Great Foundations: A 360-Degree Guide to Building Resilient and Effective Not-for-Profit Organisations

154 Pages·2010·3.186 MB·English

by  Catherine J. Brown

Great
G
r
e
FOUNDATIONS a
t

F
o
A 360 ° guide to building resilient and effective
u
not-for-profit organisations
n Great
d
Great not-for-profit organisations are built on a solid foundation of a
knowledge, creativity, experience, and agreed values and purpose. t
i
Great Foundations is a practical guide for people working in not-for- o
profit organisations, especially aspiring Board members and CEOs and n FOUNDATIONS
s
people for whom this is new territory. It is for people who want to make
the most effective contribution they can to their chosen not-for-profit
organisation. It is about the importance of giving attention to all parts
of a not-for-profit organisation—and understanding why the back A 360 ° guide to building resilient and effective
office should really be front of mind at least some of the time; why a
slick marketing message is not enough without solid program delivery; not-for-profit organisations
why you need to know what is under the bonnet of your not-for-profit’s
engine from a legal perspective; and why thoughtful planning and
active networks are critical to your not-for-profit’s survival.
After many years working as a Board member, lawyer, CEO and
adviser within and to not-for-profit organisations, Catherine Brown
has written Great Foundations to share her knowledge about not-
for-profit organisations. It will also give you ideas about how your
experience in other sectors can add real value to a not-for-profit
Board or organisation.
Great Foundations will give you the information to ask the right
questions—when they need to be asked.
Catherine J. Brown has spent more than
C
20 years contributing to the not-for-profit a
sector as a lawyer, consultant, CEO and Board th
director. She is passionate about enhancing e
r
not-for-profit organisations through supporting ISBN 978-0-86431-886-2 in
e
Boards and CEOs to find solutions to the J
challenges that they face. Catherine has also worked in . B
commercial and government roles and is keen to increase
r
the two-way exchange of knowledge and skills between all o
w
three sectors. More information about her consultancy can n
be found at www.catherinebrown.com.au 9 780864 318862
Catherine J. Brown
Australian Council for Educational Research
Great
FOUNDATIONS
A 360 ° guide to building resilient and effective
not-for-profit organisations
Catherine J. Brown
ACER Press
First published 2010
by ACER Press, an imprint of
Australian Council for Educational Research Ltd
19 Prospect Hill Road, Camberwell
Victoria, 3124, Australia
www.acerpress.com.au
[email protected]
Text copyright © Catherine J. Brown 2010
Design and typography copyright © ACER Press 2010
This book is copyright. All rights reserved. Except under the conditions described in the Copyright Act 1968
of Australia and subsequent amendments, and any exceptions permitted under the current statutory licence
scheme administered by Copyright Agency Limited (www.copyright.com.au), no part of this publication may
be reproduced, stored in a retrieval system, transmitted, broadcast or communicated in any form or by any
means, optical, digital, electronic, mechanical, photocopying, recording or otherwise, without the written
permission of the publisher.
Copying of the blackline master pages
The purchasing institution and its staff are permitted to make copies of the pages marked as blackline
master pages, beyond their rights under the Act, provided that:
1. The number of copies does not exceed the number reasonably required by the institution to satisfy its
own purposes;
2. Copies are made only by reprographic means (photocopying), not by electronic/digital means, and not
stored or transmitted;
3. Copies are not sold or lent;
4. Every copy made clearly shows the footnote (e.g. ‘© Catherine J. Brown 2010’).
For those pages not marked as blackline masters pages the normal copying limits in the Act, as described
above, apply.
Edited by Maureen O’Keefe
Cover and text design by ACER Project Publishing
Cover image copyright Nikola Spasenoski, 2010. Used under licence from Shutterstock.com
Typeset by ACER Project Publishing
Printed in Australia by BPA Print Group
National Library of Australia Cataloguing-in-Publication data:
Author: Brown, Catherine J.
Title: Great foundations : a 360 degree guide to building resilient and effective not-for-profit
organisations / Catherine J. Brown.
ISBN: 9780864318862 (pbk.)
Subjects: Nonprofit organizations--Administration.
Nonprofit organizations--Australia.
Dewey Number: 658.048
DISCLAIMER
This book has been produced to support the self-education of Boards and CEOs in the Australian not-for-
profit sector and provides advice of a general nature. Readers should seek independent legal or financial
advice about particular issues and specific circumstances. The tax law relating to not-for-profits is
especially subject to change as government policy changes. While there are practical tips about financial
reporting to the Board, the author is not a qualified accountant and does not seek to give financial advice.
All legislative material herein is reproduced by permission but does not purport to be the official or
authorised version. It is subject to Commonwealth of Australia copyright.
Why bees on the cover of a book about not-for-profit organisations?
Because:
Bees are the most altruistic of all insects.
Bees work as a cohesive team for a main goal and a long-term future.
Bees are surprising, and that element of surprise and innovation is one of the
strengths of the not-for-profit sector.
Bees are the epitome of cross-pollination.
Bees care for the queen bee for the benefit of future generations.
… for so work the honey-bees,
Creatures that by a rule in nature teach
The act of order to a peopled kingdom.
Henry V, Act I, Scene 2, lines 187–189
William Shakespeare (1564–1616)
This book is dedicated to all the fantastic people that I have worked with in so many
parts of the not-for-profit sector, from Hobart to Darwin and everywhere in between.
They are all helping to build an equitable and sustainable Australia.
