Nonprofit Management
Article | July 15, 2022
Unless you've been living under a rock, you're undoubtedly aware that cryptocurrency is now trending. That doesn't imply you understand everything about it and how it pertains to your non-profit. After all, that's why you're here. But chances are, your curiosity has been stirred.
There are several questions around cryptocurrencies, which we will address. But, before we get into the specifics, consider why it's important.
Why Your Non-profit Should Accept Cryptocurrency?
The rising popularity of bitcoin makes it an appealing payment option for charitable contributions. Because it is a digital money, it is simple to collect online donations. Accepting bitcoin is a reasonable next step after online donating has risen in recent years.
Furthermore, it looks that bitcoin users are a charitable lot. According to Fidelity Charitable, 45% of bitcoin owners will have contributed $1000 or more in 2020, compared to 33% of traditional investors.
Accepting cryptocurrency may appeal to younger contributors because it is popular among Millennials. One in every three Millennials owns cryptocurrencies, which is more than double the typical investor's rate. Millennials are notably kind and charitable, maybe because they entered adulthood during the Great Recession.
Risks and Considerations to Accepting Cryptocurrency:
While block chain and encryption make cryptocurrencies harder to hack or forge, this does not mean they are risk-free.
Most cryptocurrencies, for example, are stored in digital wallets that need a key and password to access the assets. However, hackers may attack digital wallets. In the worst-case scenario, owners may misplace the key and passwords required to access the funds. When bitcoin is lost, it is gone forever. It is anticipated that $4 million in Bitcoin may be lost.
On the dark web,cryptocurrency is also utilized for transactions. The anonymity of cryptocurrencies and the obscuring of transaction data appeals to individuals with less than noble intents.
Furthermore, the IRS considers cryptocurrencies to be property and taxes it accordingly. Depending on the circumstances, it may also be deemed capital gains.
Is Cryptocurrency Right for Your Non-profit?
While accepting cryptocurrencies for donations has advantages, such as attracting new contributors, it also has drawbacks. Whatever you pick, it appears that we are entering a wild new world of digital cash.
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Nonprofit Management
Article | July 28, 2022
Having worked in Hollywood for most of my career, it will come as no surprise to anyone that I champion the power of film for storytelling. However, as my life has headed down a different route, one of philanthropy and charity work, it has become increasingly apparent that the role of film in philanthropy is a crucial one and one that should never be underestimated.
Unless they see something with their own eyes, people can find it hard to translate what they read on a page into reality. This is where the power of film for philanthropy comes in. By showing people the facts of a situation, you bring that into their lives, and you pique their interest. You create a connection between the viewer and the charity so that connection can be built upon to gain more support. I had seen this connection first-hand recently when I helped make videos for the 'Children of War Foundation' that highlighted the stories of the refugee students at COWF's School of Dreams. At that point, I had numerous friends who contacted me, saying how they were moved by the content and how they immediately donated after seeing these stories.
Philanthropy depends on sharing our experiences, both good and bad, in order to share struggles and achievements. By filming on-the-ground in war zones, or gaining access to share footage of sensitive situations, we can reach people and make them aware of what is happening, and how they can help.
Using video footage, a charity or a campaign can amplify their message and support 1,000-fold. It has been proved that donations increase once a video appears on a website or on a social media platform showing the suffering it is trying to help. Having worked on a Facebook/Instagram show, I have learned the importance of content being "shareable" and the massive amount of impact and views content can have if it is.
Let me explain a little about why I have come to these conclusions and what drives me. Through film, I can address and contribute solutions to broader world issues; that is my purpose and ambition now. I know how to create films in a way that inspires people and drives them to action. Unfortunately, many non-profits don't know how to utilize storytelling through film, so if I see a way that I can use media to help their cause, I will offer my expertise free of charge, and urge philanthropists, in general, to investigate how they can use film to share their message.
One recent example is when I was invited just this past week at the Cannes Film Festival to watch and speak at a round-table discussion for multiple short-form videos made by the UN Refugee Agency (UNHCR), showcasing the various stories of refugees they have worked with. It was clear to me and others attending how important the messages of this content were, and it sparked a big discussion of how to further this kind of impact by sharing refugee stories in a way that is compelling and understandable to a wider audience.
