Skip to main content
Monthly Archives

May 2019

May 27

The top 3 must-do’s in effective strategic planning

By Sponsor Insight

By Hannah Gooding, consultant, Hedges

Imagine having to map out a family road trip without knowing your destination. Sounds a bit backwards and overwhelming, right?

Too often, barriers of time and resources leave nonprofits of all sizes and at all life-stages operating this way: with no clear destination or a strategy for getting there. Nonprofit leaders may feel like all they can do is to “keep driving.” They provide their services. They steward their donors. They submit their grant reports. They maintain the status quo without ever getting to stop and ask: Where are we trying to go? What do our participants need? What are we trying to solve and how will we know we’re successful?

These questions are natural stepping stones in a strategic planning process — a process nonprofit organizations should undergo every three to five years.

However, for many organizations, a strategic plan can feel like a box to check. When that happens, nonprofit executives may attempt to answer these important strategy questions in a board room on a Saturday lacking external perspectives, buy-in, or consensus.

When checking the box is the end-goal, nonprofits lose sight of the value of good strategy. Good strategy is a product of a thoughtful, flexible process that can’t be tackled in a board room — even with the most diverse and talented board and staff in the world. Good strategy is not a strategic plan. Without a process that is inclusive and destination-driven, a strategic plan is just a bunch of buzzwords that sits in a binder or in a file on a desktop. Indeed, as President Dwight Eisenhower once said: “Plans are useless. Planning is everything.”

So how should organizations approach a strategic planning process that will result in real strategy?

First, there is value in having a conversation with your funders about why a strategic planning process would be game-changing. Funders want to invest their resources in organizations that are guided by good strategy. In fact, many offer capacity building grants or award endowment funding so that organizations can truly invest in a planning process.

However, to ensure a strategic planning process is worth the investment of both your time and resources, there are three important things to keep in mind.  

1 A strategic planning process should be inclusive. Incorporating a diverse range of perspectives and experiences is the best way to develop a strategy that is not only realistic, but also exciting for your key supporters and relevant to those you serve.

A strategy-rich planning process starts with setting the perspectives of your participants, volunteers, partners, donors, and other stakeholders as the decision-making foundation. You can do this by facilitating one-on-one interviews, focus groups, surveys, or “town halls” to glean important feedback about what is working well and how your organization might need to shift, adapt, or grow.

At this stage, a third-party facilitator becomes incredibly important, providing the necessary neutrality to collect real information. This individual can be the buffer if a participant needs to share concern about mission-creep or that the model your donors love isn’t working for the clients who actually experience it. As one of our participants put it: “No one wants to tell you your baby is ugly.”

An inclusive strategic planning process not only leaves room for honesty, but also provides a space to build buy-in with your closest allies, partners, and supporters. Asking your stakeholders for their ideas is the quickest way to ensure you have their support when it comes time to implement (and fund) those ideas. Asking your participants for their feedback is the best way to ensure your work is grounded in integrity and purpose.

Take for instance, when the Coalition for Homelessness Intervention and Prevention (CHIP), on behalf of the Indianapolis Continuum of Care, set out to develop the Indianapolis Community Plan to End Homelessness. It engaged 400 community stakeholders — including 170 individuals who were experiencing or had experienced homelessness — in the planning process. By doing so, Indianapolis residents and more than 80 unique agencies were able to make their voices heard and collaborate to create a true community plan.

Key funders, who were included in the planning process, decided to orient their funding priorities around the strategies that were developed. One of their priorities became the commitment to raise and align $4 million toward implementing the strategies identified in the plan. Through careful crafting of the Indianapolis Community Plan to End Homelessness, the Continuum of Care not only set the strategy for addressing one of the most pressing challenges in our city, but unified key perspectives and achieved vital seed funding in the process.

2 A strategic planning process should be oriented toward a clear destination. It should set the results you want to achieve, or the difference you want to make, as the yardstick by which you test all of your decisions.

A good strategic plan should act like a compass — not prescribing every specific turn you must take, but a tool that reminds you what direction you should be going to get to your destination. However, like a compass, a strategic plan is useless unless you know where it is you’re trying to go. Setting a destination is essential for setting strategy.

