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The key is to be able to articulate the capital story to outsiders and insiders, including the board, and show where this capital is recorded and what its ultimate use will be. Change capital can be reflected entirely in the unrestricted Impact in the Year of the Grantnet assets section of the balance sheet. Figure 1 shows three There are a few ways to show the impact for the year in whichreporting options. In the first example, unrestricted revenue the donation is received, which gets reflected on the state-includes risk capital that had been received with no spe- ment of activities (often referred to as the income statementcific deliverables—just in support of the plan overall. As the or the profit and loss [P&L] statement). The variations are asurplus accumulates from one year to the next, the capital is function of whether the capital is intended for activities thata part of unrestricted net assets, until it is spent. can be clearly allocated between operating and nonoperating. In the second example, the board set up a separate fund For those of you who have been following the changes infor the capital campaign, and this board-designated fund the nonprofit accounting standards, the Financial Accountingis broken out separately as a component of unrestricted Standards Board (FASB) has finally released its new guidelinesnet assets. on the presentation of nonprofit financials, but these guide- lines still have one element remaining to be resolved in a future In the third example, the funder restricted the use of funds, phase—and that is the definition of operations. The clarifica-such as for an evaluation system or technology, and these tion of operating versus nonoperating sources of funds hasfunds carry forward for several periods into the future—thus brought with it much difference of opinion among the account-they would be deemed temporarily restricted net assets. ing profession, nonprofit leadership, and the funding com- munity, so that’s to be continued. Given that the FASB hasn’t All of these examples are completely appropriate presen- figured it out, we’re okay with accepting the confusion as to thetation formats. The key is to be able to articulate the capital correct way of showing operating versus nonoperating results.story to outsiders and insiders, including the board, and showwhere this capital is recorded and what its ultimate use will be. Figure 1SPRING 2017 • WWW.NPQMAG.ORG - T H E   N O N P R O F I T   Q U A R T E R LY  ​49

It’s very important for the financial story to explain the purpose of the capital, how capital’s been utilized, and the activity to date. While there are different interpretations of operating versus Figure 3nonoperating funds out there, organizations should be consis-tent in how they present their capital activities, and should be Capital grants are shown “below the line”able to explain them. The following examples illustrate various Includes only grants for operationsways to represent operating expenses and related revenue inthe budget and for management reporting purposes. In this example, growth-related expenses cannot be isolated from In Figure 2, the actual dollars that come in for capital have operating expensesbeen grouped with operating results, because it’s difficult todifferentiate these revenues and expenses designated Grant for growth capital shown belowfor an overall growth strategy with ongoing activities. It’s the linevery important for the financial story to explain the purposeof the capital, how capital’s been utilized, and the activity to *Any growth capital not yet used remains in temporarily restricted net assets, which is not shown heredate. It’s also very important to keep an eye on any milestonesassociated with the plan. Where it is possible to separate the expenditures related to the growth trajectory or the milestones in a capital campaign, Figure 2 an organization might present its capital grants and expen- ditures in a separate column (see Figure 4). This shows No differentiation between operating and capital activity through satisfaction of the terms of restricted grants or just general operations. The FASB’s goal is for nonprofits Grant(s) for growth capital lumped in to distinguish operating results from nonoperating results, so with other foundation funding this idea of a separate column might very well be where they end up. Expenses related to expansion included with operating costs in Figure 4 various line items*Any growth capital not yet used remains in tempo7rarily restricted net assets, which is not shown here In Figure 3, the expenses related to the capital cannot be Capital grants and expenditures are shown in a separate columnseparated out, but a grant was specifically given in support of Grant for growth capital wasa growth strategy. The grant for growth capital is therefore restricted, and is being released asshown below the line of operating results, and the presen- milestones are accomplishedtation is clear with respect to how much of the growth capital In this example, growth-relatedhas been used in the current year. In essence, the organization expenses can be isolated fromis building a deficit, in that it has operating revenues that it is operating expensesaccounting for, and then it has expenses that can’t be isolatedfrom growth-oriented activities—such as expenses related to *Any growth capital not yet used remains in temporarily restricted net assets, which is not shown heretalent development or fundraising.50 ​T H E   N O N P R O F I T   Q U A R T E R LY  WWW.NPQMAG.ORG • SPRING 2017

Figure 6 Figure 5 illustrates the idea of capital for physical property,such as buildings. Many organizations have operating budgets,and they may be funding depreciation over time but they don’tnecessarily have capital budgets. The sources and uses oftheir capital needs would look something like the below,and on an ongoing basis the organization would continue tofollow the concepts of capital budgeting for replacements andnew acquisitions in the future. Figure 5 Establishing an original budget for a scaling plan. Typi- cally, when you first do a growth plan, you develop an original Sources and uses of capital budget for three years and give your best guess as to what it will cost to achieve the goals that you have. As the breakouts fromMonitoring the Growth Plan Figure 6 show (below and following page), this scaling planWhen capital represents funding for a growth or scaling cam- had three key deliverables over a three-year period for a $1.2paign, the mechanisms for monitoring results become critical. million growth-capital campaign. These three-year budgets hadGrowth campaigns are based on best estimates of operating lots of detail and assumptions that went out to funders explain-costs at levels of scale never experienced by the organization. ing what the plan was and what it would cost. We can’t stressThe plan is necessary as a basis for initial investment, but the enough that documentation of those assumptions is critical.monitoring framework needs to allow for the likely possibility Organizations are giving it their best shot, but they’ve certainlythat the plan may need to change as time goes by to reflect never done this before, and the funders don’t necessarily knowlessons learned from the scaling efforts. whether the numbers are exactly right or wrong, because they are unique to each organization and to where each organization Figure 6 is an example of a report format that is critical to is and where it wants to be.understanding and monitoring an overall growth and scalingplan. It’s not used as the organization’s annual budget; rather, Spending analysis at the end of year one. Thus, theit is a budget document that is critical for planning and capital assumptions behind the growth plan are absolutely criticalfundraising efforts, reporting progress internally and to inves- as benchmarks for the future—so that after the first year ortors, and helping to communicate strategic changes in the plan six months, however often you need to monitor it, you can askalong the way to stakeholders. yourself how you are doing. You do a spending analysis at the end of year one. An organization might ask: How are we doing with the creation of the key leadership positions? Well, we’ve only spent $50,000; we’re behind. We haven’t been able to find the chief development officer that we were looking for. The evaluation system? We’re right on track. We’re spending and we have an accounting system that tells us that. We’re able toSPRING 2017 • WWW.NPQMAG.ORG  T H E   N O N P R O F I T   Q U A R T E R LY  ​51

