Philanthropy Front and Center - Washington, DC

From the Answer Desk: Contingency and Scenario Planning -- What's the Difference and How Do Nonprofits Get Started?

A: Both are structured ways for organizations to think about the future. In the context of planning, the terms "contingency" and "scenario" are sometimes used interchangeably. In simple terms, a contingency plan can be described as your organization’s “Plan B” or "worst case scenario" and is often tied to something specific, like a natural disaster. They are also sometimes called business continuity plans or disaster recovery plans.

Scenario planning, on the other hand, is a “strategic planning method expressly developed to test the viability of alternative strategies," according to Mal Warwick in his book, Fundraising When Money is Tight. Warwick suggests six steps for creating an effective scenario plan, starting with exploring answers to the question, "What keeps you awake at night?," to draw out fundamental issues, and concluding with testing your strategic choices using “what-if” reasoning. Warwick describes scenario planning in detail and goes on to suggests Peter Schwartz’s classic 1991 book, The Art of the Long View, for further reading. (Listen to our February 2009 podcast with Mal Warwick here.)

In the July 2, 2009 Chronicle of Philanthropy article “Worst Case Scenarios,” author Ben Gose advocates that forming a contingency plan can help a nonprofit navigate the recession more successfully. Offering tips ranging from setting priorities and identifying "trip wires" (actions to take when revenues drop, for example), Gose cautions that organizations must come to terms with the fact that “painful decisions will still have to be made.” However, Mr. Gose goes on to note that during contingency planning “a charity may find that a program it considered cutting is in fact worth saving, and that finding can make a compelling story for donors.”

Additional resources:

Financial Scenario Planning for an Uncertain Future
Slides from a presentation made by Emil Angelica at the June 2009 annual conference of Dance USA.

Nonprofits Assistance Fund Scenario Planning Worksheet
A "step by step guide to nonprofit contingency planning."

ScenarioThinking.org
Open community on scenario thinking and scenario planning where you can publish scenarios, reflect on the planning processes and share online resources about scenario planning in a democratic and inclusive manner.

Do you have a question? Ask Us!

(This post is from Rob Bruno, Foundation Center librarian.)

In the July 2, 2009 Chronicle of Philanthropy article “Worst Case Scenarios,” author Ben Gose advocates that forming a contingency plan can help a nonprofit navigate the recession more successfully. Offering tips ranging from setting priorities and identifying "trip wires" (actions to take when revenues drop, for example), Gose cautions that organizations must come to terms with the fact that “painful decisions will still have to be made.” However, Mr. Gose goes on to note that during contingency planning “a charity may find that a program it considered cutting is in fact worth saving, and that finding can make a compelling story for donors.”

Additional resources:

Financial Scenario Planning for an Uncertain Future
Slides from a presentation made by Emil Angelica at the June 2009 annual conference of Dance USA.

Nonprofits Assistance Fund Scenario Planning Worksheet
A "step by step guide to nonprofit contingency planning."

ScenarioThinking.org
Open community on scenario thinking and scenario planning where you can publish scenarios, reflect on the planning processes and share online resources about scenario planning in a democratic and inclusive manner.

Do you have a question? Ask Us!

(This post is from Rob Bruno, Foundation Center librarian.)

NPower Offers a Day of Free Technology Assistance for Nonprofits

NPower Greater DC Region is coordinating volunteers from IT departments of several local corporations to provide pro bono Stable & Secure Scans for interested nonprofits on Saturday, October 17. Space is limited for this special Technology Day of Service, so don’t wait to take advantage of this opportunity!

Skilled technology volunteers will meet with you to assess your organization’s current technology environment against 12 key benchmarks that include standards for hardware, software, security, and on-going tech support. Organizations will each receive a report with recommendations that address the areas of greatest need and assist with better business planning. NPower may coordinate face-to-face follow-up meetings as needed.

