United Ways of Texas - Frequently Asked Questions

Internet Tools and Tips

Electronic mail or email is an inexpensive way to send written messages to anyone with an email address. Using email is an excellent way to provide customer services, such as answering questions and disseminating information without tying up phone lines or sticking to an eight to five timeframe for exchanging information. Having an email address gives the public, staff, and volunteers an additional medium in which to contact you or your organization.

Using an email newsletter is an efficient way to get information out to members and supporters, saving money on printing costs and postage.

An excellent website, Everything E-Mail, provides various resources pertaining to email use. The website can be accessed at
http://everythingemail.net/email_help_tips.html.

Sources

Calvin, J. Duif.  Marketing Manager’s Plain English Internet Glossary.  (2000) CA: Jade River Designs.  Retrieved April 25, 2001, from the World Wide Web:
http://www.jaderiver.com/glossary.htm

E-Mail Help and Tips Everything E-Mail.  (1999) Ipswich, MA: Internet Mail Services Network, Inc.  Retrieved April 25, 2001, from the World Wide Web: http://everythingemail.net/email_help_tips.html

Landesman, Cliff.  Nonprofits and the World Wide Web.  (2000) Seattle, WA: The Internet Nonprofit Center.  Retrieved April 25, 2001, from the World Wide Web: http://www.nonprofits.org/lib/website.html

Stein, Michael.  How can an email newsletter supplement our nonprofit web site?  (2001) CA: Nonprofit Genie.  Retrieved April 25, 2001, from the World Wide Web: http://search.genie.org/genie/action.lasso?-database=genie_faqs.fp3&-layout=Layout1&-format=ans_detail.htm&category=Internet&question=&answer=
&-maxrecords=1&-SkipRecords=7&-Sortfield=category&-Sortfield=faqID&-Find

On Line Discussions
What is a Listserv?

Listservs are email discussion groups focused around a given topic. People use listservs to communicate with others by posting messages or responding to someone else's message. Listservs can be utilized by organizations to notify their members of meetings and upcoming events; and people can exchange information and discuss common concerns. Using an email address anyone can join a listserv by subscribing. To learn how to subscribe to a listserv check out CharityVilliage.com's website at http://www.charityvillage.com/charityvillage/net101d.html.

Charity Village.com has a website that lists hundreds of listservs, including one for the United Way of America: http://www.charityvillage.com/charityvillage/stand1.html.

Sources

E-mail Discussion Lists.  (2000) CharityVillage Ltd.  Retrieved April 25, 2001, from the World Wide Web:  http://www.charityvillage.com/charityvillage/stand1.html

Discussing Nonprofit Issues Online. (2000) CharityVillage Ltd.  Retrieved April 25, 2001, from the World Wide Web:
 http://www.charityvillage.com/charityvillage/net101d.html

Listserve.com.  (1999) Lorton, VA: Look.net, LLC.  Retrieved April 25, 2001, from the World Wide Web:
http://www.listserve.com/

McNamara, Carter.  Finding and Using On-Line Discussion Groups.  (1999) St. Paul, MN: Management Assistance Program for Nonprofits.  Retrieved April 25, 20001, from the World Wide Web:
http://www.mapnp.org/library/gen_rsrc/newsgrps/newsgrps.htm

Etiquette on the Internet - Netiquette
What are some basic rules of email etiquette?

• Avoid writing in all upper case letters for it is considered SHOUTING.
• To add a personal touch many people use smileys (also called emoticons), which are used to note many types of expressions. It is recommended for personal emails rather than for business. Some of the more common ones are :-) Happy :- ( Sad :-o Surprised
• It's helpful to those receiving your email to summarize the content of your message in the subject line.
• Read over your email and use the spell check feature before you send it off.

What are some additions rules for Listserv etiquette?

• It's good practice to "sign" your message including such information as your name, the organization you represent, the web address of your organization's web site, and your email address.
• Don't post unrelated comments, advertisements, or chain letters to the listserve.

Please consult the following sources for further reference on netiquette.

Sources

Etiquette for soc.org.nonprofit and NONPROFIT.  (1998, July 30)  Seattle, WA: The Internet Nonprofit Center.  Retrieved April 25, 2001, from the World Wide Web:
http://www.nonprofits.org/npofaq/15/11.html

Master the Basics: Netiquette.  (n.d.) About.com.  Retrieved April 25, 2001, from the World Wide Web:
http://netforbeginners.about.com/internet/netforbeginners/gi/dynamic/offsite.htm?site=http%3A%2F%2Flearnthenet.com%2Fenglish%2Fhtml%2F09netiqt.htm

Spinner and Rayer’s Guide to Nettiquette.  (1997) PCs for Families Program.  Retrieved April 24, 2001, from the World Wide Web:
http://pixel.cs.vt.e du/class1/spinners/InternetSpeak/nettiquette.html

UNITED WAY MEMBER ORGANIZATIONS FAQ's

In a similar fashion to local United Way organizations, UWA is governed by a board of volunteers. The 45 member board includes 15 representatives from local United Ways. According to the official UWA website, the UWA includes 11 "board level" committees; half of the members of these committees are nominated by local United Ways. The committees are: Community Impact, Compensation and Human Resources, Diversity, Executive, Ethics, Finance and Budget, Marketing, Membership, Nominating, Public Policy, and Resource Development.

