5 Steps To A Status Report With C.L.A.S.S.

Whether you’re preparing a report for your Executive Director, your Board of Directors, or a funder – status reports are critical. They show your stakeholders that:

  • You are in control of current situations,
  • You are organized,
  • You are accountable for the resources used, and,
  • You can be trusted to continue doing a good job.

Take this visual example from the Ontario Non-profit Network’s website:


It shows C.L.A.S.S. in that it is:

* Colourful

* Looks Ahead

* Action Oriented

* Scannable

* Simple Language



Most people are visual. By using icons and colours, your readers can tell the status of projects faster. Just like a traffic light system, green means go, and red means stop or something needs attention. Even with a lot of information on the page, it is well organized with lots of white space.

Looks Ahead

Despite reporting on the past, there is a column devoted to next steps. This isn’t a historic document; it invites discussion and engagement.

Action Oriented

The report talks about actions, not roadblocks or plans. Even when progress has stopped, the report tells you what the new plans are. The reader can quickly see how these actions dovetail with the organization’s “Themes”, presumably set by the Board. By tying progress back to the overall mandate of your organization, the reader can assess the urgency and importance of devoting more resources to any stopped or blocked projects.


This report can be read in a couple of seconds. You can skim the headings and status icons to get a quick assessment of progress. By making it scannable, the full report is more likely to be read because it doesn’t look overwhelming.

Simple Language

Avoid jargon. No Three-Letter Acronyms (TLA’s), which are a major communication hurdle for charities and public-sector organizations. It can be read equally well by a new Board member, as by a seasoned veteran.


So, next time you are asked to report on progress of a business, charity, or project, just remember the acronym C.L.A.S.S.! A special thank you to the Ontario Non-profit Network for publishing such a perfect example (http://www.theonn.ca).

If you need to prepare and present a complex status report that needs to be easy to read, get in touch with me at Energized Accounting. I love a challenge!

How To Get the Most From QB Connect

You know what QB Connect going to be like: the massive hall filled with app developers and accounting technology services, the break out sessions on a ton of different subjects, the inspirational key note speeches, and the huge crowd of accounting professionals and small business owners. So how do YOU make it a worthwhile experience? How do you take something away from the QuickBooks Connect conference that will actually make a difference in your business?

Come to QB Connect with Your Own Agenda

Intuit may know accounting and tax, but they don’t know you. They don’t know the specific challenges you face. They don’t know your context. So take some time to answer this question: “If only I could _________________, I could grow my revenues by 50%.” Now maybe you think the answer to this question is actually a laundry list and if so, limit yourself to the top issue. What is the one thing which, if implemented now, would transform your business? Solving that one problem is your agenda.

Someone at QB Connect Has Already Solved Your Challenge

A major hurdle for me was learning to view other people providing accounting services as colleagues rather than competitors. And it was QB Connect that helped me transform my view. I met so many helpful people.  Even the ones who work in the same city as me were happy to tell me what works for them. I began to realize that there’s actually plenty of work for all of us. The reality is that there’s a shortage of good accounting professionals, not a shortage of work. The real challenge is to help business owners understand the value of a well run financial system.

So, as you speak to Intuit staff, software vendors, break out session speakers, as well as the people sitting next to you at lunch, be open about your agenda and ask them how they solve your problem and who else they know who can help you. Find out how they deal with staff turnover, clients poaching the best bookkeepers, breaking into a new niche, deciding which apps to support, or wrestling with tax forms.

When you get home, you’ll have a stack of brochures and business cards and if you’re like me, you won’t remember exactly why you took them. Don’t be afraid to make notes directly on the paper about who the person is and why you should stay in touch with them. That’s also where your social media accounts can help you. When you connect with them on LinkedIn, Facebook, or Twitter, you will stay in touch even if they move, as well as being reminded about what they’re currently up to.

