Sponsor Insight Archives - Page 25 of 26

Oct 19

Four signs performance reviews need to go

By charitableadvisors Leadership, Sponsor Insight

By Mike Bensi, advisor, FirstPerson |

Performance reviews feel as though they have been around since the beginning of time. No matter how many organizations say they are going to blow up performance reviews, they still remain. They are the things that wouldn’t leave. They are inevitable and universal, just like those family and friends who can’t or won’t take a hint that it’s time to go.

More feedback, more often is the future of the dreaded performance review. Meeting with your employees once or twice a year to assess their past, present and future is beginning to seem quite quaint. Some organizations, like Instacart, are moving to a hybrid system that bridges the old and the new. Others have decided to ditch the annual process entirely.

Performance reviews have come to be seen as more trouble than they’re worth. Just ask Adobe, who nixed their annual review process earlier this year. Or startup Zugata, who aims to make that frustrating process less time-consuming and more productive.

How do you know it’s time to say goodbye and eliminate your performance reviews? Here are four ways to tell it’s time to let them go:

You’re trying to justify pay. That is, you’re just trying to defend the salary of your employees. Your process links pay to outcomes, so the performance conversation becomes a mechanism to be compliant. If employees did better than you expected, congrats; you can give them a pay raise!
You don’t even mention the word employee development. Managers are too focused on ensuring outcomes were met. Focusing the process on outcomes sometimes achieves the desired results, but more often than not, it doesn’t move the needle.[i]
You’re trying to treat everyone the same. Treating everyone the same is not the same as treating everyone fairly. To treat people the same means you are fitting them into one system, rather than building a system to support the people. It means you walk your successful employees through the same process as your bottom performers. Compare this to a dinner at a nice steakhouse. You wouldn’t expect the chef to cook everyone’s steak medium, when one person likes it medium rare and another likes it well done.
You feel like this is something you have to do. Talking about the goals an employee should focus on and how they’re doing towards meeting those goals shouldn’t be something you have to do. This conversation should be something you want to do. As a leader, you want to be able to deliver feedback to your employees. You want to ensure they know the right things to prioritize and accomplish. Employees also want clarity in their role and to know the progress they are making toward those goals.

If not performance reviews, then what? Entrepreneurs such as Srinivas Krishnamurti of VMware or Philippe Van Nuijs from Jive Software, are pioneering software to evolve the performance review, promising to provide employees regular and varied feedback on their iPhones in a less intrusive and time-consuming manner.

Pinterest, which uses performance and engagement tool Reflektive, is in the midst of completely moving away from what they like to call “traditional reviews and performance ratings.” The best thing for workers, argued Mike Joyner, the People Operations Manager at Pinterest, “is to get aligned on goals and ensure everyone is consistently getting feedback.”

Mike Bensi, a FirstPerson advisor, works alongside nonprofits and small business owners to design strategic plans that enhance the employee experience. His goal is to align an organization’s culture with human resources, benefits and wellness. He has an MBA from IU Kelley School of Business and more than 10 years in progressive human resources management, including serving as the BMV’s HR director.

Unsure how to tell your process to take a hike? I suggest seeking an advisor to help you have that conversation so you can build a more meaningful conversation with your employees.

Oct 05

Innovations in the independent sector

By charitableadvisors Sponsor Insight

By David P. King, Ph.D., Karen Lake Buttrey Director, Lake Institute on Faith & Giving |

Today’s nonprofits are exploring ways that innovative, cutting-edge ideas can help them address pervasive societal issues, in order to expand their reach for maximum effectiveness and impact.

Want to understand how your organization can leverage innovative programming, technology and changing power dynamics to make a greater difference?

Timms, the 2015 Lake Distinguished Visitor at Lake Institute on Faith & Giving, will discuss these ideas and more in a free public conversation to be held on Oct. 15 at 11:00 a.m. at Christian Theological Seminary (1000 W. 42nd St.). The event is co-sponsored by Lake Institute on Faith & Giving and CTS.

Henry Timms, executive director of New York City’s famed 92^nd Street Y (92Y), is at the forefront of this movement. Under his leadership, 92Y is re-imagining the role of the traditional community center, using both innovative programming and technology.

