Insight - June 29, 2011

As a leader of a successful Prince George's nonprofit, I understand the importance of stepping out of my comfort zone in pursuit of excellent stewardship. I'm always glad to see HSC events and information offering the best ideas and tools to do the work needed in our community. And, I'm grateful to offer HSC's support as you learn to embrace something "new."

I have learned that change doesn't have to be painful or difficult. With the right guidance, creative ideas and genuine support from peers and respected leaders, "newness"--even in difficult times--can be just the thing our organizations need to forge ahead.

In This Issue of Insight

For most of us with fiscal year ending on June 30, it's time again to prepare for our annual audit.This issue offers some great tips on how to understand and how to prepare for a vital part of maintaining a vibrant nonprofit. We have also compiled a review of our annual conference with highlights of some truly innovative approaches to delivering community-based service. Finally, we bid a fond farewell to several HSC Board members whose service has grown HSC from emergent to impactful in record time, and welcome our newly elected colleagues.

Yours in Excellence,

Jerry Adams

Executive Director

Your Organizational Audit: A Closer Look

Keeping an eye on your organization's processes and finances is essential. But, it can sometimes seem overwhelming or even a little scary. If you are new to audits, or are considering taking your practices in a new direction, here are the basics:

Audits are a review of a company's operations for financial information. Operational audits examine a company's compliance with operating standards or regulatory guidelines: are you doing things according to your own policies, acceptable accounting practices and the laws and regulatory requirements of your funders. Financial audits examine your financial information to determine your company's financial health: are you losing or making money.

According to the Maryland Secretary of State, nonprofits that currently expend $500,000 or more in federal contract dollars in a fiscal year must obtain what's called a 'single audit' to test for compliance with federal grants management standards. If your organization's charitable contributions are at least $200,000, but are less than $500,000 a financial review performed by an independent certified public accountant is required. If the organization's charitable contributions are at least $500,000 an audit performed by an independent certified public accountant is also required.

Getting Good Help

In preparing for your audit, you, of course, must chose an accounting firm. It is a good idea to send a request

for proposals to a number of firms requesting a bid to conduct your audit. Once you chose the firm, they will give you a checklist of things that they will examine. You must prepare these items so that the audit can be conducted in a timely manner.

Check out GuideStar's "Ensuring a Smooth Annual Audit" or the Philanthropy Journal's "Audits for Smaller Nonprofits" for even more practical ways to make light work of a fairly weighty matter.

If this item has been helpful, or you're looking for something different, let us know: email insight@hscofpgc.org.

Conference At-A-Glance!

Nonprofits are on the front lines as Americans suffer through the throes of the current economic disaster. "The economic changes," in the words of Chuck Bean at the Nonprofit Roundtable, "are not a storm, but climate change."

On June 8th, the Human Services Coalition of Prince George's County (HSC) presented reThink, reTool, reNew: Nonprofit Sustainability in the New Reality. The conference committee planned a five-hour session to encourage members to ReThink nonprofits' role in our community, to ReTool our skill sets in order to fulfill the new vision, and to ReNew and reenergize ourselves to continue building vibrant communities.

The conference highlighted the leadership role we all take on as HSC members, directors and staff. One of the main goals of HSC is to position nonprofits to advance to leadership positions in Prince George's County. Over the past three years, the Human Services Coalition Board of Directors and its membership have worked hard to bring a strong voice and visibility of the nonprofit community into the discussions regarding funding, building and strengthening the nonprofits sector in Prince George's County.

Thank you SPONSORS & VOLUNTEERS for your commitment to building excellent nonprofits!

Gold Sponsor: Pepco. Silver Sponsors: M&T Bank; MNCPPC; Capital One; Washington Gas; Ingrid M. Turner Chair, Prince George's County Council (D-MD, District 4); Jamel (Mel) Franklin Member, Prince George's County Council (D-MD, District 9). Bronze Sponsors: Mullen, Sondberg, Wimbish & Stone, P.A.; Eric C. Olson Vice Chair, Prince George's County Council (D-MD, District 3); The Community Foundation for Prince George's County; Strategic Solutions Center. COMMITTEE: Luisa Montero (Chair), Jerry Adams, Bea Rodgers, Michelle Dunn, Deniece Fields, Denise Harris,
Rosemary Pezzuto, Joyce Simms and Ed Smith. VOLUNTEERS: AARP Prince George's.

