Recently we held a seminar to provide the results of the 2011 Annual Survey of Regional Not-for-Profit Organizations’ Compensation, Governance and Risk Management Practices.  The session was well attended and a great opportunity to discuss the findings in all areas.

Today, I thought it would be interesting to focus on social media.  We augmented the 2010 survey with a few questions pertaining specifically to social media, and here are a few of the findings from those who participated in the survey:
• 47% of organizations have a social media strategy
• 57% of the organizations who don’t yet have a social media strategy, plan to develop one within the next 12 months
• 34% of those surveyed have a social media policy
• 68% of organizations who don’t have a social media policy, plan to develop one within the year ahead
• 45% of all participating organizations track their social media presence

We also used the opportunity to include two additional presentations focusing on Social Media for Not-For-Profit organizations.  Barb Szychta, Director of Risk Management for Frank Cowan Company, and Christine Rier, Development Director for House of Friendship provided interesting insights and ideas about the benefits and risk factors of incorporating social media into your not-for-profit marketing strategy.

I have included a link to a publication created for Not-For- Profit Organizations.  It includes an article you may have already seen about Generation Y in the Workforce, but also includes two articles written by Barb Szychta entitled “Who is the Online Face of Your Organization and What are They Saying”, and “Creating a Social Media Policy.”  Both have been written to help NFPs understand the risks associated with social media.

If you would like a copy of the summary report from the overall survey, including more results specific to social media, email me at Teresa.norris-lue@cowangroup.ca and I would be happy to send it to you. 

I would also love to hear how you are using social media in marketing your NFP, and we could get into a great discussion about how you are managing the associated risks. 

Article Written by: Teresa Norris-Lue
Vice President, Benefits, Cowan Insurance Group

As Generation X and more importantly, Generation Y employees began to impact the demographics of many workplaces, the need for radically different benefits plans became more evident. What worked in the past for their parents, did not work for their children.

Demographers have predicted that Gen Yers (now aged 17 to 28) will surpass the numbers of “Boomers” (their parents) in the workforce by approximately 2020. This will profoundly change the type of benefits plans employees will be demanding and insurance companies will have to provide to attract and retain key talent.

Gen Yers have a completely different social culture and business ethic. Today’s young business recruits have noticeably different social attributes from their parents.

For example:

• They get married (partnered) and start families much later in life.
• They demand convenience 24/7 and expect personalization.
• They are technologically adept and accept rapid change.
• They live for the moment and for personal gratification, especially while still unattached to a spouse, partner and   amily.
• They are often less acquainted with benefits plans until later in life and even then, they want flexibility and technology-based plans and systems.
• They are looking for more wellness, health and lifestyle options.

Gen Yers have grown up and now live and thrive in the Internet and communication revolution. Technology is second-nature and social networks and instant communication are a way of life rather than merely “tools”.

With this lifestyle, it is no wonder that younger employees want their benefits plans to reflect their culture. They want quick and easy access to information and flexibility with their benefits coverage.

What can we do to satisfy this demand for immediacy and flexibility? We need to endorse, if not embrace benefits plans that encompass greater flexibility (i.e., healthcare spending accounts, flex-centered plans and simpler designs).We need to deliver:

• Direct, provider-based, claims submission.
• Electronic claims submission, directly by the claimant.
• Online enrollment.
• Clear, plain language communication.
• Health and wellness options.
• Online help capabilities for inquiries.
• Mobile applications for access on the go.

In order to gain the support of the Generation Y culture, we must listen and understand their needs; design appropriate applications; and deliver quality products that respond to their preferred way of sending and receiving information – lessening the divide.

Aritcle written by: Teresa Norris-Lue
Teresa is Vice President of Benefits at Cowan Insurance Group.  Cowan works with a number of not-for-profit organizations to ensure all their group benefits, retirement, insurance and other risk management needs are met.

What does that mean and how do we go about doing it in a cost effective manner?