track that these costs for these vendors are for the evaluation This is the financial story of the growth plan, and this is thesystem. And then, lastly, the technology platform actually cost financial story of the capital campaign as it relates to growth.us $100,000 in year one. Is it an overrun? Are we spending more Armed with this analysis, an individual raising dollars for anthan we thought, or is it a timing issue? Are we accomplishing organization can go to a funder, and say, “Here’s where we are,this deliverable sooner than we thought? and let me tell you why we need to increase the amount of the investment in future years.” Funders who choose to invest These are critical questions for an organization vis-à-vis in capital are partners with their grantees. They think aboutmonitoring internally how they’re doing against their plan, but how they can be supportive. They ask themselves, “What areit is equally as important to be able to speak to their funders the right questions to ask that are strategically inclined soabout the growth plan and say, “Here’s where we are.” that we’re working toward a common goal?” This is not a compliance framework; it’s a partnership framework. And, So, at the end of year one, an organization might con- for the organization that’s carrying out that plan, it’s reallyclude: We thought we were going to be able to do this for $1.2 important that this one-pager—which looks fairly simple butmillion. Here’s what we learned from year one. We’ve refined has a lot of thought behind it—make the difference in thatour thinking, and let me tell you what that means for changes communication, as the story often evolves. If in year one thein the future—years two and three. That’s the third part of organization is off, that doesn’t mean it did something wrong.this analysis. It doesn’t mean it made a mistake and the funder will not be happy. It means that here’s what it learned and here’s how it’s Revised projections at the end of year one. Finally, going to adjust for that in the future.you want to do a revised projection at the end of year one.An organization might decide: In the case of the leadership So, we encourage you: if you’re thinking about a growthpositions, we’re going to move the hiring to year two and year campaign, have one in the works, are building one, or are inthree, and we’re still going to be able to do it with the $600,000 the middle of one, come back to these framing questions andwe expected. As far as the evaluation, we’re on track exactly ask yourself what it would take for you to understand andas we planned it. As concerns the leadership positions, there clearly articulate the financial story around your plan.will be more in year two, but we’re fairly confident that withthe reaching out we’ve done and the candidates we have in line We’ve gone through the different sources of capital,for these positions, we’re going to be able to catch up and be on the different purposes, the different ways to report on it.target for the leadership hiring. And, lastly, with respect to the Raising dollars is not just fundraising for the operations fortechnology platform, we thought it was going to cost $50,000, the year—it’s for long-term sustainability, for an ability tobut it cost us $100,000, and it’s not going to go down in the grow and experiment and take risks. It’s a longer-term frame-future. We have to accept that we’re going to need more money work. It’s very difficult to seek this type of capital without afor technology, and we need to think through what the total long-term view toward the strategy that you want to imple-cost will be. So, based on this growth plan and its first-year ment. If you can’t tell your multiyear financial story, it makesresults, it really needs to go up to $1.3 million from $1.2 million. it very difficult to raise capital. On the flip side, if you have a well-articulated strategy with a well-documented financial plan, you’ll be in a much more successful position going out and raising the capital that you need not just to operate but also to thrive. Note 1. For more on reserve grants, see Hilda H. Polanco and John Sum- mers, “Keeping It in Reserve: Grantmaking for a Rainy Day,” Nonprofit Quarterly 23, no. 1 (Spring 2016), nonprofitquarterly.org/2016/05/02 /keeping-it-in-reserve-grantmaking-for-a-rainy-day/. • • • To comment on this article, write to us at feedback @npqmag.org. Order reprints from http://​store.nonprofit quarterly.org, using code 240107.52 ​T H E   N O N P R O F I T   Q U A R T E R LY  WWW.NPQMAG.ORG • SPRING 2017

Some Capital Questions AnsweredThe Nonprofit Quarterly asked Hilda Polanco to answer some questions about crucial capital strategy for nonprofits . . .What is the benchmark for an accumulated surplus or for make it with three months.” So, every organization has to make thatreserves that people are supposed to have in hand? number their own. It’s the number that’s going to shift someone from crisis to long-term strategy and then grow from there. So, that wouldHilda Polanco: I think the right answer here is, it depends. Of course, be my minimum number: for some, it’s one month or two months ofthat’s not the answer we want to hear, because we need to know a payroll, two months of rent, and they can sleep at night. It depends.number. So, it depends on the business model. It depends on howurgently an organization may need to respond. A relief organization How do you position an organization to ask for changeneeds to have a higher availability of reserves than some other types capital? Under what conditions do you think that it isof organizations, because it may need to react very quickly, without awarded?much time to raise needed funds. But putting aside exceptions likerelief organizations or other organizations that need immediate cash HP: I think the positioning is about focus and clarity. So, if an organiza-in large sums, for regularly operating organizations, the rule of thumb tion raises money to run programs to deliver its mission, that’s what(for bankers and others who think about this) is three to six months. funders, individuals, foundations support. And they support that year’sBut three to six months of what? Three to six months of total operating operations—and, if that’s all that we can position, they support theexpenses is the most conservative estimate. What that would mean is operations for the year, number of people served. That’s what we canthat if the world were to stop in some significant way—revenues stop raise money for. If we’re positioning ourselves for change capital, for riskcoming in, the perfect storm happens—we have three to six months capital, we need to have a vision of that. So, I think a first step toward aof operations in our reserves. capital campaign is that there needs to be a plan where an organization allows itself to dream beyond the restrictions of available resourcesThe issue with that is that sometimes organizations have grants that today: If I could develop our curriculum in this way to get outcomesfund specific activities, and they’re thinking: If I didn’t have those grants, of these types, what would that take, and how would I know that I’veI wouldn’t incur those expenses. So, an organization in this position succeeded when I get there? So, clarity around what the outcomes are.might modify the base for calculating the number of months to have That’s what investors are going to invest in—those outcomes. And, toin reserves to only include“core”operating expenses, and decide what get there, what will it take? Where do I need to develop my infrastruc-it would take for the organization to responsibly cover a period of three ture? What do I need to do in the form of experimentation?to six months of its core operating costs. And then there’s my definitionof adequate core operating expenses that I share with folks when we I think it’s a process that is very different from one’s regular operatingare together in trainings, which I often think of as, what would it take budget planning, which is somewhat focused on the here and now.Thisfor the executive director to sleep at night? And risk tolerance varies. is giving the organization the permission to think beyond the currentI’ve had EDs tell me, “It takes a year of core operating expenses for me and then articulate that in a well-positioned plan. A growth campaignto sleep at night,” and others say, “Three months is all I need—I can is going to be funded by those funders who have already invested in (continued next page)SPRING 2017 • WWW.NPQMAG.ORG  T H E   N O N P R O F I T   Q U A R T E R LY  ​53