Promise Yourself You’ll Keep this Energy Alive

QB Connect is an exciting event, filled with people who speak your language, who face the same kind of challenges you do. It’s easy to feel inspired there. The challenge is to keep that energy alive as you return to the world of juggling multiple client demands, supporting your staff and finding new business. That’s why you need to focus on that one important idea you can take home and bring to life.

The secret is not to wait until you get home before deciding what to do next. In your hotel room or on your way home, make a list. Start with “To increase revenues by 50%, we need to:” and list the steps. Include who’s responsible for each step and when the step has to be completed. I know you don’t have a lot of spare time for this. None of us does! So you need to keep the individual steps small, but make sure you do something, no matter how small, every day.

Final Tip: Come Back to QB Connect Every Year

Make it a part of your annual planning.  Schedule a staff retreat around it.  If it’s impractical to bring everyone, ask the people who come to make a presentation to the whole group about what they learned and how they can apply it to the business.  That will help them focus, as well as spreading the QB Connect energy!


PS: My agenda for this year’s QB Connect is to meet as many people with nonprofit experience as I can. I’m writing a practical book on nonprofit management and I would like to fill the book with quotes from real people solving actual problems in this niche. This can be a dry subject for many people, so I have created a comic strip to illustrate the book at http://ClariseComic.com

Energized Charity Apps

Software applications (“apps”) are like people:  the more connected, the more powerful!  The hosting of apps on internet servers (“cloud computing”) has opened up a rich world of connected applications that allow your transactions to flow without manual intervention.

  • Invoices are downloaded, coded, and posted into the accounting system,
  • Payments are suggested, submitted for approval (by a person!), and paid without printing a single cheque,
  • Email campaigns are planned, executed, and followed up without having to pull together a list.

Recommended Apps

Many Canadian charities use QuickBooks as their accounting system.  Here is my list of recommended apps, based on experience and knowledge of the software developers:

  • Hubdoc – https://appcenter.intuit.com/hubdoc – is a Toronto based system that fetches invoices from suppliers, lets you scan / email invoice scans, and has its own cell phone app so you can take pictures of invoices and receipts as well.  The advantages to charities are:
    • Replacing filing cabinets with scanned images you can access from within QuickBooks at any time
    • Giving volunteers an easy way to submit expenses (without losing bits of paper)
    • Speeding up audits by connecting directly to the original source documents selected by the CRA or financial auditor
  • Sumac – https://appcenter.intuit.com/app-b7qkiupntt – is a Toronto based fundraising package that will track donors, manage fundraising campaigns, issue receipts, and connect with your web site.  What I particularly like about it is the pricing that gives small charities a break.  It also has a large number of add-on packages to handle additional functions, such as:
    • Grant Management,
    • Course Registration, and
    • Auctions
  • Method:CRM – https://appcenter.intuit.com/method-crm – is a Toronto Customer Relationship Management developer that is much more than a CRM system.  It is actually a development platform that allows end users to create their own system without programing.  It also has a powerful deep synchronization with QuickBooks that allows both systems to update each other in real time.  Method allows you to have the revenue generation of support available from a CRM, as well as the custom system you need for tracking clients / participants, all in one powerful system.
  • Telpay – http://www.telpay.ca/
  • Plooto – https://appcenter.intuit.com/plooto – Telpay (Winnipeg) and Plooto (Toronto) are both payment systems, with Telpay having lots of QuickBooks Desktop experience and Plooto working with the online version.  Both offer the ability to set up and pay vendors (corporate and personal), as well as handling pre-authorized debits from bank accounts.  Because many nonprofit officers are volunteers, being able to approve the payments without having to come in a physically sign the cheque is a major time saver for many charities.

There are many other apps for a variety of purposes, but these are the ones I consider for most new clients.  Please leave a comment about your favourite apps!



Clarise – Status Reports

Whether it’s reporting to the Executive Director, the Board or a funder, status reports are critical.  They show that:

  • You are in control of the situation, despite any setbacks,
  • You are organized,
  • You are accountable for the resources used, and
  • You can be trusted to continue.

