 Good morning everyone. Good afternoon. Good evening wherever you may be coming to us from. I'm Julia Patrick, CEO of the American Nonprofit Academy. I am joined today by LaShonda Williams, one of the wonderful trainers at Fundraising Academy. And LaShonda, I always, when I see your name come up on the schedule, I'm always like, Oh, I want to do this because you're super fun. And it's, I love hearing your point of view. So you ready for it? I'm ready. Let's get fired up and fired away. All right, let's go. Again, we want to thank all of our presenting sponsors who are with us day in and day out on this journey. They include Blumerang, American Nonprofit Academy, your part-time controller, nonprofit thought leader, Fundraising Academy at National University, Staffing Boutique and the nonprofit nerd. If you've missed any of our episodes or you want to go back and research something, we have more than 700, actually close to 750 episodes. And you can find those on Roku, YouTube, Amazon Fire TV and Vimeo. You can also download our podcast Q us up so that you'll never miss an episode. Okay, Cherise from Biloxi, Mississippi writes in, Do we need to ensure our volunteers when they are on our property or working at one of our outdoor events? We're going to start some walks and hold neighborhood meet and greets. Wow. Good question. It's a great question. It's a great way to get started because volunteers are the heart of most nonprofit organizations. They help provide supplemental resources when we don't have the said monetary resources. They provide talent, skills, treasures, but most importantly, we want to make sure that when they're in our space that they are safe. And so with that being said, you want to make sure that when you're engaging volunteers first and foremost, you start off with what are the expectations and the roles and the types of engagement that they'll have on behalf of the organization. Then you also want to provide adequate training for them. So interacting with some of the neighborhood residents and what some potential challenges could be or barriers as well as how to sell or demonstrate the impact of the entity. Because you're leaving the property, it does put your organization in some liability areas. So with that, most nonprofits will ask their volunteers to sign a waiver. And with the waiver, it provides liability protection from the individual organization. And that volunteer says, I'm willing to act on behalf of you. And I do understand that there may be some potential risk. However, the organization will try to mitigate them as much as possible, but there are things that are impossible to predict. So to protect the organization, I would say you need to have volunteer waivers in place for everyone when they come on to the campus, especially when engaging outside of the property where you have a lot of variables that they may encounter. Yeah, I think this is a I love what you said. And I think that that's something we really need to be thinking about. We need to be thinking about this when we have, you know, black tie events. I mean, when we're going to, you know, an offsite environment, absolutely. And I would say the first starting point to your piece of this, LaShonda, is to say, talk to your insurance agent and whoever's doing your coverage because they will have risk assessments. They'll have a lot of risk assessment. Exactly. And, you know, I don't know of a resort or event venue that will work with a nonprofit that doesn't ask for these some liability coverage. Yeah, exactly. So, you know, it's it's in the ecosystem now going out into a meet and greet different situation. But yeah, definitely different. Talk to your insurance carrier because you don't want to learn the hard way when somebody trips and falls and then you've got, you know, some sort of, you know, and then, you know, it's funny that you should say that, Julia, because also thinking about trips and falls, thinking about the size of the organization, when discussing with your insurance carrier, one of the things they will want to know is what the traffic, the foot traffic will be. And so depending on the size of the organization, it may or may not impact not only your coverage, but your coverage costs. So you want to make sure that you're protected because one, you want to protect the entity itself. But then you also, again, you have that option to enforce or to put a policy in place where you ask them to sign waivers, especially when you are off site because that is critical because you there are a lot of variables that you cannot control. Right. I love that you brought that up. I think that's genius. I hadn't thought of it that way, but hopefully, Cherise, this helps you. Okay, let's go to Raphael in Boston, Massachusetts. Oh, I bet it's cold there today. I just had to say that. I'm confident it's cold there today. I just feel like a chill. Okay, Raphael writes in, we're a new nonprofit. We don't exactly have all the paperwork filed, but we're already helping with several neighborhood cleanups and repairs. Can we accept donations? We're not sure if we want all the headaches of formally organizing into a 501C3. Wow. Wow. Not a good structure. Raphael, the complexity of it all. So let's kind of start with how are you defining nonprofit, Raphael, and your operational procedures and how are you defining your mission statement? That's first and foremost what you want to think about. And if you're a true nonprofit, one of the things that is paramount is ensuring that you have the proper documentation in place, not only to protect your organization, but also to provide integrity to reinforce that individuals who make contributions, whether they be time, talent, or treasure, can have confidence in knowing that you're managing their funds, their times properly. So yes, you do need to go through the headache and complete the 501C3 because it is essential. You want to make