Introduction 1
About This Book 1
Foolish Assumptions 2
Icons Used in This Book 3
Beyond the Book 3
Where to Go from Here 4
Part 1: Getting Familiar with the Nonprofit Framework 5
Chapter 1: Journeying into the World of Nonprofit Organizations 7
What is a Nonprofit Organization? 8
Comparing for-profits to nonprofits 9
Introducing the coveted 501(c)(3) status for nonprofits 9
Knowing Your Mission Before Entering the Nonprofit World 11
Setting up a nonprofit 11
Making plans and being flexible 12
Embracing and Sharing Your Inspiration 13
Finding the Resources to Do the Job 14
Who is giving to nonprofit organizations? 15
Supporting your mission with fundraising 15
Chapter 2: Understanding What It Takes to Start a Nonprofit 17
Weighing the Pros and Cons of Starting a Nonprofit 18
Doing Your Homework First 19
Analyzing the competition 20
Identifying the right people to help you 20
Figuring out how youâll survive financially 21
Acknowledging the reality of whatâs ahead 22
Planning, plotting, and projecting 23
Understanding Nonprofit Ownership 24
Benefiting the public for the greater good 24
Being accountable and transparent 25
Looking at the Many Varieties of Nonprofits 26
Identifying nonprofits by their numbers 27
Adding rules and regulations to add to your file 28
Comparing Nonprofits and For-Profits 31
How theyâre alike 31
How they differ 32
Using a Fiscal Sponsor: An Alternative Approach 34
Examining common details of a fiscal sponsorship relationship 35
Finding a fiscal sponsor 36
Chapter 3: Prioritizing Building Your Board of Directors 37
Appreciating the Duties of a Nonprofit Board of Directors 38
Primary role: Preserving public trust 39
Secondary role: Dealing with planning, hiring, and other board tasks 41
Sharing responsibilities among the board, staff, and volunteers 42
Recruiting the Right People for Your Board 43
Incorporating diversity, equity, and inclusion in the boardâs composition 44
Keeping it fresh: Terms of service 46
Big boards or little boards 47
Choosing officers and committees 48
Introducing new and prospective members to the board and the organization 50
Putting Staff Members on Your Board 51
Using Your Board to Full Capacity 52
Encouraging commitment from board members 52
Holding effective board meetings 53
Chapter 4: Creating Your Mission Statement and Vision Statement 57
Honing Your Mission Statement 58
Keeping your mission statement short and sweet 60
Stating your mission â" the goal for services 60
Specifying who will be served by the nonprofit 61
Explaining how youâll accomplish your mission 61
Incorporating diversity, equity, and inclusion (DEI) into your mission statement 62
Imagining Your Future with a Vision Statement 63
Capturing your vision statement 63
Asking âWhere are we going?â and âWhy?â 65
Inviting Stakeholders to the Planning Table 66
Encouraging and embracing stakeholder input 67
Working together to finalize your statements 68
Living by Your Mission and Staying Fixed on the Vision 69
Chapter 5: Incorporating and Applying for Tax- Exemption Status 71
Creating a New Entity: The Nonprofit Corporation 72
Following your stateâs or territoryâs laws 73
Understanding the required governing documents 73
Deciding whether to have members in your corporation 74
Finding the best name 75
Writing the Articles of Incorporation 76
Crafting a heading 76
Article I 76
Article II 77
Article III 77
Article IV 78
Article V 78
Article VI 78
Article VII 78
Article VIII 79
Signed, sealed, and delivered 79
Securing Your Employer Identification Number (EIN) 80
Writing Your Organizationâs Bylaws 81
Holding Your First Board Meeting 82
Applying for Tax Exemption 82
Tackling Form 1023 online 83
Discerning between public charities and private foundations 85
Establishing public charity status 85
Describing your activities 86
Reporting salaries and conflicts of interest 88
Dealing with financial information 88
Collecting the other materials 89
Paying the fee 90
Navigating possible contribution barriers until tax-exemption status is approved 90