It is also dedicated to my sons William and Fraser and to my grandmother, Mary
Aotea Penfold (nee Campbell), who worked at the Australian Council for Educa-
tional Research for five years in the 1930s, after completing an Arts degree at the
University of Melbourne.
Foreword
Many Australian people are enhanced by working in the not-for-profit sector.
Catherine Brown is one of them and she has been generous with her time and
skills in the pursuit of better governance. Her role in the community foun-
dation movement where we first met has been significant as she has nurtured
and supported foundations Australia-wide, including the Sydney Community
Foundation. Great Foundations brings together her experience, insights and
professional skills. It is my hope that it will encourage and inspire more people
to become engaged in the not-for-profit sector.
The not-for-profit sector is a sector of passions and legacies, both personal and
professional. When I reflect on my life I realise I have been engaged and active
in this sector for more than four decades. How I do business there constantly
informs much of my concurrent professional life. However, I learned on the
job and having access to a book like this could have saved some pain and
many mistakes. My first experiences were like being in a documentary with-
out a script. There was no reference point and the narratives were of heroic
or defeated warriors who almost inevitably suffered burnout. There is a better
way and this book takes us there.
Great Foundations is a timely book. Recognition of the capacity and growth of
the not-for-profit sector has never been greater. Many young people want to
work there and many mature people are looking at the sector and wondering
if this may be the best way to give more back to the community. I hope that
they decide this is the preferred pathway. Being part of governance within this
v
Foreword
sector is complex and challenging yet it will be some of the most rewarding
work you can do.
As one who has navigated this sector, let me urge that you read Great Foun-
dations before you begin your professional not-for-profit director career. Your
opportunity to make a difference will be assisted by the insights offered. For
example, keeping true to purpose sounds easy but as the community around
changes it can be very difficult for organisations to agree on what the real
purpose might be, and whether the cost of change and adaptation might be
too high.
Great Foundations is an inclusive book, written for both executives and non-
executives who share the leadership of the not-for-profit sector. The chapter
checklists are invaluable and will help directors stay on track. The language
is clear and friendly and my Masters students will get as much from it as the
community person taking on her/his first corporate role.
Let me not give the impression that Great Foundations is without the romance,
passion and sense of a sector where so many people feel they are working for
the common good. It is written from a strong and disciplined base of practice
and experience, yet still manages to capture the satisfaction of doing valued
work in the community and being part of a common humanity.
Wendy McCarthy AO
Company director, social commentator, mentor
McCarthy Mentoring
vi
Contents
Foreword v
About the author ix
Introduction 1
Chapter 1 Why is the not-for-profit sector different?
The big picture 3
Chapter 2 Why are we here?
The purpose angle 6
Chapter 3 How do we know where we are going?
Strategic direction 11
Chapter 4 What sort of not-for-profit is this anyway?
The legal perspective 23
Chapter 5 What should our Board be doing?
The Board perspective 33
Chapter 6 Who makes things happen?
The human resources angle 51
Chapter 7 Do we understand and manage risk?
A risk perspective 61
vii
Contents
Chapter 8 How do we get money in the door?
The fundraising angle 68
Chapter 9 Why is grantmaking not easy?
The grantmaker perspective 84
Chapter 10 How do we manage internal and external change?
Changing perspectives 97
Chapter 11 Do our partner organisations help us achieve our mission?
The partnership view 103
Chapter 12 Do the right people know about us and what we do?
The marketing perspective 108
Chapter 13 Do we spend enough time navel gazing?
The planning and evaluation angle 113
Chapter 14 Do we have a robust back office?
Below the radar! 121
Chapter 15 Future proofing your organisation
Gazing into a crystal ball 126
Conclusion 133
Appendix: Board effectiveness review 134
viii
About the author
Catherine J. Brown is an experienced lawyer, management consultant and
Board director with particular expertise in governance, organisational devel-
opment and the not-for-profit sector. Catherine is Chair of the Queen Victoria
Women’s Centre Trust, Chair of the Greater Metropolitan Cemeteries Trust, a
director of Australian Community Philanthropy Ltd and was Deputy Chair of
the Royal Victorian Eye and Ear Hospital for nine years.
Catherine Brown & Associates Pty Ltd was established in 1999. Prior to becom-
ing a consultant, Catherine worked in commercial law for several years before
spending 11 years as a solicitor and senior executive within non-government
human service organisations, including three years as CEO of the Brain Foun-
dation and senior roles with Wesley Mission and the MS Society of Victoria.
Catherine has consulted in philanthropy, not-for-profit governance and
organisational development to a range of organisations including the Myer
Foundation, the United Nations University, Deakin University, the Ian Pot-
ter Foundation, the North Australian Indigenous Land and Sea Management
Alliance, the Australian Council for Educational Research and ANZ Trustees.
She is the author of The Community Foundation Kit: Building stronger Australian
communities and co-author of Conversations about Possibilities: Themes and
reflections from the International Philanthropy Collaboration. She presented at
the first Global Community Foundation Symposium held in Berlin during
2004 and at the international WINGS Conference in Bangkok during 2006.
In 2008 she appeared before the Senate Inquiry into Disclosure Regimes for
ix