Process? 1.16 How Will You Train About Approach to Strategic Planning? Worksheet #2: Primary Client Analysis Worksheet #3: Stakeholder Analysis
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Worksheet #4: Environmental Scan Worksheet #5: Collaborator Analysis Worksheet #6: Competitor Analysis Worksheet #7: Opportunities and Threats Worksheet #8: Strengths and Weaknesses Worksheet #9: Strategic Issues Worksheet #10: Mission, Vision and/or Values Worksheet #11: Strategic Goals Worksheet #12: Strategies Worksheet #13: Action Planning
Appendix H: Tools to Identify Strategies
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Tool #1: Guidelines to Problem Solving and Decision Making Tool #2: Organic Philosophy of Problem Solving Tool #3: SWOT Grid Analysis Tool #4: Internal Nonprofit Problems and Strategies to Address Each of Them Tool #5: Guidelines for Successful Organizational Change
Field Guide to Nonprofit Program Design, Marketing and Evaluation by Carter McNamara, MBA, PhD, partner in Authenticity Consulting, LLC Includes worksheets in an appendix, as well as on-line for more flexible use. If you'd first like to read some of the high praise that our customers give us regarding our publications, click here. This book is used by a variety of educational institutions. Contact us if you are an educator. Comprehensive, Integrated and Practical Resource About Nonprofit Program Design, Marketing and Evaluation To effectively design a program, you must have clear understanding of the program's clients and their needs to be met by the program. That understanding comes from conducting an effective marketing analysis. To effectively advertise and promote a program, you must have clear understanding of the program's clients, their needs and their habits, along with the benefits of the program to the clients. To effectively evaluate a program, you must have clear understanding of the program's goals and intended outcomes, and integrate indicators of success into the program's design well before the program even starts operating. Thus, the activities of program design, marketing and evaluation are highly integrated and should be treated as such, ideally in one comprehensive publication (like this one), rather than across several. This guidebook provides clear, concise and comprehensive guidelines for all critical aspects of designing, marketing and evaluating a nonprofit program. Guidelines are
written in an easy-to-implement style, resulting in a highly practical resource that can be referenced at any time during the life of a nonprofit program. This guide can be used to:
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Evolve strategic goals into well-designed programs, guaranteed to meet needs of clients. Develop very credible nonprofit fundraising proposals, evaluation plans and business plans. Ensure focused and effective marketing, including sales, advertising and promotions. Evaluate effectiveness and efficiencies of current programs in delivery of services to clients. Evaluate program performance against goals and outcomes. Understand how a program really works in order to improve or duplicate the program.
This hands-on guide is ideal for:
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Executives and managers of nonprofits Members of nonprofit Boards of Directors Nonprofit consultants and service providers Foundations, government and corporate donors Educators
Increase Results of Your Fundraising! One of the first things that funders look for in a grant proposal is the description of the design of the program. Description of a very well-designed program, including with a clear evaluation plan, greatly increases the chances that the program will be funded. This guidebook shows you how to design a program that consistently meets the needs of its clients, and does so in a highly effective and efficient fashion. Includes Step-by-Step Guidelines, Materials and Worksheets to:
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Understand the "system" of a nonprofit organization and program Ensure successful planning for program development, marketing and evaluation Conduct your preparatory strategic planning Design your program logic model Conduct your program market analysis Plan your program start-up and development Plan your program's ongoing management and operations Plan your program's finances Plan your program's approach to evaluation Assemble numerous plans (see below)
100s of Guidelines and 25 Worksheets to Assemble These Plans! By following the guidelines to complete the various worksheets, you can quickly assemble plan documents for:
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Program start-up and development plan Marketing plan
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Advertising and promotions plan Sales plan Customer service plan Operations plan Fundraising proposal Business plan Program evaluation plan, including implementation, process, goals-based and/or outcomes evaluation
Includes "Business Research Methods 101" The guidebook includes guidelines to conduct highly practical market research activities for your program development, marketing or evaluation. Includes:
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Guidelines to plan your market research Overview of methods to collect data during research How to conduct highly ethical research Guidelines to conducting observations Guidelines to developing questionnaires Guidelines to conducting interviews Guidelines to conducting focus groups Guidelines to developing case studies Guidelines to conducting pilot research Some major sources of market research information Guidelines to analyzing and interpreting research results Table of Contents
Top-level description of this guidebook is located here. Part I: Preparing for Program Development and Evaluation Understanding Nonprofit Organizations and Programs
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Benefits of Systems View Understanding "System" of Nonprofit Organization System Direction: Mission, Goals and Strategies What is a Nonprofit Program? Organization Chart of Typical Small/Medium Nonprofit Organization Understanding "System" of Nonprofit Program (Logic Model) Understanding Life Cycles of Nonprofit Organizations and Programs
Understanding General Planning Process
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Basic Planning Process and Terms Guidelines to Ensure Successful Planning and Implementation Guidelines to Ensure Successful Program Development and Evaluation
Approaches to Program Planning
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"Build It and They Will Come" Seat-of-the-Pants Incremental Nonprofit Business Planning Nonprofit Business Development
Basics of Strategic Planning
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All Else Flows from Strategic Planning Basic Guidelines to Develop Strategic Plan New Nonprofits: Start Small, Start Simple, But Start