Take this example from the Ontario Nonprofit Network’s web site:



The icons tell you the status of the projects, with green meaning go and red meaning stopped.  In addition, while there is a lot of information on the page, it is well organized with lots of white space.

Look Ahead

Even though it is reporting on the past, there is a column devoted to next steps.  This isn’t a historic document.  It invites discussion and engagement.

Action Oriented

The report talks about actions, not roadblocks or plans.  Even when progress has stopped, the report tells you what the new plans are.  The reader can quickly see how these actions dovetail with the organization’s “Themes”, presumably set by the Board.  By tying progress back to the overall mandate of the organization, the reader can assess the urgency and importance of devoting more resources to any stopped or blocked projects.


This report can be read in a couple of seconds.  You can run your eye down the headings and status icons to get a quick progress assessment.  By making it scannable, the full report is more likely to be read.

Simple Language

No jargon.  No TLA’s (Three Letter Acronyms – a major communication hurdle for charities and public sector organizations).  It can be read equally well by the new Board member as by the seasoned veteran.


So the next time you are asked to report on progress, just remember CLASS

  • Colourful
  • Look Ahead
  • Action Oriented
  • Scannable
  • Simple Language.

Special thanks to the Ontario Nonprofit Network for publishing such a perfect example.  http://www.theonn.ca

Clarise – Executive Director

Job Description

Executive Director:  Someone who does whatever is necessary to deliver the organization’s programs, but doesn’t do it all themself.  When I saw an Executive Director cutting up raw vegetables an hour before the organization’s Annual General Meeting, I knew I had to say something.

You attend the official meetings with the Board, the Executive, the sub-committees, task groups and retreats.  You chair the management meetings.  You give tours to visitors and explanations to prospective donors.  You sign the cheques, the expense claims, the contracts, the tax forms, the funders’ reports, and each and every donation receipt.  You handle vacation requests, public complaints, personality conflicts and the questions that nobody else knows how to deal with.  You are sensitive to issues of diversity, pay equity, cross cultural communications, environmental impact, hazardous materials, donor fatigue, and cash flow.  You work early mornings, late nights and weekends.  Occasionally you take time off to be with your family, but even when you are on vacation, you leave instructions about how you can be reached.

This problem is wide spread.  You are not alone.   So take a deep breath and realize that you can’t do it all.  It’s time to step out of the picture and re-strategize.

You need volunteers!

As a professional accountant with a lot of charity experience, I frequently get asked to join charity Boards, always as Treasurer.  Knowing the time commitment involved, I tend to politely decline.  It’s the same story all over:  the people you’d really want tend to be busy already.  Here are some tips for attracting time-poor people.

Your Objectives

  1. Preparation – You have an organization chart with holes in it that need to be filled. Put it in a drawer for a while and instead figure out what specific questions do you need answers to.  What work needs to be done?  Think in terms of projects, not ongoing, multi-year commitments.  Then write it all down.
  2. Bit Sized Pieces – Break the work down into chunks that would take a professional less than a day to do. Think of ways the work could be divided between two people.  Prioritize it so the most urgent and important items are at the top of the list.

Your Volunteers’ Objectives

Obviously, the people who sign on with your organization are people who support the organization’s mission, but let’s go a step or two beyond that and think about how you can make the experience even more attractive.