you and have seen the outcomes and believe in them. It’s somewhat a growth plan like any other growth plan. We’ve worked with fundersunusual for funders to invest in growth capital for organizations they’ve who have said,“Tell me the number.What is the number that is going tonever funded before. Having said that, there is a growing level of phi- allow this organization to rebalance (meaning replenish) those deficitslanthropy that focuses on identifying a good idea and then helping an and go forward in a strategic way? I don’t want to fund the number thatorganization scale that. With that clarity, I think the organization will will just make them whole; I want the number to make them whole andbe best positioned to go after those grants. That’s assuming that this position them for success in the future.”And that organization needs toquestion is about the capital campaigns in that context, not working know what that number is—not only the accumulated deficit, whichcapital or any of the others. comes right from the financials, but also what the long term will be.How do you convince foundations to replenish capital Third, when you’re recovering from something that didn’t go as wellwhen you’ve had a number of bad years, and how do as you hoped, there more than ever you need clarity—a partnershipyou convince them that some of those bad years could between the staff and the board for ultimate outcome. So, how is theperhaps be put at the feet of not great management, board a part of that—not only on paper, but also how is the boardor what people perceive as not great management? a part of those asks and part of the commitment that that potential funder could see?HP: I think the answer to that is very similar to the one we just covered, What are the barriers to building strong balance-sheetwhich is a mix of clarity, cost, and outcome. So, first, the clarity in this health?case may require a bit of humbleness—it may require that you say,“We are in an accumulated deficit of $75,000, and we know how we got HP: One of the barriers, I think, is not understanding the businessthere.”This statement shows that you understand how you got to thatdeficit, and as such, you’re more likely not to repeat it in the future. So, model and the revenue and expense drivers that get an organization tounderstanding what caused the deficit would be the beginning of clarity. its final results for the year. So, if we understand that we’re delivering services within our means and we’re accepting grants that cover theirSecond, the clarity would be in understanding what you are doing differ- costs—and if they’re not, we’re raising the difference—we have toently that is going to ensure that the deficit is not a repeatable offense in have an eye on the model, because the balance sheet is not an accident;the future. If the issue that caused the deficit is about management, and it’s an outcome of what has transpired over the life of the organization.that’s already evident to the funder and to the leadership, then how is So, stabilizing the business model so that the organization generatesmanagement changing? How is the board engaging to ensure that those sufficient revenue to cover its cost plus—that would be the most criti-activities that caused the deficit have been turned around? That’s only cal step to having a strong balance sheet. And I’ll end this answer bypart of the way. Now, the question is, how is this organization going to be saying, if the revenues and expenses in the budget that you presentsufficiently strong and sufficiently strategic to turn the corner with those to your board for approval are absolutely equal—which I see verypast challenges and go forward in a positive way? And that goes back to, often—then the message is, we have every intention of spending everywhat’s your plan? There is a reason the organization exists. It may have dollar we raise, and we are taking no steps toward strengthening ourhad positive years and then had a few negative years. Well, let’s come balance sheets. So, a first step toward strengthening your balance sheetback to the positive.What is it about its approach to its work that allows is making sure that you’re in your budget and setting the parametersit to achieve those outcomes? Once you’ve gone beyond explaining the for the year—budgeting for a surplus, which is meant to increase thepast and indicating how the future is in a different direction, then it’s strength of your reserves.54 ​T H E   N O N P R O F I T   Q U A R T E R LY  WWW.NPQMAG.ORG • SPRING 2017

Want to Improve Governance? NONPROFIT GOVERNANCE Context Matters by Louise Coventry How indigenous actors adapt and respond to external demands for “good governance” points to the “possibility of emerging hybrid models of governance that draw on and integrate both local and international understandings of governance. Therein,” the author concludes, “may lie the future for nonprofit civil society governance.”That context matters is a truism. power across the globe, it is important and organizational contexts. Moving us Leading academics exploring that Western and westernized actors such into less familiar territory are the five issues of governance consis- as donors, advisors, and the international contexts that follow—cultural, politi- tently argue that governance partners of local civil society organiza- cal, legal, social, and historical.models need to be contextualized to tions make serious efforts to learn fromensure their relevance and applicabil- those of the Global South. How do they Sectoral Dimensionity.1 So, how exactly should context be navigate the challenges they face with What I mean by the sectoral contexttaken into account when approaching resilience, creativity, and versatility in is twofold. First, there is the extent toissues of nonprofit civil society gover- applying imported ideas, adapting them to which insights from corporate gover-nance? Here, I offer one answer to the their contexts, and, ultimately, determin- nance (which underpins most governance“how” question, drawing on personal ing satisfactory ways to govern their civil theory) can be applied to civil societyexperience of working on issues of civil society organizations? The fact is, there organizations.2 Many of the assumptionssociety governance in the specific con- is absolutely nothing that proves that that underpin corporate governance—andtexts of Cambodia, Myanmar, Laos, and Western funders have found the promised even agency theory itself, the foundationVietnam. Focusing on these contexts land of civil society governance, and there of corporate models of governance—dois not to say that the context question is much to be gained from setting aside not apply to civil society organizations,does not matter among various types of preconceived ideas and looking intently where the organization’s “owner” iscivil society groups in, for instance, the for what really works for local people. typically not able to be clearly identified.United States. It matters greatly—and, in Second, different types of organizations—fact, some of the worst failures of civil Dimensions of Context federations, self-help groups, coopera-society governance might be found in the tives, membership organizations, andone-size-fits-all assumption with which At least seven different dimensions of umbrella groups—tend to prefer slightlymany approach the development of gov- context need to be considered when different models of governance. Theseernance structures. designing governance models and distinctions and debates should already practices, although this is likely not an feel familiar, and discussion of such issues Before addressing the “how” ques- exhaustive list. Two of these dimen- is more often hosted in Western circlestion, a preliminary question is, who is it sions are already familiar to many of us than in Southeast Asian ones, so I won’tthat will take context into account? In working in the field, where we are com- go into further detail here.acknowledgment of the imbalances of monly exposed to debates about sectoralSPRING 2017 • WWW.NPQMAG.ORG  T H E   N O N P R O F I T   Q U A R T E R LY  ​55