United Way of America. United Way of America. (n.d.): Alexandria, VA: United Way of America. Retrieved April 24, 2001, from the World Wide Web:
 http://national.unitedway.org/uwa.cfm

The UWA national service center is located at the following address:

The "Contact Us" section of the UWA Website enables site users to submit email questions under six different subject headings: Corporate Campaigns, Community Campaigns, Communications Department, Publishing Department, UWA Internal Human Resources, and Other. These forms for submitting email questions can be accessed at http://national.unitedway.org/webmastr.cfm

Sources

United Way of America. Comments to the Webmaster. (n.d.): Alexandria, VA: United Way of America. Retrieved April 24, 2001, from the World Wide Web:
http://national.unitedway.org/webmastr.cfm

United Way of America. Basic Facts About United Way. (n.d.): Alexandria, VA: United Way of America. Retrieved April 24, 2001, from the World Wide Web.
http://national.unitedway.org/bfact.cfm

How does the UWA help my local United Ways of Texas organization?

UWA does not provide financial assistance to participating member organizations. However, they do assist member groups in many other ways. UWA assists local United Way organizations by performing the following functions:

• Running a national advertising and promotional campaign.
• Coordinating a partnership with the National Football League.
• Providing training for United Way staff and volunteers.
• Supporting national companies that seek to establish ongoing relationships with United Ways.
• Running a national network allowing United Ways to share best practices and other information, much of it through their website.
• Providing a unified voice in national government relations.

In addition, The UWA serves as a storehouse of information for United Ways to improve the level of service they provide to their community. Most information is made available free of charge through the UWA website, but some products in other formats (pamphlets, books, videos, etc.) are available at low costs and can be ordered through the site. Among the many types of information provided are the following:

• Tax forms and information needed for running a nonprofit business.
• A free online version of the United Way 1999 Annual Report, which includes a detailed list of the national grants administered by UWA and application information.
• Details on the UWA's fund distribution program, which provides local United Ways with assistance in the development of effective methods of distributing funds.
• Description of the community building assistance provided by UWA, which includes consultation, training, and the distribution of publications to United Ways.
• Community Magazine, a free online "Journal of Community Building for Community Leaders."
• The Outcome Measurement Resource Network, which provides links to free publications and ordering information for other formats (including videos and multimedia kits) designed to assist local United Ways measure their programs effectively.
• The United Way State of Caring Index, a massive study conducted by UWA to measure the quality of life at the national and state level based on 32 indicators. The Index contains a wealth of statistical information on the social and economic well being in each state from 1988 to the present on six major topic areas: economy and financial well being; health; education; volunteerism/charity/civic engagement; safety; and natural environment. The Index is available through the UWA website.

Sources

United Way of America. United Way of America’s Form 990. (n.d.): Alexandria, VA: United Way of America. Retrieved April 24, 2001 from the World Wide Web: http://national.unitedway.org/x990.cfm

United Way of America. United Way of America’s 1999 Annual Report. (n.d.): Alexandria, VA: United Way of America. Retrieved April 24, 2001 from the World Wide Web: http://national.unitedway.org/annrpt_1999.cfm

United Way of America: Community Impact: Fund Distribution Program. (n.d.): Alexandria, VA: United Way of America. Retrieved April 24, 2001 from the World Wide Web: http://national.unitedway.org/funddist.cfm

United Way of America: Community Building. (n.d.): Alexandria, VA: United Way of America. Retrieved April 24, 2001 from the World Wide Web: http://national.unitedway.org/cmtybldg.cfm

United Way of America: Community Magazine. (n.d.): Alexandria, VA: United Way of America. Retrieved April 24, 2001 from the World Wide Web: http://national.unitedway.org/commags.cfm

United Way of America: State of Caring Index. (2000, November): Alexandria, VA: United Way of America. Retrieved April 24, 2001 from the World Wide Web: http://unitedway.org/stateofcaring/index.cfm

Nonprofit Management FAQ

Board development

In order to be incorporated as a nonprofit, organizations must have a governing board. This board works with the staff of the nonprofit to help the organization run smoothly and provide the services for which it was granted nonprofit status. The board serves two overarching functions: supporting the organization and governing the organization. In its supportive role the board raises money, provides special skills (e.g. law or accounting), serves as a liaison to community groups and promotes the organization. In its governance role the board holds the organization accountable to its stakeholders, particularly the communities it serves. Boards often select the organization's top executive, they asses his or her performance, review plans and budgets, ensure compliance with legal requirements and evaluate the organization's work. While board members may be chosen because they can bring the board a particular viewpoint or represent the perspective of a segment of the organization's constituency it is the responsibility of each member to vote in the best interest of the organization. In crisis situations board responsibilities are extended. In holding the organization accountable to public interest boards must respond to difficult questions and sort out problems, dealing with unhappy constituents.

In order to contribute to the success and health of the organization board members need accurate and complete information. This requires data from the organization, but board members must also have resources independent of the organization. They may consult funders, staff, colleagues in the field and members of other boards. If they are unfamiliar with the field they may need current information about trends and specific issues. Having independent and diverse sources of information is crucial to the functionality of boards.

