On Nonprofits is a monthly Q & A column that has provided answers since 1995 to our readers’ questions on a wide range of topics of importance to those involved in the nonprofit sector.
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Inner Circle is Making All of the Decisions
Q: We have a situation where a small group of people from the executive committee are making all of the decisions. Most of us are okay with the
Beware Of Honoraria Made Out To You
Q: I read with interest your answer to the question, “Who Gets the Honorarium.” Fortunately, its recommendation that all honoraria
Becoming A Learning Organization – Part II
Last month I received the following question: Q: One of our directors proposed that the board become a learning organization. As she
Becoming A Learning Organization – Part I
Q: One of our directors proposed that the board become a learning organization. As she explained it, the board would commit to continuously
Time To Put More Energy Into Diversity And Inclusion – Part II
Last month I received the following question: Q: I recently attended the BoardSource Leadership Forum in Seattle. There was a big emphasis on
Time To Put More Energy Into Diversity And Inclusion – Part I
Q: I recently attended the BoardSource Leadership Forum in Seattle. There was a big emphasis on diversity and racial equity. Apparently, the
Synagogue Boards Are Boards With Typical Board Responsibilities
Q: Are synagogue boards held to same standards or requirements as those governing other nonprofits? For instance, are they responsible for
Organization Closing With A Bang
Q: I remain involved with a nonprofit that I helped organize about 25 years ago. Most of the members and board directors today are in their 70s
The Executive Committee In 2017
Q: Members of our board have attended workshops that suggest the trend is to eliminate executive committees. We would like to hear the reasoning
Term Limits An Issue For Board Chairs, Too
Q: Thank you for the insightful information on term limits for board directors. My question is whether board chairs should be term-limited.
The Perennial Question – Term Limits Yes Or No
Q: Our board is discussing a major rewrite of its bylaws. A major sticking point is the issue of term limits. There are two camps – both vocal.
Conveying Mandatory Meetings As Mandatory
Q: We have a board retreat coming up. Directors are told attendance is mandatory, but we’re a month out and we’ve already gotten several excuses
Your Hobby Can Supplement Your Donation If…
Q: I am driven to make jewelry. I want to sell the jewelry I make, and give every penny to various charities that I already support. My thinking
About That Bonus…
Q: Our board has identified a new CEO. The topic of a bonus came up in the initial stages of negotiation. The board is willing to consider a
Viewing The Crystal Ball – Potential Impacts Of The Election On Nonprofits
Q: It seems everyone I talk with in our sector is uncertain about the impact the election will have on our agencies and clients. Our
What You Say After “How Is Business”
Q: It’s almost the end of the year and our board committed to doing some end-of-year one-on-one solicitations, but nobody knows what to say
Board In The Middle Of A Vindictive Founder And A Whistle-Blower
Q: I serve on the board of a nonprofit serving at-risk youth, run by a charismatic former gang-banger who made good. The organization is well
By All Means…Pull In Governance Experts
Q: I am serving on a board that has chosen to focus on its governance over the next year. We have put together a governance task force. The idea
Pledge Reminders Sent By…
Q: We recently held our gala, at which a very successful appeal was made. While the majority of our guests paid their appeal donation by credit
Sales Tax Exemption Does Not Apply Out Of State, Unless…
Q: In an effortto attract a strong attendance at our annual conference, we decided to hold it in a destination city outside of the state in
While The CEO Is Away, The Staff Will Play
Q: I have served as the CEO of a small association for the last 10 years. During this time a number of factors, including the recession, changes
Consultant Says Cash, Organization Says Accrual
Q: I’m on the board of a small nonprofit. We have always used the accrual method of accounting for our finances. We recently were speaking with
Yes – Board Has A Say In Executive Compensation
Q: The board of our school was told that at next month’s meeting we will all have a chance to review both the executive director’s contract and
Hires Are Not Sticking Around
Q: Our organization lost its long-tenured executive director about two years ago. Since then we have hired several replacements. None of them
Go Ahead And Recognize Your Foundations
Q: For many years we have listed all the foundations that have made grants to us, by name, in our annual report. In addition, we have included
Policies For Board Manuals Today
Q: Last month a reader questioned the appropriateness of many of the policies in her organization’s board manual and stated that there were
Director Questions Policies In Board Manual
Q: I currently serve on the board of a Christian high school and I volunteered to work on the policy committee. Apparently, our board policy
Honoring A Deceased Legend
Q: The world and our organization recently lost a legend. This woman played an important role in our organization’s history. In life she was
Where Your Board Resides May Affect Funding
Q: Our organization is based in Florida, but only a few of our board directors call the state home. Others reside throughout the country and some
I Like The Strategic Agenda, But…
Q: This year I’m vice president of a small association board and we are looking to slim down our 3-hour meetings and get focused. I read
Better Meetings A Result Of Better Agendas
Q: I’m on an online discussion forum where there has been a long-running request for agenda formats that would make board meetings more
Former Colleagues Now Malicious Competitors
Q: We’re on the board of an organization that has been providing services in the community for many years. A couple years ago, one of our board
Organization Hiring A New ED Wants To Know What To Pay
Q: After 20 years of service, our executive director is retiring. We have put together a job description, but we are at a loss as to what to list
Count Donated Time
Q: We are a relatively young organization that trains persons with developmental disabilities to work in specialty food services. We make a small
Key Traits In A CEO For Building Board Partnerships
Q: I’m curious. If you were to list the most important traits of a CEO looking to build a partnership with the board, what would those be? And,
Board Or Advisory Council
Q: Our organization is a subsidiary of a larger voluntary health organization. The governance is handled at the national level, though we are
Go Ahead – Rent Your Extra Space
Q: A home school wants to rent a portion of our church. It’s a for-profit organization. We have the space and are considering the offer.