NPower is the DC area’s only nonprofit that provides technology services exclusively for other nonprofits. The Stable and Secure Scan is a powerful tool for the small to medium sized nonprofits in our community. “NPower is pleased to be able to offer this opportunity to our nonprofits partners,” says Julie Chapman, President, NPower Greater DC Region.

More information is available online or by contacting Terry Roberts at Terry@npowergdcr.org.

Next Week at the Foundation Center (September 28-October 2)

Special Program:
Nonprofits & Technology: Lessons from the Front Lines on How to Make the Most of Your Technology
Tuesday, September 29, 2:00-3:30 pm

Classes:
Fundraising in a Challenging Economy
Tuesday, September 29, 10:30-11:45 am

Proposal Writing Basics
Wednesday, September 30, 9:30-10:45 am
Registration Closed

Proposal Budgeting Basics
Wednesday, September 30, 11:15 am-12:15 pm

Before You Seek a Grant: A Checklist for New Nonprofits
Thursday, October 1, 2:00-3:30 pm

These classes are free to attend, but registration is required. For programs offered over the next three months, please see our Events Calendar.

Library:
Use Foundation Directory Online Professional, borrow books, and get reference help free of charge with no appointment necessary. See our website for directions.

Hours:
Monday/Wednesday/Thursday/Friday
10:00 am-5:00 pm
Tuesday
10:00 am-8:00 pm

Lessons From the Front Lines: How to Make the Most of Your Technology

You know that your nonprofit needs to stay up-to-date on technology, but how often should you invest in new products or systems? When should you outsource to meet your technology needs? And can technology really help you find ways to work smarter?

The next program in our TechSense series can help you answer these and other questions to keep your nonprofit moving forward, not lagging behind. Lessons From the Front Lines: How to Make the Most of Your Technology will feature a panel discussion with Sean Segal from The Urban Alliance and Jeff Cole, CIO of Goodwill of Greater Washington. Julie Chapman, Executive Director of NPower, will serve as moderator. These experts will share their own stories and experiences about effectively managing technology for nonprofits.

This special program will be held on Tuesday, September 29 from 2:00-3:30 pm. It is free and open to anyone interested in learning more, so register now to save your seat!

And don't forget to mark your calendar for our October 16 TechSense program, A Rookie's Guide to Online Fundraising, with Rebecca Higman from Network for Good.

New Edition of The 21st Century Nonprofit

The Foundation Center has recently published the second edition of The 21st Century Nonprofit,  expanding and updating the original work and detailing the significant improvements in management practice that have taken place in recent years.

This new edition discusses the growing emphasis on governance reform, with a focus on three main concepts: accountability, transparency, and responsibility. New sections examine the increasingly pivotal role of board members in governance, as well as the implications for executive directors and other professional staff. Revised chapters contain updated information on strategic and operational issues, such as long-term planning, marketing, and earned income. The new edition also provides a special discussion of the strategic issues facing nonprofits during times of recession and severe economic downturn.

The 21st Century Nonprofit is available for purchase online at the Marketplace section of our web site or at any of our five library/learning centers across the U.S. Order your copy today! >>

About the Author
Paul Firstenberg has had extensive experience in the philanthropic sector as an executive, trustee, advisor, author, and teacher. He has held leadership positions with Tulane University, Princeton University, Children's Television Workshop, and the Ford Foundation. Mr. Firstenberg currently lectures at the Baruch College School of Public Affairs.

Visit the Marketplace section of our web site for more information on this and other Foundation Center publications.

Foundation Center Launches National Education Stimulus Initiative

The Foundation Center announced the launch of Foundations for Education Excellence, a national initiative to engage philanthropic institutions and education leaders across the country in a unified, strategic drive to improve public education.

Foundationcenter.org/educationexcellence, the web portal developed by the Foundation Center with a grant from the Charles Stewart Mott Foundation, was launched in cooperation with the U.S. Department of Education. It connects foundation funders in education to information and tools that will help them support ARRA's education reform goals.