Sources

About.com. Information about Boards of Directors. (n.d.): About.com. Retrieved April 24, 2001, from the World Wide Web: http://nonprofit.about.com/careers/nonprofit/cs/helpforboards/index.htm

How do we keep board members informed? (n.d.): National Center for Nonprofit Boards. Retrieved April 20, 2001, from the World Wide Web:
http://www.ncnb.org/askncnb/faq4_5.htm#faq5

McNamara, Carter. Overview of Roles and Responsibilities of Corporate Board of Directors. (n.d.) St. Paul, MN: Management Assistance Program for Nonprofits (Free Library). Retrieved April 24, 2001, from the World Wide Web:
http://www.mapnp.org/library/boards/brdrspon.htm

McNamara, Carter. Board and Staff Responsibilities. (n.d.) St. Paul, MN: Management Assistance Program for Nonprofits (Free Library). Retrieved April 24, 2001, from the World Wide Web:
http://www.mapnp.org/library/boards/brdvsstf.htm

What are the basic responsibilities of nonprofit boards? (n.d.): National Center for Nonprofit Boards. Retrieved April 20, 2001, from the World Wide Web: http://www.ncnb.org/askncnb/faq9_11.htm

What is the role of governance? (1999) CA: Non-profit Genie. Retrieved April 24, 2001, from the World Wide Web:
http://search.genie.org/genie/ans_result.lasso?cat=Board+development

What is the role of governance in planning and budgeting? (1999) CA: Non-profit Genie. Retrieved April 24, 2001, from the World Wide Web: http://search.genie.org/genie/ans_result.lasso?cat=Board+development

Why don’t boards govern all the time? (1999) CA: Non-profit Genie. Retrieved April 24, 2001, from the World Wide Web: http://search.genie.org/genie/ans_result.lasso?cat=Board+development

Strategic planning

Strategic planning is a management tool to improve the performance of an organization. It is a process through which an organization agrees on essential priorities and builds commitment to those priorities among all constituencies. The process of strategic planning identifies where an organization is going, how it's going to get there, and how it will evaluate its progress. The components of strategic planning usually include an analysis of environmental influences and SWOT factors (strengths, weaknesses, opportunities and threats of/to the organization); identification of organizational mission, vision and values; establishment of goals and strategies; development of objectives, tactics, budget and timelines; assignment of responsibilities and tasks; and creation of evaluation standards and mechanisms. The process of strategic planning is more important than the strategic plan document that is developed. It requires the organization to clarify mission and objectives, recognize resources and limitations, envision future challenges and consciously choose between different responses to possible situations. It is a deliberate progression of questions and answers, using information gathered from within the organization and from independent sources. It emphasizes building commitment among all segments of the organization by involving all constituents in the planning process and creating consensus. Strategic planning enables an organization to be intentional and strategic rather than reactive and opportunistic.

Sources

Strategic Planning (in nonprofit and for-profit organizations). (n.d.) St. Paul, MN: Management Assistance Program for Nonprofits (Free Library). Retrieved April 24, 2001, from the World Wide Web:
http://www.mapnp.org/library/plan_dec/str_plan/str_plan.htm

What are the individual roles in a planning process? (n.d.): Alliance for Nonprofit Management. Retrieved April 24, 2001, from the World Wide Web:
http://www.allianceonline.org/faqs.html

What is strategic planning? (1999) San Francisco, CA: Internet Nonprofit Center. Retrieved April 24, 2001, from the World Wide Web:
http://www.nonprofit-info.org/npofaq/03/22.html

What is strategic planning? (1999) CA: Non-profit Genie. Retrieved April 24, 2001, from the World Wide Web:
http://search.genie.org/genie/ans_result.lasso?cat=Strategic+Planning

Why plan? (1999) CA: Non-profit Genie. Retrieved April 24, 2001, from the World Wide Web:
http://search.genie.org/genie/ans_result.lasso?cat=Strategic+Planning

Volunteer management

Many nonprofit organizations rely on volunteers to perform jobs crucial to the organization's mission. In order to utilize volunteers to their full potential organizations need to be very clear about what tasks are appropriate for volunteers and what tasks are the domain of paid staff. Organizations should also develop and document policies to explain procedures and responsibilities and to delineate lines of communication and accountability. This can ensure continuity and clarify expectations. Such policies should make it easier for paid staff to manage volunteers and allow volunteers to work with increased autonomy.

When recruiting it is important for volunteer managers to be honest about volunteer expectations and clear about time and resource requirements. A screening process to identify skills, expectations and needs and to understand potential volunteers' motivations can be invaluable for both the potential volunteer and the volunteer manager. Screening processes enable managers to match volunteers to tasks, ensuring greater volunteer satisfaction and productivity. It is also important that volunteer managers provide ongoing recognition. Recognizing that volunteers play a vital part in the organization through announcements, parties and awards motivates volunteers. Public recognition of volunteers can also serve a secondary purpose of recruiting new volunteers. Providing accurate information to potential volunteers, maintaining open lines of communication between volunteers and paid staff, providing volunteers with meaningful tasks and recognizing the valuable contribution of volunteers to the organization will allow organizations to recruit and retain volunteers.

Sources

About.com. Information for Volunteers. (n.d.): About.com. Retrieved April 24, 2001, from the World Wide Web:
http://nonprofit.about.com/careers/nonprofit/cs/volunteerinfo/index.htm

Retaining Volunteers. (2000) Seattle, WA: Court Appointed Special Advocates (CASA). Retrieved April 24, 2001, from the World Wide Web.
http://www.casanet.org/program-management/volunteer-manage/retentn.htm

Managing Volunteer Programs. (n.d.) St. Paul, MN: Management Assistance Program for Nonprofits (Free Library).  Retrieved April 24, 2001, from the World Wide Web:
http://www.mapnp.org/library/staffing/outsrcng/volnteer/volnteer.htm

 How do I build a stronger volunteer/staff partnership? (1999) CA: Non-profit Genie. Retrieved April 24, 2001, from the World Wide Web: http://search.genie.org/genie/ans_result.lasso?cat=Volunteer+Management

