Last week, we announced the launch of Ask@Endeavour, a new knowledge-sharing initiative that provides non-profit practitioners with an opportunity to connect with seasoned professionals and seek answers to real-life questions.
Featured Guest
This month, our theme is social entrepreneurship and we are featuring Dr. Ann Armstrong, Lecturer and Director, Social Enterprise Initiative and Lecturer, Organizational Behaviour/HR Management at the Rotman School of Management, University of Toronto, and Faculty Associate at the Centre for Ethics, University of Toronto.
Dr. Armstrong has been a lecturer in OB/HRM at Rotman for the past six years, and has taken an active role in increasing the School’s involvement in the non-profit/social enterprise sector. She teaches courses in non-profit consulting, change management, team building, and organizational theory and design, as well as in the Master of Biotechnology and the Culture, Communication and Information Technology programs. Dr. Armstrong also consults to organizations on compensation, creativity and organizational design, and currently serves as Chair of the board of Rotman NeXus, a student-run consulting agency serving the social sector, and as Chair of the Advisor Committee of the University of Toronto’s Volunteer Consulting Group.
Dr. Armstrong attended and achieved her PhD from the University of Toronto. She has also won Teaching Awards from Rotman School of Management, Graduate Teaching Excellence Award from the University of Guelph, and the R.P. Gilmor Award for Student Service, also from the University of Guelph.
How Ask@Endeavour works
You have until Thursday, May 17th to submit your questions by e-mail (ask@endeavourvolunteer.ca), Twitter (@EndeavourVCN), Facebook or LinkedIN. You can also submit video questions via YouTube—just make sure to send us the link.
From the questions received, Dr. Armstrong will select three to answer. Her responses will be posted on our blog by Tuesday, May 22nd.
This is your chance to seek advice from a seasoned professional. So, please take advantage of this exciting opportunity and submit your social entrepreneurship questions before noon on Thursday, May 17th.
For questions about the process or the Ask@Endeavour intiative, please don’t hesitate to contact us by e-mail at ask@endeavourvolunteer.ca.
Endeavour is a community-driven organization. We strive to enable non-profits to improve and sustain their organizational impact. One of our 2012 strategic goals is to improve access to resources and expertise for other non-profit practitioners.This is why we are excited to announce a new knowledge-sharing initiative: Ask@Endeavour.
What is Ask@Endeavour?
Ask@Endeavour provides a unique opportunity for non-profits to connect with subject matter experts and tap into their vast experience to answer questions and address issues currently faced by organizations. Because this project targets non-profits and charities, the service is provided at no cost.
How does Ask@Endeavour work?
Each month, we will feature a new expert with a unique background and skill sets. You will have one week to submit your questions by e-mail (ask@endeavourvolunteer.ca), Twitter (@EndeavourVCN), Facebook or LinkedIN. You can also submit video questions via YouTube—just make sure to e-mail us the link.
From the questions received, three will be selected by our featured expert. Answers will then be posted on our blog within five business days.
Launch
Ask@Endeavour will kick off with a focus on social entrepreneurship. Get your questions ready and make sure to check our blog on Thursday, May 10th for more information about our featured expert!
In the meantime, if you have any questions about Ask@Endeavour, don’t hesitate to get in contact with us by e-mail at ask@endeavourvolunteer.ca.
The opinions/views expressed by the author is theirs alone, and do not necessarily reflect the opinions or position of Endeavour.
Author: George Oliver, President BGO Consulting and Endeavour Advisor
I am often asked for my opinion and advice about making the transition from working in the private sector to working in the nonprofit sector. I was inspired to make the transition because I was finding that volunteering was a lot more satisfying on many levels, including learning new skills, being exposed to other perspectives and meeting and/ working with new people. I was also finding that I could use a broader range of the skills I enjoy using in the nonprofit sector because if I wanted to do new things they were happy to have me do them (unlike the limits of having a specific role description in a private sector organization). Lastly, I could quickly see real results from my contributions.
If you’re thinking of working in the nonprofit sector, here’s some advice for making the transition:
Do:
·Volunteer at a nonprofit to find out if it’s a good fit with your skills and abilities, and to see if it might be a good career choice. Avoid trying to change the organizational culture. One big fear the existing staff and volunteers have about you will be confirmed if you do.
