Its Time To Evolve: O u r F u t u r e a s N o n p r o f i t L - - PowerPoint PPT Presentation

2016 U.P. Nonprofit Conference

It’s Time To Evolve:

O u r F u t u r e a s N

• n p r o f i t L e a d e r s

PRESENTER

Matthew Downey

Program Director of Nonprofit Services Dorothy A. Johnson Center for Philanthropy matthew.downey@gvsu.edu Twitter: @matthewEdowney

2015 STATE OF THE NONPROFIT SECTOR

• Total Respondents: 5,451
• 67 Percent of total respondents serve low income

communities

• Responses are collected nationwide and come

from all 50 states and Puerto Rico

Source: Nonprofit Finance Fund

2015 STATE OF THE NONPROFIT SECTOR: % SURPLUS FOR FY 2014

2015 STATE OF THE NONPROFIT SECTOR: % DEFICIT FOR FY 2014

2015 STATE OF THE NONPROFIT SECTOR: MONTHS OF CASH READILY AVAILABLE

2015 STATE OF THE NONPROFIT SECTOR: ANTICIPATE ENDING FY 2015 WITH…

2015 STATE OF THE NONPROFIT SECTOR: GREATEST CHANLLENGES

H o w W e G o t H e r e

1700’s

• Colonial

Voluntary Associations

1800’s

• Nonprofits

gain separate legal status

1960’s

• Tax Reform

Act establishes Private Foundation

1970’s

• Nonprofit

Management as Profession

1980’s

• Government

Contracting for Social Services

1990’s

• Nonprofit

Sector grows from 1 million to 2 million

• rganizations

Re a e a l ity y C h C h e c e c k: : W e h a h a v e a l v e a l ea d a d er sh i h i p p cr isi s . i s .

N

• n p r o f i t s t o d a y a r e a s k e d t o d o i n c r e d i b l y

c o m p l i c a t e d w o r k . M

• r e c o m

p l i c a t e d t h a n e v e r i n U .S . h i s t o r y . N

• t h i n g i n t h e p r o f e s s i o n a l p a t h w a y s o f b o a r d

m e m b e r s p r e p a r e d t h e m f o r t h e j o b .

Nothing in the professional pathways of CEO/ED’s

p r e p a r e d t h e m t o w o r k w i t h b o a r d s .

Our reality isn’t changing. It’s time to evolve.

T h e T h e P P a t a t h w h w a y a y f o f o rwa r a r d : d : O b O b s e s e s s s s i o i o n s n s

• f s u c

f s u c ce s e s s f s f u l u l n o n o n p n p r

• f i t

f i t s E n g a g e m e n t I n c l u s i o n F a c i l i t a t i o n C o l l a b o r a t i o n S t r a t e g i c D o i n g B r a n d

M y M y l l if e f e a s a s a a b o b o a r a r d d ch a h a ir W e l e l l s p s p r i n r i n g / C o g / C o r i r i Te r e r ry y a n a n d D d D a n a n ce r e r s

Typical Nonprofit

• 35 Y e a r s o l d w i t h a f o u n d e r s t i l l a c t i v e
• $ 235,000 a n n u a l b u d g e t
• $ 210,000 c a s h r e s e r v e
• E n g a g e d B o a r d w i t h g r e a t p r o f e s s i o n a l s k i l l s
• L i m

i t e d S t a f f i n g

• 1 F u l l T i m

e A r t i s t i c D i r e c t o r

• 1 F u l l T i m

e O p e r a t i o n s M a n a g e r

• 1 P a r t T i m

e A d m i n i s t r a t i v e

• 3 P a r t T i m

e P r o g r a m C o o r d i n a t o r s

Programs

• 2 m

a j o r p e r f o r m a n c e s e a c h y e a r

• R A D F E S T (M

i d w e s t R e g i o n a l A l t e r n a t i v e D a n c e F e s t )

• A B C D a n c e

(C o l l a b o r a t i o n w i t h H e a d S t a r t )

• W

e l l s p r i n g D a n c e A c a d e m y

• C o m

m u n i t y O u t r e a c h P e r f o r m a n c e s

Challenges

• N
• t S u s t a i n a b l e
• O

v e r R e l i a n c e o n F o u n d a t i o n G r a n t

• $ 50,000 S t r u c t u r a l D e f i c i t
• C u l t u r e f o c u s e d o n D a n c e n o t C o m

m u n i t y

• R A D F e s t
• C u s t o m

e r S e r v i c e o f D a n c e C l a s s e s

• L i t t l e v a r i a b i l i t y i n p e r f o r m

a n c e s

• B o a r d m

e m b e r s n o t s u r e h o w t o h e l p

• T o o m

u c h w o r k f o r t o o f e w s t a f f m e m b e r s

• “Doggie Paddle Approach to Nonprofit Management”
• S a m

e s t r a t e g y ; d i f f e r e n t y e a r

The Foraker Group’s Sustainability Model

Focus

Based on: McMillian, D. G. (2013). Foraker nonprofit sustainability model, In D. G. McMillian (ed.), Focus on sustainability. Anchorage, AL: The Foraker Group.

