Archive for August, 2007

Confidential Sites & Domestic Violence Funding

Friday, August 31st, 2007

Today I will probably get a few people upset but the intent is to fuel a conversation about why funding in the domestic violence area has stalled and to move forward on increasing funding to reduce domestic violence.

First, the idea of confidential sites for programs of domestic violence is a falsehood. The minute a person is placed at a site, employees at the site, police, and fire are aware, you are a neighbor of others, the site is not confidential. What an organization should be doing is making the site safe and secure. I ask why not having police as part of your safety plan does not place the house more at risk in emergencies. What alarm system is there in place? Have you ever called police and been placed on hold?

Statistically there is plenty of information about crimes of abuse but so little information is used to show actually where domestic violence money is spent compared to the statistics. By hiding the very programs that can best service confronting the issues of violence, it only makes it harder to prove the domestic violence nonprofit’s worth to the community. Bringing the community, business leaders, and political establishment together to feel and touch the level of need and know what has been done to date, can only provide for more funding to give every citizen equitable access to services. No one should live in fear.

So I challenge the domestic violence providers to be more open and trusting of the institutions they have hidden from that can advance their important mission to reduce the violence. You cannot accomplish the goals alone.

Positive Outcome Among the Credit Crunch

Thursday, August 30th, 2007

The Wall Street Journal reported this week six banks will pay more than 5% on six month, one year CD’s or money market accounts.

AMTrust Direct

6-month CD: 5.36%

1-year-CD: 5.31%

E-Money Market: 5.31%

Capital One

6-month CD: 5.00%

1-year-CD: 5.00%

Money Market: 5.00%

Countrywide Bank

6-month CD: 5.5%

1-year-CD: 5.5%

Savings Link Account: 5.5% (on balances of $10,000)

IndyMac Bancorp

6-month CD: 5.25%

1-year-CD: 5.5%

On line Money Market: 5.75%(on balances 25,000 plus)

ING Direct

6-month CD: 5.15%

1-year-CD: 5.15%

Washington Mutual

6-month CD: 5.5%

1-year-CD: 5.1%

On line Savings: 5.0%

How’s that for giving you a safe return on principle during the turbulent market?

See if your local Bank will match the return.

In your cash flow management it may be prudent to take advantage of these types of six and 12 month CD’s. For financial Institutional Management and Retirement Plan Management I refer you to Fisher Investments which I previously mention in an earlier Blog. I would suggest John Wasiejko at Fischer Investments john@fischerig.com 603-361-4540

Do You Really Care?

Thursday, August 30th, 2007

You can call today’s message a balance between outcomes for yourself and your functions at work.

What random act of kindness did you do today?

Did you go out of your way today to thank someone?

Did you take a moment to stop by one of your programs or sites today? When was the last time? If it was more than a month, it’s too long.

Have you provided any reports to your Board this month or met with any board members?

Did you call potential donors this week?

Does another person’s input really matter to you?

How well do you take negative feedback?

If you think your organization is perfect, think again. Most people never provide negative news. If there is fear among employees due to your management style, it only hides troubling mistakes and problems.

When in doubt, get a neutral party to obtain feedback. It’s better to understand the underlining issues of your organization, instead of reading it in the paper or a government report.

Why is this all important? People support people and like to get behind a winning team.

There are 1 million plus nonprofits in the USA and every day more are created. Where do you stand among them? What difference does your organization really make? Why should your organization get funding and donations instead of a similar organization? Who knows your organization? Who is on your Board that carries weight in the community and/or among funders?

Marketing and Branding make a big difference.

Are you Efficient?

Wednesday, August 29th, 2007

Here are a few thoughts to consider.

A 20-40 Minute Efficiency Rule: If you were to time study drive times, you would find that up to 20 minutes of staff time is the most effective in the use of the staff person to float or go to appointments. After 20 minutes up to 40 minutes the effectiveness and efficiency of the staff person’s time drops dramatically. After 40 minutes you’re wasting money. While cell phone use has improved staff efficiency, it has also increased the number of accidents and increased your organization’s exposure to lawsuits if they are involved in an accident.

A Transaction Efficiency Rule: Repetition.

Organizations under $2.5 million rarely achieve this efficiency since the individuals have to function with many diverse duties. There is usually not enough transactions in any one area of expertise to be most productive in that function. Being busy 100% does not mean the time is most productive. As an organization grows toward $5 million, various positions within an organization will begin to be more efficient. Organizations between 5 and 10 million dollars seem to be the most efficient. Once organizations reach $10 million in revenue there is a new level of inefficiency as they build new layers of management.