"There is a unique window of opportunity in the coming weeks and months for private philanthropy to leverage its investment in education," said Bradford K. Smith, the Center's president. "Funders need fast-track tools to target areas of need and collaborate in new ways to improve educational opportunities across the country. The Foundation Center is ideally positioned to provide foundations with the knowledge platform needed to advance this process."

Read the full press release for details on the contents and uses of the portal.

Foundationcenter.org/educationexcellence, the web portal developed by the Foundation Center with a grant from the Charles Stewart Mott Foundation, was launched in cooperation with the U.S. Department of Education. It connects foundation funders in education to information and tools that will help them support ARRA's education reform goals.

"There is a unique window of opportunity in the coming weeks and months for private philanthropy to leverage its investment in education," said Bradford K. Smith, the Center's president. "Funders need fast-track tools to target areas of need and collaborate in new ways to improve educational opportunities across the country. The Foundation Center is ideally positioned to provide foundations with the knowledge platform needed to advance this process."

Read the full press release for details on the contents and uses of the portal.

DC Community Foundation Funds Local Safety Net Programs

In response to the greatest need for emergency services in its 36-year history, the Community Foundation of the National Capital Region recently announced that it will be awarding $714,300 in new grants to DC area safety net organizations as part of its Neighbors in Need Fund.

This initiative is aimed at providing much-needed support to organizations that offer direct services to vulnerable residents throughout the greater Washington region, such as food, clothing, shelter, emergency financial assistance, and foreclosure prevention.

The Neighbors in Need (NIN) Fund was started in October 2008 to address some of the most pressing challenges facing our region during the current economic crisis. In March 2009 the first 29 recipients of NIN grants totaling $455,000 were announced. A list of these initial grant recipients is available online.

The application period for this new round of funding is already open, and the deadline for submissions is October 5, 2009. More details are available on the Community Foundation web site, and you also can download the guidelines and application form.

Next month, The Community Foundation will begin a new fundraising campaign to raise an additional $2 million to provide further assistance through the NIN Fund. The Foundation has also streamlined its grantmaking process to help put the funds to work out in the community more quickly.

Next Week at the Foundation Center (September 21-25)

Course:
Proposal Budgeting Workshop
Tuesday, September 22, 9:00 am-4:00 pm
cost: $195 per person;
Save $25 for each additional registration

Classes:
How to Approach a Foundation: From Initial Contact to Getting Funded
Held offsite in Hyattsville, Maryland
Wednesday, September 23, 7:00-8:30 pm

Prospect Research Basics: Researching Individual Donors
Thursday, September 24, 11:30 am-12:45 pm
Registration Closed

Grantseeking Basics
Friday, September 25, 10:00-11:30 am

Introduction to Foundation Directory Online
Friday, September 25, 11:45 am-12:45 pm

These classes are free to attend, but registration is required. For programs offered over the next three months, please see our Events Calendar.

Library:
Use Foundation Directory Online Professional, borrow books, and get reference help free of charge with no appointment necessary. See our website for directions.

Hours:
Monday/Wednesday/Thursday/Friday
10:00 am-5:00 pm
Tuesday
10:00 am-8:00 pm

Live From Low-profit Limited Liability Companies (L3C): A For-Profit with a Non-profit Soul

At its most elemental level, the low-profit limited liability company, or L3C, is a cross between a nonprofit and a for-profit. It is a new form of business enterprise that is designed specifically to further a socially beneficial mission, and, in the right circumstances, can qualify as a program-related investment for foundations.

Want to know more? Cass Brewer, a partner at Morris, Manning & Martin in Atlanta, will explain the nuts and bolts of this new kind of for-profit structure with a nonprofit soul. The presentation will be followed by a question and answer session for participants.

How it Works
Although this in-person program will happen in our Atlanta library, we will provide real-time reports on what's being said and done, right here at our blog. In the viewer window below, you can easily submit comments and questions. Our staff will ask posted questions during the program's Q&A session.

