Pass to Excellence Program Description:

Pass to Excellence Program Description:
Nonprofit leaders are fiercely committed to their organization’s missions and the people they serve. They have high expectations for their own personal performance and even higher expectations for their organizations’ ability to impact tough challenges in their communities across the nation. Faced with many competing priorities, nonprofit leaders find themselves seeking ways to strengthen their organizations’ management, governance, and operations -- without re-inventing the wheel. It serves nonprofits well to not only know the best strategies and practices of nonprofit governance, but to also be able to apply them to their own organizations so that they can work toward greater effectiveness and sustainability. Nonprofit professionals can set their organizations apart by embracing and living by the Standards for Excellence: An Ethics and Accountability Code for the Nonprofit Sector®. Learning Objectives: This interactive training program provides organizations with an opportunity to: --Engage with a set of best practices for nonprofit management and governance as outlined in the Standards for Excellence: An Ethics and Accountability Code for the Nonprofit Sector, and learn about how embracing and living by them can improve effectiveness and sustainability. --Assess themselves against the benchmarks of the Standards for Excellence code, --Arm themselves with concrete ways to strengthen the management, governance, and operations of their organizations. --Develop a work plan for improvement in the key areas of the Standards for Excellence code: Mission and Program Governing Body Conflicts of Interest Human Resources Finance and Legal Openness Fundraising Public Policy and Public Affairs --Consider earning the Seal of Excellence through the Standards for Excellence accreditation program or the tiered approach for recognition of strengthening organization’s management and governance. Pass to Excellence

Setting Yourself Apart
This exercise serves as a way to get participants thinking seriously about the successes they have found in their own organization. Ask all participants to answer this question and perhaps write their responses on colored paper that can be taped to the wall or bulletin board by the presenter during the introductions of all participants. (This also works well with extra large post it type notepaper. Encourage participants to talk briefly about the item that sets their organization apart from others and identifying key items that contributed to the success. Please take a moment to identify an accomplishment of your organization that you feel truly set you apart from others in the field and/or represented the ultimate in fulfilling your mission. Discuss with your partner and try to identify two key things the organization did to make this extraordinary accomplishment happen

Welcome to Standards for Excellence® Pass to Excellence
Sample Script: I hazard to guess that a few of you had second thoughts about attending today where you have so many other responsibilities competing for your attention. Anyone have a grant proposal waiting to be completed? Or challenging situation with your Board that needs to be addressed? Anyone in the midst of a staff restructuring, a website redesign, or an office move? And if it's not one of these important distractions, there's always some other crisis of the day that needs to be attended to. In a sense, it's a luxury to take a day away from the day to day, and focus on a topic like Accountability, Transparency and Ethics. It is an extraordinary commitment you've made to be here today. It is also imperative that you be here today because we are facing a serious crisis in the nonprofit sector. And, it is a crisis that only you, as nonprofit leaders, can successfully address. In our time together, we would like to introduce you to the Standards for Excellence code Hope you leave here wanting to learn more! Briefly outline the main topics to be covered during the Pass to Excellence program. Agenda: Introductions Overview of the Standards for Excellence Overview of the code Assessing & benchmarking your organization Implementation strategies Certification

Introductions Name Organization you represent - mission
Depending on the size of the group present, ask participants to identify themselves in a way that will orient them to the group and prime them for the Standards for Excellence® “What happened that made you decide to come…?” Name Organization you represent - mission Your organization’s accomplishment What is your experience/knowledge of the Standards for Excellence How do you hope this workshop will help your organization

America’s Nonprofit Sector
Who are we? We are churches, hospitals and schools. We are environmental activists, developers and preservationists, and social service agencies. Wherever there is a need for services, America’s nonprofit sector is there to meet that need. In 1983 there were 300,000 nonprofit organizations In 1993 there were 750,000 nonprofit organizations In 2013 there were over 1.4 million registered nonprofit organizations in the United States. Start with a brief primer and description of who and what makes up the nonprofit sector in America. Describe the fact that the sector is bigger and broader than most people realize. You may want to ask an open ended question about the group as to how large they believe/perceive the state’s(or region’s) nonprofit sector to be.

All Nonprofits Depend upon the Public and the Public Trust
To sum up…Public trust is a very important asset Tax exemption Tax deductible dollars through contributions Ability to receive foundation grants Recruitment of volunteers, including board members Attract staff into nonprofit sector

Competition Among Nonprofits
Funding from all sources Volunteers Staff Board members In addition, maintaining trust has been all the more important as other factors such as increased competition

Greater Scrutiny At the same time increased attention by regulatory agencies and consumers make it more likely that any lapse will be observed and magnified. Vicious cycle of lapses and increased regulatory/legal scrutiny Increased consumer expectations and sophistication Many donors and the public are concerned about more than simply program administration and fundraising ratios Frank Renile/Stock Illustration RF/Getty Images

How to differentiate from the pack?
The question becomes, how to differentiate from the pack…and in a meaningful way, not just with a brand image. David Fairfield/Photodisc Green/Getty Images

Others Looking at Best Practices
A number of organizations have identified the value of identifying and promoting best practices in the areas of ethics and accountability. BBB Wise Giving Alliance and local BBB chapters Standards for Excellence Institute American Institute of Philanthropy National Center for Responsive Philanthropy Charity Navigator Combined Federated Campaign

Websites educating about nonprofits and their practices
GuideStar.org Greatnonprofits.org Idealist.org Catalogue for Philanthropy(powered by GuideStar) Smartvolunteer.org Volunteermatch.org Nonprofit Search, Giving Matters (programs formerly known as Donor Edge) Volunteertoday.com Shareyourself.org (United Way) Networkforgood.org (powered by GuideStar and Volunteer Match) Volunteersolutions.org GoodBoardnetUSA.org (powered by Network for Good) Charity-charities.org Directory of America’s charities (US News & World Report/ powered by GuideStar) Local volunteer recruitment centers

IRS Emphasis on Best Practices
Even the IRS has expressed their interest in assuring that nonprofits are following best practices. “…the highest ethical standards and principles are essential to maintaining the public’s trust during these times of economic duress when so many people will come to depend on your services. . . “We will continue to insist that the sector be squeaky clean, and that the high idea of public benefit that underlies tax exemption is honored. “Indeed I believe all of us must follow best practices in organizational leadership and management.” - Douglas Shulman, Former Commissioner of the Internal Revenue

IRS and Nonprofit Best Practices
Conflicts of interest Document retention and disclosure Whistleblower policy/Confidential means to report impropriety Reimbursement policy Joint venture policy The recent revisions to the Form 990 information return for nonprofits reflects an expansion of focus beyond the basic requirements of the IRS Code to reflect best practices in a number of areas Form |Return of Organization Exempt From Income Tax Department of the Treasury Internal Revenue Service

IRS and Nonprofit Best Practices
Compensation policy Gift acceptance Solicitation Policy (federal and state laws, accurate, truthful, candid) Auditor Independence Methods to uncover family and business relationships Form |Return of Organization Exempt From Income Tax Department of the Treasury Internal Revenue Service

This is why… There are so many reasons for nonprofits to be sure that they are concerned with managing and governing themselves in an upright, accountable way. We need to pay attention to all of the organizational issues that make nonprofit organizations tick. Once you are aware of these organizational best practices, your organization can focus increased energy on achieving your mission and running your programs. Stay competitive and stay in business.

Standards for Excellence® Code
And, the Standards for Excellence program helps to fulfill that need.

Introducing the Standards for Excellence Institute
Just introduce topics on this page A national initiative launched to promote the highest standards of ethics and accountability in nonprofit governance, management and operations Uses as a foundation the Standards for Excellence: An Ethics and Accountability Code for the Nonprofit Sector

Working around the nation to strengthen nonprofits
The Standards for Excellence Institute is working around the nation to help strengthen nonprofits.

Standards for Excellence Development of the Program
1996: Volunteers started developing the code 1998: Maryland Association of Nonprofits Launched the first Standards for Excellence Program 2001: Began replicating the project nationally, pilot effort 2004: Launch of the Standards for Excellence Institute 2005: Launch of National Standards certification program First group of Licensed Consultants enters the program 2007: First organizations to earn the Seal of Excellence through the Standards for Excellence Institute 2011: Celebration of 10 Years of the Standards for Excellence Program and Standards for Excellence programming available around the country 2012: First groups recognized under Standards for Excellence Tier One The program was launched in Maryland in 1998 after over two years of research and development. It started with exhaustive research. Maryland leaders convened a work group and, in effort to bring them all up to speed, scheduled two days of total immersion in the subject area in a Leadership Summit on Nonprofit Ethics and Accountability. Leading up to that Summit, conducted exhaustive research looking at… -ethics programs in the nonprofit sector, -how ethics is done in business community and what we can learned from that, -looked at ethics programs in the medical, legal and other professional communities. -looked at how government regulates charities, both federal and state and we looked at watchdog groups. Program launched in 1998 Immediate interest from Maryland Nonprofits’ colleague state associations of nonprofits to also offer the program. Replication efforts began in 2001 in a two year pilot With success from pilot phase, launched the Standards for Excellence Institute in 2004 Kicked off national certification the following year In 2007: The first groups earned the Seal through the Institute In 2011: The Standards for Excellence Institute celebrated 10 years of offering the programming around the nation 2012: First group to become recognized under Tier 1: The Essentials.

Standards for Excellence® Replication Partners 2013
Currently have 10 replication partners Alabama Association of Nonprofits The Arc of the US Center for Nonprofit Excellence in Colorado Springs Delaware Alliance for Nonprofit Advancement Maryland Association of Nonprofit Organizations Pennsylvania Association of Nonprofit Organizations Ohio Association of Nonprofit Organizations Oklahoma Center for Nonprofits The West Virginia Community Development Hub National Leadership Roundtable on Church Management—serving the organizations of the Catholic Church and Catholic nonprofit sector around the country.

States with Standards for Excellence Partners and Consultants
Purple slides show the where Standards for Excellence Licensed Consultants and Replication Partners are based. This is current in September 2013.

