power Steering: Econ 101 - Surviving and Thriving through Tough Times
May 2009
- Greenlights on the Recession
- Strength in Numbers: The 2009 Crossroads Conference for Nonprofit Excellence
- The Value of Skilled Volunteers
- Social Innovation in Challenging Times
- Reflections from our IEDs
Greenlights on the Recession
By Matt Kouri, Greenlights
We’re on pins and needles over here.
Demand for service is up 44% and giving is down 50%.
We decided to cancel our fundraising event this year.
We’re pretty darn worried.
Not sure how we’re going to make it this year.
I’m not sleeping well at night.
These are unfortunately common statements being made to us here at Greenlights by nonprofit staff and board members. And while Austin continues to be one of the best places nationally to ride out the recession, and recent news on the economy seems to be pointing to a recovery in late 2009/early 2010, we know that many of you are already struggling (or will soon be struggling) to meet the need for your services with fewer resources. We’re also worried that 2010 for many nonprofits may be even more difficult, with foundation giving likely to drop even more than in 2009 unless foundation asset values recover significantly.
At the same time, we’re also hearing many good stories of incredible impact in the community, volunteers stepping up as never before, solid diversified fundraising success, above-and-beyond generosity of many funders, and much more. That has given us hope and has also demonstrated some keys to surviving a recession that we will soon be sharing with you.
At Greenlights, we don’t believe the sky is falling, but we do want to help you be prepared for any eventuality. That’s why, thanks to the generosity of our funders, Greenlights will soon be announcing an array of new discounts, new services, new resources, and new workshops specifically designed to help your nonprofit not just survive the recession but actually thrive through it. You’ve heard that what doesn’t destroy us only makes us stronger, and we believe that this will be the case for Austin’s nonprofits. If we invest wisely, innovate, continue to develop ourselves, make some hard decisions, and adapt to the realities we are facing, we will come through this period even more stable, sustainable, and able to achieve our missions than we were before.
Stay tuned for more details in the next couple of weeks from Greenlights on our plan to help you survive and thrive the next 6-18 months.
Strength in Numbers: The 2009 Crossroads Conference for Nonprofit Excellence
By Ann Starr and Mary Alice Carnes, Greenlights
The annual Crossroads Conference always presents us with the exciting opportunity to bring together our nonprofit colleagues. Every year since 2002, the conference has grown –in numbers of attendees, session offerings, and networking opportunities.
We had already planned to change things up a bit yet again for 2009, and the significant and emerging challenges we are all facing this year because of the economic downturn gave us all the more reason to really rethink Crossroads.
Strength in Numbers is the theme of this year’s event, and it’s a fitting focus for many reasons. Foremost of these is the desire to work from a place of strength. We are stronger as a sector than we’ve ever been before. More lives are touched by our work every day, more work is being done, more donors are inspired to give, more professional development opportunities are available, and so much more. The recession has provided many of us with an impetus for understanding our greatest strengths and the areas where we need to become stronger. Beginning from a place of strength is empowering and assumes that everyone has something to contribute. It is not about lamenting what is lost or trying to simply “get back to the status quo.”
Then there’s the “numbers” part of the theme. There certainly are a great number of us – approximately 4,000 nonprofits in Central Texas alone by some estimates. As a group, we hold a great deal of power in our impact on the community and through our voices for positive change, and we are strongest when we work together. This year’s conference will see an expansion of peer-learning opportunities and the unveiling of a new “resource sharing” experience at the event.
The “numbers” part of the theme also speaks to the essential role that numbers play when facing difficult economic times. Like never before, the 2009 Crossroads Conference will offer tools and knowledge you can use to truly understand your organization’s numbers and put that data to use so you can not only survive, but thrive through the downturn. Save Thursday, September 24 and plan to be at the Crossroads Conference for Nonprofit Excellence. Let’s be part of the equation together.
