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Archive for the ‘Volunteers’ Category

arm wresting competition

Soggydan

When most businesses think about their competition, they often identify businesses that offer similar products and services.

For example: HP thinks about Dell. American Airlines thinks about United Airlines. In essence, their competition is defined as those other businesses that compete for the same market share.

In a recent blog post, Shaun King highlighted that while this trend is true in business, it is not true for churches and nonprofits. In his post, “The MAJOR Disadvantage (& ugliness) of Non-Profits & Churches Misunderstanding Who Their Competition Is,” Shaun highlights that other nonprofits and churches are not in competition with each other.  He argues, instead, that the real competition is the factors that cause the problems.

For example:

  • If you are trying to fight hunger, the competition is poverty and access to food.
  • If you are trying to fight slavery, the competition is slave traders
  • If you are trying to fight drug crime, the competition is drug dealers

Unlike businesses, churches or nonprofits don’t compete against each other. Instead, they offer each other a partner for mission and work.

I really appreciated Shaun’s post and I would encourage other leaders to give it a read and to share it with their leaders in their organization. After all, operating a church is about changing lives, not fighting with other people who have the same goal.

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In its second edition of the World Giving Index, the Charities Aid Foundation has determined that the United States is the most charitable country in the world.

The study found that out of the 153 countries evaluated, the people in the United States were the most generous with their donation and volunteering for charities and other nonprofit organizations.

The study also showed that giving globally has increased by 2% and that volunteering has increased by 1%.

The report also has a great picture showing how giving has been distributed (originally found at http://taxprof.typepad.com/taxprof_blog/2011/12/world-giving-index-2011.html ) shown below:

Map of Giving

Charities Aid Foundation

 

For more information read the report at https://www.cafonline.org/publications/2011-publications/world-giving-index-2011.aspx

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Reviewing Financial Reports

s_falkow

Recently, I was asked, “What are some basic steps we can do to improve our financial management?”

I was visiting a local congregation and the leaders were in the process of reviewing their financial history, operations, and current accounting controls. In the meeting I listed off about five items, but in reflection, I thought I would create an official list of financial basics for nonprofit management.

Financial Basics for Nonprofit Management:

  • Tracking of Data- by tracking data, you can determine benchmarks for growth or decline. Be sure to track participation, income, expenses, donations (and levels of giving), and long term goals (and to communicate these to leaders, donors, and members).
  • Accounting Controls-many small nonprofits rely upon 1 or 2 people to handle all of their bookkeeping. This leaves them vulnerable to fraud and usually limits financial communications. Be sure to have monthly review of finances, independent reviews of bookkeeping, limits on spending, and requirements for approval of spending.
  • 6 Months of Emergency Savings- every organization should have 6 months of cash savings available to cover expenses in an emergency.
  • Line of Credit- as organizations grow, they can improve their cash flow by taking out a line of credit or operating loan. LOC should be capped at around 3 months of expenses, and often operate similar to a credit card for an organization.
  • Multiple Income Streams-no organization should only have one line of income. By creating multiple revenue streams, nonprofits increase their stability.
  • Endowment & Net Assets– Gone are the days when a nonprofit organization should operate at a net zero. By creating endowments and net assets, nonprofits can cover the cost of their operations, allowing more of their donations to immediately  go into outreach.
  • Facility Management– Buildings cost a lot to maintain and operate. If you own a facility, be sure keep up with facility maintenance, use it as resource, and improve it as building code and mission needs change- otherwise it can become black-hole that sucks money away from your mission focus.
  • Board Development- Board members are ultimately responsible for organizations- be sure board members understand their roles and that they are giving proper oversight of staff and operations.
  • Insurance- Be sure that your organization has enough insurance to cover its liabilities for its staff, operations, facilities, and to protect the organization from lawsuits and emergencies.
  • Management & Gift Policies-smaller nonprofits often lack staff, organizational management (by laws), and gift policies which help organize and outline how nonprofit organizations operate and how donations should be accepted and used.
  • Financial Relationships– this may seem like an odd item for this list, but knowing your bank manager, accountant, insurance broker, and financial advisers personally can be critical in emergencies and/or when you need additional help.

There are many other items that could be added to this list (brand management, communications, mission focus, etc), but these are some highlights to help you review how your church or nonprofit organization manages its financial operations.