How do you become a well governed and accountable organization?
People should come up with examples that mirror the standards. Write their ideas on flipchart and draw out any parallels in the brainstorm and the issues covered in the code. Brainstorm: What are some things that you feel nonprofits are doing well to demonstrate their good governance and accountability?

What is the Standards for Excellence Code?
Hopefully the previous brainstorming list will mirror the code. Standards for Excellence: An Ethics and Accountability Code for the Nonprofit Sector® – codifies and sets benchmarks for organizations striving to improve governance and accountability Standards for Excellence Code · A blueprint for well-managed, responsibly governed organizations. · Provides a common language for discussion of best practices · 8 Guiding Principles, 55 Standards, Performance indicators The Standards for Excellence® go beyond the minimum requirements of current laws and Provide touchstones to determine how well an organization is fulfilling its obligation to those who benefit from its programs, to contributors, and to the public Standards for Excellence: An Ethics and Accountability Code For the Nonprofit Sector 8 Guiding Principles and 55 Standards Mission and Program Governing Body Conflict of Interest Financial and Legal Human Resources Openness Fundraising Public Affairs and Public Policy

Self Assessment Now, we are going to pass out a short self assessment exercise. This will give participants the opportunity to do a quick assessment of how your organization implements the tenets of the Standards for Excellence code at a basic level. Please keep this handy and complete it as we review the basics of the Standards for Excellence code.

Mission and Program Defined Mission Statement Evaluation
Organization’s well defined mission (discuss what makes a good mission statement and how it should be used) Procedures in place for meaningful evaluation of programs and mission (Briefly discuss the difference between an organizational and program evaluation) Don’t prescribe a method of evaluation. Organization’s needs are too diverse for a one size fits all evaluation model(s). Program Service Standards -confidentiality - grievances - measuring satisfaction/dissatisfaction of program participants (ask participants for examples of how they measure the satisfaction or dissatisfaction of program participants) Defined Mission Statement Evaluation Program Service Standards

Governing Body Roles and Responsibilities Board Composition
Responsibilities of board members On-going planning Board review of salary structure of the organization Term limits Written expectations for board members Evaluation of performance Selection, nomination How board conducts itself (how often meet) -board’s responsibility for its own operation -stated expectations for board members -board expectations -board meetings -policies for attendance and noncompliance -creating board minutes Composition of the board, #, diversity, unrelated -committed individuals -employees serving on the board -number of board members -bylaws and board term limits -diversity of board membership -board service without compensation Heavy emphasis on written policies, board’s fiduciary role, policymaking Roles and Responsibilities Board Composition Board Conduct

Conflict of Interest Disclose Everything Define Interested Parties
Conflicts of interest concerns surface in nonprofits in many different ways. This section of the Standards for Excellence outlines avoiding and eliminating practices that allow individuals to receive private benefit, private inurement. Address general concerns with adopting a conflict of interest policy For instance: We do business with our board members. They give the nonprofit much free advice, help. Why shouldn’t we send some of our business their way? Our board members feel like they are the ‘good guys/gals’, above this sort of thing Our board members give us a good deal - Perceptions -- How would it look on the front page of the local paper? - Private instrument --Is the conflict worth risking your tax exemption status? - Board member’s primary loyalty should be to the organization, not his/her pocketbook or business interests. - Not all conflicts involve money, may involve conflicts over access to confidential board business and relations with competitors. (ask participants to share real life examples of conflict of interest) Disclose Everything Define Interested Parties How Decisions Are Made? Conflict of Interest Policy Conflict of Interest Statement Disclosure Forms

Human Resources Personnel Policies Volunteer Policies
Main points covered: -personnel policies -volunteer policies -employee evaluation -employee orientation Personnel Policies Volunteer Policies Employee Evaluation Employee Orientation

Financial and Legal Budgets Audits Financial Reports
Main topics covered: Budget Types of budgets (capital and operating budgets) Expenses and revenues Board approved Financial reports At least quarterly Financial performance of the organization showing variation between actual and budgeted expenses Audit for groups with revenue over $500,000 per year (reviewed by the board) Confidential means to report financial impropriety Written financial policies Investment of Assets Internal Controls Unrestricted Net Asset (Reserves) Purchasing Policies Legal Compliance Compliance with both state and federal law Periodic internal review of regulatory requirements General liability and directors and officers coverage Budgets Audits Financial Reports Financial Impropriety Written Financial Policies Legal Compliance

Openness Annual Report: Mission statement Report on program activities
Main Points: -Annual Report Basic Elements Mission statement Program narrative Basic financial information Board of directors Management staff -Nonprofits remaining accessible and responsive to the public IRS requires nonprofits to provide annual 990, tax exempt application (1023)and determination letter to the public upon request – can not ask why the person is requesting the information Nonprofits depend upon public trust. As such, nonprofits strive to communicate their efforts to the public. For individual organizations and the sector as a whole, public trust requires that nonprofits serve as good stewards of charitable contributions, represent their work and effort truthfully and free from deception, and treat their program participants with dignity and respect. In addition, nonprofits undertake a myriad of activities to communicate to the public. Annual Report: Mission statement Report on program activities Basic financial information, including summary statement of financial position and summary statement of activities List of key staff List of board members

Fundraising Fundraising Activities Donor Relations/Privacy
Fundraising activities covers main topics: -reasonable fundraising expenses Fundraising costs ratio can be determined using the data available on each organization’s form 990 (recommended minimum of 3:1) -truthful and accurate fundraising materials (that include required public disclosures) Solicitation materials should : Identity of the organization Identify the mission Identify the intended use of funds Include all required disclosure statements (State and IRS) -honoring promises made in fundraising appeals -honoring intentions of donors Ensuring that you have a gift acceptance policy Ensuring that your fundraisers are not paid on a percentage basis Ensuring that fundraisers are registered if required to do so. Fundraising Activities Donor Relations/Privacy Acceptance of Gifts Fundraising Personnel

Public Affairs and Public Policy
Main topics covered: Public Policy Advocacy Remain nonpartisan Policy activities disclosed on 990 501 h election Written advocacy policy Public Education Factually accurate Have sufficient information Non-partisan Promoting Public Participation Public Policy Advocacy Public Education Promoting Public Participation

Standards for Excellence An Organizational Tool
The Standards for Excellence, A comprehensive ethics and accountability program for the nonprofit sector, Serves many important needs including the following: A model for nonprofit organizations to implement accountability in their management & governance practices A framework with a clear statement of the organization’s commitment to best practices A self-regulatory tool to ensure public confidence and public support A demonstration of the organization's commitment to public service

Most Challenging Standards
These are some of the Standards that nonprofits report to the Standards for Excellence Institute that they have the most problems implementing. Conflict of Interest Policy/Statements (61%) Program Evaluation (55%) Advocacy Policy (51%) Confidential Means to Report Impropriety (47%) Financial Policies (46%) Gift Acceptance Policy (43%) Board Development (39%) Employee Orientation (39%) Internal Review of Legal, Regulatory Requirements (36%)

Providing the Help Needed
The Standards for Excellence Institute is committed to assisting nonprofit organizations in implementing the Standards for Excellence and all of the tenets contained in the code. These can be offered by a number of different resources —educational resource packages—which you will receive electronically following this program. -- technical assistance on specific subjects --Standards for Excellence clinic series (16 hours of training, similar to the Pass to Excellence, but covers the topics in greater detail and includes a special peer to peer exchange component). --other courses offered by partner/consultant --Licensed Consultant training opportunity --You may even wish to consider applying to earn the Seal of Excellence. Educational Materials Specifically supporting the Standards for Excellence Guidelines Direct Organizational Assistance/Support Standards for Excellence Clinic Series Other Training Courses Licensed Consultant Training Opportunity to Earn Seal of Excellence voluntary accreditation program

Other Resources for Leaders of Nonprofits
In addition to the Standards for Excellence Institute, other nonprofit “capacity builders” may also provide assistance to you. Management support organizations Sometimes housed at community foundations, United Ways Sometimes free standing entities Often regional or metropolitan based University or college based nonprofit academic centers Private consultant firms Nonprofit or for profit Corporation for National and Community Service State Offices of Service and Volunteerism

Other Resources for Leaders of Nonprofits
Here are a few of the national “capacity building” organizations that you may also consider reaching out to. International Center for Not for Profit Law (ICNPL) Independent Sector Alliance for Nonprofit Management National umbrella associations focused on your industry or issue area National “Capacity Builders” focused on particular issues Nonprofit Center for Risk Management Alliance for Justice Charity Lobbying in the Public Interest

The Standards for Excellence® Voluntary Certification Program
Describe the different ways one might use the Standards As a code of ethics: Adopt the guiding principles as your code of ethics Use it in developing your code of ethics Use it to educate board members; communicate the role of the board Use it to communicate board role vs. management To build sustainability: Specific guidelines on practices that sound organizations should follow 55 Guidelines on board an staff responsibilities Find out how many you meet, make a goal each year to add more until all 55 are met. Put policies in place that will stay with the organization through transition (note turnover among staff and board). To model excellence and accountability – After implementing the SFX, can display the Seal (signifies excellence to donors, board, staff, volunteers, general public) 71 groups certified in Maryland Over 200 nationally certification offered by 4 partners and the Institute Mention the testimonials shared before the break Share examples of uses of the seal (next five slides) The Standards for Excellence® Voluntary Certification Program

Introducing: Tiered recognition
The Standards for Excellence Institute also offers a tiered recognition program. This effort provides a step by step approach for nonprofits that want to take some of the Standards, then another set of the Standards, and finally earn the Seal over time. The tiered approach makes it easier to navigate and the tiers build upon each other. Easier to navigate Go at your own pace Start at level one or three Each tier builds on the previous!

Tier One: Essentials For organizations that wish to show they implement the basic, legal, regulatory and governance practices of the Standards for Excellence, Tier One: The Essentials is for you! The first tier is a lot simpler to achieve than the full Standards for Excellence Seal program. There is an initial lower cost to apply and significantly lower staff investment to apply. Rather than a three step review process, the tiered approach participants in the first tier receive recommendations from program staff for future improvement. Adherence to Basic Legal, Regulatory, and Governance Practices Benefits Lower initial cost Responsive to limited time and resources Formally recognizes achievement and your organization’s progress towards full Standards for Excellence certification. Informal recommendations from program staff for future improvement and application to next tier.