There are five main areas that you need to address, they are listed in order of priority. Here they are:

1. Backup – Have more than one copy of your information and store it in at least 2 different places. There are many choices for storage areas but here are some of the most popular: on your server, on your personal drive, tape or disk brought home daily by a key employee, using a secure cloud (web based) or an off-site storage facility you connect to nightly. Think of this as a house key, you only need one to get in your home but if you are locked out or have lost your key isn’t nice to have a trusted neighbour with a copy.
2. Security – Protect your sensitive files. This includes but is not limited to, payroll, client or customer information, human resource information, etc.  Think of it this way, we lock our sensitive files in filing cabinets, yet we fail to encrypt (lock) files on our laptops. We do not leave sensitive files on our desk;  don’t leave them on your “desktop” lock them up. Your clients have many other concerns, make sure you alleviate the worry, not add to it. Passwords are not enough, they are like leaving the key of the filing cabinet on top of it, a bit more effort but not really secure.
3. Recovery -You’ve done a great job, you make a back up every night and bring it home or send it to the cloud religiously. NOW TEST IT. Once every 3 months work off a back up. This ensures that the backup is working and should there be a problem it is better to fix it now than when it is truly needed, all too often backups are created and never tested, only to find the information is corrupted or can’t be read by the current version of the software.
4. Antivirus – Be proactive with your antivirus software, virus and malware attacks are created daily. Think of your Antivirus as a sports goalie, and viruses and malware as the shots on goal. If your goalie is perfect it is a tie, but one mistake and you lose. Make sure your goalie has the most up to date equipment and training.
5. Budget – Set a budget per employee for security per year. A good working number should be $200 to $400. A solution that works for your organization should be based on users not on technology.

In summary your 5 steps to business continuity are: Backup, Encrypt, Recover, Antivirus and Budget

Article written by: Paul Colussi
Paul has worked in the data information industry for over 10 years, specializing in data security and information transfer.  He is currently a Security Specialist  for I Think Security  a data protection company specializing in file security.

Each winner will receive free admission to the exclusive Impact99 HR Conference on October 6th at Quest University in Squamish, British Columbia (a $350 value), and a 12-month Venti subscription to TribeHR’s social human resource management software (a $2388 value).

Submissions for round 2 of the contest (more than $5000 in prizes) will remain open until October 27th.

The winners are:

Vantage Point

Vantage Point helps other nonprofits in Vancouver build their capacity to promote positive change. They help organizations recruit, engage, train, and retain both volunteers and paid staff.

Internally, Vantage Point compliments their core team of paid staff with hundreds of unpaid volunteers. Associate Executive Director Maria Turnbull says “paid and unpaid team members are recognized and valued as equal yet different contributors, working together side-by-side.”

This integration starts at the very top. “The Executive Director recruits and works with these key volunteers, in sharp contrast to traditional not-for-profit HR models where volunteers are recruited and engaged through one or two junior staff members”

Vantage Point is also firmly committed to being an online resource, engaging their community through social media, and using social software to connect their employees with each other and the organizational vision. They’re a 67 year-old nonprofit that’s clearly ready for the realities of business in the 21st century.

Whistler Community Services Society

WCSS administers more than 27 social programs in the city of Whistler, British Columbia, and surrounding regions. Their offerings spans the range of social services: from environmental sustainability to drug education, and from feeding the hungry to helping seniors stay active in their communities.

WCSS works to ensure a stable amount of funding for all of their important services. Instead of relying only on donors or government support, they operate a thrift store, and also recently opened a building materials and furniture salvaging and resale service. Executive Director Lorna Van Straaten calls it tying “environmental and recycling solutions to funding of social service programs.”

Financial independence allows WCSS to quickly deal with emerging problems, and “react to community needs without having to determine funding for it first.” As with any nonprofit, there can be struggles. Van Straaten says that “better reporting, better employee training, better goal setting and the feeling of our team as a community would all help take WCSS to the next level in its evolution in the community!”

TribeHR is happy to help. Congratulations to both winners! We received a ton of impressive submissions; all of them will automatically be re-assessed in the next round of the contest.

In 2010, an advisory group comprised of members of Waterloo Region Not-For-Profit agencies, determined it was time to update the questions and expand the audience to provide a benchmarking tool that could be made available to a broader group of Not-For-Profit organizations. 

At the same time, Cowan Insurance Group volunteered to take over the administration of this survey to help not only with the gathering of data, but to also provide additional insight around the findings.  Having an independent third party administer the survey also provided an increased level of confidentiality for respondents, which increased participation. 
 
An advisory group met again this year to review and update the 2011 Annual Survey of Regional Not-for-Profit Organizations’ Compensation, Governance and Risk Management Practices.  The reach of this year’s survey has been expanded from within Waterloo Region to a number of regions in south and southwestern Ontario (e.g. Hamilton-Niagara, Guelph Wellington)
 
All survey responses will be gathered anonymously and will only be examined in aggregate to ensure that confidentiality is maintained.

