All posts by Alan Cantor

Think Before You Endow

I was recently asked at a public forum why I don’t like endowments. I answered: “It’s not so much that I don’t like endowments. It’s that nonprofits and their donors like endowments too much.”

Endowments have become the default destination for major gifts and bequests. If someone dies and leaves an organization a lot of money, the odds are good that the bequest will come with instructions to create an endowment in the name of the deceased. If a nonprofit launches a major campaign, there is inevitably a significant endowment component. As I’ve said before, endowments feel good. Endowments connote a certain sense of immortality. And endowments seem like a prudent investment. But do endowments, paying out 4% or so of their assets a year, have all that much impact? Or are there better ways to direct the donors’ generosity? Continue reading

Share this: Facebooktwittergoogle_plusredditlinkedintumblrmailFacebooktwittergoogle_plusredditlinkedintumblrmail

The Departed

So what should a nonprofit board do when high-ranking staff members leave the organization?

This may sound radical, but shouldn’t the board try to figure out why these staff members left?

A few years ago a friend of mine found himself in an awful work situation. He was the development director of a nonprofit with an iconic and charismatic founding CEO. The organization had the reputation of being a highly effective operation. But my friend described an utterly chaotic and dispiriting workplace. The CEO insisted on signing off on each and every decision and piece of correspondence. Then, contradictorily enough, he would disappear for days at a time, even a week or two, without warning.
Continue reading

Share this: Facebooktwittergoogle_plusredditlinkedintumblrmailFacebooktwittergoogle_plusredditlinkedintumblrmail