About Michelle Davidson

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So far Michelle Davidson has created 23 blog entries.

Future-proofing your NPO

Many NPOs are so lean that the loss of one staff member can cause major disruption. Future-proofing means putting structures in place so that institutional knowledge, skills, and relationships don’t sit with only one person.

Focus on these three key strategies to ensure that if you lose that one person, you don’t lose all your organisational knowledge at the same time.

1. Knowledge Management:  Start a documentation culture. Ensure all processes, contacts, and workflows are written down and stored in a shared system (Google Drive, Notion, SharePoint, etc.). Each staff member should maintain a “living” handover document outlining key tasks, deadlines, passwords (stored securely), and partner relationships. Avoid having “one-person files”—make sure multiple people can access critical documents.

2. Cross-Training & Skill Sharing:  Encourage staff to learn each other’s roles, even if at a basic level. Let staff rotate responsibilities occasionally (e.g., who takes minutes, who handles reporting). Identify backups for each critical function.

3. Leadership & Succession Planning:  Identify potential leaders, those who can step up if needed. For senior roles, outline a clear succession plan approved by the board. Get your board involved, and make sure board members understand operational essentials and can provide short-term cover if required.

Putting together these three key strategies will take some time. If you need a hand or some fresh perspective, our experienced EM Solutions team is on stand-by to assist. Future-proofing is essential in times like these.

8 October 2025

By |2025-12-17T13:03:57+02:00October 8th, 2025|Financial Management, Leadership|0 Comments

What’s Your Backup Plan?

We’re talking about resilience in October. In my last blog, I mentioned that our family has a grab-and-go folder with all our important info in it. However, does your NPO have a grab-and-go folder for its important data in case a disaster hits?

Data loss from a fire (or any disaster) can be catastrophic, especially for a nonprofit organisation that may rely heavily on irreplaceable donor, grant, program, and financial records.

Here’s a comprehensive list of best practice measures you should have in place to protect your data in the event of a disaster like a fire:

  1. Store all essential data in the cloud with a reputable provider (Google Workspace, Microsoft 365, Dropbox Business or Box). If you set up automatic syncing and version history, you’ll keep older copies safe. This keeps your data off-site and safe, even if your office and computer are destroyed.
  2. Follow the 3-2-1 backup rule – 3 copies of your data, 2 different formats (cloud + external hard drive), 1 copy off-site (in the cloud or outside your office)
  3. Create a disaster recovery plan – how you will recover data, staff roles in disaster response, a communication plan with your stakeholders, contact info for IT support, vendors, insurance, etc.
  4. Keep an updated list of all hardware (computers, servers, drives), software and digital platforms, what data is stored where and who owns it
  5. Be cybersecurity aware – use multi-factor authentication (everywhere), password managers and strong passwords. Update your software regularly and make sure your anti-virus is up to date.
  6. Train your staff about phishing and data awareness, and make sure people can only access what they need. If someone leaves, revoke their access immediately.
  7. Check your insurance covers data recovery charges.

Last, but not least, run a disaster simulation to see just how prepared you really are should things go wrong.

If you need a hand, reach out. Our EM Solutions team can help you run an audit and make sure that your organisation is data-safe at all times.

7 October 2025

By |2025-12-17T13:04:48+02:00October 7th, 2025|Financial Management|0 Comments

Leadership in NPO Retrenchments: Balancing Compassion and Clarity

Few challenges test leadership in non-profit organisations as deeply as retrenchments. Unlike the corporate world, where financial logic often dominates, NPOs must weigh financial survival against their mission and the human impact on dedicated staff. In these moments, leadership is revealed not just in decisions made, but in how they are carried out.

Strong leadership during retrenchment begins with transparency. Teams need to understand why retrenchment is necessary and how decisions are being made. Leaders who communicate openly, explain the financial and strategic realities, and invite questions demonstrate integrity and respect. Avoiding or delaying these conversations erodes trust and fuels rumours.

Equally important is empathy. Staff in NPOs often view their work as more than a job; it is a calling. Leaders who acknowledge this emotional weight—listening, showing compassion, and offering support—help preserve dignity even in loss. A weakness here is detachment: treating retrenchment as purely transactional can damage morale and tarnish the organisation’s culture long after the process ends.