Tier One: Essentials Application process
Organizations can remain at this tier for a term of three years at which point they can re-submit certain documentation and remain at this tier for an additional term (fee applies). There is no limit to the amount of time an organization may remain in the first tier of the program. Application process Submission of the Tier One application package and checklist and application fee. Completion of a free online self-assessment and orientation is also required. Program staff will complete the formal review of the application. Organizations can remain at this tier for a term of three years

Tier Two: Enhanced The second tier builds on the basic requirements met in the first tier and adds to it. This tier focuses more on having strong board approved policies, and has more emphasis on program evaluation. If your organization moves quickly from tier 1 to tier 2 (and also to tier 3 from tier 2), it will receive significant discounts in the fees. The Standards for Excellence Institute website has a full list of all topics covered in each tier. At this stage as well, participants will receive a list of information recommendations provided by your Standards for Excellence staff reviewer. Enhancing the Foundations of Nonprofit Management and Governance Benefits Discounts for quickly moving through the tiers. Ability to state completion of the Standards for Excellence Enhanced Tier. Additional informal recommendations from program staff for future improvement and application to next tier.

Tier Two: Enhanced Application Process Prior completion of Tier One.
Organizations can remain at this tier for a term of three years at which point they can re-submit documentation and remain at this tier for an additional term (fee applies). There is no limit to the amount of time an organization may remain in this tier of the program. In tier two, not only do organizations undergo a staff review, but they are also approved by the Ethics Standards Committee. Application Process Prior completion of Tier One. Submission of the Tier Two application package and checklist and application fee. Completion of the free online self-assessment. Program staff will complete the formal review process, with final approval by the Ethics Standards Committee. Organizations can remain at this tier for a term of 3 years

Tier Three: Certified Standards for Excellence Seal Holder
Organizations that achieve tier three can state that they are “certified” and are licensed to display the Seal of Excellence. This is the only tier where a seal is awarded for successful completion of the program. Its important to mention that you can move from tier one to tier two to tier three OR you have the ability to take the “express route” and go directly to tier three. Standards for Excellence Seal Holder All 55 Standards are included in the third tier Benefits Earn and display the Seal of Excellence State that their organization is “Certified Under the Standards for Excellence”, “Awarded Standards for Excellence Seal”, or “Approved Under Standards for Excellence” or “is a Standards for Excellence® Accredited Organization.”

Tier Three: Certified Application Process Review Process
At this stage, the application is reviewed in a three step review process. The seal is initially awarded for three years. After the initial recertification, subsequent recertifications are on a five year cycle. Application Process Can apply directly for Tier Three, or previously complete both Tiers One and Two. Submission of the application package and checklist and application fee. Review Process Program staff will first review the application. Anonymous peer reviews will evaluate the application second. Lastly, the Ethics Standards Committee must approve the staff and peer reviewers’ recommendation for certification. The Standards for Excellence certification will be awarded for three years.

Discuss application submissions:
Applications accepted on a rolling basis Submit checklist and supporting documents Check and double check that every standard has been met (use the self assessment again if needed) application fee

Describe the questions on the application:
Yes/No Questions Requests for documentation illustrating compliance (board minutes, policies, solicitation materials) Request for description of how the applicant complies (program evaluation strategy, orientation process for new employees)

The Review Process Ethics Standards Committee Peer Reviewers
Phase I Phase II Phase III Undergo 2nd review by Peer Reviewers Have the standards been met? Undergo 3rd review by Ethics Standards Committee Should this organization be approved? Submit application to Standards Institute Is the application complete? Average length of time to implement the standards: 2 years Median length of time to implement the standards: 1 year Average length of time to go through the review process: 6.7 months 1. Explain the three phases of the review process. Phase I --Organization submits application, fee --staff checks for completeness --additional info requested if needed Phase II --staff sends peer reviewers application -peer reviewers check to see if the Standards have been met -independent review (3 weeks, 4-6 hours) -team review (convenient time for all, 3 hours) - possible additional conference call (consensus not required) Phase III - staff send application to the ESC -ESC decide to accept or reject reviewers’ recommendations -adhoc appeals panel can be set up for groups that want to appeal ESC’s decision initial certification every three years, then every five -recertification includes updated application & peer review

Characteristics of Certified Nonprofits
Discuss characteristics of certified groups: Budget Size This chart shows the breakdown of a sample of the organizations that have earned the Seal (sample shows state of Maryland Seal holders) Budget Size The vast majority of certified groups fall in the $1 million to $5 million category. A quarter of the groups have budgets of a $1 million and under. 14 % of certified groups have budgets under half a million.

Discuss characteristics of certified groups: By Type of Organization This chart shows the breakdown of a sample of the organizations that have earned the Seal (sample shows state of Maryland Seal holders) Human service organizations of all types make up 60 % of the seal holders Health and human service organizations together comprise nearly 80 %

Discuss characteristics of certified groups: By Age of Organization This chart shows the breakdown of a sample of the organizations that have earned the Seal (sample shows state of Maryland Seal holders) The majority of nonprofits earning the Seal are in the year age category, with over have in the 26 years to 50 years old group.

Screen shot from a newsletter - Fuel Fund of Maryland.
How it’s being used: Used as a logo on newsletter; becomes part of the return address and is featured with the Charity Navigator Logo.

Sample Standards for Excellence Seal Holder
This is a very small nonprofit based in Wilmington, Delaware, Delaware Community Reinvestment Action Council.

List of All Seal holders on the Standards for Excellence Institute website
Anytime, you can check out the full list of Standards for Excellence Seal holders on our website at

Questions and Answers

Organizational Assessment/ Implementation Worksheet
Encourage all participants to complete the Organizational Assessment/Implementation Worksheet during the various clinic segments. Organizational Assessment/ Implementation Worksheet

Read mission and program guiding principle aloud

Mission and Program Main Topics Defined Mission Statement
Overview main topics in this section: Development of the mission Reviewing the organization’s activities as consistent with mission Evaluating programs Treatment of the people you serve Main Topics Defined Mission Statement Organizational Evaluation Program Evaluation Program Service Standards

Defined Mission Statement
Organization’s Written Mission Does your mission communicate: Values? Purpose? Activities? Are organization’s activities consistent with mission? Mission Standard: The organization’s purpose, as defined and approved by the board of directors, should be formally and specifically stated. The organization’s activities should be consistent with its stated purpose. Emphasize the role the mission plays within a nonprofit. How do organizations keep the mission front and center – solicit ideas Nameplates Framed Stationery ASK: How can organizations be sure their programs are in alignment with their missions? Keep the mission front and center!

Organizational Evaluation
A nonprofit should periodically revisit its mission to determine if the need for its programs continues to exist. The organization should evaluate whether the mission needs to be modified to reflect societal changes, its current programs should be revised or discontinued, or new programs need to be developed. ASK: How do organizations / boards approach this process? How best can you avoid getting into deep discussions about semantics and not substance? Revisit the Mission Every three to five years Question if mission was accomplished Is mission consistent with current programs? Has context changed (social, demographic, environmental)?

Program Evaluation Helpful Tool: A logic model
HANDOUTS: Logic Model Template A nonprofit should have defined, cost-effective procedures for evaluating, both qualitatively and quantitatively, its programs and projects in relation to its mission. These procedures should address programmatic efficiency and effectiveness, the relationship of these impacts to the cost of achieving them, and the outcomes for program participants. Evaluations should be candid, be used to strengthen the effectiveness of the organization and, when necessary, be used to make programmatic changes. Organizations should determine how much organizational effort is spent on each program compared to one another. This will help determine how to spend evaluation resources comparatively. Participants should use their own methodology--budget, staff time (we developed a questionnaire), combination of budget and staff time ASK: What do you do to evaluate your programs? Surveys Focus Groups De-briefings after events and programs Reports by responsible staff people Collect questionnaires Interviews Do the individual evaluations fit into an overall annual evaluation scheme? ASK: Then what do you do with the data you collect? How do you use it to make real change? How do you programs benefit from such improvements? Reports to committees Reports to the board Annual reports It is important in this section of the Standards to COMPREHENSIVELY evaluate each of your programs. Describe the types of data you collect for each of your programs: Qualitative (descriptive) Quantitatively (numbers) Efficiency (is the cost worth the outcome) Effectiveness (does it work) If one or more of these ways of evaluating is not appropriate for a program, explain why this is the case. These are some the key characteristics of robust program evaluation efforts. As the Kellogg Foundation notes, program evaluation is an activity that should be undertaken not to show that a program works but should improve how a program works. The code calls for meaningful, candid evaluations that are used to strengthen the effectiveness of the organization Perhaps the best way to do this is to make sure you have a defined FEEDBACK LOOP in place. Program evaluation should consider: Quality Quantity Outcomes related to costs/program efficiency Outcomes for program participants/program effectiveness Helpful Tool: A logic model

Are your clients happy with your services?
Program Service Program Service Standards: In rendering its programs or services, a nonprofit should act with utmost professionalism and treat persons served with respect. Where appropriate, a nonprofit should have policies in place which protect the confidentiality of personal information and should provide a grievance procedure to address complaints. Nonprofits should regularly monitor the satisfaction of program participants. Confidentiality policy for organization dealing with individuals and families Sometimes this issue is covered in personnel policies or an organizational procedures manual POLICY--should be adopted by the board Not as applicable for groups not dealing with people such as environment, animals These groups may deal with confidentiality of donors, but this is covered separately Grievance Procedure Many times nonprofits work with disenfranchised populations How can grievances be addressed? How do you seek to learn about client mistreatment? Where can complaints be addressed? PROCEDURE--may be an operating procedures developed by staff rather than a policy developed by the board Measuring Satisfaction (ask for and/or show a few examples) Surveys; Questionnaires; Interviews Annual, every encounter Procedure, not necessarily a policy Grievances, satisfaction and program evaluation are often wrapped up into a single policy or are addressed by a single effort Program service should consider: Treat the people with professionalism and respect. Policy on confidentiality: Grievance procedures Assess satisfaction of program participants Are your clients happy with your services?

