10 Common Challenges Many Not-for-profits Face

Transcription

1 10 Common Challenges Many Not-for-profits Face January 2016

2 1 What exists? Orientation The nature of volunteer turnover leads to fractured ideas around a board s role Board members join because they want to give back or have vested interests: degree of knowledge directors have regarding how a board functions should not be taken for granted What kind of board is this? Method of orientation Speak w/ one voice What framework is in place? Who are the supports /leadership? Clarity is required to educate directors on the role of a board: governance vs. policy Board orientation is both a crucial, and often overlooked step in process (formal or informal) Distinctions need to be made between the role of the NPO, the role of the board, and the role of a director: who is the board speaking for? Why/how does a board speaks with one voice? There s a need for new directors to understand where their board fits within a spectrum of governance/operations, and that they re stepping into an organization with previously established infrastructure, culture, and community reputation Boards need education on their own liability/authority, but they also need to respect the leadership role pre-existing staff play in being the glue that holds the organization together; the folks who have the day-to-day knowledge of operations

3 2 What exists? Governance There s a need to understand governance in more practical terms There s a need for focused education to help NPOs understand governance in easier/more practical terms Understanding the NPO model Minimum standards should apply Someone to take the reigns There are vertical levels of authority, as it pertains to legal liability/accountability (note* NPOs are not typically hierarchical in the nature of how they operate, but should be understood as hierarchical reg. legal liability this is where management frameworks and responsible board delegation/oversight comes into play; refer back to point #1) Regulatory infrastructure is required to set standards that hold volunteers and/or staff accountable Leadership is required to address the ongoing management of expectations

4 3 What s required? Compliance There are lots of things to monitor, and it s not uncommon for NPOs to mismanage compliance filings There are 3 different kinds of compliance: legal, ethical, and conditional (e.g. grants) There s a lot to monitor Can things be synchronized? Training is needed Compliance timelines vary, including: deadlines for filing provincial Society Annual Returns; bylaw rules on AGM, audit, board term, membership renewal dates; CRA fiscal year ends, tax filings, source deductions for paid staff; financial expenditures (Use of Proceeds), etc. It is recommended if/when possible for NPOs to line-up membership renewals, fiscal year ends, AGMs, and provincial filings in an order that simplifies workload by synchronizing oversight Financial management is a problem area

5 4 What s missing? Standards of Practice It s common to have gaps in governance/ operations infrastructure standards of practice Boards should be willing to make a dedicated effort to self-evaluate and improve where needed Plug the holes Opportunities to enhance your framework Governance cornerstones To fill gaps where NPO best practices determine what constitutes a must have To understand differences between the must haves and the good to haves, and fill the gaps while balancing risk management with being reasonable (note* boards are in a fluctuating continuum of readiness. This impacts governance continuity and an ability to uphold/improve practices) Common shortcomings include (top priority): Orientations for new board members Bylaw reviews Policy & procedure manuals (current) Compliance oversight Financial internal controls Strategic business plans (note: CA/LOCs)

6 5 What can help? Best Practices There are lots of NPO best practices that can help, whether or not they re mandated Forward-thinking NPOs tend to look towards best practices for continual improvement Resources you might not consider Measurements Variances in practice There are lots of tools that can improve practice, but without compliance mandating things, they re less likely to be considered (Logic Models, etc.) Organizational sectors have moved aggressively towards outcomes and indicators Not all NPOs have the same stakeholders with a vested interest in making those recommendations Know the slip falls (at least those experienced by many other groups) Common problem areas that can be improved upon include: Code of conduct Conflict of interest Confidentiality Board/staff relations Board/committee relations Discrepancies in employee management

