Blogs

Originally posted on new haven speaks:

Over the years, I’ve started many workshops for parents and child care providers with a simple brainstorm activity.  I ask, “What are your dreams for your children, or for the children in your child care?” I’ve completed this activity more than twenty times. Every time, the answers are the same: independence, love, safety, relationships.

This has been an important lesson for me. All people, no matter how diverse, have the same basic dreams for the young children in their lives.

But here in New Haven, many children don’t get the kind of start any of us would hope for.  More than a third of kids in our city live in poverty (37.3 percent, according to the 2008-2012 American Community Survey). Close to twenty percent of children in our county were “food insecure” in 2011—meaning that they lacked consistent access to adequate food.

Continue reading on new haven speaks.

This year is the 150th anniversary of what was once known as the Girls Club of America and is now called Girls Inc. The story of Girls Inc involved seven women, the founding board, who shared a passion and a commitment to get the job done. I pose that this is what governance is all about.

Here's the story from the Christian Science Monitor:

In 1864, with the Civil War in its fourth year and Union troops wearing Waterbury Button Company buttons on their uniforms, seven society women in Waterbury decided it was high time to help the young women in their midst. And so on Jan. 15 the founders inked their names in what is now a sepia-toned notebook.

The founders envisioned a school where young women would learn how to keep a home together with some basic education in writing, reading, and mathematics. Primarily it was akin to a finishing school for young working women, Maglio says.

That approach lasted into the 1950s. But as the sexual revolution and women’s rights movements arrived, and the organization realized it needed to shift its focus – and quickly. “We’re about having our girls feel confident with what success is – and it can be different things for different girls,” Maglio says.

Kudos to those who have keep the founders' dreams alive!

When the US Justice Department says to your nonprofit board: " the one-man staff of Philadelphia Safety Net, repeatedly gave himself raises without board approval." you know you must be doing something wrong.

But this is indeed what the Justice Department said to the Philadelphia-based Safety Net which was undergoing an audit from having received its funds through its Congressman's earmark. Turns out that the organization, staffed by one individual who was a former staff member to the Congressman received an annual salary of $364K. The audit concluded saying that it found that "62 percent of Safety Net's spending of federal funds was unallowable, unsupported, or unreasonable". In addition, the executive was cited as having "used some of the public funds for his own expenses", the audit said. It said he did not repay Safety Net for $2,218 in personal spending in 2009, including paying off $393 in parking tickets, a $286 hotel room, and cash withdrawals totaling $1,149. The audit also said Jones used $1,171 in state funds in 2008 to pay for clothing and restaurant bills."

However, from an outcomes perspective, the organization appears to have had an impact taking more than 3500 guns off the street (the program was all about buying back guns).

So, failed board? I would offer there was barely any board, at least providing oversight. But how much does it matter if goals were met?

To review the article, take a look here.

The case of a New York City minister, his wife and the executive director have agreed to pay-back loans with interest and penalties they borrowed from their church and two related nonprofits. I am scratching my head a bit over the "must pay back clause" because the Wall Street Journal doesn't really indicate there was any intention not to pay back their loan (which they used to buy a house and property. Some of the loan was also used to buy a car (yes, a BMW). Alas, additional monies were used to purchase trips for the couple to visit their sons in college.

So, we have here a few issues. According to the Attorney General, it is state law that directors and officers may not be the beneficiary of a nonprofit's loans. I will admit that this was new to me. Over the years I have known of a number of instances where boards have indeed made financial loans to their execs particularly for a house to live-in.

This particular case came to the forefront of the news because these loans were viewed externally as diverting nonprofit money away from their intended purpose. But the couple did actually conduct related transactions that were less than legally or even morally acceptable and indeed, action should be taken, I think, beyond just getting the money with penalties paid.

And indeed, this is likely the reason boards should be cautious about lending. That there were legal prohibitions agains these transactions was news to me so I poked around the web and found that such transactions are not actually prohibited in every state in the US. And, when their are sanctions, their are circumstances. The lesson: boards should seek legal counsel should the subject arise and their is not already a board-developed policy in place recognizing that federal and state laws always trump a nonprofit's laws when there is a difference between the two.

But, to wrap this story up, the Journal article also notes that: Three former members of the Glad Tidings' board agreed to pay $50,000 in penalties for neglecting their oversight duties. Whoa -- gotta hand it to the AG who took all of this very seriously. And nonprofit boards everywhere should do the same. Ignorance is not blissful.

Good Day To All,

Usually I like to write about the various persons connected within the cemetery and the walk-about with those persons. But for this note today, I would like to discuss the Walk for Autism which took place in Wallingford two weeks ago.

Needless, to say, it was a wonderful time to give to a great cause. My team was the "Marissa Monsters". Marissa is the daughter of Lisa and George Carranzo, the owners of Grand Apizza (New Haven's Best Kept Secret) located at 111 Grand Avenue, New Haven, 203.624.7646.

The walk is hosted at Rosemary-Choate School and then from this point of central position we walked through the historic part of the city of Wallingford. There was a Dixie Jazz Band and other amusements - like walking on bubblewrap, etc. The day was awesome with the best weather ever and the people were just as great.

So I encourage anyone to commit to this occasion once a year - it is for such a great cause. This past year the group raised around $2500.00 to develop a cure.

If interested call Lisa or George at 203.624.7646 and they will assist in any questions, or concerns you may have with the Walk.

Cheers to All,

Patricia Illingworth

Chief Docent

Grove Street Cemetery

I recently observed a nonprofit's board members panicking over the organization's total annual deficit of $23,000. Members seriously questioned the exec's abilities.

The organization's annual budget: $8 million. The deficit, less than 1% of the annual budget.

Many of the board members have grown old with their organization with some having been members for 25 years, since the founding of the organization (that's likely not the best scenario). The nonprofit started as most do with only a bit of money: $25,000. Imagine if at the end of the first year, the deficit had been $23,000. Panic would have been conceivably in place and possibly justifiably so.

One of the realities I would observe of nonprofit board members is that many view a nonprofit's finances in the way they view their own personal finances. Many do not have a lot of experience managing a business or a nonprofit and so their only world view when it comes to money is themselves. The consequence: what appears alot on a personal basis is very small on a business basis.

The panic that was set forth from this news, in my opinion, is to be expected. A loss is a loss whether it's mine or the nonprofit's. But the response to the loss -- this is clearly something that can be managed more effectively.

First, given that the majority of board members do not know what to expect or expect as reasonable when it comes to corporate finances, the Governance Committee would do well to a) learn the level of experience when interviewing prospective board members and b) be sure to include in the orientation and on-going training, what corporate finances are like and how they cannot be assessed at the same level as personal finances, perhaps using comparisons with other organizations. In step (b), adjusting personal culture and awareness is essential.

Next, the Exec and the Treasurer should be sure to always keep members abreast of financial challenges and changes. When something "bad" is coming, it is better to be prepared than surprised.

Finally, it's possible and likely that the characteristics and skills/knowledge of individuals who serve as board members in an earlier stage nonprofit are not the best skills/knowledge and characteristics of those who are best for a more mature, large nonprofit. A so-called, corporate-focused or experienced indiivdual may be much more suited for providing fiduciary oversight of a big-budget nonprofit because their skills and knowledge are better matched. These members will still panic but at a significantly different level than the individual with no corporate experience.

Should the characteristics change as the organization grows? I would suggest: yes. The early stage manager is different than a mature stage manger. I would pose that the same is true for the board.