Cindy Joyce’s Post

Most nonprofits fail to track this one crucial metric (and how CPAS changes that). You might think your nonprofit is doing everything right: -tracking donations -monitoring program outcomes -keeping an eye on staff efficiency But there’s one metric that often goes unnoticed, and it’s the key to unlocking true, sustainable impact. It’s all about ‘Stakeholder Engagement’. Most organizations focus heavily on the services they provide, but what about the people who make those services possible? Stakeholders—whether they’re donors, volunteers, or community partners—are the lifeblood of any nonprofit. Yet, tracking their engagement often gets pushed to the back burner. Here’s why that’s a problem: When you fail to monitor stakeholder engagement, you’re missing out on critical insights. 1. Are your donors truly invested in your mission, or are they just giving out of habit? 2. Are your volunteers feeling connected and valued, or are they burning out? 3. Are your community partners actively collaborating, or are they drifting away? Without a clear understanding of these dynamics, your nonprofit could be losing valuable support without even realizing it. That’s where CPAS comes in. The Contract Performance Analysis System (CPAS) isn’t just a tool for tracking services and staff efficiency. It’s a game-changer for understanding stakeholder engagement. CPAS provides real-time data on how engaged your stakeholders are, helping you identify trends, spot potential issues, and take proactive steps to strengthen these vital relationships. Here’s how CPAS helps you focus on what really matters: 𝗘𝗻𝗵𝗮𝗻𝗰𝗶𝗻𝗴 𝗖𝗹𝗶𝗲𝗻𝘁 𝗥𝗲𝗹𝗮𝘁𝗶𝗼𝗻𝘀𝗵𝗶𝗽𝘀: CPAS allows you to efficiently manage client interactions and services through its Client Management and Activity Tracking features. By maintaining detailed records of each client’s engagement and service history, you can ensure that their needs are met consistently and effectively. This personalized approach strengthens client relationships and improves the overall impact of your nonprofit’s programs. 𝗦𝘁𝗿𝗲𝗻𝗴𝘁𝗵𝗲𝗻𝗶𝗻𝗴 𝗖𝗼𝗺𝗺𝘂𝗻𝗶𝘁𝘆 𝗣𝗮𝗿𝘁𝗻𝗲𝗿𝘀𝗵𝗶𝗽𝘀: CPAS’s comprehensive reporting tools, including Adverse Childhood Experiences Reports, Community Resource Connector Reports, and Quarterly Reports, offer valuable insights into the progress and effectiveness of your community collaborations. By using System Reports to manage audits and track outcomes, you can ensure that your partnerships are productive and aligned with your mission, fostering a more resilient and connected network for your nonprofit. By keeping a pulse on stakeholder engagement, you’re not just improving your nonprofit’s performance—you’re building a stronger, more resilient organization. Most nonprofits overlook this crucial metric. But you don’t have to. P.S) Repost this if you believe stakeholder engagement is key to nonprofit success.

Good Deeds Canada: Empowering the Nonprofit Sector Through Volunteerism According to recent data from Statistics Canada, the nonprofit sector significantly contributes to Canada's economy and social fabric, employing millions and driving substantial economic activity. This sector's success heavily relies on volunteerism, which is where Good Deeds Canada steps in. Good Deeds Canada, with its innovative approach to rewarding volunteers with deed dollars, is making a notable impact by addressing the sector's critical need for dedicated volunteers. Good Deeds Canada’s model directly supports the findings in the Statistics Canada report. By incentivizing volunteerism, Good Deeds Canada ensures that nonprofit organizations have a steady stream of committed volunteers, which is essential for their operations. This alignment with the sector's needs helps nonprofits operate more efficiently, thereby maximizing their economic and social contributions. The reward system not only motivates individuals to volunteer but also enhances volunteer retention, which is crucial for the sustainability of nonprofit activities. In essence, Good Deeds Canada exemplifies how targeted initiatives can bolster the nonprofit sector, as highlighted by Statistics Canada's data. By addressing volunteer scarcity through innovative rewards, Good Deeds Canada enhances the sector's capacity to meet its diverse challenges and opportunities. This synergy between data insights and practical action drives positive change, reinforcing the nonprofit sector's vital role in Canadian society.