Seeking a Few Volunteers! Annual Reports Anyone?
Ask participants if they would like to offer to share their own organization’s annual reports with the group during the discussion of the Openness guiding principle. Seeking a Few Volunteers! Annual Reports Anyone?

Read Governing Body Guiding Principle aloud

Governing Body Main Topics Roles and Responsibilities
Board Composition Board Conduct Governing Body Standards address topics identified in the slide Responsibilities of board members Composition of the board, number, diversity, unrelated How board conducts itself Heavy emphasis on written policies, board’s fiduciary role, policymaking

Board Responsibilities
Long Term & Short Term Planning: Goals and Objectives Staying on Mission Evaluation/Reflection Ongoing planning and organization evaluation Define specific goals and objectives Planning keeps organizational activities in line with the mission Evaluate success of programs toward achieving mission There are three major types of ongoing planning: Long-range planning Strategic planning Yearly operational planning Does your board have an annual work plan?

Setting Policy Financial Personnel Volunteer Fundraising Board policies for effective management of organization Financial policies (covered under Financial and Legal Section) Personnel policies (covered in the Human Resources Section) Volunteer Fundraising These policies should all be approved by the board and documented in board minutes ASK: What is it “really” like trying to develop and adopt policies?

Annually approving the budget Assess finances through internal financial statements Review/approve annual audit Review allocation of resources Board’s financial oversight FINANCIAL STATEMENTS - periodically assess the organization’s financial performance in relation to the budget (Nonprofits should generate at least 4 internal financial statements each year) BUDGET - annually approve organization’s budget (Approval should occur prior to the beginning of the fiscal year; budget columns should reconcile) ALLOCATION OF RESOURCES - review percentages of organization’s resources spent on program, administration, and fundraising (Often part of budget approval process, or part of 990 review) Different organizations spend different amounts on program, administration and fundraising depending on: Age of organization Mission of organization How the organization raises funds How long the organization has been fundraising Controversial issues How often should your board review financial statements?

The Board & the Executive Director: Hire and supervise Executive Director (includes annual evaluation) Set Executive Director’s compensation Board supervisory role over executive director hire and fire the executive director set the executive director’s compensation annually evaluate the executive director The completion of the board’s annual review of the executive director and compensation setting should be indicated in the board minutes. Approval and discussion may occur in executive session. Describe executive session.

Reviewing the Organizations Compensation Structure Appropriateness of overall salary structure Consider developing a compensation philosophy statement Review comparable salaries Board review of the appropriateness of the overall salary structure of the organization - vertically: reviewing lowest paid to highest paid staff horizontally: comparing salaries to wages in the industry (i.e., using salary surveys) generally in relation to economy Many organizations use salary surveys of nonprofit employees, or surveys of surveys of employees in a particular field Board minutes should indicate the fact that the overall salary structure review was completed by the board.

Small Group Activity Discuss the process for evaluating the Executive
Director for your organization. What are some of the questions you ask? Do you talk to other staff? Write down common themes to share with the full group ACTIVITY: Small Group (4-6 People) Divide into groups of 3 or 4

Board Composition Main Topics Committed Individuals
Employees on the Board Number of board members Term limits Diversity Compensation Main topics covered in this part of the Standards: Board member’s commitment Employees serving on the board -number of board members Bylaws and board term limits Diversity of board membership and Board service without compensation

Board Composition Commitments of Board Members
Committed to the mission Possess skills to accomplish the mission Individuals may have various motivations for serving on a nonprofit board of directors. Board service presents opportunities for board members to make business contacts, to achieve a position of respect in the community, to learn and professionally develop, and even to have fun. While these are all legitimate reasons for serving on a board, they certainly shouldn’t be the only reasons to serve. Supporting a cause or mission to which they are sincerely committed should be the primary motivation for individuals sitting on a nonprofit board of directors. After all, the board is ultimately responsible for assuring that the organization makes progress toward achieving its mission.

Board Composition Employees as Voting Board Members
Permitted by law and by the Standards Employees must: Abstain from votes related to employee salary or benefits Abstain from votes related to evaluation or performance It is important to assure that a nonprofit is not controlled by a single individual, because unlike for-profit businesses, nonprofits are public charities which cannot be owned by individuals. The chief executive officer rarely serves as a voting member of the board. In fact, nationally, only 8% of CEOs vote on their organization’s board. It is even rarer for employees other than the chief executive to serve on the board. That said, it is important to mention that it is not illegal for paid staff to serve on boards, but it may certainly wave a red flag to regulators who fear such organizations may be controlled by a single individual. Having employees as voting members of the board increases the opportunity for a conflict of interest. ASK: What are the benefits and the challenges with having staff members serving on the board? When an employee is a voting member of the board, that employee should not be in a position to exercise undue influence. More than one board member who is also an employee is often seen as inappropriate Consider the number of board members that are required for quorum (if this number is a small number and an employee is a voting member of the board, that individual may be in a position to exercise undue influence on a regular basis) Board members supervise the executive director or chief staff person. If staff are elected to serve on the board, supervision roles can be confused. What are some challenges to having staff as voting members of the board?

Board Composition Size of Board Minimum of 5 Preferably more than 7
Unrelated Board members Number of board members: 5 is the minimum, with a preferred minimum of 7 Board members should be unrelated by blood or marriage Board members should be unrelated by blood or marriage to members of senior staff ASK: What are the challenges faced by a small board? Few individuals are capable of sustaining the constant level of intense involvement that is required on a small board. Second, on a small board, important decisions may end up being made by a very small group of people. Third, small boards lack credibility in the eyes of funders, regulatory authorities and other third parties. Fourth, on a small board, it becomes much more difficult to address conflicts of interest that may arise

What are the benefits to having term limits?
Board Composition Setting Term Limits Typically: 2 three-year terms Or 3 two-year terms ASK: How do term limits strengthen an organization? Term limits in bylaws important for board development – force issue to front Bringing on new board members and rotating off board members important for a healthy board and allows for new ideas, new views Gives permission to those who may need to step down Implementing Term Limits 2 three-year terms or 3 two-year terms are the most common Some organizations institute a one or two year period of time during which a board member may leave the board before returning ASK: What examples do people have of term limits in their organizations? What are the benefits to having term limits?

Board Composition Board Diversity Representative of community served
Race and gender often considered Other social or demographic characteristics: Area of expertise Age Geographic area Income status Program participant status Board should represent the diversity of the community served First define the community served by the organization Assess the community’s diversity Second review the diversity of the board members Demographic data is available from the Census Bureau website Some organizations may need to improve the diversity of the board—board diversity policies may be appropriate ASK: How have organizations worked to achieve greater diversity on their board?

Board Composition Board Members and Compensation
No compensation for board service Reimbursement for expenses permitted Payment for contracted services permitted with adherence to conflict of interest policy Board members serve without compensation for their service as board members (excluding reimbursement for out-of-pocket expenses) Nearly all board members serve without compensation, statistics appear similar around the country. If you have specific statistics for your area, insert here. Board members who are contracted to provide a specific good or service are not covered under this specific standard – this is addressed under Conflict of Interest.

Board Composition Worksheet
MATERIALS: Board Composition Worksheet (found in Board Composition Educational Resource Packet) ACTIVITY: Have organization representatives work together to complete the Board Composition Analysis No full group report back Start the process of completing the board composition worksheet based on your own board of directors. (Fill as much information as you can) Discuss in your group what you learned about your board from viewing the matrix

Conduct of the Board Main Topics Responsible for its own operations
Clear Expectations Attendance Board Minutes Main topics covered in this section: Board’s responsibility for its own operations Stated expectations for board members Board meetings Policies for attendance and noncompliance Creating and disseminating board minutes

Conduct of the Board Responsibility for its Own Operations
Education & Training Selection of New Board Members Development Periodic Evaluation of Performance Board’s responsibility for its operations Education, training, and development Board orientation programming Mentors for new board members Training programs, tours, buddies for new board members Board manuals On-going training programs for board members May allow returning board members to attend new board member orientation Selection, application, recruitment processes for new board members Bylaws may stipulate restrictions in selection process May have nomination committees ASK: What ways do organizations go about selecting new board members Annual or periodic evaluation of board performance Reference the examples that can be found in the Conduct of the Board Educational Resource Packet

Conduct of the Board Establishing Expectations
Clear, written expectations Reviewed by all board members Acknowledgement of Expectations Board evaluation consistent with expectations Specific job descriptions for officers, committees sometimes useful Written Expectations may be set simply on a single sheet of paper or in a board member job description. Board members should also receive a written description of each committee and the role of the members on the committee. Responsibilities of board members often include: Regular attendance at board meetings; Preparation for meetings; Participation in committees appropriate to each individual’s skills and interests; and Establishment of policies, activities, and fiscal affairs of the organization. Expectations for members will differ from one board to the next, and each board needs to decide what its members’ role in the organization will be. Acknowledgement Some boards require a signed pledge of commitment to the expectation sheet. Evaluate Incorporating board member expectations into the board’s evaluation of itself is helpful SHARING: If participants brought any sample documents indicating the expectations for their board, have them share here.