Decisiveness is another essential strength. Prolonged uncertainty undermines stability. Leaders must act with clarity and timeliness, while also ensuring decisions are fair and consistent with the organisation’s values. Weakness emerges when leaders waver, shift explanations, or appear to protect some at the expense of others.

Ultimately, retrenchment in an NPO is a test of values. Leaders who balance compassion with clarity, honesty with hope, and decisiveness with fairness can maintain trust and keep the organisation steady—even while navigating painful change.

Is your NPO facing possible retrenchments? EM Solutions offers strategic insight and independent external mentors with years of experience in NPO management, finance and HR, ready to help you navigate change with confidence and decisiveness. You don’t have to do the hard work alone.

29 September 2025

By |2025-12-17T13:06:06+02:00September 29th, 2025|Financial Management, Leadership|0 Comments

The Hard Role of Leadership in NPOs

Leadership in non-profit organisations (NPOs) is not for the faint-hearted. Unlike businesses that can pivot strategies based on profit margins, NPOs are deeply tied to their missions, communities, and often, to “the way things have always been done.” When it comes to staffing, program delivery, and navigating long-standing traditions, leaders face a complex and often emotionally charged balancing act.

In times of change, the best NPO leaders share several characteristics:

• Vision – the ability to see beyond immediate pressures and articulate a clear direction.
• Resilience – staying steady and hopeful in the face of setbacks.
• Adaptability – responding quickly to new realities without losing sight of the mission.
• Empathy – understanding the human impact of difficult decisions.
• Integrity – ensuring that every choice is rooted in the organisation’s values.

For many NPOs, staffing challenges are ongoing. Resources are limited, workloads are high, and salaries are often less competitive than in the private sector. Leaders must motivate and retain staff while also pushing for accountability and innovation. This requires transparency, empathy, and a willingness to listen. The best leaders recognize that people are their most valuable resource. They invest in professional development, encourage initiative, and create environments where staff feel valued—even when budgets are tight.

Programs are the heart of an NPO’s impact, but they can’t remain static in a changing world. Communities’ needs evolve, funding priorities shift, and external crises—such as pandemics, wars, or climate events—demand adaptation. Strong leaders know when to protect core programs and when to reimagine or sunset initiatives that no longer serve their mission. This requires courage, clear communication, and the ability to align program changes with both community needs and donor expectations.

Perhaps the hardest challenge is managing “the way things have always been.” NPOs often carry deep legacies, and traditions can become sacred. While history and culture must be honoured, clinging too tightly to outdated practices can limit growth and relevance. Effective leaders respect the past but do not allow it to dictate the future. They frame change as an evolution rather than a rupture, and they bring people along by building trust and inviting participation in shaping what comes next.

Leading in an NPO is often described as steering a ship through rough seas with limited fuel. Yet it is precisely in these difficult moments that strong, thoughtful leadership ensures not only survival but also the possibility of renewed relevance and impact.

In times like these, it’s helpful to have experienced colleagues who can navigate the journey with you. That’s where EM Solutions can assist – our team of experienced NPO practitioners are standing by to provide a sounding board, offer financial acumen and practical solutions. You don’t have to do the hard work alone.

21 September 2025

By |2025-12-17T13:08:32+02:00September 21st, 2025|Financial Management, Leadership|0 Comments

The Power of Decisive Leadership

Non-profit organisations often operate in a landscape of uncertainty—funding shifts, evolving community needs, and external crises can unsettle even the most stable teams. In these moments, leadership is tested not just by what decisions are made, but by how they are made. One of the strongest ways to build trust within a team is through decisiveness.

Decisiveness does not mean rushing into action without consultation or reflection. Rather, it is about gathering the best available information, listening to diverse perspectives, and then moving forward with clarity and confidence. In times of uncertainty, teams can become anxious or demoralised if leaders hesitate too long, revisit the same issues repeatedly, or avoid making hard calls. Decisive leaders provide direction, which in turn creates stability.

For NPOs, this is particularly critical. Staff and volunteers are deeply committed to mission-driven work, but when programmes are at risk, funding is uncertain, or roles are shifting, their sense of security can waver. A decisive leader reassures the team that—even if the path ahead is difficult—there is a plan and a steady hand guiding the organisation.

Being decisive also models accountability. When leaders are clear about why a choice has been made, they demonstrate transparency and integrity. This builds trust because staff understand that decisions are rooted in values and evidence, not personal preference or avoidance.

