Non profit financial management

Before starting the graduate program at Full Sail University, I was pretty clueless about how a business ran financially (besides basic financial management and economics). I was even more oblivious to how non profit organizations kept afloat being that they are a not for profit business.  Soon into the program, a spark ignited in me and I realized I wanted to create a non profit. I quickly learned that in order to operate a successful NPO, I would have to be fiscally responsible (even more so than a for profit business). So, I am going to share what I have grasped about financial management in NPO’s.

To begin, I would find a fiscal sponsor. A fiscal sponsor would be beneficial to me because I am unsure how long the non profit will exist. A sponsor would also benefit my NPO because it is a small organization, which means that I would not have to undertake the bookkeeping, administrative, and evaluation requirements. I like this idea especially because the sponsor maintains fiscal control while I maintain most of the program control.

Second, I would hire a board treasurer. The accounting expertise I would get from a treasurer is pivotal since I do not have strong skills in this area myself. I would have the treasurer manage the finances of the non profit, set up a bookkeeping system, provide a budget, generate financial statements, and develop financial policies and procedures.

Third, I would ask for advice and get references from other non profits (of similar size and nature) about which bank to conduct business with. At the start of my non profit, I will not have that much money to deal with, but it is important to start a checking account and establish a credit card account. Choosing a good banker is of utmost importance because it will help me get financing and provide me with business operation advice. Another way to choose a banker is by contacting the Small Business Administration. This will tell me which banks in my area have the best small business lending records.

Of course I will have to know more than the former three items listed, but my graduate study has given me perspective on the basic processes involved in financial management. From here, learning about accounting systems, financial forecasting, and financial statements will be easier.

McNamara, Carter. Free Management Library. Authenticity Consulting, LLC. 2010.  

Investigate the company you wish to work for

The organization I long to work for is the VH1 Save The Music Foundation. In order to make this dream a reality, I need to do more than just conduct a simple background search of the organization. So, I researched the company in a more in-depth way to gain insight into my future career (hopefully!)

First, I looked at the organizations financial statements, more specifically, the Foundation’s contributed revenues and expenses. What I really wanted to know was how the non profit organization was handling in the deepening global economic crisis. As expected, revenue totals were much higher in 2007 than they were in 2008. I’m talking over a two million dollar difference! To make up for the lack of contributed revenue in 2008, VH1 Save The Music greatly reduced its expenses by an astonishing one million dollars. This means that salaries were reduced, less money was spent on restoring music programs in schools, creation of public service announcements and advocacy tools were lessened, and fewer special events were planned. Having to make all of these cuts really demonstrates the Foundation’s commitment. I hope that through all of the reductions, there is still a place for me within the company.

Since VH1 Save The Music has ongoing support from dedicated individuals, organizations, corporate partners, non profit partners, artists, and foundations, I chose to research who has graciously donated to the cause. This information will be useful because it will provide me with details about what kind of individuals and businesses have supported the work of the VH1 Save The Music Foundation. It was amazing to find such an array of businesses that have donated to the Foundation. For example, LG Mobile Phones donated over $200,000, Paramount Pictures donated over $50,000, and Bacardi USA, Cheeseburger In Paradise, Tommy Hilfiger USA Inc, and Listerine, donated over $25,000. This brought light to many businesses that I had no clue were so involved in supporting music education in public schools. There were quite obviously a lot of musicians that have donated because of their love of music and the arts, such as 3 Doors Down, Jason Mraz, and Ben Folds.

As I continue on the road to employment at VH1 Save The Music, I will keep persistent on researching exciting areas of the Foundation. Doing so will help me clarify my career goal, expand my professional network, and gain access to the most up to date information regarding the organization I plan to work for some day.

Data retrieved from vh1savethemusic.com, VH1 Save The Music's Facebook page, and VH1 Save The Music's Twitter page. 

Looking to other organizations can greatly benefit your own

VH1 Save The Music is a professional, non profit organization that directly relates to my specific industry of non profit management focused on the arts. If I were to start a business, it would be a non profit organization called Madison Music Company. VH1 Save The Music heavily influences my company and has many programs that I would apply to my own company.

The first item that influences my company is VH1 Save The Music’s implementation of advocacy materials and guides that serve as the next steps to building a sequential program. In addition to the actual program, I will have printed resources that can be easily distributed to all principals and music teachers. I will provide the best practices in building and sustaining a successful music program. I would have a company sponsor the program guides in order to align their brand with a pro social cause while also putting their product in the hands of parents, educators, and decision makers.

