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Guiding Principles + Practices for Nonprofit Excellence in Maine, Black and White Version

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Guiding Principles + Practices for Nonprofit Excellence in Maine, Black and White Version Principles Practices Guiding Nonprofit Excellence in Maine Our sincere thanks to Healey and Associates for their generous sponsorship of this fourth edition of the Guiding Principles + Practices for Nonprofit Excellence in Maine. Copyright © December, 2012 by the Maine Association of Nonprofits. This work is made available under the terms of the Creative Commons Attribution-NonCommercial-NoDerivs 3.0 License, http://creativecommons.org/licenses/by-nc-nd/3.0/. 1 Guiding Principles + Practices for Nonprofit Excellence in Maine © 2012 Table of Contents Introduction page 3 Purpose Applicability History What’s New Definitions Related Programs + Tools How to Use this Guide Legal Accountability Closing Thoughts Overview of Guiding Principles page 7 Public Benefit + Accountability page 9 Governance + Leadership page 11 Public Policy + Advocacy page 15 Evaluation page 17 Strategic + Operational Planning page 19 Strategic Alliances page 21 Financial Management page 23 Staff + Volunteer Management page 27 Resource + Fund Development page 29 Marketing + Communications page 31 Technology page 33 If You Suspect Fraud or Misconduct page 35 Index page 37 About MANP page 44 2 www.NonprofitMaine.org Introduction Purpose Nonprofit Excellence in Maine This is the most provides a planning The nonprofit sector is and assessment continually challenged to be framework that raises comprehensive more transparent, efficient the bar for nonprofit and effective. Guiding performance. It is intended as a tool for nonprofits to list of nonprofit “best Principles + Practices live up to the challenge for Nonprofit posed by Stephen Covey and practices” that you will Excellence in Maine is other thought leaders: “Begin with the end in a tool to help mind.” find anywhere in the nonprofits evaluate country. A commitment to and address issues Most nonprofits will of capacity and not demonstrate full aligning your nonprofit’s accountability as adherence to all policies and procedures they strive to build Guiding Principles the foundation for immediately, nor will around these best practices true mission they have every Guiding achievement. Practice reflected in their operations. The Principles helps to advance your and Practices should provide Capacity generally refers a basis for each organization to an organization’s level of (board, staff and other organization’s ability to achieve its stated constituents) to make a mission. Many factors affect conscious comparison and mission and contributes capacity, including the life determination of what will cycle stage of the best move them forward in significantly to long-term organization, a sudden ensuring that the increase or decrease in organization operates with funding, skill level of staff, integrity and its programs sustainability. changes to staff or and services are of the governance, and a variety of highest possible quality. —Douglas Woodbury, other factors. In addition to this tool, MANP Board Member, Accountability generally many national umbrella refers to an organization’s organizations, sub-sector Retired CFO, ability to answer questions networks, and professional MANP Member Organization regarding appropriate networks have developed expenditure of funds and/or support materials targeted service impacts and to their individual outcomes that demonstrate constituencies. It is worth progress toward its mission. your time to identify key resources and industry Adherence to Guiding standards for your field of Principles + Practices for focus. Nonprofit Excellence in Maineis not mandatory, though specific practices are Applicability of required by Maine or federal Principles + law, and are noted as such. There is no certification or Practices accreditation process; it is not designed as a report Because most members of card. Simply, Guiding the Maine Association of Principles + Practices for 3 Guiding Principles + Practices for Nonprofit Excellence in Maine © 2012 Nonprofits are 501(c)(3) Practices for Nonprofit Excellence in Maine and the Definitions public charities, these Basic Infrastructure Checklist guiding Principles and and to promote their usage. Practices are tailored to the MANP contracted with a A “Principle” is a broad statement that particular needs of those Maine-based lawyer to defines a suggested ethical or organizations. Other kinds review the tools and make managerial direction for a nonprofit of organizations, including appropriate adaptations 501(c)(4)s and 501(c)(3) based on Maine law. Once organization. private foundations, are the necessary legal changes subject to somewhat were made, MANP identified A “Practice” is a suggested method to different legal