A strategy-rich planning process doesn’t just ask: “How do we keep going down this path?” Instead it asks: “What do we want to be different for our community and our participants, and what do we need to change about our approach to make that vision a reality?” One of our clients, for example, answered this question by simply saying: “We have to stop being all things to all people.” This realization articulates what so many nonprofits experience when they lose sight of their true destination — an attempt to do everything “okay” versus one thing extremely well.

When a strategic planning process is destination-driven, it puts your endgame into clear focus and pushes your organization to make decisions based on what gets you closer to your real goal and greater impact.

Keep in mind that your destination:

  • should align with your mission;
  • should be specific and measurable;
  • should elevate the insights of your key stakeholders; and
  • should put your participants’ needs front and center.

3 A strategic planning process should be holistic. Setting strategy should include an assessment of what we at Hedges like to call “The Four Pillars of Organizational Health.” In addition to considering the strengths, challenges, and opportunities of your programs and their impact, strong strategic planning takes into consideration plans for strengthening the organization’s leadership and culture, development and financial management, and marketing and communications. 

An organization must be able to measure the impact of its programs with the use of strong data, foster leadership and a culture throughout the organization, execute engaging and effective fundraising strategies while maintaining strong financial management, and communicate its impact to key stakeholders and the broader community.  Like four legs of a table, these Four Pillars of Organizational Health will provide the strength and balance your organization needs to realize your strategic vision even during times of uncertainty and change.   

In a strong strategic planning process, you will take the information you learned from your inclusive research process, align it with your clear direction, and finally set your plan to holistically align with each of these four pillars. This approach allows you to focus on the overall health of your organization in a way that optimizes your resources to create sustainability. While a holistic approach takes more time and resources, the end result builds the capacity of your organization to further expand its impact in the most meaningful way.

As you approach a strategic planning session/process, remember, setting strategy is a process and the process is everything.

Don’t waste your time on a strategic plan that documents the status quo. Especially now, when the philanthropic landscape is changing, unrestricted dollars are elusive, and community needs are becoming increasingly complex, good strategy is more important than ever.


Hannah Gooding is passionate about three things: nonprofits, problem-solving, and pie. She has been a consultant with Hedges since 2017. With a background in nonprofit program management, her expertise in research and strategic thinking has supported dozens of nonprofit organizations in Central Indiana.

May 21

Nonprofits: How to report collaborative activities

By Uncategorized

By Lauren Kreutzinger, manager, VonLehman CPA & Advisory Firm

A collaborative arrangement may be the simplest relationship between nonprofits for accounting purposes. These are typically contractual agreements in which two or more organizations are active participants in a joint activity.

One example would be a private school that’s jointly operated by two religious organizations. Another would be a nonprofit that provides free clothing and operates a shop at the local homeless shelter.

It is important to note that the financial reporting rules in these arrangements depend on the type of collaborative relationship entered into by the parties.

Reporting costs and revenues

In any collaborative arrangement, the nonprofit considered the “principal” for the arrangement should report costs incurred and revenues generated from transactions with third parties on a gross basis in their statement of activities.

Generally, the principal is the entity that has control of the goods or services provided in the transaction. But Generally Accepted Accounting Principles (GAAP) should be followed for each particular situation.

The nonprofits should present payments between participants according to their nature, following accounting guidance for the type of revenue or expense involved in the transaction. Participants in a collaborative arrangement also are required to make certain disclosures in their financial statement footnotes. For example, they must report the nature and purpose of the arrangement and each organization’s rights and obligations.

When two nonprofits form a new legal entity  

In some circumstances, two organizations may determine that the best route forward is to form a new legal entity. A merger takes place when the boards of directors of both nonprofits cede control to the newly formed entity. The historical values of the assets and liabilities of the organizations are combined, and the accounting policies of the original entities must be brought into conformity for the new entity.

