Prs575 d2016

PRS 575D: Planning and

Performance Measures for

Nonprofits

January - April 2016

Dr. David N. Westfall, MD, MPH, CPE

Affiliated Professor, RSPH

A Previous Title of the Course

• “Financial and Managerial Accounting for

Public Health Professionals”

• Current approach expands the focus

beyond an accounting perspective to

include broad management

considerations.

Class Introductions

• Name

• Current location and vocation

• Something of interest about the recent

holiday season – special traditions

observed, travel destination, favorite or

unusual gift given or received, or lessons

learned.

Course Overview

Goals:

• become acquainted with the role that nonprofit organizations play in society and their contribution to Public Health

• learn how nonprofits differ from for-profits

• learn about the challenges, operations, and management of nonprofits

• become personally acquainted with selected nonprofit organizations

• communicate what you have learned effectively

Course Overview (cont)

Methodology

• Text – “Nonprofit Management: Principles and Practice”, Michael Worth, 3rd Ed.

• Selected articles

• Lectures – on campus and online

• Group discussions – DB

• Individual papers

• Group projects – Wiki (or other platform)

• Group presentations – on campus

Evaluating a Nonprofit

Group presentations and class critique

Grading

Current Experience with Nonprofits

• Name the first nonprofit that comes to

mind.

• What is your opinion of it?

• How was that opinion formed?


• Have you ever worked with a nonprofit? If

so, in what capacity?


• What are the characteristics of a

nonprofit?

• What are the differences between “public

goods”, “common goods”, and “private

goods”?

The “goods”

• Public goods - individuals cannot be effectively excluded

from use and where use by one individual does not

reduce availability to others; typically provided by

government

• Common goods - a specific good that is shared and

beneficial for all or most members of a given group, but

not to all the public; typically provided by nonprofits.

• Private goods – the person who pays gains the full

benefit; typically provided thru the market


• What would you like to know about a

nonprofit before supporting it?

• How would you find out?

Guidestar

Did I read that sign right?

• TOILET OUT OF ORDER. PLEASE USE

FLOOR BELOW

In a Laundromat:

• AUTOMATIC WASHING MACHINES:

PLEASE REMOVE ALL YOUR

CLOTHES WHEN THE LIGHT GOES

OUT

Nonprofit vs For ProfitNonprofit

For Profit

In Nonprofits:

• THE CONSUMER BUYS THE PRODUCT

– TRUE/ FALSE

• PRICE COVERS COST AND

EVENTUALLY PRODUCES PROFITS,

OR ELSE THE BUSINESS FOLDS -

TRUE/ FALSE

• CASH IS LIQUID – TRUE/ FALSE

In Nonprofits:

• PRICE IS DETERMINED BY PRODUCERS’ SUPPLY AND CONSUMERS’ ABILITY AND WILLINGNESS TO PAY - TRUE /FALSE

• ANY PROFITS WILL DROP TO THE BOTTOM LINE AND ARE THEN AVAILABLE FOR ENLARGING OR IMPROVING THE BUSINESS -

TRUE/ FALSE

In Nonprofits:

• INVESTMENT IN INFRASTRUCTURE

DURING GROWTH IS NECESSARY FOR

EFFICIENCY AND PROFITABILITY-

TRUE/ FALSE

• OVERHEAD IS A REGULAR COST OF

DOING BUSINESS, AND VARIES WITH

BUSINESS TYPE AND STAGE OF

DEVELOPMENT –TRUE/ FALSE

~ 1.9 million nonprofit organizations

– 1.4 million charitable nonprofits -- 501(c)(3)

– 138,000 social welfare or advocacy nonprofits

-- 501(c)(4)

• 13.5 million employees (10% of U.S.

workforce)

• $4.3 trillion in combined assets

Size of the Nonprofit Sector in the

U.S.