Now You See A Quorum – Now You Do Not
Q: My first board meeting with an organization opened with a quorum (51%). One person left before the meeting ended, with an item for decision
The Invasion Of The Hybrids
Q: I recently attended a seminar on the new corporate structures available to those who wish to do good, without going the nonprofit corporation
The Trouble With After Meetings In The Parking Lot
Q: I’m the development director at an organization with a dream board. The directors are all big-name, successful business leaders. I attend the
The Problem With Keeping Embezzlement Quiet
Q: Not too long ago our board discovered that our CEO was embezzling funds. There was a disagreement about how to handle it, so we hired a top
Who Pays For Networking Depends
Q: I am on the board of a nonprofit organization that is very close to my heart. Over the years I have joined a number of other organizations
Organization Changed Bylaws, Wants To Know If They Must Be Filed With IRS
Q: We recently changed our bylaws. We have since been told that we were supposed to submit a copy of the revised bylaws with our 990. Is that
Church Is Closing – Donor Wants Stained-Glass Window Back
Q: The church my parents helped build is closing. Early on they donated some stained-glass windows in memory of my grandparents. My grandparents’
But I WANT To Support This Project
Q: We have a number of different board committees, each with its own goals and activities. In many cases, the activities the committees want to
Yes, Your Organization Can Make A Donation To Another Organization
Q: We are involved in a 501(c)(3) organization. The question has come up about whether we can donate money to another 501(c)(3) organization?
Can This Bidder And We Be Made Whole
Q: Our organization recently sponsored an auction. Someone donated two tickets to an upcoming concert. The act was popular and the tickets
Is This Vote Valid – Smart
Q: Our board recently took a vote on refinancing our building. Refinancing would allow us to obtain a lower interest rate. We had seven board
To Pay Or Not To Pay – The Ethics Of Paying Commission On Sponsorships Part II
Last month I received and answered the following question from the perspective of the Association of Fundraising Professionals (AFP). I promised
To Pay Or Not To Pay – The Ethics Of Paying Commission On Sponsorships Part I
Q: We know that it is considered unethical to pay fundraisers on commission. However, one could argue that donations and sponsorships are two
Searching For The White Knight Revisited
Q: We are going to be hiring a consultant soon. We haven’t been super satisfied with our choices in the past. Do you have any suggestions for
Director Submits Huge Proposal – Organization Should Be Wary
Q: Help! I need your advice. We won a prestigious grant, but have the responsibility of matching it. Doing so will be a stretch for us. On our
CEO May Have Done Too Much
Q: I’m grieving and I don’t know if anything can be done. I founded an organization close to 20 years ago and gave my heart and soul to
Yes, Orientations Are For All Directors
Q: We hold an annual orientation in January, but every year it’s the same thing…. Board members argue about who should attend. Our philosophy
CEOs Sitting On Each Others Board Raise Ethical Concerns
Q: I’m from a small community. We have two organizations that compliment each other’s mission. The CEOs alternate service on each other’s
Those Services Are Not Tax Deductible
Q: You answered our question last month about training privately owned dogs as assistance dogs. To review, currently we train service dogs for
Yes. Charge For Those Services
Q: I am on the board of a nonprofit organization specializing in the placement of assistance dogs, matching them to people with multiple
A Primer On Elections, Politics And Charities
Q: Maybe it’s too late, since we’re coming down the home stretch of this election cycle, but can you remind us of what we can and can’t do as
Or Maybe It Is Time To Quit
Q: I was hired to write grants for an organization, but the leadership is being very secretive about basic information I need to include in the
Is Staff Now Responsible For Strategic Planning
Q: I have been involved with nonprofits for a long time and I am seeing a trend that befuddles me. Boards seem to be too busy to engage in
Think Hard Before Saying Yes To Spouse Of Director
Q: Can non-board members attend board meetings? Here’s our situation. We invited a man to join the board and were delighted when he said yes. He
One More Time…Should The ED Be Sitting On The Board
Q: I’ve heard lots of conflicting advice on whether the executive director can serve on the board. I’m looking for the definitive answer!
