Board Cafe • By Jan Masaoka • June 18, 2010
At some point you may resign from a nonprofit board before your term is up. You might be angry, disappointed, or just too busy. Don't botch your resignation: do it right.
Most often as board members we stick out our term limits and leave the board feeling good about what we''ve contributed. But there are also times when you resign before your term is up. Maybe you've missed a lot of meetings or maybe you're moving to another city. Maybe you're uneasy with the direction the organization is taking, or maybe you feel that as a board member you are treated like a "mushroom": kept in the dark and fed manure (!).
Regardless of your reason, you can just walk away quietly, or make a weak excuse, or you can use the moment to give meaning to your resignation, both to you and to the board.
Following are some ways to make significance out of your resignation: Read more here.
Friday, June 25, 2010
Thursday, June 17, 2010
NY comes up last in volunteerism
The Albany Business Review reported that New Yorkers are not very beneficent when it comes to giving their time. Not at all.
In fact, the Empire State ranks 51st out of 50 states and Washington D.C. when it comes to volunteering, according to the annual Volunteering in America report.
Nationally, however, about 1.6 million more volunteers served in 2009 than in 2008, making this the largest single-year increase in the number of volunteers since 2003, when data was first collected for the study. The report is produced by the Corporation for National and Community Service, a government-sponsored nonprofit. Higher unemployment rates also increase volunteerism.
Nationwide, a total of 63.4 million volunteers contributed 8.1 billion hours of service in 2009, an estimated dollar value $169 billion. Overall, the volunteering rate increased in 2009 to 26.8 percent, up from 26.4 percent in 2008.
Volunteering data used in the annual report is gathered through the Current Population Survey, conducted monthly by the U.S. Census Bureau for the Bureau of Labor Statistics. Volunteers are defined as individuals ages 16 and over who perform unpaid activities for or through an organization.
The study showed that 2.9 million, or 19 percent, of New York residents volunteered in 2007-2009, compared with the national average of 26.8 percent. The Capital Region fared better, but still placed in the lower half of the rankings. It ranked 44th out of the 75 mid-sized cities that were studied for the report, with 27.1 percent, or 200,000, of its residents volunteering.
Compared with other mid-sized cities in New York, the Capital Region placed behind Binghamton, ranked 30th, and Poughkeepsie, ranked 41st, and ahead of 71st-ranked Syracuse. Nationally, Provo, Utah, ranked first among mid-sized cities and El Paso, Texas, was last. Utah was the top state for volunteerism.
Volunteers in New York contributed 405.5 million hours, or $8.5 billion worth in service from 2007-2009.
Read more: New York dead-last in volunteerism - The Business Review (Albany)
In fact, the Empire State ranks 51st out of 50 states and Washington D.C. when it comes to volunteering, according to the annual Volunteering in America report.
Nationally, however, about 1.6 million more volunteers served in 2009 than in 2008, making this the largest single-year increase in the number of volunteers since 2003, when data was first collected for the study. The report is produced by the Corporation for National and Community Service, a government-sponsored nonprofit. Higher unemployment rates also increase volunteerism.
Nationwide, a total of 63.4 million volunteers contributed 8.1 billion hours of service in 2009, an estimated dollar value $169 billion. Overall, the volunteering rate increased in 2009 to 26.8 percent, up from 26.4 percent in 2008.
Volunteering data used in the annual report is gathered through the Current Population Survey, conducted monthly by the U.S. Census Bureau for the Bureau of Labor Statistics. Volunteers are defined as individuals ages 16 and over who perform unpaid activities for or through an organization.
The study showed that 2.9 million, or 19 percent, of New York residents volunteered in 2007-2009, compared with the national average of 26.8 percent. The Capital Region fared better, but still placed in the lower half of the rankings. It ranked 44th out of the 75 mid-sized cities that were studied for the report, with 27.1 percent, or 200,000, of its residents volunteering.