Let’s talk… about leading a nonprofit. Running a nonprofit is hard. Not only do you have all the obligations of a for profit company, but you also have added obligations to the community. In a manner of speaking, nonprofits belong to the community. The community enters into an agreement that a nonprofit will be given certain privileges (think tax breaks) in return, the nonprofit will do something (think mission- care for the poor, keep the environment clean, etc) for the community. Nonprofit boards have been tasked with making sure that this agreement is upheld. That is why nonprofit boards have additional responsibilities- in a for profit board- members are worried about securing a financial return for investors- they have no obligation to the broader community. This paradigm changes the conversation that nonprofit leaders have with board members. It means that in addition to financial statements, there is a need to show programmatic outcomes- how is the community getting better because of the mission? And Non profit leaders need to show how fundraising is impacting the success of the organization. Donors represent the community as investors and nonprofit board members are obligated to make sure that these dollars are being invested in the best way possible. Too often conversations about fundraised dollars aren’t looking at the complete impact of fundraising. This is because fundraising conversations have relied on horrible metrics: Total Dollars Raised and Cost to Raise a Dollar. Why are these metrics horrible? Total Dollars Raised is horrible because it is a lagging indicator of program success. It shows what happened- past tense- it doesn’t look forward and it doesn’t provide an opening for conversation on how to make it better. It merely reports. It provides no insight into how an organization is doing or if they are improving. Cost to Raise a Dollar- I hate this metric. Whoever thought this thing up should be taken into town square and put in one of those head/ hand wood things and be made to stay there for a week. Why on earth would you highlight a metric that routinely shows that the best thing you can do for you fundraising  program is to eliminate it by cutting expenses? It doesn’t make any sense. There has to be a better way. And there is. To truly talk about your fundraising success you need to look at leading and lagging indicators of success. The folks at Board Source (link to article in the comments) have done a great job of framing up a better set of metrics to define fundraising success. This is part of a new way for nonprofit leaders, board members, and community partners to look at philanthropy. Want to learn more? Go over to www.amponow.com to see what’s happening. Stay tuned…. AMPO is just getting started.

5 Reasons Why Nonprofits Fail in Idaho Starting a nonprofit in Idaho can be challenging, but understanding the common pitfalls can help you build a sustainable organization. Before we dive into the steps, if you're looking to start a nonprofit in Idaho, Rooney's Nonprofit Starter Pack is here to guide you through each step of the startup process, including raising funds to get your nonprofit up and running. 1. Lack of clear strategic planning: A lack of clear strategic planning is a major reason nonprofits fail in Idaho. Idaho's unique socioeconomic landscape requires nonprofits to understand the specific needs of their communities and tailor their programs accordingly. To avoid this pitfall, invest time and resources in creating a detailed strategic plan that outlines your goals, target audience, strategies, and metrics for success. 2. Inadequate funding: Nonprofits in Idaho often face challenges in securing adequate funding, which can lead to insufficient fundraising and financial management. Competition for grants and donations can be fierce, particularly for smaller organizations. To overcome this obstacle, explore various funding avenues, including grants, individual donations, corporate sponsorships, and earned income from fee-for-service programs. 3. Inadequate board governance Inadequate board governance can also lead to nonprofit failure. The board of directors plays a crucial role in guiding the nonprofit's direction and ensuring its financial health. In Idaho, where the nonprofit sector is relatively small, finding qualified and engaged board members can be difficult. To build a strong board, seek out individuals with diverse skills and experience who are passionate about your mission. 4. Failure to Adapt Failure to adapt to changing needs can also lead to nonprofit failure. Idaho's demographics, economy, and community needs are constantly shifting, and nonprofits must adapt to stay relevant. To stay ahead of the curve, regularly evaluate your programs and services to ensure they meet the evolving needs of the communities you serve. Be open to new ideas and approaches, and embrace change and innovation. 5. Marketing and Outreach Finally, underestimating the importance of marketing and outreach can lead to nonprofit failure. Building awareness of your mission, engaging with potential donors, and communicating your impact are essential for long-term sustainability. By understanding these common reasons for failure and proactively addressing them, you can build a sustainable nonprofit in Idaho that makes a lasting impact on the lives of Idahoans. Thanks for watching! If you found this video helpful, please subscribe to our channel for more nonprofit tips and resources. Share this video with someone who's making a difference in Idaho, and let's build a stronger nonprofit community together! Visit Nonprofit-school.com to learn more.

