November 2008

November 2008: OD180 Management Letter #31

The Whole Truth

Dear Friends:

This month I return to my series on values and what I refer to as the "Five Foundation-Stones of Organization Building." In September, I wrote about generosity of spirit, and more specifically, gratitude. I now turn my attention to honesty in communication. I welcome your comments and questions. Contact me anytime at davidnorgard@OD180.com.

Peace,
David

The Whole Truth

The Dilemma

Nearly all of us in the nonprofit sector affirm truth-telling as a fundamental value in conducting our affairs. Yet, more often than we would care to admit, we are faced with dilemmas about just how transparent we are going to be. Do we inform our donors that our modest endowment has tanked with the stock market? Or, do we announce on our website that a prominent board member has abruptly resigned? Sometimes, we even hesitate to share good news. Do we really want to let our constituents know halfway into a special campaign that the goal has already been met?!

Who, What, When, Where, and How

So how do we resolve these dilemmas? Do honesty and prudence ever conflict? I do not believe they do. Nevertheless, it is appropriate to ask ourselves: When, where, and how do we tell what to whom?

Who

For now, I will focus on external communications: what we say to clients, customers, donors, grantors, neighbors, media representatives, and the public at large. In a future letter, I will address the subject of internal communications, i.e. with board and staff members and representatives of associated organizations.

What

In every nonprofit organization, there are four basic functional areas: program, resource development, administration, and governance. In each of these areas, information arises that it is incumbent upon leaders to share openly

Program
Any interested party should be able to learn quickly and easily who or what the organization serves and to what purpose (mission and vision essentially), how it does so (the programs), and the extent and success of the work. This last category includes all the particulars about services rendered such as geographic or demographic parameters, program participation and completion statistics, and outcomes.

Resource Development
Be clear about inflows of money and other resources, such as volunteer hours and substantial in-kind gifts. Describe the major sources of support by type, along with totals and some explanation about how the numbers came to be what they are.

Administration
News in three areas of administration is critical to report: 1) changes in key personnel, 2) changes in major property holdings, and 3) income and expense. This sort of news eventually leaks anyway, whether good or bad. Consequently, it is better for the organization to provide background and explanation up-front rather than to have it made up by others.

Governance
Members of boards of directors are really trustees of the public good. Therefore, the public needs and has a right to know who is serving and in what capacity. Optimally, this applies to committees of boards as well as the boards themselves.

When

Information that is aggregated according to some regular schedule, such as service statistics and financial reports, are best made available on a quarterly and annual basis. Monthly reports of this kind serve an internal audience well but actually tire out an external audience. On the other hand, a more infrequent pattern can engender suspicion or frustration.

News of an occasional nature is best reported within five to ten days, depending upon its relative importance and the ramifications involved. Examples include changes in the membership of the board and key staff.

Where

It is funny in a way...Sometimes program sites seem to be the last place to learn more about an organization. In this era of instant, on-line communications, it makes little sense to invest in vast quantities of printed materials. Nevertheless, all public and program sites should have available basic, current information in take-away form for visitors and others.

How

Back in the era when some of us first became involved in nonprofit organizations, putting announcements in the monthly print newsletter was not only sufficient; it was about the only cost-effective way to get our news to our constituents. These days, a printed "newsletter" is practically an anachronism. Post information on the organization's website and place in easily downloadable format. In addition to posting on the website, send breaking or especially important news via e-mail.

Q&A

This month's question is courtesy of Joseph Oppold from West Hollywood CA, a volunteer in several organizations over many years.

Q: How do you keep volunteers motivated?

A: Retaining volunteers is the last step in a series of actions critical to any successful volunteer relations program. The first is to recruit appropriately. Disclose all that is expected of the person volunteering in terms of time and talent. Then train every volunteer thoroughly. If the organization does not take the job seriously enough to train those doing it, the volunteer is not likely to take it very seriously either. Third, proper coordination is essential. If you will not need someone on Friday, let him/her know before she arrives. Treat volunteers as if you know their time is valuable - to them and to you. The last step is to acknowledge volunteer efforts generously and regularly. No one likes to think that their contribution is being taken for granted. Overall, it is essential to ask: Is this volunteer experience meaningful to the individual and to the organization? If it is lacking on one side of the equation or the other, retention will be problematic.