How do I develop creative volunteer roles? (1999) CA: Non-profit Genie. Retrieved April 24, 2001, from the World Wide Web: http://search.genie.org/genie/ans_result.lasso?cat=Volunteer+Management

Volunteer Management/Service Leadership Online Resources. (2000) Austin, TX: Service Leader. Retrieved April 24, 2001, from the World Wide Web:
http://serviceleader.org/manage/

Nonprofit Financial Management

The basic aspects of nonprofit financial management include planning and designing a budget, accounting, bookkeeping, and managing cash flow. Financial management also involves financial analysis, audits and internal control procedures. It is important for nonprofit managers to have basic skill in financial management. The basic skills of financial management begin with cash management and bookkeeping. It is also important to further develop the skills needed to generate and analyze financial statements. The Minnesota Council of Nonprofits provides the following outline of financial management practices:

1. Financial Accountability
   1. A nonprofit should operate in accordance with an annual budget that has been approved by the board prior to the beginning of each fiscal year.
   2. A nonprofit should create and maintain financial reports on a timely (at least quarterly) basis, accurately reflecting the financial activity of the organization, including the comparison of actual to budgeted revenue and expense.
   3. A nonprofit with annual total revenues in excess of $350,000 should subject its financial reports to an annual audit by a Certified Public Accountant (MN Law). A nonprofit under this threshold, or excepted by law, should have a CPA provide a review of its finances to the board annually.
   4. Quarterly financial statements should be provided to the board of directors. The statements should identify and explain any significant variation between actual and budgeted revenues and expenses.
   5. A nonprofit should provide employees and volunteers with a confidential means to report suspected financial impropriety or misuse of organization resources.
   6. A nonprofit should have written financial policies governing the following matters, where appropriate: (a) investment of the assets of the organization; (b) internal control procedures; (c) purchasing practices; (d) reserve funds; (e) compensation, including salary and benefits; (f) expense account reporting; and (g) earned income.
   7. A nonprofit may budget for a deficit from time to time but should not incur persistent or increasing operating deficits.
2. External Financial Arrangements
   1. A nonprofit, with board approval and full knowledge of its legal obligations and liabilities, may undertake responsibility of serving as a fiscal agent for another organization with a related mission and should review this relationship annually.
   2. Any subsidiary that a nonprofit establishes should be in the direct furtherance of the mission of the organization.

Sources

McNamara, Carter. Basic Guide to Non-Profit Financial Management. (1999) St. Paul, MN: Management Assistance Program for Nonprofits (Free Library).  Retrieved April 21, 2001, from the World Wide Web:
http://www.mapnp.org/library/finance/np_fnce/np_fnce.htm

Principles and Practices for Nonprofit Excellence. (1998, October 5) St. Paul, MN: Minnesota Council of Nonprofits. Retrieved April 21, 2001, from the World Wide Web:
http://www.mncn.org/pnp_doc.htm

Nonprofits must design a budget at least once a year, and sometimes more often. The complexity of the budget depends upon the size of the organization. The larger your organization, the longer it will take to construct and will require the input of other people, such as, department heads and the fundraising staff. Budgets are necessary for numerous reasons. First, they are necessary to gauge the organization's progress and to help make decisions about what can and cannot be done. Second, the board of directors would probably like to see one. Third, budgets are necessary when applying for grants. A budget is a plan that estimates how much your programs will cost and how they will be funded. Since budgets are subject to changing environments it is useful to prepare three budgets: best case probable case and worst-case scenario. It is useful to look at last year's income and expenses when designing a budget. The Women's Economic Self-Sufficiency Team offers the following tips for designing a budget:

1. Your budget is a "financial picture" of your business plan. You can't prepare a budget without a good plan - and preparing your budget will help you identify any weaknesses in your plan.
2. You may need to evaluate a number of alternatives ... it is an iterative process, so once you settle on your final budget, make sure it is consistent with your business plan.
3. Breaking down expenses between fixed and variable can help you analyze your profits and make better decisions about alternatives.
4. Compare actual results to your budget on a regular basis (at least quarterly, although monthly is recommended). Go through your Profit and Loss statement and make sure you understand any differences.

Sources

About.com. Nonprofit Budgeting. (n.d.): About.com. Retrieved April 21, 2001, from the World Wide Web: http://nonprofit.about.com/careers/nonprofit/library/weekly/aa052098.htm

Women's Economic Self-Sufficiency Team. Budgeting in a Small Business. (1997, March): U.S. Small Business Administration. Retrieved April 21, 2001, from the World Wide Web:
http://www.onlinewbc.gov/docs/finance/budget1.html#basics

Accounting is the method in which financial information is gathered, processed, and summarized into financial statements and reports. (CCH Incorporated) The goals of accounting are to ensure that financial data and economic transactions are accurately recorded so that it will be possible to generate the financial reports necessary for management planning and decision making. Small nonprofits often hire a bookkeeper on an hourly basis to maintain their books. It typically requires only a few hours each month to make the necessary entries and prepare a financial statement. Inexpensive software programs also are available but unless you have a basic understanding of bookkeeping, using a software program can be difficult. For tips on selecting a software package refer to the Non-profit Genie's FAQ "What accounting software package should we buy?" at: http://search.genie.org/genie/ans_result.lasso?cat=Financial+Management.

CCH Incorporated, creator of the Business Owner's Toolkit, provides the following outline of the accounting process:

The Business Transaction

1. Every accounting entry is based on a business transaction, which is usually evidenced by a business document, such as a check or invoice.
   
   The Journal Entry
   
2. A journal is a place to record the transactions of a business. The typical journals used to record the chronological, day-to-day transactions are sales and cash receipts journals and a cash disbursements journal. A general journal is used to record special entries at the end of an accounting period.
   