NONPROFIT GOVERNANCE Organizational Dimension possibilities of local NGOs transcending Social Dimension Contingencies at the organizational level the limits of national governance seem Here, the example of Myanmar springs to provide important contextual cues for bleak. National governance practices, mind. Civil society activists in Myanmar consideration. Following Patricia Brad- whether historical or contemporary, may survived the harsh regime of military rule shaw, we can understand these contin- be the only experience on which local of nearly fifty years by honing skills in dis- gencies to include organizational size NGOs can draw for inspiration. Across cernment, giving high attention to issues and complexity, mission, life stage, and Southeast Asia, governance models of trust, and developing underground history—to name a few.3 This simply based on patronage and, more contempo- networks. These skills and resources, means that governance policy and prac- rarily, neo-patrimonialism, are common. so critical to (literal) survival—let alone tice will differ across organizations Vietnam offers a striking example of the being functional—no longer appear to depending on their unique characteris- importance of accounting for political serve the interests of a growing civil tics. There is no one size that fits all. A context: there, civil society cannot be society, which is increasingly encour- large and long-established international understood as separate from the state aged toward greater transparency, col- NGO, a professional association of, say, but rather is an extension of it.6 Jörg Wis- laboration, and partnerships. Perhaps, financial counselors or health profession- chermann found that, regarding internal then, there is some “unlearning” to be als, and a small, newly created self-help decision-making processes, “most if not completed in Myanmar, but it cannot be group will each need to practice gover- all Vietnamese Civic Organizations’ rep- forced and will likely happen slowly. nance in a manner customized to its very resentatives’ bodies of thought and prac- different needs. But this issue is not spe- tices disclose patterns of authoritarian Historical Dimension cific to civil society in Southeast Asia and political thinking,” matching the mode Recently, when I asked young Vietnam- will not be discussed further here. of rulership adopted by the Communist ese workshop participants, “What is Party of Vietnam.7 governance?,” my question was met with Cultural Dimension another question: “Do you mean what Of obvious importance is the cultural Legal Dimension we learned under French rule?” Clearly, context. There is increasing evidence that National governments set parameters the history of colonialism reverberates Asians think differently and follow differ- on civil society governance through powerfully to this day, influencing what ent social norms and mental models than legal means, some of which may defy young people feel entitled to know about do Westerners.4 For example, Southeast Western normative understandings of governance and what they believe to be Asian polities such as Cambodia, Laos, governance. As an example, we can see legitimate. But history is a big topic, and Vietnam, and Myanmar generally attri- that the new law of associations and the history of language is also of interest. bute higher value to the maintenance of NGOs in Cambodia8 is not premised on When I explored the etymology of gov- social hierarchy, harmony, and collectiv- agency theory—commonly, the Royal ernance in Cambodia, I was fascinated ist ideals than do Western societies. These Government of Cambodia regards to learn how the term for “governance” cultural differences make a mockery of executive directors, rather than boards, has shifted over the ages: from reichkar the ideas of independence and conflicts of as the rightful “owner” of an NGO. And (royal work) to rothcar (state work) and interest that are peddled by many Western the 2009 decree on associations in the back to reichkar, and then to akpibalkech donors. Picking up on these mismatched People’s Democratic Republic of Laos, (a technocratic version of governance), a assumptions, the World Bank recently which established for the first time a legal term that is poorly understood—indeed, produced a new conceptual framework environment for civil society, has proven likely never heard of—outside of the for international economic development, difficult for NGOs to access in that reg- capital, Phnom Penh. What is common premised on an expanded understanding istration typically takes several years. across these terms is that governance is of human behavior and the acknowledg- Strangely, some for-profit organizations either an elitist term or someone else’s ment of different mental models in differ- have been able to register under the law business, the work of others. Thus, when ent communities and societies.5 for nonprofit associations with greater we talk about governance in the local ease than NGOs. This underscores the language or with the help of interpret- Political Dimension importance of deep learning about the ers, subtextually we may be reinforc- Regularly, NGOs mirror national gov- legal context for operation; it may not ing the message that governance is not ernance standards and practices. The conform to your expectations. the concern of everyday people. Quite 56 ​T H E   N O N P R O F I T   Q U A R T E R LY  WWW.NPQMAG.ORG • SPRING 2017

probably, that is the very opposite of the donor’s requirement and its underpin- attentive to donor requirements is itself NONPROFIT GOVERNANCEmessage we may wish to convey. ning assumptions. In a rare example of demanding. overt resistance, the women’s coopera-The Perils of Helicoptering Western tive chose to argue their case with the Capture and Co-optionModels into Non-Western Contexts donor that deliberately fusing the inter- Co-option of donor requirements can lead ests of—and transgressing boundaries to a hybrid form of governance that blendsWith the above seven different dimen- between—­ staff, board members, and elements of patronage and corporate gov-sions of context to take into account, we stakeholders was important to them; ernance models. Such hybridity is alsocan conclude that it simply does not hold and in this context, managing conflicts most common and, in effect, is a mirroringthat models of governance used in large of interest made no sense. In other, of the neo-patrimonial governance prac-Western corporations and international similar instances, the edict to develop tices observable at the national govern-NGOs can be assumed to be relevant to a conflict-of-interest policy may simply mental level in these very same countrycivil society organizations in develop- be ignored. (This kind of mismatch of contexts, whereby patronage networksing contexts and with differing political governance models may also apply to the merge with legal–rational bureaucracy.11regimes. Models from Western countries United States and elsewhere—causing, Usually lamented as dysfunctional, thereare helicoptered into non-Western devel- for example, friction between feminist are also functional ways to create hybrid-opment contexts at our collective peril. organizations and their funders.) ity. Capturing and co-opting corporate governance and blending it with patron- In my work in Southeast Asia, I have Compliance age is a logical and constructive strategyobserved three overlapping patterns in Compliance—or at least attempted that NGO leaders can and do use to navi-terms of how local NGOs respond to compliance—with donor requirements gate the complex duality of requirementsdonor requirements to uphold certain is common, which makes sense given facing NGOs in Southeast Asia. As an(Western) governance standards: these the extent to which face saving and the example, boards may appoint a meetingare to disregard, to comply, and to maintenance of harmony is valued in facilitator rather than a chairperson,capture and co-opt. Public and overt Southeast Asian cultures. Compliance, thereby disrupting the hierarchical powerresistance is uncommon in Southeast however, is often more superficial than relations typical of patronage. Alterna-Asian contexts, but it is the “hidden tran- thorough. The very existence of a board tively, boards may draw relationshipsscripts”—to channel James Scott—that (whether on paper or otherwise) serves between organizational stakeholders andneed to be assessed.9 an important symbolic function and, in examine how these connect to the board itself, represents an act of compliance members, and potentially also connectDisregard with donor requirements—notwithstand- individual board members to a personalDisregard is not usually willful but rather ing the likely irregular nature of meetings constituency or client base, thereby cre-about mismatches in understanding. For and the board’s likely inability to wield ating a functional form of patronage forexample, an edict issued by an interna- meaningful power. It is often too difficult organizational stakeholders who may oth-tional donor for the mandatory adoption for organizations to marshal compelling erwise be overlooked in governance andof conflict-of-interest policies by the arguments about why a board may not be decision making.donor’s partner organizations in Asia meaningful in their context and offer awas met with genuine bewilderment. viable alternative. Thus, consistent with • • •The idea of maintaining separateness Patrick Renz’s analysis, NGOs adopt thein performing different roles is uniquely prevailing norms and values of the pre- Returning to our opening question aboutWestern yet not always acknowledged vailing institutions within their environ- how best to take context into account, weto be so. I recall lengthy conversations ment (here, the donor) in order to secure can now conclude that in Southeast Asianwith an indigenous women’s coopera- legitimacy.10 In identifying with societal contexts, where systems of patronage aretive, which rotated their leadership on (donor) expectations rather than having strong and longstanding, it is useful fora periodic basis, in accordance with intrinsic motivations toward effective international NGOs and donors to accordtraditional practice, and explicitly governance, boards are likely to take on a extra care to understanding the cultural,valued fluid movement across different maintenance role and adopt a minimalist historical, sociopolitical, and legal dynam-roles within and around the organiza- approach—although, let’s be clear, being ics at play, and then develop strategies fortion. They had received the donor’s working with—and not against—existingedict, and I attempted to explain theSPRING 2017 • WWW.NPQMAG.ORG  T H E   N O N P R O F I T   Q U A R T E R LY  ​57

