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 o 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 1800’s 1960’s 1970’s 1980’s 1990’s • Colonial • Nonprofits • Tax Reform • Nonprofit • Government • Nonprofit Voluntary gain separate Act Management Contracting Sector grows Associations legal status establishes as Profession for Social from 1 million Private Services to 2 million Foundation organizations

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

M M l l y y if e f e a s a s a b o a 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 o 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 Program & Services Sustainability Focus Based on: McMillian, D. G. (2013). Foraker nonprofit sustainability model, In D. G. McMillian (ed.), Focus on sustainability. Anchorage, AL: The Foraker Group.

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 t S e r v i c e s ) p a s s P o i n t N o n p r o f i • • 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 o r k e w

Fulfilling Mission HEART BULLSEYE • RAD Fest • Dance Academy • Concerts • ABCDance • Community Performances Losing Making Money Money STOP MONEY TREE • Chocolate Soiree • None Not Fulfilling Mission

People • E n g a g e m e n t : N o n p r o f i t s f a c i l i t a t e c o m e s t o m u n i t y r e s p o n s 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 o 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 o 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 o 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 t u r e a n a g e m e n t a n d s t r u c • 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 t m u n i t y e n g a g e m e n

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

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 .