  1. Intellectual Appeal – Pose your questions as an interesting challenge, like a puzzle, that is worth solving.
  2. Social Appeal – What is missing from your volunteers’ life? Is it time with likeminded professionals?  Is it time doing something with their family?  Is there a way that you can structure the work so that they get what they need as well?
  3. Buddy Up – One organization I worked with insisted that every committee be headed by co-chairs. They found that it reduced the actual and perceived burden on the volunteers as well as reducing the possibility of personality conflicts.
  4. Professional Development – Board experience is useful for any junior professional, but it may take a nudge from a more experienced professional. If someone turns you down for a position, ask them if they would be willing to mentor (i.e. volunteer) someone else in their firm who needs the experience.
  5. Personal Development – A charity is a place to learn something new. After serving as Treasurer for a charity for a couple of years, I was ready for a change.  I volunteered for the Fundraising Committee and received valuable training (for free!) from the Chair.  When his term was over, I took over.  That experience has made me a much more effective charity consultant.
  6. Fun – Meetings don’t have to occur in the Board Room. When I asked a committee chair how she was so successful at finding volunteers, she told me that she held all the meetings at her house, and, in a stage whisper she added, “There’s usually wine involved.”

Finally, after reading this list, if recruiting the people you need isn’t something you see yourself doing, then maybe the one item on your to-do list is to recruit someone who can.  After all, you can’t wear all the hats!

Do you have some recruiting tips to add or some stories to share?  Please add them to the comments below.

Clarise vs. Admin Expenses

The Dreaded Administration Question

Q:  How much does your organization spend on administration?
A:  Actually we spend no money on administration at all.  We run our operations from a park bench and send all of our email using the free Wi-Fi at McDonald’s.

OK, maybe sarcasm isn’t the right approach to answering that question. What about ducking it?

Q:  How much does your organization spend on administration?
A:  Our administration expenses are covered by our investment income, allowing all of our donated funds to be used in our charitable operations.

Many organizations have used that approach, particularly when they have significant endowments (e.g. universities) or cash flow (performing rights organizations), but what do you do when your investments lose money, e.g. 2008?

An accountant will tell you that allocating a set of expenses to investment income is arbitrary, unless there has been a specific donor designation to do so.  It is a risky way to go.

How about reality?

Q:  How much does your organization spend on administration?
A:  Spending money on administration is something we watch vigilantly.  We constantly look for ways of saving money because every dollar spent on administration is a dollar taken from programs.  Currently, our administration and governance costs are $X, which represents Y% of the total budget.

In a word:  boring.  This won’t stand up to the social media rumors about how much the Executive Director makes or the lavish board lunches.  It’s the same message the stakeholders have heard for years.


So, what should a charity do?  Here is some radical advice from an accountant:  get ahead of the issue and tackle it head on with a series of cost-saving initiatives.  At the annual meeting every year, give your Treasurer their moment in the sun as they announce the results of last year’s initiative, as well as the new initiative for next year.

What I mean by cost-saving initiatives:

  • Vendor pricing – consolidate our purchasing power and renegotiate contracts, e.g. we achieved a 10% cost reduction by accumulating all of the orders from our locations across the country into one contract.
  • Manual processes – the search for redundant or time consuming processes, e.g. we increased the number of cases each caseworker can see in a day by replacing the paperwork with a confidential dictation service.
  • Human resources – making sure that the pay levels are appropriate for the work being done, e.g. every five years we check the work being performed against local industry averages to be sure that our salaries and wages are appropriate for the work performed. This review ensures that staff are being fairly compensated and that they know it, so that we maintain a stable team with no unnecessary turnover.
  • Automation – ensuring that the organization is leveraging staff time (typically the biggest expense) by the smart use of technology, e.g. we looked at the number of hours our senior staff was spending creating manual spreadsheets for individual grant reporting and recommend a project system, setting up each grant as a separate project.
  • Strategic alliances – team up with other organizations to combine purchasing power and reduce administration, e.g. sharing space and staff in a warehouse instead of maintaining separate facilities.
Q:  How much does your organization spend on administration?
A:  You should see Bob’s report.  Our Treasurer is a bulldog where saving money is concerned.



How do you get there?

Start with the Canada Revenue Agency definition (http://www.cra-arc.gc.ca/E/pub/tg/t4033/t4033-e.html#sch6 ):

  • Holding meetings of the board of directors;
  • Accounting, auditing, personnel, and other administrative services;
  • Buying supplies and equipment, and paying occupancy costs for administrative offices;
  • Applying for grants or other types of government funding; and
  • Applying for gifts from other qualified donees (usually foundations).

