ACN News & Industry Trends
Spotlight on ACN Partnerships
by Liz Duffrin, ACN Member
Meghann Beer, who once helped launch and lead a community development nonprofit working in the Democratic Republic of Congo, joined ACN in 2012. She had just moved to Chicago from Bloomington, Indiana, where she consulted for nonprofits and taught nonprofit management at Indiana University.
Debra Natenshon joined ACN in 2013. At the time, she was the CEO of a national nonprofit consulting group but wanted to transition to consulting in Chicago.
When fellow consultant Carol White introduced Meghann and Debra at an ACN event several years ago, their connection was almost immediate.
The two found they had complementary skill sets, and even better, “We liked each other right away,” says Debra. “That’s an important ingredient in knowing you’d like to work together.”
Their chance to collaborate finally came in 2017 when a board member of a large educational service vendor approached Debra with a major project: “The client wanted a strategic plan but embedded in the plan, they needed a fundraising assessment,” she says. “I didn’t have that specific expertise, but I thought of Meghann immediately.”
At many points during the year-long endeavor that followed, each of them remarked that she would never have taken on the project without the other.
Besides having a partner to share the workload, Meghann says, they valued each other’s varied experience and skills. “We were able to grapple with challenges and think through the process in order to make valuable recommendations to the client.”
The client’s challenges involved businesses processes, board governance, strategy implementation and personalities, Debra recalls. “If you’re an independent consultant with a complex project, you’re often working in an echo chamber. It was really important with this project to have each other as thought partners.”
By the end of the project, the client’s strategic planning task force was pleased with how far they had come and impressed with the clarity of the plan and fundraising assessment.
The two offered advice to other consultants looking for partnerships:
Debra names the chance to meet potential collaborators one the biggest benefits of an ACN membership. “It’s marvelous to meet other consultants with complementary skill sets. There’s no shortage of work in Chicago,” she observes, “but the work is often more complex than one person can do alone.”
by Brenda Berman
BB Communications, ACN VP of Marketing
Now that the hustle and bustle of the holidays is over, we tend to settle back into our normal daily rhythms and routines. If one of your resolutions is to keep up on trends that affect your professional life, you may find some intriguing reading material among the following – whether you are a consultant to nonprofits or a nonprofit leader. While not all of these selections are happy-making, I promise they won’t be boring.
1. Hot topics in 2017 to help you plan for what’s ahead in 2018
From National Council of Nonprofits: VP Jennifer Chandler writes, “While it may be impossible to anticipate fully what 2018 has in store for charitable nonprofits, we think there are important takeaways from some of the hottest topics that surfaced in 2017.”
Among the topics Chandler touches on are changes in charitable giving, budget cuts, sexual harassment and cybersecurity. Though written before the GOP tax legislation was passed by both chambers on December 20, 2017, her article includes this warning: “[With the standard deduction doubled], there is likely to be no tax incentive for 95 percent of the population to make a charitable donation in 2018.
“Will Americans continue to give at their current (lower than prior years) rate? Or will tax reform result in even more depressed giving rates by individuals, resulting in up to $20 billion in lost charitable giving annually, as estimated by the Tax Policy Center?”
More detailed analysis of the impact of the bill’s provisions on charitable nonprofits can be found in the Council’s Nonprofit Analysis of the Final Tax Bill Proposal.
2. Nonprofit Trends for 2018 and Beyond
From Nonprofit Pro: F. Duke Haddad, executive director of development for The Salvation Army Indiana Division, distills key points from several trend pieces about the future of nonprofits , including an article from Fast Company that reveals the three top nonprofit jobs for the near future.
3. 12 Demographic & Technology Trends Changing the Nonprofit Sector Worldwide
From Nonprofit Tech for Good: This social and mobile media resource for nonprofit professionals illustrates some startling and powerful global demographic trends, citing sources as diverse as the United Nations Populations Fund, Pew Research Center and its own "2017 Global Trends in Giving Report."
4. 2018 Fundraising Trends: Our Executive Team Looks Ahead
From Campbell & Company: Top experts at this fundraising consulting and executive search firm– CEO Peter Fissinger and EVPs Julia McGuire and Kate Roosevelt – provide their insights and recommendations for nonprofits in 2018.