Part II: Program Planning Chronology of Activities Developing Program Framework (Logic Model)
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Assessment of Community Needs and Interests Vision for Program Participants Desired Outcomes for Program Participants Methods to Help Program Participants Achieve Desired Outcomes Outcomes Goals/Targets and Indicators Toward Hitting Aimed Targets Outputs/Tangibles Produced by Model Preliminary Program Logic Model
Market Analysis
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Target Markets and Their Unique Features Perceived Program Benefits to Each Target Market Packaging Unique Value Proposition What Name Will You Use for Your Service? What Price Should You Charge? How Should Clients Pay? Who Are Your Competitors? Who Are Your Collaborators? What Laws and Regulations Must You Follow? Protect Your Creation with Patents, Trademarks/Servicemarks and/or Copyrights? Finalize Description of Each of Your Services Summary of Remaining Marketing Analysis Tasks and Considerations Marketing Goals
Planning Program Development and Ongoing Operations
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Developing Program "From the Ground Up" Advertising and Promotions Sales and Service Delivery of Services Personnel / Staffing Materials and Supplies Facilities and Equipment
Planning Program Finances
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Key Processes and Terms Developing Program Budget
Part III: Program Evaluation Understanding Program Evaluation
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Myths About Program Evaluation So What is Program Evaluation? Reasons To Do Program Evaluation Basic Ingredients Major Considerations to Design Your Program Evaluation
Common Types of Program Evaluation
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Implementation Evaluation ("What Are We Doing?") Process Evaluation ("How Does Program Work?") Goals-Based Evaluation ("Are We Achieving Goals?") Outcomes Evaluation ("What Are Impacts On Clients?")
Planning Your Program Evaluation
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Should You Hire Program Evaluator? Who Are Your Audiences of Your Evaluation? What Management Decisions Do You Need to Make About Program? What Evaluation Questions Should You Answer? What Information Is Needed to Answer Evaluation Questions? What Are Best Sources of This Information? What What Are Best Methods to Collect Information? How Will You Analyze and Interpret Your Results? How Will You Report Your Evaluation Results? Who Should Conduct the Evaluation? Have Your Evaluation Plan Reviewed -- Tested, if Possible Conduct Ethical Research -- Information-Release Form Pitfalls to Avoid During Evaluation Planning
Part IV: Assembling and Implementing Plans Assembling Plans
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Sections Common to Many Plan Documents Assembling Program Development Plan Assembling Marketing Plan Assembling Advertising and Promotions Plan Assembling Operations / Management Plan Assembling Staffing Plan Assembling Nonprofit Business Plan Assembling Fundraising Proposal Assembling Program Evaluation Plan Assembling Outcomes-Based Evaluation Plan
Implementing Plans
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Role of Leadership (Governance and Executives) Tools to Track Status of Implementation Capture Learnings from Implementation of Plans
Appendix A: Glossary of Useful Terms Appendix B: Worksheets
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Assessment of Community Needs and Interests Vision for Program Participants Desired Outcomes for Program Participants Methods to Help Program Participants Achieve Desired Outcomes Outcomes Goals/Targets and Indicators Toward Hitting Aimed Targets Preliminary Program Logic Model Target Markets, Their Unique Features and Perceived Program Benefits Packaging Unique Value Proposition Name for Service Pricing Competitors Collaborators Laws and Regulations Patents, Trademarks/Servicemarks and/or Copyrights Description of Each of Your Services Summary of Remaining Marketing Analysis Tasks and Considerations Marketing Goals Program Development Advertising and Promotions Sales and Service Delivery of Services Personnel / Staffing Materials and Supplies Facilities and Equipment Planning Your Program Budget Planning Your Program Evaluation Planning Your Outcomes-Based Evaluation
Appendix C: Conducting Complete Organizational Assessment
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Legal Governance Human Resources (Staff and Volunteers) Planning (Strategic, Programs and Evaluation) Financial Fundraising
Appendix D: Basic Methods in Business Research
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Planning Your Business Research Overview of Data Collection Methods
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Ethics: Information Release Form Guidelines to Conduct Observations Guidelines to Developing Questionnaires Guidelines to Conducting Interviews Guidelines to Conducting Focus Groups Guidelines to Developing Case Studies Guidelines to Conducting Pilot Research Various Convenient Methods to Collect Information Some Major Sources of Market Research Information Analyzing and Interpreting Results
Appendix E: Resources for Nonprofits
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Free Management Library(SM) Free Nonprofit Micro-eMBA(SM) Organizations Free, On-line Discussion Groups Free, On-Line Newsletters
Appendix F: Major Methods of Advertising and Promotions
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Standard Tools and Methods Promotional Activities Through the Media Unique and Special Promotional Activities and Events
Bookkeeping Basics is very methodical in its approach, introducing one concept at a time. This book will apply to many types of nonprofits and community groups because it is so elemental in nature and because the examples are from these types of groups.” This hands-on guide gives the novice bookkeeper the knowledge and skills to track the financial activity of their nonprofit in a way that brings order out of chaos, safeguards the organization's assets, and provides useful information for making sound decisions. The authors guide readers through the concepts and processes that every bookkeeper needs to know, including single- vs. double-entry bookkeeping, cash vs. accrual basis accounting, posting financial transactions, preparing financial statements, establishing internal controls, closing out your fiscal year, and much more. Reproducible forms include an accounts payable register, accounts receivable register, accounts receivable register, general ledger, financial summary form, grant tracking form, internal controls activity flow chart, and an audit preparation checklist.