Compared with other mid-sized cities in New York, the Capital Region placed behind Binghamton, ranked 30th, and Poughkeepsie, ranked 41st, and ahead of 71st-ranked Syracuse. Nationally, Provo, Utah, ranked first among mid-sized cities and El Paso, Texas, was last. Utah was the top state for volunteerism.
Volunteers in New York contributed 405.5 million hours, or $8.5 billion worth in service from 2007-2009.
Read more: New York dead-last in volunteerism - The Business Review (Albany)
Tuesday, June 15, 2010
United Way now one in Niagara
Buffalo Business First reported that two United Way agencies in Niagara County have completed a consolidation, creating a $1.6 million agency that will serve over 80,000 county residents.
The United Way of Greater Niagara brings together the United Way of Niagara and the Eastern Niagara United Way, which together support 75 different human service programs run by 21 service providers.
Carol Houwaart-Diez, executive director of the new group, says together the agencies will be able to cut costs for business services like insurance rates and rental property, with the savings going back into program allocations to benefit county residents.
As the agency completes the second phase of a needs assessment process, the services funded by the agency may also change, she says.
“Now we’re trying to find out the gaps in the community. Once we find that out, we will determine if there will be significant changes,” she says.
With headquarters in Niagara Falls on Military Road, the agency will shut down its full time Lockview Plaza site this month and open a part-time community service office in Lockport’s Bewley Building. The new organization has seven employees and a 20-member board of directors.
Companies in the region will have one Day of Caring event, one meeting for agency CEOs and one funding process – saving them time and effort.
Initially, the consolidation plan that began four years ago called for bringing together all three United Way agencies in Niagara County, but talks with the United Way of the Tonawandas fell through after members voted it down on two separate occasions.
Read more: United Way now one in Niagara - Business First of Buffalo
The United Way of Greater Niagara brings together the United Way of Niagara and the Eastern Niagara United Way, which together support 75 different human service programs run by 21 service providers.
Carol Houwaart-Diez, executive director of the new group, says together the agencies will be able to cut costs for business services like insurance rates and rental property, with the savings going back into program allocations to benefit county residents.
As the agency completes the second phase of a needs assessment process, the services funded by the agency may also change, she says.
“Now we’re trying to find out the gaps in the community. Once we find that out, we will determine if there will be significant changes,” she says.
With headquarters in Niagara Falls on Military Road, the agency will shut down its full time Lockview Plaza site this month and open a part-time community service office in Lockport’s Bewley Building. The new organization has seven employees and a 20-member board of directors.
Companies in the region will have one Day of Caring event, one meeting for agency CEOs and one funding process – saving them time and effort.
Initially, the consolidation plan that began four years ago called for bringing together all three United Way agencies in Niagara County, but talks with the United Way of the Tonawandas fell through after members voted it down on two separate occasions.
Read more: United Way now one in Niagara - Business First of Buffalo
Wednesday, June 9, 2010
NYS has authority to review and approve health insurance rates
The Central NY Business Journal reported that the New York State Insurance Department again has the authority to review and approve health-insurance premium increases before they take effect.
Gov. David Paterson signed the bill allowing the reinstatement of the power today.
Since 2000, New York had regulated health-insurance premiums under a "file and use" law that "significantly" limited the state's ability to disapprove premium increases and allowed the insurance industry to regulate itself, the governor's office said in a news release.
The new law requires health insurers and health-maintenance organizations (HMOs) to make an application to the Insurance Department to implement premium increases.
The department would review the rate-increase applications, as well as the underlying calculations, to ensure that the rates are justified and not excessive, the governor's office said.
The law would apply to all rate increases taking effect on or after Oct. 1, 2010.
In addition, the legislation will immediately require health insurers and HMOs to spend more of every premium dollar they collect on medical claims.
In particular, the law raises the "medical-loss ratio," or the percentage of premium spent to provide medical care, from 75 percent to 82 percent for small businesses and from 80 percent to 82 percent for individuals.
