Archive for April, 2008

Many Nonprofit CEOs Dissatisfied With Board Performance




A significant number of CEOs at midsize nonprofits are dissatisfied with the performance of their boards, particularly in regard to fundraising and the way boards monitor their own performance, a new report from the Urban Institute finds.

The report, Boards of Midsize Nonprofits: Their Needs and Challenges (12 pages, PDF), examined the results of a 2005 survey of 1,862 nonprofits with annual expenses between $500,000 and $5 million and found that 62 percent of CEOs indicated that their boards do a fair or poor job of raising revenue, while 60 percent assigned similar marks for their boards’ self-assessment activities. In addition, more than a quarter of CEOs rated their boards as fair or poor when it comes to evaluating CEO performance; planning; monitoring programs and services; community relations; and educating the public about the organization.

Although most CEOs rated their boards as good or excellent in most roles, the only area in which a majority — 53 percent — rated their boards as excellent was in respecting board-staff boundaries.

The report, which was funded by the Evelyn and Walter Haas, Jr. Fund, also examined board composition and found that 36 percent of boards have no minority members, and that on average only 6 percent of board members are younger than 35, while 13 percent are over 65. Among other things, the report recommends widening the pool from which nonprofits select board members in order to attract well-rounded members from a variety of backgrounds and implementing procedures for boards to monitor their own performance regularly.

“Substantial percentages feel their boards are doing a poor or fair job in many areas,” says Francie Ostrower, the report’s author. “Our findings clearly do reveal disturbing levels of CEO dissatisfaction with board performance.”

Source: PND News

Nonprofit Matches Baby Boomers to Work for Nonprofits



With the aging of baby boomers, we face a great challenge. How do we retain the skills and experience of these valuable workers as they move out of the traditional work force? At the same time, many baby boomers, who want to continue to work once they’ve “retired” are asking, “What kind of work will I do? Where can I find work that satisfies me, produces income, and enables me to improve the quality of life in my community?” ReServe, an award-winning nonprofit organization in New York City, has an answer.

ReServe’s Beginnings:
Founded in 2005, ReServe recruits skilled retirees (ReServists) and carefully places them with public service jobs that pay a stipend. The inspiration for this organization came from Jack Rosenthal, president of the New York Times Company Foundation, and Herb Sturz, a senior advisor to the Open Society Institute and founder of the After-School Corporation. Rosenthal and Sturz saw friends and colleagues retiring, and “were struck by the lack of any productive engagement for retirees other than volunteerism.” Wanting to offer skilled adults an opportunity to engage in public service, they founded ReServe.

How ReServe Works:
ReServe offers a unique model for civic engagement organizations. It identifies experienced adults and serves them as clients as it works with nonprofits and public agencies to identify appropriate service opportunities. Once clients are placed, ReServe maintains its relationship with the host organization and ReServist to ensure the relationship remains effective and mutually satisfying.

Visit ReServe to learn more about the people, organizations and work being done in this groundbreaking adventure. Be sure to look at the annual report for the full story of ReServe with wonderful photos and descriptions of Reservists’ work. You can also find contact information on the site.

Source: About.com

Nonprofit Leadership Crisis An Opportunity





If the reports are true, a storm is brewing in the nonprofit sector, and nonprofit boards may not be prepared to get out of the rain.

Sixty-five percent to 75 percent of executive directors in the U.S., and more than a few board members, will be leaving their jobs within five years.

And only 30 percent of those executive directors have discussed their plans with their boards, according to a recent CompassPoint study.

While this unprecedented challenge will make executive searches far more difficult for boards, there is good news.

This challenge will offer significant opportunities to talented individuals who utilize the next couple of years to broaden their understanding of fundraising, board management and the nonprofit world.

These aspiring leaders in the field of nonprofit management will actively pursue nonprofit leadership training and mentoring from experienced professionals with a wealth of practical experience.

When the call comes, they will bring a well-rounded set of skills and knowledge to the organizations that hire them.
Donors and volunteers will be assured their organizations have a strong leader at the helm — one with a clear vision of how their organization can excel in its mission.

The crisis at hand is not a crisis of “leadership drain,” but rather a crisis of leadership development.

Now is the time for nonprofit executive directors to identify and prepare potential leaders to transition into increasingly more responsible roles within their organizations.

To prepare their up-and-coming leaders for this transition, nonprofits will have to be firm in their commitment to develop these leaders through nonprofit management programs like those offered at local universities, community leadership development programs like Leadership Triangle and mentoring programs that pair experienced professionals with those willing to learn.

Mentoring programs carry a special appeal as they provide individuals with one-on-one advice from an experienced professional who is a leader in a particular field of expertise.

This approach allows learners to discuss day-to-day challenges with professionals who can help them develop skills in planning and problem-solving.