Timms is helping bring the movement to scale, teaching other nonprofits to think differently about the means by which they advance the greater social good. In 2012, he founded #GivingTuesday, which engages more than 10,000 partners in an annual, global day of giving.

He also co-founded the annual Social Good Summit, which pioneered a new, inclusive summit model that opened up critical discussions to a much wider audience and led to concurrent gatherings around the world. As an extension of the Social Good Summit, Timms and a team developed a MOOC (massive open online course) called “How to Change the World,” in which 51,000 participated in its first year

With Jeremy Heimans, co-founder and CEO of Purpose.com, a social business that builds movements, Timms is also changing the way individuals and leaders across all three sectors think about the concept of power. In a Harvard Business Review article, “Understanding ‘New Power,’” they wrote: “Power isn’t what it used to be. Goliaths are being toppled by Davids, from the networked drivers of Uber to the crowdfunded creatives of Kickstarter. But the dynamics are confusing, especially to managers in traditionally powerful institutions. … Understanding how the nature of power is really shifting — who has it, how it is distributed, and where it is heading — will be a defining challenge.”

Timms and Heimans conclude the article by calling on the innovators of “new power” to address the social good.

“We need new power leaders to make a grand entrance into civil society,” they wrote. “Those capable of channeling the power of the crowd must turn their energies to something more fundamental: redesigning society’s systems and structures to meaningfully include and empower more people. The greatest test for the conductors of new power will be their willingness to engage with the challenges of the least powerful.”

David P. King is director of the Lake Institute on Faith and Giving and assistant professor of Philanthropic Studies at the Indiana University Lilly Family School of Philanthropy. Previously, he was assistant professor of Christian History at Memphis Theological Seminary and earned his Ph.D. from Emory University. His recent research focuses on the rise of evangelical relief and development NGOs, religious humanitarianism and religion’s engagement with international affairs.

Sep 29

Research reveals approaches to retain volunteers

By charitableadvisors Sponsor Insight

By Marlene Walk, assistant professor, Indiana University-Purdue University Indianapolis |

Most nonprofit organizations rely on volunteers to help provide services and could not function without this source of support to conduct programs, raise funds or serve clients.

In 2013, 25.4 percent of adults in the United States volunteered with an organization contributing a little over 8 billion hours. However, nonprofits are confronted with two main challenges with a volunteer workforce.

First, nonprofit organizations are increasingly confronted with pressures to become more competitive. As volunteers are important to organizational performance, nonprofit managers are faced with increasing demands to account for the value of volunteer contributions, thus, requiring them to adapt their practices.

Second, the nature of volunteering is changing. Volunteers’ motivations and expectations have become more individualistic and ad-hoc and are less driven by long-term commitments. Moreover, contemporary volunteers increasingly expect their motivations and expectations to be met and are willing to leave the organizations if they do not perceive a good fit due to a mismatch between volunteer motives and volunteer tasks.

Thus, knowledge about how to attract, and most importantly, how to retain volunteers is even more important for nonprofit leaders.

Given these two challenges, researchers have proposed two main approaches to facilitate volunteer retention through a match of volunteer motives to volunteer tasks.

One approach — the functional perspective — argues that individuals with different reasons to volunteer might be willing to take on same types of tasks. The other approach — the diversified perspective — argues that only particular motives relate to individuals’ willingness to take on particular tasks as such that different tasks satisfy different volunteer motives.

For example, the functional perspective implies that volunteers are driven by motives such as altruistic values, professional career opportunities, and possibilities to spend time with friends and would be equally satisfied when given the task to lead a meeting, reorganize the filing cabinet, help others or organize a fundraising event. The diversified perspective on the other hand posits that individuals with a particular motive such as enhancing career opportunities will be satisfied when given a particular task such as leading a meeting, but less satisfied when given other tasks such as reorganizing the filing cabinet.

In an article that I co-authored (Willems & Walk, 2013), we shared our research that found that neither approach is sufficient and provided evidence for the importance of a combination of the functional and the diversified perspective.

In a research sample of youth volunteers, my co-author and I learned that most volunteers are satisfied if provided with the possibility to fulfill a broad and basic set of tasks. However, additionally, we identify four, more diversified, relationships between motives and tasks.