5. The House Tax Bill Is Not Very Charitable to Nonprofits
From Tax Policy Center: Researchers Joseph Rosenberg and Philip Stallworth make some depressing predictions of the effects of the GOP tax bill: “Even though the House version of the Tax Cuts and Jobs Act (TCJA) preserves the charitable income tax deduction, other income tax provisions of the bill could reduce charitable giving by between $12 billion and $20 billion in 2018 . . . A second provision—repeal of the estate tax—could reduce giving by another $4 billion in the longer run . . .
"By nearly doubling the standard deduction and either repealing or scaling back most itemized deductions, the House version of the TCJA would substantially reduce the number of taxpayers who elect to itemize. TPC estimates that fewer than 13 million taxpayers would itemize deductions in 2018 under the House version of the TCJA, down from more than 46 million under current law.”
6. Why do people give? Not for the tax break
From Crains’ Chicago Business: While not discrediting the potentially crippling impact of the new tax laws on individual giving to nonprofits, reporter Lisa Bertagnoli presents a relatively hopeful outlook on giving by examining what motivates donors, particularly wealthy ones. She finds that belief in the organization’s mission, a desire to make a difference and personal satisfaction are their top reasons for giving.
7. Will 2018 be the year of the nonprofit merger?
Also from Crains' Bertagnoli: Here she interviews advisers and nonprofit executives to understand the growing trend of nonprofit mergers and partnerships.
8. Is Your Nonprofit Built for Sustained Innovation?
From Stanford’s Social Innovation Review: Recent research shows that while most nonprofit leaders recognize the urgent need to innovate solutions to social problems, few think their organizations are prepared to do so. Writers Nidhi Sahni, Laura Lanzerotti, Amira Bliss and Daniel Pike present a sustainable approach for building innovation capacity within organizations.
9. Models and Components of a Great Nonprofit Dashboard
From Nonprofit Quarterly: According to Hilda H. Polanco and Sarah Walker of the financial management consulting firm FMA, “Nonprofits are complex enterprises. They are built around mission and desired outcomes but must be supported by the right revenue and expense models . . .
"As an organization’s goals, strategy, and operating context shift over time, a dashboard allows a nonprofit to monitor both the effectiveness of this enterprise or business model, as evidenced by the organization’s financial health, and the impact of the programs and services being provided.”
Polanco and Walker present the process for developing an effective dashboard and show examples based on various business model drivers.
As they say, you can’t know where you’re going if you don’t know where you are.
By: Andrew Shafer, SD Solutions
The final weeks of December are always a good time to reflect on the year that is leaving us. As I write this, we are rapidly approaching 2017 – and 2016 was without a doubt one for the record books. The world and domestic landscapes certainly left us all challenged and constantly wondering what would be at the next bend in the road. As with most years, and in most sectors, the only guarantee that we have to lean on is change. In 2017, change we will! A new presidential administration will force the nonprofit sector to remain vigilant and responsive to proposed and adopted legislation that impacts each of the organizations that we are fortunate enough to work with.
The December 2016 issue of The Chronicle of Philanthropy featured an article titled “A New Landscape: What his views on taxes, spending, race, immigration, and more could mean for nonprofits.” Now most presidential transitions do include changes to many sectors in our society. However, it is predicted by most that many of the Trump Administration’s new policies and procedures will impact various part of our sector and we need to be prepared.
According to the Chronicle and many other experts, the most notable and wide-reaching policy that will impact the nonprofit sector involves the charitable tax deduction. No changes have been made as of this writing, however, advocacy efforts have already begun on Capitol Hill and those will likely continue long into 2017 and beyond. As most in the philanthropy space know, major and principal gifts are generally not very impacted by the need for tax benefits, but annual gifts and some planned giving decisions are incredible impacted. The Chronicle article states “…leaders…[need to] ratchet-up advocacy….to protect the charitable giving incentive….”
The other key point to consider as we enter the new administration’s move into the White House involves federal spending. Most leaders in philanthropy have already heard from foundation program officers in particular who have notified them of the decision to hold on further grant decisions. Until more is known about congressional and presidential decisions regarding rules for allocating funds, these foundations are causing angst for agencies dependent on these resources. In particular, anyone with government contracts should no be considering their “plan B.” For many, this will mean brushing off their latest wealth screening, or scheduling a new one, and focusing more on individual gifts.
