Non-Profit Management

Topics of Discussion Overview of non-profits- 501c(3) and 501c(4) Governance Board Roles Staff Leadership Unique Differences- Financial Management, Accountability Resources

Non-Profit Status 501(c)3: 501(c) 4: Legal obligation to file 990 Exempt from Federal corporate taxes, but still pay state & local Contributions from funders are tax deductible 501(c) 4: Lobbying Engage in unlimited lobbying in furtherance of social welfare purposes

Board of Directors and Roles Responsibilities: Chairman, Vice Chairman (x2), Secretary, Treasurer and Directors Volunteers, no compensation Communication w/ Board Hire/approve key leadership Provide foresight, oversight, and insight- financial oversight Advocates for non-profits mission & fundraising President on Board serves as a non-voting Board member By-Laws/Terms

Scale/Leadership Size and Scale of Non-Profits Funding- government, federal charters, donors, corporations, etc. Micro- annual gross receipts less than $1 Million Small- (Range $1-$10 Million/year) Medium- (Range $10-$30 Million/year) Large- (Range $30-$100 Million/year) Mega- ( Range of $100M plus)

Executive Leadership Executive Director vs. President/CEO External role Reports directly to the Board Media and PR Large financial relationships Final decision maker

Executive Leadership Chief Operating Officer Vice President Internal Role + Internal/External-Media Onboarding and Hiring +Financial Relationships Evaluation/Impact Measures +Fundraising/Revenue Daily Operations/Finances +Internal Operations Strategy Development + Strategy Development Backups in place, no single point of failure !

Key Differences as a Non-Profit

Key Differences as a Non-Profit Financial Management $.90 of every dollar going to direct services Daily/Weekly measures in place for managing expenses and revenue Fiscal and Public Transparency #1 Responsibility of the Board Fundraising Annual Audit and 990

Key Differences as a Non-Profit Public Information Annual Report (mission, activities/services, results and impact) IRS Form 990- always have 3 years readily available Audited Financials

Resources Council on Foundations (www.cof.org) Non-profit leadership association of grantmaking foundations and corporations Provides tools needed by philanthropic organizations to enhance and sustain their ability to advance a common goal Forces for Good: Six Practices of High-Impact Non-Profits The Little Book of Boards: Erik Hanberg Fierce Conversations: Susan Scott (very applicable to non- profit world)

Resources The Management Center (www.managementcenter.org) Trainings, Tools and Resources Based in Washington, DC Managing to Change the World: The Nonprofit Manager’s Guide to Getting Results: Alison Green and Jerry Hauser

Questions?!?