How a Nonprofit Can Own a For-Profit: Legal Framework and Benefits PT.1 Nonprofits traditionally focus on social, educational, or charitable missions, leveraging donations, grants, and volunteer efforts to sustain their activities. However, as financial landscapes evolve, many nonprofits explore innovative strategies to enhance their impact and financial stability. One such strategy involves owning a for-profit subsidiary. Let's jump in Understanding the Basics: Nonprofit vs. For-Profit Entities 1. Nonprofit Organizations: - Mission-Driven: Nonprofits exist to fulfill a charitable, educational, scientific, or religious purpose. - Tax-Exempt Status: They often qualify for tax-exempt status under Section 501(c)(3) of the Internal Revenue Code (IRC), meaning they do not pay federal income tax on income related to their exempt purposes. - Profit Distribution: Earnings cannot benefit private individuals or shareholders; profits must be reinvested in the organization’s mission. 2. For-Profit Entities: - Profit-Driven: For-profits exist primarily to generate profit for their owners or shareholders. - Taxable: Subject to federal, state, and local taxes on their earnings. - Profit Distribution: Profits can be distributed to owners or shareholders as dividends or reinvested in the business. Legal Framework for Nonprofits Owning For-Profits 1. Permissibility: - Nonprofits can own for-profit subsidiaries. The IRS and state laws generally permit this, provided the subsidiary's activities align with the nonprofit’s mission and do not jeopardize its tax-exempt status. 2. Formation and Structure: - Subsidiary Structure: The most common structure is a parent-subsidiary relationship where the nonprofit acts as the parent organization, and the for-profit operates as a wholly-owned subsidiary. - Corporate Form: The for-profit subsidiary can take various corporate forms (e.g., corporation, LLC), depending on the strategic needs and regulatory environment. 3. Tax-Exempt Status Protection: - Unrelated Business Income Tax (UBIT): Nonprofits must be cautious of UBIT, which taxes income from activities not substantially related to the nonprofit’s exempt purpose. The for-profit’s activities must either be related to the nonprofit’s mission or be structured to minimize UBIT implications. - Arm’s Length Transactions: All transactions between the nonprofit and its for-profit subsidiary must be conducted at arm’s length to avoid conflicts of interest and ensure fair market value. 4. Operational Independence: - The for-profit subsidiary should operate independently, with its own board of directors and governance structures to maintain clear legal and operational separation. 5. Legal and Regulatory Compliance: - Both entities must comply with applicable federal, state, and local laws, including corporate governance, tax filings, and reporting requirements. Regular audits and legal reviews can help ensure compliance. PT. 2 soon

How to start a nonprofit in Iowa!! Ready to make a difference in the Hawkeye State? Starting a nonprofit in Iowa can be a rewarding journey, but it requires careful planning and execution. Don't worry, we've got you covered! Before we dive in, if you're looking to start a nonprofit in Iowa, Rooney's nonprofit starter pack is available to guide you through each step of the start-up process, including raising funds to get your nonprofit up and running. Back to the steps to start a nonprofit in Iowa: First, choose a name that resonates with your mission and is available in Iowa. This is a crucial step, as your name will be the face of your organization. Take your time, and make sure it's a name that reflects your values and purpose. Next, build your team by recruiting an incorporator and assembling a diverse board of directors. Your board will be responsible for making important decisions, so choose individuals who share your vision and are passionate about your cause. Then, appoint a registered agent in Iowa to receive legal documents on behalf of your nonprofit. This person will be responsible for receiving important documents, such as tax filings and legal notices. After that, file the Articles of Incorporation to make your organization official. This document will include basic information about your nonprofit, such as its name, purpose, and structure. Once you've filed your Articles of Incorporation, obtain a federal Employer Identification Number (EIN) and state tax identification numbers. These numbers will be used to identify your nonprofit for tax purposes. Next, establish bylaws to outline your nonprofit's governance and operations. Bylaws will serve as a guide for your board and staff, ensuring everyone is on the same page. Hold an initial meeting to approve your bylaws, appoint officers, and open a bank account. This meeting is a crucial step in setting up your nonprofit's operations. Apply for 501(c)(3) status with the IRS to gain tax exemption and access to grants and fundraising opportunities. This status will also exempt your donors from paying taxes on their donations. Register for charitable solicitation in Iowa to legally raise funds. This registration will allow you to solicit donations from the public. Finally, check for any local licenses or permits you might need, and stay on top of annual filing requirements to maintain your nonprofit's good standing. Starting a nonprofit in Iowa requires careful planning and execution, but with dedication and perseverance, you can make a lasting difference in your community. Remember, starting a nonprofit is just the first step. The real work begins when you start serving your community and making a positive impact. Together, let's build a stronger nonprofit community in Iowa! #nonprofit #Iowa #startanonprofit #501C3 #charity #impact