Table of Contents Chapter 1: Bookkeeping Overview
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Bookkeeping Defined The Importance of Good Financial Records The Three Steps of Bookkeeping Chapter One Key Concepts
Chapter 2: Setting the Stage
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Cash Basis Versus Accrual Basis Accounting Double-Entry Bookkeeping Chapter Two Key Concepts
Chapter 3: Your Chart of Accounts
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Designing Your Chart of Accounts Chapter Three Key Concepts
Chapter 4: Recording Transactions
• • • • •
Source Documents Journal Entries Posting to Ledger Accounts Preparing a Trial Balance Chapter Four Key Concepts
Chapter 5: Financial Statements 101
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Statement of Activities Statement of Position
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Other Financial Reports Chapter Five Key Concepts
Chapter 6: The Importance of Donor Intent
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Nonprofit Accounting Standards Handling Contributions Chapter Six Key Concepts
Chapter 7: The Bookkeeping Cycle
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Monthly Activities The Annual Audit Closing Entries Tax and Compliance Reporting Chapter Seven Key Concepts
Chapter 8: Internal Controls Part I: Protecting What You Own
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Budgets and Financial Statements Segregation of Duties Receiving Cash and Checks Preparing the Deposit Reconciling Your Bank Statement Accounts Receivable Aging of Accounts Receivable Accounting for Bad Debts Petty Cash Inventories Fixed/Capital Assets Depreciation Disposition of Fixed/Capital Assets Chapter Eight Key Concepts
Chapter 9: Internal Controls Part II: Protecting Your Expenditures and Liabilities
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Accounts Payable Accounts Payable Records Aging of Accounts Payable Paying the Bills Employee Advances Employee Travel Payroll Other Internal Control Issues Chapter Nine Key Concepts
Afterward Appendices Glossary: Terms Used in Nonprofit Accounting Bibliography Index
Field Guide to Developing and Operating Your Nonprofit Board of Directors by Carter McNamara, MBA, PhD, partner in Authenticity Consulting, LLC "The guide includes enough background theory to show you how to make change take place. Especially valuable are the practical, active tips that will really bring about change, instead of just talking about it. "
-- Leonard Zych, Executive Director, Executive Service Corps of San Antonio There are already plenty of publications about nonprofit Boards. Some publications provide basic, introductory overviews of Boards. There are many small publications that provide practical suggestions about one certain Board practice, for example, how to staff a Board or how to evaluate a Board. Some publications contain highly reflective and even inspirational discussions about the type of governance needed for the 21st Century. If you "boiled down" the information in these publications to the most practical suggestions and then added a lot of other practical suggestions and materials, as well, you'd end up with our Field Guide. This guide is very useful to start a Board or to fix a struggling Board. In our experience over the years, Boards rarely struggle because they don't understand advanced concepts. Rather, Boards struggle because they have not mastered, or they have gotten away from, the fundamentals. This guide will help your Board to establish and always maintain mastery of the fundamentals Guidelines are written in an easy-to-implement style, resulting in a highly practical resource that can be referenced at any time during the life of a nonprofit Board and organization.This complete, clear and concise guide takes the reader through each step to:
1. 2. 3. 4. 5. 6.
Start a nonprofit organization Build the initial, working Board Develop the Board to become a fully functioning, governing Board Carefully hire, or replace, the Chief Executive Conduct a complete organizational assessment Diagnose and address Founder's Syndrome
Guidelines are comprehensive and integrated into a plan-based approach to effective, nonprofit governance. This hands-on guide is ideal for:·
• • • • •
Nonprofit founders Current and potential nonprofit Board members Nonprofit Chief Executives and middle-management Nonprofit consultants and service providers Funders
Part I: How Do We Start a Nonprofit Corporation? What is a Nonprofit Organization?
• • • • •
Nonprofit Compared to For-Profit Organizations Types of Needs Met by Nonprofits Primary Legal Forms of Nonprofits Typical Structures of Nonprofits Unique Culture of Traditional Nonprofits
Starting Your Nonprofit Corporation
•
What's the Purpose, or Mission, of Your Nonprofit?