NONPROFIT GOVERNANCE systems and practices. In other words, the Differently . . . and Why (New York: Free imperative is to understand and build on Press, 2003); and The World Bank, World NONPROFIT preexisting understandings of governance Development Report 2015: Mind, Society NEWSWIRE rather than attempt to negate or replace and Behavior (Washington, DC: World Bank, them. Ultimately, it is indigenous under- 2015). Nonprofit news standings of governance that create the 5. The World Bank, World Development from around context in which civil society governance Report 2015. the country practices succeed (or fail). If we pay close 6. See Irene Nørlund, “Civil Society and the world attention, we can learn a lot from how in Vietnam: Social Organisations and indigenous actors adapt and respond Approaches to New Concepts,” ASIEN 105 Daily Digests to demands for “good governance” that (October 2007): 68–90. are imposed from outside. These actions 7. Jörg Wischermann, “Civil Society Action Commentary by and responses point to the possibility of and Governance in Vietnam: Selected Find- NPQ Contributors emerging hybrid models of governance ings from an Empirical Survey,” Journal of that draw on and integrate both local Current Southeast Asian Affairs 29, no. 2 Trend Tracking and international understandings of gov- (2010): 39. ernance. Therein may lie the future for 8. “Cambodia’s parliament approves Read it online or in nonprofit civil society governance. NGO bill amid opposition boycott, pro- your in-box. Sign up at tests,” ShanghaiDaily.com, July 13, 2015, npqmag.org/newswire Notes www.shanghaidaily.com/article/article 1. See Chris Cornforth, “Nonprofit Gover- _xinhua.aspx?id=292298. nance Research: The need for innovative 9. James C. Scott, Domination and the Arts perspectives and approaches,” in Chris Corn- of Resistance: Hidden Transcripts (New forth and William A. Brown, eds., Nonprofit Haven, CT: Yale University Press, 1990). Governance: Innovative Perspectives and 10. Patrick S. Renz, Project Governance: Approaches (New York: Routledge, 2014); Implementing Corporate Governance and Judy Freiwirth, “Community-Engagement Business Ethics in Nonprofit Organiza- Governance: Engaging stakeholders for com- tions (Heidelberg: Physica-Verlag, 2007). munity impact,” in Cornforth and Brown, 11. Pak Kimchoeun et al., Accountability Nonprofit Governance; and Francie Ostrower and Neo-patrimonialism in Cambodia: and Melissa M. Stone, “Moving Governance A critical literature review (Phnom Penh: Research Forward: A Contingency-Based Cambodia Development Resource Institute, Framework and Data Application,” Non- 2007). profit and Voluntary Sector Quarterly 39, no. 5 (October 2010): 901–24. Louise Coventry is a PhD candidate in 2. See Jurgen Willems et al., “A Coalition the School of Global, Urban and Social Perspective on Nonprofit Governance Studies, RMIT University. Her doctoral Quality: Analyzing Dimensions of Influence research explores the governance of in an Exploratory Comparative Case Analy- civil society organizations in Cambodia. sis,” VOLUNTAS: International Journal of She currently lives in Ho Chi Minh City Voluntary and Nonprofit Organizations and works as an organizational develop- (2016): 1–26, doi:10.1007/s11266-016-9683-6. ment consultant and facilitator with civil 3. Patricia Bradshaw, “A contingency society groups across Southeast Asia. approach to nonprofit governance,” Non- profit Management & Leadership 20, no. 1 To comment on this article, write to us at (Fall 2009): 61–81. [email protected]. Order reprints from 4. See Richard E. Nisbett, The Geography of http://store.nonprofitquarterly.org, using Thought: How Asians and Westerners Think code 240108. 58 ​T H E   N O N P R O F I T   Q U A R T E R LY  WWW.NPQMAG.ORG • SPRING 2017

Ready to Launch? How the NONPROFIT START-UPS 1023-EZ Has Changed Your Nonprofit Start-Up Options by Tivoni Devor and Laura N. Solomon, Esq. One big reason why small organizations choose fiscal sponsorship over forming a 501(c)(3) is speed: the Form 1023 takes three to six months to process, while fiscal sponsorship is very quick. Now, however, we have the 1023-EZ, whose process takes only weeks. But there are many reasons for opting for a fiscal sponsor beyond start-up speed—and, as it turns out, there are some disadvantages associated with the 1023-EZ. The truth is, the new form is not as, well, easy as it may first seem.Editors’ note: The 1023-EZ provides an opportunity to launch a 501(c)(3) faster—changing some of the assumptions ofthe requirements of nonprofithood. And when you marry that lower barrier to tax exemption to the 990-N (e-Postcard), thestandards and reporting requirements become minimal. This changes the way we look at the choice of whether or not to becomea nonprofit, which changes the need base for fiscal sponsors, and so on. It goes back to the old systems thinking adage: “You can’tAdo just one thing.” for a fee equal to a percentage of the near-instant gratification: Form 1023 pro- re you trying to decide between funds you raised. The fee a fiscal sponsor cessing—which has gotten faster—typi- forming your own independent charges covers your portion of the over- cally takes three to six months; the IRS 501(c)(3) charity and using a head costs associated with running a processes Form 1023-EZ in a matter of fiscal sponsorship?Your decision would have been nonprofit (administrative staff, insur- weeks.straightforward before July 1, 2014—the ance, Form 990, audit, etc.). The IRS has, in essence, lowered thedate the IRS issued the Form 1023-EZ But the IRS Form 1023-EZ has changed barrier of entry for new charities. ThisStreamlined Application for Recogni- the equation. Now, the cost-benefit analy- can be a good thing if the charitabletion of Exemption. Until then, if you had sis is different, because the IRS made it mission is worthwhile and the foundera charitable mission and enough money cheaper and easier for many organiza- has the knowledge, commitment, andfor the legal, accounting, and filing fees, tions (most organizations with gross resources to pursue that mission. But thisyou would have incorporated a nonprofit receipts of $50,000 or less and assets of lowering of the barrier has also been con-corporation and filed the IRS Form 1023 $250,000 or less) to apply for tax-exempt troversial. The longer and more detailedto get 501(c)(3) status. If instead you status. Instead of an IRS filing fee of Form 1023 requires significant disclo-had only a short-term project, or if you $850 for the 1023 for organizations with sures, including three years of projectedlacked funding, you would have used a $50,000 or more in revenue, the filing budgets, a detailed narrative descriptionfiscal sponsor. That sponsor would have fee for the 1023-EZ is $275. And, instead of activities, articles of incorporation,received and receipted charitable con- of the significant legal fees to complete and by-laws. These aid the IRS agent’stributions on your behalf, and made dis- the 1023, the 1023-EZ requires much review in determining whether the orga-tributions for your expenses—typically less attorney time. And then there is the nization is legitimately formed and willSPRING 2017 • WWW.NPQMAG.ORG  T H E   N O N P R O F I T   Q U A R T E R LY  ​59