requirements. over fifty content experts achieve the principles. Therefore, although much of throughout the state and the content of the Guiding contacted them to request Principles + Practices and the their assistance with the Whenever the term “must” is used, companion Maine Basic adaptation of the tool. federal or Maine state laws exist that Infrastructure Checklist apply Participating experts require all 501(c)(3) nonprofit to these latter organizations provided useful feedback as well, extra care should be and recommendations for organizations to conform to that taken to ensure compliance how to ensure that the tools practice. Throughout this document, with all relevant laws and truly met the needs of legal requirements are denoted with a regulations. Maine’s nonprofit sector. star (*) followed by ME for Maine law or US for federal law or ME/US for both. History In the fall of 2006, MANP published the Guiding Principles + Practices for The term “should” means that the In 2005, the Maine Nonprofit Excellence in Maine practice is not required by law, but is Association of Nonprofits and Basic Infrastructure (MANP) began researching Checklist. MANP has generally recommended depending potential models for developed complementary upon the nature, resources, and nonprofit standards. After resources described on page developmental stage of the nonprofit an extensive review of six, and the original tools organization. existing tools, MANP decided have now been revised in that the Principles and 2007, 2009, and 2012 to Practices for Nonprofit reflect changes in the In this guide the terms “charitable Excellence, first created by the nonprofit environment, organization,” “nonprofit organization” Minnesota Council of enhancements by other and “nonprofit” are used Nonprofits and later adapted state associations, and the by the Michigan Nonprofit feedback of local partners. interchangeably to refer to nonprofit Association, not only organizations that qualify for tax provided the appropriate guidance to assist Maine’s What’s New? exemption under 501(c)(3) of the nonprofits in building their Internal Revenue Code. internal capacity, but also mirrored MANP’s philosophy In this fourth edition, we regarding standards have expanded the Practices programs. Both in all Principle areas to organizations generously reflect emerging best granted their permission for practices, added a new their documents to be used Principle called “Public as models for the creation of Benefit and Accountability,” Maine’s own nonprofit integrated Practices from a standards. previously included Principle area entitled “Transparency + Accountability” into other In 2006, the Maine areas of the document, and Community Foundation re-titled some Principle agreed to share in the areas to better reflect their developmental funding of content. the Guiding Principles + 4 www.NonprofitMaine.org We have restructured compliance, risk Related Programs + Tools management, strategic the Practices within planning, and organizational each Principle to development. The Basic Infrastructure Checklist more clearly addresses accountability requirements delineate those that Here are some suggestions for all 501(c)(3) public charities are legally required. for maximizing these resources to assess your incorporated or operating in Maine. This Many Practices relate to organization: resource serves as a desk-top reference more than one Principle for accountability, providing a area, and we now cross- reference Practices where Complete the Maine framework of nonprofit legal relevant, and encourage Basic Infrastructure Checklist requirements as well as recommended thorough review of the to make sure your records, practices in management and document, rather than filings and policies are up to duplicating Practices across date and in order. recordkeeping. sections. Review this document, Guiding Principles + Practices: Some readers use this Guiding Principles + Practices Organizational Self-Assessment document to determine for Nonprofit Excellence in Workbook is a version of the Guiding whether an organization is Maine © 2012, with your Principles + Practices for Nonprofit operating legally, so we have board and staff. Keep in also incorporated mind that this publication is Excellence in Maine in workbook information about what to focused on excellence; the format, to help your management team do if you suspect fraud or Principles and Practices do and/or board reflect your organizations wrong-doing by a Maine not represent minimum nonprofit. standards, other than those practices, identify areas for delineated as legally improvement, and plan next steps. required. The value of How to Use this adopting any practice MANP’s Online Resource Library should be measured against Guide the time and effort it would is an extensive collection of guides, links, take to create, implement articles and
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