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Monday, Dec
18, 2006 |
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-----------------------------------------Advertisement----------------------------------------
MasterCard
http://clk.atdmt.com/AST/go/mrp0010000026ast/direct/01/
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The NPT Weekly
Update:
Table of
Contents
News
Update:
Nonprofit Mail Rates Capped At
CPI
Tips of the
Week:
Finance...
Getting inexpensive accounting
help
Management...
Organizational effectiveness can
always improve
Human Resources...
Performance
evaluation is a two-way street
Click here for all
useful Tips
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-------------------------------------------Advertisement------------------------------------------
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News Update
Nonprofit Mail Rates Capped At
CPI
By Lee M. Cassidy and Mark Hrywna
More than a decade in the making, postal reform
legislation will be become law after President George W. Bush
signs the legislation at a ceremony scheduled for Wednesday. For
the first time in a generation, the laws governing the finance
and operations of the United States Postal Service (USPS) will
be revised, making future rate hikes more predictable for
nonprofits and bringing financial stability to the nation's mail
system.
A new Postal Regulatory Commission, with more
power than the existing Postal Rate Commission, has 18 months to
establish a new rate-setting process. The commission will be
allowed to increase rates each year, but no more than the annual
increase in the Consumer Price Index (CPI). The USPS could
change most rates with 45 days notice while the current process
can take a year and has no cap on rate hikes.
The rate
case currently before the Postal Rate Commission, expected to
raise $3 billion a year, will be unaffected by the new
legislation. A decision is likely by March, with implementation
of new rates expected by May. (Click here for more)
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Tips of the Week
Finance...
Getting
inexpensive accounting help
For small
nonprofit organizations, the issue of retaining a good
accountant is vital, even though salary limits can present
difficulties in getting the best people.
In their book
Financial and Accounting Guide for Not-For-Profit Organizations,
Malvern J. Gross Jr., John H. McCarthy and Nancy E. Shelmon
point out that accounting responsibilities can be burdensome to
the organization's treasurer. Depending on an organization's
size and scope, there are several levels of in-house accounting
service that may prove workable. Each has its own
considerations. They are:
- Secretary as accountant. If the number of transactions is
too large for the treasurer but not large enough to justify a
full-time accountant, duties may be relegated to a secretary.
Usually this means keeping a "checkbook" or a simple cash
receipts and cash disbursements ledger.
- Volunteer as accountant. While this can occasionally be
effective, it often turns out to be less than satisfactory.
There is little control over the activities of a volunteer
accountant, and it is difficult for the treasurer to insist on
timely records.
- Part-time accountants. This first step is to determine how
much time is required. A parent with school-age children may be
a good fit. If this arrangement is not suitable, a retired
accountant may be necessary.
- Full-time accountants. For larger or growing organizations,
there is a point when a full-time accountant is needed. A want
ad should be explicit on what is required and should indicate
salary and desired experience and competence.
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Management ...
Organizational effectiveness can
always improve
During the past few years, there
has been heightened emphasis on the concept of nonprofit
capacity building -- the increase of investment in organization
and management.
Although one commonly accepted benchmark
for improved performance has always been fundraising, Mike
Hudson points out in his book Managing at the Leading Edge that
greater funding in itself is not enough and that organizations
must raise the bar on quality in order to achieve a greater
impact. This can be especially difficult for advocacy
organizations, which often are focused on rapidly changing
external agendas and are staffed by people passionately
committed to the cause.
To attain this enhanced impact,
Hudson offers a fresh new paradigm for organizational
effectiveness that has emerged from a variety of conversations
and observations in the nonprofit sector.
The key
characteristics of this new paradigm are:
- Making continuous strategic investment in the development of
the organization itself, its people, and its relationships to
give it the power to have greater impact.
- Charging the full cost of programs to funders and being
comfortable about making surpluses.
- Using unrestricted income and foundation grants to invest in
the capacity of the organization itself.
- Using unrestricted income to subsidize services only when
there is a compelling case and a demonstrable connection with
the organization's strategic priorities.
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Human Resources ...
Performance
evaluation is a two-way street
The most important aspect to evaluating an
executive is providing time for thoughtful conversation,
according to Donn F. Vickers and Kelly Stevelt Kaser in
"Evaluating Your Executive: New Approaches, New Purposes,"
published by The Academy of Leadership & Governance in
Columbus, Ohio.
Grading an executive's performance without
conversation about what it means is not useful, according to the
authors, who compiled 15 different options for nonprofit boards
to evaluate their executives.
One of the options presented, "The Making of an
Effective Executive," first appeared in the Harvard Business
Review by Peter Drucker, "one of the fathers of American
management science." He believes that leaders who are truly
effective follow the following eight practices.
The first two give them the knowledge they need,
the next four help convert this knowledge into effective action,
and the last two ensure the whole organizations feels
responsible and accountable.
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Effective leaders: Ask, "What needs to be
done?"
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Ask, "What is right for the
enterprise?"
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Develop action plans.
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Take responsibility for decisions.
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Take responsibility for
communicating.
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Focus on opportunities rather than
problems.
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Run productive meetings.
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Think and say, "we" rather than "I."
Copyright ©
2006 The
NonProfit Times.
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