When The Board Goes Missing In Action
Q: We’re a relatively young organization with an important mission and a founder that is moving things along to the degree she can, virtually by
The Foundation As Sponsor
Q: We receive a significant amount of support from a private family foundation. Can the foundation be approached to sponsor special events such
Incoming Board Chair Serves On The Nominating Committee–Troublemaker Calls Foul
Q: Our nominating committee is getting ready to meet. The board chair-elect has always served on that committee. The reasoning is that the
Do It Yourself Strategic Planning
Q: Our organization is small. We have a budget of less than $100,000 and a board of only nine. We see the value of strategic planning and feel
Directors May Write A Reference For The CEO
Q: I am an executive director who has been in my position for awhile. Each December as the year draws to a close and the new year approaches, I
Directors Sitting On Both The Nonprofit And Foundation Boards A Conflict Or Good Practice
Q: I was recently reading an article about the CEO of the Heifer Foundation who claims he was terminated because he complained that it was a
A Local Board Is Taking Its Beef With The National Organization Public
Q: I’m on the board of the local unit of an established and respected national organization. Our executive director was recently let go by the
Opt Out Opt In Or Just Send
Q: Is “opt out” a requirement or a best practices kind of thing? We regularly solicit our satisfied clients for donations. But, I’m wondering if
Board’s Micromanagement Reflected In Training Requests
Q: I have some board members who tend to micromanage. I see it even when we discuss board training. They ask for training on subjects that I
Can This Board Member Be Saved
Q: About a year ago our board brought on a director that made a significant donation to the organization. It appears he intends to make a
The Board Needs To Get Out More
On Nonprofits May 2011 Q: I am involved with the United Way in my community and there is a recent focus on the board “looking outward.” A
A 501(C)6 Can Apply For Grants
Q: I am involved with a 501(c)6 organization. There is a question whether this organization is eligible for grants that are made available only
Transparency Does Not Extend To Personnel Records
Q: Some members of our organization have demanded to see personnel documents including but not limited to employment contracts, salaries and
Do We Need To Incorporate As A Business
On Nonprofits (c) February 2011 Q: A number of organizations, including several county Cooperative Extension Services, universities and
You Can Forego A Certified Auctioneer
Q: I work for a nonprofit in Ohio that is producing a fundraising event that will include a live auction. I was wondering if we are legally
Organization Is A Little Too Closely Held
Q: I’m a realtor that deals in foreclosed houses. I have applied for 501(c)3 status because I want to turn some of these houses into residences
It Is Possible To Create A Win-Win Relationship With A Competitor
Q: We know we are supposed to work with others in the community, but really, how can we create relationships that are win/win if these other
CEOs Arrest Should Be Noted In The Minutes
Q: Our CEO was recently arrested for a hit and run that resulted in some property damage. The situation made the newspapers. While the incident
Is Venture Truly Win-Win
Q: I am the chairman of an organization that has been presented an opportunity the board believes to be truly win/win. We would like to offer a
No Magic Formula For Computing The Size Of A Board
Q: I am one of three board members of a human services agency. A consultant told us that most boards should consist of at least 10 – 15
Salaries In 2010
Q: We are in the midst of budgeting and we are wondering what the average percentage increase is that employees are seeing in their salaries this
Development And Program Refuse To Play In The Same Sandbox
Q: In our organization the Program and Development Departments work in silos. What is disconcerting is that they have no desire to work together.
Should We Insure The Founder
Q: I’m on the board of an all volunteer organization. The founder plays the role of a full-time – albeit uncompensated – executive director.