·Listen more than you speak, especially in your first year. You have much more to learn from the nonprofit than it has to learn from you.
·Attempt to get a position requiring a functional skill; your chances of success will be much greater.
·Get fundraising experience; it’s the most in-demand skill and regardless of the official role you land, in the nonprofit world “we are all fundraisers”.
Don’t:
·Use ‘jargon’ and acronyms. You will build resistance if you do. Speak in the language of the nonprofit world. Language is meant to be a tool for creating understanding.
·Think that nonprofit managers are not skilled at management. Nonprofit management is VERY difficult. The environment is extremely complex, ambiguity is the norm, and uncertainty over funding is always present. There is frequently little time for longer-term thinking and it is rare that managers have access to training in management because there usually isn’t the time or resources.
·Think that just because you’ve managed a business or have an MBA that you can ‘save’ the nonprofit organization. It is presumptuous to think that or make that assumption. And thinking that way will limit your success.
For those wanting to read an excellent book on the subject please see: Laura Gossner Otting, Transitioning to the Nonprofit Sector: Shifting Your Focus from the Bottom Line to a Better World,(New York: Kaplan, 2007)
Are you considering transitioning to the nonprofit sector or have you already made the transition? Do you have other do’s and don’ts to share?
A colleague described to me an epiphany she had about what it means to be a management consultant, reflecting on her more than ten year career in advisory services in the public sector:“We recommend problems”.What an insight! Most of us call this “framing the problem”. But Recommend Problems resonates more, especially in the context of providing advice to small non-profit organizations. If I reflect on the Endeavour engagements that I have been involved with, a lot of un-necessary, low value-add work was avoided because we invested time up-front to understand the issues, and recommend what problem we should really be solving. Here are two examples to illustrate my point:
·Client One: This client requested help to “develop a corporate sector fundraising kit”. This is a deliverable, not a problem, so we had to determine the real issue the client was trying to solve. Turns out, what the client really needed was a segmentation of who they should be approaching for money, time, and gifts-in-kind, and tailoring a value exchange proposition for each segment. The corporate sector ended up being one potential segment, but not the most strategically important one.
·Client Two: This client requested help to “develop shared services across all their support functions supporting multiple programs at multiple sites”. This is a solution, not a problem. Turns out, what the client really needed was clarity about their operating model, and a change in their organization structure and talent composition in order to operate better. A shared services structure ended up not being the first place the client needed to start in order to improve performance.
Therefore, one of the core value propositions management consultants bring to their clients – whether they are multi-billion dollar corporations or community centers with a $60K budget – is in applying all their experience and wisdom in recommending what problem the client should really be solving, and having the courage to challenge the “problem” that is initially put on the table.
-Contributed by Dr. Zayna Khayat, Advisory Committee, Endeavour
Dr. Zayna Khayat is an Associate Partner with the Toronto office of SECOR management consulting, a Canadian-based consultancy. She leads the Toronto Health and Life Sciences sector where she serves clients in the life sciences and in public health care, advising them on issues of strategy and management.
Prior to joining SECOR, Zayna was a Principal with the Toronto office of The Boston Consulting Group (BCG), a global management consulting firm, from 2001 to 2010.
Dr. Khayat is an adjunct professor at the Rotman School of Management where she instructs the health care consulting field course to second year MBA students in the health care stream.
Prior to joining BCG, Zayna earned her Ph.D. in biochemistry from the University of Toronto / Hospital for Sick Children where she was a scholar of the Canadian Institutes of Health Research, studying how insulin and exercise regulate blood glucose in the muscle, and why/where this process breaks down during disease states such as diabetes.
Zayna speaks fluently in English, French and Arabic, and resides in Toronto with her husband and 3 children.
Mixing It Up: Endeavour’s Summer Mixer on Diversity
Author: Zahra Qureshi, Volunteer on Endeavour’s Development Committee
On August 4th, Endeavour held another successful mixer at the new ING Direct Centre in downtown Toronto. About 100 current and prospective enthusiastic volunteers came out for an evening of networking and great conversation. The evening also marked the celebration of Endeavour’s recent achievement in officially becoming a registered charity, with Borden Ladner Gervais LLP making the first donation to Endeavour as a charity.