Mentoring will also be tremendously beneficial to the new executive director who has management training but no depth of experience working with donors or boards of directors.

Recognizing the challenges these transitions will bring to boards and potential new leaders, a local professional group has developed a program to prepare individuals for the opportunities that are coming.

Source: Journal of Philanthropy

Volunteers Worth More than Ever





The Independent Sector says that the estimated value of a volunteer hour almost kept up with inflation during 2007, increasing nearly four percent. A volunteer hour jumped by 74 cents, from $18.77 in 1006 to $19.51 in 2007.

That increase makes volunteers’ time worth 3.3 times the minimum wage which is at $5.85 per hour. The new figures were released in time for National Volunteer Week, April 27-May 3.

The value of volunteer time varies across the country with the highest in Washington, D.C. ($30.10) to the lowest in Montana ($13.51).

Diana Aviv, president and CEO of the Independent Sector said, “Our nation’s volunteers play a vital role in helping America’s 1.4 million charitable organizations improve lives across the country and around the world….Quantifying the value of their time gives us yet another indicator of how important volunteers are to communities.”

Source: About.com

Nonprofit Leader Urges Young Workers to Respect Elders





Young nonprofit employees are bringing energy and leadership potential to the charity world, but they should take time to learn from their elders, says Audrey Alvarado, executive director of the National Council of Nonprofit Associations, in an interview on the blog Perspectives from the Pipeline.

In an interview with Rosetta Thurman, creator of the Pipeline blog, Ms. Alvarado says that members of Generation X and Y — people in their 20s through early 40s — “want to get things done quickly and innovate, finding alternative solutions that might work better for us all.”

However, she adds, “they may not take the necessary time to understand the full context of the problems they are trying to address.”

She counsels patience and a willingness to listen to the experiences of older nonprofit leaders, to glean their benefit of their experience. “If we dismiss people because they don’t understand how to hyperlink to a Web page (this may be way too self-revealing!) you may lose the opportunity to learn something from them because you discount them altogether,” Ms. Alvarado tells Ms. Thurman. “Look for ways to learn from them and appreciate what they may teach you.”

To find out more about the tensions between younger nonprofit workers and baby-boom generation charity leaders, see this recent Chronicle article.

Source: Chronicle of Philanthropy

Nonprofit Web Traffic, Revenue Up





Some nonprofits are seeing growth in the number of people visiting their websites, and in online revenue, a new study says.

Conducted by Convio, a tech firm serving nonprofits, the Online Marketing Nonprofit Benchmark Index Study analyzed data from more than 400 of the firms clients, which together have had transactions from nearly 40 million constituents.

For organizations with fewer than 250,000 email addresses on file, the number of unique web visitors over the past year grew 10.8 percent, the study says, while traffic soared 34 percent for groups with more than 250,000 addresses on file.

Overall, 3 percent of those unique visitors became subscribers, up slightly from 2.8 percent the year before.

Revenue from online sources, including e-commerce activities, was up 25 percent, the study says.

The average gift size among nonprofits in the study grew from $56 to $60, which Convio says is higher than the average gift from traditional channels like direct mail and telemarketing.

Across all clients using Convio’s online platform, email files grew 32 percent, a rate the company says provides nonprofits an opportunity to engage with more of their constituents

Source: Philanthropy Journal

Are Video Resumes Good or Bad for Hiring?



Ok, now I might have opened up pandora’s here but this is a HUGE wave however there can be both good and bad to using this video resume technology. I just thought I would put together some pros and cons based on people I have spoken with and read about. A huge issue seems to be the legality of it all.

On the flip side video resumes of a company may seem to be more appropriate to selling a company but again, is a company REALLY going to show you their bad side if they are trying to attract top talent especially in the New Media world and age?

Are we taking the digital age of this new medium too far? Why not just take the time to set up a quick screen via a web cam so you can get real time interviewing? Are companies going to start to eliminate those w/o a video resume? I think this will be begin to leave some of the great candidates on the table because there are so many that still view these as tacky and how many people are really going to take the time if they have some real talent to do this. REALLY!

Pros:

*You can get a sense of a persons personality (if they are not camera shy)

* May be a plus in the acting community or where legally you need to see a person or submit a picture to qualify for a job

* In some instances can be used to supplement skills

Cons:

* You are literally putting more trust into someone than you ought to way too soon just based on a snippet of video.

* If you truly are looking for the best and the brightest, you could discriminate just based on a video piece and be held liable. Why trust a video plug that has be rehearsed a million times?

* Not everyone is comfortable on camera so you could be eliminating someone who is worth their weight in gold just because their likeness on video was not up to par.

* By the time it downloaded or you viewed it, one could have scanned 5-10 resumes. If someone is good they are good.

