The NonProfit Sector

1
The Non-Profit Sector

• Prepared for RDA Learning Community
• Patricia Marrone Bennett, Ph.D
• January 2009

2
Questions for Consultants

• What are the unique opportunities and challenges
  facing non-profits today?
• How are they different from 10 years ago? How
  are they the same?
• What do you wish you could help non-profits
  learn?

3
The Public Sector -Non-Profit Organizations

• Non- profit organizations range in size from the
  smallest donor-supported volunteer groups to the
  largest tax-based service programs.

4
Public Sector Organizations

• Non Government Organizations NGO
• Non-Profits
• Community Based Organizations
• Foundations
• 501c3
• 501c4
• Local Education Agency LEA

• Government
• City
• County
• State
• Federal
• International

5
Non-profit Organizations

• 1.5 million non-profits in US
• 400,000 congregations serving communities in US
• Account for 8.3 of wages and salaries paid in US

6
Non-Profit Finances

• Public charities reported 1.1 trillion in total
  revenues and over 1.0 trillion in expenses
• 23 of revenue came from
• Contributions
• Gifts
• Grants
• 71 came from program service revenue (government
  fees, contracts)

7
Community Based Organizations

• Identified by their relationship to a group of
  people within a geographic area.
• Direct Services
• Education and Advocacy
• Economic Development
• http//www.google.com/search?clientfirefox-arls
  org.mozilla3Aen-US3Aofficialchannel

8
Characteristics of Non-Profits/Community Based
Organizations

• Mission driven
• Unique relationships with government
• Laws regulating them are unique
• Use of volunteers
• Wide range of stakeholders
• Unique issues and vocabulary

9
Community Based Organizations

• Often formed to address an unmet need or
  underserved population
• Provides a voice for the community
• Governance usually involves consumers of services
• Advocates for community they serve

10
Characteristics - Value Driven

• They address the most difficult and persistent
  problems of our society
• Last resort for many people
• Torch bearers for creating civil societies
• They teach us important lessons
• They add value to communities
• Social capital

11
The Vocabulary - ABCs

• The Urban Institute publishes a glossary of terms
  used in public sector organizations
• http//www.urban.org/toolkit/Decoder.cfm

12
Sources of Revenue

• Grants
• Fee for Service
• Individual Donations
• Corporate Contributions
• Government Contracts
• Event Fund raising
• Bequests
• Subscriptions

13
Characteristics Relationships

• Non-profits, including community based
  organizations exist within a set of relationships
  and are comprised of many stakeholders
• Funders
• Consumers
• Communities
• Government organizations
• Other non-profits

14
Types of relationships with other organizations

• Networking exchange of information for mutual
  benefit
• Coordination exchanging information and
  modifying activities for mutual benefit
• Collaboration exchange of information, modifying
  activities, sharing resources and enhancing
  capacity of another for mutual benefit to achieve
  common purpose
• Multi-sector collaboration voluntary, strategic
  alliance of public, private and non-profit
  organizations to enhance each others capacity to
  achieve a common purpose by sharing risks,
  resources responsibilities and rewards.

15
Internal Relationships

• Board of Directors Volunteers
• http//www.boardsource.org
• Management EDs, CEOs, CFOs, Program Directors
• Staff Professionals Paraprofessionals,
  Volunteers

16
Organizational Culture

• What is the business of the organization?
• What is its history its heroes and villains?
• What are the funding sources?
• What evidence based practices impact its work?
• What is the implicit and explicit style of
  management and governance?

17
Important Issues

• Dual Bottom Lines Mission and Business
• Evaluation and Outcomes
• Evidence Based Practices
• Technology
• Sustainability

18
Action Research Model
Entry and Contracting
Information Gathering
Evaluation
Organization
Findings, Recommendations
Action
Action Planning
19
Information Gathering A Collaboration

• Clarify
• Organize
• Integrate
• Qualitative and Quantitative

Feedback
20
Organizational Assessment

• Does the Board understand its role?
• Is there an opportunity
• for change?
• What is the infrastructure like?
• How is information used?
• What are best practices?

21
Action Research Model

• Ensure all stakeholders are participating

22
Positive Approach

• Promote informed decision making
• Build on organizational assets
• Appreciate and teach others to appreciate

23
Guiding Principals for Non-profits

• Articulate clear and measurable outcomes, for the
  Board, for programs and for staff and volunteers
• Develop a systemic approach to change and
  improvement
• Involve multi-disciplinary, multi-jurisdictional
  strategic partners
• Ensure data driven decision-making at all levels
  of the organization for program, planning, and
  development
• Ensure consumer participation at all levels of
  the organization

24
Guiding Principals for Non-Profits

• Invest time and resources in the ongoing
  development of cultural competency
• Develop fiscal practices that reinvest system
  cost savings
• Practice continual program improvement through
  on-going evaluation
• Utilize evidence based models of programs and
  services
• Develop a strength-based approach to client and
  community service delivery
• Ensure accountability to the community and to
  funders