Chapter 6: Adhering to Nonprofit Status Requirements 91
Disclosing What You Need to Disclose 92
What you do need to show 92
What you donât need to show 93
Using the web to satisfy disclosure requirements 94
Avoiding Excessive Payments and Politicking 95
Determining reasonable pay and benefits 95
Using caution when getting involved in politics 96
Why all the fuss? Understanding the increased scrutiny by the IRS 97
Reporting to the IRS 98
Filing Form 990-N 99Taking it easy with the Form 990-EZ return 100
Tackling the long Form 990 104
Getting your Form 990 to the IRS 106
Reporting to Your State, Territory, and Local Governments 107
Part 2: Bringing Your A-Game to Nonprofit Management 109
Chapter 7: From the Top: Examining the Nonprofit Management Structure 111
Managing a Nonprofit: A Birdâs-Eye View 112
Appreciating the Governing Boardâs Role and Responsibilities 113
Understanding the boardâs management oversight duties 113
Protecting your board from liability 115
Redefining the Nonprofit Founderâs Role 116
Adding an Advisory Board 117
Expanding to Take On an Executive Director 118
Chapter 8: Strategic Planning: Embracing the Ongoing Process 121
Understanding the Importance of Planning 122
Making Your Organizationâs Strategic Plan 122
Getting ready 123
Working with your nonprofitâs mission and vision statements 124
Hearing from all your stakeholders 124
Surveying the external situation 126
Looking at the internal situation 127
Calling in the SWOT team 128
Putting the plan in writing 132
Adjusting your strategic plan when necessary 134
Putting Plans into Action 134
Defining and setting goals, objectives, strategies, and outcomes 134
Creating a work plan 136
Planning for Programs 137
Working as a team 137
Assessing needs 138
Brainstorming the resources needed to implement new programs 140
Facility Planning: Finding a Place to Do Your Work 142
How much space and of what kind? 142
Location, location, location 142
Owning, leasing, or taking a free ride 143
Making a move 145
Deciding to take on a capital project 145
Chapter 9: Evaluating Your Work: Are You Meeting Your Goals? 147
Knowing the Importance of Evaluation 148
Working Through the Evaluation Process 149
Selecting the right kind of evaluation 149
Planning for evaluation 152
Crafting valuable questions 153
Choosing evaluators: Inside or outside? 154
Conducting Your Evaluation 155
Analyzing Results and Putting Them to Work 156
Interpreting results 156
Using your evaluation to strengthen your work 158
Telling the truth 158
Sharing the evaluation results with your stakeholders 159
Chapter 10: You Can Count on Me! Working with Volunteers 161
Knowing Why People Volunteer 162
Designing a Volunteer Program 163
Considering a volunteer coordinator 165
Determining your need for volunteers 165
Writing volunteer job descriptions 166
Organizing volunteers 167
Hunting for Volunteers 169
Getting the word out 169
Looking for volunteers at other organizations 171
Finding volunteers with special skills 172
Hiring interns 172
Interviewing and Screening Volunteers 173
Managing Your Volunteers 175
Providing adequate training 175
Keeping good records 176
Insuring your volunteers 176
Saying farewell to bad volunteers 177
Showing Appreciation for Your Volunteers 177
Chapter 11: Working with Paid Staff and Contractors 179
Determining Your Staffing Needs 180
Getting Your Nonprofit Ready for Paid Employees 181
Developing your personnel policies 181
Exploring payroll setup options 184
Providing benefits and perquisites 184
Preparing to Hire 185
Composing a job description 185
Considering necessary qualifications 186
Establishing nonprofit salary levels 187
Announcing the position 188
Making the Hire 189
Looking at r©sum©s 189
Interviewing candidates 190
Digging deeper with references 192
Making your decision 193
Onboarding a New Hire 193
Confirming employment terms in writing 193
Getting your new hire started on the job 194
Evaluating your new hireâs progress 195
Looking to the future: Creating a professional development plan 195