How your Not-For-Profit organization can participate
The link below will take you to the survey.  It includes a range of questions dealing with topics including salaries, compensation, benefits, board management and risk management and, new this year – social media.

The survey will close end of day Wednesday October 12, 2011.  
Survey Link

How you get the results
Cowan Insurance Group will be creating a summary report that will be available in late November.  The results will be presented at a Not-For-Profit Seminar held at Cowan’s Building in Cambridge on November 16th between 8:30 and 10:00 am.  More details on the seminar will be distributed in October.  You can pre-register by emailing communications@cowangroup.ca.

In return for participation, you may also request to receive a copy of the summary report. 

Article Written By: Teresa Norris-Lue
Vice President, Benefits, Cowan Insurance Group

Beyond capacity building, NPO partnerships have also provided opportunities to realize greater operational synergies.  For example, a consortium of NPOs can achieve procurement savings by purchasing as a collective instead of as individual entities.  One could argue, therefore, beyond the influence of regulatory considerations, that NPO partnerships function as an effective risk management tool which enables NPO leadership to address both strategic and operational priorities. But what of cross-sector partnership –between NPOs and private sector (PS) organizations; can they also support the NPO mandate? Increasingly, research studies suggest that the answer to this question is yes.

Opportunity Knocks

Changes in the business landscape are providing strategic opportunities for developing cross-sector partnerships. These changes include an evolution in leadership thinking – which recognizes that social responsibility is fundamental to longer term financial performance, shifting consumer behaviours and more vocal employee expectations for positive corporate citizenship efforts.  A recent ThirdSector study suggested that PS organizations are realizing that partnerships with NPOs offer the potential to favourably impact their market reputation as well as employee productivity. The culmination of these factors suggests that PS organizations are increasingly receptive to cross-sector partnerships as part of their business activities. 

What’s In It For Me?

The value proposition for building cross-sector partnership should be no different than that which brings two NPOs together – it’s an effective risk management strategy. Cross-sector partnerships offer opportunities for sustained access to qualified Board/program volunteers and functional/technical expertise. Beyond access to a spectrum of resources, research findings also suggest that these partnerships build an affective connection to the NPO which improves the likelihood of securing on-going program funding from both employer and employees.

A Relationship Building Roadmap

As with any successful partnership, there are common areas of interest which present themselves through dialogue and interaction. So as part of your strategic planning efforts, step out of your comfort zone. Someone once told me that it is physiologically impossible for a turtle to move forward without sticking its head out of its shell. Translation: no risks, no rewards.

Consider attending select local industry association networking sessions or connect with business leaders through your existing donor relations to get a pulse of business priorities/challenges. Also, poll your volunteers who are employed in the private sector to better understand how the volunteer experience might better align with their job/career expectations.

Next, review these collective insights against your strategic/operational mandates to identify potential areas of organizational synergies and reciprocity with select PS organizations. Consider using a S.W.O.T approach, for example, to gauge level of strategic alignment. Perhaps their business focus can benefit from your outreach or advocacy competencies (e.g. your Strengths). Also, consider where partnerships can address mutual organizational Weakness/environmental Threats.  For example, how do your Human Capital needs align with their Talent Management priorities?

The changing business climate has presented NPOs with opportunities to extend their PS relationships, beyond philanthropic donations, to ones that offer sustained capacity building.
What is your organization doing to leverage this momentum?

Article written by: Dave Nanderam
Dave is President of TapestryBuilder, a consultancy which assists clients in managing risks
associated with their human capital assets by expanding the utility of their corporate citizenship initiatives to address employee engagement priorities.

Fear, while keeping us safe from harm or mistakes, can also deny us opportunity. And if we don’t find a way of overcoming that fear, we’ll never enjoy the benefits of the opportunity that is within our grasp.

In many ways, I think a general fear of the media is denying many non-profits (not to mention countless, for-profit, multi-million dollar corporations) the opportunity of the powerful exposure the media can bring. And let me be truthful in saying that I understand where this fear comes from! Since the days of Watergate, media in general has been seen, in some ways at least, as a group of people whose sole purpose is to uncover secrets and relentlessly pursue stories, regardless of the subject matter. Add to that the well-worn phrase “I was mis-quoted” and news magazine programs based on “investigative journalism” that show interview subjects being badgered incessantly and it’s no wonder that the thought of being interviewed by the media ranks right up there with a trip to the dentist.