 

 

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Picture of Twitter Bird

some_communication

Last week I was interviewed by MSNBC for an article about how churches are using social media (read it here). As I prepped for the article, I created a list of reasons why churches should consider using Social Media (SM).

5 Reasons to Consider Using Social Media for Your Church:

  1. Local Context– Unlike most communication mediums, SM is grassroots based- meaning it provides a powerful way to reach out to people in your specific community.
  2. Be Present in the Conversation about You– People discuss all kinds of issues on SM- including their church. In order to be part of conversation, you need to be present. This is especially key when communicating about brand, major events, or in times of a crisis.
  3. Reach Gen X and Millenials– Younger generations are skeptical about institutional church- SM offers a way to engage with them, whereas they would be hesitant walk into a church building.
  4. Connect with People not Present– SM offers tools to connect with people who are unable to be physically present- traveling, hospital, shut-ins, etc. With SM they can participate live or by watching/engaging with an event later.
  5. Facilitate Conversation– more than just telling people about your church and its ministry, SM provides a place for a larger conversation where everyone has a voice- providing more transparency and accountability for organizations.

If you want to consider how Social Media can improve the operations and ministry of your church, I would also encourage you to follow Rev. Courtney Richards on facebook or twitter (@c_rev) – links are for her pages.

Courtney is a minister at Geist Christian Church in Indianapolis (facebook link), and when I asked her about SM, she said, “I use SM all the time to keep us with members and with what is going on in the community. It has been great way to reach out to people and to offer either a word of support or to give someone a shout out for their hard work.”

If you are considering using Social Media, feel free to read a number of blogs that I have posted here, and to also find someone in your local community who can assist you. You can begin by just listening and observing first, and then jump in as you feel ready.

Blog Notes: Special thanks to Courtney Richards for the quote and letting me share her online twitter profile.

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Yesterday, I talked about how technology can bridge the accountability gap that separates donors from beneficiaries, and in the post I shared that I would write 3 blogs showing how such examples can be used. This is the first of three posts.

Have you ever experienced listening to a member of  a church, or nonprofit organization, who can’t clearly articulate the mission or the impact of the organization?

Maybe the experience came as a friend asked you to donate money to support a charity. Or maybe, it happened when someone invited you to church, or as a friend described why they volunteers their time.

In many cases, these experiences are awkward attempts to tell the story of an organization. However, because most of these stories are told by volunteers or members, they often miss the true power of sharing the core mission and impact of an organization.

Given this experience, many organizations are now turning to technology to help them to:

  1. Tell the Story- Using their own words and images (pictures, blogs, videos, etc) (more…)

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balance beam of resources

Balancing Resources

Every organization has two types of resources- Financial and Human Capital.

Now most of us could define that financial capital refers to money and other tangible assets (buildings, furniture, or automobiles), and that human capital refers to people. However, as simple as these two definitions are, most nonprofit organizations and churches suffer from not balancing both of these resources.

In most cases, this diagram would be tilted up or down, meaning that an organization would be overusing (or underusing) one of these two sources.

For example, and organization that lives in fear of having enough money to cover its expenses, most likely is overusing its financial capital to measure its ability to perform a task.  Forgetting that there may be multiple resources that it could draw upon from it human capital to provide that same service or task.

Similarly, an organization that focuses purely on analyzing it volunteer or stakeholder base, often will forget to really evaluate how to best leverage its financial resources to support its human capital.

In order to strike a balance, organizations need to take time to analyze the full potential of all of its resources by taking the following steps: (more…)

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When you listen to the national news the biggest stories have been the economy and the lack of jobs for Americans. Some headlines list that the national unemployment rate is 8.2%, while others talk about the stock market and sales numbers.

Rev. George MacLeod

As I was listening to a similar report this past weekend, I stopped to reflect about how local churches can offer assistance or help to people who are struggling to find work. In my thoughts, I remembered reading a story about a pastor in Scotland who was named George MacLeod.

Rev. MacLeod was best known for founding the Iona Community in Scotland, but before this time, he was  a pastor at the Old Govan Parish Church in Glasgow.  He served there during the 1930’s (Great Depression), as the Glasgow ship building industry started to decline, and he was struck by the amount of poverty around him.

As a pastor, he decided that it was time for his church to make a difference in his community, and with other church and civic leaders,   Rev. MacLeod developed several work programs. (more…)

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