Program & Services

Sustainability

Focus

• E v e r y o n e i n t h e o r g a n i z a t i o n m

u s t h a v e a s h a r e d a g r e e m e n t o f w h a t s u c c e s s l o o k s l i k e , h o w t o g e t t h e r e , h o w t o k n o w w e a r e m a k i n g p r o g r e s s .

• B o a r d m

u s t o w n t h e f o c u s . T h e y m u s t b e p a r t o f d e t e r m i n i n g t h e s t r a t e g y .

• F o r W

e l l s p r i n g :

• B o a r d E d u c a t i o n
• S t r a t e g i c F r a m

e w o r k D e v e l o p m e n t

• S t r a t e g i c I m

p e r a t i v e M a t r i x (C o m p a s s P o i n t N

• n p r o f i

t S e r v i c e s )

• F o c u s o n E a r n e d I n c o m

e

• B o a r d M

e e t i n g A g e n d a s O r g a n i z e d B y S t r a t e g i c F r a m e w

• r k

HEART

• RAD Fest
• Concerts
• ABCDance
• Community

Performances

BULLSEYE

• Dance

Academy

STOP

• Chocolate

Soiree

MONEY TREE

• None

Making Money Losing Money Fulfilling Mission Not Fulfilling Mission

People

• E n g a g e m

e n t : N

• n p r o f i t s f a c i l i t a t e c o m

m u n i t y r e s p o n s e s t o c o m m u n i t y n e e d s .

• O

u r j o b i s t o b u i l d a m

• v e m

e n t o f p e o p l e w h o a r e m e a n i n g f u l l y e n g a g e d i n o u r m i s s i o n .

• S u c c e s s f u l f u n d r a i s i n g i s a n o u t c o m

e o f e n g a g e m e n t .

• V o l u n t e e r s d o m
• r e t h a n g e t t a s k s d o n e .
• C u l t u r a l c o m

p e t e n c y a n d i n c l u s i o n a r e a m u s t .

• F o r W

e l l s p r i n g :

• R e s t r u c t u r e E D J o b a r o u n d f a c i l i t a t i o n
• C o m

m u n i t y E n g a g e m e n t c o m m i t t e e s a n d t a s k f o r c e s : R A D F e s t , D a n c e A c a d e m y , c o r p o r a t e t e a m

• C u l t u r a l C o m

p e t e n c y f a c i l i t a t i o n f o r D a n c e A c a d e m y

People

• CEO/ED’s job is to facilitate the work of the board and key

v o l u n t e e r s . 40% o f t h e j o b s h o u l d b e f o c u s e d h e r e .

• T h e B o a r d m

u s t a l w a y s b e o u t i n f r o n t .

• L e a d a n d F o l l o w i s t h e r o l e o f t h e C E O

/ E D

• B o a r d m

e m b e r s m u s t k n o w

• B a s i c r o l e s a n d r e s p o n s i b i l i t i e s ,
• W

h a t t h i s o r g a n i z a t i o n n e e d s f r o m t h e b o a r d

• H o w t o b e a b o a r d m

e m b e r f o r t h i s m i s s i o n

• F o r W

e l l s p r i n g :

• I n d i v i d u a l b o a r d m

e m b e r s h a v e t h e i r o w n s c o p e o f w o r k , O p e r a t i o n s M a n a g e r f a c i l i t a t e s t h e i r e n g a g e m e n t

• E d u c a t i o n o n m
• d e r n d a n c e
• O

n g o i n g e d u c a t i o n o n n o n p r o f i t m a n a g e m e n t a n d s t r u c t u r e

• R e
• b r a n d i n g f o c u s e d o n c u l t u r e o f c o m

m u n i t y e n g a g e m e n t

People

• CEO/ED’s job is to facilitate the work of the board and key

v o l u n t e e r s . 40% o f t h e j o b s h o u l d b e f o c u s e d h e r e .

• T h e B o a r d m

u s t a l w a y s b e o u t i n f r o n t .

• L e a d a n d F o l l o w i s t h e r o l e o f t h e C E O

/ E D

• B o a r d m

e m b e r s m u s t k n o w

• B a s i c r o l e s a n d r e s p o n s i b i l i t i e s ,
• W

h a t t h i s o r g a n i z a t i o n n e e d s f r o m t h e b o a r d

• H o w t o b e a b o a r d m

e m b e r f o r t h i s m i s s i o n

• F o r W

e l l s p r i n g :

• I n d i v i d u a l b o a r d m

e m b e r s h a v e t h e i r o w n s c o p e o f w o r k , O p e r a t i o n s M a n a g e r f a c i l i t a t e s t h e i r e n g a g e m e n t

• E d u c a t i o n o n m
• d e r n d a n c e
• O

n g o i n g e d u c a t i o n o n n o n p r o f i t m a n a g e m e n t a n d s t r u c t u r e

Partnerships

• T h e i s s u e s o u r o r g a n i z a t i o n s w o r k o n a r e f a r t o o

c o m p l e x f o r o u r i n d i v i d u a l o r g a n i z a t i o n s t o s o l v e a l o n e .