If one nonprofit cedes control to the other

Another option is for the board of one organization to cede control of its operations to another entity. For example: One nonprofit allows the other nonprofit to appoint the majority of its board as part of its decision to engage in cooperative activities. In such a case, an acquisition takesplace, with the remaining organization considered the acquirer. The remaining entity must record the acquisition based on the current value of the acquired organization’s assets and liabilities.

If there’s an excess of current value over original cost to the organization being acquired, that amount is recorded as a contribution. If the value is lower, the difference is generally recorded as goodwill not as an expense. But, if the operations of the acquired organization are predominantly supported by contributions and returns on investments, the difference is recorded as a separate charge in the acquirer’s statement of activities.

Let’s say your nonprofit assumes control of another entity and GAAP requires you to consolidate financial statements with the other. You should account for your interest in the other nonprofit and the cooperative activity by applying an acquisition method described in GAAP.

If the shoe is on the other foot, and it’s your nonprofit that cedes control of its operations to another entity, that organization may need to consolidate your organization (including the cooperative activity) starting on the “acquisition” date. If your nonprofit will present its own separate financial statements, you must determine whether to establish a new basis for reporting assets and liabilities based on the other entity’s basis.

When the new legal entity houses a joint activity

In many cases, a new legal entity is formed only when the outcome is to house the cooperative activity instead of all activities of the organizations that are collaborating. This would be neither a merger nor an acquisition.

However, to determine the proper accounting treatment, it’s important to look at which, if any, collaborator has control over the activity.

Seek help

Reporting your collaborative activities with other organizations in your financial statements is an important responsibility. Your VonLehman advisor can help you understand the rules and how to comply with your specific reporting obligations.

Lauren Kreutzinger is a manager with VonLehman CPA & Advisory Firm. She specializes in providing auditing, review, compilation, and business advisory services for a wide range of nonprofit organizations. She serves on the firm’s Nonprofit/Government Service Group and has achieved the American Institute of CPAs’ Nonprofit Certification. She frequently contributes nonprofit industry related content for the firm’s website and newsletters and has also presented at various nonprofit educational seminars hosted by VonLehman and other industry leaders.

May 06

Interns share value of internships

By Uncategorized

By Pamela Clark, director of student services and admissions and Abby Rolland, communications project manager, Lilly Family School of Philanthropy

Who benefits from internships?

In the nonprofit sector, internships provide crucial, practical experiences for students preparing for careers in the field. At the Lilly Family School of Philanthropy, both undergraduate and graduate students in philanthropic studies complete at least one internship.

Tyrone Freeman, Ph.D., believes internships are a vital part of the undergraduate learning experience.

“They provide students with pre-professional opportunities in the workplace that expose them to careers and organizations of interest.

“Internships test students’ abilities, build their networks, and let them try out various professional roles and workplace cultures before they make their own career decisions,” said the director of undergraduate programs and assistant professor of philanthropic studies at the Lilly Family School of Philanthropy.

Students find that internships enhance and contribute to their experiences overall. Claire Ralston, a senior in the philanthropic studies program, wanted to intern at Shepherd Community Center. So, she reached out to chief development officer Steve DeBuhr in order to discuss creating an internship that not only gave Ralston firsthand experience of work in the sector, but also benefited the Center.

Ralston spent last summer refining the Center’s stewardship process, helping with events, and managing volunteers. Her internship gave her tangible skills to be transferred to a future career. “It was a well-rounded experience for me.”

Her supervisor, DeBuhr, noted the benefits to the nonprofit. Not only did she implement her book learning, but her work as become its standard operating procedure.

“Claire was able to implement what she’s learned at the school and combine it with an attention to detail and a desire to pursue excellence. Her work has become our standard operating procedure for our newly formulated stewardship program, and any on-going benefit to Shepherd attained by thanking or connecting to our donors will in no small means be attributed to her work,” said DeBuhr.

Kathi Badertscher, Ph.D., director of graduate programs and lecturer of philanthropic studies, added, “the internship course provides the culminating experiential learning opportunity for students to apply their graduate-level education in practice.

“Students work or volunteer in a wide range of nonprofit settings, from “voluntourism” to special event planning to capital campaign management, based on their interests. They gain experience in setting priorities and contending with some of the realities of philanthropic work such as human and financial resource constraints.