Source: Independent SectorData from 2012

Nonprofits

• Nonprofit sector – between 1.5 and 1.9 million organizations (IRS figures “approximate”; big change in 2011 with revocations allowed)

• Largest number are religious; social welfare is next

• All are in public service

• Major focus: provide benefits to the community

• “Benefits to the community” = public health (IOM- “what we as a society do collectively to assure the conditions in which people can be healthy”)

• Formal organizations

• Private

• Non-profit distributing

• Self-governing

• Voluntary

• Provide public benefit

• Size and assets impact long term viability,

median age 20yo; 6-15 yo most vulnerable

Common Characteristics of Nonprofit

Organizations

Nonprofit vs For-Profit

• Typically, nonprofits use fund accounting

• Many different account numbers

• Different budget years and different requirements

• Funds can not be “co-mingled” – also referred to as categorical or “silo” funding

• For-profits accountable to owners and shareholders

• Nonprofits accountable to the public and governmental agencies

Nonprofit vs For-profit

• Many of same planning and management

principles apply to both.

• For-profit measures of success: profit, return on

investment, dividends to shareholders, etc.

• Nonprofit success: how well the mission of the

organization is accomplished; specific mission

determines what should be measured.

• Specific objectives of a program, likewise,

determine how its success is measured.

Varieties of nonprofits(from “Good to Great and the Social Sectors” – Jim Collins)

• Deep roots in American history and culture

– Greco-Roman culture

– Judeo-Christian culture

• Modern nonprofit sector -- rise of great wealth

resulting from the Industrial Revolution

– Carnegie’s Gospel of Wealth (1889)

• Definable nonprofit sector -- Filer Commission

(1975) first to recognize as significant sector

• Changes in federal spending on social programs

during 1980s

Origins of Nonprofit Sector

• “Nonprofit” terminology does not fully capture the purpose or diversity of organizations in the sector

• Possible alternatives– Independent sector– Third sector– Charitable sector– Voluntary sector– Tax-exempt sector– Civil society sector– Social enterprise and social sector– Emerging fourth sector?

Searching for a Common Vocabulary


In an office:

• AFTER TEA BREAK STAFF SHOULD EMPTY

THE TEAPOT AND STAND UPSIDE DOWN

ON THE DRAINING BOARD

Outside a secondhand shop:

• WE EXCHANGE ANYTHING - BICYCLES,

WASHING MACHINES, ETC. WHY NOT

BRING YOUR WIFE ALONG AND GET A

WONDERFUL BARGAIN?

• Purposes and activities

– National Taxonomy of Exempt Entities (10

categories)

– IRS classifications

• Who benefits from nonprofit activities

• Degree to which nonprofits are

commercialized or use business principles

and methods

Strategies for Categorizing Nonprofits

• Classifying nonprofit organizations by who

receives the principal benefit of the

organization’s activities

• “Member serving” versus “public serving”

– Member serving organizations exist primarily

to secure benefits for the people who belong

to them or who support them (Eg. ?)

– Public serving organizations exist primarily to

promote some aspect of social welfare (Eg?)

Salamon’s Anatomy

• Religious congregations

• Arts, culture, and humanities

• Education

• Environment and animals

• Health

• Human service

• International and foreign affairs

• Funding intermediaries

IRS Classifications: Charitable

Subsectors

• Both are 501(c)(3) organizations

• Definitions

– Public charities -- organizations that receive most of their support from a relatively diverse set of donors or from government

– Private foundations -- organizations that receive most of their support from a single donor

• Differences in treatment

– Taxes

– Limits on lobbying

IRS Classifications: Public Charities and

Private Foundations

• IRS tax code -- 501(c)(3)

• Requirements for receiving 501(c)(3) status– Organization’s mission and work must fall under at

least one of eight categories defined by the IRS

– Organization must meet the non-distribution test• Individual owners are not receiving benefits from the

organization’s assets

• Managers are not being personally enriched through excessive compensation

– Organization must limit its political activities• Can not support or oppose candidates for public office

• Limits on expenditures on lobbying

IRS Classifications: Charitable

Nonprofits

• IRS tax code -- 501(c)(4)

– Vast majority are advocacy organizations: organizations "to further the common good and general welfare of the people of a community“

– Small number are HMOs and other medical and dental insurance plans

• Key differences between 501(c)(3) and 501(c)(4) status

– Both groups are tax-exempt, but gifts made to 501(c)(4) organizations are not tax deductible

– 501(c)(4) organizations do not face the same limitations on political activity as 501(c)(3) organizations

IRS Classifications: Social Welfare

Organizations


In a London department store:

• BARGAIN BASEMENT UPSTAIRS

In an office:

• WOULD THE PERSON WHO TOOK THE

STEP LADDER YESTERDAY PLEASE

BRING IT BACK OR FURTHER STEPS

WILL BE TAKEN

Public Health/Social Problems

Addressed by Nonprofits

• Condition which affects significant # of

people

• Threatens established social value

• Needs collective action

• Belief that something can be done

• Resources, knowledge, and technology

available

• Discipline-centered explanations– Historical -- distrust of government, voluntary

associations, religion, First Amendment rights, population diversity, income tax and tax deductions, shifts in public policy

– Social -- socialization, reinforcing norms and values, social capital, nonprofits as mediating structures

– Political -- accommodating diversity, experimentation, freedom from bureaucracy, attention to minority needs

– Economic -- private versus public goods, externalities, market and government failures, nonprofits as gap fillers, supply-side theories

• Motivation theories (altruism versus self-interest)• Theory of the Commons

Theories Explaining the Nonprofit

Sector

• Derived from Enterprising Nonprofits: A

Toolkit for Social Entrepreneurs (Dees et

al., 2001 )

• Two extremes

– Purely philanthropic

– Purely commercial

• Organization’s placement on the spectrum

– General motives, methods, and goals

– Relationships with key stakeholders

Social Enterprise Spectrum

Hybrid Models and Controversy over

Commercialization

• Sabeti (2009)

– Increasing use of business methods by nonprofits

– Growing responsiveness of business to social concerns

• Movement to create a new legal category that recognizes hybrid models

– Low-profit, limited liability company

• Controversy over commercialization

– Pro -- Reduces nonprofits’ dependence on government and charitable giving, allowing for greater independence

– Con -- Leads some nonprofits to focus on the financial bottom line at the expense of their social missions

• Common misunderstandings -- nonprofit organizations

cannot earn profits and are always exempt from taxation

– Nonprofits are exempt from taxation on revenues

related to activities that directly address their social

missions

– Revenues from activities that are not related to the

mission are subject to the unrelated business income

tax

• Concern about engaging in unrelated business activities

– Substantial reliance would put the organization’s tax

exempt status in jeopardy

Commercialization and Tax Issues


On a repair shop door:

• WE CAN REPAIR ANYTHING. (PLEASE

KNOCK HARD ON THE DOOR - THE

BELL DOESN'T WORK)

Spotted in a safari park:

• ELEPHANTS PLEASE STAY IN YOUR

CAR

Nonprofit Choices for Groups

• Good News Clinics

• Georgia Campaign for Adolescent Power and Potential

• Georgia Mountains YMCA

• Gateway House

• Camp Twin Lakes

• Rahab’s Rope

• Elachee Nature Science Center

• Eagle Ranch

Group Preferences

• On the table provided, enter your name

and your Emory email address

• Rank order the listed Nonprofits in order of

your preference

• Rank # 1 = the Nonprofit you would most

prefer to study this semester

• Rank # 8 = the Nonprofit you would least

like to study this semester


Notice in a farmer's field:

• THE FARMER ALLOWS WALKERS TO

CROSS THE FIELD FOR FREE, BUT

THE BULL CHARGES.

Message on a leaflet:

• IF YOU CANNOT READ, THIS LEAFLET

WILL TELL YOU HOW TO GET

LESSONS

• Why do nonprofit organizations need to be

managed?

• Is management of a nonprofit organization

really different from management of a

business or government agency?

Two Fundamental Questions

Expectations of Nonprofits

• Past expectations: try to meet local needs, manage your budget, pass an audit

• Over last 30 years tax-funded support has declined

• Current expectation: performance accountability(Do human services programs work? If not-why continue to fund them)?

• Impact of regulations: Government Performance and Results Act; Federal Acquisition Regulation/ Government Accounting Standards Board

Nonprofit Expectations

• Performance measurement is part of

performance accountability

“What kinds of clients, experiencing what

types of problems, receiving what type and

volume of services, get what results, at

what costs?”

(Kettner, Moroney, and Martin 2008)

• Increased competition for government

funding

• Demand for nonprofit organizations to

show measurable results

• Focus on organizational capacity and

sustainability

• Growth in the nonprofit sector and its

assets

Need for Effective Nonprofit

Management

• Organizational trade-offs between

mission, acquisition of resources, and

strategy

• Complex relationships among various

stakeholders

• Double bottom line of social and financial

results

• Addressing problems that are

exceptionally difficult and intractable

Nonprofit Management as a

Distinct Profession

• What is the primary role of nonprofit

organizations?