A Contracted Individual vs. Hiring an Employee Efficiency rule:

When starting a program/initiative there are many unknowns. How will things run?What are the best ways to accomplish this? Whom will we serve? Is there enough interest to support the program? What will be the market support for the price? The use of contracted individuals to start a program/initiative is the best way to incur the least costs and make something successful. A contracted position can be created to be more outcome based and costs assigned and tracked more closely. Too many times when a new program/initiative is started it is blended with other ongoing costs, which makes it very hard to track what the true costs and needs are to make the program replicable.

Brand Use Efficiency:

Many organizations have created great program models, procedures or processes that only they know about. The use of your brand and its accomplishments are important elements to make your organization stand out. While it is great to share ideas, it is even better when you get the credit.

False Security with Service Protection Plans

Tuesday, August 28th, 2007

The service protection plan contracts to cover repairs to your equipment are not what you expect. There is no provision on the amount of time a repair can take. There is no provision to cover expenses for damage caused, loss of business or additional costs incurred.

The key is to buy from a local business that has consistently backed up their product and if it breaks or does not work appropriately in the first year they replace it. Most equipment is backed by a limited one year warranty.

Have a relationship with a local IT shop and equipment repair experts who not only can provide you with better discounts, but just may be that opportunity for raising money later. The more the business community knows about what you do the better they can support you. People network each day, warranty plans are paper in a file and do nothing to create value for your organization.

So when evaluating that piece of mind to purchase an additional warranty, think of putting that money into your maintenance, repair or equipment reserve. Think of the network of businesses with whom a relationship expands the value to your organization. These warranty plans make a lot of money for GE and other large investment companies. They do not do the repairs, everything is subcontracted and they have no responsibility for its quality.

People give to people, so tap your assets to make them work for you in developing more relationships in the business community.

Tomorrow Might Be Too Late

Monday, August 27th, 2007

Recently, I was made aware of an individual’s son who had his head bashed in as he was walking to the store early one night from his apartment to get eggs for breakfast. It was a random attack by a number of youth.

It was a worrisome time for all of what the outcome would be. It turns out the bleeding and swelling on the brain was treatable. But what about the times there is not the ability for a positive outcome?

The students and faculty of Virginia Tech are remembered but how many did not have a chance to say they love the person or took the moment to make a positive remark to the person?

Matthew Shepard was remembered but what chance did people who love him or had something positive to say have to tell him?

Incidents of youth/young adults lashing out in violent ways for fun or to make a statement places too many people at risk.

Violence is around us every day and our society supports the delivery of the content.

Recognize the importance of families, friends and work as the cause of support as well as stress in our employees. The stress level of an individual is hard for each of us to understand and we can only try to provide those supports that make the stresses of life manageable.

Promote employee communication at work. Promote communication at home. Promote ways for employees and family members to obtain the supports they need. Helping employees to know where to obtain services only makes a stronger healthy employee for the organization. Set up an Employee Assistance Program.

In the USA there is an unusual level of focus on preventing most levels of discussion on sex or displaying it, but almost no restriction on violence. I question our state and federal leaders to identify whether the open access to all ages of violence content is the cause and root to more violence. Maybe it is time to release the restrictions on sex and place those restrictions on violence.

If each nonprofit organization supported the focus away from violence the community would be a better place. Many local domestic violence providers can help your organization set up an appropriate program for your employees and community.

A two pronged approach utilizing Employee Assistance Programs (to find a COA or EASNA Accredited Programs in your area click on the Employee Assistance Society of North America web site link http://www.easna.org/home.aspinc) and for programs relating to decreasing violence contact your local domestic violence provider. It will only improve the safety of our children, families, friends, the people you serve and employees.

One particular Employee Assistance program which I am very familar with when I was a government regulator was selected in a bid process by the Commonwealth of Massachusetts. Health Resources is a national organization with many years of expertise in this field serving employees of both nonprofit and for-profit organizations of many sizes. This employee assistance company should be able to come up with an affordable solution for your organization. Contact Sarah Stewart at 508-650-6893 or email her at sstewart@hlthres.com.

In is time for changing our country’s fixation on violence. Nonprofits are the largest employee group covering every corner of America. Make a difference and do something positive towards reducing the violence.

