Category: Finance

Bragging about program-to-admin ratios is a destructive practice that needs to die 

Posted on by Vu
raccoon-1612593_1280
[Image description: A black and white photo of a raccoon standing behind a chain-link fence. The raccoon has one paw raised near its face resting on the fence, and its other paw lower, also resting on the fence. This is a cute but kind of sad-looking raccoon. This image may be evocative of restricted funding in the nonprofit sector]
Hi everyone. Just a quick reminder that my org is hiring a capacity building coach to work with our partner organizations. We are getting lots of amazing candidates, but we are keeping the position open until we find that magical unicorn to join the team. 

Thank you to those of you who supported the Kickstarter project I’m involved with, where I’m helping to write a book. Thanks to you, the project got fully funded within a few days! Sweet! (You can still donate if you missed out, because there are cool prizes).

Meanwhile, if you’re looking for awesome holiday gifts for the nonprofit people in your life, NWB merchandise is available. 

***

I know that many of us have sent out our year-end appeal letter, or are in the process of doing so. Some of us are pouring our blood, sweat, and tears into these letters, sometimes literally, with the paper cuts and the occasional weeping over the hundreds or thousands of letters that need to be stuffed. 

You know what makes me weep, though? Y’all who still use language in your letters like “94 cents of every dollar goes directly to programs!!!” Every time I see it or hear about it, it is like getting a barbed-wire-wrapped baseball bat directly to the noggin. Continue reading “Bragging about program-to-admin ratios is a destructive practice that needs to die “

Why the new overtime rules are good for nonprofits and thus for our community

Posted on by Vu

chihuahua-820085_960_720If you work in nonprofit in the US, you have heard that new federal overtime laws/rules are coming. They affect how we categorize the professionals in our sector—“Exempt” or “Non-Exempt”—and how we pay them, whether through set salaries or through hourly wages that include overtime for hours worked over 40. If reading that sentence makes you want to hyperventilate into a paper bag for a few minutes, you’re not alone. Many people are freaking out about these new laws and how to comply with them, because they take effect this coming December!

By the way, since this post may be long and kind of dry, I’m going to insert more pictures of baby animals than normal to motivate you to keep reading. The baby animals have nothing to do with the content of this post.

The Basics

Basically, to be considered Exempt starting in December, an employee must now be paid $47,476, which is double the current level of $23,660. If an employee is paid less than $47,476, they cannot be considered Exempt and must be paid overtime for any extra hours worked.  

Since I am not an expert on this subject, I checked in with colleagues and organizations who are better versed and will be quoting them heavily. I highly recommend you spend some time on this page, Adjusting to New Overtime Rules, by 501 Commons. It has work duties tests, a workbook to help you calculate whether to pay overtime or increase someone’s salary, a free recorded webinar training hosted by a compensation expert, a list of other resources, and FAQs. Continue reading “Why the new overtime rules are good for nonprofits and thus for our community”

The myth of double-dipping, and the destructiveness of restricted funding

Posted on by Vu

salsa-840249_960_720I’ve written before about double-dipping being one of the worst accusations you can leverage against a nonprofit. It makes for an effective insult: “Your ED is so dumb, he went on eHarmony hoping to meet a logic model.” “Oh yeah? Well your org is so unethical, it reported that one funder paid for some food for a community gathering, but then also told another funder that they paid for the same food!” (#nonprofitinsults, in case you’re bored and want to start a new trend on Twitter)

I don’t want to keep harping on this subject, but it deserves to be harped on from time to time. Last week, I had a meeting with my team to talk about our finances. Specifically, we are spinning off into our own 501c3, and some of our funders want information on how the money they gave us has been spent before we transition. For the next hour, we dove into it, and I want to capture the gist of the conversation here, mainly because I think it will make an excellent scene when I begin working on “Nonprofit: The Musical” in earnest. Continue reading “The myth of double-dipping, and the destructiveness of restricted funding”

10 classic movies that could have been about nonprofit work

Posted on by Vu


humphrey-bogart-619157_960_720Despite the awesomeness and complexity of our work, and the fact that we employ 10% of the work force, and the fact that independent studies that I have commissioned found that we have the most attractive professionals among all the sectors, nonprofit is still neglected by the media and society at large. I’ve written about the need for more TV shows about our sector. And now, we need to push for more movies. Imagine how much more awesome some of our classic movies would have been, if they had been about nonprofit. Here are some of my ideas, along with potential quotes. #nonprofitmovielines. Go make that trend on Twitter, like you did with #nonprofitpickuplines.

A Few Good Donors: An up-and-coming Development Director tries to convince her ED to change their org’s fundraising strategies, in the process encountering resistance and a complex conspiracy involving budgets, CRMs, the board, and strategic planning. “You want answers? You want the truth?! An effective donor cultivation strategy takes time and resources!”

The Shawshank Restriction: Andy, a new Program Director learns too late that the organization that just hired him had gotten trapped by a burdensome and restrictive multi-year federal grant. The terrifying realities of restricted funding are explored as Andy works to save the remainder of his program and his sanity, using his skills and intelligence to gain the trust of his jaded colleagues and extract the program and organization out of the dilemma. “Get busy doing work, or get busy doing paperwork.” Continue reading “10 classic movies that could have been about nonprofit work”

Funders, thank you for doing these 12 awesome things

Posted on by Vu

Hi everyone, after talking to an ED of color who was on the verge of quitting the field after a horrible and demoralizing experience with a small grant that left her almost in tears, I started writing a post called “Funders, you are still very good looking, but your grant application process may be perpetuating inequity.” (It’s a working title).

That post will be published next Monday. I am trying to have a more balanced approach this year of not just pointing out weaknesses in our sector, but also highlighting awesome stuff that is going right. So while next week’s post will be critical of ineffective funding practices that disproportionately affect marginalized communities, this week’s post—written with help from the NWB Facebook community—will focus on examples of helpful things funders are doing.

Foundations, thank you for doing these things below. Or if you don’t do them, please start. We really appreciate it, because these things, as simple as some of them are, make it easier for us all to make the world better. Continue reading “Funders, thank you for doing these 12 awesome things”