These examples, while fair, do not tell the entire story. The truth is that the reporters who call you from time to time are no different than you. They are simply doing their job and, on that particular day, that job required calling your office. Sure, the pressure of deadlines can add to the anxiety and urgency of the call. But if we start from a place of mutual understanding, we stand a better chance of success for all involved.

If you do harbour a fear or even a general distrust of media, I encourage you to break down the barrier. Getting to know one or two of your local reporters would be a good start. Invite them in for a tour or meet them for a coffee. Have a chat and share your story in a more casual setting. Then, when that inevitable call from the media comes, you’ll know a little more about that person on the other end of the line. You’ll probably also know a little more about their job and how it works.

As hard as it may be to believe, it’s very difficult to “look bad” or do irreparable damage during a conversation with a member of the media. On the vast majority of occasions, the reporter is merely looking for a statement or a stat to support their story. While being quoted or having a microphone thrust in your face can be intimidating, the short segment that appears on the air or in print pales in comparison to what you thought was in the effort of getting it there. The neat thing is that once it’s there, every listener, viewer or reader knows the name of your organization and quite possibly a little more about it. Not to mention that — and I’ll let you in on a little trade secret here — once you answer that first call from the media, you’re more likely to get another. Reporters talk, too, and an organization that earns the label “media friendly” will find itself being called more often. And that means more media mentions of your organization.

So the next time that fear of the media grips you, I encourage you to find a way to overcome it. You’ll find the inspiration for that at the intersection of opportunity.

Article written by: Mike Farwell
Mike is a journalist who has spent more than 10 years reporting on stories and hosting talk shows about the people and places of Waterloo Region.

The pace of change, shifting government funding priorities and fund development competitive realities for non-profits has resulted in a greater need for non-profits to be more strategic in their thinking to increase their ability to assess their opportunities and challenges, and to determine the levels of risks and investments they are prepared to undertake.

Divided Board and staff reactions to strategic planning, particularly the workshop, often emanate from a wide range of previous experiences. Some experiences have been energizing, focused and have led to clear directions and demonstrated success. Other experiences have been too focused on process, wordsmithing, and have lacked clear direction with no measureable commitments. Board volunteers and staff are busy people. Contributing several evenings or a weekend to a strategic planning workshop can be a challenge, especially if suspicions exist as to clarity and productivity.

One trend that can evolve within a non-profit organization where there is a lack of commitment to strategic planning is to suggest that staff or a small group prepare the Strategic Plan and then bring it to the Board.  This is not a preferred approach as the Board has not worked collectively or gained a common consensus on the Mission and Strategic Directions. The Board needs to have committed ownership to the Mission and Strategic Directions which are fundamental components for effective governance.

Some tips to consider gained over the years in facilitating Strategic Plan Workshops are as follows:

• Ensure the Board and senior staff, through advanced preparations, understand the importance of and are committed to strategic planning as key governance and management tools in advancing the organization’s outcomes and value to its stakeholders;
• Do not let current events or being overwhelmed by trends and changes become an excuse for not undertaking strategic planning. It is for these reasons that strategic planning is even more important;
• Design a workshop agenda that builds momentum and balance focusing on both Vision, Mission and Principles discussions and on specific Strategic Directions and their outcomes. This addresses both the philosophical and the practical perspectives that exist within any group of volunteers and staff;
• Effectively manage the need for some people to word-smith to the point of boredom. Take wordsmithing off-line, form a review group or use other tactics;
• Commit to completing the agenda for the Strategic Planning Workshop within the timeframe
  provided. Allocate times for each agenda item and move forward via consensus which does not mean 100% approval;
• Ensure all voices are heard fairly and listened to, but keep the discussion focused and flowing;
• Keep to the agenda breaks, incorporate some fun and always ensure progress is being made.

Strategic planning workshops involve preparation, effort, sharing, consensus-building and evident outcomes. They can build camaraderie, teams and be energizing experiences. The ability to manage these sessions effectively and towards an outcome, often determines the type of experience that participants will have which will then determine their alignment with and support for the Strategic Plan that evolves.

Article written by: Fred Galloway
Fred is President of F.J. Galloway Associates Inc. of London, Ontario and works exclusively with non-profit, community organizations in the development of strategic plans, organizational development initiatives, governance and related management assignments.