Conduct of the Board Frequency of Meetings
No less than four times per year Telephonic or internet meetings appropriate if acceptable under law Frequency of board meetings: A Minimum of 4 meetings per year Allowance for teleconferences provided that all members can hear one another and converse with one another if allowable by law in your state

Conduct of the Board Board Participation
By laws or board job description should address Attendance Participation Process to address noncompliance Removal of board members Keep in mind the following considerations: Proxy voting is generally discouraged (and sometimes illegal) Voting by ballot may be appropriate for some sensitive issues; Voice voting is appropriate for most matters; and Voting by teleconference is appropriate if everyone can hear and be heard, provided this is allowed in your state. When one or more board members are absent from a board meeting, the board may not explore all sides of an important issue. If enough members are absent, the meeting may lack a quorum; board members in attendance cannot take official board actions. Boards should have a formal policy that states attendance requirements along with the consequences for violating these requirements. Including an attendance list in the minutes helps an organization keep track of board attendance records, and identifies consistently absent members and members that are approaching the threshold for maximum allowable absences

Conduct of the Board Meeting Minutes Maintained in a central location
Signed by prepared Presented for approval at next board meeting Provided to all board members Written minutes Committee minutes are needed when a board committee acts in place of the board (i.e., board approves changes to the budget, board evaluates the executive director) or is delegated to a board decision making body Minutes should be kept in an accessible location and be distributed to board members

Read the Guiding Principle for Conflict of Interest aloud
Conflicts of interest concerns surface in nonprofits in many different ways. This section of the Standards for Excellence outlines avoiding and eliminating practices that allow individuals to receive private benefit or inurement and addresses general concerns with adopting a conflict of interest policy. - Private inurement --Is the conflict worth risking your tax exemption status? - Board member’s primary loyalty should be to the organization, not his/her pocketbook or business interests. - Not all conflicts involve money, may involve conflicts over access to confidential board business and relations with competitors.

Conflict of Interest Policy
Criteria for Conflict of Interest Policy Written policy For Board, Staff, and Volunteers Should include: What is a conflict? Disclosure procedures Decision by uninvolved board members Board approval Emphasize the Gray Zone related to conflict of interest. Institutionalizing a conflict of interest policy is critical because the issues are rarely clear cut. Conflicts policy should be approved by the board Covers board, staff, and volunteers with significant independent decision making authority with respect to the organization Identifies types of conduct that would constitute a conflict For instance: We do business with our board members. They give the nonprofit much free advice, help. Why shouldn’t we send some of our business their way? Our board members feel like they are the ‘good guys/gals’, above this sort of thing Our board members give us a good deal Perceptions -- How would it look on the front page of the local paper? Sets up procedures for disclosing conflicts Provides for review of potential conflict transactions by uninvolved board members

Conflict of Interest Statements
Elements of a Conflict of Interest statement Annual disclosure of interests Should be signed at the organization’s initial affiliation and annually thereafter Conflict of Interest Statements Statement should include: annual disclosure of interests signed be each member of the organization at initial affiliation and also annually thereafter

Case study Case Study #1 – Conflict of interest

What do YOU think? Is there any conflict of interest if you offer to donate all of the materials needed to build this home and by doing do, become the only hardware store to be recognized during the event and any media coverage? What is the best approach to handling this potentially sticky situation? You are on the board of a low income home building organization. In your full time job, you own a hardware store and often donate supplies to support the organization on whose board you serve. Other hardware stores in your area also make generous contributions to the cause. Because of your position on the board, you recently learned that the organization will building its 100th house and to commemorate this occasion, the organization’s celebrity spokesperson, a hugely popular and well known sports star, is inviting several other sports and movie stars to attend the dedication of the home. It is the custom of the organization to place a sign recognizing the firms and individuals who donated services as a backdrop to the stage being used for the home dedication.

Small Group Activities
Full Group Discussion Share real life examples of how organizations have handled potential conflict of interest situations. Real Life Examples

Read the Openness Guiding Principle aloud

Openness Main Topics Annual Reports Public Access
Nonprofits depend upon public trust. As such, nonprofits strive to communicate their efforts to the public. For individual organizations and the sector as a whole, public trust requires that nonprofits serve as good stewards of charitable contributions, represent their work and effort truthfully and free from deception, and treat their program participants with dignity and respect. In addition, nonprofits undertake a myriad of activities to communicate to the public. This Guiding Principle addresses topics identified in the slide Main Topics Annual Reports Public Access

Content trumps appearance!
Annual Report An important vehicle for communication of organizational information is an annual report. Studies have indicated that the public is interested in transparency in regards to nonprofit organizations. The annual report is an excellent vehicle by which nonprofit organizations can communicate with funders and constituents about the organization’s programs and activities. Mission statement • This element is covered more fully in another standard but reference the importance of having it prominently displayed as part of the annual report Program narrative • Narrative includes brief: Description of activities performed Measures of output Measures of outcome Case studies, testimonials, and anecdotes cannot substitute for narrative Link program narrative to financial data • Financial and program narrative should cover the same time period Use similar terminology to emphasize link • Breakdown of financial data by program is required for some nonprofits, recommended for all Basic financial data • Summary is enough Include revenue sources Include expense by program, plus fund raising & administration Include balance sheet/summary statement of financial position • Should be based on audited financial data – usually auditor will want to review and approve summary presentation Board and staff • Include board members with titles for officers (terms are also good to include Staff should include key management staff members Basic Elements Mission statement Program narrative Basic financial information Board of directors Management staff Content trumps appearance!

Small Group Activity Full Group Discussion
MATERIALS: Peer Exchange: If participants brought copies of their own annual report they can use them in this activity – otherwise provide several samples ACTIVITY: Small Group (4-6 People) Review each of the items participants bring to the table. Provide each group with sample Annual Reports Activity 1: Ask each group to identify what's missing from each annual report and what works well as a way of meeting the standards Activity 2: Ask each group member to discuss ways their organization communicates with the public Review annual report and discuss whether the meet the requirements indicated in the Standards Full Group Discussion

Public Access Communicating with the public Disclosure laws
Public Access Standard: Nonprofits should provide members of the public who express an interest in the affairs of the organization with a meaningful opportunity to communicate with an appropriate representative of the organization. Describe how members of the public can provide input to the organization - Solicit Ideas from the Group Website Phone calls Annual meeting open to the public Hotline Nonprofits should have at least one staff member who is responsible to assure that the organization is complying with both the letter and the spirit of federal and state laws which require disclosure of information to members of the public. Disclosure laws for nonprofits change so frequently that one person should be charged with keeping up with disclosure laws - Often executive director, financial director, fundraiser, etc. Review IRS requirements for nonprofits to provide annual 990, tax exempt application (1023) and determination letter to the public upon request. Discuss any state specific disclosure laws. What do you do if someone shows up at the door asking for a copy of your financials? IRS Form 990, 3 yrs Form 1023 Determination letter

Read the fundraising guiding principle aloud

Sources of Operating Revenue
Interesting to point out the many sources of income for charitable nonprofit organizations. This is surprising to some who believe that philanthropic support is a much larger chunk of the support. Also, many are intrigued by just how much of the sector’s income is from program revenue and government. Its important to note that this is “in aggregate” rather than one specific nonprofit. The nonprofit which with you work may have a very different breakdown in its own operating revenue. Certain subsectors of the community of all nonprofits tend to be more heavily weighted in certain income streams than others. Healthcare organizations such as hospitals or private schools may have operating revenue breakdowns that look very different from environmental advocacy organizations, for instance. Private contributions 13.3% Individuals Foundations Corporations Fees for services and goods from govt 23.9% Government grants 8.3 % Program Revenue (fees) 49.6% Investment Income 2.8% Other 2.1 % Source: The Nonprofit Sector in Brief, Public Charities Giving and Volunteering, 2012.

Philanthropy in the US Source: Giving USA 2011
These numbers are from Giving USA 2011. Here, this pie chart really shows that the lion’s share of philanthropic giving is not from corporations or even foundations, but from the all important, individual giver. We are going to focus much of our discussion today on this very group and how we are soliciting these individuals. Source: Giving USA 2011

Fundraising Main Topics Fundraising Activities Donor Relations/Privacy
Fundraising activities covers main topics: Fundraising Activities Donor Relations/Privacy Acceptance of Gifts Fundraising Personnel Main Topics Fundraising Activities Donor Relations/Privacy Acceptance of Gifts Fundraising Personnel

Fundraising Activities
Fundraising costs ratio can be determined using the data available on each organization’s form 990 Percentages do not tell the whole story. Reviewing fundraising expenses is not a substitute for determining if an organization is working toward achieving its mission or if its programs are at all effective or efficient. A myriad of factors impact returns which can be expected from fundraising activities and initiatives, including (but not limited to): Age of organization; Budget size of organization; Popularity of the organization’s purpose; and Differences in accounting procedures. Ultimately, the effectiveness and efficiency of an organization’s fundraising program will depend on having the right mix of fundraising activities and managing and conducting those activities well. The Standards for Excellence recognize these and other complexities that are implicit in the design and implementation of any fundraising program by providing that fundraising performance ought to be evaluated based on results obtained over a five year period and that the board of directors should be involved. 1) Fundraising Costs Use the 990 to determine ratio 3-5 years Not per event/proposal How do you calculate a fundraising ratio?

MATERIALS: Sample 990, or 990’s of organizations if they have them Calculating fundraising ratios worksheet (copy found in facilitator’s guide) ASK: At first glance what do you interpret from this information about these two organizations? Which organization would you rather donate to? Why? What other information would you want to know? Everyone calculate the fundraising ratios on the slide A: 2.25:1 B: 5:1 ACTIVITY: Small Group (2) Using your 990 calculate your fundraising ratios. Remind participants of how potential donors might interpret their fundraising ratio. Organization A Organization B Direct Public Support 250,000 100,000 Indirect Public Support 50,000 Net Revenue Special Events 150,000 Fundraising Expenses 200,000 What is the Fundraising Ratio for Each Organization? A = B=

Stress the importance of having the mission included – mission should be why people are giving – not guilt Reference State Specific Disclosure Requirements 2) Solicitation Material and Receipts should: Identify the organization Identify the mission Identify the intended use of funds Include all required disclosure statements (State and IRS)

State Disclosure Requirement for Solicitations
INSERT RELEVANT INFORMATION FOR YOUR STATE, JURISDICTION

Nonprofits should have policies or procedures on how to heed the intentions of donors on donated funds. ASK: What if a donor asks your organization to do something you don’t want to do? --probe with questions about unsavory, illegal donor requests (requests that are counter to your mission or values, requests that ask you to restrict services to certain people, certain populations) Statements about the Use of a Contribution Honoring donor intentions

Donor Relationships and Privacy
Major areas covered in donor relationships and donor privacy: Safeguarding donor privacy Providing donors opportunity to remain anonymous Providing donors opportunity to be removed from shared mailing lists Honoring requests to curtail repeated solicitations Freedom from excessive pressure Review Donor Bill of Rights with Participants Discuss sample donor privacy policy Ask about how organizations respect the method of contact / non-contact requests from donors Respecting Donor Privacy Donor Anonymity Removal of donor’s names from lists upon request Honor requests to stop repeated mailings Solicitations free from undue influence or excessive pressure What is the donor bill of rights?