• • • • • • • • •
Consider Fiscal Sponsorship to Jump Start Your Organization What Help Might You Need? Name Your Nonprofit Recruit Initial Board Members Hire a Chief Executive? Draft Articles of Incorporation and By-Laws Conduct Very Basic Strategic Planning Conduct Initial Board Meeting For Review and Approvals Make Necessary Filings
Checklist for Starting Your New Nonprofit Part II: What Are Roles of Board, Chief Executive and Other Staff? Variety of Boards and Materials
• • • • •
What is a Board of Directors? Diversity of Board Structures Typical Life Stages of Boards Various Types of Boards Governance Documents
Roles and Responsibilities of Boards of Directors
• • • • •
Legal and Ethical Responsibilities of Board Members Board Committees (or Task Forces) Roles of Board Members and Officers (Job Descriptions) Role of Board Chair Role of Executive Committee
Roles and Responsibilities of Chief Executive and Staff
• • • •
Chief Executive Officer Job Description: Chief Executive Officer Board/Staff Responsibilities Organization Chart of Board/Staff Relationships
Part III: How Do Boards Do Their Work? Board Calendar (Schedule of Annual Activities) Strategic Planning: Direction for Nonprofit and Board
• • • •
All Else Flows from Strategic Planning Basic Guidelines to Develop Strategic Plan Sample Planning Process for Short-Term Plan Developing Your Strategic Plan Document
Staffing the Board
• •
Adopt Board Staffing Policy Guidelines to Identify Potential Board Members
• • • • • • •
Application Process Orientation to New Board Members What Board Members Need to Know Recognizing / Thanking Board Members Board Member "Retirement" Removing Board Member Frequently Asked Questions About Board Staffing
Organizing Board Committees and Assignments
• • •
Guidelines to Organizing Board Committees Chartering/Delegating Committee Board Committees Work Plans
Guidelines to Making Board Decisions
• •
Foundations for Effective Decisions Guidelines to Consensus Decision Making
Guidelines for Good Governance and Accountability
• • • • • • • • •
Communications from Stakeholders (Inbound Marketing) Strategic Planning Board Development Programs and Services Human Resource Management Fundraising Advertising, Promotions and Public Relations (Outbound Marketing) Finances, Taxes and Facilities Accountability and Evaluation
Ensuring Successful Board Meetings
• • • • • • • • •
Key Steps to Plan Successful Board Meetings Sample Board Meeting Agenda Avoid "Sidebar Meetings" Summary Reference Sheet During Board Meetings Roberts' Rules of Order Board Meeting Minutes (Documentation of Board Meetings) Executive Session ("In Camera") Open Board Meetings Meeting Evaluation by Members
Board Coordination with Chief Executive and Staff
• • •
Ensuring Effective Board and Staff Relations Evaluation of Chief Executive Officer Sustaining Strong Relationship Between Board Chair and Chief Executive
Ensuring High-Quality Board
•
Board Retreats
• • • • •
Board Training Board Development Board Self-Evaluation Ideas to Ensure Complete Participation of Members Guidelines to Mature Your Board
Part IV: How Do We Hire Or Replace Chief Executive? Do You Need a Chief Executive Officer?
• •
Wrong Reasons to Hire CEO Right Reasons to Hire CEO
Propriety and Public Relations
• •
Outgoing Chief Executive's Notification to Board Maintaining Confidentiality
Board and Staff Preparation and Coordination
• • •
Board Preparation Administrative Preparation Interim Coordination Between Board and Staff
Hiring Chief Executive
• •
Selecting Chief Executive Orientating New Chief Executive
Part V: How Do We Evolve Board to Next Level? Typical Challenge in Board Evolution: Personalities to Policies
• • • •
Typical Problem Among Small Organizations Some Troublesome Traits Among Founders and Boards Typical Traits of Well-Developed Leaders Basic Principles in Developing Leadership
Actions Boards Must Take Actions Founders Must Take Actions Staff Might Take Appendices Appendix A: Glossary Appendix B: Free, On-Line Resources for Nonprofits
• • • •
Free Management Library(SM) Free Nonprofit Micro-eMBA(SM) Organization Development Program Organizations Assisting Nonprofits Free, On-Line Newsletters
Appendix C: Useful Assessments
• •
Checklist of Nonprofit Management Indicators (Internal Analysis) Driving Forces Impacts (External Analysis)
Appendix D: Typical Contents of Board Manual Appendix E: Guidelines to Form Advisory Boards
• • • •
Overall Benefit of Advisory Group What is Advisory Group? When Should Advisory Group Be Formed? How Should Advisory Group Be Defined or Organized?
Appendix F: Sample Board Policies
• •
Sample Board Attendance Policy Sample Conflict of Interest Policy
Appendix G: Guidelines to Working With Consultants
•
ensure that the Board and Executive Director are working "from the same page".
Field Guide to Nonprofit Strategic Planning and Facilitation
by Carter McNamara, MBA, PhD, partner in Authenticity Consulting, LLC Includes worksheets in an appendix, as well as on-line for more flexible use. "The guidebook is awesome!" -- Christie Hammes Director, Strategic Development Services MAP for Nonprofits, Inc. (Book reviews by Jane Garthson and Wayne Amundson) This book is used by a variety of educational institutions. Contact us if you are an educator. If you'd first like to read some of the high praise that our customers give us regarding our publications, click here. Focus of Guidebook When members of nonprofit organizations struggle with their strategic planning process or their plan ends up not being useful at all, it is rarely because their planning process did not include state-of-the-art techniques in facilitation or the latest models in strategic planning. Rather, it is because their process 1) did not completely suit the nature and needs of the nonprofit and 2) did not thoroughly address all of the most critical, "core" aspects of strategic planning. Guidelines in this guidebook are focused on customizing and implementing an organization- or program-wide, strategic planning process for a nonprofit organization. Guidelines will show you, step-by-step, how to conduct a very complete, simplified (not simplistic!) strategic planning process that is very realistic, flexible and suited to the nature of the typical nonprofit organization. Guidelines are useful to cultures that prefer highly rational approaches to planning or more naturalistic and unfolding (organic) approaches.
