Funder Relations

Trust-based grantmaking: What it is, and why it’s critical to our sector

Posted on October 24, 2016 by Vu

The Walking Dead is back on TV. After last season’s finale, and this season’s opener, I am not sure I will continue watching. But zombies do make me think of funding dynamics, so that’s why I am bringing it up. In The Walking Dead, the zombies are scary, but they are the least dangerous. Zombies eat brains; they don’t have brains; they don’t have hidden motives and plans; you know exactly what a zombie will do. It’s the humans who are terrifying. Pushed into survival mode, they calculate, lie, betray, and refuse to use the Oxford Comma (#OxfordCommaForever). No one trusts anyone, and it’s more often than not that groups of humans end up killing one another before a zombie actually gets to munch on anyone’s flesh.

What does this have to do with funding dynamics? Well, there seems to be a pervasive lack of starting with trust between funders and nonprofits, and it’s affecting all of us and our abilities to survive and do our work. The default starting relationship between funders and nonprofits is one of suspicion of the latter by the former, which leads to funders enacting policies and practices designed to make nonprofits more “accountable,” such as restricted funding, individualized applications, bespoke budget forms, customized reports, and other things that drive us nonprofits nuts. This in turns leads to nonprofits’ hiding of information, especially about challenges, from funders, which in turn reinforces the suspicion. All this perpetuates a depressing cycle of waste of time and energy and lots of complaining, usually at bars, and all that could have been used to deliver programs and services.
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Some positive feedback and appreciation for funders

Posted on August 22, 2016 by Vu

A few months ago, our grantwriter and I dealt with a grant for $4,000 that comprised a five-page narrative and about 10 attachments. Luckily, of course, we have most of those documents ready in our Master Grant folder. The kicker, though, was the unusual requirement for us to print out a document with ten labels, each corresponding to one of the attachments, and literally cut out each of the tabs and paste it on to the attachments. So there I was, handling a glue stick for the first time in years, carefully pasting each tab. I was getting more and more irritated, gritting my teeth and wishing I had listened to that one palm reader in Saigon who told me to go into medicine or maybe law (I think my parents paid her).

I was gluing and fuming and writing a bitter, ranting blog post in my head. But then I realized that I tend to focus on all the irritating things some funders do, that I sometimes neglect all the great things that many funders do. Yeah, there are a lot of sucky, inequitable funding practices. But for the most part, there are lots of great things foundations are doing, and there many amazing program officers who make our work easier. It’s been a while since we provided our funding partners with some positive feedback and encouragement (see “Funders, thanks for doing these 12 awesome things.”) This post is to bring some balance by highlighting some specific things, big and small, funders do that we nonprofits really appreciate. Thanks to the NWB Facebook community, as well as my colleagues in Seattle, for providing input, which I’m quoting below.Continue reading →

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

Posted on August 1, 2016 by Vu

If 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 →

We need to stop treating nonprofits the way society treats poor people

Posted on July 18, 2016 by Vu

During a drink with one of my favorite program officers, I brought up some feedback about how onerous their grant reporting process was. Even though the foundation is really flexible on how the funds can be used, they still ask for exactly how much of each line item the foundation pays for. And their line items don’t line up with ours, so we have to spend significant time translating our budget into theirs. And once the report is submitted, it affects what we report to other foundations, leading to a funding Sudoku that wastes endless hours of my and my team’s time.

Her response, half-joking and half-serious, was “When you entered the sector, what were you expecting, cake and ice cream?” At that moment, all I wanted to do was weep quietly into my raspberry mojito while Foreigner songs play in my head: “In my liiiiife, there’s been heartache and pain. I don’t knooow, if I can faaaaaaace it again…”Continue reading →

25 things awesome board members do

Posted on June 13, 2016 by Vu

Hi everyone. A colleague asked me to write about what board members can do to be helpful to staff. Nonprofit board members are critical to the success of organizations. We rely on y’all for so many important things and are deeply grateful for all the time, skills, connections, and resources you give, especially considering that the majority of board members are volunteers.

However, boards are also the direct cause of 39% of brain aneurysms in the sector, according to statistics that I made up. So I asked the NWB Facebook community to help develop a list of what awesome board members do. This is not a list of board roles and responsibilities, which you can google, or find at BoardSource, but actual, down-to-earth, sometimes seemingly minor stuff. One colleague writes this of one of her board members:

“When your fundraiser is on the same night as an ice storm, he personally salts the sidewalks and parking lot. Then when all the salt runs out he goes to the gas station down the road and buys more salt to finish the job. He also demands car keys from me and coworker at the end of the night to defrost and scrape our car windows. And somehow in the midst of all that he also pays several hundreds of dollars on an auction item and poses for tons of pictures with the kids. #oneofthebest“Continue reading →