For those individuals with high expectations to express their personal altruistic values through volunteering, tasks related to administration, leadership, facility maintenance and fundraising were especially salient.
If volunteers aim to create or enhance professional career opportunities and are less motivated by the opportunity to be with friends, leadership tasks are most likely to fulfill their expectations.
Individuals who are not motivated by the creation of professional career opportunities are most satisfied when provided with administrative and facility maintenance tasks.
Finally, individuals who volunteer as a means to compensate for negative feelings or address personal problems are most satisfied if provided with tasks that can be done individually.

Ultimately, my co-author and I propose that effective volunteer management strategies could consist of a generalist base that guarantees the execution of a basic and broad set of volunteer tasks. However, in addition to that, nonprofit managers might want to pay attention to the motivational differences among specific groups of volunteers in order to be able to better match extreme variations of individual motives to volunteer tasks.

Marlene Walk is an assistant professor at the School of Public and Environmental Affairs at IUPUI and studies human resource and volunteer management in nonprofit organizations.

Sep 21

BKD Foundation’s 2014 charitable giving surpasses $10 million

By charitableadvisors Fundraising, Sponsor Insight

The BKD Foundation is the firm’s charitable arm. The BKD Foundation is solely funded by BKD partners’ and employees’ monetary contributions. It aims to enrich the communities BDK serves through financial donations and volunteerism. The foundation supports not-for-profit organizations of all types and sizes, including employees serving in volunteer roles.

Supporting youth organizations

While the BKD Foundation provided support to a number of Indiana organizations, it made significant contributions to causes that serve the state’s youth. Junior Achievement of Central Indiana, The Villages, Big Brother Big Sisters of Northeast Indiana and Boys & Girls Club of Evansville are just a few of the organizations that benefited from foundation dollars. But the support went beyond monetary, numerous employees also regularly volunteered.

Outside of youth-specific charities, the Indianapolis and Bloomington BKD offices continued its five-year donation commitment to the Eskenazi Health Foundation for its violence intervention program and to the Community Foundation of Bloomington and Monroe County, a nonprofit that supports local charities.

Indiana BKD employees personally went above and beyond with charity efforts by donating both money and time — to Habitat for Humanity homebuilding efforts, the Salvation Army Toy Town toy drive, the March of Dime and many more.

Surrounding communities

The Fort Wayne and Merrillville offices sponsored The Carriage House Dancing with the Fort Wayne Stars event. Several BKDers also volunteered to tabulate votes and help with event-related activities throughout the year.

In Evansville, the team chose to support Community One, a local nonprofit dedicated to housing restoration and community development needs.

To learn more about the foundation’s support, browse the digital version of the 2014 foundation report.

Sep 15

Leadership transition – Who’s up next?

By charitableadvisors Leadership, Sponsor Insight

By Bryan Orander, president, Charitable Advisors

For 15 years, research has warned of the unprecedented number of nonprofit executive directors/CEOs expected to change organizations, retire or leave the sector. In the original Daring to Lead study in 2001, two thirds of nonprofit executive directors did not believe in five years that they would still be with their current organization. Updates to this study in 2006 and 2011 found surprisingly similar results.

Though the recession definitely stalled those predicted leadership changes and retirements, nationally the nonprofit sector has begun to see these predicted changes. Recently, The Boston Globe reported on transitions in the Northeast, and in Central Indiana, every few weeks brings news of another executive who has set a date to move on to his or her next adventure or has given his or her board notice of an upcoming retirement.

Who is replacing those departing long-time executives?

In the past several years through my consulting work with nonprofits to help guide changes of leadership, I have seen these changes firsthand.

People often ask about these CEO/ED transitions. Typically, I approximate statistics based on my recent work; however, I thought it time to take a closer look.

To make the math easier, I took the last 25 leadership transitions and looked at some key factors. These go back approximately five years. The organizations have ranged in size from annual budgets of a few hundred thousand dollars to over $20 million and staff teams from three to more than 500. Most client organizations have been in the $1-10 million range.

Two qualifiers: Charitable Advisors is most often contracted for planned transitions and most of clients did not have internal candidates or potential successors that applied for the ED/CEO role.

Here is a quick snapshot.

Where did the CEO/ED go?

16 retirements = 64 percent
4 board terminations = 16 percent
3 CEOs took another job = 12 percent
2 new organizations, with no previous ED = 8 percent

Was the successor hired for the position an internal or external candidate?