Finally, decisiveness invites momentum. A team that sees progress, even through incremental steps, regains confidence and energy. While not every decision will be perfect, consistent and decisive action communicates respect for people’s time, effort, and commitment.

Trust is one of an NPO’s greatest assets. By leading decisively, leaders cultivate that trust—anchoring their teams and enabling them to face change together with resilience and purpose.

Would you like to be mentored in your leadership?  EM Solutions offers coaching and mentoring to help you lead with confidence and decisiveness. Our team of experienced NPO practitioners are standing by to provide a sounding board, offer financial acumen and practical solutions. You don’t have to do the hard work alone.

11 September 2025

By |2025-12-17T13:10:10+02:00September 11th, 2025|Financial Management, Leadership|0 Comments

Money that works while you do other things

We’d all like our money to work for us while we do other things. In finance terms, this is known as “passive income”.

We chatted with some of our EM Solutions team to ask how NPOs can create passive income streams. Here are their top tips:

Cascade your investment bank accounts

This is all about moving your money around to make the most of bank interest rates. This is how you do it:

  1. Put this week’s payments in the current account,
  2. Hold 3 months’ expenditure in a Call Account, and transfer to your Current Account before doing payment batches
  3. Hold 6-12 months in a 60-day notice account, top up the Call Account every 2 months
  4. Put the rest of your funds in a longer-term, high-interest account. If you don’t have that much, start by filling up the 3-month bucket first, then put extra into the 6-12month account. As your money grows, the overflow goes down the cascade

Managing separate accounts without losing money

If donors want separate accounts, use current accounts, but put most of the money in the call account (and cascade with the other funds). Remember, more money together gives a higher interest rate. Draw down into the donor’s current account as needed. Keep a spreadsheet to track how much has been drawn down of the disbursement.

Money erodes – beat inflation by creating capital growth

Bank interest won’t hedge inflation. You need unit trusts and share portfolios to generate dividends and capital growth to avoid the erosion of value in your money. One of the best ways to create capital growth is to invest in shares. Speak to your banker and ask them to recommend an investment policy to determine what investments you can invest in and how to choose the correct risk profile for your organisation.

To summarise, it’s important to get your money to work FOR you, and not just sit unused in accounts. Interest will decrease your money unless you create opportunities for your capital to grow that exceed the inflation rate.

Chat to one of our consultants if you would like to learn more about passive income. We’re waiting for your call so that we can help you unlock potential.

1 September 2025

By |2025-12-17T13:11:36+02:00September 1st, 2025|Financial Management|0 Comments

Asset-Based Income for NPOs

Many NPOs advocate asset-based community development for the communities in which they work, but sometimes don’t realise that they themselves can use their own assets to create income streams for the organisation.

We asked EM Solutions director Michelle Davidson to suggest some practical income-generating ideas for NPOs who are struggling in this difficult South African climate. This is her response.

Take a look at what you have: buildings, vehicles, desks, equipment, property, rentals. Can you sublet extra space? What about setting up desks to create a co-working space with another NPO? Are your vehicles sitting unused on weekends? If so, why not rent them out to a tour company? Can you offer printing services to the community at a realistic cost per page? Can you rent out pots or a venue for a function?

Think about charging yourself for use of assets like vehicles, printers, and phone calls. Assign a mileage charge for vehicle usage based on logbooks.  Remember to set a rate that actually covers the costs and includes a little profit. Put this income into a savings fund for vehicle/asset replacement.

For bigger assets like property, charge your NPO rent (which is often covered by donors when property costs are not covered). Keep the admin for handling rentals to other tenants separate. Make sure that all profit from this rental business is donated to the S18A organisation, which will reduce the tax you pay on property.

Can you set up a business arm for your NPO? Do you have something to sell that your beneficiaries produce? This little business may need some up-front investment to get it going, but the good news is that there are no tax implications if the business is integral to the objective in your founding document. If the business is not integral to the objective, there may be partial tax considerations, but it is still worth pursuing as a source of income.

Do make sure that you have someone on board with a business background who can make the business profitable for you.

With some great suggestions to think about, do get in touch with EM Solutions if you’d like to have a sounding board for your ideas and strategy. We’re passionate about unlocking NPO potential.