7 6 What can help? Sustainability of boards Succession planning is about having the right mix of: (1) org. reputation (2) recruitment tactics (3) infrastructure, (4) quality of experience It s important for boards to plan ahead, but it s equally as important that boards self-assess their effectiveness so they re in a position to recruit from a position of organizational health and preparedness Clarifying roles Clear expectations (with reasonable flexibility) Tactics for gaining commitment Recruiting deliberately Role of membership Pre-screening Self-reflect Volunteer burnout is largely based on a volunteer having a poor-quality experience, which can be attributed to many different things including: lack of clarity around ways of doing, lack of consistency around ways of doing, overwhelming workload, personality clashes, polarizing board dynamics, etc. Bylaw and/or policy mechanisms can help with board recruitment, but it s important to create reasonable criteria (a bylaw stating Presidents must be on the board for a prior term in a different position can be challenging to maintain; however, if it suits the org. culture, sobeit) NPOs should weigh pros/cons of board term lengths against other mechanisms like staggered terms (it s very challenging to run elections for boards where term lengths are all 1-year/ea; and, it s also difficult to support staggered terms when volunteers come-and-go prematurely) Recruitment is an ongoing process: it should be a planned process with deliberate goals Membership recruitment is the preliminary step Nominating committees are a good practice Organizational culture and reputation is key

8 7 What can help? Conflict Many boards experience conflict in various forms, yet there is a lack of understanding as to how conflicts arise Conflict is often a result of misunderstanding due to differences in ways of doing/misperception, and the mismanagement of issues as they build (or optics around this). Conflict is preventable, and easier to solve when handled earlier The majority of conflict situations arise due to the following: (1) a lack of clarity in roles and responsibilities that leads to (2) a lack of continuity in practice From this place of inconstant practice/governance: (3) the optics of poor-decision making, leads to (4) escalation of misunderstanding and dispute Conflict is never ending, disputes are manageable There s a difference between managing a conflict and managing a dispute: conflict is never-ending (it s impossible to have a system that ensures all parties will permanently be united in ways of doing, however disputes arise when difference of opinion are not properly managed/regulated)

9 8 What should be considered? Low membership numbers Membership recruitment is an ongoing struggle: CAs (not incld. other NPOs) average 15%/comm. Membership recruitment is about relationship building, not simply supply/demand of programs and services Why do people join your CA? What do you see as your identity? Do you tell your story? Self-evaluate People buy in to support CAs for 3-reasons: (1) to gain access to what they want (2) to gain access to perks that membership offers (3) to connect with an NPO they identify with (relationship) Profile building is crucial to how an NPO establishes its presence in the eyes of community Communications have to be utilized effectively to ensure the right message is delivered to both a captive and disinterested audience. It s about effectively telling your story. Benchmarks are required: self-assessment and evaluation is a key step for helping to plan ahead

10 9 What should be considered? Missed opportunities Many NPOs miss out on promotional opportunities due to hyper-focus on the immediate interests It s crucial that NPOs understand how/when to maximize their opportunities What platforms do you use, for which purposes? Where can you expand efforts? Don t give up! (without reason) Work to secure resources Community-based programs/events/services naturally create different platforms ideal for promoting, raising awareness, and helping generate broader interest with captive audiences (AGMs that do little to build hype ) Many NPOs neglect to use program/event platforms to their broadest/fullest potential In any initiative, momentum building should be a key consideration when measuring success It takes dedicated resources to look for opportunities, delegate people, and fill those gaps to avoid missed opportunities

11 9 Who do you prioritize? Who you serve /who you represent NPOs range in their capacity to tackle matters of representation The Calgary model legitimizes community associations as a key stakeholder network, with the opportunity to be the voice for community life. With the role CAs play in working with the City of Calgary, community stakeholders, and service providers, matters of community representation arise periodically, however can be challenging for the network as a whole on a consistent basis. Organizational health is key State of readiness Difference between reflection and representation? A willingness to act Understanding how all NPO trends in this document are related A framework of accountability helps strengthen organizations so they are more readily positioned to respond to need The goal is to cultivate sustainable leadership and empower boards to adopt continuity in their practices, leading to responsible governance, representative decision making, and reflection of the diversity inherent in the audience they serve. Understanding when/how you take a position on something is crucial. There can be differences between your role as an organization and public perception. Representation is NOT about CAs responding to every issue, all the time, at any hour of the day. It s about CAs understanding how to be a responsible voice for community life.