In a statement released Tuesday night, the New York State Conference of BlueCross BlueShield Plans expressed "complete disappointment" over what it calls "government-imposed price controls." Read more here.
Gov. David Paterson signed the bill allowing the reinstatement of the power today.
Since 2000, New York had regulated health-insurance premiums under a "file and use" law that "significantly" limited the state's ability to disapprove premium increases and allowed the insurance industry to regulate itself, the governor's office said in a news release.
The new law requires health insurers and health-maintenance organizations (HMOs) to make an application to the Insurance Department to implement premium increases.
The department would review the rate-increase applications, as well as the underlying calculations, to ensure that the rates are justified and not excessive, the governor's office said.
The law would apply to all rate increases taking effect on or after Oct. 1, 2010.
In addition, the legislation will immediately require health insurers and HMOs to spend more of every premium dollar they collect on medical claims.
In particular, the law raises the "medical-loss ratio," or the percentage of premium spent to provide medical care, from 75 percent to 82 percent for small businesses and from 80 percent to 82 percent for individuals.
In a statement released Tuesday night, the New York State Conference of BlueCross BlueShield Plans expressed "complete disappointment" over what it calls "government-imposed price controls." Read more here.
Thursday, June 3, 2010
Forum Features Discussion with NYS Comptroller and Strategic Alliances and Partnerships
The blog, Done by People, by Joe Brown, Principal and Founder of Slope Resources, LLC, offered the following recap of the "A Conversation with NYS Comptroller Thomas P. Di Napoli and Panel Discussion on Strategic Alliances & Partnerships."
On Monday, I had the opportunity to attend a highly informative and engaging forum which brought together government and nonprofit representatives to discuss the topic of strategic alliances and partnerships among nonprofit organizations. While the discussion focused on New York State’s nonprofit sector, the challenges, considerations, and ideas discussed are applicable to organizations nationwide. In the absence of a video or audio recording of the session, I wanted to share this detailed recap and my impressions of the session.
The event was sponsored by the Community Foundation for the Greater Capital Region and the New York Council of Nonprofits (NYCON) and held at the headquarters of New York State United Teachers (very nice digs, by the way) in Latham, New York, a few miles northeast of Albany.
Karen Bilowith, President and CEO of the Community Foundation for the Greater Capital Region, presided over the session. The approximately 75 attendees included representatives of various nonprofits, including arts, cultural, health, and human services organizations, as well as a number of funders and consultants (including yours truly). Following Ms. Bilowith’s welcoming comments, New York Secretary of State Lorraine Cortés-Vázquez provided brief opening remarks. Ms. Cortés-Vázquez assured the attendees that “most in government” recognize the importance of the nonprofit sector and rules and regulations pertaining to the sector should not be so onerous as to provide disincentives for staff, board members, and volunteers to participate.
I’m from the government, and…
Ms. Cortés-Vázquez then introduced the session’s keynote speaker, New York State Comptroller Thomas P. DiNapoli. The Office of the State Comptroller has responsibility for the review, approval, and payment of the state’s contracts with nonprofit organizations. Mr. DiNapoli noted the importance of the nonprofit sector to the state and its economy, citing 2006 statistics that the state’s approximately 24,000 nonprofits reported revenue of $133 billion and employed nearly 1.2 million people, or 17% of the state’s workforce. He quantified the state’s contractual bonds with the sector as consisting of nearly 31,000 active contracts totaling $14.6 billion, as of June 2009. Read more here.
The balance of the session was devoted to presentations and discussion by a panel consisting of:
■Doug Sauer, who has served as Chief Executive Officer of New York Council of Nonprofits (NYCON) since 1980. NYCON’s membership represents approximately 1,600 charitable nonprofit organizations across New York State.
■Cristine Cioffi, who is a partner in the law firm of Cioffi • Slezak • Wildgrube P.C., but spoke primarily in her role as Chair of the Board of Trustees of Ellis Medicine, an organization which resulted from the recent merger of three nonprofit hospitals in Schenectady County.