At its most elemental level, the low-profit limited liability company, or L3C, is a cross between a nonprofit and a for-profit. It is a new form of business enterprise that is designed specifically to further a socially beneficial mission, and, in the right circumstances, can qualify as a program-related investment for foundations.

Want to know more? Cass Brewer, a partner at Morris, Manning & Martin in Atlanta, will explain the nuts and bolts of this new kind of for-profit structure with a nonprofit soul. The presentation will be followed by a question and answer session for participants.

How it Works
Although this in-person program will happen in our Atlanta library, we will provide real-time reports on what's being said and done, right here at our blog. In the viewer window below, you can easily submit comments and questions. Our staff will ask posted questions during the program's Q&A session.

From The Answer Desk: What is Microfinance?

A: According to a Forbes article on the World's Top Microfinance Institutions, private investor microfinance funding totaled $2 billion in 2006. So what is microfinance and who benefits? MIX Market, a web-based information portal that disseminates information on public and private funds that invest in microfinance globally, introduces the idea of microfinance in these terms:

"To most, microfinance means providing very poor families with very small loans (microcredit) to help them engage in productive activities or grow their tiny businesses. Over time, microfinance has come to include a broader range of services (credit, savings, insurance, etc.) as we have come to realize that the poor and the very poor who lack access to traditional formal financial institutions require a variety of financial products."

In case anyone wonders whether microfinance is a profitable venture, the Capco Institute reported in the Journal of Financial Transformation that of a sample group of about 700 microfinance institutions (MFIs), the top 176 MFIs experienced a return on equity (RoE) of 17.2%. But what of the effects of the global financial crisis? A new survey by the UK-based Centre for the Study of Financial Information reports that while the sector itself has a growing client base, microlending may be faced with its first major "stress test", tackling the immediate concerns of liquidity shortages, bad loans and credit risk.

In the US, microlending seemed to be making an upswing in the midst of the recession among small business entrepreneurs, according to a February MSNBC article. One of the major global microlending institutions, Kiva, recently launched Online Microfinance in the US, which enables individual lenders to make small loans to US-based entrepreneurs.

Other major players in the arena, both nationally and internationally, include ACCION and The Grameen Foundation, both of which provide stories and updates on their websites of ongoing microlending projects and opportunities around the globe. 

Do you have a question? Ask Us!

(This post is from Katie Artzner, the Foundation Center's online librarian)

A: According to a Forbes article on the World's Top Microfinance Institutions, private investor microfinance funding totaled $2 billion in 2006. So what is microfinance and who benefits? MIX Market, a web-based information portal that disseminates information on public and private funds that invest in microfinance globally, introduces the idea of microfinance in these terms:

"To most, microfinance means providing very poor families with very small loans (microcredit) to help them engage in productive activities or grow their tiny businesses. Over time, microfinance has come to include a broader range of services (credit, savings, insurance, etc.) as we have come to realize that the poor and the very poor who lack access to traditional formal financial institutions require a variety of financial products."

In case anyone wonders whether microfinance is a profitable venture, the Capco Institute reported in the Journal of Financial Transformation that of a sample group of about 700 microfinance institutions (MFIs), the top 176 MFIs experienced a return on equity (RoE) of 17.2%. But what of the effects of the global financial crisis? A new survey by the UK-based Centre for the Study of Financial Information reports that while the sector itself has a growing client base, microlending may be faced with its first major "stress test", tackling the immediate concerns of liquidity shortages, bad loans and credit risk.

In the US, microlending seemed to be making an upswing in the midst of the recession among small business entrepreneurs, according to a February MSNBC article. One of the major global microlending institutions, Kiva, recently launched Online Microfinance in the US, which enables individual lenders to make small loans to US-based entrepreneurs.

Other major players in the arena, both nationally and internationally, include ACCION and The Grameen Foundation, both of which provide stories and updates on their websites of ongoing microlending projects and opportunities around the globe. 

Do you have a question? Ask Us!

(This post is from Katie Artzner, the Foundation Center's online librarian)