HOTLINE

Answering Readers' Questions on Creating Jobs, the Need for Charity Audits, and More

The Chronicle's Philanthropy Careers asks its readers to submit questions about job hunting, recruitment, and management challenges in the nonprofit world. In our monthly advice column, we respond to some of your inquiries with tips about resources and wisdom from experts in the field.

Q. I work as an office assistant in the development office at a higher-education institution and I'd like to approach my bosses about creating a new donor-relations coordinator position. What is the best way for me to present my proposal, and how should I apply for the job?

A. Your enterprising spirit is sure to win you points with your supervisors, but you want to make sure that you approach this situation in the right way -- and that means that you're going to have to do some homework.

Resources are always the main issue with creating a new position in any nonprofit organization, says Rich Lynch, assistant vice chancellor of university advancement at the University of California at Irvine. An additional position is a considerable expense, so your challenge is to make an ironclad case that the job that you're proposing is worth the investment, says Mr. Lynch. And the best way to do that, he says, is to be precise: "Describe what specific services should be provided or expanded, and how you feel that providing such services would address key objectives of your organization."

Your first step, then, is research. You're going to want to do a little sleuthing to find out whether your department has considered such a position in the past. (If they have, and rejected it, that doesn't mean it's a dead issue, but you will need to explain why your proposal or today's circumstances are different.) Then, document the reasons why you feel the position would be beneficial. For example, Mr. Lynch suggests, you might start tracking phone calls or correspondence that you are handling in your current position to back up the need for the new position.

Next, you're going to need to think through how your proposed position will improve your institution's fund-raising results, says Ron Cohen, vice president for university relations at Susquehanna University.. "Do you believe existing donors will give more? Will prospective donors move closer to becoming actual donors? Will your work free up field staff to be more focused and productive in the field? You need to answer questions like these in ways that suggest the institution will be better positioned to raise more money in the future," he says. The more specific you can get, the better. Mr. Cohen also suggests that you think about how your supervisors will be able to evaluate you in the new position.

You might be tempted to write all of this up and submit to your supervisors straight away, but Mr. Cohen urges you to take it a little slower. First, set up a face-to-face meeting with the supervisor who you feel will be the most receptive to your proposal. Your goal isn't to get the job approved at that point, but to win approval to submit a formal, written proposal.

If you get the green light, create a proposal that concisely and persuasively communicates all that you've learned during the course of your research. Don't write in an academic style; write to sell. For a few pointers, check out For a Good Cause: The Complete Guide to Crafting Proposals and Other Persuasive Pieces for Nonprofits, by Joseph Barbato and Danielle S. Furlich (Fireside, 2000, $15). Although its focus is on grant-proposal writing, you might find the chapters on writing itself helpful. And while it is not focused on nonprofit organizations specifically, check out the primer Writing That Sells: Persuading Others to Buy Your Ideas, by Kathleen A. Begley (Crisp Learning, 2002, $13.95).

If your proposal doesn't fly, consider offering a few alternatives. You may want to offer to take on a few donor-relations activities within the framework of your current job, suggests Mr. Cohen. If your circumstances allow, you might want to suggest handling the position on a volunteer basis, Mr. Lynch says. You can always ask to have your proposal reconsidered down the road. But whether your proposal ultimately succeeds or not, it is definitely worth the effort to make the request. "You will have distinguished yourself as an employee dedicated to seeking new opportunities to better your organization and gained some experience that will serve you as your career progresses," says Mr. Lynch. Good luck.

Q. I have three questions about audits. One, our charity usually has one done annually, but would every other year be sufficient? Two, are there any regulations that require charities to undergo audits? And three, can you cite the reasons why audits are good for nonprofit organizations?

