Westpac and Organisational Mentoring.

It's always good to see large companies giving back to the people, and Westpac has launched a program that will have on-going benefits for many in the broader community.

The Organisational Mentoring Program is designed to support and encourage Not For Profit (NFP) management officers and staff through skills transfer and coaching from Westpac staff.

Westpac are understandably proud of their upcoming 200 year anniversary, and are keen to share their knowledge of business sustainability with close to fifty NFPs, Indigenous organisations and social enterprises throughout Australia that they have already included in this program.

Westpac hopes that the general skill development that their program offers will have a positive influence on the wider community.

Our Governor General, Quentin Bryce, was at the launch of The Organisational Mentoring Program and she applauded the bank's move to help develop the leadership, HR processes and work culture of the organisations they have taken under their wing.

Leading on from Westpac's successful pilot of The Organisational Mentoring Program in 2008 with the Juvenile Diabetes Research Foundation (JDRF) they have further developed their innovative skills transfer initiatives.

This mentoring model is seen as an opportunity for Westpac employees to develop leadership and coaching practices while helping to influence improvement and business sustainability through an exchange of management tools and methods for ongoing business improvement.

Not only do the mentors offer skill development in financial sectors, but they coach in better workplace practices, engaging employee commitment and reducing the sometimes high levels of employee turnover.

We hope that this scheme broadens even further, allowing many more Not For Profit groups to benefit from the intitiative.

Well done Westpac.

Engaging Younger Generations on NFP boards

A recent study* found 62 per cent of NFP board members were aged 50 years of over. Those aged between 30 and 49 (mainly Gen X) represented 36 per cent of board members, and a mere 2 per cent were under 30 years old. That means almost an entire generation, Gen Y (those born between 1981 and 2002) are not represented on NFP boards.

In the article, Why Don’t More Members of Gens X and Y Join Boards? Emily Heard outlines some of the reasons why younger people are hesitant to join boards.  They include a reluctance of older generations to involve the younger and the general tendency of people to recruit others like themselves.

So how do you overcome this and engage younger people on NFP boards?

• Appoint a youth co-ordinator to take responsibility for young members to engage and recruit them at a volunteer level.

• Use marketing strategies to ‘speak to youth’.  Review your advertising and target publications specifically for youth such as street presses, music magazines, FM radio, internet etc.

• Let your existing members and supporters know you are actively seeking youth involvement and use them to spread the word and find people they know might be interested.

• Set up a mentoring program so that all members (young and older) can exchange knowledge and ideas.

• Adapt NFP organisation rules and procedures to accommodate younger people and instigate extra training programs.

• Give a clear outline of what is expected so they know their duties and how they can fit into the organisation.

Considering Gen Y is the second largest generational demographic (behind the Baby Boomers) it is clear there is a definite lack of age diversity on NFP boards. The benefits of attracting younger people to NFP boards are numerous and it is important the next generation of leaders are recruited now.

* BoardSource: Nonprofit Governance Index 2007

I'm on a committee

Saw this funny poem in the Heart Support - Australia newsletter and thought you might enjoy it too.

Oh, give me some pity, I’m on a committee.
Which means that from morning to night,
We attend, and amend, and contend, and defend,
Without a conclusion in sight.

We confer and concur, we defer and demur,
And reiterate all of our thoughts.
We revise the agenda with frequent addenda,
And consider a load of reports.

We compose and propose, we suppose and oppose,
And the points of procedure are fun!
But though various notions are brought up as motions
There’s terribly little gets done.

We resolve and absolve, but we never dissolve,
Since it’s out of the question for us.
What a shattering pity to end our committee,
Where else could we make such a fuss?

Is this your experience of being on a committee. :-)

Why Good Financial Management is Essential

Not-for-profit refers to the fact that no individual will gain from the profits earned by an organisation, but any well run organisation should be achieving some level of profit so it can meet the needs of its members or beneficiaries and to stay solvent.

Good financial management of an NFP is as important as it is for any other organisation or company. They require sound budgeting, receipting and invoicing and cash flow practices and should be audited at least annually to maintain the accuracy of all financial records.

NFP is still a business so it is important to know the financial position at any time.  How else will you know which activities are profitable and which are costing you money?  The Board of Management is responsible for the financial health of the organisation and if it is mismanaged, its members are often liable.  Do you really want to risk your personal assets?  