* Someone else could have written a script for them to say. You might not even get what you are thinking you are.

Source: Onrec.com

Young Workers Seek Ways to Improve Nonprofit Work Force




As nonprofit groups increasingly compete with business and government employers to attract young workers, many people in their 20s and 30s are pressing charities to improve salaries, offer greater opportunities for career development, and do more to promote the diversity of their work forces.

In follow-up conversation to a survey of 1,650 released by the Young Nonprofit Professionals Network last year, which found burnout and low salaries threatening to drive young charity workers away, members of the group held a conference here to discuss how they can bring about changes that will reshape nonprofit organizations in ways that make them more inclusive and give greater opportunities to emerging leaders.

“Our hope in pushing the conversation forward is to figure out what we can do as individuals and as a network to impact talent development,” said Josh Solomon, managing director of alumni engagement at Teach for America, in New York, and co-chair of Young Nonprofit Professionals Network’s national board of directors. “We’ve got to talk about solutions, not just further diagnose the problem.”

Robert Egger, president of D.C. Central Kitchen, a social-services charity in Washington, called on the nonprofit leaders at the meeting to consider that the solution is not just to make the nonprofit world bigger, more self-sufficient, and more sustainable.

“You all have completely got to redesign charity in America, 100 percent, top to bottom,” he said, adding, “There’s no big pot of money out there that’s going to allow you all to get paid a good wage unless you go out and develop it. What I see in your generation is a desire to see your spirituality, your income, and your lifestyle mesh. It doesn’t exist yet, and I think a lot of people come to the nonprofit sector thinking, I’ll find it there, and can be a little discouraged.”

Salaries and Opportunities

While many young nonprofit workers are discouraged to find that their paychecks fall short of their earning potential at businesses, Paul Schmitz, chief executive of Public Allies, a charity with headquarters in Milwaukee that trains young people for public service, said the gap is often perceived as being larger than it is.

“Most business is small business. And really, when you compare apples to apples, the average nonprofit to businesses the same size, the nonprofits pay well,” he said. “We don’t compare ourselves to the $13-million manufacturing company down the block, so we have this entitlement belief that we should be paid like Goldman Sachs.”

In addition to seeking higher wages, young nonprofit workers are looking forward to more professional-development opportunities, especially through leadership structures that encourage shared responsibility among staff members at all levels, said conference participants.

Mr. Schmitz praised the value of charity workers developing their careers with a variety of jobs and professional experiences.

“One thing nonprofits need to be thinking about is not just career ladders but monkey bars,” he said. “Sometimes it’s not about moving people up but moving people around and also creating monkey bars to other organizations.”

Safiyah Jackson, a member of the Chicago branch of the Young Nonprofit Professionals Network, and an education fellow in arts and culture management at the Chicago Community Trust, can attest to the benefits of cross-organizational career maneuvers.

Before she earned a master’s in education and pre-kindergarten child care, she had already received her master’s degree in business administration and worked for Ford Motor Company as a dealer consultant. She planned to open her own child-care organization but instead accepted an offer from the Chicago Community Trust to develop children and family educational programs and curriculums, a job she finds a perfect fit with her passion and skills.

“I’ll never leave the nonprofit world,” she said.

‘Intrapreneurial’ Spirit

Kim Caldwell, a member of the network’s national board, and a consultant to Greenlights for Nonprofit Success, in Austin, Tex., called on conference participants to tap into their “intrapreneurial” spirit, by promoting innovation first and foremost within their own organizations and existing roles, before going out on their own.

“I’m on the phone all the time with people who want to start their own nonprofits,” she said. “They have the energy, they have the passion, but they don’t have the connections.”

Ms. Caldwell questions why more of these entrepreneurs don’t take their energy and passion and put it into practice at an existing nonprofit organization, but she suspects she knows the answer.

“When it comes to our own ideas, we’re not willing to take the back seat, we want the cookie,” she said. But, she added, “Success is that our ideas get effectively implanted. That should be enough.”

To keep in regular touch with the ideas and objectives of young nonprofit workers, Allyson Biegeleisen, another member of the network’s national board, and director of client services at Commongood Careers, a recruiter in Boston that works with nonprofit clients, recommends a simple tactic.

“Every supervisor should be intimately familiar with at least three professional goals of those they manage, and those goals should be revisited quarterly and be directly tied to staff compensation,” Ms. Biegeleisen said. “That way, if and when an individual gets to the point where maybe there isn’t an opportunity for them to move up, then they hopefully now have a relationship with their supervisor, and it’s not so awkward for anybody because they’ve been helping you the whole time to get there.”

Yarrow Sandahl, co-chair of the Young Nonprofit Professionals Network’s national board, thinks that young nonprofit workers need to take more responsibility for driving their own professional development.