Acceptance of Gifts Policy (Board Approved)
ASK: Give examples of unusual gifts offered, received, or refused A Gift Acceptance Policy Provides procedures for determining limits on gift acceptance Purposes for which donations will be accepted Types of properties accepted Accepting or refusing unanticipated gifts ASK: What type of gift acceptance policies do organizations have Procedures that determine limits for Gift Acceptance Type of gifts Donor source Purposes for which gifts will be accepted Type of property accepted Whether to accept an unusual or unanticipated gift

Small Group Activity ACTIVITY: Small Group (4-6 People) Based on the mission of the organization of one of the group members, have the small group develop a gift acceptance policy. (10 minutes) After they have developed the policy assign groups, some of the following gifts and have them use the policy to determine if they would or would not accept the gift given their newly drafted policy. Farm Burial Plot Abandoned building Financial donation from Philip Morris Donation from the Playboy Foundation Two used cars (1980 and 1975 Ford Mustangs) Medical supplies Out of date medical supplies (develop other examples as needed) Develop a basic gift acceptance policy covering the most important components “Test drive” your policy!

Why shouldn’t you pay fundraisers commission?
Addressed working with professional fundraisers/consultants Percentage based compensation is considered unethical for a number of reasons: Viewed as unprofessional amateur Unreasonable pressure on donors Private inurement, conflicts of interest May elevate immediate needs of fund development over best interest of organization All nonprofits that raise funds using the services of a fundraising consultant must take care to engage only those that have proper registration through the applicable state agency if required within your state. Provide participants with state law related to people fundraising on your behalf in their state. YOU MAY NEED TO MODIFY SLIDE BASED ON REQUIREMENTS WITHIN YOUR STATE AND/OR THAT STATE WITHIN WHICH YOU ARE TRAINING Fundraisers should not be compensated on a commission or based on % of monies raised Use only properly registered fundraising consultants Why shouldn’t you pay fundraisers commission?

Fundraisers Monitoring those who Solicit on Your Behalf
It is the responsibility of the nonprofit organization to insure that it monitors all those individuals who raise funds on its behalf. ASK: Encourage participants to share examples where outside groups have raised money or resources on the group’s behalf. What benefits and challenges are associated with this practice: Examples of auxiliary groups that may raise money on your behalf Civic groups Girl Scout, Boy Scout, 4-H Groups Schools Corporations Groups of friends, colleagues, who want to honor your cause, someone affected by your cause Monitoring those who Solicit on Your Behalf Staff, volunteers, consultants, contractors, businesses, other organizations Organization must be responsible in all cases where money is raised in its name

Read Human Resources guiding principle aloud

Human Resources Main Topics Personnel Policies Volunteer Policies
Human Resources Standards address topics identified in the slide Personnel policies Volunteer policies Employee evaluation Employee orientation Main Topics Personnel Policies Volunteer Policies Employee Evaluation Employee Orientation

Personnel Policies Should include: Grievance procedures
MATERIALS: Human Resources Audit – provide copies of the table of contents for each participating organization Benefits of having a handbook: Promotes a congenial work atmosphere and productive work habits; Reduces employee stress and dissatisfaction; Signals to employees that they are all covered by the same workplace rules and will be treated fairly and consistently; Gives managers and supervisors clear and consistent guidelines, Ends confusion over what your policies are; Helps orient new employees; Provides the employer with an effective tool for training supervisors, Can counteract "implied agreement" lawsuits; Saves hours and money from having to revisit and decide anew your workplace policies; Provides a reference for new and existing employees; Serves as a basis for defending against legal claims made by employees or former employees; Clarifies the relationship of employees to the organization; and May prevent employment-related disputes. ASK: Discuss whether participants have an employee handbook or not and if it clearly outlines their policies mentioned in the slide. Overview of the Model Employee Handbook—table of contents provided in handouts Should include: Grievance procedures Confidentiality Staff development Working conditions Employee benefits Vacation and sick leave Employee evaluation

Volunteer Policies Volunteers policies and procedures should address:
ASK: Why have Volunteer policies? Important to differentiate roles of volunteers and staff Value both, eliminate tensions, turf issues of volunteers and staff co-existing Policy should address Initial assessment and screening Assignment to and training for appropriate work responsibilities Ongoing supervision and evaluation Opportunities for advancement While board members and officers may serve as the only official spokespeople for our organization and our mission, our reputation is on the line each time a volunteer interacts with the public. We need to invest in these individuals and train them well. Training, supervising, and evaluating the work of volunteers is extremely important. Volunteers policies and procedures should address: Initial assessment/ screening Assignments and work responsibilities Ongoing supervision and evaluation Opportunities for advancement

Employee Performance Evaluation
Nonprofits have an obligation to employees to a regular (at least annually) written evaluation. Some nonprofits have evaluations much more frequently Written evaluations of employees are requested by the Standards for Excellence. Annual staff performance appraisals allow an organization to objectively assess performance and accomplishments relative to staff job descriptions and goals. Performance evaluations identify staff members’ areas of weakness, and can serve as an objective way to determine salary adjustments, promotions and demotions, or terminations. Job Description / Performance Goals One of the key purposes of performance evaluations is to provide a structure for communicating with employees about their job performance. Performance evaluations should give constructive feedback detailing whether an employee has met specific job requirements and should reinforce and develop the employee's performance goals. Performance evaluations may also be used as a vehicle to allow employees to contribute ideas about ways they can enhance their own performance. Annually Although supervisors should communicate their satisfaction or dissatisfaction with their employees on an ongoing basis, formal performance evaluations should be conducted at least once a year. Based on job description, performance goals At least annually Should not replace other periodic discussions about performance What are some of the benefits of consistent employee evaluations?

Employee Orientation Formal Orientation Process
A new employee's orientation should be an introduction to an organization's procedures and job responsibilities. Orientations may also cover pay information, work schedules, office layout, etc. New employees should be given and introduced to the organization's personnel policies. Following an orientation, the new staff member should sign an acknowledgment form, ensuring that they were properly oriented to their responsibilities and to the organization. The Executive Director should designate one person or the Director of Human Resources to collect and file signed acknowledgment forms. An orientation checklist may be developed to help supervising staff make sure new hires receive all the appropriate information. A checklist is a brief tool that lists specific issues that a supervisor should discuss with new staff. Developing a checklist can eliminate the possibility that certain items may never be addressed, and eliminates any assumptions by the new staff member regarding procedures or duties. Formal Orientation Process Distribute Employee Handbook Orientation Checklist

Small Group Activities
Have the full group discuss successes and challenges they’ve experienced in orienting new employees and evaluating employees Peer to Peer Exchange Employee Orientation Success Stories Challenges Employee Evaluation

Read guiding principle aloud

Financial and Legal Main Topics Budgets Audits Financial Reports
This section of the Standards covers complying with and having processes in place for abiding by legal requirements and handling financial accountability Covers areas that nonprofit staff routinely report as challenging in understanding what is expected of nonprofits Main topics covered: Budgets Audits Financial Reports Financial Impropriety Written Financial Policies Legal Compliance Main Topics Budgets Audits Financial Reports Financial Impropriety Written Financial Policies Legal Compliance

Annual Budget Board Approved Two Types
MATERIALS: Effective Fiscal Management document (copy found in Financial Planning and Monitoring Educational Resource Packet - provide to all participants Budget Types The operating budget is a one-year financial map that the Board provides the staff to guide them in their work. The preparation of an annual operating budget is generally the staff’s responsibility. The Finance Committee and the full Board review and approve the budget. Before approving, the Board should be confident that: Expenditures are consistent with organizational priorities. Revenue projections are reasonable and achievable. There are contingency plans in place to reduce spending should uncommitted revenues fail to materialize. Significant changes from the prior year’s actual performance are justified. The budget takes Board policies such as depreciation, reserves, and investments into account. The capital budget ensures that any property is maintained, technology is kept up to date, and expansion is planned for (as opposed to being reactive). Expenses & Revenues In for-profit organizations, success is, in part, measured by the amount of profit at the end of the year. In nonprofits, success is based on meeting the budget, both revenues and expenses. The Finance/Audit Committee and the Board have the responsibility of monitoring actual performance against the budget (at minimum quarterly) by reviewing Interim Financial Statements, including: Year-to-date revenue and expense reports (Exhibit 4) Balance sheet (Exhibit 5). There should be reasonable explanations for significant variances between budget and actual amounts. When reviewing the financial reports, the focus should be on the line items that most impact the overall performance. The balance sheet should be reviewed to ensure that there is sufficient cash to meet short-term needs. Corrective action should be taken if necessary. Board Approved Two Types Operating Budget Capital Contain same categories as the Form 990 Expenses and Revenues

Annual Budget Audit Budget > $500,000
The audit is a confirmation, by an independent source, that an organization’s financial reports are fairly presented. The IRS does not require that every nonprofit have an audit, but funders such as United Way and foundations may require audits. Organizations receiving government funds are often subject to audit requirements. State charitable solicitation laws may also call for an audit. The Board has several responsibilities regarding audits: The audit needs to be put out to bid periodically, generally every three to five years. An auditor needs to be selected and engaged. The auditor has a professional obligation to present the draft audit and the management letter (if any) to the Board or a designated Finance or Audit Committee. The Board has to make itself available for this presentation. The audit needs to be approved. The entire Board should receive a copy of the audit even if it is reviewed and approved by a committee. Audit Findings The highest level of assurance an auditor provides, is an unqualified “clean” opinion. This should always be the goal. A qualified opinion frequently occurs when the organization is not following the generally accepted accounting principles (GAAP). The audit should also be compared with the internally prepared financial statement for the same period. Significant differences could indicate a weakness in the organization’s finance department. Budget > $500,000 Financial statements accurately reflect finances of the organization Recommended if budget exceeds $500,000 Management Letter

What are some indicators of good financial performance?
Financial Reports These documents should give you an overall sense of the financial performance of the organization. Reference “Effective Financial Management” document, exhibit 3 regarding several rules of thumbs for assessing financial health. Should be prepared at least quarterly Reported to board Budgeted vs. Actual revenue and expenses What are some indicators of good financial performance?