Maybe the new motto for the USA should be “Sex Not Violence”!!!!!!

Maximize Internships

Sunday, August 26th, 2007

Do you have interns? If your answer is no, then you are missing out on a great resource. Internships are both paid and unpaid. During the academic year it is easier to obtain unpaid interns than during the summer. So start now.

Advertise on Craigslist.com - it’s free. Send notices to the local high schools, colleges and universities in your area.

Treat interns like employees. Provide them the training and support you would for all employees. Do not call them interns to the outside world. If you do you are devaluing their worth to you.

Value the intern employee and you get value from them. Let the interns feel that they are contributing to your organization. Be open to hear their view of your organization and be willing to be challenged by them asking questions.

If when asked why something is done in any particular way, your response is, “we have always done it this way”, STOP: you need to rethink why.

When an intern leaves, make sure you debrief them and learn their likes and dislikes of working at your organization.

Ask how they would suggest the internship be made better.

Remember, interns are future employees, future business leaders and future potential givers. Their impression of your organization will carry with them for years.

Employee vs Employer

Saturday, August 25th, 2007

Being a non-profit does not mean keeping bad employees. Realize you are not alone. Every organization, whether non-profit or for-profit, has the same problem.

In most organizations, managers and supervisors fail to conduct adequate responses to create the right path to improving, correcting or terminating an employee.

Does your organization have a written employee policy? How often does your organization review it to make sure it is up to date? How often does an employee review it and sign off they have read it? Does your organization have annual reviews on the employee? Are the duties described for an employee measurable? Does your organization provide a standard written corrective action document for managers and supervisors to follow? Is it clear to employees those actions that will result in an immediate termination? When was the last time your organization terminated an employee? The quickest way to the demise of an organization is a bad employee. Being prepared is having a standard process that everyone follows and management is responsible for tracking such.

No funder gives money for ineffective, inefficient, or disruptive employees.

The IRS requires that nonprofits raise money to offset their cost of services, not to run deficiencies by having two employees doing the same function and wasting funds.

Deal with the issue: Personnel/supervision is the hardest part of any management job. However, No pain, no gain; just a slippery slope to awful situations.

Remember: If you spend zero time and effort on a problem you will fail. Success takes time and effort.

Taking Advantage of the Subprime Problem

Friday, August 24th, 2007

Who says a Nonprofit cannot take advantage of other businesses or individuals having problems holding on to their assets?

There is a tremendous need for affordable housing and utilizing the open market to rent does not control one’s costs or keep rents affordable. The nonprofits, government and business community must remove housing units from the open market to keep housing affordable.

Today there is an opportunity to utilize the market being depressed to buy housing units of new construction, foreclosed properties and reduced pricing. Builders, banks, investors and sellers of homes are just trying to stay afloat and salvage what they have.

Be the aggressive buyer.

Be the savior of the development that might be foreclosed on.

Be the partner that is brought in to make the housing project go forward.

As a nonprofit, most organizations can take advantage of an array of resources such as: HUD, Bonding, Fundraising, Local and State funding, and many life long clients in need of housing who have subsidies to make a housing initiative successful.

Is it too late for your employee?

Thursday, August 23rd, 2007

Your organization needs to think of positive outcomes for your employees, whether they want it or not.

Most employees left to their own time and effort will fail to accomplish all of the goals until the last minute. However, life long goals are very much effected by when and how long the effort is made.

Consider the fact that many employees pay for health care and child care expenses out of their pocket and do not have flexible spending accounts. They not only spend for the services they need but are paying the government taxes on money they use for these expenses when they could be using the taxes they pay on this money for their use.

AARP has been pushy and I agree that employees need to be automatically enrolled in retirement plans. The employee should be the one who has to go through a process of opting out of the program. Make your organization’s incentives tied to their participation no matter how small. It needs to be clear to them that if they opt out they will not be eligible for possible matches by your organization. In addition, have flexible spending plans and emphasize their savings.

Other areas for use in employee retention are health, dental, death benefits, college tuition, fiscal planning, housing and time off. I will cover these areas in more detail at another time.

But in the meantime you do not need to be alone in these efforts. Use expertise in the field.

For retirement I would suggest John Wasiejko at Fischer Investments john@fischerig.com 603-361-4540

For Flexible spending accounts and benefits contact Matt Hedges at Great Harbor Benefits ghbcapecod@aol.com 508-540-7940 x 11

No fees for these referrals are paid to NPCM or myself.