Who Buys The Event Insurance
Q: Whenever we hold an event we purchase event insurance to protect our organization, “just in case” something goes wrong. My question is, if a
Back To School
Q: I would like to do a masters degree in nonprofit management online. I have over ten years of experience volunteering and working in this
Asking For Donations Be Sure You Are Properly Registered
Q: Can you address what nonprofits must and should do about registering in their own and other states when they solicit donations? I am employed
Secret Ballot Or A Show Of Hands
Q: We have an election coming up and a number of us would like to know the most common practice of nonprofit boards: To elect board members by
How Can I Get My Board To Evaluate Me
Q: Could you refer me to an appropriate form or format for executive director evaluation? I am the executive director. While the board says it
Its Not Our Event How Do We Calculate Fair Market Value
Q: You wrote an excellent article a few years ago in regards to determining the fair market value of events. Occasionally third parties will hold
Dos And Donts Of Choosing A Grant Writer
Q: We are looking for a grant writer. A few people on the board suggested different individuals they knew from other organizations, but they seem
Make The Founder A Permanent Board Member At Your Peril
Q: Our current executive director is the founder of our organization. While she has accomplished much over the years, the board feels it is time
Being Publicly-Funded How Much Must We Disclose
Q: I was re-reading something you wrote previously on confidentiality versus transparency in the boardroom. You peaked my curiosity. When an
I Want To Raffle My House For Charity
Q: I have prime property that is facing foreclosure and I need to sell it – fast. I just heard of a nonprofit organization that recently held a
Board Wants To Create A Separate Foundation
Q: Some members of our board are pushing to form a separate foundation. Their arguments include that such a move would ensure that more funds
Seller Beware When Selling Ads On A Website
Q: Our organization is considering selling ads on its website but we need to develop guidelines and pricing. Do you have any information or can
Tapping An Endowment During A Down Market
Q: Would you please address the use of endowments in times of crisis? I thought endowments were created specifically to provide organizations a
Responding To Request For A Loan
Q: I am involved with a local chapter of a national organization. We regularly send money to National in return for services. However, recently
Tax Implication For Fee Based Offerings
Q: With the economy being what it is, our organization is reconsidering the way we do business. One of the options we’re exploring is to charge
Reader Asks Can A Social Club Donate To Our Organization
Q: I am on the board of a nonprofit that has its 501(c)(3) status. There is a social club, designated as 501(c)(7), that would like to donate
Do We Need An Audit
Q: How often should a 501(c) 3 with a budget of less than $60,000 get an external audit? A: There is so much talk about accountability,
Replacing An Icon
Q: I’m being considered for a job that would be a healthy step up the career ladder for me. I’d be doing something similar to what I’m currently
Responding To The Economic Meltdown
Q: You are probably hearing from a lot of people right now about the economic meltdown. This couldn’t have happened at a worse time, right
A Policy Ensures Confidentiality In The Boardroom
Q: I know you’ve written previously about the need for both confidentiality and transparency in the boardroom (August
Defining Mission Vision Values
Q: Our board held a meeting the other night to discuss our mission, vision and values. There was a lot of debate as to what each of these really
Can Donors Expect Privacy
Q: We are hearing a lot about organizations issuing privacy statements. For instance, some nonprofits have a disclaimer on all correspondence
Diversity Diversity – Everyone Wants Diversity
Q: All we seem to hear nowadays is the need for diversity on the board. We do want diversity, but we haven’t done a very good job of it in
Planning For The Annual Fund Campaign
Q: We are going to hold our first ever Annual Fund Campaign. I know you know how scary that term “first ever” can be. I’m hoping you can share a
Public Pay For An Internal Tribute
Q: We had a long-time board member pass away and the family requested that donations be made to a scholarship fund in lieu of flowers. Is there
Renting Space To A For-Profit Company
Q: I have recently taken over as the director of a 501(c)(3) senior center. We would like to rent out part of our space to a for-profit adult day
Two Vying For Job In Organization Where Dad Chairs The Board
Q: I’m new to a board of a small nonprofit and I’m writing following our board meeting last night, at which a discomforting situation arose. The
Compensation In Lieu Of A Pension
Q: I have spent the bulk of my career committed to working as executive director of an organization that until recently operated on a shoestring
Smart Fund Raising Or Coercion?
Q: I work for an organization that is looking to expand its list of contributors during its annual holiday campaign. While I believe in the
How Well Did The Meeting Go
Q: I’ve been reading your articles and was wondering if you knew of a tool to give to a board to help them assess meeting and facilitator
Valuing Art At Auction
Q: Terrie, I always look to you as “the source” for answers. Do you know the latest IRS rule on determining the fair market value of donated
Dealing With A Traitor
Q: How do you deal with someone who, while acting as president of our organization, forms a similar organization to compete against us? Can
To Tithe Or Not To Tithe
Q: Can nonprofits tithe to another nonprofit from donations or contributions it has collected? If so, under what expense category should
Rules For A First Board
Q: Terrie, I need to pick your brain. Our fledging organization is forming its first board after 3 years of working without one. Four of us
Valuing In-Kind Gifts
Q: I have a doozie of a question for you. We are in the middle of applying for a grant. The Grant Administrator told us that it was important to
Founder On The Board Yearning To Be ED
Q: I am the founder of a new organization and I have a couple questions. I recruited six board members. The officers are the president,
Who Gets The Honorarium?