• C o m

p e t i t i o n d o e s n o t e x i s t i n t h e n o n p r o f i t s e c t o r . T h e r e i s n o s h o r t a g e o f r e s o u r c e s .

• C o l l a b o r a t i o n a u g m

e n t s t h e p h i l a n t h r o p i c c u l t u r e .

• W

e a r e b e t t e r t o g e t h e r t h a n w e a r e a p a r t .

• F o r W

e l l s p r i n g :

• C o l l a b o r a t e d w i t h H e a d S t a r t o n E a r l y L i t e r a c y p r o g r a

m , m e e t i n g a c o m m u n i t y p r i o r i t y n e e d .

• M

a d e t h e d e c i s i o n t h a t o n e a r t i s t i c c o l l a b o r a t i o n w i l l b e i n c l u d e d e v e r y p e r f o r m a n c e s e a s o n .

Unrestricted Cash

• L o n g t e r m

r e v e n u e g e n e r a t i n g s t r a t e g i e s m u s t b e f o c u s e d o n u n r e s t r i c t e d c a s h .

• R e s t r i c t e d p r o g r a m

g r a n t s a r e d a m a g i n g t h e s e c t o r .

• W

e a r e l i k e l y l o s i n g m

• n e y o n m
• s t i f n o t a l l

f o u n d a t i o n a n d g o v e r n m e n t g r a n t s .

• W

e m u s t b e a b l e t o i n v e s t i n w h a t w e n e e d a n d w h e n w e n e e d i t .

• F o r W

e l l s p r i n g :

• C o u l d n o t e x i s t w i t h o u t o u r c a s h r e s e r v e .
• F o c u s o n D a n c e A c a d e m

y .

• E m

p h a s i s o n b r a n d , e n g a g e m e n t , a n d c o m m u n i c a t i o n s h a s k e p t i n d i v i d u a l d o n o r i n c o m e s t e a d y

Resource Development

12.9% 23.1% 50% 9% 3.6% 1.2%

2013 2013 Public Public an and Cha d Charities rities Sour Source ces s of

• f R

Reven enue ue

Philanthropy Earned Income: Service fees from government sources Earned Income: Service fees from private sources Government Grants Investment Income Other (including dues, rental income, special events, goods sold) Total Revenues $1,650,000,000

Source: National Center for Charitable Statistics

HOW OFTEN DO FUNDERS COVER THE FULL COST OF PROJECTS THEY FUND?

REPORTING REQUIREMENTS IN RELATION TO FUNDING AMOUNTS IN 2014

Perspectives of Boston University's Schervish and Havens:

Giving ng is Infl flue uenced nced By:

• Values

s or Framew meworks

• rks of

Co Consciousn iousness ess

• Ex

Experi riences ences durin ing youth th

• Identity

ntity and Social l Partici ticipat ation

1. 1. Associatio

• ciation with community.

munity. 2. 2. Partici ticipation tion in the communi munity. ty. 3. 3. Identifi ntificatio cation of shared ed commu muni nity ty needs. s. 4. 4. Engagemen gement t (Time me or Money) ) in meeti ting ng commu muni nity ty needs. s.

COMMUNITY ENGAGEMENT ENCOURAGES GIVING & FUNDRAISING CAN BUILD COMMUNITIES

SOCIAL STRUCTURE THEORY

“Small Business and Civic Welfare,” 1946 report by C. Wright Mills and Melville J. Ulmer led to classic theory now taught in most sociology and business degree programs. 1946 46 res esea earch rch comparing

• mparing the

econ

• nomies
• mies and

d netwo works ks of:

• Grand

and Rapids ids and d Flint

• Kalamazoo

amazoo and d Pontiac iac Key y finding: ing: Soci cial al Institu itutions ions and d their ir boards ards play ay a key role in building a community’s soc

• cial

al capit pital al and d long g term rm econ

• nomic
• mic

viabi abili lity. ty.

COMMUNITIES WITH OPPORTUNITIES FOR LEADERSHIP AND ENGAGEMENT ARE MORE VIABLE

Chaotic Theory

Dee Hock, Founder of VISA

Self-organizing, Self governing, Adaptive, Nonlinear, Complex organization, community or system

Meg Wheatley Be the HOS T not the HERO.

The Future of Nonprofit Management

Innovation Traditional Structure Sustainable Impact Hospice Arc of Organizational Development

PRESENTER

Matthew Downey

Program Director of Nonprofit Services Dorothy A. Johnson Center for Philanthropy matthew.downey@gvsu.edu Twitter: @matthewEdowney

Thank You