A. In these days of accounting scandals, audits are definitely a hot topic. To answer your last question first, audits provide a number of important benefits or charities, says Andrew Lang, national director of the tax consultant BDO Seidman's Institute for Nonprofit Excellence, in Washington. "Nonprofits that have audits are deemed by the community to have more rigorous accounting controls -- an important perception in today's distrustful environment," he says. Audits also provide your board with an independent opinion on the accuracy of the financial information they receive, which helps them to fulfill their fiduciary responsibility, he says. And, he adds, although it may not be pleasant, "management also benefits from having auditors review their processes and procedures to determine whether there are noticeable weaknesses."

Generally, a charity's bylaws will require an annual audit, says Mr. Lang. And, starting this year, if your organization spends more than $500,000 in federal funds per year, it will need to undergo an annual financial assessment to fulfill the requirement of the Office of Management and Budget's A-133 audit. (Learn more about the A-133 audit here.) But if you're not in either situation, he says, it is certainly possible to have an audit every other year.

However, Mr. Lang says, there are two practical concerns in forgoing an annual evaluation. "First, many funders insist on recipients having an annual audit as a requirement to receive funding," he points out. Second, you may not save that much money by going to an every-other-year schedule. An auditor will have to review opening and closing balances of the year they're assessing, and so they will have to spend time reviewing numbers from the previous year anyway. "Having an audit one year and not the next," he says, "will make those years in which the audit takes place significantly more expensive."

Q. I just got a job as the manager of planned giving at a hospice, but have no experience specific to that field. Where can I find information to help me understand planned giving?

A. Your first step: Find a mentor, suggests W. Douglas McGaughey, senior director of gift-planning services at the University of Texas Medical Branch, in Galveston, Tex. The National Committee on Planned Giving, a professional group for fund raisers who arrange bequests and other gifts that provide special tax and financial benefits, maintains local councils that provide educational opportunities as well as a chance to meet veteran professionals who might be willing to advise you. Next, Mr. McGaughey recommends signing up for an electronic mailing list devoted to the field, such as Gift PL, hosted by the National Committee on Planned Giving and the Yahoo Planned Giving Group. (To join, send a blank e-mail message to plannedgiving-subscribe@yahoogroups.com.)

Planned giving is a complicated field, and Mr. McGaughey recommends that you tackle the technical tools of such gifts first, starting with simple bequests in a will, or designations on a life insurance or retirement account. You can move on to other, more complex gift-giving vehicles later. Two books that he suggests: Planned Giving Management, Marketing, and Law, Third Edition by Ronald R. Jordan and Katelyn L. Quynn (John Wiley & Sons, 2003, $195) and The Complete Guide to Planned Giving, by Debra Ashton (Ashton Associates, $85). The last edition was released in 1991 and is currently out of print, but a new edition is on the way; to find out when it's available, check out the author's Web site. For more resources, check out the Foundation Center's list of planned giving resources.

Q. I have three small children, and realize that in about 15 years, my first child will be in college. With tuition costs rising, I'd like to plan now for their education. I'd also like contribute toward the education of my friends' and relatives' children. My idea is to start a nonprofit organization and hold fund-raising events that will help support this program. Can you direct me toward any resources that would help me create this organization, as well as suggest some boundaries for who should benefit from the program?

A. It's illegal to start a nonprofit organization solely for the purpose of paying for the education of specific children, says Peter Rohr, private wealth adviser at Merrill Lynch, in Philadelphia. Although you could create a scholarship fund, and seek donations for it, he says, the award process would have to be open to all applicants -- and that means that there could be no guarantee that your youngsters would win. You could limit the grants to a particular group of people, such as the people in your hometown, or students who plan to major in a certain field of study. But you can't limit the scholarship grants to "any predetermined individual applicants, like your children, relatives, or friend's children," he says. Your best source for more information on this may be the Council on Foundations. Search the site using the keyword "scholarship," and you'll find a lot of helpful information.

If you're interested in saving specifically for your own children's future, Mr. Rohr recommends that you consider a Section 529 plan, in which the Internal Revenue Service code allows you to save money in a tax-deferred account to pay for higher education expenses. Go here to learn more about 529 plans.

Got a question about job hunting, recruiting, or managing in the nonprofit world? Send it to us at hotline@philanthropy.com.