Second, VH1 Save The Music provides informational brochures containing up-to-date information about the company. I like this idea because a brochure will drive traffic to the Madison Music Company website. I will distribute the brochures at all MMC events, music education conferences, and the brochure will be included in MMC mailings.

Third, VH1 Save The Music provides advocacy toolkits on their website. This kit serves as a resource to gain support for music education within the community. I will provide an online resource that outlines the different methods for success in running a sequential music program. It will include articles written by field experts and leaders discussing topics like school budgets, class scheduling, and student recruitment.

Fourth, the VH1 Save The Music website produced a timeline of music education from the 1970’s to today. This offers a great visual representation of what the national standards for music education are and the increasing value of the arts as a core subject. I would really like to make something similar because a visual speaks louder than words. A timeline will bring forth more awareness, change misperceptions, and educate community, school administrators, and classroom teachers that The No Child Left Behind Act includes Music and The Arts as core subjects. It would also show the local community what their schools are like now, which may empower more people to speak out on the importance of music education for their children.

Lastly, VH1 Save The Music does a great job posting all of their activities on their website, as well as on Facebook and Twitter. I want to promote my company as much as possible, so I will use these social media resources as well. I will invite friends and family to join in on being proactive on behalf of music education. Promoting Madison Music Company through social media outlets allows people to follow the program closely. I will be sure to detail the company’s progress and effects on the Madison community. 

www.vh1savethemusic.com

Get your head straight with this inspirational video

             Searching through TED.com, I found an inspiring and uplifting video from Gary Vaynerchuk. Gary is a bestselling author and owner of Wine Library TV, a daily video blog about wine with a $60 million dollar revenue. He did not always do what he loved, but he overcame adversity and now admits to being happier than ever before. Immediately after reading the title of the video, “Do what you love - no excuses,” I was engrossed and had to see it. Gary’s hyperkinetic style made it even more enjoyable to watch, not only because it was a topic I was fascinated with, but because I could sense his desire to really help people. I thought his energy level was compelling and I loved his emotion and follow through. You cannot watch the video without asking yourself, do I really do what I love? I cannot help but listen to his motivational speech again because it gets me fired up and excited for my future.

            Gary really stressed the words patience and passion. There are just too many people out there doing stuff they hate doing. So I asked myself this question, what do you want to do every day for the rest of your life? That question made me realize that we only have one life and one chance to live the life we dreamed of, so you have to ignite your passions to truly be happy. He made me believe that I can face my self-doubt, which I know everyone has at least a little bit of. Gary also made me believe that there is no excuse not to do what I love and really get at what makes me tick. If only more people were driven by passion in order to truly come alive.

Along with passion, you must also be patient. If you are patient enough and the right moment strikes, you position yourself for success. Too many people give up too quickly when they should keep hustling. People need to get out there and network with people any way they can. But, it takes more than just your words. It is the non-verbal portion like eye contact, physical gestures, facial expressions, body language, passion, and patience that sets you apart from others. So then you ask, well what tools should I use? The answer is all of them! If you continue to approach life with energy, people will feed off of your energy and will be more giving and receptive to your ideas. And when you do find or see your dream opportunity, jump on it.

             I do not know about the rest of you, but I want my children and my grandchildren to be proud of me. As Gary says, “Legacy is greater than currency. You can lose just as much money being happy as hell.” I try to forget the issue of not having enough money to fulfill my goals and really believe in what I am doing. It is not easy, but not doing what you love is a slow death. I hope this video has inspired others to get creative and get out of their comfort zones. I will leave you with one of my favorite quotes from author of “The Brand Gap," by Marty Neumeir. “How do you know when an idea is innovative? When it scares the hell out of everybody.”

Please visit this link to watch the video: http://www.ted.com/talks/gary_vaynerchuk_do_what_you_love_no_excuses.html

Gary Vaynerchuk – Do what you love (no excuses!) Retrieved from

http://www.ted.com/talks/gary_vaynerchuk_do_what_you_love_no_excuses.html

Gary Vaynerchuk - Bio

http://www.ted.com/speakers/gary_vaynerchuk.html

Project managers are everywhere in the entertainment industry

*For the purpose of this blog, I have changed the individual’s names.

Managing projects requires a lot of time, resources, and commitment (Snead, 2010). I decided to gain more knowledge and experience on project management from real-world employees for the industry I strive to work for, VH1 Save The Music. Ms. Sylvester and Mr. Whitman agree that being a project manager is a huge undertaking, but they have been successful project managers for many projects and events within the entertainment industry. Ms. Sylvester is an intern on the development team for VH1 Save The Music Foundation, and Mr. Whitman is a program manager on the program team for the same foundation.