The Value of Skilled Volunteers
By Kimberly Caldwell, Greenlights
There is a perfect storm brewing for volunteerism right now. It’s coming from all around us. The President of the United States of America is calling for more service; Congress has passed the Serve Act, empowering more young people to serve their communities; the recession is inspiring ailing companies and laid-off employees to find ways to strengthen their communities without giving dollars. We also know that Austin has a much greater appetite for volunteering than it does for giving. So how can we best utilize skilled volunteers to meet our organizational needs?
Using Skilled Volunteers
I recently sat down with a friend who has moved into the for-profit world and wants to give back using the resources of the organization in a pro-bono capacity. I pretty much popped her balloon when, instead of agreeing that it was an awesome idea, I asked her some questions about her intentions with a nonprofit:
- Will the help you offer be sustainable without their staff time, or will taking this help mean they are committing to buying services later on?
- Are you committed to seeing a project through, or will paying clients overtake the priority for your time?
- Is this really what will help a nonprofit meet its mission, or will this just be nice to have?
We talked about approaching an organization as a consultant, spelling out what their company would provide, in addition to the estimated time and resources it would take for a nonprofit to effectively use their help. Help is great, but only if it is the right help at the right time.
The 2009 Deloitte Volunteer IMPACT Survey largely confirms these concerns for using professional volunteers (only they did research instead of just drinking tea to come up with their stuff). Nonprofits have a need for the skills that professional volunteers can provide, but barriers on both ends prevent nonprofits from effectively using this resource.
Nonprofits should feel empowered to use volunteers for important unpaid staff roles when it is the right fit. To help make sure your volunteers are getting a fulfilling experience while still meeting your needs, consider the following ideas:
- Like you would with a paid consultant, create a scope of work that both parties agree to and includes a rough timeline.
- Make sure you understand what it will cost in time and dollars for your organization to maintain any systems or processes this volunteer may create (e.g., if a volunteer redoes your website, what will it take to buy the software and maintain updates).
- Remember that there is no such thing as free work; it will take someone to manage this volunteer and keep everything they do in-line with work done by paid staff.
- Make sure that this person’s work will be high quality, or at least meet expectations, and that they understand what your nonprofit does.
- Talk about how this work fits in with your larger organizational priorities and decide for yourself if it is best for your nonprofit to pursue.
- Don’t be afraid to say no if the offer is wrong; but make sure explain why you won’t be using their free services. .
One of the first things that a good volunteer manager learns is that you can’t just give a volunteer four hours of data entry to do and expect them to come back, unless they are volunteering with you because they want to do data entry. You have to help volunteers do work that is both meaningful to them as well as valuable to the organization. Apply that same logic to skilled volunteers. What will make this meaningful to them?
- Consider some sort of volunteer title or position that can go on their resume.
- If appropriate, invite them to meetings where their project will be discussed so they can learn more from the process.
- Ask how they would like to be thanked for their work.
Not every task beyond the scope of your staff’s work should be filled by a volunteer. When time is of the essence, or when there is high risk involved in an endeavor, you may be best served by a paid consultant that will not have to prioritize other projects over yours. It’s all up to you, and it’s about making your life and your organization better, not about using free help whatever the cost.
Social Innovation in Challenging Times
By Sam Woollard, Knox-Woollard Professional Management, LLC
At a time when many larger corporations who have traditionally supported local nonprofits are freezing or decreasing their funding for local nonprofits, a new breed of socially innovative business is emerging in Travis County.
In the Spring of 2007, Laurie Loew was at a crossroads. Recently divorced and wanting to find a way to combine her love of real estate with a sense of purpose, she decided that she wanted to reinvent herself. From this, Give Realty was created. As part of its business model, Give Realty donates twenty five percent, an average of $2,100, of the realtor commission to a 501(c)(3) of the buyer’s or seller’s choice. The original intent was to create a business that had a social conscience, but a side benefit is that Laurie has found that she is creating philanthropists. Her clients report that by conducting research on nonprofits, they are learning about organizations they now want to be further involved with or donate to.
Similarly, Susan and Justin Marler worked in the energy auditing and green building trade for over a decade before they decided to start their own business, Energy Action. After years of personal involvement in local nonprofits, they wanted to incorporate philanthropy into their business model. Each fall, when they complete their annual audit, they donate twenty five percent of their profits to local 501(c)(3) organizations. In 2009, their giving will focus on environmental and early education and care nonprofits.