sure you have that designation because if you don't have that designation, when individuals who make financial contributions come back and ask if you can provide them with a tax statement, you will not be able to do that. And as far as taking money, now I just would not advise to do so. Volunteering is one thing, but taking funds is something totally different and it can put your organization in a fiduciary, challenging situation with the IRS, especially because those documents have not been filed and they will not retro, allowing you to provide documentation to those that may have contributed prior to having that designation. So I say to you with pulling together your volunteers, create your board and have your board help you fill out that paperwork immediately. You know, I love what you said and I think you're absolutely right because it's an overarching compliance issue and many compliance issues come across your desk. And just like the previous question, that's a compliance issue. It is serious compliance. You have to be thinking about these just like you would if you were in a for-profit business, I would suggest, and you're in Boston, which is obviously a major American city, I would suggest that you look into what we call fiscal sponsorship. And that means that you tag your, kind of hitch your, you know, your start to a different wagon and that wagon is pulling a lot of different nonprofits and they use that umbrella structure to allow you to be compliant. And it's a great way for startups to work and to kind of figure out how things are going to go. It's a great way often to get training and to get support. You don't just call on a Monday and get it done on a Tuesday. I mean, it's a process. It's a process. Yeah, as it should be. As it should be. There's a vetting process and all that. But I agree I would not be able to do not take dime one. Volunteer hours, getting together in the community. Yeah, great. But the legality of this is a big issue. Serious issue. So Raphael, we wish you well, but please make sure you have the necessary documentation before collecting funds. Yeah, I mean, and you know, this is the thing, LaShonda, it's such a fascinating thing is that most people don't realize around the world, but especially even in our own country, that it's the IRS, the Internal Revenue Service that gives out the 501C3 status. Exactly. And it's the IRS that you will have to file those documents with. And it's the IRS that individuals file their returns with, with the documentation that your organization provides, or their tax benefits. Yeah, it's really an interesting thing. And so you've got to get you got to get situated before you can do the work of your heart. And I love that Raphael and his group is that looks like they're doing community based work. Oh my gosh, the work of the angels. Great. It is. But a part of the work of the angels is due diligence. And that is where having the proper documentation in place comes in. Yeah, absolutely. Okay, well, let's go to another question that is a new question. I've never had anyone asked this before comes to us from Rowan in Provo, Utah. And Rowan starts off with help. Several of our employees have been asked to be to get paid daily. Apparently, there are new apps that people get paid right away. Can nonprofits do this? I almost wish I had a law to get this particular judge share. So again, some additional complexities. Most nonprofits do not honor daily payments. That's very unique. However, what I can say is one of the most important things about payroll with any organization, whether it be nonprofit or for profit, is ensuring that the proper taxes are withdrawn from every payment. And that includes bonuses, and or any additional funds that you're not expecting. So I would say first and foremost, you will have to check with whoever facilitates your payroll for your organization. And if they are able to manage the volume of the daily payments via an app, and if an app is available that will with will withhold the necessary taxes that are required by the law, because you have to maintain compliance. At the end of your fiscal year, the last thing you want is to be audited, and you've not taken out those necessary funds, and you don't have a 1099 on file for the employee saying that they'll handle their taxes on their own. So there's a it's a balance to that. I wouldn't recommend it because it can become very cumbersome for the organization to try to manage and maintain, especially for the person handling your books. Unless there's some automations in place, I probably would maintain a normal pay structure of a weekly, by monthly or monthly. Yeah, you know, it's really interesting, LaShonda, because when I first saw this question, you know, we're seeing this a lot in fast food service, and yes, retail, where, you know, for, for whatever reason, the labor market is gravitating towards this. And so it is, and it's like all of these app services where you can do deliveries, they offer that. And so traditional workspaces are having to try to identify ways to compete with that pay me now. Right. And I think that, you know, it really depends on the level of labor. I mean, if you have labor that is is more it's fluctuating according to what your needs are, then that might make sense. But your executive your C suite level, some of these longer term pieces in management, that's just not really going to be ideal. But to your point, LaShonda, ask your payroll company, because I've got a bullet. Yes. More and more of these questions are coming forward. Right. And they're not going away. They're not going away. As we talked about, you know, how the newer generation is a little bit different, when it comes to payment and compensation, they're accustomed to things that are different, you know, they can cash app and Vmo and sale each other very quickly, and have access to cash immediately. And so that again, it