Reporting Financial Improprieties
Organization’s method of providing employees a confidential means to report improprieties can take many forms Embezzlement timesheet misrepresentation using restricted funds for unintended purposes stealing funds, goods or services forgery ASK: How do you implement a policy promoting confidential reporting of financial improprieties? There are many ways a nonprofit might provide for and encourage confidential reporting of financial improprieties. Some policies are quite simple and inexpensive to implement and others are more complicated and resource intensive. A few examples include: Appointing a board member or a retiring board member to accept confidential calls from staff and board members regarding misconduct in the organization; Expanding upon the organization’s existing open door policy or employee grievance procedure to allow for confidential reporting of financial and other improprieties and misuse of the organization’s resources; Installing an ethics hotline as a way for employees to report suspected improprieties anonymously (a sample job description and policy for an ethics hotline is also attached); Offering a suggestion box for confidential reports of fraud, misconduct, and other suggestions; and Providing an ombudsman service in which an ombudsman is available for staff to consult with an objective, neutral third party in order to resolve conflicts and/or report suspected wrongdoing using experienced, external service providers. Foster a culture of openness Methods for reporting improprieties Board Representative Suggestion Box Ethics Hotline

Financial Policies (Board Approved)
Discuss the 4 major policies that should be in place (specifics can be found in Financial Policies Educational Resource Packet Investment Policy Internal Controls Unrestricted Current Net Assets (formerly known as Reserves) policy should include, at minimum, the following: Purchasing Practices Each of these policies need to approved by the board Details of each policy will depend on the size of the organization Investment of Assets Internal Controls Unrestricted Net Asset (Reserves) Purchasing Policies

Case study

What do YOU think? From an ethical perspective, is this okay? Would it make a difference if the store where you purchased the cleanser was owned by your in-laws? Would it make a difference if the cleanser was offered to you at a discount? You are the associate director at a medium sized nonprofit literacy and mentoring organization with several branch offices. While visiting one of the branch offices, you learn that the branch is in dire need of hand cleanser. Rather than adhering to the normal channels for purchasing supplies, you elect to stop by a store near the office, purchase a large quantity of cleanser and drop it off at the branch.

Legal Compliance and Accountability
The Board should periodically ask for an update on for the organization’s insurance coverage. The coverage should be reviewed to determine if it is an adequate amount for the organization to function under adverse circumstances. Any decision to forego basic insurance coverage, such as General Liability or Directors and Officers Liability, should be made by the Board as a whole and documented in the minutes. Assess need for insurance coverage : General Liability Insurance Directors and Officers Insurance Board makes decision not to insure

Legal Compliance and Accountability
MATERIALS: Excerpt from Legal Requirements Checklist Main points covered: Be aware of and comply with the laws at all levels Fundraising Licensing Financial accountability Human Resources Lobbying & Advocacy Taxation Insurance coverage in the areas of general liability and directors and officers coverage Internal review of all legal and regulatory requirements for each nonprofit ACTIVITY: Ask groups if they have someone in their organization responsible for keeping track of all legal requirements/changes? Direct participants to the Legal Requirements Checklist Educational Resource Packet as a tool to help with the periodic review Compliance with both state and federal law General liability and directors and officers coverage Periodic internal review of regulatory requirements

This section of the Standards for Excellence focuses on the nonprofits role as a vehicle for societal and community change. This is an eye-opening part of the Standards for Excellence for many participants because many in the nonprofit sector believe that charitable nonprofits will lose their tax exempt status if they engage in lobbying or advocacy activity. This is not the case!

Public Affairs and Public Policy
Main topics covered: Advocacy policy Care in releasing in formation to the public Remaining nonpartisan Main Topics Public Policy Advocacy Public Education Promoting Public Participation

Public Policy / Advocacy
Nonprofit organizations often exist to serve the underserved. Nonprofits provide a voice and can truly help educate and advocate for those they serve. There is a myth out that nonprofit organizations are prohibited from lobbying elected officials. This is simply not true. ASK: What is the difference between advocacy and lobbying? Nonprofit leaders often confuse these terms. Not all advocacy is considered “lobbying”. Advocacy is defined as active support for a cause, idea or policy. Public Education Media and Messaging Campaigns Litigation Organizing Activities Protests & Marches Lobbying includes a very narrow definition of specific types of communications Lobbying generally consists of communications that are intended to influence specific legislation Normally Defined by Statute State and Local Laws May Vary From IRC Provisions Usual Key Elements: Communication, Subject Matter & Money Determining Lobbying Limits Insubstantial Part Test (26 U.S.C. § 501(c)(3); 26 C.F.R. § 1.501(c)(3)-1(b)(3)(i) ) Default Test Lobbying must be an “insubstantial part” of overall activities Include cost-free activities when determining if substantial 501(h) Expenditure Test (26 U.S.C. § 501(h); 26 C.F.R. §1.501(h) ) Elect by one-time filing of Form 5768 Clear dollar-based limits Only expenditures count towards limits Clear definition of lobbying This step allows 501(c)(3) organizations take advantage of the clear definitions and generous limits on lobbying that were added to the Internal Revenue Code in These rules are sometimes called “the expenditure test.” Eligible organizations that make the election do so without changing their 501(c)(3) status. Making the election simply requires filing Form 5768, “Election/Revocation of Election by an Eligible 501(c)(3) Organization to Make Expenditures to Influence Legislation.” (available at The single-page form calls for the organization’s name, address, and first tax year to which it wants the election to apply. It requires only the signature of an authorized officer, usually the president or treasurer. The election can be revoked at any time and can be easily reinstated, as well. Calculating Limits Under H Calculate organization’s “Exempt Purpose Expenditures” – usually an organization’s budget Overall lobbying limit is: 20% of first $500, % of next $500, % of next $500, % of the remaining $1 million cap on total lobbying expenditures Grassroots lobbying limit is 25% of overall limit Who Might Not Want to Elect - Large nonprofits with budgets over $17 million What is the difference between advocacy and lobbying? Advocacy is defined as active support for a cause, idea or policy. Lobbying generally consists of communications that are intended to influence specific legislation.

Nonprofits must work diligently to be sure that all advocacy and lobbying activities are conducted within the parameters established by state and federal law. Registering Activity Who should register? What information needs to be disclosed? When do organizations need to register? Where can organizations find the form for registration? Why does Maryland have state ethics laws? (b) A lobbyist shall file separate reports for each employer which the lobbyist represents. Each report shall contain the total expenditures during the reporting period for all direct expenditures, costs or values, whichever is greater, provided for members of the General Assembly or for employees or members of any state agency for the following: (1) Food and refreshment; (2) Entertainment, including the cost of maintaining a hospitality room; (3) Lodging expenses away from home; (4) Fair value of travel if the trip exceeds 100 miles; (5) Recreation expenses; and (6) Gifts or contributions, excluding political contributions as defined in Chapter 80 of Title 15 provided to members of the General Assembly. Worry-Free Lobbying for Nonprofits, a publication of the Alliance for Justice is often provided as a Standards Clinic handout. Copies of this publication can be obtained free of charge from allianceforjustice.org. Click on Nonprofits/Foundations..publications Nonprofits should take responsibility to keep their public policy activities within the scope of all federal, state, and local laws; Must remain strictly nonpartisan Public policy activities should be described on state disclosure reports and IRS form 990.

The Standards calls each organization to prepare a board approved advocacy policy that defines a process for determining positions on issues. Planning Considerations 1 - What are the criteria or factors that determine the broad interest/ issue areas where your organization may become involved in policy advocacy? (Answers can include: mission statement, strategic plan, members’ or clients’ interests) 2 – How will decisions be made – and by whom? (The Board itself, a committee, staff, member involvement) 3 – How will this process be accountable to the Board? (Board control or oversight) Additional Consideration Mission: Is the issue related to the organization’s ability to meet its mission? Impact: Are there aspects of the issue that affect the interests of the nonprofit organization (and/or its clients) in a significantly different way than the interests of the community at large? Consensus: Is there, or do you reasonably anticipate that there will be, at least a general consensus among the members or constituents of the organizations on the position to be taken? Credibility: Would your organization be perceived as a legitimately concerned and appropriate advocate for the position to be taken? Flexibility: Will the policy provide flexibility for a subset of the government relations or public policy committee to make decisions and/or speak on behalf of the whole group when time or circumstances do not permit additional process. Developing a Public Policy/ Advocacy Policy for your organization What should you consider? Who needs to be involved? How often do you need to consider positions on issues?