Images Need to Have Impact
And now to the Children of War foundation (COWF), which has taught me so much about philanthropy and how charities work. I have traveled to regions from Jordan to Navajo Nation to document the foundation's work so that they can promote it on their website, in the media, and on their social media platforms. Most recently, I traveled for COWF to Ukraine to deliver medical supplies to two hospitals. Traveling through warzones with both active bombings and absolute destruction from past attacks, I saw things I never thought I would encounter. It was both the most rewarding and terrifying experience of my life, but it was essential. By making that journey and shooting footage of the realities of war, I am helping share the work and mission of COWF and in turn, that of so many charities risking lives to help the innocent civilians caught up in this and other atrocities around the world.
Having traveled to and filmed in refugee camps, most recently to Jordan with my daughters Sophia and Georgia last winter, I know first-hand the impact of war on children. But I have also seen how my films have brought about awareness and support from a greater audience for the charities I help, and this is where my commitment lies.
The images we see of the refugee crises around the world are not impactful enough. We need to show the harsher images so that the world grasps the severity of the situation and the everyday human toils, while also understanding that people are people, and making that connection to close the gap of the too well-shared idea of "us and them" when it should be just "us."
Clearly, women and children are often the most hard-hit in these wars, but unfortunately, they are also the most overlooked. Because of this, I am a strong proponent of showcasing their stories specifically but also pushing the idea of sustainable aid. The average refugee is displaced for 15-20 years, which is the entire childhood for kids who were displaced at a younger age, making it all the more important to ensure they have access to education and opportunities wherever they are. When sharing this information and pushing for sustainability, helps to educate a greater audience and break the cycles of giving short-term aid that often may not solve the real root issues.
Of late, I have frequently said that the Ukraine war is the first TikTok war - the first whereby imagery of those involved on-ground is shared as much as that filmed by mainstream media. This is good; it is getting the horrors of war out there for all to see directly. While this information is often brutally honest, by being subjected to these images, we are given the truth of the situation and often compelled to help.
Cinematography is prompting philanthropic action. I find it hard to take any positives from the current global situation. However, in such scenarios, ordinary people like you and I have often responded to the call to action and explored ways to help in the past.
So how do philanthropists and charities go about using film for good?
They need to know how to make content, whether as a short film, an Instagram video, etc., in a way that inspires people. Many non-profits don't know how to use storytelling, but if they can recruit those who do, it could be of great help. Especially if done with respect for the organization's work and wanting to share its story rather than sensationalize it.
If this can become a movement, we can see the real impact of film-making in philanthropy.
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Nonprofit Management
Article | July 14, 2022
Many organizations have found themselves in a “gotcha” moment. Business continuity plans are what nonprofits use to make sure operations are uninterrupted during unexpected circumstances. You knew that a business continuity plan was essential. Yet, you put it off because it didn’t seem urgent. Suddenly you are faced with a pandemic and you had to figure out how to operate when offices closed, people had to work from home, clients still needed services, and the board needed to make decisions. You aren’t alone. Many organizations face the same dilemma. How do you operate if there is a catastrophic situation that disrupts everything you do?
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Article | October 6, 2020
With more than 33 years working in, or for, the nonprofit sector, I've learned a lot of things about being an executive director or CEO of a nonprofit organization. I wish someone had been around to tell me beforehand what I should know, but unfortunately, like many E.D.'s I was originally thrust into the mix without a clue. So, for your benefit, here are the top 10 things I wish I knew before I joined a nonprofit board. Perhaps they will help you to serve better on the right board or to prevent you from serving on the wrong board for your specific background, talents and temperament.
1. The Board, Not the CEO, is Accountable
Board members need to understand that it is not the CEO but the Board that is in the box at the top of the organizational chart. Being in that top box means accountability for everything that happens in the organization. The buck doesn’t stop with the CEO but with the board.
I’ve seen this: For several years, an organization covered expenses by spending down every penny of a $1.5 million endowment. Every year, their board of high-powered business people approved a budget that actually planned for income from bequests, as if they could predict when their donors might die. When things finally came to a head, the board’s response was to ask the ED, “Well what are you going to do about this?” It never occurred to them that THEY had been accountable for the mess all along!
