By Helen Fortin
According to the Canada Revenue Agency and Under the Income Tax Act, a non-profit organization is an association organized and operated exclusively for social welfare, civic improvement, pleasure, recreation, or any other purpose except profit.
It exists to serve society and benefit the public and typically receives fees or donations in exchange for providing services using any profit to realize its mission rather than for corporate expansion. When donating to a non-profit the donor is entitled to a receipt which may be used as a tax credit. (Please consult Canada Revenue Agency and Revenue Quebec for more specifics).
Not all non-profits operate in exactly the same way but all are led by their mission statement. A mission statement is a clear definition of an organization’s existence and core purpose. Elaborations may include factors as to how an organization achieves its impact and what it most values.
The mission determines the vision of the non-profit and both are set out in a strategic plan which may be undertaken every 3-5 years. The plan elaborates an organization’s core values, goals, objectives, and how it intends to achieve these goals.
A good strategic plan is flexible in its planning understanding unforeseen circumstances which may arise over the period selected to carry out its mission. These days, a plan B should always be included. The Case for Support and Communications Plan should emerge based on the goals set out in the Strategic Plan.
The Case for Support is the cornerstone of any non-profit and especially so when they may embark on a capital campaign (raising funds for a particular need). The Association of Fundraising Professionals (AFP) Dictionary defines a case for support as: “The reasons why an organization both needs and merits philanthropic support, usually by outlining the organization’s programs, current needs, and plans.”
A communications program promotes an organization’s ideas, concepts, and purposes to its constituency. When fundraising a variety of documents, media, social media and appeals are used depending on the audience being cultivated. Events are planned as well.
Audience categories include Government Funding, Leadership, Major, Public and Annual Giving gifts. A solid and efficient data base used in sync with an Annual Gift Program often results in higher value gifts and Planned Giving opportunities such as bequests (a donation left in someone’s will to the organization).
The structure of non-profits also varies. Some non-profits choose to have an Honorary Board. This board is comprised of prestigious individuals in the community who support the mission by lending their names to the organization. Their purpose is to lend the organization notoriety in order to increase public support and ultimately increase funding. They are not involved in governance.
A Board of Directors governs a non-profit. The Executive Director or (Chief Executive Officer) reports to the board. Staff reports to the Executive Director. The Executive team of a board is comprised of a President, Vice-President, Treasurer and Executive Director. Other committees include, Communications, Finance, Fundraising, and Nominations. Good governance and careful recruitment of members are essential to the organization’s success.
An ideal board member has a willingness and ability to devote the allotted time required to the position; plans for and attends board meetings having read the minutes and all reports; donates meaningfully according to their personal means (100 per cent board participation is very attractive to potential donors); listens, analyzes, thinks clearly and creatively, and works well with people individually and in a group. They should also know how to read and understand financial statements and understand that their primary role is not to manage operations but to open doors in the community for financial support.
The Executive Director prioritizes internal stability and performance, whereas CEOs are more focused on external influence and the organization’s future trajectory. It is possible to carry out both roles.
A non-profit Executive Director needs strong leadership, administrative and fundraising skills. They are the bridge between the board and staff balancing the needs of each always keeping in mind that mission comes first.
An ideal staff consists of workers who report to a Fundraising Development Manager, Annual Gifts Manager, Communications Manager or a Human Resources Manager. The Managers assist the Executive Director to ensure operations run smoothly.
The Fundraising Development Manager is indispensable to the Executive Director. This manager guides the Executive Director, who in turn guides board members, in cultivation and solicitation strategies while approaching potential donors. Although there exist many schools who offer fundraising as a discipline, a popular designation is the Certified Fundraising Executive Certificate in conjunction with the Association of Fundraising Professionals. These are people to look for in choosing staff.
To work in a non-profit is a gift in understanding altruism. A successful non-profit wears their mission on their collective sleeve fighting for decency and fairness in society which is needed now more than ever.
