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| Best Practices: Philanthropy |
Measuring Up
Matthew Schuerman
10/01/2005
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Leighty contends that volunteers can be
wonderful resources—if they are managed properly. “A lot of organizations
operate under the assumption that since volunteers don’t get paid anything, they
shouldn’t cost anything either,” she says. Not true: A nonprofit needs one
person on staff for whom coordinating volunteers is among the top three
responsibilities. Art museums and other organizations with many volunteers may
need a volunteer department.
Knowing the
approach a group
takes to a problem
will help you decide
if it matches your
philanthropic goals. |
7. Are You Using Tomorrow’s Revenues Today? This
is particularly endemic in arts organizations that may collect subscription
receipts one year for next year’s season. “Suppose something cataclysmic were to
happen and they were not able to put on a season,” warns Stockdale, the Donnelly
president. “What would their liability be to the patrons who bought those
tickets?” This practice could even be hiding a deficit that grows larger with
each year. Determining whether forward accounting is taking place may be
difficult; a large accounts receivable line in a balance statement should prompt
further questions.
8. How Many Funders Do You Have? No one wants to punish an
organization that has just a few donors. But a short funder list should be a
concern. “If a funder has a bad year and pulls back, you still want that
organization to survive,” says Michael Bailin, who retired in June as president
of the Edna McConnell Clark Foundation. Try to determine how serious the
nonprofit is about finding other means of support, or craft a challenge grant to
encourage it to do so.
Previous funders can also be rich sources of
information, and the organization should be happy to put you in touch with them.
John E. Larsen, the secretary of the John Larsen Foundation, which is named
after his grandfather, was considering giving to a gay and lesbian group in
Minneapolis, yet was concerned that it lacked a long-term plan. He talked with
an officer from another larger foundation that had worked with the group for
some time and who confirmed his fears. The Larsen Foundation ended up giving the
money, but less than was asked for, and it required the group to do some
planning for the future.
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