creates some pressures and 1099 is an option, like you said, depending on the type of labor that's being performed. Yeah, it's a really big thing that I think, LaShonda, we're going to be seeing more and more questions like this and discussions like this. And it's it's a mindset shift. And it's a it's a accounting shift. Big time. Yes, it is. And I'm glad I'm not in accounting. Because it is ever changing. Yeah, it really is. And I think it's something to look at. I also, Rowan, would try and find out. I don't know of anyone using this, but I think it'd be really interesting to find out. And maybe your payroll person company can do this to find out what's happening with other organizations that are using this to kind of learn like, what's their ecosystem? What has been the opportunities and the challenges before you make that decision? Because we don't want you to set yourself up for something that you cannot sustain. And that can be very challenging. Yeah, very sticky situation. Yeah, yeah. It was an interesting question. Okay, our next question comes to us from Las Vegas. And I always love it when somebody asks us not to put up their name, because you know it's going to be a juicy question. Okay, so name withheld writes in two of our board members have given us notice that they are intending to open their own nonprofit doing work similar to us, but different. In essence, they will be competitors to our organization. Can we stop them? Wow. This is like, this is like, I thought what was said in Vegas or done in Vegas stays in Vegas. Oh my God, that's hilarious. Yeah. First and foremost, but just to say, this is a very interesting yet complex on once again. The first thing that comes to mind, Julia, for me, is conflict of interest. Yeah. That's the first thing that populates in my mind. And I say that because when we form our boards, one of the things that we consider when we're thinking about board dynamics is individuals that have linkage ability interests to support our particular organization. But then there's also some non disclosures that you have them complete prior to officially joining your organization that protects your intellectual property and also having confidentiality agreements and the conflicts of interest. So it seems like there are some missing elements which may give way for the former board members to feel the freedom to move forward in the vein of creating something different, but is competitive with your organization. So I would say that you in the perfect world, you'll have a conversation and identify ways that you can work together. And I've had this experience before, unfortunately. But in my particular situation from from what I know about the situation, it became very complicated and it can become a legal matter, just depending on what information they're using and if they're using any of the institutional or the organizational intellectual property. Because that is the clear conflict of interest, you know, one of the three courses would be a cease and desist. But hopefully you won't have to get to that point. I would say engage your board members because you know them and have a very meaningful, transparent conversation and see if there's any mitigating circumstances or if there's a way that you can meet them in the middle. So that instead of it being becoming your competition, that they become a subsidiary possibly of your organization, or they can have a special interest role in fundraising for your organization as an external agent, however, working in concert with you via an affiliation agreement. So there are a variety of ways that you can work with those board members so that it does not become a litigious matter. But do know that if some of the intellectual properties being used and you potentially have opportunities to stop them in a different type of way with legal help. Well, I love what you said and I would have never, ever, ever gone there. That that's brilliant. Because to me, when I read this, I'm thinking well, there's a bigger picture here of somebody within group within the board. They don't think you're you're pursuing your mission correctly or tracking the impacts correctly or whatever that is. And so is this is this a management issue? Or is this like truly a divergence of how you believe that the service should be run the mission vision and values? Exactly. So we didn't get a lot of information. So to some degree, what's happening in Vegas is staying there because we're not getting the whole story. It's true. Well, you know, it's really interesting. I served on a shelter board, domestic violence shelter board. And in our state, marijuana was becoming legal. And there was a huge issue because we had government contracts that did not allow for any on site use of marijuana, right? But then our state was allowing it. And so we weren't the only ones involved in this. I mean, we were one of many shelters that had to grapple with how to be legal, to be right, and to be compassionate. Okay, so there was that that level too, right? And it really became an issue for a lot of the board members for several board members who felt like it was a more it became a moral issue on drug abuse and substance abuse and all this being a big factor in domestic violence. And so it was fascinating to witness an upset that needed to be discussed. And so I loved what you said. I mean, sit down and have the courageous conversation, basically figure out maybe what's the bigger picture? And how can we work together and work forward as opposed to automatically becoming, you know, contentious? No one wants a contentious situation. It doesn't benefit the those that you are trying to impact. It doesn't benefit the organizations. And it's time off task that you can be working together to forward the mission. So yes, definitely task love that statement. Because yeah, that it just it just is bleeding out, you know, energy and intent and