Nonprofits In Society and how you might get involved

1. compassion compassion growth leadership development service meaning meaning growth leadership development Nonprofits In Societyand how you might get involved entrepreneurship service vision Debra Karp community

2. What is a Nonprofit? • An organization whose primary propose is public service • Mission Statement: Nonprofits all have a mission statement that defines the organization. It is this mission, not profit, that nonprofits work to achieve • 501(c)3 status: Federally tax exempt, donations tax deductible, non-political organization (some nonprofits do engage in politics and are organized under a different category) • Profits are acceptable

3. 6 Characteristics of Nonprofits • Organizational/institutional to some extent • Private- Non-governmental • Do not distribute profits • Self-governing • Voluntary-involving some degree of voluntary participation • Of public benefit- provide some public service and/or contribute to public good

4. Types of Nonprofits Nonprofits often fulfill a currently unmet need in society. There are numerous types including, but not limited to, the following: • Arts (Museums, Theaters) • Health (Disease Research) • Economic Development (KABA, RCEDC) • Animal Protection (PETA) • Foundations (Award grants) • Educational (Schools) • Environmental (Sierra Club) • Religious (Most Churches) • Human Services (Red Cross) • Historic (Preservation) • Youth Development (YMCA)

5. Quick Facts • 10 percent of workers in the U.S. were employed by the nonprofit sector (12.9 million employees) in 2005. • There are over 1.5 million nonprofits in the United States (2009) • Wisconsin has approximately 34,000 nonprofits (2008) http://www.independentsector.org/PDFs/npemployment.pdf http://nccsdataweb.urban.org/PubApps/profileStateList.htm

6. Governing Documents • Articles of Incorporation • Filed with the Department of Financial Institution (at the state level) • 1023 Form • Filed with the IRS, defines organizations behavior, mission, board roles, etc. (to achieve 501(c)3 status) • Bylaws • Decided and approved by the board, defines board roles and structure • Policies • Operational guidelines

7. Membership Board of Directors Ad Hoc Committees Standing Committees Executive Director Nonprofit Corporate Structure Committees: Committees meet separately from the board (generally) and work on specific issues, like finances and marketing. Most have an executive committee that will make decisions in an emergency. Board of Directors: Makes decisions for the organization as a whole, compromised of people with several different skill types, usually meets a few times per year. Executive Director: Runs the organization on a day-to-day basis. Roles may vary depending on the mission, although most work on raising finances and improving functioning Membership: Not all Nonprofits have a membership system. A group of people who have voting rights in the organization. The Executive Director’s role is similar to that of the President/CEO of a company (and in fact in some organizations are named as such). Committees must have at least 3 board members on them and may include people who do not sit on the board that may have expertise that members do not have. Standing committees are permanent, Ad Hoc committees temporarily work on more temporary projects. Most boards should have someone skilled in accounting, law and an expert in the field of their mission, often the executive director sits on the board and/or guides the meetings. An honorary or auxiliary board may not make decisions but may serve as a resource and a source of support

8. Types of Boards • Governing: legal entity of the corporation • Trustees: also the legal entity of a corporation, while acting in an advisory function as well • Advisory: volunteer board that offers advice and expertise to the organizations—does not make corporate decisions • Honorary: members bring prestige, financial support or recognition to the organization, but may or may not serve as a guiding force in the organization • Auxiliary: generally a fundraising board

9. Board of Directors Board of Directors Executive Director Artistic or Environmental Director Managing Director Staff Staff Staff Staff Nonprofit Organizational Charts

10. Funding • Funding for most nonprofits, should come from a variety of sources, such as: • Investments • Class Tuition • Product Sales • Special Events • Fees for Services • Membership Fees • Individual Donations • In-Kind Contributions • Social Entrepreneurship • Sponsorships & advertising • Corporate/Business Donations • Planned Giving (beneficiary of wills) • Grants (Foundations & Government • High-functioning nonprofit boards should have 7 to 11 different sources of funding for their organizations and some should be unrestricted

11. The Board of Directors • Avoids Conflicts of Interest (when a board member will benefit financially from sitting on the board) • Must be formed before a 501(c)3 can be granted • A group of volunteers • Legally responsible for actions of organization

12. Four Roles of Board Governance Mission Oversight • All organizations need a clear mission • Written/approved by the board and reviewed by the board annually • Board ensures organizational activities forward the missionof the organization • Annual and Strategic Planning • Selection/Evaluation of Chief Executive • Ethics and Policy • Organizational Assessment and Monitoring and Board Self Assessment • Annual Audit by outside source • Approval of Budget • Fundraising Planning • 100% Contribution from Board Directors • Making the Ask • Networking and Contacts • Organizational Ambassadors • Represent stakeholders’ views and opinions • Awareness of Community Needs Outreach Resources

13. Committees While there can be many kinds of committees a few are standard for most organizations: Finance Other Committee Types Executive Governance/Nominating • Makes decisions for the board in the case of an emergency • Generally includes the Executive Director and president • May not always meet outside of board meetings • Often compromised of officers and executive director) • Oversees the finances of the organization • Generally includes the treasurer • Reviews (and may assist in development of) budget • Should ensure other board members understand finances • Identifies and recruits new board members when necessary • Orients and educates new board members about board service • Develops board job descriptions • Prepares Board Manual • Oversees Board Self-Assessment • Marketing • Fundraising • Personnel • Strategic Planning • Legal

14. Liability • Board of Directors legally responsible for organization’s actions • In some states, the personal assets of the board of directors are not protected (In Wisconsin personal assets are protected) • How board directors can protect themselves from liability issues: • Attending board/committee meetings • Avoid Conflicts of Interest (when a board member benefits financially from sitting on the board) • Be aware of financial status and happenings (!!) • If confused, ask questions • Ask about a board liability insurance policy

15. UW-Parkside’s Nonprofit Development Program • Enhances the capacity and effectiveness of nonprofit organizations • Kenosha, Racine and the surrounding areas • Serves as a resource and referral center • Provides management and technical assistance • Offers professional development for board and staff of nonprofits

16. Types Of Technical Assistance Offered • Strategic Planning • Marketing Planning • Fundraising Planning • Technology Planning • Diversity Training • Program Evaluation • Computer Training • Technical Assistance • Grant writing • Board Development • Research • Graphic/web Design • Accounting / Finance • Marketing • Program Evaluation • GIS Mapping