One of the best ways to ensure that the strategic planning process is highly effective is to ensure that facilitation of the process is highly effective as well. Therefore, this guidebook also provides complete, step-by-step techniques and tools for facilitating every aspect of nonprofit strategic planning -- one of the few strategic planning books, if any, to include that information for facilitators. The book is organized so that the reader can use it to conduct a complete strategic planning process, or it can be used as a reference manual to address certain phases of planning when needed. Content of Guidebook PART I of the guidebook includes guidelines to help the reader gain clear understanding of the strategic planning process, including how it guides the direction, structure and operations of all facets of nonprofit organizations. Ultimately, from reading this section, the reader realizes the importance of customizing the strategic planning process to suit the nature and needs of the typical nonprofit organization. PART II includes complete, step-by-step guidelines to customize a strategic planning process that is relevant, realistic and flexible. Guidelines make frequent reference to numerous practical tools and techniques spread throughout the guidebook. The planning process is divided into six overall phases, including: 1. Preparing a thorough "plan for a plan" to customize your strategic planning process. 2. Conducting realistic situational analyses, external and internal to the organization. 3. Establishing consensus-driven strategic direction for the organization, including meaningful mission (and vision and/or values, if preferred), goals and strategies. 4. Developing realistic and flexible implementation plans, including action plans, performance plans, staffing plans and an operating budget. 5. Developing and communicating the strategic plan document, including thorough review and approval. 6. Monitoring implementation and adjusting plans, including specific approaches and tools to track status of implementation, along with clearly making changes to plans as needed. PART III is a Toolkit for the facilitator of the nonprofit strategic planning process, whether the facilitator is internal or external to the organization. Specific procedures are included for the most useful techniques used in facilitating nonprofit strategic planning. Guidelines suggest which technique to use and when. The techniques are referenced throughout the book, as well. The section ends with numerous guidelines and tips about how to address the most common challenges that can arise during facilitation of strategic planning. Appendices include numerous resources for strategic planners, including:
• • • • •
Glossary of most common terms in strategic planning Vast resources for nonprofits (many of them free) Comprehensive, practical tool to conduct an internal analysis of your organization and compare results to best practices in nonprofit organizations Quick, convenient methods to collect information from important stakeholders Guidelines to recruit and hire a consultant, including a strategic planning facilitator
• • •
Description of the culture, designs, Board structures, cycle of operations and designs of programs in the typical nonprofit organization Worksheets to conveniently identify and organize the most important information about all aspects of your customized strategic planning process (these worksheets are available on-line, as well) Tools to help planners carefully analyze strategic issues and goals and then identify the most relevant and suitable strategies to address those issues and goals
You Can Use this Guidebook to Learn About:
• • •
• • • •
Nonprofits, including their typical nature, needs and designs, along with common challenges when conducting strategic planning The strategic planning process, including its purpose, major benefits and influences to the nonprofit organization, along with common myths about the process, what it will do and what it won't do for you Facilitating strategic planning, including the role, common techniques and when to use them, and how to address the most common challenges in facilitating strategic planning -- along with complete, step-by-step guidelines to guide planners to customize and carry out their strategic planning process Cultivating strong ownership and commitment of the members of the organization in their planning process Structuring strong, strategic thinking in all aspects of the strategic planning process Ensuring that plans are highly relevant, realistic and flexible Ensuring implementation and necessary adjustments to plan
Audiences This guidebook will be extremely useful to you, whether:
• • • • •
Yours is a new or established nonprofit. You are conducting strategic planning for the first time or have done planning before. Your organization is facing several major, current issues or you are using planning just to "fine tune" things in your organization. You are facilitating the strategic planning process yourself or having someone else facilitate the process for your nonprofit. You prefer a highly rational approach to decision making and problem solving or a more unfolding and holistic (organic) approach.
This guidebook will also be extremely useful to you if you are: 1. You are a service provider to nonprofits and wish to provide more qualified strategic planning facilitators to the nonprofits in your area. 2. Member of a nonprofit who can't afford a strategic planning facilitator, but are willing to work through the process to customize your own strategic plan if you have a step-by-step resource. 3. Someone who wants to learn how to facilitate strategic planning for nonprofits. 4. Someone who doesn't already know a lot about nonprofits.