Opening remarks from the President of Endeavour, Andrea Wong, highlighted the diversity of Endeavour’s volunteers and clients. Since its inception by a small group of students, Endeavour has grown significantly with the contributions of more than 200 volunteers’ efforts and ideas to further its vision of supporting clients. As a volunteer on the Development Team, I have learned from the diverse experiences and perspectives of fellow volunteers. The organization captures the best of these differences to grow and succeed.
After the opening remarks, we had the honour of listening to and learning from the experiences and insights on diversity, from two great speakers:
Matt Fullbrook, Manager of the Clarkson Centre for Business Ethics and Board Effectiveness at the Rotman School of Management, University of Toronto, addressed the lack of diversity on the board of directors for businesses operating in Canada. He set into perspective an economy that acknowledges diversity but has yet to explore its full potential. The key decision makers within the economy, that is to say any large company’s board of directors, are hardly representative of the diverse society they aim to serve. Will we overcome this trend? How can we create a more responsive economy with better opportunities for our diverse population? Can it be done organically or by strict enforcement?
Arti Freeman, Program Manager at the Ontario Trillium Foundation, shared her global experiences, ranging from rural India to the Asian Pacific cultures, and how they have shaped her perception of diversity. Her insightful reflection prompted me to look at more dimensions of what makes people unique, such as race and gender as well as communication styles and education. Listening to her stories, I appreciated how unique we all are and yet how much we can still share. Social innovation is critical for success in today’s global world and enables groups to benefit from the similarities and differences created by diversity. Remembering Arti’s key advice, which is to keep an open mind when you meet people and to dig deeper to recognize the potential of the endless dimensions of diversity. How can you personally apply these ideas in your workplace, school, and even personal life?
Looking around the room, I could tell the attendees were not just there to talk about diversity; we were there to demonstrate it at its best. Everyone came in with unique backgrounds and aspirations. I learned more about Endeavour’s vision and appreciate the sense of volunteerism and passion within the gathering.
Thank you to our partners for helping to make this event a success: Golden Key, Steam Whistle, Amsterdam Breweries and our hosts, ING.
Send us a note or comment on this blog and let us know what you think about Endeavour’s Summer Mixer. You can join us via Facebook and LinkedIn to share your feedback, tips, and ideas for future Endeavour events!
I recently had a conversation with someone from the financial sector on my work in the non-profit sector. At one point I was asked how I could afford to spend so much of my time volunteering. I was confused; volunteering?Slowly the wheels started to turn; this individual did not understand I was paid for my work in the non-profit sector - that this was my career.It was assumed I was a full-time volunteer.The revelation of this assumption about non-profit work was a big “aha” moment and I have since made myself cognizant of the misconceptions and myths about the sector, the existence of which can hinder the ability of non-profits to maximize their impact.
Here are a few of the myths and misconceptions I have encountered in conversations outside of my sector and I believe are worth highlighting:
1.The Cheaper the Better: Non-profits are expected to have low administration costs.I recently read an article praising non-profits who kept spending on administration at 10%.Although it is important that non-profits maximize their spending on programming, low administration costs do not ensure, and often puts at risk, the ability of an organization to achieve their goals.
2.Non-profit’s Can’t: Discourse and literature on non-profits sometimes draw conclusions that challenges experienced by the sector are due to incompetency.This discourse should be more critical of the reasons for these challenges, such as pressure to keep administration costs low and how this impacts the quantity and quality of staff to develop, deliver, and measure effective programming.
3.No Logos: Marketing is seen as a luxury expense in which non-profits should not invest.However, most non-profits have a product , such as social or environmental change, and this product needs investment and a sustainable revenue base, just as companies who sell insurance, IT, or gum.Social change, especially when it is not tangible (building a school) but higher level (policy-change) is challenging to market. Until the general public is more knowledgeable on what constitutes effective social performance, non-profits have to be able to invest in their messaging and branding.
4.Free Labour: Many people believe non-profits should rely on volunteers to carry out their mission as a way to keep administration costs low and inspire donors.However, managing volunteers can be time consuming,and challenging.It is also more realistic for some non-profits to do than others, based on the complexity of their programming.It is much easier to organize a large group of volunteers to plant trees than it is to deliver training on issues of equity and poverty.