“Internships provide a crucial bridge between the classroom, real-world issues in philanthropy, and skill development in a professional setting,” Badertscher said.

Macy Jackson, another senior in the bachelor’s degree program, spent last fall with Gleaner’s Food Bank of Indiana working with their grants and foundations department. She read and analyzed past grant reports and gathered the information in one place in order for current staff to utilize the information for future grants. She also wrote grant proposals, a practical skill she knows will be useful when she looks for full-time work.

“I’ve been able to use what I’ve learned in class, such as knowing the best way to talk to donors and foundations, in my work. I enjoy working with organizations and figuring out how I can integrate what I’ve learned to help them.”

Savanah Strever, director of grants and foundation relations and Jackson’s supervisor at Gleaner’s, also shared her thoughts on the advantage of hosting an intern.

“Having Macy allowed us to tackle several projects that otherwise may have been put on the backburner. She helped create systems and tools that will improve efficiency, ultimately resulting in increased fundraising capacity for those in need,” Strever explained.

Students are not limited to internships in Indianapolis or their hometowns. M.A. alumna Kelly Mitchell, the current Treasurer of the State of Indiana, spent her internship at a nonprofit organization in Kathmandu, Nepal.

“Being on the front lines and seeing the powerful effects philanthropy can have impacted me a great deal,” she explained.

Current bachelor’s degree student Kelsey Harrington spent time in South Africa, learning that building relationships and sustaining long-term impact are important aspects of philanthropy.

Her experience helped her earn an internship at the George and Frances Ball Foundation last fall, which will evolve into a full-time role once she graduates. This is an additional side-effect of some internships that is not limited to Harrington.

Nationally, more than 40% of the total expected number of new hires from 2011-2012 were expected to come from a company’s internship program, according to the National Association of Colleges & Employers (NACE) 2012 Internship & Co-op Survey.

Nonprofits are no different. The opportunity to screen potential employees is one benefit for nonprofits who host internships. In addition, both the organization and the intern can determine if the pair fits together well.

JoAnna Ness, M.A. ’18, earned her current job as the Communications Director for the Steuben County Community Foundation after a summer internship there working in communications. “During my internship, we discovered it was a great fit on both ends, and the timing worked out perfectly.”

How can an intern benefit your nonprofit organization?

  • Address an organizational need.
  • Gain fresh, energetic, and knowledgeable “staff” at reduced cost.
  • Screen potential employees.
  • Increase interaction with the university and gain access to faculty expertise.
  • Contribute to professional growth of the student.

Erin Wuertz, B.A. ’18, has a passion for domestic violence victims. Volunteering at Coburn Place led to an internship in philanthropy, which then evolved into another internship there in events management. Since then, Wuertz first earned a full-time role as a mentor, and now coordinates the organization’s volunteers.

Finally, senior Natalie Laskowski spent last summer as an intern with the Future Farmers of America (FFA) Foundation on their development and donor services team. Laskowski worked with projects ranging from annual fund data analysis to endowment reporting to corporate sponsorship engagement. Her internship extended to the fall, and she then received the opportunity to begin full-time work as the Development Coordinator in the spring.

Her commitment to FFA and creativity in learning did not go unnoticed by FFA Foundation President Molly Ball.

“Natalie is awesome. She takes a project and looks at it from a different angle in order to find innovative ways to approach an issue,” Ball explained.

At least four graduating students in the bachelor’s and master’s degree programs this year alone will work full-time with organizations that previously hosted them as interns.

 “We’re grateful to the many nonprofit organizations that have partnered with us and our students in providing rich experiences that support academic objectives, and look forward to continuing current partnerships and establishing new ones with nonprofit organizations,” Badertscher said.

Interested in learning how you can benefit from having an intern? Contact Pamela Clark at pamelac@iupui.edu.  

Pamela Clark currently serves as the director of student services and admissions for the IU Lilly Family School of Philanthropy. She enjoys working with students and supporting them in achieving their academic goals. She earned a bachelor’s degree in elementary education from the University of Evansville and a master’s degree in adult education from Indiana University.