The board, corporately, is ultimately accountable when things go right, and when things go wrong, and it needs to know how to put that accountability into practice.
2. A Board Should Never Micromanage
Some boards see micromanagement as the road to accountability. Some see it as a detriment, but still can’t seem to stop. Either way, if your board is micromanaging, they are on the road to failure.
I’ve seen this: An organization had come through a time of financial hardship. They had eliminated their debt and were now operating from a position of fiscal strength. The board, however, was still in hardship mode, scrutinizing every purchase, no matter how small. They took 10 minutes at a board meeting to “investigate” why the staff went to one store vs. another, where they could have saved (I’m not kidding) $20 on a $200 item. The staff knew that every move they made would be second-guessed, and eventually they became immobilized. The board saw this as further proof of the need for scrutiny, and that cycle eventually crippled the organization.
Micromanagement is the opposite of accountability. True accountability is proactive and preventative, while micromanagement is reactive and fear-based.
3. My Involvement Will Not Fix a Dysfunctional Board
Sometimes our ego gets in the way, and we think that our involvement with a board will finally fix whatever problems the board has been having. From poor attendance to bickering and feuds, to the countless other issues boards face, my personality and skills alone will never solve these problems. It will simply bring one more person into the morass, to endure and potentially exacerbate those problems.
I’ve seen this: Board members in a rural area often drove for as much as an hour to get to board meetings, only to find there was no quorum. Frustrated, they instituted policies for removing board members who failed to attend meetings, only to lose those board members entirely. The reason? Aside from reviewing reports, the board did virtually nothing of significance for the organization. Once the board refocused its purpose (and then refocused its meetings!), attendance was almost always 100%. And new board members could be assured that board meetings wouldn’t waste their time.
4. My Time on the Board Does Not Equal Money
Every board should have a policy requiring board members to donate to the organization to the best of their means. This is NOT a fundraising issue. This is a living-by-example issue. If the board doesn’t believe the organization is worth investing in, why should a donor? How can we ask others to give generously when we haven’t done so ourselves?
I’ve seen this: Some of the board seats of an organization serving low income families are reserved for recipients of the service. As a condition of a large gift, a donor wanted to be assured the board had all donated as well. When the “client” board members were asked, “What amount could you give - even if it’s just 25¢?” they all gave. One client wept as she handed over a $1 bill. “This is an honor. No one has ever asked me to participate in this way before,” she said. However, some of the non-client board members became angry, saying they were never told they would have to donate their time AND their money.
With a giving policy in place, prospective board members will know what is expected of them BEFORE they join the board, and before a donor puts them on the spot by asking, “Has all your board given to the organization?”
5. The Board/CEO Relationship is Crucial for Success
If the board’s relationship with the ED isn’t great (or it stinks), or there are hard feelings between the board and staff overall, this will carry into every decision made by the organization. The Board/CEO relationship is like a marriage. It requires work! It also requires a great deal of trust and communication. Without these two ingredients, the organization is likely to ultimately fail.
I've seen this: An ED spent 20 years growing an organization to a nationally recognized and widely copied model for providing service. The board began attracting heavy-hitters, many of whom joined for the status of affiliating with this group, but who felt little passion for the mission. A rift was created between the board, who was mostly concerned about the organization’s finances (which were, by the way, in great shape), and the staff, who were mostly concerned about meeting the community need (for which they continued to maintain a stellar reputation). After a few years of this battle, the ED retired early. It has now been 2 years, and the board is still arguing over what they are looking for in a replacement ED.
Problems between the staff and the board are almost always symptoms of something larger - usually a lack of understanding / focus on the organization’s vision or its values system. It is important that a board with these kind of issues receive some kind of “marriage counseling.”
6. The CEO Should Not Be the Only One Recruiting Board Members
If the nonprofit CEO is the one doing most (or all) of your board recruitment, I probably don’t want to join the board. Look at the organizational chart. Do you really want your CEO hand-picking his/her boss?
