Define non profit (4)
- No profit for participants
- Charitable or beneficial purpose
- Governance structure (usually a board)
- More dependent on volunteers and donations
Advantages of a non profit (8)
- 1. Taxes, no income tax, possible relaxation on property tax and can issue tax receipt
- 2. More community support in terms of customers and donations
- 3. Volunteers easier to obtain
- 4. Government grants and subsidies more available
- 5. Potentially lesser government regulations
- 6. Consensus style governments usually more sensitive to customer needs
- 7. Greater employee loyalty
- 8. Can get away with paying lower wages because of buy in
Disadvantages of a non profit (3)
- 1. Lesser resources available
- 2. Dependence on government and dinars (need to keep donars happy)
- 3. Boards sometimes cannot make a decision fast enough
Types of non profits (12)
- 1. Health services
- 2. Education and research (universities)
- 3. Social services (food banks)
- 4. Legal services
- 5. Religious congregations
- 6. Funding intermediaries (United Way)
- 7. Arts and cultural organizations
- 8. Public charities (red cross, Canadian came society)
- 9. Faith based charities (MCC)
- 10. Service organizations (Legion, masons etc)
- 11. Sports and community organizations (hockey league, curling Club)
- 12. Multicultural organizations (focuses on promoting 1 or more cultures)
Why is it better to have a society than just a club?
Is incorporated and creates limited liability. Liability rates with the society not the individual members (some exceptions)
What is the difference between an ordinary resolution and a special resolution?
Ordinary has majority vote, extraordinary is 75% and must be given 14 days notice
What does section 2 of the society act state?
Can operate business but any profit must go back into the society, not to an individual
How can a society change its name or purpose?
By special resolution (75% vote) and register it with the registrar.
What section of the society act deals with directors responsibilities?
What happens if there are less than 3 directors?
No more limited liability. The last 2 people are responsible for all debts and can be held personally responsible if sued
Recite section 25 (2 parts)
- 1. A director of a society must act honestly and in good faith and in the best interest of the society and
- 2. Exercise the care, diligence and skill of a reasonably prudent person
Which ways can and can't a director vote at BOD meetings?
- Must vote in person or by telephone or other communications medium of specified by the by laws
- Cannot do email voting
Which sections deal with disclosure of interests?
27 and 28
How can a director be removed and what section is this found in?
Special resolution (75%) section 31
How often must an AGM be held?
Every 15 months and every calendar year. Must be held in BC
How can members of a society force an AGM? Which section is this found in?
- Must have 10%, directors have 21 days to set a date, meeting must take place within 4 months
- Section 58
How many people are in a quorum generally?
3 people can hold a meeting
What section deals with the investigation of a society?
What's the difference between a mission and vision statement
- Mission: sets out purpose, business and values
- Vision: sets out long range vision and goals
What are the steps in coming up with a strategic plan? (6)
- 1. Preplan organization (where, when, who, background info)
- 2. Hold the meeting (environmental scan, SWOT analysis, prioritization)
- 3. Create strategic plan (put it in writing)
- 4. Board must approve it
- 5. Board implements it
- 6. Board reviews it every year
Steps in a human resource strategic plan ( 6)
- 1. Forecast HR needs over a set period
- 2. Assessment of current HR capabilities
- 3. Gap analysis - identify the gap between what you have and what you need
- 4. Prepare plan to address this gap. Ex. Need to hire / train 10 people
- 5. Implement the plan
- 6. Monitor the plan
What are 3 policies you should have in place as a non profit?
- 1. Employment practices on hiring , promotion, sick time, sexual harassment
- 2. Create job descriptions
- 3. Create employee performance evaluations (every 1 to 2 years)
What are 5 pieces of legislation non profits have to comply with aside from the society act?