Make sure your financial reports highlight the spending in these areas to the people who are in control of these costs.  If the costs are all split up and allocated to different cost centres or departments, it will be difficult to get anyone to take responsibility for them.

Working with the management team, start to plot out several cost-saving strategies and decide which one to focus on each year for the next few years.  You want to be sure that you will have something positive to report.  Sometimes there are obvious ways to save money, but if the organization is reasonably efficient, many initiatives will take more than one year to show results.  The management teams needs to understand how serious this issue is to funders, particularly individual donors, so make it one person’s responsibility and be sure that there are regular progress reports.

Please join the conversation by leaving a comment below on what has worked (or not worked!) for your organization when launching or reporting on cost-saving initiatives.  Thanks!

Clarise’s First Day

Culture Shock

Picture a charity boardroom, at night.  Around the table sits a group of tired looking volunteers.  It has been a long evening sorting through the charity’s management issues.  Promised funding has not come through, so the financial situation is tense.  The issue before them is whether they should hire an Executive Director.  You see, the charity has no employees.  They hire contractors to work with the clients, but all the management positions are staffed with volunteers.  And they are burning out.  The Board members discuss what the Executive Director’s duties will be.  All of a sudden, the room is alive with ideas, as the volunteer Board members sing out their most frustrating tasks.  The loan holdout, the Treasurer (me), gives in and reluctantly votes for the motion.  It carries unanimously.

Many of the managers and Executive Directors I have met in my work with charities have been thrust into their position.  They signed up because of a deeply felt desire to help people, not to complete endless government reporting forms, interpret financial statements, stickhandle interpersonal conflicts, approve invoices, attend long meetings or budget for the future.  But that’s what management is.  The good thing about working in the nonprofit sector is that you don’t have to let go of all of the grass roots activities.  Most managers roll up their proverbial sleeves and work directly with clients and volunteers.  Not only does it help keep them grounded in the charity’s mission, but it’s also a necessity:  charities are perennially understaffed.

What was your first day like?

If you are in management, how do you stay grounded?


PS:  If you’re wondering about the story above, it has a happy ending.  The charity went on to hire an Executive Director and she did a truly wonderful job of turning around the financial situation and increasing the number of people served.  It was the best outcome for the charity and I am so glad they convinced me to support it.

Clarise – A Charity Management Comic Strip

Welcome to Clarise, a comic strip that explores serious issues about charity management in a non-serious way.  A recent social work graduate, Clarise took a position as the new Executive Director (and only employee) of the Dogoode Foundation.  Follow her adventures as she learns how to navigate the sea of charity management and please share your own experiences (without naming names, of course) so we can all learn together.

Social Innovation – An Accountant’s Perspective

Social Innovation is about changing systems at their root, about looking at how things are done and making them better, not just for customers, but for everyone. Yet even the most socially conscious system needs financial accountability. My goal is to build accounting software and procedures into Social Innovation projects in their infancy, when they most need the support.

Innovators don’t often have experience with administration or accountability.  They have to focus on the development, engineering and deployment of their innovation.  Who has time to do paperwork?  Yet, it’s the paperwork, tracking test results, managing projects, filing government forms, reporting to funders and securing financing that keep the project going.

You don’t have to go far to see problems that need innovation.  In my city, Toronto, there is a housing crisis and crumbling infrastructure.   There isn’t enough public transit.  There is both a lack of skilled workers and unacceptably high unemployment.  There is all kinds of room to implement bright ideas, in engineering, planning and legislation, to name a few.

As an accountant, it’s exciting to get involved with something new, to face the challenges of imposing financial discipline, without killing the innovation, to develop new processes that help both the innovator and the investor.  I’m a bean counter and sometimes I have to redefine the beans as well as count them.  That’s why I call what I do, “Energized Accounting.”