   The General Ledger
   
3. While a journal records transactions as they happen, a ledger groups transactions according to their type, based on the accounts they affect. The general ledger is a collection of all balance sheet, income, and expense accounts used to keep a business's accounting records. At the end of an accounting period, all journal entries are summarized and transferred to the general ledger accounts. This procedure is called "posting."
   
   The Trial Balance
   
4. A trial balance is prepared at the end of an accounting period by adding up all the account balances in your general ledger. The sum of the debit balances should equal the sum of the credit balances. If total debits don't equal total credits, you must track down the errors.
   
   The Financial Statement
   
5. Finally, financial statements are prepared from the information in your trial balance.

Sources

About.com. Basic Bookkeeping for Small Nonprofits. (n.d.): About.com. Retrieved April 21, 2001, from the World Wide Web: http://nonprofit.about.com/careers/nonprofit/library/weekly/aa031501b.htm

CCH Incorporated. The Accounting System. (2001) IL: Business Owner’s Toolkit: Total Know How for Small Businesses. Retrieved April 21, 2001, from the World Wide Web:
http://www.toolkit.cch.com/text/P06_1300.asp

What are the Elements of an Accounting System? (1999) CA: Non-profit Genie. Retrieved April 21, 2001, from the World Wide Web:
http://search.genie.org/genie/ans_result.lasso?cat=Financial+Management

Cash management
What is cash flow?
Cash flow refers to the flow of cash into and out of an organization over a period of time. Watching the cash inflows and outflows is a major management task. Since revenue sources are inconsistent at times, it is important to have cash come in at the right times, so that it is available to flow out when expenses are due to paid. In order to properly manage your organization's finances, it is important to create a cash flow projection. For tips on creating a cash flow projection, refer to the Nonprofit Genie's FAQ "What is cash flow and how should we manage it?" at: http://search.genie.org/genie/ans_result.lasso?cat=Financial+Management

How do I practice good cash management?
The Women's Economic Self-Sufficiency Team offers the following advice on practicing good cash management:

1. Know when, where, and how your cash needs will occur.
2. Know what the best sources are for meeting additional cash needs.
3. Be prepared to meet these needs when they occur, by keeping good relationships with bankers and other creditors.
4. Prepare a cash flow projection.

Sources

About.com. Basic Bookkeeping for Small Nonprofits. (2001): About.com. Retrieved April 21, 2001, from the World Wide Web:
http://nonprofit.about.com/careers/nonprofit/library/weekly/aa031501b.htm

What is cash flow and how should we manage it? (1999) CA: Non-profit Genie. Retrieved April 21, 2001, from the World Wide Web:
http://search.genie.org/genie/ans_result.lasso?cat=Financial+Management

Women's Economic Self-Sufficiency Team, Women's Initiative for Self Employment, and Charlotte Taylor, Venture Concepts, in association with New Jersey Association of Women Business Owners, Inc. The Importance of Cash Management. (1997, June): U.S. Small Business Administration. Retrieved April 21, 2001, from the World Wide Web:
http://www.onlinewbc.gov/docs/finance/cash.html

Internal control is defined as the process that is carried out by an entity's board of directors, management, and other personnel for the purpose of gaining reasonable assurance of achieving objectives in three broad areas relating to-

1. Effectiveness and efficiency of operations. An entity's basic business objectives, including performance and profitability and safeguarding of resources;
2. Financial reporting. The reliability of published financial statements, including, where applicable, interim and condensed financial statements and financial data selected from same; and
3. Compliance. Compliance with laws and regulations to which the entity is subject. (Treadway Commission)

According to the Treadway Commission, five interrelated components comprise internal control:

Control Environment
1. The control environment defines the tone of an organization and the way it operates. As such, it is the foundation for all other components of internal control, providing both discipline and structure. Organizations with effective control environments set a positive "tone at the top," hire and retain competent people, and foster integrity and control consciousness. They set formalized and clearly communicated policies and procedures, resulting in shared values and teamwork.
   Risk Assessment
   
2. Risk assessment is the process through which management decides how it will deal with the risks that pose a threat to achieving its objectives. This exercise entails identifying risks and analyzing their likelihood and impact.
   Control Activities
   
3. Control activities are the policies and procedures put in place to assure management's directives are carried out.
   Information and Communication
   
4. Systems for capturing and communicating relevant information in a timely manner are an essential component of the internal control process. These systems are essential to running an enterprise because they produce reports containing operational, financial, and compliance information. They contain internally generated data as well as information about external events, developments, and conditions required for informed decisions.
   Monitoring
   
5. The rapid pace and rate of change requires evaluating all systems - and particularly, internal control systems - to ensure that they are performing as intended. Such monitoring can be accomplished in two ways: through ongoing monitoring, which occurs during normal operations, and separate evaluations by management, often with the assistance of the internal audit function.

Internal accounting control is a series of procedures designed to promote and protect sound management practices, both general and financial. Following internal accounting control procedures will significantly increase the likelihood that:

• financial information is reliable, so that managers and the board can depend on accurate information to make programmatic and other decisions;
• assets and records of the organization are not stolen, misused, or accidentally destroyed;
• the organization s policies are followed;
• and government regulations are met. (Non-profit Genie)

Price Waterhouse's booklet, Effective Internal Accounting Control for Nonprofit Organizations: A Guide for Directors and Management, considers the following areas in developing an effective internal accounting control system:

• Cash receipts
• Cash disbursements
• Petty cash
• Payroll
• Grants, gifts, and bequests
• Fixed assets

SOURCES

Effective Internal Accounting Control For Nonprofit Organization: A Guide for Director’s and Management (booklet) (1988): PriceWaterhouse. 