■David W. Palmquist, who as Manager of the New York State Museum’s Chartering Program, oversees the chartering of museums, historical societies, and similar cultural organizations with educational purposes across the state.
The panelists responded to questions posed by Ms. Bilowith, as well as several questions from audience members.
Doug Sauer
While all three of the panelists presented interesting perspectives on the potential of various collaborative models for nonprofit organizations, I was particularly impressed by Mr. Sauer’s insight and candor on a number of fronts. Early in his presentation, he discussed the recent proliferation of nonprofits, describing the creation of thousands of new organizations each year, many of which are not active, and the resultant saturated environment. (I was reminded of a recent article in the Chronicle of Philanthropy, which noted that the number of nonprofit organizations nationwide has increased by 90% to 1.2 million since 1996). Read more here.
On Monday, I had the opportunity to attend a highly informative and engaging forum which brought together government and nonprofit representatives to discuss the topic of strategic alliances and partnerships among nonprofit organizations. While the discussion focused on New York State’s nonprofit sector, the challenges, considerations, and ideas discussed are applicable to organizations nationwide. In the absence of a video or audio recording of the session, I wanted to share this detailed recap and my impressions of the session.
The event was sponsored by the Community Foundation for the Greater Capital Region and the New York Council of Nonprofits (NYCON) and held at the headquarters of New York State United Teachers (very nice digs, by the way) in Latham, New York, a few miles northeast of Albany.
Karen Bilowith, President and CEO of the Community Foundation for the Greater Capital Region, presided over the session. The approximately 75 attendees included representatives of various nonprofits, including arts, cultural, health, and human services organizations, as well as a number of funders and consultants (including yours truly). Following Ms. Bilowith’s welcoming comments, New York Secretary of State Lorraine Cortés-Vázquez provided brief opening remarks. Ms. Cortés-Vázquez assured the attendees that “most in government” recognize the importance of the nonprofit sector and rules and regulations pertaining to the sector should not be so onerous as to provide disincentives for staff, board members, and volunteers to participate.
I’m from the government, and…
Ms. Cortés-Vázquez then introduced the session’s keynote speaker, New York State Comptroller Thomas P. DiNapoli. The Office of the State Comptroller has responsibility for the review, approval, and payment of the state’s contracts with nonprofit organizations. Mr. DiNapoli noted the importance of the nonprofit sector to the state and its economy, citing 2006 statistics that the state’s approximately 24,000 nonprofits reported revenue of $133 billion and employed nearly 1.2 million people, or 17% of the state’s workforce. He quantified the state’s contractual bonds with the sector as consisting of nearly 31,000 active contracts totaling $14.6 billion, as of June 2009. Read more here.
The balance of the session was devoted to presentations and discussion by a panel consisting of:
■Doug Sauer, who has served as Chief Executive Officer of New York Council of Nonprofits (NYCON) since 1980. NYCON’s membership represents approximately 1,600 charitable nonprofit organizations across New York State.
■Cristine Cioffi, who is a partner in the law firm of Cioffi • Slezak • Wildgrube P.C., but spoke primarily in her role as Chair of the Board of Trustees of Ellis Medicine, an organization which resulted from the recent merger of three nonprofit hospitals in Schenectady County.
■David W. Palmquist, who as Manager of the New York State Museum’s Chartering Program, oversees the chartering of museums, historical societies, and similar cultural organizations with educational purposes across the state.
The panelists responded to questions posed by Ms. Bilowith, as well as several questions from audience members.
Doug Sauer
While all three of the panelists presented interesting perspectives on the potential of various collaborative models for nonprofit organizations, I was particularly impressed by Mr. Sauer’s insight and candor on a number of fronts. Early in his presentation, he discussed the recent proliferation of nonprofits, describing the creation of thousands of new organizations each year, many of which are not active, and the resultant saturated environment. (I was reminded of a recent article in the Chronicle of Philanthropy, which noted that the number of nonprofit organizations nationwide has increased by 90% to 1.2 million since 1996). Read more here.
