Skills to Pay Skills to Pay the Bills? September 23, 2015 - - PowerPoint PPT Presentation

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Skills to Pay Skills to Pay the Bills? September 23, 2015 - - PowerPoint PPT Presentation

Oct 18, 2023 48 likes •305 views

Can Nonprofits Learn the Skills to Pay Skills to Pay the Bills? September 23, 2015 Presenters: Polly Singh, Program Officer , The Wallace Foundation Hilda Polanco, Founder and CEO, FMA Karen Walker, Senior Research Fellow , Child

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Can Nonprofits Learn the

Skills to Pay Skills to Pay the Bills?

September 23, 2015

Presenters:

  • Polly Singh, Program Officer, The Wallace Foundation
  • Hilda Polanco, Founder and CEO, FMA
  • Karen Walker, Senior Research Fellow, Child Trends
  • John Summers Director FMA
  • John Summers, Director, FMA
  • Kate Dewey, President, The Forbes Fund

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Pioneering Cities in Afterschool Coordination

Providence Boston New York City Chicago Philadelphia

  • St. Paul

New York City Chicago Washington, D.C. Denver Louisville Baltimore Grand Rapids Nashville Fort Worth Jacksonville

  • Launched 2003-06
  • Launched 2012
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Adm inistrative Managem ent g Capacity in Out-

  • f-School-Tim e

Organizations (2008) ( )

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For more on strategic financial management, see strongnonprofits.org

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Study Findings Study Findings

  • Government compliance, a time and effort challenge
  • Program budgeting and monitoring – not given

i t tt ti appropriate attention

  • Organizations operate on a thin margin of cash

O i i i h f ll f kill d

  • Organizations experience a shortfall of skilled

finance staff Fi i l t t f ll tili d

  • Financial systems – not fully utilized

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For more on strategic financial management, see strongnonprofits.org

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Building Strong Building Strong Nonprofits Through Better Through Better Financial Managem ent Managem ent (2012)

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For more on strategic financial management, see strongnonprofits.org

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StrongNonprofits.org

Free online tools, templates templates, and resources

6

Can Nonprofits Learn the Skills to Pay the Bills? – StrongNonprofits.org May 28, 2015

6 www.strongnonprofits.org

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Cohort-Based Capacity Building Cohort-Based Capacity Building in Financial Managem ent

Hilda Polanco, CPA Founder and CEO

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hpolanco@fmaonline.net

For more on strategic financial management, see strongnonprofits.org

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Customized Model

14 organizations, 4 years

Group Learning Model

11 organizations, 2 years

7.0 million median budget 2.8 million median budget 50% serving only young people 50% serving only young people 86% with public funding 80% with public funding

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For more on strategic financial management, see strongnonprofits.org

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d l

Customized Model

14 organizations, 4 years

Group Learning Model 11 organizations, 2 years

Fiscal infrastructure review

Leadership team participation (ED, Finance, Development, Program Director) Organizational self –assessment & financial h l h l i

Workplan development Targeted implementation

health analysis Workplan development

g p support Peer‐learning sessions for CEOs and CFOs

8 full‐day workshops 1‐on‐1 coaching hours

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and CFOs

g

For more on strategic financial management, see strongnonprofits.org

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Creates opportunity for:

  • Engaging a team rather than an individual
  • Peer learning exchanges and community building
  • Self assessment against best practices

g p

  • Experimentation and testing of new ideas

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For more on strategic financial management, see strongnonprofits.org

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GO GOVERNANCE VERNANCE M

People

NNING NING MONIT ONITO

Pe People & & Te Teams Pr Process

  • cess

Te Technolog

OPERA OPERATIONS IONS PLA PLAN ORING RING

Technology chnology Pr Process

  • cess

g y Technology chnology

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For more on strategic financial management, see strongnonprofits.org

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StrongNonprofits.org

Free online tools, templates templates, and resources

12

Can Nonprofits Learn the Skills to Pay the Bills? – StrongNonprofits.org May 28, 2015

12 www.strongnonprofits.org

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The Skills to Pay The Bills The Skills to Pay The Bills

An Evaluation of an Effort to Help Nonprofits Manage An Evaluation of an Effort to Help Nonprofits Manage their Finances

Karen Walker Ph D Child Trends Karen Walker, Ph.D., Child Trends September 23, 2015

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Overall Findings

  • Both models led to long‐term

improvement in financial capabilities

  • Changes relying on policies or

software systems persisted more software systems persisted more readily than those relying on relationships

  • CEOs’ motivation and leadership

predicted improvements

  • Improved financial practices
  • Improved financial practices

strengthened program planning

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The Skills to Pay the Bills: An Evaluation of an Effort to help Nonprofits Manage their Finances – StrongNonprofits.org Karen Walker

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Overall Findings (cont.)