Abby Rolland serves as the communications project manager at the Lilly Family School of Philanthropy, and is also working towards a master’s degree in philanthropic studies. She holds a bachelor’s degree in history from Gettysburg College

May 06

Youth councils get kids involved in government

By Feature

By Lynn Sygiel, editor, Charitable Advisors

When you are in high school, you worry when the assistant principal calls you down to the office. Paige Kendall was no different. She was terrified when, as a freshman, her name was called over the PA. 

The reason for the visit, however, was anything but punitive. In fact, it was an honor. Greg Werner, the assistant principal at Southridge High School in Dubois County, had a proposal. Huntingburg Mayor Denny Spinner was interested in launching a youth council in the city, and he was looking for kids with leadership skills to help get the project off the ground. Werner wanted to know what Kendall and five other students thought of the mayor’s idea, and if they liked it, would they help recruit classmates?

Kendall, now a junior, obviously liked what she heard. In the three years since her angst-ridden trek to the assistant principal’s office, Kendall has not only helped recruit others, but she’s been an active member of the council which launched in 2017.  And for the past two years, she’s been president of the 12-member Mayor’s Youth Council, which launched in 2017. It draws its members from the only public high school in the corporation with a student body of 531.

Huntingburg isn’t the only Indiana community engaging young people in this way. A growing trend, voices of young people are being heard in 34 municipalities in Indiana. Aim, formerly called the Indiana Association of Cities and Towns, supports the effort, and now offers statewide programs through its Youth Councils Network.

“Over the years, we have learned from many mayors and town leaders that youth councils are a fantastic way to connect with students and ensure municipal policies and programs take into account the needs of citizens of all ages. They are also a wonderful pipeline to recruit talented young people into public service, by showing them firsthand how local government works and how it can be a positive influence on people’s lives,” said Aim’s CEO Matt Greller.

Huntingburg’s Kendall is also serving on Aim’s first Youth Councils Network state board and helped plan the annual Youth Summit that was held in February. For the past two years, the summit took place at Indiana University in Bloomington. This year nearly 200 young people attended the two-day event.

Another Aim program is its Youth Legislative Day, which took place in April. The event started at IUPUI and ended at the Statehouse. Part of the day’s schedule was to learn about the top issues being debated by Indiana lawmakers.

While each council’s number of youth representatives vary, as do the tasks they complete, the reason for their existence is similar. Communities from Fort Wayne to Loogootee/Shoals, Indianapolis to Princeton and Angola to Evansville increasingly are tapping into an effective way to allow young people to whom the long-term future belongs help plan for it.

So just what motivated Spinner to start a youth council in Huntingburg? It started with a simple question.

Mayor since 2011, his city earned a Stellar Community designation in 2014. This Indiana award began in 2011 and recognizes smaller communities, and now regions, that have collaborative plans for community and economic development and is annually given to two Indiana communities.

After Huntingburg received the award, someone asked the mayor if there was anything he would do differently. That question got him thinking, and he realized there was a gap.

“We did not have a lot of engagement from our youth,” he said. “So how do we fix that?”

It was at an Aim conference that he discovered a solution. While attending a session about mayor’s youth councils presented by several mayors and Jim Dittoe, he sought more information about how to get started. The NCAA had engaged Dittoe to develop a youth program, and he had also helped Frankfort’s mayor establish its youth council. Spinner realized a council could provide him ongoing input from his city’s youth. So, he, like Frankfort’s Chris McBarnes had done, invited Dittoe to submit a proposal.

“What Jim provided was that structure I was looking for. He had had experience with some other communities in forming the same type of organization. We followed his blueprint to get the first year together, and it provided to be very successful,” he said.

This week when Richmond launches its council, it will be the 21st municipality in Indiana that Dittoe has advised.

“I’ve had the terrific opportunity of working with young people who are very optimistic. They’re determined and they want to tackle the tough issues within a community,” said Dittoe.

“We want them involved now. Not just being told what to do, but coming up with ideas and solutions and the challenges of working with people in positions such as the mayor, such as the chamber of commerce. We want them directly involved so they learn by doing.”