Austin-based Scott Collier and his friends created the Rockroom Winemaking Initiative as a way to make great wine for themselves and their friends. Soon, they were producing more wine than they could drink and so decided to sell the excess. Since they didn’t want to start a business, they decided to use their profits to provide microloans through www.kiva.org and donate 10% of the loan to Kiva. So far, they have made sixty loans through Kiva and all have been re-paid or are on schedule to be paid. Not only have they become successful philanthropists, their wine is also being recognized for its quality.
An increasing number of local businesses are identifying innovative ways in which they can support the nonprofit community. The challenge for the nonprofit community is to identify these companies and create strategic alliances. At a time when traditional funding sources are dwindling, it is these innovative approaches that can begin to fill the gap.
Reflections from our IEDs
Edited by Jack Nokes
The Interim Executive Director (IED) program has become a key part of Greenlights’ Executive Transition Management services to nonprofits. Four of Greenlights’ specially-trained Interim Executive Directors have recently finished placements, guiding nonprofits through crucial periods of transition. Power Steering asked IEDs Elizabeth Ann Gates, Mike Rush, Kathy McCarrell, and Jack Nokes to share some of their experiences and things they learned during their initial placements.
Background
The IED program was conceived to provide nonprofit boards and staff an “on the ground” consultant to advise and support them on an array of issues, many relating to the strategic decisions the organization should consider. The IED guides the agency during this time of change, helping the board and staff lay the groundwork for success, while a thoughtful and intentional search for a permanent Executive Director takes place. In many cases the IED works closely with the Greenlights staff as it conducts the executive search for the organization.
Benefits of the IED Program
In discussing IED Program benefits, Elizabeth Ann Gates said that the IED “brings in a fresh pair of eyes to spot challenges and opportunities.” During her time working with the Down Syndrome Association of Central Texas, “the board took time to recognize its accomplishments and celebrate them instead of focusing solely on what work might also be done. Doing this helped them see their successes, which were many, and then make informed decisions about what their next goals would be. By the end of our time together, the board was refreshed and energized to go forward with new positive purpose and focus.”
Kathy McCarrell said that one of the greatest benefits of her placement with the SIMS Foundation was the organization “knowing that the programs will continue smoothly while the board and staff ‘take a time out’ to reflect on their work and how they are doing it.”
Mike Rush was placed as an IED with the Mother’s Milk Bank. He felt that the Greenlights Diagnostic (organizational assessment) process “gives the board in-depth, unbiased insight into the agency operations followed by well-informed suggestions for agency growth.” Both Rush and Jack Nokes (placed with the U.S. Green Building Council – Central Texas Balcones Chapter) said that the results of the Greenlights Diagnostic inform and improve the executive search process, allowing the board to evaluate its strengths, needs, and strategic priorities. This helped them select a new executive who is the very best fit for the organization.
Strategic Planning During the Interim Period
An important aspect of this program is for the IED to work strategically with the board to get the organization in the best possible shape when the new executive director comes on board. A comprehensive organizational assessment—the Diagnostic—is a key service the IED provides for the board. Jack Nokes reported: “I interviewed 27 current and past board members, key stakeholders, executive directors of other USGBC chapters, and representatives of the national organization. Through this process emerged a clear consensus list of chapter priorities.”
In her work as an IED, Kathy McCarrell observed that: “Strategic plans can stagnate from group think. Through surveys, interviews and document review, the IED finds out what board and staff really think, and in the process they can be re-engaged around the critical issues facing the organization. The IED creates a grassroots democracy movement in the organization that energizes and unites the entire organization.”
Elizabeth Ann Gates adds: “The organizational assessment is key to a series of strategic decisions that are required in the transition process. Informed by the Diagnostic, the board can see what needs immediate attention, what is working well, and what needs to be improved. This assessment also helps the board make strategic decisions about the skills they need in the Executive Director. The assessment process informs the search process so that the search finds exactly the leader the organization needs at this time.”