good will and all the things that you need to be doing in order to, you know, fund your mission and manage your mission. And so these are the things that really come about. I would say in reflection today, what an interesting assortment of questions, but there's almost seems like a common thread, LaShonda, that I hadn't necessarily realized until right now is that a lot of these things go back to communication. If you have a strong communication up front. Exactly. I mean, did you see that today? Oh, absolutely unequivocally. It all starts with communication. And you know, I am a proponent of transparency. If you are very forthcoming and transparent, it can mitigate a lot of the challenges that you encounter within the organization, whether it comes to branding or external appearances. All of those things matter, engaging your donors, making sure that they are very much cognitive and aware and informed of everything that you're doing, you know, and, you know, talking about money management, which can be a real challenge. And it can be the life or the death of an organization. And so you want to make sure that you're always in compliance because the last thing you want is for a benefactor to find out that they should possibly be questioning how you're managing the books. And the last thing you want is an audit to come back and say that you have less than favorable practices. So one of the things to your point, Julie, you mentioned is staying abreast of what's happening with current trends and what similar organizations are currently doing. And then, you know, you can always reach out to AFP to find out what specific measures are available or what practices are the best practices. And if you're an institution, there's case as a point of reference. So there are a variety of organizations that can provide you current trend information and data in terms of what the best policy or procedure may be and help guide you with an expert in that particular area. But always I always say whenever in doubt, please contact someone because you want to err on the side of caution. And communication is definitely key. I agree. I think I'll throw in the American Nonprofit Academy and we have a news feed that's updated like every hundred and twenty seconds or something from all across the country. And you can by looking at that news feed every day, you can look at it through through the lens of your own region or on a national level. But to see what people are writing about and talking about and these are from scholarly publications and that type of a community. It's not just people voicing their opinions. These are these are cultivated through you know publications. And so for me, I get a lot of ideas about what are some of the trends and what are people thinking and what are they fearing and where success lie or where concerns are starting to kind of bubble up. Because to your point, I think you don't want to you don't have to deal with a problem. If you can kind of get ahead of it and exactly about something, then you're going to might not work. You might still have problems or issues. But at least you won't be just like blind sighted and then have to, you know, scramble, which a lot of these questions, they seem like scramble questions to me today. They do. And I can like I can almost feel the frustration in the text. Yeah. And you know, that's one of the things that you definitely want to prevent. And, you know, speaking specifically as it relates to Fundraising Academy, you know, we have a workshop and I just printed an article about supercharging your board. And so again, airing on the side of prevention, identifying particular professional development opportunities, you know, overcoming barriers. All of these are available on the Fundraising Academy portal. And these preventive measures in place will help you have front will help prevent you from having to be reactive. Let's operate in the mode of being proactive and ensuring that we're up to date on our skill sets. And when we're implementing programs so that we can continue with the work and not have to get caught up in a lot of problem solving that can tend to take away from overarching goals and objectives. Yeah, I love it. I think that's such man, that's like the sage wisdom of the day. And I don't know if we can get any any better than that because again, LaShonda, you're a sage and wise woman because that kind of pulls it all together. LaShonda Williams trainer with Fundraising Academy coming to us from the great state of Texas today. And I just always so appreciate your wisdom and your approach. It's different than mine. Sometimes sometimes it's not, but you always seem to bring in a different voice. And so for us, we are so thankful. It's just really a gift. So thank you. Thank you. LaShonda Williams. Hey, everybody, we also want to make sure that we thank and express our gratitude to our sponsors from Blumerang American Nonprofit Academy, your part time controller, Nonprofit Thought Leader, Fundraising Academy, National University, Staffing Boutique and the Nonprofit Nerd. These are the folks that join with us every day. Finishing up our third year, hard to believe we'll be starting our fourth year of broadcasting in just a couple of weeks. Hard to believe. It is hard to believe and I am so excited for you and congratulations for all that you've done and you continue to do. You are most appreciated because you allow those that sometimes may feel voiceless an opportunity to voice their concerns and also receive some feedback in a meaningful and thoughtful way. So congratulations to you. Well, thanks. It's been it's always fun, never a dull moment. And so it's a good thing and we have a lot of support. So we definitely appreciate and honor that we really, really do. Hey, everybody, we like to end every episode and now we're ending a week with the mantra to stay well so you can do well. We'll see you back here.