20 external hires = 80 percent
5 internal hire/promotion = 20 percent (seven searches had internal candidates)

What is the background/sector of the successors?

10 program = 40 percent, including two from government
7 fund development/policy = 28 percent
4 CEO/ED from another nonprofit organization = 16 percent
4 corporate sector = 16 percent, three of the four had been

volunteers or board members for the organization that hired them

From these numbers, I think there are a few insights that can be drawn and useful to board members and senior staff looking to future leadership changes.

Internal successors are the exception because so few organizations have additional leaders with a broad organizational understanding and skill set. Of the 25 transitions, seven had internal candidates. Of those seven organizations, five selected the internal candidate as the next ED/CEO.
An organization’s next CEO/ED has probably not been a CEO before. Confirming national research, like Daring to Lead, most new ED/CEOs are coming from the leadership team of another nonprofit but were not in an ED/CEO role.
Few leaders make the jump directly from corporate America without having served as a board member or volunteer. Search committees look at a broad range of candidates, but are often most comfortable with people who fit the traditional nonprofit skill sets and culture.
A next leader is increasingly likely to bring a fund development background versus a programmatic background. Traditionally, the leaders of small to mid-sized nonprofits have come from the program ranks because the emphasis was on serving clients well. While that client emphasis continues, nonprofit boards are increasingly concerned with the leader’s ability to attract resources to grow and sustain the organization.

Your plan of action

Ensuring capable staff leadership is one of a nonprofit board’s most important roles. Whether the reason is retirement, illness, resignation, dismissal or transitions, the change can put your organization and the people you serve at risk.

Here are a few things that staff and board leadership can do over the next month or two, if you haven’t already, in preparation for an eventual transition.

Be prepared for the inevitable. In many organizations there is such a reliance on the CEO/ED so that when that person leaves or is terminated, the board feels uncertain about who is in charge and what comes next. A brief emergency succession conversation at an executive committee or board meeting every year is critical.

Charitable Advisors has developed a template that boards have found useful. For a copy of this easy-to-use emergency succession plan, please email me at: Bryan@CharitableAdvisors.com

Build your staff and management team. Every nonprofit should aspire to grow future leaders. The ideal circumstance is for an organization to have one or two viable internal candidates when it launches its search for a successor. However, most nonprofits are small and have few, if any, managers except the CEO/ED. Even larger nonprofits have a management team composed of specialists in finance, programming, fund development or human resources, and often lack the organizational-wide perspective of the CEO/ED. So you may not have internal candidates without an intentional development effort to broaden individual leadership experience.

CEO/ED sets the tone in developing leaders. The current CEO/ED and how he or she works with the staff team sets the stage for the next generation of organizational leadership. A CEO with a controlling style is less likely to develop strong leaders as potential successors either because those people aren’t hired, they leave or they are never groomed for more responsibility. Growing your team prepares for the future and can make the ED/CEO’s job easier by spreading the load.

Bryan Orander is founder and president of Charitable Advisors. After 18 years of for-profit leadership in the Fortune 50 business world and a disability-related nonprofit, Bryan joined a large regional accounting and consulting firm. In 2000, he founded Charitable Advisors with the vision of going beyond traditional consulting to become a connector, advocate and problem solver for the nonprofit sector.

Sep 08

Tips for Overcoming Growing Pains

By charitableadvisors Sponsor Insight

By Allie Petty-Stone

Like most nonprofits, you want to make the world a better place. With each positive result you gain, the more positive results you want to achieve.

However, as your achievements grow so will your organization. Are you prepared for this growth?

Growth is exciting, yet challenging, for both nonprofit and for-profit organizations. During the last few years, Alerding CPA Group has experienced significant growth, most recently through a merger. We have learned a lot in the process and thought your organization would benefit from the insights we have attained.

Our growth has demanded that we recruit and cultivate a strong team of leaders and client advisors. Internally, we have strategized about what practices have kept us strong and vital and which should be halted. Our common goal is preserving and enhancing exceptional service to our clients, while keeping our staff engaged and challenged.

If your organization is in the process of growth, it is best to keep these following tips in mind:

(1) Recruiting – Define the attributes that are truly needed beyond a boilerplate job description. Consider what WAS required and what is essential for the position(s). Job descriptions are a starting point, but what other characteristics do you desire in a candidate that would better serve the position. I personally find beginning anew the most exciting aspect of the career journey and am pleased to work with and welcome talented members to our staff.