NONPROFIT START-UPS be operated for charitable purposes, sponsor hundreds or even thousands sponsor. They don’t have staff, so they allowing the IRS to weed out unqualified of activities under the umbrella of one don’t need HR support, nor do they need would-be charities. Conversely, the IRS legal entity, reducing administrative and to provide any payroll or benefits. Their Form 1023-EZ is just three pages long, programmatic expenses. Ironically, many finances are simple and can usually be with boxes to check—and applicants grantmakers have recently begun funding done in Excel or QuickBooks. A sub- self-certify as to the charitable nature mergers and collaborations to counteract $50,000 nonprofit can also choose to of the organization and its planned existing duplications. As funders push file the Form 990-N during tax season, a activities. for consolidation, the 1023-EZ makes form that is also called the e-Postcard 990 proliferation all the more easy. because it is so easy to complete—and According to a recent IRS Taxpayer organizations that file a 990-N fall under Advocate Service Annual Report to The Nonprofit Quarterly asked Laura most audit-compliance thresholds. I tell Congress, the brevity of the 1023-EZ N. Solomon, Esq., founder of Laura small nonprofits that are not projecting has caused the IRS to erroneously grant Solomon & Associates, and Tivoni Devor, to cross the $50,000 level to go with the 501(c)(3) status to unqualified organiza- manager of partnerships and outreach 1023-EZ first, and then, when they grow tions.1 The net effect is a proliferation of at the Urban Affairs Coalition, to debate and scale, to look to fiscal sponsorship new charities that, but for the 1023-EZ, this new wrinkle in the decision-making to help them manage that growth and the would have either not been approved by process for start-up nonprofits. challenges associated with that growth. the IRS or launched under fiscal spon- sorship. Long term, this may lead to When and why do you recommend What are the pros and cons of each? inefficiencies, as an increasing number fiscal sponsorship or 501(c)(3)? LS: The advantages of having your own of organizations create duplicative ser- Laura Solomon: I recommend fiscal spon- charity are clear. You have control over vices and infrastructure while competing sorship when a client has a short-term or your activities, finances, and mission. for the same grants and contributions. single project, like a client of mine who With that control comes the “cons,” A single fiscal sponsor can efficiently rowed across the Atlantic Ocean to raise though—which include the costs and money for ALS. I also recommend fiscal burdens of start-up and compliance UUPNPIVEERRIOSWITAY sponsorship or a donor-advised fund together with the significant job of when an individual or group doesn’t have running a nonprofit, including formation MASTER IN PUBLIC the money or appetite for the ongoing of a working, engaged board of directors. ADMINISTRATION: responsibilities of running a nonprofit. Fiscal sponsorship provides freedom A good fiscal sponsor can provide the from those costs and burdens but also Your Path to Leadership! platform to further great charitable mis- comes with the “cons” of the fiscal spon- sions and programs nationally and even sorship fee and a lack of control. Some ONLINE internationally. Conversely, if a founder sponsored projects find that, as they PROGRAM! has a serious commitment to the mission grow, larger or more established donors and the responsibilities of starting and want to see that the project is its own MPA (emphasis areas) running a nonprofit—together with independent 501(c)(3)—perhaps as a the financial and other resources—an sign of legitimacy, permanence, or com- - Nonprofit Organizational Management independent 501(c)(3) may be the right mitment. Other donors simply won’t - Government Administration choice. make a gift through a fiscal sponsor - Health and Human Services CLASSES because they know that a portion of - Emergency Management START Tivoni Devor: Naturally, I am a big propo- their donation is going toward sponsor- and Homeland Security EVERY nent of fiscal sponsorship for short- and ship fees. 8 WEEKS long-term projects, both big and small. - And more! But now that we have the 1023-EZ, I TD: I’ll push back a little on the “cons” usually recommend that especially small of fiscal sponsorship when you talk LEARN MORE TODAY! nonprofit start-ups—those with budgets about the fees and control. As you are under $50,000—use the 1023-EZ. Smaller considering choosing between fiscal Call 800-553-4150 or visit organizations typically don’t need all the sponsorship and your own 501(c)(3), UIU.EDU/NONPROFIT bells and whistles of a full-service fiscalNonProf6it 0Q tr​lTyH- E2 .2N2OxN4.P6R87O-FSIpTr iQngU2A0R17T EIsRsuLeY.indd 31/6/2017 10:50:37 AM WWW.NPQMAG.ORG • SPRING 2017

you have to weigh the costs of the fees tools and youth, or has a business model frustrated when the sponsor won’t grant NONPROFIT START-UPSyou are paying against the expenses of that may seem to have some inherent the balance of funds to a new sponsor ordoing it yourself. Often, we find savings conflicts of interest between the funders 501(c)(3) that the project forms.for 501(c)(3)s when they join us, espe- and the program. In the long term, riskcially in audit, insurance, and employee management is what keeps programs TD: I completely agree. When one non-benefit costs. Your fiscal sponsor should operational and sustainable, especially profit fiscally sponsors another and ithave an economy of scale that reduces in environments where nonprofits can is not its main mission and there is nothese costs for you. Now, each organi- be attacked for all sorts of administrative agreement, I call that casual fiscal spon-zation that provides fiscal sponsorship and financial reasons. sorship, and it can lead to all sorts ofis different and offers different levels trouble. I define formal fiscal sponsor-of oversight that may feel controlling. LS: I also strongly recommend that ship as a partnership with a nonprofitOften, independent organizations are any fiscal sponsorship relationship be whose mission is to provide fiscal spon-able sometimes to play a little fast and documented with a fiscal sponsorship sorship as a service and that has a clearloose in terms of compliance, but for a agreement that sets out all of the respon- agreement for you to sign.large fiscal sponsor with many client sibilities of each party, including the fees,partners, one bad apple can spoil the obligations of the sponsor, accounting When does fiscal sponsorshipbunch. One bad act of a single client’s for funds and reports, ownership of intel- make more sense than gettingmay trigger a funder to avoid funding lectual property, and timing and require- your 501(c)(3), and vice versa?any client using the same fiscal sponsor, ments for distributions of funds upon LS: There’s no one-size-fits-all approachand I will agree that fiscal sponsors can termination. I’ve seen problems with here. My job as counsel is to review eachbe bureaucratic and risk averse. Some- “divorcing” projects, in which the parties option and its pros and cons in depth,times we turn down an applicant if the end up arguing over the intellectual and to guide the client to the option that’sorganization’s program combines power property created by the project, or get right for that particular client. It will $19.95 Spring 2017 Promoting Spirited Nonprofit Management HToDhwAiinfbtfkoeoruetn.t.ly.“The Nonprofit Quarterly is the Harvard Business Review for our world.” Volume 24, Issue 1 KendBarlelP-iTtofaleFaylrlndoac-rmoTaheanowndLmdoeBaraJkasadslieoenonrssfoFohnCaniopcTCmianGakmgsaitnputignhnHgeCiecooNaanfdotfti-norDOopnenlraoodffi-tYEoRnuadrciCaalpital TitleSPRING 2017 • WWW.NPQMAG.ORG  T H E   N O N P R O F I T   Q U A R T E R LY  ​61