- 1. Privacy legislation
- 2. Work safe BC
- 3. Human rights code
- 4. Employment standards act
- 5. Common law dealing with sexual harassment and unjust dismissal
What issues in the employment standards act affect non profits? (6)
- 1. Minimum daily hours (section 34) must be paid for 2 hours
- 2. Overtime over 8 hours a day and 40 a week (section 35)
- 3. (Section 42) banked time. Banked overtime must be at the premium 1.5
- 4. (Sectiom 63) layoffs- if funding ends and need to make layoffs, must give enough notice or pay severence pay
- 1-2 years 2 weeks notice or severence up to 8 weeks HUGE RISK
- 5. (Section 96) directors liability for up to 2 months unpaid wages gor each employee
- 6. (Section 16) must pay minimum wage
What sections of the society act are most relevant? (8)
2 - 24 - 25 - 27 - 28 - 31 - 58 - 84
What are the first 7 steps to avoid fraud and be financially accountable?
- 1. Have at least 2 people signing checks
- 2. Hire a bookkeeper
- 3. Have monthly reconciliations of bank accounts and checks (Not performed by check writer)
- 4. Invoices should be approved by a supervisor before payment
- 5. Should have a treasurer and a finance (audit) committee to supervise and review statements
- 6. Have prompt annual statements to show where you are at
- 7. Hire a professional accounting service (if society can afford it) to review statement for year end
What are the NEXT 7 steps a society should take to be financially responsible?
- 8. Get an external audit done if possible. (It usually comes with a management letter telling the board how they can improve)
- 9. Should have computerized accounting software
- 10. Have cash receipt journals
- 11. Have equipment inventory
- 12. Have policies on finance and investments (ex. Can it buy stocks and mutual funds? )
- 13. Operate within a budget
- 14. Have criminal record checks done for anyone involved in the finances
When is it Ok for a non profit to hire a specific group and what where is this law found?
Human Rights Code Section 41: If a charitable philanthropic non profit has as its primary purpose the promotion of an identifiable group, it is not discriminating to hire based on that group
What does Section 42 of the Human Rights Code state?
- It is not discrimination to adopt an employment equity program in order to equal out the racial inequality
- They need to file this program with the human rights tribunal
Describe the 2 types of restricted funding a non profit may have?
- 1. Internal: The funds are set aside for a specific purpose by the organization.
- 2. External: Funders decide where their money goes
What is Fund Accounting?
Each program within the non profit has its own accounting/budgets
What are the FIRST 8 ways to fundraiser?
- 1. Telethons
- 2. Retail sales - ex. Girl guide cookies you give to the cause and get something in return
- 3. Recognition - poppy drives you are recognized for giving
- 4. Large events ex. Galas
- 5. Store promotions: store sells something and gives a percentage to the charity
- 6. Pub nights
- 7. Collection plate at churches
- 8. Membership dues
What are the 4 benefits to attend a Gala?
- 1. It's an evening out
- 2. It's a networking opportunity
- 3. It's a tax write off for businesses
- 4. Can give to a worthy cause
What are the NEXT 5 ways of fundraising?
- 9. Paycheck deductions ex. Can donate to United Way
- 10. Child sponsorship
- 11. Business sponsorships (ex. businesses give money to have their name on the building)
- 12. Individual sponsorships : ex. Run for a cause and people sponsor you
- 13. Planned giving: put an organization in your will
What is an endowment?
When a foundation gets someone's estate when they die and the interest goes to a charity of their choice
What are the 4 major ways non profits earn finds in order of their significance?
- 1. Government
- 2. Earned incomes: ex. University gets money from parking and bookstore
- 3. Private giving
- 4. Corporate donations
What are 2 ways in which the government gives finding to non profits?
- 1. Grants: a lump sum
- 2. Contracts: contacted by the government for services provided ex. Get $400,000 for providing 10 beds a year for alcohol treatment
What are the 4 ways of giving to a non-profit?
- 1. Restricted funds: A gift for a specific purpose
- 2. Unrestricted gift
- 3. Matching grounds: an organization will match your giving
- 4. Gifts in kind: To give your time, skills or material gifts. Ex. Food for the food bank
What are donors entitled to when you're fundraising? (4 points)
- 1. Donors are entitled to have access to financial statements
- 2. Must tell the donor upon request If the solicitor is being paíd or not
- 3. Expected to advise people not to give money if it is too much for them. Ex:elderly
- 4. Don't share the donors name with other organizations if they ask not to
What are 2 very unethical things some non profits do
- 1. Pay their fundraisers a percentage of what they fundraise. (Makes them very aggressive)
- 2. To sell their Donors list. This is not allowed but renting it out is a loophole some use
What are the 3 main ethical points in the fundraising and accountability code and 3 additional ways to stay ethical?
