If you need help on setting up a charity and managing it effectively, ask our librarians to see the guide, Starting and Building a Nonprofit by Peri H. Pakroo. The handbook from Nolo Press provides practical information on a number of topics, ranging from incorporating and selecting a name, to budgeting, fundraising, and accounting practices.
Another basic reference book you can explore is the Nonprofit Handbook by Gary Grobman. The new fifth edition released this year contains a new chapter on program evaluation. In addition, the book contains chapters that briefly discuss bylaws, risk management, e-commerce, online fundraising, and other key areas.
If you are interested in online information, try these web resources below:
The Foundation Center's Establishing a Nonprofit Organization online tutorial
The Foundation Center's Webinar Series for Nonprofit Startup Organizations
Idealist.org's FAQs for start-up nonprofits
8/22/2008
Nonprofit Marketing: A Benchmarking Survey
The American Marketing Association and communications firm Lipman Hearne conducted a survey earlier this year to provide charities with benchmarking data on marketing at nonprofit organizations. Here are selected findings, based on responses from more than 1,012 participants.
Priorities: Nonprofits currently rate building awareness and revenue generation as top priorities. In five years, however, organizations expect revenue generation to be a greater challenge.
Budgets: The data indicates that marketing budgets are generally 2% to 3% of the operating budget (excluding salaries and benefits). Larger organizations spend a smaller percentage on marketing budgets.
Evaluation: Many participants indicate that their organizations are not measuring web activity effectively (28% do not track web statistics).
For full results of the survey, download the report, The State of Nonprofit Marketing: A Report on Priorities, Spending, Measurement and the Challenges Ahead from the Lipman Hearne web site (registration required).
Priorities: Nonprofits currently rate building awareness and revenue generation as top priorities. In five years, however, organizations expect revenue generation to be a greater challenge.
Budgets: The data indicates that marketing budgets are generally 2% to 3% of the operating budget (excluding salaries and benefits). Larger organizations spend a smaller percentage on marketing budgets.
Evaluation: Many participants indicate that their organizations are not measuring web activity effectively (28% do not track web statistics).
For full results of the survey, download the report, The State of Nonprofit Marketing: A Report on Priorities, Spending, Measurement and the Challenges Ahead from the Lipman Hearne web site (registration required).
8/15/2008
Funding for Overhead Expenses
A common challenge for nonprofit organizations is obtaining funding to cover administrative costs, especially when foundations limit how much overhead they are willing to cover in their grants.
What’s the typical limit for overhead costs as part of a program grant? Results from a recent survey conducted by the Center on Philanthropy at Indiana University indicated that the median percentage permitted by foundations was 15% of direct program costs. Foundations often allow nonprofits to allocate these funds for salaries, supplies, and other costs.
Some organizations may submit proposals specifically for overhead expenses. In those instances, foundations are more likely to fund strategic planning initiatives and staff training than employee salaries.
For additional survey results, download the Paying for Overhead Study at the Center on Philanthropy's web site.
What’s the typical limit for overhead costs as part of a program grant? Results from a recent survey conducted by the Center on Philanthropy at Indiana University indicated that the median percentage permitted by foundations was 15% of direct program costs. Foundations often allow nonprofits to allocate these funds for salaries, supplies, and other costs.
Some organizations may submit proposals specifically for overhead expenses. In those instances, foundations are more likely to fund strategic planning initiatives and staff training than employee salaries.
For additional survey results, download the Paying for Overhead Study at the Center on Philanthropy's web site.
8/08/2008
Understanding the Executive Search Process
One of the most important responsibilities for nonprofit boards is determining who will be the next executive director for the organization. The search process can be complex and generally requires careful planning. Consultant Barbara J. Gilvar shares her expertise in the book, The Art of Hiring Leaders: A Guide for Nonprofit Organizations. Some of the key topics covered in the volume include:
-early actions steps for board members
-forming a search committee
-legal considerations
-communication issues
-recruiting candidates
-choosing finalists
Appendices contain material on hiring interim executives and using consultants.
The book contains a chapter on transition planning. If you require additional information on executive transitions, visit the Annie E. Casey Foundation web site for a special monograph series on this topic.
-early actions steps for board members
-forming a search committee
-legal considerations
-communication issues
-recruiting candidates
-choosing finalists
Appendices contain material on hiring interim executives and using consultants.