Monday, May 24, 2010
Foundations offer loans as a way to help nonprofits
The Buffalo News reported that a $650,000 check in 2008 from the Community Health Foundation of Western and Central New York for a new program to assist the frail elderly in Cattaraugus County came with a caveat: Trustees of the foundation wanted the money back, with interest.
A single grant of that size was beyond the capacity of the foundation, so trustees decided instead to make it a loan.
The money allowed Community Care of Western New York to launch a program that will keep more than 200 rural elderly people safely in their homes. Without it, the project probably would have stalled.
"It would not have opened without us, and what is a really promising model for elder care in a rural community would have been lost," said Ann Monroe, foundation president.
Increasingly, foundations in Western New York and across the country are turning to loans, loan guarantees and other measures as a way to aid needy nonprofit organizations without giving away the store.
The John R. Oishei Foundation, the area's largest private foundation, currently has more than $12 million — nearly 4 percent of its $280 million asset base — being used in this fashion. And at least two other local foundations, the Margaret L. Wendt Foundation and the Joy Family Foundation, have experimented with alternative financing.
Known as "program-related investments," or more popularly "PRIs," the loans and loan guarantees are serving a dual purpose for foundations hammered by stock market losses in 2008.
PRIs, like grants, put money toward projects that might not otherwise get off the ground. Read more here.
A single grant of that size was beyond the capacity of the foundation, so trustees decided instead to make it a loan.
The money allowed Community Care of Western New York to launch a program that will keep more than 200 rural elderly people safely in their homes. Without it, the project probably would have stalled.
"It would not have opened without us, and what is a really promising model for elder care in a rural community would have been lost," said Ann Monroe, foundation president.
Increasingly, foundations in Western New York and across the country are turning to loans, loan guarantees and other measures as a way to aid needy nonprofit organizations without giving away the store.
The John R. Oishei Foundation, the area's largest private foundation, currently has more than $12 million — nearly 4 percent of its $280 million asset base — being used in this fashion. And at least two other local foundations, the Margaret L. Wendt Foundation and the Joy Family Foundation, have experimented with alternative financing.
Known as "program-related investments," or more popularly "PRIs," the loans and loan guarantees are serving a dual purpose for foundations hammered by stock market losses in 2008.
PRIs, like grants, put money toward projects that might not otherwise get off the ground. Read more here.
Thursday, May 13, 2010
NON-PROFITS MUST EXPLORE RESTRUCTURING AND OTHER FORMS OF COST-EFFECTIVE COLLABORATION
Gerald Archibald, from The Bonadio Group, offered the following viewpoint:
“I don’t think you ever stop giving. I really don’t. I think it’s an on-going process. And it’s not just about being able to write a check. It’s being able to touch somebody’s life.” Oprah Winfrey
When you are asked to contribute to this year’s United Way Campaign, please dig deep and be as generous as possible with your pledge. After 35 years as a volunteer and contributor to our United Way, I continue to believe that the United Way Campaign provides the life blood for continuation of critical programs and services to those who are less fortunate in our community.
In last month’s column, (“There’s a lot of room to operate between autonomy and takeover,” April 1), I referenced a question posed to me by a board member who asked whether her non-profit agency should merge with another.
Coincidentally, the week that article ran, I had an opportunity to hear United Way’s President Peter Carpino make the case to me, and other members of an Executive Committee on which I serve, why non-profits need to do business differently.
United Way takes this subject very seriously… so seriously, in fact, that its Board has made a five-year commitment to a “Non-profit Sustainability Initiative.” United Way also has assembled a 12-member consortium with representatives from organizations that are interested in and committed to this issue as well.
The consortium’s membership is impressive and includes the Simon School, RIT’s Simone Center for Innovation and Entrepreneurship, SUNY Brockport, the Council of Agency Executives, the New York Council of Non-Profits, the Rochester Business Alliance, The Community Foundation, the Greater Rochester Health Foundation, the Greater Rochester Quality Council, the Center for Governmental Research, and Grantmakers Forum of New York.