5.Drifting Missions: A huge criticism of non-profits, often tied to non-profits who are accused of ‘chasing funds’. This is where non-profits apply to and accept funding from organizations whose criteria is not fully aligned with the mission of the non-profit. With both funders and funding recipients having their own missions to fulfill, there can be disconnect between what is available and what is needed.This is an area which requires more open dialogue and transparency.
It is definitely the case that all sectors can be impacted by erroneous public opinion, and that some critiques of the non-profit sector are valid. However, I believe misguided criticisms are highly problematic for non-profits for two reasons:
1. Without understanding the complexities, realities and challenges of non-profits, the solutions and support offered by other sectors and individuals do not address the root of the problems and therefore do not truly lead to improved effectiveness and impact.
2. Criteria on what makes for an effective non-profit are often misleading, which means sometimes those non-profits with the greatest social impact are left behind in the competition for public, corporate and individual funding.
Clearly each of these topics can be further unpacked and I encourage individuals from all sectors to engage in conversations which further break-down these misconceptions and myths on non-profits.Have you had any “aha” moments you would like to share, either as someone working in the non-profit sector or through your volunteer work with Endeavour?
Author Biography:Carissa is employed in the human rights education sector, having worked both internationally and domestically for the past seven years in various management, governance, and volunteer roles. Through these experiences, Carissa has become passionate about empowering non-profits to maximize their social impact.She is a Spring/Summer 2011 Consultant with Endeavour and is now the Director of Training and Development with Endeavour.
People often use the terms ‘not-for-profit’ and ‘charity’ interchangeably when describing organizations in the non-profit sector. In fact, from a legal perspective ‘not-for-profit’ and ‘charity’ mean very different things. The distinction between these legal concepts is misunderstood by many if not most people - likely because they come out of the federal Income Tax Act and, as everyone knows, our tax law is complex. But it doesn’t need to be!
Before I summarize Canadian tax law in an overly simplistic way, I must begin with the usual legal disclaimer: this article is short and simplistic; readers are cautioned to consult their professional advisers before making any decisions related to tax status.
I begin with not-for-profits. If (among other things) your organization is setup in a way that prevents any profits from being distributed, directly or indirectly, to members or to the benefit of its members, it is, for the purposes of tax law, a not-for-profit (note that while the purpose of a not-for-profit cannot be profit, it can earn income which must be used to further the objects). As such, you receive the privilege of not paying tax on the income you generate. If your organization is required to file a tax return (all corporations are required to file, but unincorporated associations are not) your organization will essentially file a ‘nil’ return and no income tax is payable.
If you are registered by the Canada Revenue Agency (the “CRA”) as a charity, in addition to the privilege of not paying taxes on your income, you are entitled to issue charitable donation receipts to persons who contribute funds to your organization. Donors get a tax break on their income taxes and the charity gets the benefit of an additional income stream.
To obtain this privilege, the CRA requires that the organization be devoted exclusively to “charitable” purposes, which are: the advancement of religion, the advancement of education, the relief of poverty, or other purposes beneficial to the community (note that the definition of what is charitable at law is surprisingly complex and the subject of a future article). The CRA also imposes other requirements on the organization (annual filings, record-keeping requirements, etc.) to make sure the organization is and continues to play by the rules and does not take advantage of, among other things, the receipting privilege.
In other words, registered charities are not, strictly speaking, not-for-profits. You are either one, or the other, and the tax treatment and regulatory compliance requirements of each type of organization are different.
When does it make sense for an organization to be setup as (or evolve into) a charity?
There are, in my view, three major pre-conditions required for an organization to make the decision to become a charity:
(i) its operations and activities are and will continue to be exclusively charitable;
(ii) it has or plans to have the resources to satisfy the CRA’s regulatory compliance obligations; and
(iii) it plans to benefit from the revenue stream associated with charitable donation receipts.
This does not mean the organization needs to be large in terms of staff or programming, or well endowed in terms of cash or other resources, but it does mean there needs to be a board of directors and others who are sufficiently sophisticated to ensure the necessary processes to maintain the organization’s compliance with the rules of the CRA are implemented.
How does one become a registered charity?
One can register as a charity by filing an application with the CRA.
The application includes information about the activities of the organization, information about its governance structure, its directors and officers, and certain financial information.
In recent experience, the registration process has ranged from four months to over a year. The length of review typically depends on the completeness of the application, whether the proposed “charitable” purpose has been previously accepted as charitable, and the volume of applications before the CRA.