HSC Advocacy in Action

Budget Adopted: $2 million Restored to Discretionary Funds

Once again, HSC mounted a successful campaign to have a proposed $2 million cut in the county 2012 budget restored. In April 2011, the County Executive submitted his proposed 2012 budget to the County Council for adoption. The County Council offered three budget hearings at which they would receive testimony from interested parties with recommendations as to how the budget could be modified to better serve the citizens of the county.

HSC, partnering with the Center for Nonprofit Advancement and the Nonprofit Roundtable's Think Twice before You Slice campaign, conducted informational sessions for our members highlighting where cuts to nonprofits existed in the budget and the impact those cuts would have to nonprofit programs. HSC also hosted a training session for any nonprofit that wished to testify seeking to restore those cuts. Participants left the session with a well crafted three-minute testimony.

As a result of our collective testimony, the County Council restored the $2 million.This $2 million is in the category of "discretionary funds." In this category, the County Council now has a pool of $1.5 million that it has already earmarked for selected nonprofits to receive. In addition, each County Council Member has $100,000 that s/he can distribute at his/her sole discretion. Likewise, the County Executive now has $2 million at his discretion.

HSC's testimony asked that both branches establish grant award practices that 1) identify the most critical needs in the various districts, 2) identify nonprofits that have a demonstrated impact on those needs, 3) award funds in amounts that will produce impact, and 4) require reporting that shows results.

Visit the County website http://www.princegeorgescountymd.gov/ in July as the County Executive and the County Council will post their new application process for those seeking a portion of these funds.

Your efforts matter. To learn more about nonprofit Advocacy, visit HSC online: www.hscofpgc.org.

CH-CH-CHANGES: HSC Salutes Outgoing Directors for Visionary Service

The kind of programmatic success and community impact HSC has experienced in the past three years simply doesn't happen without creative and committed leadership. The Board of Directors of HSC has been the bedrock and the launching pad from which several new tools and effective campaigns have been launched, this year.

So, it is with immense satisfaction and sincere sadness that we acknowledge the departure of three HSC Directors: Bea Rodgers, Former ED of Resource Connections (Human Resource Committee, Ad Hoc: By-Laws), Linda Saffell, Prince George's County Feral Friends, SPCA (Secretary and Chair, Public Policy Committee), and Ann Marie Binsner, CASA of Prince George's County (Immediate Past President, Human Resources Committee, Board Development Committee). Each of these respected leaders has served since 2006 and played a critical role in the expansion of HSC, the establishment of organizational headquarters, the development of the Nonprofit Incubator Program (NIP) and the strategic plans now going forward.

During the 2011 conference, new Directors were elected to a three-year term.HSC proudly welcomes: Cheryl Petty Garnette, Ivy Community Charities of Prince George's County; Former Senator David Harrington, Common Health Action; Deniece Fields, AARP; and Karene Brodie, Hillside Work-Scholarship Connection.

Elected Officers include: Maggie Holmes (The Write Group LLC), President; Gwen Ferguson (United Communities Against Poverty Inc.), Vice President; Jonathan Rondeau (Melwood), Secretary; and Scott Birdsong (GUIDE), Treasurer.

Learn more about HSC leadership and their work in upcoming editions of INSIGHT.

To ask our Board Directors a question about effective Board service, email them at insight@hscofpgc.org.

Copyright © 2011 - Human Services Coalition. All rights reserved. Insight is published monthly by Human Services Coalition of Prince George's County, Inc. E-mail: insight@hscofpgc.org, Web site: www.hscofpgc.org. Phone: 301-429-0414.

Editor: Dawn Goodman Washington. Contributors: Jerry Adams, Dr. Steve Dubb. Publication Advisor: Colette Gingles.