- THE CODE:
- 1. Transparency: being truthful about what funds are being raised for and how much goes to amin.
- 2. Designated use of donations: use the donations for what they were given for
- 3. Payment of fundraisers: must be paid by hour or salary, NOT commission
- THREE MORE ETHICAL ACTS:
- 4. Annual reports murat be factual
- 5. No more money spent on fundraising than necessary
- 6. Charities must give at least 10% of their assets to their cause every year
What other 3 ethical issues should a non profit have policies for?
- 1. Stewardship of the funds: making sure the donations are kept safe
- 2. Donor source: criminality ex if the Hells Angels wanted to give money
- 3. Gaming grants: is it ethical for a non profit to take gaming games for an addiction Centre?
What are the 5 steps in the Ask Event Large scale solicitation?
- 1. Preparing the case statement: A short description of the organization and it's needs
- 2. Prospecting potential Donors: identify individuals and groups to ask. How do you find these people?
- 3. Cultivation: inform and educate potential donors about organization. Can build relationships by holding a small event. Ex. Lunch or invitation to facility
- 4. Solicitation: either an individual asks for money or the organization holds a big event where pledges and donations are made. Group dynamic builds enthusiasm
- 5. Stewardship: follow up with the person. Show appreciation and keep them involved.
How did the church raise money for a new roof?
They put on a concert
How would a drug treatment Centre for men raise money?
Its better to focus on an event, because not much sympathy for addicted men
What are the 5 reasons a non profit should market?
- 1. Client awareness
- 2. Donor awareness
- 3. Volunteer awareness
- 4. Gain Community support
- 5. Advocate or educate about the cause
What are the marketing 4 P's that a non profit should consider when advertising?
- 1. Price
- 2. Product
- 3. Place
- 4. Promoting
What are the 6 key ingredients to a communications (marketing) plan for non profits?
- 1. Key messages: slogans, phrases etc.
- 2. Target audience: choose a target audience that toy can afford to reach
- 3. Communications objectives: why are you advertising? To get donors? To gain positive feeling in the community?
- 4. Tools: What communications tools can you use? Ex. Pamphlets, Facebook, newspapers etc.
- 5. Budget: communications strategy needs a budget of its own and must fit in the overall budget
- 6. Spokesperson: need to have 1 spokesperson so the message remains clear.
Name 8 communications tools a non profit can use for their marketing strategy?
- 1. Annual report: could publish their annual report in the newspaper for publicity
- 2. Bulletins and Pamphlets
- 3. Facebook
- 4. Internet / emails
- 5. Media: a) radio, b) tv, c) newspapers
- 6. Newsletters (churches)
- 7. Organized word of mouth
- 8. Website
What are the 4 steps in creating a media strategy for a non profit?
- 1. List media: make a last of all the media outlets available. Ex. Radio stations, newspapers etc.
- 2. Develop a calendar of events:
- 3. Issue media alerts: have a release day to promote your event. Something pre-prepared
- 4. Create media kits: a kit that has information about the organization so people doing articles don't have to do much research
What are the 5 types of evaluations that a non profit should consider?
- 1. Program evaluations
- 2. Executive director
- 3. Employees / volunteers
- 4. The whole agency
- 5. B.O.D.
What are the 6 reasons for having evaluations in a non profit?
- 1. To assess the relevancy of a program
- 2. To establish Funders: shows efficiency and relevance
- 3. Benchmarks: show how you are doing compared to other societies
- 4. Client service: are you providing a good service?
- 5. Accreditation: some Funders require this (like ISO)
- 6. To show legitimacy: for donors and public support
What is an outcome measurement?
- The desired outcome of a program. Asks what are the numbers?
- Ex. 80 people served or 40% recovery rate. These are also used for benchmarks
What are 3 practical questions to ask BEFORE doing an evaluation?
