Tag Archive for 'organization'

The Nonprofit Version of Y2K?

Joe Brown ▪ May 14, 2010 ▪ 2 Comments

Do you remember Friday, December 31st, 1999? I do. I remember rushing to backup all of my business and personal data to CD-ROMs. I remember wondering just how fast and how far the market for COBOL programmers was going to fall. I remember losing count of how many times I heard Prince‘s 1999. I remember staying in that night to watch CNN, wondering if the anticipated global computer meltdown was going to occur (and feeling, I admit, just a bit of a letdown when it didn’t).

Over ten years later, heading into this mid-Spring weekend, I find myself experiencing a bit of déjà vu. If you are at all involved in the nonprofit world, you probably know by now that this Monday, May 17th, marks a significant deadline for nonprofit organizations nationwide. Under the provisions of the Pension Protection Act of 2006, any organization that has not filed its annual tax form with the IRS for at least one of the past three years by that date will lose its tax-exempt status. The 2006 law actually only changes the game for organizations with annual revenue below $25,000, which have for decades been exempt from filing requirements. For larger organizations, the filing requirement has not changed.

How hard could it be?

If no action is taken, more than 365,000 nonprofits will lose their tax exemption — along with their ability to accept tax-deductible donations and receive foundation grants. But if this fate befalls an organization, it means that at least one of the following statements are true of its leaders:
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Come Together? Right Now? A Discussion of Strategic Alliances and Partnerships

Joe Brown ▪ May 12, 2010 ▪ 0 Comments

On Monday, I had the opportunity to attend a highly informative and engaging forum which brought together government and nonprofit representatives to discuss the topic of strategic alliances and partnerships among nonprofit organizations. While the discussion focused on New York State’s nonprofit sector, the challenges, considerations, and ideas discussed are applicable to organizations nationwide. In the absence of a video or audio recording of the session, I wanted to share this detailed recap and my impressions of the session.
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Great News for Harlem School of the Arts!

Joe Brown ▪ April 21, 2010 ▪ 0 Comments

Last week, I offered an extensive look at the financial situation that led to the closing on April 1 of the Harlem School of the Arts, an institution that has served thousands of members of its community for nearly 50 years.

This morning, New York City Mayor Michael Bloomberg announced that the closing would only be temporary. The Mayor, other city officials, and many donors have stepped in to save the school, which will reopen this Saturday.

“With the help of dedicated New Yorkers, private funders and arts education advocates working together with the city and local officials, the Harlem School of the Arts is now on a path to a new and sustainable future, and that’s great news for everyone.”
–Mayor Michael Bloomberg

The New York Times also reported that five new members of the board of directors have been selected (it is not immediately clear if these new directors will replace or join the six current directors, or if one of them will assume the board chairmanship). Charles Hamilton, managing director for strategy and development for La Cité Development will assume the role of board chairperson. The new directors include Ephraim Emmanual, president of the Harlem School of the Arts Parent Association. Adding the voice of the students’ parents to the school’s leadership is a positive step toward improving communication with this constituency, which was clearly missing during the school’s decline over the past few years. Mary Schmidt Campbell, Dean of New York University’s Tisch School of the Arts, is also among the new directors.

This morning’s announcement is great news for the school, the community, the city, and the arts. I hope that the new leadership will quickly turn its attention to righting the financial woes that I described in my earlier post, that the new donations that have and will flow into the school receive the highest levels of stewardship, and that the school continues to serve the city’s children for the next 50 years and beyond.

Photo credit: bfick

Mission Connected: Human Resources Maturity, Part 2

Joe Brown ▪ April 16, 2010 ▪ 0 Comments

In my previous post on the Mission Connected Blog, I examined the first two of three basic phases in a nonprofit organizations’ human resources maturity and their implications for the design and effectiveness of key human resources processes. My new post, “Human Resources Maturity and the Three P’s, Part 2“, examines the third and final phase and outlines some questions that nonprofit managers and human resources professionals should ask about their own organization.

By the Numbers: Harlem School of the Arts

Joe Brown ▪ April 14, 2010 ▪ 3 Comments

For an update to this story, please see
Great News for Harlem School of the Arts!

New York City’s Harlem School of the Arts, a nonprofit institution which for nearly half a century has offered children and young adults training in dance, music, theater, and the visual arts, locked its doors on April 1st. A decision on whether or not the closing will be permanent is expected next week. The story has attracted considerable attention from the media, including multiple stories in the New York Times and the New York Daily News and on WPIX. It has also triggered emotional reactions from the community, including former and current students and parents. A Facebook group started by supporters of the school has grown to over 1,300 members in two weeks.

Nonprofit effectiveness is not necessarily measurable in financial terms. Much of the media coverage and public reaction has highlighted strong feelings and opinions on the part of the community as well as current and former administrators and board members. There does seem to be a general consensus among the media, public, some employees, and even some former board members that the school’s downfall resulted from an extended period of fiscal mismanagement. Parents in particular have been very vocal about their lack of confidence in the abilities of the current board, and while the board is seeking at least $500,000 to reopen for the remainder of the academic year, parents and other members of the Facebook group are suggesting that donations not be made to the school until such time as the board is replaced.

While one New York Times story highlighted a number of specific financial issues, including questions about the school’s failure to meet the benchmarks of a $1.5 million grant to strengthen its financial, marketing, and fundraising efforts, the use of a $1 million mortgage taken on the school’s building in 2007, and nearly $500,000 in payroll tax arrears, it failed to provide what I could perceive as a complete and objective look at the problems that had befallen the institution. To satisfy my own curiosity, I decided to take a look at the most recent form 990s as well as the media reports and other publicly available information. In this post, I want to share some of what I found to be some of the most notable data and patterns from those findings, as well as some questions that my findings raised for me and that might also be on the minds of those interested in the school, including students, parents, donors, and funders.
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Mission Connected: Human Resources Maturity, Part 1

Joe Brown ▪ April 13, 2010 ▪ 0 Comments

My new post on the Mission Connected Blog, “Human Resources Maturity and the Three P’s, Part 1“, takes a look at the first two of three basic phases in nonprofit organizations’ human resources maturity, each of which has implications for the design and effectiveness of key human resources processes. Later this week, part 2 will examine the third and final phase, and outline some questions that nonprofit managers and human resources professionals should ask about their own organization.

Quixote, We Hardly Even Knew Ya!

Joe Brown ▪ April 8, 2010 ▪ 4 Comments

“He was spurred on by the conviction that
the world needed his immediate presence.”
– Miguel de Cervantes, Don Quixote

For 400 years, Don Quixote has stood as one of the most influential works of Western literature. The official lifespan of the Quixote Foundation, named after Miguel de Cervantes‘ whimsical character, will be only 20 years, but the foundation’s leaders hope that its impact will be as eternal.

They are, you see, choosing to go out of business.
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