“I manage a team of five people who are pretty diverse in age, and none of them really own their own professional development,” Ms. Sandahl said. “It’s almost like the onus is on me to figure out their professional development, and I think that can be really frustrating on the part of managers.”

‘Admit Your Struggles’

She believes the same is true of mentor relationships; in last year’s survey, young nonprofit workers expressed a yearning for more such contacts on the job. But well-meaning attempts of young employees to demonstrate their capability can sometimes prevent these relationships from occurring, said Mr. Schmitz.

“Often among young people they think the way to prove themselves as leaders is to prove they can do it themselves,” he said. “The best way to get mentorship is to be vulnerable and admit your struggles. As a manager, the hardest thing to manage is people who aren’t open about their challenges and weaknesses.”

Mr. Schmitz also discussed the challenges the field has faced in creating a more diverse leadership; conference attendees pointed out that this is a challenge faced by the Young Nonprofit Professionals Network itself.

Faith Byone, program associate at the Bush Clinton Katrina Fund, in Washington, called attention to the fact that she is one of only two African-Americans on a board of 17 that oversees the network’s Washington chapter. Such small numbers, she said, do not reflect the predominantly black city the chapter serves.

“When thinking about affirmative action within this organization itself, in terms of moving people into leadership positions within your local chapters, reach out to people who are in your community who may not be participating, affirmatively,” said Richard Brown, vice president of philanthropy at American Express, in New York. “That’s what it means, it means to actually go out and do it. And don’t be bashful and don’t be ashamed about doing it.”

Mr. Brown believes that incorporating more diverse people and leadership practices into the nonprofit world requires changes at the board level.

“Boards need to become more diverse, not just in terms of people of color,” he said. “The Council on Foundations needs to get funders to start talking about this in a much more proactive way to get their grantees to start thinking about how do you get more young people on the board so that you have a younger voice that actually represents this next cohort.”

Mr. Solomon highlighted this goal among the network’s top priorities. “The Young Nonprofit Professionals Network is a great peer-to-peer network, but how do we get our alumni onto other boards is the question,” he said. “To see the changes we want to occur, we’ve got to get our message on other boards.”

Source: Chronicle of Philanthropy

American Red Cross Names New President



The American Red Cross has named former AT&T and Fidelity Investments executive Gail J. McGovern as its new president and CEO.

Currently a member of the faculty of the Harvard Business School, McGovern, who has twice been recognized by Fortune magazine as one of the most influential women in corporate America, will assume her responsibilities on June 23, taking over from acting president and CEO Mary S. Elcano. She spent twenty-four years (1974-1998) at AT&T, where she began as a computer programmer and rose through the ranks to become executive vice president of the company’s consumer markets division. Subsequently, she joined Fidelity Investments and a year later became president of its Personal Investments group, where she was responsible for 4.5 million customers, $500 billion in assets, and 10,000 employees.

An experienced fundraiser, McGovern has been involved with fundraising efforts at Children’s Hospital Boston, the Dana-Farber Cancer Institute, the United Way of Boston, and Johns Hopkins University, where she and her colleagues launched a seven-year, $2 billion campaign that exceeded its goal two years ahead of schedule — a goal that has since been increased to $3.2 billion.

“Gail McGovern brings outstanding leadership skills from the private sector, coupled with a deep commitment to volunteerism,” said Red Cross board chair Bonnie McElveen-Hunter. “With a passion for our noble mission and the people we serve, Gail will ensure excellence in all areas of Red Cross service. On behalf of the entire board of governors, who voted unanimously to approve her selection, we warmly welcome Gail to the American Red Cross family.”

“Business Leader, Nonprofit Volunteer to Head the American Red Cross.” American Red Cross Press Release 4/08/08.

Source: PND

Retention Report Special Features - Impact of Funding

-We need more unrestricted funds available from our funders so that we can invest in infrastructure and our people. -We lost our employees because of a grant restructuring, which prevents us from keeping that position. We have trouble getting and keeping quality employees because of our low salaries. However, lack of support prevents us from raising the salaries. -We don’t really have a huge turnover but it appears that way because we have a large amount of seasonal summer staff. Childcare employees that are grant funded are our biggest challenge. -Our retention/turnover problem seems to have more with fundraising issues – short-term grants that may require people with different skills from one year to the next, etc. — than with working conditions. -Our problem is not so much retention, as our employees tend to be pretty loyal. Rather, we have problems with being able to pay our staff that’s here so we can keep them. Our staff has shrunk over the past 3 years sue to lack of funding, not lack of dedicated employees. -Increasing salaries will be dependent upon Board participation in fundraising. -Competition for grant funding to support full- and part-time employees is becoming more competitive in the health arena. As such, allowing job sharing is becoming more common. Back to the Retention and Vacancy Report

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