Nonprofit Capacity Building Services
There is a startling lack of awareness about what nonprofit capacity building is, especially when our society depends so heavily on the nonprofit sector to serve as the safety net for our communities. Simply put, nonprofit capacity building refers to activities that improve and enhance a nonprofit’s ability to achieve its mission and sustain itself over time.
“Nonprofits have an obligation to seek new and even more effective ways of making tangible progress towards their missions, and this requires building organizational capacity. All too many nonprofits, however, focus on creating new programs and keeping administrative costs low instead of building the organizational capacity necessary to achieve their aspirations effectively and efficiently…This must change: both nonprofit managers and those that fund them must recognize that excellence in programmatic innovation and implementation are insufficient for nonprofits to achieve lasting results. Great programs need great organizations behind them.”
Effective Capacity Building in Nonprofit Organizations,
Report for Venture Philanthropy Partners by McKinsey & Company (2001)
Capacity building impacts all aspects of a nonprofit’s activities. Examples include: identifying a communications strategy; improving volunteer recruitment; learning about complex new IRS and state regulations, and responding to them by adopting new governance practices; developing a leadership succession plan; identifying more efficient uses of technology; and engaging in collaborations with community partners. When capacity building is successful, it strengthens a nonprofit’s ability to fulfill its mission over time, and enhances the nonprofit’s ability to have a positive impact on lives and communities.
As organizational development consultants, we provide the following nonprofit capacity building services:
- Strategic Planning
- Fund Development Planning
- Board / Governance Training
- Board Recruitment Support
- Program Planning & Design
- Budget Development
- Grant Award Management / Administration
Nonprofit Start-Up Assistance
Our nonprofit start-up assistance services go far beyond basic document preparation. We also provide comprehensive organizational development services to ensure that, as newly established organizations, our nonprofit clients have the administrative foundation necessary to run effective programs, attract and retain dedicated staff and volunteers, raise needed funds and govern in accordance with sound management practices.
The comprehensive process includes the following steps:
- Facilitate mission building sessions with key organizational stakeholders and document a high-level organizational profile, which will be used to describe the organization's purpose in the IRS application document.
- Develop a comprehensive profile of the target population, including identifying their unmet needs, how the organization's programs will address their needs and identify any potential collaborative opportunities with similar organizations.
- Develop and document organizational bi-laws. This involves establishing effective checks and balances for board members as they fulfill their respective roles. This step also includes defining the respective roles and responsibilities of general board members as well as those of the executive board and related committees.
- Develop and file Articles of Incorporation with the appropriate start agency (usually the state's Attorney General's office) so that the organization is recognized at the state level.
- Facilitate the board recruitment process by developing the process and tools to be used to:
- Establish appropriate board composition.
- Identify potential candidates to fill board positions.
- Solicit participation of potential candidates.
- Interview / meet with potential candidates
- Provide guidance to chosen candidates through the development of a comprehensive board orientation and welcome packet, etc.
- Host and facilitate the organization's first board meeting - (to elect board members, adopt bi-laws, and elect first officers). This also involves scheduling the meeting, drafting and circulating the agenda, facilitating the meeting, drafting minutes of first meeting - helping to set the course for future meetings by developing a meeting schedule and sample / recommended agendas for future meetings.
- Develop a three (3) year organizational budget the outlines the funds that will be needed to implement the organization's intended programs and sustain the organization over time.
- Prepare and file the organization's IRS Form 1023 - Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code and serve as primary contact as the application is being reviewed by IRS agents.
- Apply for charitable contributions salutation license through the State of Michigan (or the state in which the organization is formed) on behalf of the client.
Throughout the above described nonprofit start-up process, we will provide advice and guidance to the organization's founder(s) and ultimately also help them assess the feasibility of their endeavor based on environmental factors outside of their control.
Nonprofit Accounting Services / Compliance Support / IRS Form 990 Filing
Each year the IRS requires most tax-exempt organizations to submit the Form 990 and its relations, which includes the following items.
- Income Statement with very specific revenue and expense categories like donations, salaries, postage, rent, etc.
- Balance Sheet with specific categories like cash, accounts receivable, accounts payable, etc.
- Functional Expense Statement with all the expenses allocated to program services, fundraising, or operations.
- Individual Program Expense Statement that reports all of the expenses for each program or service like tutoring, financial literacy or housing services.
- Revenue Support Schedules that detail the organization's sources of income in specific categories like charitable donations, membership fees, investment income.
The IRS uses these very specific revenue and expense classifications to determine if your organization will retain its tax-exempt status. So it's imperative that you build your accounting system around these revenue and expense classifications.
Here's what we do for you...
- Review and compile your financial statements
- Design, install, and maintain your Accounting System
- Weekly, bi-weekly, or monthly payroll preparation
- Payroll Tax Preparation and Deposits
- Provide training for your accounting personnel
- Provide training for your board on non-profit financial statement usage and effective budgeting practices
- Prepare and file the 990 and 990 T tax forms
- Prepare your initial start-up documentation, including incorporation, federal employee identification number (FEIN), and payroll setup with federal and state agencies.
Grant Proposal Development Services
What we do is more than just grant writing. Our grant proposal development services include the following important phases:
- Analyzing funder guidelines and requests for proposals (RFPs) and providing feedback to the client as to whether their organization and or programs match the interests outlined by the funders – ultimately, before beginning a project of this nature we advise on the feasibility of going after certain funding sources.
- Working with the client to develop the language that clearly describes their programs to the funders. Such language includes:
- The program description
- Program outcomes
- Program budget
- Program work plan, which includes timelines, the number of participants served, etc.
- Program staff credentials
- Target population profile
- The "case for support" – Why the funder should invest in the program.
- Evaluation plan
- Etc.
- Managing the organization of the proposal process and the ultimate submission of proposals to the prospective funders.
The above steps are inextricably connected and when performed effectively (and IF the organization is "grant ready") our clients can expect increased success in securing funding to support their project goals and objectives.
For organizations that have a continuous or frequent need for grant funds, Angeline & Associates, LLC can handle all of your grant development needs on an ongoing basis for a fixed monthly fee that would be less than the cost of an entry-level staff person.
We also take on Special Complex Grant Writing Projects that require collaborations, extensive research, and project planning. We will coordinate the information gathering process and ensure that all funder imposed grant proposal requirements are met.
If you prefer to write your own grant proposals, you are a perfect candidate for our Proposal Review Services. With sufficient lead time (no rush jobs), we will review your work to determine if you’ve met the funder’s requirements, proofread, edit and make recommendations for improvement that will assist you in submitting the most effective grant proposal.
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