(2) Orientation/training – Consider the immediate training needs of new staff members, especially entry level. Great managers are engaged with their staff and can identify what training tools they need NOW and in the future. It is best to cultivate their curiosity and to inspire staff to evolve in their current roles while visualizing what career possibilities lie ahead for them; it is best to note a staff member’s strengths. Once objectives are achieved, an employee may become bored and seek a purpose elsewhere. If he or she shows strength in IT processes, get him involved in those functions for his team or department.

(3) Leadership influence – Great leaders, no matter what their positions, share the company’s vision and values and live by them. They are constantly engaged in the day-to-day business and client relations. Eventually, employees take notice of this dedication and will buy-in and support this vision if they believe these core values are authentic. To this day, I can give you the name of every mentor who inspired me and how I wanted to mimic them.

(4) Team collaboration – There is nothing better than having new ideas infused in a conversation of what the department/organization is currently doing and how it can be improved. It provides the opportunity to constructively pave new paths. Business building takes work. I love getting feedback from a staff member that improves a documentation process. It means (a) he or she is taking notice; (b) he or she cares about my work; and (c) this staff member wants the firm to perform better overall.

(5) Problem solving – One of my favorites. If a staff member has questions or concerns, it is important to ask in-person or make a phone call. Step outside simply sending an email and become accustomed to engaging in conversation. It is important to encourage problem solving. One of my favorite “mom-isms” is “You can’t come to me with a problem if you can’t offer a solution.”

(6) Humor and creativity – Add some humor and creative thinking to get around difficult issues. Regardless of generational or cultural differences, most people have a desire to make things better. Assist your staff with a smile and help diffuse concerns quickly. Never ignore problems or they can fester.

Growth can be overwhelming, so let’s also be realistic. We are fallible. Errors are made. Assumptions can be incorrect. The sooner you “right” the “wrong,” the better. Be accountable. Be forgiving. Be strong. Learn through mistakes and be the best version of a leader that you can imagine. Make it your daily mantra and your legacy. Your staff will be proud to work for you and your clients will appreciate doing business with you.

To find out how Alerding CPA Group may be of service to you, contact at 317-569-4181 or visit its website www.alerdingcpagroup.com.

Allie Petty-Stone is the firm administrator for Alerding CPA Group, an Indianapolis-based public accounting firm. She has 20 years experience in business operations.

Aug 31

Effect of proposed overtime rule changes

By charitableadvisors Sponsor Insight

By Jeremy York, HR Field Representative, Synergy

In June, the Department of Labor (DOL) announced proposed changes to the Fair Labor Standards Act, which outlines overtime exemptions for white-collar workers.

The proposed changes would extend overtime protections to nearly five million workers within its first year of implementation, making many positions that are currently considered overtime exempt under the act, nonexempt and eligible for overtime.

Last year, for example, staff members of a Downtown nonprofit each worked an average of 55 hours a week with annual salaries of $40,000. This organization has 35 employees. Under the changes, this nonprofit’s staffing budget would rise approximately 56 percent, an additional $22,500 in overtime for each staff member or a total of more than $787,500.

This proposed change could be a costly one for employers, especially nonprofits that already operate on slim budgets.

One of the proposed changes to the current law includes raising the salary minimum of exempt status from its current $455 per week ($23,660 per year) to $970 per week (50,440 per year). This means that under the proposed changes that in most all cases an employee would need to earn at least $50,440 per year to qualify for exempt status and ineligible for overtime.

Exceptions to this would include outside sales, teachers, doctors and lawyers. However, for most general business positions this ruling would apply.

Another proposed change is related to the performance of the primary duties of the job. Currently, there is no specific time an employee has to spend performing the primary duties of his or her job to qualify as exempt — it is to be used as a guide but it is not determinative. The proposed rule specifies that an employee must spend 50 percent or more of his or her time performing the primary duties of the job in order to qualify for the overtime exemption. This is a rule currently in place in California and the DOL seeks to adopt it.

There are many other proposed rule changes but the above are just a couple that are sparking attention.

You can view the detailed rule change proposal at http://www.dol.gov/whd/overtime/NPRM2015/OT-NPRM.pdf.