Conclusion
Registering as a charity is a great idea for an organization that would benefit from the ability to raise funds by issuing donor receipts. If your organization does not need that revenue stream, or can not handle the compliance requirements, it would be in your best interest to become (or remain) a not-for-profit.
Nick G. Pasquino practices corporate, commercial and charity law in the Toronto office of Borden Ladner Gervais LLP.Nick is legal counsel to Endeavour and advised Endeavour on obtaining registered charity status.He can be reached at npasquino@blg.com or (416) 367-6253.
Recently, I had the honour of sharing my experiences of creating and growing Endeavour in a keynote speech at the 10th Vision Gala. The gala was in celebration of both the graduates of the Vision Youth Leadership Program, and the decade of contributions that Vision Youth has made to the community.
What resonated with me most about Vision Youth is its holistic approach to leadership development. Youth who participate in Vision Youth develop skills and relationships through a combination of leadership, social, physical, environmental, and civic activities.
Vision Youth’s holistic approach is also important for community development. Education, recreation, immigrant services and healthcare are just a few of the many factors that contribute to community vitality. At Endeavour, we choose to work with non-profit organizations representing diverse causes. From the arts and social justice to the environment and international development, our clients support many aspects that strengthen the quality of life in our communities.
Endeavour has been able to serve such a diverse group of clients thanks to the more than 200 volunteers and partner organizations that have worked with us since 2007. To be part of a group that has transformed an idea into what Endeavour is today is truly rewarding, and I shared this in my keynote here. As Endeavour enters a new stage of growth, I look forward to working with all of you to continue the great work in our communities.
A few memorable snapshots from the evening:
Celebrating with community leaders: Vision Youth Founders and Executives; Executive Director of the Ontario Duke of Edinburgh Awards; Olivia Chow, MP. (Photo courtesy: Alan Chan/Vision Youth)
Delivering a keynote speech at the Vision Youth Graduation Gala 2011 (Photo courtesy: Carreau/Vision Youth)
Olivia Chow, MP, congratulates the Gold-level graduates of Vision Youth (Photo courtesy: Carreau/Vision Youth)
The audience of about 300 youths, parents and community leaders at Le Parc, celebrating the Visioneers (Photo courtesy: Carreau/Vision Youth)
By Lucy Dai, Director of Business Intelligence, Endeavour
Endeavour welcomed its seventh round of volunteers in September. In this round, there are 35 volunteers serving on five consulting engagements. Out of the 35 volunteers, nine volunteers are returning engagement managers and consultants from prior rounds.
Since Round 1 in Fall 2007, Endeavour has had 201 consultants and engagement managers (including returning volunteers) work with 36 non-profit clients. These volunteers were selected from more than 600 applications, representing an acceptance rate of 33%.
Endeavour’s volunteers have enriched the Endeavour community with their educational and professional backgrounds. Academically, approximately 40% of volunteers have either completed or are pursuing a Masters degree, in areas ranging from business and humanities/arts to the sciences. Professionally, our volunteers work in various industries, most notably in fields of finance, accounting, telecommunications, and government. Around half of these volunteer have less than five years of work experiences.
What these statistics do not capture are the dozens of project advisors who volunteer their time and expertise to guide the consulting teams in their engagements, and the Endeavour executives and committee members who recruit, manage and follow-up on each engagement.
Fun Facts
1. Did you know that 9% (3 out of 35) volunteers in Round 7 have either completed and/or are in progress of completing their CFA (Certified Financial Analyst) designation?
2. Did you know that 29% of Endeavour volunteers to date have attended post secondary institutions outside of Canada?
George Oliver Advisor, Endeavour
President, BGO Consulting Inc.
It is a common assumption that the responsibilities of a non-profit board member are limited to attending meetings, sharing ‘wisdom’, evaluating the management and offering advice - that is not the case. The vast majority of non-profit boards are known as ‘working boards’, where members roll up their sleeves and do ‘real’ - if I can use the term - work (i.e., are hands-on).
The primary reason for this misconception is simple: the vast majority of non-profits are small in terms of financial resources, number of staff, and number of clients. It may come as a surprise to learn that there are approximately 161,000 non-profits in Canada, including sports leagues, churches, and community organizations, to name a few. Many have no paid staff.