Managing Employees 196
Recognizing what a manager or supervisor does 197
Clarifying the lines of communication 197
Following the reprimand-and-dismissal process 199
Working with Independent Contractors 200
Differentiating an independent contractor from an employee 201
Establishing the roles for independent contractors 202
Finding a consultant: Ask around 203
Interviewing consultants 204
Developing and executing the contract 204
Chapter 12: Money Matters: Preparing Budgets and Financial Reports 207
Making a Budget = Having a Plan 208
Beginning with zero 208
Defining a good budget 211
Budgeting based on your history 212
Understanding and isolating general administrative and fundraising costs 213
Accounting for in-kind contributions 213
Creating Budgets for Programs or Departments 214
Working Frequently with Your Budget 218
Projecting Cash Flow 219
Constructing your cash flow projection 219
Deciding what to do if you donât have enough 221
Borrowing to make ends meet 222
Putting money away to make a nonprofit strong 223
Keeping Your Books Organized and Up to Date 224
Differentiating the various accounting systems 224
Considering accounting software or an accountant 225
Reviewing the Numbers: Financial Statements and Audits 226
Preparing financial statements 226
Seeing the value of an audit 227
Knowing whether you need an audit 228
Reading Your Financial Statements 229
Getting to know the parts of a standard financial statement 229
Asking the right financial questions 230
Managing Financial Systems 232
Chapter 13: Marketing and Branding 235
Taking Care of the Basics 236
Designing a logo and letterhead 236
Preparing an organization overview or brochure 237
Creating a website 237
Producing annual reports and newsletters 239
Taking care of your service population â" your most important marketing tool 240
Discovering Who You Are: First Steps to Marketing 241
Recognizing the current market 242
Defining whom you want to reach and how 246
Reaching Your Audience via Mass Media 250
Planning for effective publicity 250
Developing a media list 251
Understanding how the media works 252
Submitting materials to your media contacts 253
Getting your event into community event calendars 254
Putting together public service announcements (PSAs) 255
Using Social Media for Fun and Profit 255
Developing a social media policy 256
Planning your social media posts 257
Choosing your social media platforms 258
Protecting your online reputation 260
Part 3: Raising Funds Successfully 263
Chapter 14: Creating a Fundraising Plan 265
Recognizing Who Can Raise Funds 266
Naming Possible Funding Sources 267
Weighing Your Fundraising Capacity 269
Drafting a Fundraising Plan 270
Setting a preliminary monetary goal 271
Asking whom you and your board members know 272
Researching and refining your prospect list 272
Plotting fundraising costs 274
Moving to an Action Plan 278
Planting the Seeds for a New Nonprofit 280
Hitting up family and friends before asking others 280
Raising funds with special events 281
Getting to know community foundations 281
Assessing your capabilities to apply for government grants 281
Chapter 15: Raising Funds from Individual Donors 283
Understanding Why People Give 284
Stating Your Case 285
Creating an Elevator Speech 288
Identifying Possible Donors 289
Drawing circles of connections 290
Getting a list of potential donors from your board of directors 291
Growing a Major Gift 292
Deciding who should do the asking 292
Preparing to make your request 293
Breaking the ice 293
Adopting the right attitude 293
Timing the request: An inexact science 294
Treading lightly when making the ask 294
Expressing gratitude for the gift 295
Raising Funds by Mail 295
Taking the direct-mail route 295
Inspiring volunteers to steer a letter-writing campaign 297
Raising Money the âEâ Way (Easily and Electronically) 299
Building and maintaining relationships by using email and related tools 299
Building your email address lists 301
Using your website as a cultivation tool 302