– Social institutions responsible for preserving

social values (emphasizing process)

– Social enterprises responsible for achieving a

defined mission (emphasizing results)

Nonprofit Management as an

Evolving Field

• 426 programs in nonprofit management,

offered at 238 colleges and universities

– Number of undergraduate programs grew by

36 percent between 2002 and 2006

– Number of graduate programs grew by 26

percent between 1996 and 2006

– UGA – Institute for Nonprofit Organizations –

social work/political science/management

departments

Growth in the Study of Nonprofit Management

(Mirabella 2007 )

• Nonprofit management as a balancing act

– Organization’s mission against financial

sustainability

– Nonprofit sector’s unique traditions against

rapid changes in competitive markets

– Social and political forces against core values

and independence

• Nonprofit management requires a unique blend

of skills, distinguishing it from management in

government or the for-profit sector

Implications for Nonprofit

Managers

Challenges for Nonprofit Managers

• Salary/recognition less than same position in for profit

world

• Multiple “advisors” (boards, funders, clients, volunteers)

• “Focus on finding dependable sources of income”

• “Produce measurable results”

• “Evaluate whether you are making a difference”

• “Be strategic, not opportunistic”

• “Build diverse boards”

• “Spend more time on advocacy”

• “Collaborate with other organizations”

• Often with smaller staff, smaller budgets, less training,

increased demand -> frustration and burnout!

Rewards for Nonprofit Managers

• Satisfaction of working to advance important aspects of

human life – arts, education, culture, poverty, youth

development.

• Tackling some of society’s most daunting problems

• Protecting some of society’s most vulnerable members

• Making a difference in the future of society

• Camaraderie of working along side others who share

their values, priorities and commitments

• (Whether these are sufficient to offset the challenges is

an individual value judgment )


Notice in health food shop window:

• CLOSED DUE TO ILLNESS

Seen during a conference:

• FOR ANYONE WHO HAS CHILDREN

AND DOESN'T KNOW IT, THERE IS A

DAY CARE ON THE 1ST FLOOR

Introduction to Nonprofit

Management

• Management – the ability to organize and

allocate resources of land, labor and capital to

achieve the program’s objectives

• Constantly review available resources and

allocate appropriately

• Basic management functions: planning;

organizing; staffing; leading; controlling

• Basic management skills: conceptual, human

relations, technical; communication is vital!

What is involved in

Communication?

Communication (foundational requirement)

The act of exchanging information.

Communicating Effectively

Punctuation Saves Lives

• Let’s eat Grandma!

• Let’s eat, Grandma

Steps in Active Listening

• Identify the speaker’s purpose.

• Identify the speaker’s main ideas.

• Note the speaker’s tone as well as his or

her body language.

• Respond to the speaker with appropriate

comments, questions, and body language.

Communication Challenges

• Professor Ernest Brennecke of Columbia is credited with inventing a sentence that can be made to have eight different meanings by placing ONE WORD in all possible positions in the sentence: "I hit him in the eye yesterday."

• The word is "ONLY".

• The Message:

• 1. ONLY I hit him in the eye yesterday. (No one else did)

• 2. I ONLY hit him in the eye yesterday. (Did not slap him)

• 3. I hit ONLY him in the eye yesterday. (I did not hit others)

• 4. I hit him ONLY in the eye yesterday. (I did not hit outside the eye)

• 5. I hit him in ONLY the eye yesterday. (Not other organs)

• 6. I hit him in the ONLY eye yesterday. (He doesn't have another eye)

• 7. I hit him in the eye ONLY yesterday. (Not today)

• 8. I hit him in the eye yesterday ONLY. (Did not wait for today)

Interpersonal Communication

Conflicting or inappropriate assumptions– Good managers seek verbal and nonverbal feedback before

continuing the communication process.

Semantics– Multiple interpretations of words and phrases.

– Development of jargon amongst groups of people in specific situations resulting in the alienation of outsiders.

Perception– Perception is relative to different people.

– Selective perception often distorts the message.

Emotions– Communications during periods of high emotions are

usually unsuccessful.

Semantics

Multiple interpretations of words/phrases

• “A soldier who survived mustard gas and pepper

spray is now a seasoned veteran.”