Field Guide to Nonprofit Strategic Planning and Facilitation Table of Contents by Carter McNamara, MBA, PhD, partner in Authenticity Consulting, LLC Description of the book is located here. Part I: Understanding Strategic Planning Strategic Planning
• • • • •
What is Strategic Planning? What is "Strategic"? All Else Flows From Strategic Planning in Nonprofit Benefits of Strategic Planning Many Reasons Nonprofits Do Strategic Planning
Conducting Strategic Planning
• • • • • • • •
Strategic Planning Framework Traits of Any Strategic Planning Process What Strategic Planning Won't Do for You Myths About Strategic Planning Three Criteria for Highly Effective Strategic Planning and Plans When Should Strategic Planning Be Done? Strategic Management: Strategic Planning Cycle How Much Will Strategic Planning Cost?
Part II: Conducting Relevant, Realistic and Flexible Strategic Planning Phase 1: Design Plan for a Plan
• • • • • • • • • • • • • • • •
Ready for Strategic Planning Organize Planning Committee? Why Do Strategic Planning Now? What is the Organizational Scope of the Plan? What Strategic Planning Approach Might Be Used? How Might Strategic Planning Approach Be Followed What is the Time Span for the Plan? What is the Schedule for Developing the Plan? Who Will Be Involved From Your Nonprofit? How? When? Need Outside Help? How? When? How to Get It? What Materials Might Be Needed? When? How to Get Them? Conventions for Terms Provide Planning Guide to Planners? Develop Profile of Your Organization How Will You Get "Buy In" of Your Planners? How Will Planners Be Trained About Strategic Planning?
Phase 2: Conduct Situational Analysis
•
Develop Mission Statement Now or Situational Analysis First?
• • •
Analyze External Environment -- What We Can't Control Analyze Internal Environment -- What We Can Control Identify Strategic Issues or Establish Strategic Goals?
Phase 3: Establish Strategic Direction
• • • •
Develop/Update Mission, Vision and Values Statements Ensure Strategic Thinking for Goals and Strategies Establish Strategic Goals Now? Identify Strategies
Phase 4: Develop Implementation and Finance Plans
• • • • • •
Develop Action Plans Finalize Action Plans -- Integration and Reality Check Develop Performance Plans Developing Staffing Plan Develop Associated Plans? Develop Operating Budget
Phase 5: Develop Strategic Plan Document
• • • •
Draft Strategic Plan Document Coordinate Reviews and Approval of Plan Distribute and Communicate Plan Celebrate Completion of Plan
Phase 6: Monitor Implementation and Adjust Plans
• • • •
Leadership, Supervision and Delegation Specific Approaches to Ensure Implementation of Plans Specific Tools to Track Implementation of Plans Adjust Plans As Needed
Part III: Foundations for Effective Facilitation Getting Started As Facilitator
• • • • • • •
Understand What Strategic Planning Facilitator Does Understand Yourself as Facilitator Learn to Work with Diversity Develop Contract With Nonprofit Organization? Understand Planners' Nonprofit Organization Clarify Expectations Between You and Planners Establish Criteria to Evaluate Planning Effort
Facilitation Techniques and When to Use Them
• •
Overview of Common Techniques and Their Applications Procedures for Each Facilitation Technique
Challenges in Facilitating Strategic Planning
• • • • • •
What If Board Not Ready For Planning? How Do We Enhance Group Participation? How Do We Resolve Differences and Reach Consensus? How Do We Get Unstuck? How Do We Deal With Resistance? How Do We Ensure Implementation of Plan?
Appendices Appendix A: Glossary of Common Strategic Planning Terms Appendix B: Resources for Nonprofits Appendix C: Nonprofit Management Indicators (Internal Analysis Tool) Appendix D: Data Collection Guidelines
• • •
Conducting Interviews Conducting Focus Groups Basic Methods to Assess Client Needs
Appendix E: Getting and Working With Consultants Appendix F: Understanding Nonprofits
• • • • • • •
Unique Culture of Typical Nonprofit Organization Chart of Typical Start-Up Nonprofit Organization Chart of Typical Small Nonprofit With Chief Executive Officer Organization Chart of Typical Medium-Sized Nonprofit Diversity of Board Structures Typical Cycle of Operations in Nonprofits Nonprofit Programs, Configurations and Types
Appendix G: Worksheets
•
• •
Worksheet #1: Plan for Plan 1.1 Is Nonprofit Ready for Strategic Planning? 1.2 Organize Planning Committee? 1.3 Why Do Strategic Planning Now? 1.4 What is Organizational Scope of Plan? 1.5 What Strategic Planning Approach Might Be Used? 1.6 How Might Strategic Planning Approach Be Followed? 1.7 What Time Span Will Be Used? 1.8 What Schedule Might Be Used? 1.9 Who Will Be Involved from Nonprofit? How? When? 1.10 Outside Help Needed? When? How Get It? 1.11 Materials Needed? When? How Get Them? 1.12 Any Conventions for Use of Terms? 1.13 Provide Planning Guide to Planners? 1.14 Develop Organizational Profile 1.15 How Will You Get "Buy In" When Announcing Process? 1.16 How Will You Train About Approach to Strategic Planning? Worksheet #2: Primary Client Analysis Worksheet #3: Stakeholder Analysis
• • • • • • • • • •
Worksheet #4: Environmental Scan Worksheet #5: Collaborator Analysis Worksheet #6: Competitor Analysis Worksheet #7: Opportunities and Threats Worksheet #8: Strengths and Weaknesses Worksheet #9: Strategic Issues Worksheet #10: Mission, Vision and/or Values Worksheet #11: Strategic Goals Worksheet #12: Strategies Worksheet #13: Action Planning
Appendix H: Tools to Identify Strategies
• • • • •