Steinberg, Richard M. Internal control - integrated framework: a landmark study. (1993, June): The CPA Journal Online. Retrieved April 21, 2001, from the World Wide Web:
http://www.nysscpa.org/cpajournal/old/14465853.htm

Tate, David W. Internal Control. (n.d.) About.com. Retrieved April 21, 2001, from the World Wide Web: http://entrepreneurs.about.com/smallbusiness/entrepreneurs/gi/dynamic/offsite.htm?site=http%3A%2F%2Fhome1.gte.net%2Ftateatty%2Fic.htm

What is an internal accounting system and how can we make ours effective? (1999) CA: Non-profit Genie. Retrieved April 21, 2000, from the World Wide Web:
http://search.genie.org/genie/ans_result.lasso?cat=Financial+Management

An audit is a process for testing the accuracy and completeness of information presented in an organization's financial statements. External audits cannot be performed by board members, staff, or their relatives. In the auditing process, an audit report is produced by a certified public accountant and addressed to the board of directors. The report usually includes the following:

1. A cover letter, signed by the auditor, stating the opinion, as described above.
2. The financial statements, including the statement of financial position (balance sheet), statement of financial activity (income statement), and statement of cash flows. Health and social service organizations also have a statement of functional expenses. Many audits show comparative information between fiscal years.
3. Notes to the financial statements, as required by GAAP, which might include information about functional expenses, a depreciation schedule, further information about contributions, volunteer services, and other significant information not obvious in the financial statements. (Non-profit Genie)

The auditor may also prepare a management letter or report to the board of directors that cites weaknesses in the organization's internal accounting control system.

An internal audit is the process in which the board (or the audit or finance committee) reviews the organization's policies and procedures on how it does business and manages its financial affairs. The review committee should guarantee that adequate internal control mechanisms are in place to ensure that the organization is:

1. Using generally accepted accounting methods;
2. Complying with applicable laws and regulations;
3. Providing reliable financial information; and
4. Operating effectively and efficiently. (National Center for Non-profit Boards)

For example, an internal audit assures that: financial duties are segregated, cash receipts are protected, second signatures are required on large checks, inventory is kept track of, and records are kept accurately and in a timely manner. Appropriate internal controls create a firm base for effective outside financial audit.

SOURCES

What is an audit? (1999) CA: Non-profit Genie.  Retrieved April 21, 2001, from the World Wide Web: http://search.genie.org/genie/ans_result.lasso?cat=Financial+Management

What is an internal audit? (2001, April 16): National Center for Non-profit Boards.  Retrieved April 21, 2001, from the World Wide Web:
http://www.ncnb.org/askncnb/archive17.htm

Community Convening FAQs
What is Community Convening?

Community convening is bringing a community of people together to collectively deal with shared issues. The process has a long history in the United States, as demonstrated by the town hall meetings that formed the basis for early governance in the New England colonies. Bringing a community together to talk about mutual concerns has two fundamental purposes: addressing the specific topic or topics that require attention and, beyond this, it strengthening the bonds that make a community. Convening requires leadership and purpose to be successful. First an individual or group must recognize an issue that needs to be addressed by the community as a whole. Next a structure for gathering input must be set up. Finally the community must be invited to take part. This will often involve a debate and moderating skills may be required. Ultimately community convening is a way for people to deal democratically with the issues that affect them directly.

Sources

Community Building Through Convening. (2001, March 14) Coupville, WA: Island County Health Department. Retrieved March 22, 2001 from the World Wide Web:
http://www.islandcounty.net/health/convene.htm

Become a Community Organizer. (2000) Washington, DC: U.S. Department of Housing and Urban Development. Retrieved March 22, 2001 from the World Wide Web:
http://www.hud.gov/orcomm.html

What skills are needed to be a community convener?
Community convening entails eliciting the various perspectives of participants and working with the group to create an effective response to a situation. Aside from leadership skills for drawing the group together and motivating participation, conveners need to be active listeners, able to understand varying, even conflicting, opinions. This means that conveners must learn to balance the needs of many to accommodate differences and make room for all participants to have a voice.

Sources

Community Partnership Toolkit. (n.d.) Battle Creek, MI: W.K. Kellogg Foundation. Retrieved April 4, 2001 from the World Wide Web:
http://www.wkkf.org/Documents/cct/secd/cptoolkit/

Duncan, Miranda. Effective Meeting Facilitation: The Sine Qua Non of Planning. (n.d.) Washington, DC: National Endowment for the Arts. Retrieved April 8, 2001 from the World Wide Web:
http://www.arts.gov/pub/lessons/Lessons/DUNCAN1.HTML

How do we determine the needs of the community?
Assessing the needs of the community involves setting up channels of communication so community members have a way to participate and set the agenda. One method is to seek community feedback on concerns through polls or group meetings. Another is to use statistical data, such as Census results, to identify needs. Through coming to an understanding of the situation facing a community and assessing the resources already in place, community conveners must develop strategies for coping, from the strategic to the philosophical.