Truth be told, all of the transition concerns may be exacerbated among organizations that have less diversified funding models. Just like personal finances, diversifying as a nonprofit means not relying on any one gift or fund for a majority percentage of their operating revenues. Of course, the best-case scenario would be if the economy thrives: President-Elect Trump has indeed pledged to “double economic growth” and Adam Myerson of the Presidential Roundtable, says “that will be great for charitable giving [if it happens].”
As consultants to nonprofits, we all have an obligation in times of transition and uncertainty to be the voice of reason to clients. Clients look to us as “experts” in our respect niche areas. If we are calm and confident, so too will they be calm and confident. If we are angry, nervous, and negative, clients will feel that. In fact, I would encourage all of us to challenge clients to think of the 2017 landscape as the “time to shine.” Let’s think more innovatively, get out of the office more, meet with one more potential investment partner (time, money, or other resources) each week. The time is now to effect positive and lasting change on the sector. We must ride the waves of the new administration while also keeping focus on our critical missions at hand.
Andrew Shafer is the Chief Advancement Officer for the Paulist Fathers - headquartered in New York City. He is also a consultant for nonprofit organizations; consulting on executive leadership and strategy development with a goal of creating "strategy leading to funding solutions." More at www.advancementplan.com. Andrew also instructs in an adjunct faculty capacity at a number of universities throughout the US. For more information, you can e-mail email@example.com or call 615.866.7037.
By: Catherine Siebel, Impact Assessment for Foundations and Nonprofits
Faithful Readers –
Welcome to the ACN blog! We’re so happy to have you back. What a (fiscal) year it has been for ACN! While our members have been busy securing contracts, collaborating with one another and improving their clients’ organizations, ACN’s board has been busy working behind the scenes to take our organization to the next level. Since June 2014, we have kept our focus on two main thrusts: to stabilize and invigorate the organization.
ACN has undergone considerable change as an organization in the past few years. Our two most recent Presidents resigned mid-term to pursue full-time positions, leaving little opportunity to execute a transition plan. Last summer, as Whit Shepard and I assumed the roles of Interim Co-Presidents, we initiated a new chapter in ACN by bringing on our first paid Executive Director, Michael Long. As we all know from our own work in the nonprofit sector, successful transitions of staff and leadership do not take place overnight (especially when they happen at the same time!). Thus we have dedicated much of the past year stabilizing the organization behind-the-scenes, in preparation for the exciting changes ahead.
Which leads us to:
I am so excited to share with you all the work that our Board and committee members have been doing to reinvigorate the organization. First, and most importantly – our VP of Programming, Jonathan Eisler, has spearheaded the effort to put together this summer’s Annual Meeting, featuring the program A Panorama of the Nonprofit Sector: What to Know and Do Within the Changing Landscape. Talk about reinvigorated! This program turns our previous meetings on their head, in several exciting ways:
In short – it promises to be a phenomenal program. I very much hope you can make it.
The program isn’t our only change. In the past year we have institutionalized our Pop-Up Happy Hours, which are pay-as-you-go events open to members, potential members, and guests of all stripes. Launched by Annisa Wanat and led by Meegan Dugan Bassett, these events are a great way to network with old friends and new colleagues – and ideal for those of us who aren’t “morning people”. We rotate between city and suburban locations. Our next event, on May 14th, is at Scout Waterhouse + Kitchen in the South Loop. We’d love to see you there!
As our members know, this spring we launched our 2015 Member Survey, with the aim of learning more about who our members are – and where they want to go. The data have proven to be tremendously interesting (did you know, for example, that approximately twenty percent of our members have collaborated with other ACN members in the past two years?). More importantly, these data are useful – we are already hard at work translating the findings into a fact sheet to distribute to nonprofit organizations, as well as a white paper highlighting the spirit of our organization and our value to the nonprofit community. These will both be distributed via our social networks – please take a moment to share when you see them!
And finally, I am pleased to use this post to serve as the re-launch of the ACN blog. As ACN expands its service to its members and the nonprofit community, we plan to use this blog as a platform for providing high-quality content to our readers. We have upcoming posts from ACN members Bonnie Massa, Debbie McCann, Jim Heininger, Carey Freimuth and Amy Wishnick. Also look for posts from our annual meeting speakers! Our blog reaches a large audience of potential clients – with approximately 1,200 unique visitors to our website each month – so if you’re interested in writing a piece about something you’re passionate about that would be of service to the nonprofit community, feel free to e-mail me at firstname.lastname@example.org.