While VH1 Save The Music has the common touch point of music, the staff falls into two basic groups with two distinct skill sets and backgrounds. Mr. Whitman is the program manager at VH1 Save The Music, where he is the project leader working with schools around the country. Mr. Whitman advocates for music education and implements the grants that are provided.  The team is all former music educators and musicians and therefore, their expertise is music education (*Whitman, 2010).

The development team raises money and hosts events for the foundation. Their skills and backgrounds focus around event management and fundraising. Ms. Sylvester has managed projects and events for the VH1 Save The Music Foundation. She is part of the development team helping with branding, fundraising, and communication. She brainstorms initiatives and develops marketing plans for new media such as MyDunkTank.com, Twibbon, and FourSquare. Ms. Sylvester assisted in developing marketing plans to increase involvement in membership groups, secured donation items for various giveaways and promotions, and assisted the development team with logistics and promotion for the Rock and Bowl with the Plain White T’s (*Sylvester, 2010).

Obviously, a lot of planning is involved in coordinating with schools, implementing grants, raising money, and hosting events for the foundation. Some events are in the works for months on end before finalization. The foundation often joins forces with other entertainment industry professionals, which adds a lot of support in the planning stages. Timing and the location are of great importance in planning an event because the staff at VH1 Save The Music want to make every fundraising effort special. They do not want there to be a planned event every month because the impact would become watered down.

A strict budget is placed when VH1 Save The Music awards schools with grants. The foundation sets guidelines for each school to follow. The budget includes salary for at least one music teacher, a music instruction curriculum, weekly in-school music classes, sufficient space for instruction, instruments, and equipment, donated musical instruments, and maintenance of the donated instruments (vh1savethemusic.com).  I would say with the budget VH1 Save The Music provides, a new music program can begin and be built upon to grow successfully!

References:

Snead, Cathy. Professional Blog Assignment 2. September, 27, 2010.

Sylvester, Sue. Personal communication. October 14, 2010.

“VH1 Save The Music. Music Education = Brainpower.” 2010. October 16, 2010. http://www.vh1savethemusic.com/

Whitman, Wally. Personal communication. October 16, 2010.

Are teams important in the entertainment industry?

Teams are no longer optional in today’s workforce; they are a necessity. Assembling a team is a crucial step in building a career, especially in the entertainment industry because artist-manager relationships are vital. As we move into the “digital age,” teams are even more important than before because the music industry is launching more music technology, and it takes more hard work and dedication to stay ahead and profitable. So how do you stay ahead in this industry? On a broader spectrum, teams from every music company must unite to form entertainment conglomerates. Has consolidating worked in the past? Yes. Independent labels such as rap and alternative rock were added to the major-label fold. This proved to be a wise move for the music groups. Branching out and seeking help from other teams in the industry can lead to a lot more success.

Respected philanthropist Andrew Carnegie said, “No man will make a great leader who wants to do it all himself, or get all the credit for doing it” (Nasaw, 2006). It is nearly impossible to be a talent agent, personal manager, or business manager on your own. Although doing it alone may give you a quick start and seem to save you money, it is not a good idea in the long run.

Effective team leaders must have a clear vision of what they want to accomplish because that vision becomes the energy behind every effort. It is important to develop a team of people who share the same dreams and passions as you. Essentially, dreams are realized and carried out through unity.

In putting a team together, you should obtain team members according to how well their particular skills match a given element of work. Choose a team based on their skills and experience, not their accessibility. Since the entertainment industry is one of the most competitive industries out there, it is pivotal to have a team with the skills to thrive in a challenging and nontraditional work environment. It is also of utmost importance to choose those that get along with a wide variety of people.

Of course, people do not follow a vision in itself. They follow the leader who has a vision and the ability to communicate that vision effectively. Communication is a vital tool in every organization, and in the entertainment industry, e-communicating is spreading like wildfire. But, e-communicating does make it more difficult to monitor exactly what your team is doing, so you must oversee your team’s work more frequently. The team leader must keep the lines of communication open with his team. This means having more meetings in person, making more phone calls to check in, and participating in conference calls on a weekly basis. Teams should actually over-communicate. Over-communicating is very valuable because it provides relevant information and details such as expectations and accountability. Trust and respect within your team can easily be broken if communication does not happen. It all boils down to this: there success is your success, so do your best to communicate with your team (Hollingsworth, 2009).

Nasaw, David, Andrew Carnegie (New York: The Penguin Press, 2006), pp. 54–65.

Hollingsworth, C. (2009, April). Five ways to make or break your team. PM Network, 23 (4), 52‐57. Retrieved from http://www.pmnetwork‐digital.com/pmnetwork/ 200904/?sub_id=puGXsH65qK2Q