The book contains a chapter on transition planning. If you require additional information on executive transitions, visit the Annie E. Casey Foundation web site for a special monograph series on this topic.
8/05/2008
Foundations: The European Experience
If you are interested in expanding your knowledge of civil society and would like to look beyond the strategies used by American foundations, there is a new book from the Alliance Publishing Trust that may suit your needs. Philanthropy in Europe: A Rich Past, A Promising Future contains 13 in-depth foundation profiles to help you understand the history and programs of each grantmaker. In addition, six essays by leading experts explore issues facing European foundations. The volume concludes with an analysis of why the European Union needs foundation laws that facilitate international activities.
Philanthropy in Europe was edited by Norine MacDonald, president of the Gabriel Foundation, and Luc Tayart de Borms, managing director of the King Baudouin Foundation.
Philanthropy in Europe was edited by Norine MacDonald, president of the Gabriel Foundation, and Luc Tayart de Borms, managing director of the King Baudouin Foundation.
7/30/2008
Successful Grant Proposals
The next time you visit our library/learning centers, be sure to ask to see the new Foundation Center publication, The Grantseeker’s Guide to Winning Proposals. Those of you who are familiar with our popular Guide to Winning Proposal series will find 35 new sample proposals that have approved by foundations. Each proposal is accompanied by a critique from the decision-maker who awarded the grant.
The Guide provides several access points to help you can target the type of proposal you need:
-Browse the table of contents to find examples for single or multiyear special projects, general operating support, staffing/salaries, start-up funds, and more.
-Note the special chapters on the letter proposal, letter of inquiry, cover letter, and budget.
-Don’t forget to check the index to help you explore proposals on a number of subjects, such as advocacy, community development, education, health, and social justice. In addition, the proposals are indexed by population groups served, and by special features as well (such as timelines and evaluation plans).
Need more help on proposal writing? Visit the Get Started area of our web site to learn about our training, audiobook, and other guides.
The Guide provides several access points to help you can target the type of proposal you need:
-Browse the table of contents to find examples for single or multiyear special projects, general operating support, staffing/salaries, start-up funds, and more.
-Note the special chapters on the letter proposal, letter of inquiry, cover letter, and budget.
-Don’t forget to check the index to help you explore proposals on a number of subjects, such as advocacy, community development, education, health, and social justice. In addition, the proposals are indexed by population groups served, and by special features as well (such as timelines and evaluation plans).
Need more help on proposal writing? Visit the Get Started area of our web site to learn about our training, audiobook, and other guides.
7/28/2008
A New Guide on Founder’s Syndrome
Effective nonprofits often need to adapt to new conditions and may expand operations to provide additional services. What if the founder of the organization sees things differently from board members or key leaders at the nonprofit? The new BoardSource guide, Moving Beyond Founder’s Syndrome to Nonprofit Success, explores strategies that founders and board members can use to address these types of issues. Eight case studies are included to help you cope with different scenarios. Here are some highlights from the volume:
-Suggests tips for board members and founders during the initial phases of a nonprofit’s life cycle when the founder is indistinguishable from the organization’s work.
-Recommends what can be done when a founder avoids growth opportunities, or seeks to expand at any cost.
-Explores the difficulties that may arise for a new chief executive when the founder remains as a staff member.
-Discusses succession planning and provides advice for dealing with a founder’s sudden resignation.
Moving Beyond Founder’s Syndrome to Nonprofit Success was written by Addie Nelson Backlund, executive director at the American-Italian Cancer Foundation, and Thomas A. McLaughlin, a senior manager of Grant Thorton LLP and a contributing editor for the NonProfit Times.
-Suggests tips for board members and founders during the initial phases of a nonprofit’s life cycle when the founder is indistinguishable from the organization’s work.
-Recommends what can be done when a founder avoids growth opportunities, or seeks to expand at any cost.
-Explores the difficulties that may arise for a new chief executive when the founder remains as a staff member.
-Discusses succession planning and provides advice for dealing with a founder’s sudden resignation.
Moving Beyond Founder’s Syndrome to Nonprofit Success was written by Addie Nelson Backlund, executive director at the American-Italian Cancer Foundation, and Thomas A. McLaughlin, a senior manager of Grant Thorton LLP and a contributing editor for the NonProfit Times.
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