I’ve seen this: A CEO did all the recruiting. She also determined what would be on the board’s agenda every month, and provided the board with the information she felt they should have. Not surprisingly, the board never did anything but rubber stamp what the CEO suggested. In this organization, the board really thought they worked for the CEO!
If the CEO is your board’s main recruiter, then your board likely has far more problems than you might suspect.
7. Planning and Implementing are Two Different Things: Both are Needed
An organization needs plans for how it will impact the community and plans for how it will ensure it has the capacity to create that impact. If the board has plans, but no clue about the status of those plans, that’s just as bad. An organization's plans are your answer to the big questions - Why are we here? What are we trying to accomplish for the community? If the board can’t answer those basic questions, then what exactly is the board doing?
I’ve seen this: An organization was required to have a strategic plan for accreditation. Every year they hired a consultant, created a plan, and did nothing to implement it. When they called to ask us to facilitate their next planning session, we told them we couldn’t do a plan unless we were assured the board would monitor its implementation. And they had no idea what we meant.
A board needs to understand that “ensuring that the organization is making the community a better place” is one of their primary areas of accountability.
8. The Bylaws Determine How (And If) the Board Works
Does the board have term limits, or can someone be on the board forever? Is it clear what types of actions could get someone thrown off the board, and what the process would be for removing them? Policies and procedures will guide board decisions and expectations.
I’ve seen this: A board president called for advice: One of his board members had embezzled from their small nonprofit, but the rest of the board wouldn’t vote to remove him from the board. After I picked myself off the floor, I asked if they had contacted the police or an attorney, as this was a legal issue first, and only then a policy issue. Yes, he said, he knew they needed an attorney, but right now he needed to convince the rest of the board to remove this guy. Without a policy, the rest of the board felt sorry for the embezzler and wouldn’t vote to remove him. So there he stayed, attending meetings and voting on organizational matters, months after the discovery had been made! As extreme as it appears to be, with no policies in place, the board was in a quandary about whether or not to remove their “friend.”
If you are thinking this couldn’t happen to your board, you might be surprised at some of the bad behavior I have witnessed from otherwise rational people - behavior that seems to only show itself when they find themselves on a nonprofit board. Without consistently applied board policies and procedures, it is more likely that your own odd sets of circumstances could knock your board (and your organization) for a loop.
9. Someone Has to Provide Me Training and Orientation
The board must have an orientation program, and new board members need more than their board manual and perhaps a tour of the facility. Without training, how will I know what is expected of me? And how will the organization be assured that I am capable of guiding the organization?
I’ve seen this: I once gave a long-standing board a quiz about their organization, with easy questions like “What is your annual budget?” and “Name three programs the organization provides” and “Name one staff person aside from the administrative staff, and tell what their position is.” They all failed. Many had been on the board for 20 years, and each and every one of them failed the quiz. How could they govern if they didn’t have such basic information? Often, I perform this same quiz about the organization's mission ("Tell me the mission statement of the organization") and 99% of the time, they also fail.
Board members must be well informed about the organization from the moment they are permitted to vote, because otherwise they won’t be able to do the job. At the very least, they should be able to recite the mission statement! The organization must also ensure that every single board member understands how to read the financials (not just those on the finance committee), so that every board member can be accountable for decisions that require financial understanding (like approving the budget, approving new staff positions, etc.).
10. Why Do You Want Me, Anyway?!
This will sound ridiculously simple, but it is critically important to know why the organization wants me-specifically- to serve on their board! What skills, talents, experiences do I bring to the table that complement the rest of the team? Being asked “Will you serve?” with an answer of “yes,” should not be enough for me to secure such an important position.
I’ve seen this: "Warm blood and a pulse." If only I had a nickel for every board who told me this is their recruitment criteria. If prodded, they might offer that they are seeking "business people" or "people with connections." On the other hand, when I ask what criteria and processes they have in place for recruiting their janitor, they rattle off a whole litany of qualifications and reference checks, etc. If our boards are accountable for everything our organizations do, shouldn't we have at least as good a process for "hiring" board members as we do for hiring the janitor?
A board must have a solid recruitment process that includes not only applications and interviews, but first and foremost knowing what they are looking for, and how I fit into that mix.
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