Supporting the Board during the Transition Period
Mike Rush said that: “One of the greatest services offered by the program is the board support and direction they receive. It is important for the IED to work closely with the key board members to assess which decisions and future plans need to be made during the interim period due to the fact that the IED is new to the agency and he/she is only temporary.”
Gates thinks the IED helps the board “by listening to them and by reporting back so they can ‘hear’ themselves and recognize their issues and concerns more clearly. This keeps them focused on the priorities of this change process.” McCarrell adds: “Just knowing that an experienced IED is there to help us takes a lot of pressure off of the board members during a management transition.”
A key requirement of the program is that the IED cannot be a candidate for the organization’s vacant ED position. Nokes says: “everyone understands from the git-go that the IED cannot be a candidate for the job. This gives the IED freedom to give the board frank, unvarnished advice, and the board knows that the IED's advice is not influenced or motivated by wanting a permanent job with the organization.”
Putting the New ED in a Position to Succeed
Gates compares her interim stint with DSACT to spring cleaning: “We did our organizational house cleaning so that the new ED would start with the organizational ‘house’ in good order.”
Organizational change was one of McCarrell’s interests: “The IED didn’t change the organization but made the case for change. The IED had no agenda other than comparing a nonprofit to the established best practices of the best-run nonprofits. Armed with a fresh perspective, the board and the new executive director focused quickly on the most important issues.”
Rush thinks this process “increases the chance that the new ED will succeed because the IED can fill any gaps that may need to be filled before they arrive.” For example, working with the USGBC board Nokes “identified some key policies and procedures (e.g., bylaws, new board and personnel manuals) that we were able to draft or update before the new ED took over. We wanted them in place so the new ED would be able to focus on strategic and programmatic concerns rather than internal policies.”
Another key benefit is “onboarding” the new ED. Rush says that the IED “is there to provide a thorough download of up-to-date information once the new permanent person is hired.” Nokes adds: “I have been working with Jane Baxter Lynn—USGBC-CTB’s dynamic new ED—in the orientation/onboarding process. Having access to the knowledge gained through the Diagnostic process has helped Jane hit the ground running.”
Other Lessons and Challenges: Teaching Old Dogs New Tricks
An additional bonus of the IED program is that the “seasoned” IEDs were able to learn from their interim placements about new ideas and trends in nonprofit management. Nokes’ experience with an organization with a conservation mission taught him that board meetings do not have to involve stacks of paper for each board member. “USGBC CT-B sends all of its board information electronically, and most board members bring laptops to the meetings instead of folders full of paper. Because USGBC CT-B covers 55 counties, half of the board meetings are by conference call to save on travel time and gas. The organization uses the ‘WebEx’ service to post all of its documents to the Internet. The organization is remarkably transparent, and almost all of its information is easily accessed on the Web.”
Interim stints also involved some “going to school” for the IEDs. Rush said: “My biggest challenge was how I, a non-technical person, could lead an organization with programs that involve a high level of medical technology. I could start assessing the nonprofit management issues right away, but it took some time before I understood the milk production processes well enough to measure their impact on personnel, finances, planning, etc. I had to learn a lot from Board and staff before I could consistently judge the importance of technical issues.”
In McCarrell’s case, there was a learning curve in getting to know the music industry. She said: “I had no knowledge of musicians and very little familiarity with music other than what sounds good to me. SIMS is knee deep in all Austin musicians in several genres. I felt lost during many conversations. On the other hand, I was not tongue tied when meeting several celebrities…because I didn't know better!”
What Comes Next?
Given the trends showing that Austin nonprofits expect significant turnover in executive leadership as Baby Boomers begin to retire, Greenlights expects the demand for its Interim Executive Director service to continue. And the current group of IEDs is anxious to face this challenge. All of those interviewed said that the IED experience was fulfilling, and they all were looking forward to their next placement.
If your organization is anticipating a change in leadership and wants to know more about the program, please contact Greenlights’ Tara Levy at (512) 477-5955 ext. 235 or levyt@greenlights.org.