Sources

Community Assessment Handbook. (2000, October 16) Calgary, Canada: City of Calgary. Retrieved March 24, 2001 from the World Wide Web:
http://www.gov.calgary.ab.ca/community/publications/cmtyassesshandbook/index.html

Community Development Technotes. (n.d.) Washington, DC: U.S. Department of Agriculture, Rural Development, Office of Community Development. Retrieved April 12, 2001 from the World Wide Web:
http://www.rurdev.usda.gov/ocd/technote.html

Community Toolbox: Bringing Solutions to Light. KU Work Group. (2000) Lawrence, KS. Retrieved April 12, 2001 from the World Wide Web: http://ctb.lsi.ukans.edu/

How do we get the community involved?
Community convening relies on the involvement of the people it is meant to help. For people to support and become involved in the effort they must be given an understanding of the vital issues and provided a means of acting on their interest. Community conveners need to solicit input from all involved parties at the earliest possible point to make sure that any plans are in line with the desires of the community and that the community is reflected in the leadership of the convening entity. The purpose of community convening is to create strong community and this has to be an organic process that grows out of the community, as opposed to being just an external activity.

Sources

Community Building Through Convening. (2001, March 14) Coupville, WA: Island County Health Department. Retrieved March 22, 2001 from the World Wide Web:
http://www.islandcounty.net/health/convene.htm

Community Toolbox: Bringing Solutions to Light. KU Work Group. (2000) Lawrence, KS. Retrieved April 12, 2001 from the World Wide Web:
http://ctb.lsi.ukans.edu/

Recommended Resources for Additional FAQs

Title: INTERNET NONPROFIT CENTER: THE NONPROFIT FAQ
Keywords: Organization, Management, Regulation, Resources, Development
Annotation: An FAQ archive for nonprofits containing items of information and advice in the areas of organization, management, regulation, resources and development. The items come from discussions on email lists, in UseNet, and resource files prepared for the site by various contributors.
Creator: Putnam Barber, editor
Last updated: 2001
URL: http://www.nonprofit-info.org/npofaq/
Special access requirements: none
Full citation: http://www.nonprofit-info.org/npofaq/

Title: NONPROFIT GENIE
Keywords: Board development, Financial management, Fundraising, Internet, Volunteer management
Annotation :Contains an extensive collection of FAQs for nonprofits, covering topics such as board development, financial management, fundraising, the internet and volunteer management.
Creator: California Management Assistance Partnership
Last updated: 2001
URL: http://www.genie.org/
Special access requirements: none
Full citation: http://www.genie.org/

Title: FREE MANAGEMENT LIBRARY
Keywords: Management, Leadership, Finances, Fundraising, Volunteers
Annotation: Indexes 675 topics relating to nonprofits. Contains information on topics ranging from crisis management to legal information. The items come from websites, contributors, and participants in numerous on-line discussion groups and newsletters.
Creator: The Management Assistance Program
Last updated: 1999
URL: http://www.mapnp.org/library/index.html
Special access requirements: none
Full citation: http://www.mapnp.org/library/index.html

Title: ABOUT: THE HUMAN INTERNET: NONPROFIT CHARITABLE ORGANIZATIONS
Keywords: Accounting, Management, Board of directors, Fundraising, Grant proposals
Annotation: Indexes over 700 sites. Contains information, articles, and links to related websites covering nonprofit topics such as management, finances, fundraising etc.
Creator: Stan Hutton, a nonprofit management professional, works as a program consultant for the Clarence E. Heller Charitable Foundation and as a contracts manager for the San Francisco Study Center.
Last update: 2001
URL: http://nonprofit.about.com/careers/nonprofit/mbody.htm
Special access requirements: none
Full citation: http://nonprofit.about.com/careers/nonprofit/mbody.htm

Title: BECOME A COMMUNITY ORGANIZER
Keywords: community convening, community organizer, partnerships, neighborhood organizations, tips
Annotation: Overview of the necessary steps to becoming a community organizer. Provides related links and Best Practices.
Creator: U.S. Department of Housing and Urban Development
Last update: 2000
URL: http://www.hud.gov/orcomm.html
Special access requirements: none
Full citation: http://www.hud.gov/orcomm.html

Glossary

COMMUNITY CONVENER GLOSSARY

Community assessment
"A community assessment is a systematic way of identifying the needs and resources of a community by gathering statistical data, soliciting perspectives of community members and collecting information about service providers and other community resources (Samuels et al., 1995). The literature suggests that a community assessment is both a product and a process (Bruner et al., 1993). The product includes information about the community's current condition and its capacity to support and enhance the well being of its members. The process is one whereby community members collectively gain an understanding of community strengths and needs and become invested in working for change (Bruner et al., 1993). A community assessment provides the foundation for developing effective community programs and initiatives. It also provides a baseline of information which can be used to track changes in the community." (teLinde, 2000. http://www.gov.calgary.ab.ca/community/publications/cmtyassesshandbook/cdasses1.html)

Community convening
To facilitate a community's coming together as one body for a public purpose. (Island Health County Department. http://www.islandcounty.net/health/convene.htm)

Facilitation
"Facilitation is the process of assisting groups in decision-making or other group processes. A facilitator is a neutral guide that helps move the group to a common consensus." (Burke, 2000. http://www.nationalservice.org/research/fellows_reports/2000/burke.pdf)

Collaboration
"To work jointly with others particularly in an intellectual endeavor". (Britannica. http://www.britannica.com/cgi-bin/dict?va=collaboration)

PROJECT MANAGEMENT GLOSSARY

Activities
Also known as tasks, are the identifiable things to be done in order to complete a work product. A task is the smallest unit of work defined for planning purposes. It must be small enough to be able to identify and estimate the specific resources needed. See also, Critical Activity

Critical Activity
An activity that must be finished on time or the whole project will fall behind schedule.