Q: We have a volunteer speakers’ bureau, where people go out into the community to speak on behalf of our organization. We’ve learned that in a
More On Committees
Q: Our bylaws state that the board appoints the committee. Does that mean that the board is responsible for establishing the entity – i.e., the
Do We Need All These Standing Committees?
Q: Last month you talked about what should go in the bylaws. Our question is around the benefit of so many standing committees. If we decide the
29 Must Have Items For Your Bylaws
Q: My board is working on bylaws revisions. I’ve been charged with looking into the “must haves.” What would be on your list?
Closing The Doors
Q: We are disbanding our organization. We are a 501c3. Is there anything special we must do prior to closing our doors? What about regarding the
What To Do With That Gotta Have Advisory Board
Q: We were wondering if you had a basic description of an advisory board? We have such a board, but there are some differences of opinion about
Who Can Ask
Q: Please clarify who can make the “ask” for organizations seeking funding. Perhaps it would be most helpful if you could explain the
It Is Possible To Create A Win-Win Relationship With A Competitor?
Q: We know we are supposed to work with others in the community, but really, how can we create relationships that are win/win if these other
Confidentiality Vs Transparency
Q: I have recently joined a board where the executive director frequently states that all board meetings, minutes and activities are to be
A Raffle And The Internet
Q: We’d like to increase ticket sales for our raffle. To do this we are thinking about promoting it on our website. It certainly would make
The Benefits Of Sponsorship
Q: I have a question about sponsorship. When people sponsor an event, what guidelines can we use to assess deductibility? For instance, it is
You Dont Eat Full Deduction Or Partial
Q: At a recent special event many donors sent in contributions to attend the event and did not show. I’m not sure how to handle the
Clarifying Endowments
Q: I have several questions related to endowments. If an organization establishes an endowment fund, can other donors contribute funds to build
The Public Has A Right To See Your 990
Q: We are currently reviewing how to better engineer and present our 990’s, as there have been many articles on how we should turn them
Serving A Dual Master Can Be Dangerous
Q: I need a definitive answer! Can a staff member serve on the board of the organization for which s/he works? A: The only “definitive” answer is
Defining Your Quorum
Q: We are redoing our bylaws and are stuck on the percentage we should use for defining our quorum. Is this regulated anywhere? If not, is there
Assessing The Board
Q: Where can I find an assessment form that the executive director can use to assess the board of directors? A: Before we talk about where to
Are There Strings To What We Give Away At Events?
Q: We hold a fun-run and charge a $25 registration fee (non-tax deductible) to enter the event. I have two questions. First, if a participant
Limit Recognition There Are Times
Q: I am doing the newsletter for our organization and we will be recognizing donors. We have identified a number of giving levels ranging from
Today I Am A Board President, Help Please?
Q: Do you happen to have any information specific to the board president’s duties, rights, and responsibilities? References would be equally
Foundation Boards The Rules Aren’t Really Different Here
Q: I just started working for a foundation after spending my career on the charity side. The board could use some basic information about its
Excluding The ED From Board Membership Decisions Is Good Practice Really
Q: Our board is making decisions about who should be asked to serve and who should be asked to resign without getting input from the executive
Contributed Services Not Deductible
On Nonprofits March 2005 Q:The managers of one of our centers asked me to clarify language on acknowledgment letters for donated pest control. We
What Counts What Doesn’t When Determining Fair Market Value
Q: How is the deductible portion of a ticket to a fund raising event determined? For instance, at a luncheon, is it merely the cost for the food
Fair Market Value Can Be Ambiguous At Auction Time
Q: Our organization recently held an auction. We were told that whatever someone was willing to pay for an item is the “fair market value” to
Should Husbands And Wives Serve Together?
Q: Would you please address the question of both husbands and wives serving on the same nonprofit board? A: An organization that asks both
Nonprofits Cannot Afford To Take Election Issues Casually
It’s bound to happen sooner or later… There is a candidate for office that comes out strongly for or against your organization’s goals. How
Board Director As Staff – Careful
Q: We were recently awarded a grant that required we hire a coordinator to administer the process. We have a board member with the skills and
Searching For The White Knight Consultant
Are you looking for a consultant to run a board retreat, facilitate your organization’s strategic plan, turn the staff into a cohesive team, or