1. CHALLENGES FOR NONPROFITS Presented by Tammy Craig, CFOOctober 2010

2. 7 Challenges

Money vs. Mission

Funding

Human Resources

Evaluation

Board Development

Information Management

Collaboration

3. Money vs. Mission

Melding of business and mission

Group decisions and opinions

Traps to avoid

• Money for mission vs. mission for money

• More time looking for funding and accounting for task performance

Fiduciary responsibility

No money, no mission

4. Funding

Responsive to changes

• Economic environment

• Political environment

Diversity of funding

Fundraising/donor fatigue/recruit-and-retain/enhance donor loyalty

Recapture of indirect costs

5. Human Resources

Attracting and retaining skilled staff

• Salaries

• Time to train and develop

• Different motive

Developing leadership and succession planning

Managing multiple functions and roles

6. Evaluation

Evaluating our worth and accessing human lives and conditions

Measurable proof and impact

Impact on communities and populations

Reporting outcomes vs. outputs

7. Board Development

Recruiting high impact board members

Recruiting highly skilled board members

No $ incentive to be on board

Busy successful people

8. Information Management

Efficiency

Reporting

Data collection/analysis

Communication

9. Collaboration

Integration of strategic partnerships

• Public policy

Conflict of interest

10. Financial Reporting

Revenue recognition

Budgeting revenue/cost

UBIT

Functional expenses

Accountability pressures

Grant reporting

• • Restricted funds/tracking net assets

11. Financial Analysis 12. Nonprofit recipe for success

Fill three pots with water.

Place each pot on a high fire.

Bring to a boil.

In the first pot, place carrots.

In the second pot, place an egg.

In the last pot, place coffee beans.

Boil for 15 minutes.

13.

The carrot went into the water hard and came out soft.

The egg went into the water soft and came out hard.

The coffee beans remained the same, but changed the water into coffee.

Nonprofit recipe for success 14. Nonprofit recipe for success 15.

Be the coffee bean.

Nonprofit recipe for success 16. Lets make coffee! 17. www.ParentsAsTeachers.org