The good news is that the DOL is seeking feedback on its proposed changes during the current public comment period through September 2015. Once the comment period ends, the DOL will review all feedback and work to finalize changes.

Based on historical decision-making data, we can expect to see final rules around second quarter of 2016.

In the meantime, employers should stay up to date on developments regarding the proposed changes and evaluate its workforce.

Currently, Synergy is working with its clients to plan ahead by:

Understanding how these changes may impact company culture and employee morale.
Encouraging FLSA audits to identify the impacted with the proposed changes.
Developing actions plans on how to implement changes when they occur.
Identifying methods to reduce overtime for those roles that were previously exempt from it.

Thankfully, these are just proposed rule changes at this time but the DOL is very clear that changes will be made.

Unfortunately the specific changes won’t be known until sometime next year.

Jeremy York, SPHR, SHRM-SCP, is a Human Resources Field Representative for Synergy PEO Services. With over 15 years experience, he provides strategic and generalist HR support to local nonprofit organization leaders and their staffs. Jeremy has a bachelor’s degree from Purdue University in Organizational Leadership and Supervision and a master’s degree from Indiana Wesleyan University in Management. He is the current director of certification for the Indiana State Council of the Society for Human Resource Management (SHRM) and serves on the IndySHRM board of directors as the past president.

Aug 24

University’s intense training, develops nonprofit leaders

By charitableadvisors Leadership, Sponsor Insight

By Michael L. Jackson, director of marketing and communications, Indiana University School of Public and Environmental Affairs in Indianapolis

In the complex world of nonprofit management, today’s leaders must possess a unique set of skills in order to navigate the industry’s challenging landscape. Whether it’s working with board members, leading a group of volunteers, or competing for fundraising dollars, those charged with running the organization need a broad array of skills.

The Executive Education division of the Indiana University School of Public and Environmental Affairs (SPEA) partners with The Fundraising School at the Lilly Family School of Philanthropy to provide leaders with the critical tools needed to run a successful nonprofit. Through the Certificate in Nonprofit Leadership program, the two schools have developed a four-course program that delivers intense training for real-world impact.

“Leadership of nonprofit organizations is pretty unique,” said Sara Johnson, director of Executive Education at SPEA. “One of the things considered when putting this program together was, “What specific skills like developing and assessing a nonprofit board of directors, do these executives need to have in order to lead that type of organization?’”

Classes in the certificate program are offered throughout the year and can be completed in person or online. In-person classes are held over two days (a Friday and Saturday) on the Indiana University-Purdue University Indianapolis campus. Online courses are completed during a four-week period.

The four seminars – Financial Analysis for Nonprofit Leaders, Nonprofit Management for the 21^st Century, Program Evaluation for Mission Impact, and Strategic Planning and Nonprofit Leadership – are offered on a rolling basis and do not require prerequisites, giving students the flexibility to begin the program at their convenience.

“While someone could do the course work entirely online, we generally recommend that they complete at least two of the courses in the classroom setting,” Johnson said. “This program brings in participants from all across the country, and that opportunity to network and collaborate face-to-face has a big impact on the experience.”

One of Johnson’s favorite seminars is the strategic planning session where students learn to understand their own management style, which, she says, is vital when trying to develop a nonprofit board of directors.

“CEOs have to develop the acumen for developing their own boards and how to make sure they’re doing a board assessment and doing the things that make good boards,” Johnson said. “Understanding your management style helps you to be more effective with the board. If you go into a strategic planning session and you are aware of your own approach or own belief system, chances are you’ll make better progress and have greater outcomes.”

To learn more about the Certificate in Nonprofit Leadership, contact Sara Johnson or download The Fundraising School’s 2015 course directory.

Michael L. Jackson is director of marketing and communications at the Indiana University School of Public and Environmental Affairs (SPEA) at IUPUI. Jackson joined SPEA from the Kelley School of Business at IUPUI after a 20-year newspaper career. He received his MBA in Marketing from Butler University.

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Who is replacing those departing long-time executives? In the past several years through my consulting work with nonprofits to help guide changes of leadership, I have seen these changes firsthand.

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Who is replacing those departing long-time executives?

In the past several years through my consulting work with nonprofits to help guide changes of leadership, I have seen these changes firsthand.