Directors & Officers insurance (D&O) provides financial protection for the personal assets of your board members if they are held accountable for a wrongful act that causes someone a financial loss. Lawsuits can arise from a variety of sources, including – but not limited to – government agencies, employees, volunteers, creditors and financial supporters.

The general liability insurance purchased by your Not-for-Profit organization protects you against bodily injury and property damage to a third party, but not for claims against your Directors and Officers for wrongful acts. That’s why you need D&O liability coverage.

Your board makes many decisions for your organization such as: setting policies and procedures, hiring, signing contracts with other service providers, financial reporting, and setting the overall direction of the organization.

In the case of Not-for-Profit organizations, the most common lawsuits are surrounding misappropriation or misuse of funding, incorrect financial reporting and employment practices (discrimination, wrongful dismissal etc). Regardless of the actual size of a settlement or lawsuit, organizations must also deal with the required effort to defend the case, and the associated legal defence costs.

Here are a few claims examples involving Not-for-Profit organizations:

• Organization A received donations after a catastrophe. Half of the donations were used for the catastrophe, the other half put into reserves for future events. Donors filed suit, and Organization A was forced to reverse the course. Legal expense was the chief financial exposure in the case.
• In Organization B, the CEO of a large charity misappropriated funds. A suit was filed against the board because
  appropriate measures were not taken to effectively protect the organization.
• In Organization C, the federal government alleged certain tax declarations were made erroneously.  The Directors and Officers were held liable for incorrect or misrepresented information submitted.

Coverage Variations
Standard D&O policies may not be sufficient to meet all of a Not-for-Profit’s needs. New products and endorsements are being developed at a rapid pace so your wordings should regularly be reviewed. Here are some examples of insurance policy endorsements:

Employment Practices Liability – covers wrongful acts arising from the employment process, such as wrongful termination, discrimination, sexual harassment.

Fiduciary Liability – covers errors with respect to the administration of employee benefit programs.

Dedicated Policy Limit (Non-Rescindable Side A) – An additional limit which sits above a traditional D&O policy that responds to the losses of the individual Directors and Officers, but does not extend to the Not-for-Profit organization.

Priority of Payments – The losses of the individual Directors and Officers will be paid first, with any remaining limit paying the loss of the Not-for-Profit organization.

Severability of Interest – A fact or knowledge of one insured person will not affect coverage for any other insured person, for the purposes of applying an exclusion.

Non-Cancellable – Coverage cannot be cancelled by the insurer for any reason except for non-payment of premium.

With laws and regulations changing regularly, and with the intent of making organizations of all types more accountable, it is important to consider the placement of D&O liability coverage. It will protect the future of your organization, and will assist you in attracting and retaining qualified and motivated board members to help your organization continue to do the good work that you do.

Article written by: Mary Mancuso
Commercial Account Executive, Cowan Insurance Group

McCreesh was in Waterloo recently speaking to a group of close to 100 people at Capacity Waterloo Region’s Board Governance Bootcamp with Wilfrid Laurier University. In addition to his Imagine role, he is a management consultant, a corporate director, previous Board Chair of YMCA Canada and YMCA of Greater Toronto and several other non-profit boards. His experience on both sides of the “profit” equation is vast.

Corporate scandals of the past few years have precipitated many changes in the world of governance, said McCreesh. Nonprofits need to track what’s happening in the corporate sector as changes there trickle down to the charitable sector. “Governance is governance,” he said.

McCreesh emphasized four areas of emerging interest we should be paying attention to: board and director evaluation, management of the CEO and Executive Director, risk oversight, and evergreen board recruiting. Don’t tackle them all at once, he cautioned, but figure out the one that you can, and should, focus on now.

“Complacency is everyone’s and every organization’s worst enemy,” McCreesh explained, and board evaluation and feedback can drive better performance. We also do a terrible job in this sector of managing our organization’s leaders, added McCreesh, yet it’s the most important job directors can do. “If you manage that individual poorly, you manage the organization poorly.” Focus on five key areas, he suggested: hiring and orienting, succession planning, performance management and coaching, compensation, and other rewards and development. If you get the first two right, “you’ve solved 90 percent of your problems.”

Whatever your area of focus, it’s our responsibility as directors to keep exploring new, emerging practices. “As soon as you declare you’re ‘there,’ you won’t be.”

For a copy of McCreesh’s presentation, just send us a quick email.