There’s no question in my mind that United Way is the right organization to assume leadership on this issue and that the time is right for them to do so.
Consider this:
New York State is facing a projected $27.5 billion deficit over the next three years;
Rochester’s United Way has raised $7.5 million less in the past four years, including $3.5 million less last year alone;
Given the impact that last year’s market downturn had on foundations’ endowments, grant making was reduced significantly.
The concept of sustainability is not new to United Way. Over the past 15 years, through its Synergy Fund, United Way has invested nearly $1 million to support increased efficiencies among not-for-profits through organizational re-engineerings ranging from co-locations to mergers. Recent successes include the Ibero-PRYD merger and AIDS Rochester-AIDS Community Health Center merger (now called AIDS Care).
Carpino noted that, given current economic realities, conditions are ripe for non-profits to explore restructuring and other forms of cost-effective collaboration more intentionally and to assess what is the right level of competition (given that too much competition can lead to service duplication).
And, he said, public and private funders no longer have the capacity (or, in some cases, the willingness) to support all the programs they’ve supported in the past. Therefore, non-profits should seek out and take advantage of opportunities to sharpen their focus or modify their priorities in light of changing community priorities. Read more here.
“I don’t think you ever stop giving. I really don’t. I think it’s an on-going process. And it’s not just about being able to write a check. It’s being able to touch somebody’s life.” Oprah Winfrey
When you are asked to contribute to this year’s United Way Campaign, please dig deep and be as generous as possible with your pledge. After 35 years as a volunteer and contributor to our United Way, I continue to believe that the United Way Campaign provides the life blood for continuation of critical programs and services to those who are less fortunate in our community.
In last month’s column, (“There’s a lot of room to operate between autonomy and takeover,” April 1), I referenced a question posed to me by a board member who asked whether her non-profit agency should merge with another.
Coincidentally, the week that article ran, I had an opportunity to hear United Way’s President Peter Carpino make the case to me, and other members of an Executive Committee on which I serve, why non-profits need to do business differently.
United Way takes this subject very seriously… so seriously, in fact, that its Board has made a five-year commitment to a “Non-profit Sustainability Initiative.” United Way also has assembled a 12-member consortium with representatives from organizations that are interested in and committed to this issue as well.
The consortium’s membership is impressive and includes the Simon School, RIT’s Simone Center for Innovation and Entrepreneurship, SUNY Brockport, the Council of Agency Executives, the New York Council of Non-Profits, the Rochester Business Alliance, The Community Foundation, the Greater Rochester Health Foundation, the Greater Rochester Quality Council, the Center for Governmental Research, and Grantmakers Forum of New York.
There’s no question in my mind that United Way is the right organization to assume leadership on this issue and that the time is right for them to do so.
Consider this:
New York State is facing a projected $27.5 billion deficit over the next three years;
Rochester’s United Way has raised $7.5 million less in the past four years, including $3.5 million less last year alone;
Given the impact that last year’s market downturn had on foundations’ endowments, grant making was reduced significantly.
The concept of sustainability is not new to United Way. Over the past 15 years, through its Synergy Fund, United Way has invested nearly $1 million to support increased efficiencies among not-for-profits through organizational re-engineerings ranging from co-locations to mergers. Recent successes include the Ibero-PRYD merger and AIDS Rochester-AIDS Community Health Center merger (now called AIDS Care).
Carpino noted that, given current economic realities, conditions are ripe for non-profits to explore restructuring and other forms of cost-effective collaboration more intentionally and to assess what is the right level of competition (given that too much competition can lead to service duplication).
And, he said, public and private funders no longer have the capacity (or, in some cases, the willingness) to support all the programs they’ve supported in the past. Therefore, non-profits should seek out and take advantage of opportunities to sharpen their focus or modify their priorities in light of changing community priorities. Read more here.
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