A common (and mistaken) belief in nonprofit board recruitment is that more is better. If the organization has more board members, more work will get done and more money will be raised. Wrong. It's counterintuitive but having a smaller board is better for engagement, accountability, and productivity. It creates an overall more positive experience for board members which helps with retention. The "ideal" nonprofit board size is around 9-11 people. This will be surprising for many but if you think about it, it's always the same core people on the board carrying the majority of the work being done. Not everyone needs to serve on the board of directors or trustees to contribute to the organization in a leadership capacity. This is why committees are great! Having a development/fundraising committee to engage large donors and fundraising volunteers is a perfect fit. Board governance is a higher level of responsibility, time, and financial commitment; because someone is a major donor, it is not a good reason alone to ask them to serve on the board. Your organization can create other structures like honorary councils, etc. to recognize those folks and involve them in the organization. Board service should focus on board governance - setting direction, providing oversight, and ensuring necessary resources. Stop using the terms "working" boards and "fundraising" boards. All boards have a responsibility to work (maybe in different ways) and ensure necessary (financial) resources. Who is on your board, how they work, and how they fundraise may look different based on organizational and board lifecycles (yes, boards have lifecycles just like organizations do) but these terms are outdated and inaccurate. These aren't good reasons for bigger board sizes. It really is all about who not how many people are on your board. It's easier for board members to hold each other accountable when there aren't so many people on the board. Too many people on the board and folks get lost in the mix. This week I had a board member say to me, "Why I am even on this board? It's like I don't do anything and they don't need me." Board members should feel needed, wanted, and engaged; it becomes much harder to do that when there are a plethora of board members. It's easier to disappear and hope others do the work on a larger board. Before recruiting board members, develop a strong and documented recruitment process that begins with a board self-assessment. Ask current board members what is working about their board experience and engagement; learn what isn't working. You may find that adding board members isn't the answer but that putting more time and energy into engaging the existing board members is the way to go. I would rather have 10 very engaged board members doing what they signed on to do than 25 board members who demonstrate a variety of engagement levels. Consider what kind of board members you need for success, rather than how many you can recruit.

How to Start a Nonprofit in Kentucky Starting a nonprofit in Kentucky can be a rewarding journey, but it can also be complex and challenging. Have you ever wondered how to start a nonprofit in Kentucky? Before we dive in, if you're looking to start a nonprofit in Kentucky, Rooney's nonprofit starter pack is available to guide you through each step of the start-up process, including raising funds to get your nonprofit up and running. Here are the steps to start a nonprofit in Kentucky: Step 1: Choose a Name Choosing a name for your nonprofit is an important first step. Your name should be unique, memorable, and reflect the mission and purpose of your organization. Make sure to check with the Kentucky Secretary of State's office to ensure that your name isn't already in use. Step 2: Build Your Team Building a strong team is essential for any nonprofit. This includes your board of directors, officers, and any other key staff members. Your team should be passionate about your mission and have the skills and expertise needed to help your nonprofit succeed. Step 3: Appoint a Registered Agent You'll need to appoint a registered agent who will receive legal documents on behalf of your nonprofit. This can be an individual or a business entity that is authorized to do business in Kentucky. Step 4: File Articles of Incorporation Next, you'll need to file Articles of Incorporation with the Kentucky Secretary of State's office. This document will include basic information about your nonprofit, such as its name, purpose, and structure. Step 5: Obtain an EIN After you've filed your Articles of Incorporation, you'll need to obtain an Employer Identification Number (EIN) from the IRS. This is a unique identifier that will be used to track your nonprofit's financial activity. Step 6: Establish Bylaws Your bylaws will serve as a guide for how your nonprofit will operate. They should include information about your nonprofit's structure, governance, and decision-making processes. Step 7: Hold an Initial Meeting Once you've established your bylaws, you'll need to hold an initial meeting with your board of directors. This meeting should include the election of officers, the adoption of bylaws, and the establishment of a bank account. Step 8: Apply for 501(c)(3) Status To be eligible for tax-exempt status, you'll need to apply for 501(c)(3) status with the IRS. This can be a complex and time-consuming process, but it's essential for nonprofits that want to be eligible for grants & donations. Step 9: Register for Charitable Solicitation Finally, you'll need to register for charitable solicitation with the Kentucky Attorney General's office. This will allow you to legally solicit donations from the public. By following these steps, you can establish a successful nonprofit in Kentucky that makes a lasting difference in your community. Together, let's build a stronger nonprofit community in Kentucky! #nonprofit #Kentucky #startanonprofit #501C3 #charity #impact