- 1. Why are we doing an evaluation?
- 2. What are the desired outcomes of our programs?
- 3. Will it be an internal or external evaluation?
What are the 10 steps to take when doing an evaluation?
- 1. Decide what the purpose of the evaluation is. Just for benchmark? To attract Funders? To advertise success?
- 2. Need to decide what to evaluate.
- 3. Need to decide the audience. only BOD or is this for Funders, clients or volunteers?
- 4. Decide how the information will be collected. Ex. Research, surveys etc.
- 5. Resources: how much is it going to cost? Do we have the staff, skills and money to do it?
- 6. Decide what communication with stakeholders is necessary
- 7. Implement the plan (collate the information)
- 8. Report: make a report based on the information that gives suggestioms for improvement
- 9. Actions based on the report: decide what actions need to be implemented to improve
- 10. Review: have a follow up to see if you are achieving what your said you were going to do to improve the program.
What are the 6 ways of collecting information for an evaluation?
- 1. Research
- 2. Questionnaires: for clients or staff
- 3. Interviews: contact people to find out the success rates of the programs
- 4. Focus groups
- 5. Surveys: most common, cheap and easy to collate
- 6. Benchmarking: seeing what the numbers ar for other organizations and comparing
Name the 5 leadership skills necessary for a non profit and 3 traits for each
- 1. Decision making skills: (confidence intelligence and being open to other opinions)
- 2. Communication skills: (oratorical skills, consensus skills and persuasive)
- 3. Team building skills: consensus skills, good listening skills and liability)
- 4. Conflict management skills: (flexible, conciliatory and emotional maturity)
- 5. Change and crisis management skills: adaptive, resourceful and confidence - not being afraid to make changes)
Name 10 reasons why volunteering can be meaningful
- 1. Accomplishment / satisfaction
- 2. Helping others / doing good (altruism)
- 3. Gives a sense of community and comradery
- 4. Social aspect (can make friends)
- 5. Spiritual outreach and fulfillment
- 6. Work experience (to pad your resume)
- 7. Get training and learn new skills
- 8. Good networking opportunity
- 9. Could be a stepping stone to employment
- 10. Public recognition and gratitude
What are 2 great places to find volunteers?
- 1. Schools and universities
- 2. Religious groups
What is the largest demographic for volunteers?
Women from 45 - 70
Name 5 ways of recruiting volunteers
- 1. Identify groups of people who have an interest in the cause
- 2. Go to public events and religious services
- 3. Word of mouth (convince your friends)
- 4. Put ads on the paper and on radio if you can afford it
- 5. Post on volunteer Bureau and social websites
How do you make the best use of the volunteers you have? (6)
- 1. The job they do needs to have some relevance to the mission statement because they want to be tired into the mission of the organization
- 2. Create job descriptions so they are clear on tasks, time commitments and skills (having a clear role)
- 3. Matching the volunteers skill sets to their position
- 4. Need to have a clear chain of command and know who to call when they're sick
- 5. Need to have some sort of evaluation to make sure that they are good for the job and to keep them motivated
- 6. The should be a volunteer coordinator or manager
What are some risks of having volunteers and their solutions? (4 risks 6 solutions)
- 1. Theft: systems in place for dealing with money and criminal record
- 2. Negligence: volunteers that drive need to have appropriate licence and insurance
- 3. Conflict: could have volunteers with no anger management skills
- 4. Inappropriate acts: could have someone who discriminates, doesn't follow bc human rights code
- '''''''For both 3 and 4 reference checks and evaluations are important AND the organization should reserve the right to fire volunteers (written policy)
Name 5 ways of retaining volunteers
- 1. Hold a formal event to thank the volunteers
- 2. Expressos of thanks by phone call or in person
- 3. Newspaper ads
- 4. Give them a symbol of their volunteer work (a pin or a certificate)
- 5. Nominate them for a public/community award
What is an environmental scan?
Just before doing the SWOT analysis during a strategic planning session, an environmental scan should be done to discuss the issues that are external to the organization. Ex. What's the funding? What are the demographics? What are the job rates. It is a summary of all external factors affecting the society