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HST & Donations – 2016 Budget Changes

GST/HST on Donations to Charities

The GST/HST does not apply to a donation if the donor does not receive anything in return. However, if the donor receives property or services in exchange for the donation, even if the value of the donation exceeds the value of the offered property or services, the GST/HST generally applies on the full value of the donation. (A number of exceptions to this treatment apply, including where the service or property offered by the charity relates to a special fundraising event, such as a gala dinner, annual cookie sale or charity auction, or where the charity provides the donor goods that were previously gifted to the charity. Such supplies are exempt from GST/HST. In addition, a charity that qualifies as a “small supplier” (e.g., makes under $50,000 of taxable sales annually) is not required to collect GST/HST.)

Special rules are provided under the Income Tax Act to deal with transactions where property or services are supplied in exchange for or in recognition of a donation to a charity. Under the Income Tax Act “split-receipting” rules, where a charity encourages or recognizes a donation by supplying property or services in exchange, the charity generally may issue a donation receipt for the amount paid by the donor less the value of any property or service that the donor receives. Consequently, such donations are treated less favourably under the GST/HST than under the Income Tax Act.

To bring the GST/HST treatment of this type of exchange into line with the treatment under the Income Tax Act split-receipting rules, Budget 2016 proposes a relieving change to provide that when a charity supplies property or services in exchange for a donation and when an income tax receipt may be issued for a portion of the donation, only the value of the property or services supplied will be subject to GST/HST. The proposal will apply to supplies that are not already exempt from GST/HST. It will ensure that the portion of the donation that exceeds the value of the property or services supplied is not subject to the GST/HST.

This measure will apply to supplies made after Budget Day.

In addition, where a charity did not collect GST/HST on the full value of donations made in exchange for an inducement, for supplies made between December 21, 2002 (when the income tax split-receipting rules came into effect) and Budget Day, the following transitional relief will be provided:

  • If GST/HST was charged on only the value of the inducement, consistent with the income tax split-receipting rules, or if the value of the inducement was less than $500, the donors’ and charities’ GST/HST obligations will effectively be satisfied, resulting in no further GST/HST owing.
  • In other cases, the charity will be required to remit GST/HST on the value of the inducement only (i.e., the relieving split-receipting rules will apply).

Source:  Government Budget Document



The Minister of Finance tabled the Government’s 2016 Federal Budget on March 22, 2016. There are few tax measures in Budget 2016 that impact registered charities, which are highlighted below, and none for non-profit organizations (NPOs).

Registered Charities

  • Investments by Registered Charities in Limited Partnerships: Budget 2016 confirms the Government’s intention to proceed with the measure announced in Budget 2015 which allows registered charities to acquire or hold passive investments in limited partnerships.
  • Donations Involving Private Company Shares or Real Estate: Budget 2016 announces the Government’s intention not to proceed with the measure announced in Budget 2015 that would provide an exemption from capital gains tax for certain dispositions of private company shares or real estate where cash proceeds from the disposition are donated to a registered charity within 30 days.  The removal of this capital gains exemption will come as a disappointment for some in the charitable sector.
  • GST/HST on Donations to Charities: In addition to the exemptions available for many goods and services provided by charities, Budget 2016 proposes a relieving change to provide that when a charity supplies property or services in exchange for a donation and when an income tax receipt may be issued for a portion of the donation, only the value of the property or services supplied will be subject to GST/HST. The proposal will ensure that the portion of the donation that exceeds the value of the property or services supplied is not subject to GST/HST. It also brings the GST/HST treatment of this type of exchange into line with the split-receipting rules under the Income Tax Act.
  • Political Activities: Budget 2016 also confirms the Government’s commitment to review and clarify the rules governing political activities of charities. The Canada Revenue Agency, in consultation with the Department of Finance, will engage with charities through discussions with stakeholder groups and an online consultation.

Source:  BLG Commentary

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