Tool #1: Guidelines to Problem Solving and Decision Making Tool #2: Organic Philosophy of Problem Solving Tool #3: SWOT Grid Analysis Tool #4: Internal Nonprofit Problems and Strategies to Address Each of Them Tool #5: Guidelines for Successful Organizational Change
Field Guide to Nonprofit Program Design, Marketing and Evaluation by Carter McNamara, MBA, PhD, partner in Authenticity Consulting, LLC Includes worksheets in an appendix, as well as on-line for more flexible use. If you'd first like to read some of the high praise that our customers give us regarding our publications, click here. This book is used by a variety of educational institutions. Contact us if you are an educator. Comprehensive, Integrated and Practical Resource About Nonprofit Program Design, Marketing and Evaluation To effectively design a program, you must have clear understanding of the program's clients and their needs to be met by the program. That understanding comes from conducting an effective marketing analysis. To effectively advertise and promote a program, you must have clear understanding of the program's clients, their needs and their habits, along with the benefits of the program to the clients. To effectively evaluate a program, you must have clear understanding of the program's goals and intended outcomes, and integrate indicators of success into the program's design well before the program even starts operating. Thus, the activities of program design, marketing and evaluation are highly integrated and should be treated as such, ideally in one comprehensive publication (like this one), rather than across several. This guidebook provides clear, concise and comprehensive guidelines for all critical aspects of designing, marketing and evaluating a nonprofit program. Guidelines are
written in an easy-to-implement style, resulting in a highly practical resource that can be referenced at any time during the life of a nonprofit program. This guide can be used to:
• • • • • •
Evolve strategic goals into well-designed programs, guaranteed to meet needs of clients. Develop very credible nonprofit fundraising proposals, evaluation plans and business plans. Ensure focused and effective marketing, including sales, advertising and promotions. Evaluate effectiveness and efficiencies of current programs in delivery of services to clients. Evaluate program performance against goals and outcomes. Understand how a program really works in order to improve or duplicate the program.
This hands-on guide is ideal for:
• • • • •
Executives and managers of nonprofits Members of nonprofit Boards of Directors Nonprofit consultants and service providers Foundations, government and corporate donors Educators
Increase Results of Your Fundraising! One of the first things that funders look for in a grant proposal is the description of the design of the program. Description of a very well-designed program, including with a clear evaluation plan, greatly increases the chances that the program will be funded. This guidebook shows you how to design a program that consistently meets the needs of its clients, and does so in a highly effective and efficient fashion. Includes Step-by-Step Guidelines, Materials and Worksheets to:
• • • • • • • • • •
Understand the "system" of a nonprofit organization and program Ensure successful planning for program development, marketing and evaluation Conduct your preparatory strategic planning Design your program logic model Conduct your program market analysis Plan your program start-up and development Plan your program's ongoing management and operations Plan your program's finances Plan your program's approach to evaluation Assemble numerous plans (see below)
100s of Guidelines and 25 Worksheets to Assemble These Plans! By following the guidelines to complete the various worksheets, you can quickly assemble plan documents for:
• •
Program start-up and development plan Marketing plan
• • • • • • •
Advertising and promotions plan Sales plan Customer service plan Operations plan Fundraising proposal Business plan Program evaluation plan, including implementation, process, goals-based and/or outcomes evaluation
Includes "Business Research Methods 101" The guidebook includes guidelines to conduct highly practical market research activities for your program development, marketing or evaluation. Includes:
• • • • • • • • • • •
Guidelines to plan your market research Overview of methods to collect data during research How to conduct highly ethical research Guidelines to conducting observations Guidelines to developing questionnaires Guidelines to conducting interviews Guidelines to conducting focus groups Guidelines to developing case studies Guidelines to conducting pilot research Some major sources of market research information Guidelines to analyzing and interpreting research results Table of Contents
Top-level description of this guidebook is located here. Part I: Preparing for Program Development and Evaluation Understanding Nonprofit Organizations and Programs
• • • • • • •
Benefits of Systems View Understanding "System" of Nonprofit Organization System Direction: Mission, Goals and Strategies What is a Nonprofit Program? Organization Chart of Typical Small/Medium Nonprofit Organization Understanding "System" of Nonprofit Program (Logic Model) Understanding Life Cycles of Nonprofit Organizations and Programs
Understanding General Planning Process
• • •
Basic Planning Process and Terms Guidelines to Ensure Successful Planning and Implementation Guidelines to Ensure Successful Program Development and Evaluation