• “This girl said she recognized me from the

vegetarian club, but I’d never met herbivore.”

• “I’m reading a book about anti-gravity. I can’t put

it down.”

• “What disease did cured ham really have?”

Reasons Why English is Hard to

Learn• The bandage was wound around the

wound.

• The farm was used to produce produce.

• The dump was so full that it had to refuse

more refuse.

• Since there was no time like the present,

he thought it was time to present the

present.

• I did not object to the object.

English is Hard to Learn (cont)• The insurance was invalid for the invalid.

• They were too close to the door to close it.

• After a number of injections my jaw got

number.

• I had to subject the subject to a series of

tests.

• To help with planting, the farmer taught his

sow to sow.

• A seamstress and a sewer fell into a

sewer.

Perception

• Perception is relative to different

people. (Their perception is their

reality)

• Selective perception often distorts

the message.

What Does the Sentence Mean?

“I didn’t say she stole the money.”








Choosing the Best Method

Choosing the best method of communication helps

in relaying information in appropriate and

professional manner.

•Verbal communication

– Most appropriate for sensitive communications such

as reprimanding or dismissing an employee.

•Written communication

– Most appropriate for communicating routine

information, such as changing company policies or

staff.

Communication Barriers

Complicating factors:

– Communicating in foreign languages.

– Cultural differences exhibited through nonverbal

communications. (“Gran Torino” – eye contact)

– Ethnic, gender, socioeconomic, sexual

orientation, generational

Suggestions to overcome these problems:

– The manager should learn the culture of the

people with whom he or she communicates.

– Write and speak clearly and simply.

Written Communication

Purpose– Why am I writing this document?

– What action do I want the reader to take after reading it?

Audience– Who will read this document?

– How much does the reader already know about this topic?

– How will the reader use the document?

– Are there any special sensitivities I should be aware of?

Main Message– What is the main message I want to convey?

– How will I support that message?

Final question of the day

• Why do you have to “put your two

cents in”… but it’s only a “penny

for your thoughts”? Where’s that

extra penny going?

PRS 575D: Planning and

Performance Measures for

Nonprofits

January - April 2016

Dr. David N. Westfall, MD, MPH, CPE

Affiliated Professor, RSPH

Class review

• Take some time to think about yesterday’s lecture and associated discussions and write down 3-5 things you learned about nonprofits. Or -

• If you already knew everything we covered yesterday, identify 3-5 things you think were most pertinent.

• Write down one question that you have as a result of our class time yesterday.

Review of Nonprofits Niche

• To do what public organizations can’t do

because of regulations or lack of political

will

• To do what for-profit organizations can’t do

because it is not profitable for them

• To identify new needs, means to help

underserved, and to initiate/reorganize

service delivery (Cnaan & Vinokur-Kaplan,

2014)

Components of Nonprofit

Management

Compliance within a nonprofit typically includes:

•Accountability to a Board of Directors

•Annual report to sponsors and donors

•Requirement for External Audit by a public

accounting firm including adherence to fund

accounting rules

•Completion of IRS Form 990

•Evaluation by organizations such as GuideStar

and CharityNavigator


Management

Management principles for nonprofits and

the public sector overlap significantly with

those used by successful for-profit

organizations. In many case, only the

measures of success differ.


Management

Program Evaluation:

– Effort evaluation

– Efficiency evaluation

– Outcome evaluation

– Impact evaluation

– Cost-effectiveness evaluation


Evaluation

Process evaluation vs outcome evaluation

•Poor outcome due to poor plan or poor

implementation?

Planning within a nonprofit

• Outcome measures should relate explicitly

to goals and objectives.

• Many programs fail because of lack of

clarity in the charge.

• Planner should not move forward without

clarity.

• Program must be consistent with mission

of the organization.


EvaluationReview of components for successful program management

•Definition of goals and objectives

•Defined outcome measures

•Well developed time line

•Appropriate organizational structure

•Clear management and communication

•Identification of sufficient resources

•Attention to multiple parameters of compliance

•Feedback mechanisms throughout the time period.

