Linda Jacobs is CEO of the Center for Volunteer & Nonprofit Leadership, which offers services to ensure local nonprofits are on a pathway to success. [Photo by Duncan Garrett Photography]
(16) for cooperative organizations to finance crop operations. Jacobs estimates that 80% of local nonprofits are 501(c) (3) organizations, which operate for religious, charitable, literary, educational and other specified purposes. Human services are the largest category, with education following, along with arts, culture and the humanities. “The tax write- off is probably the number-one advantage,” she says. She adds that the main distinction between a business and a nonprofit, regardless of type, is that an individual isn’t the owner. “It’s about living the mission and making a difference in the focus area,” she explains. At the
to run a business. “In many ways, it’s just like running any business,” she explains. Generating funds involves soliciting donations, but “Individual giving isn’t number one,” she says. Rather, the most common source of revenue is fee for service, and so nonprofits such as hospitals charge for services, and museums and concert halls charge for admission. (Museum stores are a revenue source, but as retail operations they are businesses and are taxable.) In addition, CVNL offers a four-part Board Governance Boot Camp, which Jacobs, who is a consultant in board governance, leads in partnership with Chief Capacity Building Officer Tom Hayashi. “Board
same time, an organization has to follow its bylaws, stay within its mission and do annual financial reporting, such as filing 990 forms with the IRS to show that it’s in compliance with federal regulations. Running a nonprofit comes with certain responsibilities, which can be daunting for the inexperienced—and “for 60 years now, CVNL has been a leader in providing support to nonprofits,” says Jacobs. “We know that nonprofits are the backbone of our communities,” Jacobs says. Thus, CVNL offers training to help organizations succeed, with strengthening leadership, encouraging innovation and
governance is my nerdy spot. I just love that area,” she says, and the goal is to
give nonprofit executive directors and board members the skills they need to run an effective, sustainable organization and a clear understanding of their duties.
For people who are new to the nonprofit world, Jacobs has some
advice. “Surround yourself with people who know what you don’t,” she says. “Don’t reinvent the wheel. Read, talk to people, research. Be a student.” The goals should be to fill a need that’s not already being addressed and to create an organization
empowering individuals as its primary goals. All training and leadership programs are related to specific focus areas and include leadership, oversight, generating funds and planning and management. Oversight looks at risk management, while planning involves strategic planning and setting goals. Leadership looks at organizational development, and management includes all the things one needs to know
that’s distinct from others. She points out that times have changed, and nonprofit leaders must look at new ways of doing things and strive to be relevant. “Know what’s going on around you,” she says, and be aware of social and political issues that could affect an organization.
January 2024
NorthBaybiz 23
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