Approaches to Program Planning
• • • • •
"Build It and They Will Come" Seat-of-the-Pants Incremental Nonprofit Business Planning Nonprofit Business Development
Basics of Strategic Planning
• • •
All Else Flows from Strategic Planning Basic Guidelines to Develop Strategic Plan New Nonprofits: Start Small, Start Simple, But Start
Part II: Program Planning Chronology of Activities Developing Program Framework (Logic Model)
• • • • • • •
Assessment of Community Needs and Interests Vision for Program Participants Desired Outcomes for Program Participants Methods to Help Program Participants Achieve Desired Outcomes Outcomes Goals/Targets and Indicators Toward Hitting Aimed Targets Outputs/Tangibles Produced by Model Preliminary Program Logic Model
Market Analysis
• • • • • • • • • • • • •
Target Markets and Their Unique Features Perceived Program Benefits to Each Target Market Packaging Unique Value Proposition What Name Will You Use for Your Service? What Price Should You Charge? How Should Clients Pay? Who Are Your Competitors? Who Are Your Collaborators? What Laws and Regulations Must You Follow? Protect Your Creation with Patents, Trademarks/Servicemarks and/or Copyrights? Finalize Description of Each of Your Services Summary of Remaining Marketing Analysis Tasks and Considerations Marketing Goals
Planning Program Development and Ongoing Operations
• • • • • • •
Developing Program "From the Ground Up" Advertising and Promotions Sales and Service Delivery of Services Personnel / Staffing Materials and Supplies Facilities and Equipment
Planning Program Finances
• •
Key Processes and Terms Developing Program Budget
Part III: Program Evaluation Understanding Program Evaluation
• • • • •
Myths About Program Evaluation So What is Program Evaluation? Reasons To Do Program Evaluation Basic Ingredients Major Considerations to Design Your Program Evaluation
Common Types of Program Evaluation
• • • •
Implementation Evaluation ("What Are We Doing?") Process Evaluation ("How Does Program Work?") Goals-Based Evaluation ("Are We Achieving Goals?") Outcomes Evaluation ("What Are Impacts On Clients?")
Planning Your Program Evaluation
• • • • • • • • • • • • •
Should You Hire Program Evaluator? Who Are Your Audiences of Your Evaluation? What Management Decisions Do You Need to Make About Program? What Evaluation Questions Should You Answer? What Information Is Needed to Answer Evaluation Questions? What Are Best Sources of This Information? What What Are Best Methods to Collect Information? How Will You Analyze and Interpret Your Results? How Will You Report Your Evaluation Results? Who Should Conduct the Evaluation? Have Your Evaluation Plan Reviewed -- Tested, if Possible Conduct Ethical Research -- Information-Release Form Pitfalls to Avoid During Evaluation Planning
Part IV: Assembling and Implementing Plans Assembling Plans
• • • • • • • • • •
Sections Common to Many Plan Documents Assembling Program Development Plan Assembling Marketing Plan Assembling Advertising and Promotions Plan Assembling Operations / Management Plan Assembling Staffing Plan Assembling Nonprofit Business Plan Assembling Fundraising Proposal Assembling Program Evaluation Plan Assembling Outcomes-Based Evaluation Plan
Implementing Plans
• • •
Role of Leadership (Governance and Executives) Tools to Track Status of Implementation Capture Learnings from Implementation of Plans
Appendix A: Glossary of Useful Terms Appendix B: Worksheets
• • • • • • • • • • • • • • • • • • • • • • • • • • • •
Assessment of Community Needs and Interests Vision for Program Participants Desired Outcomes for Program Participants Methods to Help Program Participants Achieve Desired Outcomes Outcomes Goals/Targets and Indicators Toward Hitting Aimed Targets Preliminary Program Logic Model Target Markets, Their Unique Features and Perceived Program Benefits Packaging Unique Value Proposition Name for Service Pricing Competitors Collaborators Laws and Regulations Patents, Trademarks/Servicemarks and/or Copyrights Description of Each of Your Services Summary of Remaining Marketing Analysis Tasks and Considerations Marketing Goals Program Development Advertising and Promotions Sales and Service Delivery of Services Personnel / Staffing Materials and Supplies Facilities and Equipment Planning Your Program Budget Planning Your Program Evaluation Planning Your Outcomes-Based Evaluation
Appendix C: Conducting Complete Organizational Assessment
• • • • • •
Legal Governance Human Resources (Staff and Volunteers) Planning (Strategic, Programs and Evaluation) Financial Fundraising
Appendix D: Basic Methods in Business Research
• •
Planning Your Business Research Overview of Data Collection Methods
• • • • • • • • • •
Ethics: Information Release Form Guidelines to Conduct Observations Guidelines to Developing Questionnaires Guidelines to Conducting Interviews Guidelines to Conducting Focus Groups Guidelines to Developing Case Studies Guidelines to Conducting Pilot Research Various Convenient Methods to Collect Information Some Major Sources of Market Research Information Analyzing and Interpreting Results
Appendix E: Resources for Nonprofits
• • • • •
Free Management Library(SM) Free Nonprofit Micro-eMBA(SM) Organizations Free, On-line Discussion Groups Free, On-Line Newsletters
Appendix F: Major Methods of Advertising and Promotions
• • •
Standard Tools and Methods Promotional Activities Through the Media Unique and Special Promotional Activities and Events