And getting involved and learning is just what Kendall and Cameron Buschkoetter, a Southridge senior, have done. And the result has been to develop a passion for the community.


“We really want to focus on making Huntingburg the best it can possibly be and making us and other people come here, want to live here and make their life in Huntingburg,” said Kendall.

The council’s first project was to elicit more youth involvement in the “5-5-5,” a series of monthly 5K fun walk/runs that gives the community a chance to exercise with a group. Created by Mayor Spinner, they happen on the second Friday of the month from April through August at 5 p.m. Thus its 5-5-5 designation.

The mayor’s challenge to the youth council was more peer involvement. Starting with a survey, the youth council asked all the high school students what was missing. Their approach was through old-fashioned paper surveys distributed through the school’s homerooms. Then they tallied the responses. There were some surprises.

“There were a lot of people that said if (the runs) were more of a competition with teams, they would be more willing to do it. And honestly, we should have thought of that. Teenagers love competition,” said Kendall. The council created teams of four, and each month, the first entire team to cross the finish line won Holiday World & Splashin’ Safari Tickets. Over 100 students participated each month.

The youth have also named a new city road. One result of the Stellar designation was an overpass, which was approved as a city street. The youth council brainstormed names for it, and then submitted its choice, Progress Parkway. The City Council gave them a thumbs up. 

“They loved it, so we actually named the overpass in Huntingburg,” said Kendall.

With just over 6,000 people, the small southwestern community boasts the filming of a few movies, including “A League of Their Own.” And Buschkoetter, who has spent his junior and senior years on the council, said the city’s slogan “Like No Other” fits this close-knit community. He firmly believes that when he finishes at Purdue University, he will return. What he learned from this year’s project was patience.

This year the council was singularly focused on the My Community, My Vision program challenge. In its fifth year, young Hoosiers determine what their hometowns need to attract younger generations seeking vibrant living spaces. Each of the five communities selected were partnered with an IUPUI School of Public and Environmental Affairs’ graduate student. Huntingburg worked with Michael Hendrix. 

The youth council members worked to develop plans for a park in the community, and in April, presented their plans for a second basketball court and received $5,000 to implement a project. They also have presented their plans to the city’s Park Department, which provided them with cost estimates and have requested additional funds from the Dubois County Community Foundation.

Buschkoetter said it was a strenuous process that included meetings with a reviewer and creation of a PowerPoint to explain the project.

And while awards and accolades are certainly not the main reasons for these young people’s involvement, real dollar awards are making their projects reality.

At Aim’s recent summit, the Kendallville Youth Council won the excellence-in-youth-leadership award. The award honors a council that made lasting efforts to better its community and comes with $5,000 to support a community development project. The council opted to use the money on an alley improvement after learning about similar projects throughout the state. Communities like Frankfort and Angola have taken little-used alleys and turned them into gathering places for the community.

And adult politicians are benefitting, too. Mayor Spinner said the youth council meetings are the highlight of his month.

“They’re not afraid to tell me if they have a concern or what they think the community should be doing. Having the opportunity to have an open conversation with students in their high school is the most positive thing. It’s giving them an opportunity to learn more about the city, to learn more about how government works, to learn more about how to engage with other people and take a leadership role, they’re all positives,” he said.

“They can see that they can make a difference in a small community and they can have their voice heard, and they can have a real impact right here. And showing them the positive things that are going on gives them a feeling that this is a good community to be part of.”

The existence of youth councils has the potential to enhance civics understanding for many young people who are potential future leaders in the places they live.

That’s what happened in Frankfort. The mayor, Chris McBarnes, was elected at 23, and at the time was the youngest Indiana mayor. Early in his term, he contacted Dittoe about starting a youth council.

Now, Isac Chavez, a young man who was on that first Frankfort youth council, is graduating from college and returning to Frankfort, and he’s running for an at-large spot on the City Council (Election Day: Tuesday, May 7).

“It’s a terrific example of what can happen encouraging young people to become involved as leaders,” said Dittoe.