Setting up an online donation portal 303
Soliciting text message donations 305
Telemarketing: Dialing for Dollars 306
Perfecting a script 307
Training your board and volunteers as callers 308
Collecting the pledges 309
Chapter 16: Planning Onsite and Virtual Special Events 311
Thinking through the Whole Event 312
Using your budget to guide decisions 313
Sticking to your budget 316
Soliciting in-kind gifts for your event 318
Building your event committee 319
Setting a date and location 320
Setting Up Your Timeline 321
The first three months 321
Months four and five 322
Four weeks before the event 322
The week before the event 323
Spreading the Word 324
Setting social media to blast 324
Finding a news angle 325
Getting a mention on radio or TV 326
After the Event is Over 326
Chapter 17: Sleuthing for Grant Funding 329
Assessing Your Nonprofitâs Grant-Seeking Readiness 330
Planning for a Foundation Grant Proposal 331
Learning about funding priorities 332
Familiarizing yourself with types of foundations 333
Using the Foundation Directory Online to assemble a broad list of prospects 336
Digging deeper to narrow your prospects 340
Going for a Government Grant 342
Federal grants 343
Nonfederal government grants 345
Chapter 18: Writing an Award-Winning Grant Proposal 347
Attending to Pre-Proposal Tasks 348
Perfecting the letter of inquiry 348
Passing the applicant eligibility screening questionnaire 349
The Pitch: Writing a Competitive Grant Proposal 349
Starting out with the cover letter and executive summary 350
Introducing your organization and its operating history 351
Documenting the need for funding 352
Setting goals, SMART objectives, and proposed outcomes 353
Presenting (ta-da!) your project idea with evidence-based solutions 354
Presenting the management plan 356
Explaining how results will be measured 356
Talking about the budget 357
Showing where the rest of the money comes from: The sustainability section 359
Appending requested attachments 360
Familiarizing Yourself with Other Types of Written Funding Requests 361
Trolling for corporate grants or sponsors 361
Seeking general operating support 364
Asking for capacity building funding 365
Seed money: Proposing to form a new nonprofit 366
Following Through after Receiving Funding 367
Chapter 19: Capital Campaigns: Finding Lasting Resources 369
Beginning the Funding Plan 370
Preplanning your campaign 371
Developing a rough budget 372
Testing feasibility 373
Analyzing the results of your study 375
Developing a Case Statement 376
Building the Pyramid of Gifts 376
Starting at the top 377
Applying for grants as part of your capital campaign 378
Ending the quiet phase and moving into the public phase 379
Realizing the Benefits and Risks of Capital Campaigns 380
Part 4: The Part of Tens 383
Chapter 20: Ten Tips for Pivoting in Times of Uncertainty 385
Create an Emergency Operations Plan 386
Communicate When Making Hard Decisions 386
Step Back and Regroup 387
Set a Manageable Fundraising Goal 387
Collaborate with Others in Your Field 388
Share a Back Office 388
Place a Program within Another Agency 389
Merge with Another Nonprofit 389
Close with Dignity If Necessary 390
Complete the Governmentâs Closing Paperwork 391
Chapter 21: Ten Tips for Raising Seed Money 393
Ask 393
Hit Up People You Know 394
Tell Your Story and Donât Ramble 394
Show How Youâre Improving Lives 395
Use Numbers to Convey Urgency and Compassion 395
Research, Research, Research 396
Know Your Donorsâ Point of View 397
Build a Donor Pyramid 398
Make It Easy to Respond 398
Keep Good Records 398
Chapter 22: Ten Tips for Protecting Your Nonprofit 401
Assessing Your Risks 402
Planning for Emergencies 402
Filing Annual Federal Forms 404
Filing Annual State Forms 404
Paying Employment Taxes 405
Reporting Payments to Consultants 405
Maintaining Transparency 405
Responding to Negative Press 406
Protecting Your Online Reputation 407
Determining Insurance Needs 407
Part 5: Appendixes 409
Appendix A: Glossary 411
Appendix B: About the Online Content 415
Index 421