NONPROFIT START-UPS depend on the personalities involved, days. Remember, though, to focus on the Tivoni Devor, MBA, is manager of part- depth of commitment, time horizon for fiscal sponsorship agreement termina- nerships and outreach at the Urban Affairs the activity, and resources. tion provisions and to make sure that any Coalition, an organization that unites gov- funds remaining with the sponsor can be ernment, business, neighborhoods, and indi- TD: Each nonprofit is different, just like paid out to the new 501(c)(3) once it gets vidual initiatives to improve the quality of each fiscal sponsor is different. It has to its exemption. life in the region, build wealth in urban com- be a beneficial partnership. The fiscal munities, and solve emerging issues. Laura sponsor must be able to provide a plat- TD: Often, this is funder driven—as in N. Solomon, Esq., is the founder of Laura form for the client partner to grow and a funder wants to give a client money Solomon & Associates, a law firm devoted to flourish, and the client partner must be but the client can’t accept it without the representation of nonprofit, charitable, mission-aligned with, and not a financial access to a 501(c)(3). We see this often, and other tax-exempt organizations and phil- burden on, the fiscal sponsor. In general and we find a way to quickly ramp up anthropic planning for individuals. for a start-up, if you want to launch your so that the client can take advantage of nonprofit quickly and with access to the the funder’s interest and time line. My To comment on this article, write to us at experience and support of an invested organization, the Urban Affairs Coali- [email protected]. Order reprints from partner, go with a fiscal sponsor. If you tion, has been doing fiscal sponsorship http://store.nonprofitquarterly.org, using want to work inside a community, being for over forty-seven years, and we’ve had code 240109. a part of a fiscal sponsor’s family of proj- fiscally sponsored programs leave to be ects gives you access to deep nonprofit 501(c)(3)s and then come back to us a If You Are Thinking about How Best to knowledge, networks, and flexibility that few years later. We’ve also seen groups Launch a New Charitable Activity . . . you may not have on your own. But if you with fiscal sponsorship as well as their 1. First, articulate your mission and draft a want to launch a cheap and nimble orga- own 501(c)(3) to manage property or, nization so that you can take risks and again, to satisfy a funder’s requirement. time line for your activities and a proposed experiment and have no bureaucracy, go budget of your revenues and expenses for with a 501(c)(3). Keep in mind, however, • • • the first three years. that in doing so you expose yourself to 2. Then, check to see if you’re eligible to use compliance issues in the long run due to In the end, deciding between getting a the new IRS Form 1023-EZ (starting on the new streamlined application. fiscal sponsor or using the 1023-EZ to page 11 of the instructions, www.irs.gov register as a 501(c)(3) may be based /pub/irs-pdf/i1023ez.pdf ). When would it make sense to do fiscal on simple geography—for instance, is 3. Learn more about fiscal sponsorship. sponsorship followed by 501(c)(3) there a fiscal sponsor in your area that 4. Consult with a lawyer who can help you status, or both, concurrently? you trust? Also, it may be good to have to evaluate the best option to further your LS: If a client is planning to apply for both: you can have your programming mission. 501(c)(3) status but believes that it will occur under fiscal sponsorship and lever- take some time to gather the resources, age the advantages of fiscal sponsorship, To Learn More . . . fiscal sponsorship may be a great but keep your real estate or intellectual 1. IRS website (www.irs.gov) short-term option so that fundraising property separate under an independent 2. IRS Form 1023 can begin. In fact, some clients put a 501(c)(3), and have legal agreements fiscal sponsorship arrangement in place signed between the two. (www.irs.gov/pub/irs-pdf/f1023.pdf ) while they start up, so that they can fun- 3. IRS Form 1023-EZ draise as soon as they incorporate and Note while the 1023 is pending with the IRS. 1. Taxpayer Advocate Service, FORM (www.irs.gov/pub/irs-pdf/f1023ez.pdf) Note, though, that this makes sense for 1023-EZ: The IRS’s Reliance on Form 4. www.stayexempt.irs.gov organizations filing the 1023 but not 1023-EZ Causes It to Erroneously Grant 5. www.laurasolomonesq.com the 1023-EZ. That’s because the 1023 Internal Revenue Code § 501(c)(3) Status to 6. www.uac.org takes three to six months, typically, but Unqualified Organizations, MSP #19, “Most 7. National Network of Fiscal Sponsors our firm has gotten 501(c)(3) status for Serious Problems,” 2016 Annual Report to clients using the 1023-EZ in as little as ten Congress, vol. 1 (Washington, DC: Internal (www.fiscalsponsors.org) Revenue Service, 2016): 253–65. 62 ​T H E   N O N P R O F I T   Q U A R T E R LY  WWW.NPQMAG.ORG • SPRING 2017

