June 7, 2010

 June 7, 2010 

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Nonprofit Salary Caps Sought By NJ

By Kate Rogers

In a controversial attempt to cut corners, New Jersey Gov. Chris Christie has proposed a cap on how much the state is willing to pay toward CEO salaries and employee benefits for nonprofit social service agencies with which the state contracts.

According to a draft of the Proposed Amendment to Third Party Contract Language, which was distributed to providers at a meeting with the state Division of Developmental Disabilities and obtained by The NonProfit Times, the state would cap reimbursements for the salaries of CEOs and executive directors of social services nonprofits at $141,000 for any agency with a budget more than $20 million. The cap for those with budgets of between $10 and $20 million would be $126,900. The cap for organizations with budgets between $5 and $10 million would be $119,850, and $105,750 for budgets less than $5 million. It was not immediately clear if that number is total compensation or base salary as reported on the federal Form 990.

The document was dated April 16, and the amendments would go into effect July 1.

Under the proposal, the state would prorate reimbursement for the CEO salary based upon the percentage of time the executive spent to execute elements of the contract, according to Nicole Brossoie, assistant commissioner of Public Affairs for the New Jersey Department of Human Services in Trenton, N.J.
Brossoie declined to be interviewed via telephone. She emailed responses to questions emailed to her. She examined some the calculations in the email exchange.

 


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Donors …
5 ways to find new constituents online

Is your neck stiff from staring too long at the same source of constituents? The cure is to stretch and strengthen your skills for finding new online destinations related to your cause.

According to Michael Cervino, vice president and co-founder of Beaconfire Consulting, such Web sites and communities can be great sources of new constituents if targeted with tailored marketing. Here are five ideas.

1. Look behind you. Your Web traffic statistics report what Web sites your visitors were on before they came to yours. Look beyond the top 10. The next 11-200 might be richer sources.

2. Look under. Dig deeper into those statistics. What keywords are used to find you? What other places do you find when you search those words?

3. Look left, then right. Use Google’s “linkto:” search and see who links to you. Then use this search on each of the resulting sites. Who is linking to these places that should be talking about and linking to you?

4. Look up. Search beyond your lexicon. There are conversations about what you care about that may be using a different set of terms. Get involved in those dialogues.

5. Look ahead. Schedule time every month to exercise your “looking” muscles.
And every so often, remember to reach around and pat yourself on the back for your progress.

 

 

 

Boards …
The inconvenient truth about members

Many nonprofit managers, beset with a mountain of issues even before they get to work, regard the board of directors as a necessary inconvenience. The truth, however, is that a dynamic board can do wonders for the mission of an organization.

Speaking at the Association for Healthcare Philanthropy 43rd Annual International Conference, Jason Chandler of the Gwinnett Medical Center Foundation, June Bradham of Corporate Development and Greg Pope of the St. Thomas Health Services Foundation highlighted the importance of a good board, as well as the necessity of a board working well with paid staff.

Some considerations include:

  • The relationship of foundation board work and institutional priorities should be transparent, believable and aligned.
  • Board members give to organizations where their personal satisfaction is high and their respect for and like of the CEO is significant.
  • The satisfaction of the board is the responsibility of the CEO.
    Further, they suggest that nonprofit managers take action steps by asking the following questions:
  • What is your relationship with the board?
  • Who is driving the case for support?
  • Are your board meetings coming early and staying late for meetings?
  • Do you watch for the gleam in the eye of potential board members? Are you looking in their eyes during recruitment?
  • Does each board meeting include meaty discussion? What about decision?
  • Is everything, really everything, open to the entire board?
 

Management …
3 organizational assumptions about volunteers

Someone with years of executive experience walks into a nonprofit, offering to volunteer for the good of the cause and of society. To most nonprofit managers, such a resource is pure gold: someone who can get results and is willing to offer that ability for free.

Susan J. Ellis, president of Energize, a Philadelphia-based training, publishing and consulting firm specializing in volunteerism, urges managers to remember that seeing the opportunity as literal gold can cause serious problems.

Ellis offers several assumptions that nonprofit organizations must be aware of when they are considering pro bono volunteers:

  • Employee volunteers will have access to cash and other resources of corporations. The expertise being offered must be valued intrinsically. Sometimes corporate volunteers will be able to request necessary supplies or in-kind services from a company, but only in support of successful volunteering.
  • That everyone in the organization welcomes the input of highly skilled volunteers. Tension between employees and volunteers remains a major concern in many organizations, often because neither was trained in how to work together. Very often, high-performing volunteers will be perceived as threats by paid staff.
  • That top executives do not have to be involved with pro bono volunteers. Many volunteers are viewed as just low-level help. Forcing a connection between the executive suite and the volunteer office might be unprecedented, but it has great potential for ongoing engagement of a whole range of donated talent.

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