25 August 2025
By |2025-12-17T13:12:46+02:00August 25th, 2025|Financial Management|0 Comments

Leveraging Intellectual Assets

NPOs generate a huge amount of intellectual property – research, learning, training material, ways of working and more. How do you turn your intellectual property into an asset that brings in much-needed income to support your projects and programmes?

Here are some suggestions:

1. Can you offer the same service that you give your beneficiaries to paying clients? For example, perhaps you offer free healthcare screenings. Why not approach a local business and offer to provide paid healthcare screenings for their staff? In this way, the business benefits by having healthier staff, and your NPO has a new income stream.
2. Package your intellectual property (training, research, ways of working) into products/offerings for a new market, delivered by your team. This is a great way to share what you have learnt and increase your reach while creating income.  Just a caution: if it takes off, be careful that your team isn’t spending more time on the new products and services than they are on beneficiary programmes.
3. License what you do to other organisations (good for geographic growth), individuals, or companies for a licensing fee. This will bring in passive income from intellectual property once the ‘franchise’ model is set up with legal paperwork and manuals

To make these suggestions work, you will need a dedicated champion who will look for clients and do the sales, so that your income-generating projects launch properly and are well maintained.

18 August 2025

By |2025-12-17T13:13:56+02:00August 18th, 2025|Financial Management|0 Comments

Let’s Talk About Core Funding

In Michelle’s recent blog, she spoke about key sources of unrestricted income and the ultimate ‘unicorn’ donation – unallocated funding. Unallocated funding is not pinned to any one programme or expense. Unallocated funding can be used wherever the NPO wishes, including covering general operating expenses, salaries, once-off expenses or ongoing commitments.

Every NPO dreams of unallocated funding.

I’m guessing you are already thinking of your list… so how would you choose to use a marvellous gift of unallocated funding?

Let’s be real, all NPOs always have “holes” which swallow any extra funding swiftly. Unexpected programme costs, a leaking roof, staff meals, the list is endless. That’s why it’s important to respond, not react.

The next time your organisation receives unallocated funding, put it into an investment account while you decide where and how you want to use it.

Get your team together and ask:

1. Can we invest this gift in strategic initiatives that set us up for future and/or more unrestricted income?
2. Have we thought about buying a building or asset that can be used to generate income?
3. Do we have a strategic plan to use this money in initiatives that will attract donors to support them?
4. How can we multiply this money?

You may choose to plug a hole which desperately needs to be plugged, or perhaps you’ll find a future funds growth investment that will be a blessing in the future.

Whatever you do, save some seed to plant and harvest in the days ahead.

13 August 2025

By |2025-12-17T13:14:50+02:00August 13th, 2025|Financial Management|0 Comments

Leave Pay Provision

Annual leave in South Africa is governed by the Basic Conditions of Employment Act, which states that every employee is entitled to 1 day for every 17 days worked, or 1 hour for every 17 hours, or 21 consecutive days of paid annual leave per 12-month cycle.

What does this mean for you as an employer?

– Annual leave accrues as the employee works, and it must be granted in the cycle in which it accrues.
– If an employee’s contract is terminated for any reason, they must be paid for any unused annual leave that has accrued up to that date.
– The employee must take leave: By law, they may not receive a leave payout (unless their contract is terminated).
– Statutory annual leave carried over must be taken within 6 months of the end of the leave cycle, or it will be forfeited, and the employer is not obligated to pay out or extend leave.

As NPOs, leave is paid as part of a salary contribution and often covered by donor contributions. However, if there is unpaid leave when someone resigns, that leave is often not paid by the donor, but by the organisation.

How can you limit your NPOs liability when it comes to leave?

1. Set up a leave policy and ensure your staff are familiar with it.
2. Keep accurate leave records during the year and keep your staff informed as to how much annual leave they have used.
3. At the end of each year, calculate the cost of unspent leave days and include that in your budget for the following year (leave days unspent at year end x daily salary rate).
4. Encourage staff to take leave regularly, for their own mental and physical health.
5. Set up a policy to limit extension of leave (for example, your organisation can choose to have a policy that states that all leave carried over should be used up within 3 months, not 6 months).

 

Don’t get caught unawares by leave pay – make provision up front.

14 July 2025

By |2025-12-17T13:16:14+02:00July 14th, 2025|Financial Management, Strategy|0 Comments