Growth Hacking for NGOs and NONPROFITS & VOLUNTEERS Nonprofits: How a Few Staffers Can Mobilize Millions by Julie Szabo When nonprofits mobilize, they often focus on breadth—gathering large numbers of supporters as a way to build power. When nonprofits organize, they tend to invest deeply in nurturing volunteer leaders to ensure there are skilled, committed people in place to do the organization’s work. Blending the two into one model, however, may be the special sauce.Editors’ note: This article is adapted from Beyond the First Click: How Today’s Volunteers Build Power for Movements andNGOs, a report copublished by Mobilisation Lab (MobLab), Change.org, and Capulet. This article is an expanded version of anIarticle first published on NPQ’s website, on March 10, 2017.gathering large numbers of supportersmobilizing and organizing for scale.f you spend five minutes in the company as a way to build power. Organizing SURJ has a tiny staff—just two full-time nonprofits, however, tend to invest employees and a few part-timers. Still,of software entrepreneurs, you’ll they support more than seven millionhear the phrase “growth hacking.” Itrefers to a mixed bag of experimental deeply in nurturing volunteer leadersstrategies and tactics that start-ups use to ensure there are skilled, committed white Americans in the movement toto grow quickly and exponentially. So, people in place to do the organization’s end white supremacy and build a raciallywhat does growth hacking look like in work. Han says: just society. Scaling the movement withthe nonprofit world? There are some organizations that volunteers is central to SURJ’s theory of Research for Beyond the First Click: just do organizing; they do that change. really deep work in local commu-How Today’s Volunteers Build Power nities . . . but they’re never able to From hosting kitchen table conver-for Movements and NGOs1 began with take the great work they do and sations to organizing hundreds of ralliesa phone call to author and academic scale it. On the flip side, I see orga- across the United States, SURJ’s workHahrie Han. While studying civic engage- nizations that have a ton of scale “just can’t be done without volunteerment models for a recent book, Han dis- because they do a lot of mobilizing. leaders with very big responsibilities,”covered that organizations that blend But even if they’re able to achieve says Randall Smith, a member of the“mobilizing” and “organizing” techniques changes they want to make, those National Staff Team. “Without thesecan engage people at scale more quickly. changes are fragile because they leaders, SURJ wouldn’t exist.”3We (the groups involved in research for don’t have the leadership core, thatBeyond the First Click—Mobilisation depth, that continues to advocate Amplifying an organization or move-Lab, Change.org, and Capulet) were for change over time.2 ment with volunteers isn’t a new idea.intrigued by the idea, and, as we inter- Becky Bond and Zack Exley, who wereviewed more NGOs and experts, evi- leaders in Bernie Sanders’s presidential campaign, say it’s a lost art. They arguedence for Han’s thesis snowballed. Showing Up for Racial Justice (SURJ) that when organizations and campaignsIn Han’s definition of mobilizing, is an example of an organization that is hire more full-time staff, they tendnonprofits tend to focus on breadth—on successfully growth hacking by blending to engage fewer volunteers and loseSPRING 2017 • WWW.NPQMAG.ORG  T H E   N O N P R O F I T   Q U A R T E R LY  ​63

NONPROFITS & VOLUNTEERS power. During the Bernie campaign, we Questions that will help you to explore the roles and the potential roles witnessed what volunteers are capable of volunteers in your organization 7 of, and Bond and Exley encourage orga- nizations to follow suit. “Every group Reflections on volunteer coaching Reflections on blending mobilizing and that stands for something important, no organizing matter how small, has a list of support- 1. How does your organization coach volunteers? ers. Those supporters want to help your 1. Does your organization rely on a mobilizing effort succeed. Put them to work!”4 2. Is there a partner or foundation that could model, an organizing model, or both? provide resources for leveling up volunteers? When 350.org launched its Fossil 2. What opportunities are there for you to go Free campaign in 2012, it used mobiliz- 3. How could a fellowship model work in your deep with volunteers? How could they support ing techniques—petitions and public organization? the mobilizing work you’re already doing? actions—to pressure universities and institutions to divest from fossil fuels. 4. Which“on-the-job”skills can you teach to vol- 3. Alternatively, how well are you able to mobilize 350.org is an expert at going wide, but unteers who will practice them immediately members, to create opportunities for involve- it’s also going deep with Fossil Free by in the real world? ment that match interests that people already building distributed teams of highly have? trained activists to scale up the move- 5. Who on staff—if anyone—focuses on your ment on university campuses. “We’ve volunteers’health, happiness, and success? 4. What would a lightweight, agile experiment made a very intentional effort to train with mobilizing or organizing look like for your individuals so they can help broaden 6. Is there an existing training model you can organization? the movement,” said Anna Goldstein, tap into without having to develop your own U.S. Team Coordinator.5 The Fossil Free coaching curriculum? Reflections on creating remarkable volunteer Fellowship program trains fellows and experiences places them in paid summer internships Reflections on volunteer contributions and with host organizations to get hands-on performance 1. What do volunteers look forward to most when organizing experience. working with your organization? 1. Do volunteer leaders contribute to strategy at “Being a fellow brought me into com- your organization? How? 2. How can you make volunteering a remarkable munity with other strong, determined experience? organizers and allowed me to find my 2. Does your organization back away from giving own role in this fight. It gave me hope, volunteers mission-critical work and holding 3. What new or unique experiences can vol- and taught me lessons that will carry me them accountable for outcomes? Why? unteers expect when they work with your through organizing for climate justice organization? for the long haul,” said Lex Barlowe, a 3. Aside from number of volunteer hours, what 2014 fellow.6 Fossil Free has spread to metrics do you use to track volunteer perfor- 4. Do you back away from asking volunteers to more than five hundred campuses and mance? For example, how does their work make big commitments—emotionally and/ institutions globally, thanks to the work contribute to the mission? Does the work add or logistically? of volunteer organizers. to your volunteers’sense of well-being, contri- bution, and place in society? 5. In what ways can you explore and support your Anyone who works at a nonprofit volunteers’interests rather than simply expect- knows it’s tempting to equate impact with 4. What steps can you take to support personal ing them to support yours? growing supporter numbers. But, isn’t successes for your volunteers? going deep with volunteers who will lead with us and for us just as important? If Notes -organizing-can-take-down-trump/. NGOs are going to build stronger, distrib- 1. Julie Szabo and Darren Barefoot, Beyond 5. Szabo and Barefoot, Beyond the First uted networks more quickly, Han, Smith, the First Click: How Today’s Volunteers Click. and Goldstein agree, NGOs will need to Build Power for Movements and NGOs 6. Ibid. blend web-based movement-building (Amsterdam, San Francisco, and Burnaby, 7. These “reflections” were taken from Szabo techniques with a deep commitment to BC: Mobilisation Lab, Change.org, and and Barefoot, Beyond the First Click; they training and nurturing volunteers. That’s Capulet, December 17, 2016). have been lightly edited for this publication. their NGO growth hack. 2. Interview with Hahrie Han, by Mobilisation Lab, December 15, 2016, Julie Szabo is codirector of Capulet, an soundcloud.com/user-926123477 organization that makes Remarkables— /interview-with-author-hahrie-han. high-impact digital marketing campaigns 3. This and subsequent quotes are from inter- that attract attention and get people fired views by the author unless otherwise noted. up about causes and organizations that are 4. Becky Bond and Zack Exley, “The Revolu- making positive change in the world. tion Will Not Be Staffed: How Big Organizing Can Take Down Trump,” The Nation, Novem- To comment on this article, write to us at ber 30, 2016, www.thenation.com/article [email protected]. Order reprints from /the-revolution-will-not-be-staffed-how-big http://store.nonprofitquarterly.org, using code 240110. 64 ​T H E   N O N P R O F I T   Q U A R T E R LY  WWW.NPQMAG.ORG • SPRING 2017

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