Members of the NFP and other members of the community that have supported their cause need to be able to see how their money has been used and the financial records need to be open to question and accessible at all times to all members.  Technically, anyone who is a member can walk in and ask to see the books when they feel like it.  Your books must be maintained to professional standards.

Financial management of an NFP organisation is a responsibility that is taken on by usually one or a small group of people but no matter what your role, it is important that you have a basic understanding of accounting processes so that you know that everything is being done properly.

Finance, Administration and Back Office Awards (FABO) finalists announced

The Finance, Administration and Back Office Awards (the FABOs) are an opportunity to recognise the huge contribution that non-profit organisations make to the Australian community and to recognise the ‘quiet achievers’, the people who work tirelessly behind the scenes of our non-profit sector.

The 2010 finalists have been decided. Judges selected forty finalists in nine categories from well over 200 nominees, more than expected for the FABO’s inaugural year. And it was a tough decision!

The aim of the FABO Awards is to celebrate and publicly appreciate the contributions made by those people who spend their time working behind the scenes of our non-profit organisations and social enterprises, people in Finance, Administration, IT, Human Resources.

All nominees and finalists will be recognised at the FABO Gala Dinner Celebration, 18 October in Sydney.

For more information or to purchase tickets to the Gala dinner go to the FABO website.

Fraud in Not-for-Profit Organisations

Fraud in not-for-profit organisations is, sadly, not a rare event.  If you do an internet search you will find lots of reports of court cases where a committee member has stolen funds from a community group.  Often the group is something small like a volunteer fire brigade or kinder committee and they are the ones who can least afford the loss.

The problem with smaller not-for-profit groups is that they are often from small communities where it is hard to find someone who is willing to take on one of the roles.  Sometimes members hold roles on a couple of different committees so they tend to do their own jobs and not worry about the rest.   I'm sure you know people just like this.

This leaves the organisation open to misuse of funds.  Reading reports of some of the court cases will show you that people accept the roles in good faith but that, through unfortunate circumstances or a gambling addiction, they begin dipping into funds which they can never pay back.  It's sad for the organisation and the individual that usually this goes on for a long time before it is discovered.

What can you do to help reduce the risk of this happening in your organisation? 

1.  Identify the areas of potential risk. 

2.  Develop a plan to monitor the situation.

3.  Take action.

For smaller groups this means actively working with the treasurer to help record and monitor your invoices and payments.  It means not leaving the control to one person.  An accounting system like Admin Bandit can bring some control to your bookkeeping because it is harder to 'fudge' than manual accounts.

If you are the treasurer for your organisation you need to protect yourself from risk by having at least two signatures on each cheque and regularly having the cash tin counted and balanced against your books.  It means asking for help when risky or difficult work comes in.

The risk of fraud is always present but if you can minimise the opportunity you will be protecting your organisation's future.

Canberra accounting software rewarded for helping community

Senator Kate Lundy presents ACS award to Nerida Gill

Admin Bandit online accounting software continues to sweep the awards pool with its eighth major accolade in four years, receiving the ACS Canberra ICT Community Award at the awards ceremony on 16 September 2010.

“Our software is fast developing a reputation as the premier financial management tool for Australia’s grass roots community and non-profit groups,” said Admin Bandit Director, Nerida Gill.

“The ACS is the peak body for ICT professionals, so to have our peers recognise our commitment to supporting community life in this country is a terrific endorsement,” she continued.

Admin Bandit has produced the only accounting software tailored to the unique needs of organisations at the grass roots of the community sector. It solves the many problems faced by volunteer treasures by providing users with the exact tools for meeting their legal responsibilities, including BAS, audits and monthly committee reports.

Award presenter Senator Kate Lundy MP said, “I am thrilled to present this award to Admin Bandit Online because it is a fantastic financial management software that supports hard-working volunteers who are contributing to their community”.

The award is another feather in Admin Bandit’s cap for what is turning out to be an exceptional year. In the last 12-months, the company has continued to upgrade its web-based software application, secured an internationally-renowned investor, won the nation’s most prestigious ICT award and represented Australia at the Asia Pacific ICT awards. Meanwhile, Ms Gill was crowned the Women in Information and Communication’s woman of the year for her contribution and role as mentor in the ICT industry.

“These successes are a great boost for our morale and credibility,” Ms Gill said. “However, as a former volunteer treasurer, the biggest reward is giving community and non-profit organisations a tailor-made product to modernise their financial management. Ultimately, that results in an enriched community life for us all.”

Photo by Emily White Photography