As a nonprofit leader, you work tirelessly to fulfill your organization's mission and ensure its sustainability. But how much can you compensate yourself for all the dedication and effort you put in daily? If you run a nonprofit organization, determining your compensation is a key consideration. Your nonprofit's revenue can be divided into different categories. One important category is "program expenses," which includes the costs directly related to fulfilling your mission, such as program delivery and community outreach. Another crucial category is "administrative expenses," which covers the necessary operational costs, including salaries for key personnel like yourself. Determining a fair and reasonable compensation for yourself is essential. The IRS wants to ensure that nonprofit leaders are compensated appropriately and not excessively, considering the organization's size, budget, and the scope of responsibilities. To find the right balance, you need to ensure your compensation is comparable to what other nonprofit leaders in similar roles and organizations receive. Consider your job responsibilities and research compensation standards within the nonprofit sector. If you wear multiple hats, such as overseeing fundraising, managing programs, and handling administrative tasks, your compensation should reflect the complexity and scope of your role. On the other hand, if your involvement is more limited, your compensation might be lower. It's also crucial to consider the hours you invest in your organization. The more hours you work, the higher your reasonable compensation might be. While some suggest a straightforward approach to splitting revenue between program and administrative expenses, the reality is more nuanced. Each nonprofit is unique, and what works for one organization may not work for another. When determining your compensation, we recommend consulting with an expert familiar with nonprofit compensation standards. You can seek advice from a local CPA specializing in nonprofits or consult with our CPA firm to obtain a reasonable compensation report. Ensuring your compensation is fair and reasonable not only keeps your organization compliant but also helps maintain trust with donors, beneficiaries, and stakeholders. To ensure you meet IRS standards and maintain the trust of your community, we offer a comprehensive reasonable compensation report tailored for the top leaders of your organization. Contact our office today to complete your reasonable compensation report and ensure your compensation aligns with industry standards. https://bit.ly/20-min-chat

Ready to Learn from Others' Mistakes? Starting a nonprofit in Illinois can be a rewarding venture, but it's not without its challenges. Unfortunately, many nonprofits fail to achieve their goals and cease operations. Before we dive in, Rooney's nonprofit starter pack is available to guide you through the start-up process, including fundraising. Let's explore some common reasons why nonprofits fail in Illinois: One is poor planning. Poor planning can lead to nonprofit failure. This includes lack of research, unrealistic goals, and inadequate funding. For example, a nonprofit may fail to conduct a thorough needs assessment, leading to a lack of community support. They may also set unrealistic goals, such as trying to serve too many people without sufficient resources. This can lead to burnout and financial instability. Second, ineffective leadership can also lead to failure. This includes poor management, lack of vision, and inadequate communication. For instance, a nonprofit leader may fail to empower their team, leading to burnout and turnover. They may also lack a clear vision, causing the organization to drift without direction. This can lead to confusion and mismanagement. Third, insufficient funding can cause nonprofits to cease operations. This can include a lack of grants, donations, or other revenue streams. For example, a nonprofit may rely too heavily on a single funding source, leaving it vulnerable to financial instability. They may also fail to diversify their funding streams, leading to a lack of financial sustainability. This can lead to a decline in services and support. Fourth, inadequate governance can lead to nonprofit failure. This includes lack of oversight, poor decision-making, and inadequate accountability. For instance, a nonprofit board may fail to establish clear policies and procedures, leading to confusion and mismanagement. They may also lack diversity and expertise, leading to poor decision-making. This can lead to a lack of transparency and trust. Finally, failure to adapt to changing circumstances can also lead to nonprofit failure. This includes a lack of innovation, an inability to pivot, and a failure to respond to changing community needs. For example, a nonprofit may fail to adapt to changes in technology, leading to a decline in services and support. They may also fail to respond to changing community needs, leading to a lack of relevance and impact. Starting a nonprofit in Illinois requires careful planning, effective leadership, sufficient funding, adequate governance, and adaptability. By avoiding these common pitfalls, nonprofits can increase their chances of success and make a lasting impact in their community. Thanks for watching! Please subscribe for more nonprofit tips and resources! By understanding these common pitfalls, you can set your nonprofit up for success and make a meaningful difference in Illinois. Ready to start your nonprofit journey: Get started here: nonprofit-school.com