As we move ahead toward the Annual Meeting and beyond, I am looking forward to being a part of an invigorated and exciting ACN. I hope you’ll join me.
By: Whit Shepard, RWS Consulting, Inc.In a professional association such as ACN – with its 25-year history and hundreds of members coming through our doors – the organization inevitably evolves over time to reflect both its leadership and the times. Our Board of Directors, revitalized with new leadership and new members, is excited to be moving our organization forward into a new era of nonprofit consulting. In the past year, the Board has been engaged in a number of initiatives – both strategic and tactical – that we believe will strengthen our organization as it prepares for the next quarter-century.
On a strategic level, we have recently participated in two Board retreats focused on the nature of our organization and how we can meet the ever-changing demands of our profession. Fundamental to this discussion has been a consideration of the kind of organization we wish to become: an umbrella membership association that provides services and programming to as many members as we can attract, or a professional society of seasoned, savvy professionals that can promise our nonprofit partners a consistent level of excellence and experience. How we answer this question will have fundamental implications for how ACN is structured and financed going forward. Stay tuned.
From a tactical standpoint, we frequently consider the issue of how ACN can deepen its relationship with the nonprofit community by providing proactive assistance in identifying, hiring and utilizing consultants to improve their organizations. Consistent with the age of data-driven decision making, we asked two of our fellow ACN members to design and execute a series of focus groups with the aim of identifying ways to add value to the member experience while providing more value to the community of nonprofit organizations we serve. With these findings in mind, the board has taken up a number of initiatives. We have:
These are just a few of the organizational improvements that the Board has made recently. As 2014 unfolds, we will be announcing a series of exciting new initiatives that will increase the value of ACN’s membership and create new opportunities for the nonprofit community.
We’ve come a long way in 25 years, and the best is yet to come!
By: Catherine Siebel, Impact Assessment for Foundations and Nonprofits
On June 10th, ACN hosted its Annual Meeting, featuring the program, “A Panorama of the Nonprofit Sector: What to Know and Do Within the Changing Landscape”. For the first time, we invited nonprofit organizations to what has traditionally been a members-only event. What phenomenal energy! With a crowd that was nearly evenly split between ACN members and nonprofit organizations, I was thrilled to watch friends and colleagues greet one another and to witness new connections being made.
Equally exciting was the programming, which exceeded our already-high expectations. Moderated by the exceptional Delia Coleman (I routinely tell anyone who will listen that you don’t understand what a skill it is to moderate until you’ve seen Delia work a panel), our group discussion ranged from the difficult to the optimistic – and spanned both theoretical and practical considerations.
A key – and anticipated – point of discussion at the event focused on past and future budget cuts, and what that means for the sector. Judith Gethner noted that Human Service funding in Illinois has decreased by 29% since 2009 – and now faces cuts of hundreds of millions of dollars through the current budget negotiations. Sharon Bush commented: “This is more real than it has ever been. You’re going to be cut beyond the bone.” Asked what kind of changes this dire climate is fostering, the panelists provided a wealth of information. A few key points:
So what can nonprofit leaders do in response? How can they effectively meet their mission while managing a competitive and uncertain stream financial future? A few down-on-the-ground thoughts from our panelists:
Throughout this compelling discussion, something that struck me over and over was the breadth of expertise that’s required in this changing landscape. At various points throughout the conversation, a variety of knowledge was deemed necessary to deal with these tectonic shifts. A few examples included impact measurement, social enterprises, strategic planning, board development, policy advocacy, data analytics, marketing/branding, and financial planning. No Executive Director can be expected to be experts in all of these areas while running their organization. And yet – this is precisely what they’re being expected to do. As the newly elected President of ACN, I’m proud to say that experts in every single one of these areas not only comprise our membership, but were represented in the room last Wednesday. Our members – averaging over 11 years of experience in nonprofit consulting and spanning more than 20 areas of expertise – provide such an incredible resource to the nonprofit community.
With this in mind, I’ll finish with hopefulness by echoing Mr. Weinheimer’s sentiment: “It’s going to be tough. But I’m optimistic that the sector will come out stronger on the other side.”
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