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FAQ - Nonprofit Organizations

Two places are very thorough in their coverage of the most frequently asked questions about leading a nonprofit or voluntary association. They cover current information on issues related to leadership, management, organizational development, legal, finding and using resources, and the development of nonprofits and voluntary association. Start with the Internet Nonprofit Center. We suggest you start here to see if your question is answered.

BoardSource, (formerly, The National Center for Nonprofit Boards), FAQ site deals with board structure, board governance, board development, board responsibilities, board meetings, financial issues, fundraising, and legal liability issues.

Q: What nonprofit-related resources and opportunities are available through the federal government?

See the Nonprofit Gateway home page.

Q: What are the current average salaries of nonprofit staff in South Carolina?

The Bureau of Labor Statistics provides tables on wages by occupation for the state. Both hourly rates and salaried levels are included. However, in general nonprofit leaders are earning below what they are able to command in private business settings. We suggest that you pay your leaders a decent wage irrespective of what other organizations in the area pay. You are apt to keep your employees longer and productivity normally is higher. In addition you are apt to recruit more qualified personnel.

Q: What is the size and budget of nonprofit organizations that are similar to ours?

GuideStar is one of the better resources to consult. They post all 990 IRS forms of nonprofits that register with them. This site is also very good to get current information about how to use your financial statements as a public relations and marketing tool to show you are accountable.

Q: Everyone is into accountability discussions right now. What do they mean? How can our organization be seen as accountable?

One of the better sites on financial and legal accountability is Nonprofit Cyberspace.

One of the better sites that will help you understand program accountability is the Harvard Family Research Project. Their online publications on program accountability are very good.

Q: We are starting a new nonprofit organization. Can you tell me what we need to know to get going? Do you have any guides to follow?

Most fob the essentials are available online. The Internet Nonprofit Center covers all essentials in developing and managing a nonprofit organization. In our opinion it provides useful information on all phases of startup and the changing issues of daily operation.

Another widely used resource is How to Form a Nonprofit Corporation in All 50 States published by Nolo Law for All Center. They also have a very good FAQ section on starting a nonprofit. You can purchase this online through Amazon.com. Another very useful resource is the Nonprofit Kit by Stan Hutton and Frances Phillip. Consider acquiring Fiscal Sponsorship: Six Ways to Do it Right from the Study Center Press.

Using existing organizations as a base for testing the waters before starting a new organization is considered the better way to go in starting a new nonprofit. Fiscal Sponsorship will help you explore wisely the possibility. All of these resources can be purchased through amazon.com.

BoardSource, (formerly, The National Center for Nonprofit Boards), has a checklist that can be used to guide discussion and planning.

The Free Management Library also has a list of very important questions that need to be answered realistically. Most recommend that a business plan be created because it will cause leaders to consider all the requirements of managing an organization. See Don Griesmann's article (in PDF format) on starting a nonprofit. His article tells you what needs to be in a business plan.

Q: What is a 990? If we are a nonprofit do we have to have one?

Form 990 is an Internal Revenue Service information return that must be filed every year by many nonprofits. Nearly all the information in the form is available to the public. Nonprofits are encouraged to post their Form 990 on their web site as evidence of accountability. GuideStar publishes most of the filed 990's. The Independent Sector, the National Center for Charitable Statistics and the Association of Fundraising Professionals are working together on a project to improve the quality of reporting and of the form. The Form 990 may become a major document consulted by funding organizations to check out who you are. If you earn less than $25,000 you aren't required to file this form, but we strongly urge you to do so since it does demonstrate you are willing to be held accountable to the public for the use of the funds people give you.

Q: I have heard that many nonprofits in South Carolina are not compliant. What does that mean and how do I make sure our organization is compliant with state and federal rules of the road for nonprofits?

The SC Department of Revenue has a complete set of helps online for you to consult. All update notices are there. Your board's finances committee should consult this site frequently to make sure the organization is compliant with changes in federal and state law as they occur. A review of the annual reporting requirements for nonprofit organizations is also online. Other useful publications and resources are identified. In addition they also offer workshops throughout the state for your financial officers to attend.

Q: We have to start evaluating services. We don't know how to do evaluations or what is involved. Can you suggest resources we can consult? They need to be user friendly.

Funders recently are more serious about looking for evidence of success, outcomes and impacts of programs. In order to show evidence of effectiveness, nonprofits and voluntary associations must build evaluation efforts into daily operations. If you are new to evaluation, we suggest you consult the tools for program and comprehensive community initiative evaluation that are available for the Community Toolbox. Their site will also point you to additional resources that are available. The User-friendly Handbook for Mixed Method Evaluations and Empowerment Evaluations page are for people with intermediate understanding of evaluation. The American Evaluation Association is a primary forum for those who wish to learn on the job and from the nation's best. The Community Toolbox will direct you to self-help software that is available online. You can also access an interesting virtual learning forum on empowerment evaluation through them. In addition to the Community Toolbox, The Program Evaluation Kit is a highly used evaluation package. What started out to be just one self-guided booklet to design and conduct an evaluation has now become a series of tools. The topics covered include how to design an evaluation that meets your needs; how to analyze data; how to assess program implementation; how to communicate evaluation findings; how to design an evaluation; how to focus an evaluation; how to measure attitudes; how to measure performance and use tests; how to use qualitative methods. It is one of the most used kits currently available. It can be purchased from Sage Publications. The title is Program Evaluation Kit by Joan Herman. A new publication is available from the Independent Sector entitled Outcome Measurement in Nonprofit Organizations.

Q: I am the president of a nonprofit board. I want our board to become familiar with the key resources and associations that help nonprofits lead and manage effectively. Who should we pay attention to?

The Independent Sector is a leading coalition of nonprofits, foundations, and corporations. BoardSource, (formerly, The National Center for Nonprofit Boards) and The Foundation Center would be on our short list.

Q: We need grants in order to do our work, to meet capital development and technology development needs. Where do we go to find what's available?

Developing a sound financial base for your organization should be a priority concern of the Director and board members. The financial base of the organization needs to be diverse in order to weather the ups and downs of gifts and grants. When you do your business plan you will have to think about all the different ways you plan to access financial resources so that you are sustainable. Getting grants is just one of several paths to financial stability.

The following sites are some of the better ones:

Catalog for Federal and Domestic Assistance
Chronicle of Philanthropy
Foundation Center
The Grantsmanship Center
Grantsnet
GuideStar
Hoover's Online
National Association of Fundraising Professionals
Philanthropy News Network

Q: I need to learn how to write a proposal. What goes in a proposal? How do I go about approaching foundations and granting agencies?

There are many sites that have online how-to booklets on grant writing. The one we recommend the most is produced by the Grantsmanship Center. It is entitled Program Planning and Proposal Writing. It is very inexpensive. In addition, they offer highly recognized grant writing workshops. We suggest you consider attending one, if you have to write grants on a regular basis.

Q: Where can I go to get an understanding of the various IRS forms our organization needs to file and why?

The National Center for Charitable Statistics provides an easy to understand overview of what forms to file and also provides the forms online. Also consult the SC Department of Revenue's online resources.