Critical path
When a project has several tasks, some of them overlapping or dependent upon earlier tasks, the critical path is the minimum time schedule for completing all the tasks. A critical path is the series of tasks that must be completed on schedule for a project to finish on schedule.

Deliverables
Deliverables are the products that are to be delivered to the customer at the end of a project. Interim deliverables are the work in progress during a project.

Duration
The length of time needed to complete an activity.

Gantt Chart
A series of lines that represent the beginning and ending dates for each task in a project, placed on some form of time line. A Gantt chart is a representation of a schedule of activities or milestones over time. The activities are on the 'y' axis and the time scale in days, weeks or months is on the 'x' or horizontal axis.

Methodology
Methodology is a collection of methods, procedures, and standards that defines an integrated synthesis of utilizing approaches to the development of a product.

Milestone
A date in a project when an event will occur. An example of this is completing a task or handing over an interim deliverable. A significant event marking project progress. Milestones are interim goals. Milestones are a way of identifying or labeling significant events that can then be used to report progress. A milestone is often used to identify the completion of a series of tasks, or readiness to begin a new stage (i.e. when all the dependencies or prerequisites have been satisfied).

Multi-project Analysis
A multi-project analysis is used to analyze the impact and interaction of activities and resources whose progress affects the progress of a group of projects or for projects with shared resources or both.

Organizational Breakdown Structure (OBS)
A hierarchical structure, which designates which department is responsible for the work to be performed, and separates logical organizational work areas for reporting purposes. The OBS is also often used to break the Work Breakdown Structure into several actual cost collection points. See also, Work Breakdown Structure

Program Evaluation and Review Technique (PERT)
A project management technique for determining how much time a project needs before it is completed. Each activity is assigned a best, worst, and most probable completion time estimate. These estimates are used to determine the average completion time. The average times are used to figure the critical path and the standard deviation of completion times for the entire project.

Project
A project is a one-time effort to accomplish an explicit objective by a specific time. Each project is unique although similar projects may exist. Like the individual activity, the project has a distinguishable start and finish and a time frame for completion. Each activity in the project will be monitored and controlled to determine its impact on other activities and projects. The project is the largest discrete block of time and resources handled by most PM software.

Project Management
The application of knowledge, skills, tools, and techniques to project activities in order to meet or exceed stakeholder needs and expectations from a project

Resources
The people and facilities needed to carry out the activities required to complete specific work products. The people may be individuals or teams.

Slippage
The amount of slack or float time used up by the current activity due to a delayed start.

Stakeholders
The people who 'own' those areas of the business which need the changes to be brought about by the project, or which are impacted (beneficially or adversely) by the changes, or which have to support, operate, control or sustain the changed environment.

Work Breakdown Structure (WBS)
A way of representing the hierarchy of work products to show their dependencies and relationships, and sometimes their sources. A simple tree diagram may be sufficient for a straightforward project. WBS codes may be assigned to work products and their tasks to facilitate analysis. See also, Organizational Breakdown Structure

Work Flow
The relationship of the activities in a project from start to finish.

TEAM BUILDING GLOSSARY

Accommodating
Resolving conflict by subordinating one's self interest to those of others.

Active listening
Shifting focus from one's self and to the other person and the content and sub text of their message.

Communication
Effective communication involves clear, current, and relevant information that is either in written or oral form. Ideally interactive, effective communication is a conversation; it enables and encourages both active listening and debate.

Common Purpose
This is the driving force of teams. The team starts with the organization's mission statement and must develop it's own purpose. This purpose must be meaningful and must have ownership by everyone, as individuals and as a group. A team will constantly revisit its purpose, refining it, making it more relevant as the team develops over time.

Delegating
The act of giving responsibility for the achievement of tasks to qualified, experienced and confident staff. Delegating also implies the use of effective training, supportive management and the management of errors in a way that encourages staff to grow in their roles.

Facilitator
The facilitator's role is to coordinate the meetings and to oversee the meetings in their initial stages. Part of this oversight involves ensuring that the team stays on track and that everyone gets an equal opportunity to share his or her ideas and opinions. The facilitator may be appointed, elected, or handled on a rotating basis (a different Facilitator at each meeting).

Feedback
Evaluating the team's performance and clarifying both feelings and interests of the team members. When feedback is given it is done with a desire to help the other person.

Goal Setting
The setting of realistic, challenging and attainable goals and recognizing potential success factors and challenges.

Group Dynamics
The study of the structure, processes and changes of groups. The dynamics of a group are taken to be those processes, influences, leadership actions, roles and energy levels that can change as people join or leave, as groups experience success or failure and, in particular, as groups change their values and purposes.

Job Enrichment
The process of allowing and encouraging employees to take on larger parts of the job and in particular to experience some form of closure - seeing an end result to what they do.

Leadership
Dynamic motivating by an individual towards a group of people to work supportively and effectively together as well as maximizing the contribution that each different individual can make to the team as a whole.

Motivation
The conscious stimulus for action by a leader or manager towards a desired goal for a team provided by psychological or social factors that give purpose or direction to behavior with desired outcomes benefiting all involved.

Performance Goals
Specific performance goals are established, tracked, met and evaluated in an on-going process. This progression of successful outcomes establishes trust and credibility among team members, and fuels the team to handle larger challenges.

Team
Two or more people working interdependently toward a common goal and a shared reward. A team is a group of people working towards a common goal. 'Team Building' is the process of enabling that group of people to reach their goal.

Team Building
The process of influencing a group of diverse individuals, each with their own goals, needs, and perspectives, to work together effectively for the good of the organization or project.