  • Improved financial practices helped the organizations better survive

the Great Recession

  • The group learning model appeared to be cost effective but took
  • The group learning model appeared to be cost effective, but took

longer

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The Skills to Pay the Bills: An Evaluation of an Effort to help Nonprofits Manage their Finances – StrongNonprofits.org Karen Walker

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Evaluation Overview: The Methods

  • Late 2009 to 2014
  • Surveys of organizations

Surveys of organizations

  • CEOs and CFOs
  • 5 waves: baseline, Month 9, Month 18, Month 26 (just after the

(j intensive period with FMA), Month 36 and Month 48

  • Interviews with staff members
  • Document reviews

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The Skills to Pay the Bills: An Evaluation of an Effort to help Nonprofits Manage their Finances – StrongNonprofits.org Karen Walker

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Change from Baseline to 48 Months in Financial Practices in Financial Practices

4.0 **** 3.0

  • int scale)

*** *** ** * *** 2.0 n Ratings (on a 9 po 1.0 Changes in 0.0 Usefulness of software Strength of financial staff's skills Clarity of financial reports Strength of the program staff's financial skills Customized Group Learning

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The Skills to Pay the Bills: An Evaluation of an Effort to help Nonprofits Manage their Finances – StrongNonprofits.org Karen Walker

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Perceived Benefits of Changes

More useful software

Efficiencies and better financial reports

Better reporting

More team decision

p g

making

More team

B tt

More team decision making

Better budgeting

Better budgeting

Improved relationships with funders, better planning

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The Skills to Pay the Bills: An Evaluation of an Effort to help Nonprofits Manage their Finances – StrongNonprofits.org Karen Walker

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Model Type Affected the Tim ing of Change and Staff Hours Spent Change and Staff Hours Spent

Customized Group Learning Wh t 26 th 36 th When were outcomes achieved? 26 months 36 months How many hours did

  • rganizations spend to achieve

800 1000

  • rganizations spend to achieve
  • utcomes?

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The Skills to Pay the Bills: An Evaluation of an Effort to help Nonprofits Manage their Finances – StrongNonprofits.org Karen Walker

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Median Total Expenditures on SFM Per Organization Per Organization

Cost Customized Learning Group Learning Median cost of professional development provided to grantee organizations ($) 131,000 32,000 Median costs incurred by grantee 111,000 72,000 y g

  • rganizations ($)

, , Median Total Cost ($) 242,000 104,000

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The Skills to Pay the Bills: An Evaluation of an Effort to help Nonprofits Manage their Finances – StrongNonprofits.org Karen Walker

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Im plications for Non-Profits p and their Funders

  • Efforts to improve nonprofit financial management can lead to long‐lasting

improvements

  • Group learning can be cost‐effective
  • Stronger financial management practices can:
  • Protect nonprofit organizations from economic disruptions
  • Lead to important time and labor‐saving efficiencies
  • Lead to important time and labor saving efficiencies
  • Help program staff better plan current and future activities
  • Improve organizational communications and decision‐making

I i i ’ l i hi i h f d

  • Improve organizations’ relationships with funders

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The Skills to Pay the Bills: An Evaluation of an Effort to help Nonprofits Manage their Finances – StrongNonprofits.org Karen Walker

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Live Tour: StrongNonprofits.org

Free online tools, templates templates, and resources

22

Can Nonprofits Learn the Skills to Pay the Bills? – StrongNonprofits.org May 28, 2015

22 www.strongnonprofits.org

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Forbes Funds Portal to StrongNonprofits.org

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Discussion and Q&A Q&A

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Final Thoughts

f StrongNonprofits.org

Follow up webinar: Building a Program-Based Budget, and Other Financial Management Tips Novem ber 3 2 0 1 5 Novem ber 3 , 2 0 1 5

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