NMP 615 Development and

Management of Faith Based Organizations

GERTRUDE B. WHITE

NOVEMBER 15. 2013

E-PORTFOLIO #2

The requirements for a successful faith-based organization are

• Faith• Mission

and • Money

The history of philanthropy within faith-based organizations is vast

When settlers came to North America, they brought a quality of caring for those less fortunate.

Philanthropy is caring for another and is common amongst faith traditions

Faith Based organizations have “a mandate to pursue a mission that results in both worldly good for their service recipients and spiritual growth for those individuals, as well as for the staff and volunteers who serve and manage the organization” (Brinkerhoff p. 4).

“Religious images and metaphors have long been used to make appeals for contributions to common good because they are, in fact, highly effective in evoking deeply rooted – sometimes buried – elements of our sense of identity and purpose as a society whose cultural origins are largely Judeo-Christian in tradition” (Torry, p. 34).

The challenge is to balance both faith and mission.

Faith based organizations do have to meet higher standards for behavior and actions because of the sacred trust between the stakeholders and the organization as well as the imperative of the faith they represent. “Most religious organizations explicitly claim to be operating out of a different values based – and so the public expects greater integrity in their operation (Jeavons, p. 40)

Secularism“It might be that the best way to envisage the situation is as a spectrum, with religious organizations at one end and secular organizations at the other. Faith-based organizations will then be found between the two end-points either nearer to the “secular end, or nearer to the” religious end or somewhere in the middle” (Torry, 2005, p. 18).Faith-based organizations performing service work are affected by secularism, with historic roots in the faith traditions. The consensus is that the spectrum best illustrations the flexibility of the faith-based organization as being both part of the religious and secular arenas.

1) have a foundation of faith and a focus on mission2) has volunteers who fill key roles knowledgeably and

competently3) staff who use their gifts and let others use theirs4)pay close attention to their markets5) value excellent stewardship – in finance, strategic

planning, and resource management6) Value flexibility – within the value structure of the faith7) are focused on achievable, maintainable growth …and they evaluate what they offer, for whom and look for ways to improve.

CHARACTERISTICS OF A SUCCESSFUL FAITH-BASED ORGANIZATION

Organizational self-assessment found in Brinkerhoff (pp. 44-47)

The assessment covers the areas ofMission is it current?

Governance is it active and involved?

Staffing Are there policies and training?

Volunteers Are there policies and training?

Finance Are there policies, audits and transparency?

Planning Is there a strategic and marketing plan?

Growth What is the growth plan? What is the impact on revenues?

Marketing Do you ask for feedback? What markets are targeted?

A faith-based organization must be sure to • Work with the governance of the denomination and

organization and comply with reporting requirements• Pursue the mission • Allow policy makers to make policy• Have staff (and volunteers)implement policy• Represent the organization in public• Offer ongoing training for areas with responsibility –

staff, board and volunteers• Appropriately handle finances • Use checks and balances with finances for reporting

and transparency• Adapt to changing circumstances

Programs are part of the offerings of faith-based organizations:

What is offered?Who is expected (target market)?What determines success (evaluation)?What feedback is needed (flexibility and

adaptability)?

Does this program generate income?Does this program serve the mission?

How can the program be improved?

The tools for analysis based on Good to Great include“Great nonprofits constantly adapt and modify their tactics, find balance between bureaucracy and creativity, use the steps of adaptation that include listen, experiment and innovate, evaluate and learn, and modify. Additionally, different styles support adaptation and the successful nonprofit focuses on what not to do as well as steps for accomplishment” (Crutchfield and Grant 2012, pp. 151).

Additional tools of analysis

The six steps of the Crutchfield and Grant diagnostic tools for High Impact Nonprofits are

Advocate and serveMake markets workInspire evangelistsNurture nonprofit networksMaster the art of adaptionShare leadership for the greater good

GOOD LEADERSHIP INCLUDES:1)Treat others the way you want to be treated2) Leadership is in place to support staff and volunteers3) Leading by example offers the best model4) accountability5) Delegate

this involves trust, given opportunities and support6) Be responsible 7) invite creative thinking

EVALUATION1) on a regular basis – written or in person2) have a process3) ongoing4) of both the worker and the supervisor

CREATE A PLAN:1) decide on a plan of action

Faith-based nonprofits needLEADERSHIP

FINANCIAL STEWARDSHIPCreate a finance committee that oversees the financial health of the faith-based

organization and can answer questions by other membersELEMENTS OF FINANCIAL STEWARDSHIPThe committeeThe staffVolunteers – the finance committee and treasurerBudgets and reporting

BudgetsBalance SheetDepreciationFinancial RatiosIncome and expense statementPayablesNotification indicatorsReceivablesStatement of Cash Flow/projectionStatement of ActivityRevenues and LiabilitiesRestricted Funds

Financial controlsAudits and management letter (w recommendations of the auditors)Cash – who may or may not handle cash and the process for counting, recording and depositingChecks – whose signature is requiredStatement and check Reconciliation – who processes and who sees the reportReimbursement policy

EthicsThe Faith-Based organization must define the ethics by which it conducts

business includingGovernanceHuman resourcesFinancesReportingDay to day business

An effective leader in a faith-based organization can be the source of and inspire others into

MotivationInnovationCommunicationsFlexibilityLifetime LearningVision for the future

LEADERSHIP IN A FAITH-BASED ORGANIZATION

Marketing of the faith-based organization includes

Reaching multiple marketsConsidering reaching groups beyond considered marketsUnderstanding the constituenciesKnowing how to market programs or the product of the nonprofitreasonable costsPlanning for the futureProducing programs and services in the right placeDeciding the best way to serve the target market

The nonprofit must research the best use of its resourcesby performing research on the desired goalknow the competition

Faith-Based organizations must

Know the mission

And address Challenges and opportunities of FBOs including Systems thinking (management and leadership challenges)Best practicesEthics and accountability interrelated and rolesAccountabilityLegal and ethnical issuesReligious faith as a gilding and empowering forceMarketing

References:

Brinkerhoff, P. C. (1999). Faith-Based Management Leading Organizations

that are Based on More that Just Mission. New York, NY: John Wiley & Sons,

Inc.

Brinkerhoff, P. C. (2009). Mission-Based Management Leading Your Not-for-

Profit. In P. C. Brinkerhoff. Hoboken: John Wiley & Sons, Inc.

Crutchfield, L. R., & Grant, H. M. (2012). FOrces for Good Six Practices of

High-Impact Organizations. San Francisco: John Wiley & Sons, Inc.

Wolf, T. (2012). Managing A Nonprofit Organization. New York, NY: Simon &

Schuester, Inc.