Public Education Many organizations publish a wide array of educational materials and distribute these materials to the public, including, but not limited to: brochures articles flyers/posters reports annual report websites newsletters public policy alerts billboards, advertisements public service announcements/press releases, etc. Nonprofits must ensure that information provided to the public is Accurate Includes sufficient contextual information Avoids partisanship Discuss “Final Checks Before Releasing Documents to the Public” handout How does the document look and read? Have you provided adequate substantive contextual information? Have you acknowledged sources? Have you used spell/grammar check? Have you had another person/persons proofread the document? Have you double checked all facts? Have you provided contact information for your organization Phone, fax, , website, logo Ensure that your public education and advocacy documents are: Factually accurate Have sufficient information Non-partisan

Promoting Public Participation
What can a 501(c)(3) do? Issue advocacy Conduct candidate forums/meet the candidate nights with all candidates Send questionnaires to each candidate Voter education Voter registration & get-out-the-vote activities Candidate education Individuals can Individuals acting in their own capacity can engage in electoral activity Must be off the clock or on personal leave Organizations cannot ratify the individual’s acts expressly or by implication Remain nonpartisan in all of your activities

Case study Case Study #3 – Public Policy

What do YOU think? Read through the case study and discuss each one in turn. Her campaign chair wants you to place one of her campaign signs in the window of the organization’s office or in front of its office building?—NO, YOU CANNOT DO THIS. That she plans to give the organization’s board list to her campaign manager so that the board members may be asked to be “block leaders” for her campaign? NO, SHE CANNOT DO THIS. CERTAINLY, PUBLICLY AVAILABLE LISTS LIKE THOSE LISTS FOUND ON THE ORGANIZATION’S WEBSITE OR ANNUAL REPORT ARE OKAY, BUT LISTS THAT INCLUDE CONTACT INFORMATION, ADDRESSES, PHONE NUMBERS, ETC ARE NOT OKAY TO BE SHARED. Her campaign chair has asked to borrow a copy of the organization’s major donor list that is periodically distributed to board members in order to solicit contributions for the campaign? NO, NOT OKAY. UNLESS THE ORGANIZATION REGULARLY MAKES ITS DONOR LIST AVAILABLE FOR SALE OR RENT. AND, IF THIS IS A PRACTICE, THE NONPROFIT WOULD NEED TO MAKE IT AN EQUAL OPPORTUNITY (FOR ANY CANDIDATE) LIST RENTAL OR SALE. IF YOU NORMALLY DO NOT SELL OR RENT YOUR MAILING LIST, YOU SHOULD NOT MAKE IT AVAILABLE TO ANY CANDIDATE, PARTICULARLY ONE THAT IS A MEMBER OF YOUR BOARD. The president of the board is planning to announce her candidacy on the front steps of the organization’s headquarters? NOT A GREAT IDEA. CERTAINLY NOT ILLEGAL, BUT MAKES IT LOOK LIKE THE ORGANIZATION IS, IN EFFECT, ENDORDING THE CANDIDACY. She plans to remain on the board during your campaign? OKAY TO DO, BUT OFTEN TIMES, INDIVIDUALS RUNNING FOR OFFICE ARE DOING SO 24 HOURS A DAY/7 DAYS A WEEK. THEY DO NOT HAVE THE TIME TO DEVOTE TO BEING AN INVOLVED, ENGAGED BOARD MEMBER. The founder and president of your board has just announced that she is running for State Senate. She is well known because of her long-standing association with the organization and the contacts she has made on its behalf over the years. How would you respond if you found that: Her campaign chair wants you to place one of her campaign signs in the window of the organization’s office or in front of its office building? That she plans to give the board list to her campaign manager so that the board members may be asked to be “block leaders” for her campaign? Her campaign chair has asked to borrow a copy of the organization’s major donor list that is periodically distributed to board members in order to solicit contributions for the campaign? The president of the board is planning to announce her candidacy on the front steps of the organization’s headquarters? She plans to remain on the board during your campaign?

Conclusion Wrap Up and Evaluation
Moving onto the our last segment of this training program. Conclusion Wrap Up and Evaluation

Benefits of Earning the Seal of Excellence
“Displaying the Standards for Excellence® seal provides reassurance to donors that they are contributing to an agency whose services are of high quality and whose administrative and financial practices are sound.” --John F. Plaskon, Executive Director Crossroads Community, Inc. Share quote—may have participants read aloud

“To review every level of PLASE’s program and operation helped us to revisit, fine-tune and improve -- like a spring housekeeping or renewal.” --Mary C. Slicher, Executive Director, Project PLASE, Inc. Share quote—may have participants read aloud

“An important outcome of this process has been better trained staff and volunteers that have a stronger understanding of our mission, philosophy and operating systems. We believe we are a stronger organization, as a result.” --John Sciavone, Executive Director St. Vincent de Paul of Baltimore Share quote—may have participants read aloud

“Since the Resource Center received the Standards for Excellence three years ago, we have received funding from foundations that never looked at us before.” --Prince George’s Child Resource Center Share quote—may have participants read aloud

“. . .very specific and thorough comprehensive guideline for what we should look like as an organization if we are to live up to our full potential.” --Hopewell Cancer Support Share quote—may have participants read aloud

Share quote—may have participants read aloud “Having the seal has been very powerful… having achieved the seal has absolutely made a difference especially in our fundraising.” --Jeannette Mendonca, Hospice Caring, Standards for Excellence Seal Holder

Seal holders display their seals and the information about earning the Seal of Excellence in numerous ways Seal holders herald their Standards for Excellence achievement in a number of different ways: Grant proposals Form 990 Online databases of charitable organizations Inserting the Seal on letterhead, business cards, websites, offices, vehicles, and more

How will you proceed in your own organization?
Your Next Steps Ask this open ended question and ask others to offer their plans for proceeding. How will you proceed in your own organization?

What can I do tomorrow? Share the assessment exercise with your colleagues Decide what changes can be made first Consider tackling the easy things first! Think about what changes can be added to your organization’s work plan Get your board and staff involved in embracing best practices Consider earning the Seal of Excellence

Assessment & Planning Fill out the assessment tool Ask questions

Take a Self-Assessment
What’s already in place? Summarize the steps for getting the work done. Self Assessment Developing and following your work plan Accessing TA, Training and Resources Taking Stock of Progress to Date What you’ll need to do to apply Assemble Your Team Who should be involved? Develop & Follow Work plan Should include deadlines What requires board approval? Access TA, Training, Resources What models are available? Take Stock of Progress Apply for Tier One or Full Certification

Encourage all participants to complete the Organizational Assessment/Implementation Worksheet during the various clinic segments. Turn YOUR Organizational Assessment/ Implementation Worksheet INTO YOUR PLAN

Providing the Help You Need
If you are offering a clinic series insert the dates and location into this slide Stress the fact that the Standards for Excellence® program has a string focus on giving people the tools to implement the code into their daily organizational management and governance. Describe your process for distributing ed packets Describe your technical assistance process Describe any training programs that might support organizations looking to implement the standards Provide any information on upcoming programs and available services related to the Standards for Excellence® Educational materials specifically focused on the Standards For Excellence code Direct technical assistance for members Materials provided on your Flash Drive Educational resource packets Application Starter Kits Implementation and Planning Tool Program Evaluation tools

Acing the application review process
Submit a complete application - Answer all parts of every question in the application. Do not skip questions. Answer all parts of a question. Have a detailed oriented person who is not integrally involved in the process review the application to make sure that every question has been answered thoroughly. Provide clear and concise explanations - It is not always evident from an outsider, what is evident to staff or board members. Remember that in most cases, N/A cannot stand alone as an answer. We don’t always understand acronyms. When answering a question which appears to be not applicable to your organization, please explain why not. Budget time - Plan to spend additional time responding to questions that may arise from the staff review. Let the board know that they may need to plan additional meetings while under review, rely on the executive committee (if they can make decisions for the board), or have a process in place for approving items through unanimous written consent) Adhere to deadlines - When possible, adhere to staff and peer reviewers’ deadlines. Stress the importance of meeting these deadlines to key staff and the board of directors. Applications must have gone through review within the year to avoid extra fees. Less is sometimes more – Avoid inundating reviewers with unnecessary information or pages of documentation. It can appear as though the organization doesn’t know how to respond or is attempting to ‘bury’ the reviewer in information. Clear, concise explanations. Contact staff for guidance, prior to submitting your response, as necessary – often better to know ahead of time what the reviewers are looking for. Use “Tips for Completing the Certification” – We’ve identified the areas of the application where we tend to ask the most clarifications about and compiled some tips for completing these questions. The purpose is to help you avoid having to go back and answer requests for clarifications in these particular areas. Submit a complete application and checklist. Provide concise, clear explanations. Less is more. Don’t over think it! Budget time to respond to staff questions. Contact staff for guidance.

What to Expect - Post Application
Once you turn in your application—here is a re-cap on the steps involved in the application process. Confirmation Depending on queue, 1 – 3 months to complete review Staff Review Letter Staff Review Response (2 weeks to reply) Notification of Recognition Recommendations & Improvements Tier Two Tools

How do organizations earn the Seal?
There are two different paths to certification. Organizations that are feeling a little more confident can go straight for full certification. This consists of a staff review, a peer review, and a review by the Ethics Standards Committee of the organization’s application. To apply for the Seal, organizations must submit to the Standards for Excellence Institute a written application supporting documents, and an application fee. There are essentially three phases to the review process. Phase 1 - SFX Staff The process begins with the application, which is received at Standards for Excellence Institute. A staff member from the Institute will review the application for completeness and will request additional information if necessary. Tier One includes only a staff review, and includes recommendations to help you apply for Tier Two. Phase 2 - Peer Reviewers In full certification only, the application undergoes a staff review and then a peer review before going to the Ethics Standards Committee. A team of trained peer-reviewers assesses the applicant's practices and determines if the applicant has met the Standards. The peer review process is employed to ensure fair judgment of applicant organizations with expertise, experience, and representation from a diverse cross section of the nonprofit sector. (Peer reviewers are required to have at least three years experience working in the nonprofit sector where they have had management or governance responsibilities. We give all peer reviewers a two hour training prior to reviewing an application and we also do reference checks on each reviewer. All of our volunteers sign forms that indicate that they agree with our and agreed to adhere to the confidentiality and conflicts of interest policies. Reviewers also remain anonymous to organizations they are reviewing.) Phase 3 - Ethics Standards Committee The final step for tier two and full certification is review by the Ethics Standards Committee (ESC). The ESC considers recommendations by the peer review team (or the staff in Tier Two) and makes the final decision. Staff Review Peer Review Ethics Standards Committee Tier One Tier Two Certification Tier Two Certification Certification

Go around the room and do a whip—Each person states one thing they learned today. Or, one thing that made them think about this board that made you think. Questions and Answers

Ask participants to complete the evaluation form.

INSERT PRESENTER INFORMATION
Go around the room and do a whip—Each person states one thing they learned today. Or, one thing that made them think about this board that made you think. Describe how the organization is an ongoing resource to your board and nonprofit Complete the evaluation form at the back of the Handbook INSERT PRESENTER INFORMATION

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