Administration
Frequently Asked Questions about Administration
You can make an outcome measurement plan that has multiple elements. Ask who, what, when, and how for each outcome and the output that is indicative of that outcome. Your data sources, data collection methods, and data analysis will vary depending on your outcome and the indicator of that outcome.
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The strategic planning process consists of four basic elements: critical issues faced by the organization, the organization’s strengths, opportunities available to the organization, and different approaches available to the organization. An organization must identify and prioritize the critical issues it faces. Then, the organization must decide how its operational strengths can be applied towards the resolution of critical issues. Next, the organization should identify available opportunities (e.g., opportunities for facility renovation, fundraising expansion, collaboration, etc.). Finally, the organization must decide upon the approaches that will allow it to take advantage of new opportunities and address critical issues. Three key questions should be repeatedly asked during this process: Are critical issues being addressed? Is this on track with our mission? Is this a financially responsible decision?
Learn more: The Free Management Library: All About Strategic Planning
Though slightly oversimplified, the functions of an organization can be divided into ends and means. Ends, or desired outcomes, are generally the responsibility of the board, while means, the method for achieving the ends, fall to the organization’s administration. There is certainly overlap between the two categories, but growth is usually stunted in organizations whose board members spend too much time doing the administration’s work.
It is important to present potential board members with a written summary of expectations and responsibilities in order to avoid confusion or misunderstandings after persons join the board. However there are times when an organization will have to confront a board member who is not actively participating or fulfilling his or her responsibilities. When board members fail to meet their responsibilities it can usually be attributed to one of several factors. The board member might not have been well enough informed or might be confused about what is expected of him or her. The board member might not be comfortable with his or her assignment. It is possible that the member has too many other board assignments or because of too many other commitments in addition to the work he or she is doing for your board. A committee or board chair should talk with the member to determine the reasons for the problem then offer the appropriate solution such as additional training, reassignment, and so on.
An outcome is the final component of any given program carried out by an organization. When a program’s inputs (resources dedicated to a particular program, including staff), activities (how the program utilizes the inputs) , and outputs (the direct products of the activities) are all taken into account, the result is an outcome— the effect the program had on the participants. After the activity, did the participants increase their skill in a particular area? Was their behavior modified? Did they accept a new perspective or obtain new knowledge? Many times, organizations keep thorough records about inputs, activities, and outputs, but they do not have a complete sense of what happens to participants after they receive their services.
The Iowa Principles and Practices for Charitable Nonprofit Excellence explains that "A board of directors’ primary responsibilities are to determine the organization’s mission and its policies; set the organization’s overall program for the year and engage in long-range planning; establish the fiscal policy; provide adequate resources for the activities of the organization; select, evaluate, and, if necessary, terminate the appointment of the chief executive; and develop and maintain communication links to its constituencies and the community." (V.A.1) The board sets policy and monitors policy implementation. “Policy” generally means an articulation of some broad principles to govern particular nonprofit issues. So, for instance, a fundraising policy would usually govern such issues as types of fundraising campaigns (capital, annual corporate sponsorship, etc.,) and how those, generally, would be administered. In addition to the policy, the board is often involved in drafting and adopting “practices” which are the more detailed operational implementation of policies. The board is significantly involved in fundraising activities, and its leadership in pursuing funding goals is critical to the overall success of the nonprofit’s fundraising campaign. Budgeting is also a primary board responsibility. In assessing the budget, the board looks at such things as cash flow, the statement of activities, and the relationship of restricted and non-restricted funds to activities being funded. In analyzing the annual budget there should be a review of income and expenditure variances in the actual budget as compared to the proposed budget. Periodically, the board would also review the effectiveness of internal controls, a system designed to minimize errors in the bookkeeping and to prevent fraud. The annual budget review is usually a review of the operating budget. The board should also review the capital budget for larger equipment and facility needs.