Strategic planning hierarchy…

Mission

Vision

Values

Goal

Strategies

Tactics and

measures

What makes us who we are: basic

purpose; reason for existence

Future state of being; What we would like

to become/our overarching long-term

goal

Core beliefs and model conduct

What we are trying to achieve; a

measurable event, milestone, or outcome

central to achieving the Vision

Directional choices to achieve the goal

Specific actions that implement or

support the strategy

Effectiveness-Based Program

Evaluation

Value = ability to create, design, implement

relevant service likely to reduce/eliminate problem

•Clear understanding of problem

•Initial measurement of type and severity

•Provide relevant intervention

•Exit measurement of type and severity

•Follow-up measurement for long term outcome

and impact

• Commit to the mission

• Lead the staff and manage the organization

• Exercise responsible financial stewardship

• Lead and manage fund-raising

• Follow the highest ethical standards, ensure accountability, and comply with the law

• Engage the board in planning and lead implementation

• Develop future leadership

• Build external relationships and serve as an advocate

• Ensure the quality and effectiveness of programs

• Support the board

CEO Responsibilities

Source: Board Source, 2006

• Significant overlap between CEO responsibilities and

governing board responsibilities

– Mission, financial stewardship, fund-raising,

accountability, planning, performance standards, and

the work of the board itself

• CEO responsibilities involve both managing and leading

– Management -- generally concerned with day-to-day

operations, emphasizing policies, procedures, rules,

and processes

– Leadership -- more about purpose, vision, and

direction

Observations About CEO

Responsibilities

Planning

• Strategic: determining organization’s objectives, resources necessary to achieve objectives, and policies that govern acquisition and disposition of resources.

• Operational: assure efficient and effective use of resources to accomplish objectives (continue, expand, modify, or terminate programs)

• Focus on mission

• Focus on the board

• Focus on external relationships

• Share leadership and empower others

• Focus on key roles and priorities

• Use the “political frame”

• Right person, right time, right place– Alignment model (Dym & Hutson, 2005)

– Founder syndrome and life-cycle theories

– Executive transitions and leading change

Behavior of Effective Nonprofit

CEO

Alignment Model

• Leader’s character & style,

• Leader’s personal values,

• Leader’s individual skills,

• Leader’s personal objectives,

• All align with corresponding attributes of

the organization and the

community/market

Founder Syndrome

• Founder often passionate, charismatic, and able

to inspire followers early in life cycle of nonprofit.

• May expect followers to serve as sacrificially as

founder, and feels entitled to make all decisions

independently.

• With growth more professional management

eventually needed, and Board needs to govern.

• Resulting friction = “founder’s syndrome”.

Founder Syndrome

• Challenged Child

• Our Neighbor

• Randy and Friends

• My Sister’s Place

• 2nd Hand Book Store

• Rooster’s Perch

Executive Transitions, Change

• Voluntary vs involuntary – CEO or others

• Internal vs external candidates

• Need for status quo or change in

direction?

Change Process (Kotter, 1996)

• Establish a sense of urgency

• Create a guiding coalition

• Develop a vision and strategy

• Communicate the change vision

• Empower broad-based action

• Generate short term wins

• Consolidate gains and produce more change

• Anchor new approaches in the culture

• “Defines what the future should look like, aligns people with that vision, and inspires them to make it happen despite the obstacles”

• Key questions

– Are leaders born or made?

– If they are made, what specific knowledge or skills do

individuals need to acquire in order to be strong

leaders?

– What are the specific behaviors that are associated

with effective leadership?

• Key caveats

– Most of the theories are generic (i.e., intended to

apply to all types of organizations, not just nonprofits)

– There may be no one right theory of leadership that is

applicable in every situation, at all times

Leadership Theories: Introduction

• Trait theories -- emphasis on innate characteristics

• Skills theories -- emphasis on specific skills

– Technical skills

– Human skills

– Conceptual skills

• Behavior theories -- emphasis on behavior or actions

– Task behaviors

– Relationship behaviors

– Managerial grid (Blake and Mouton, 1985)

• Contingency theories -- emphasis on the situation

• Servant leadership -- emphasis on values and commitment

Leadership Theories: Overview

• A leader is someone who behaves in certain ways that cause others to see him or her as charismatic

• Behaviors that cause others to see a person as charismatic (Rainey, 2003)

– Advocates a vision that is different from the status quo but still acceptable to followers

– Acts in unconventional ways in pursuit of the vision

– Engages in self-sacrifice and risk taking in pursuit of the vision

– Displays confidence in his or her own ideas and proposals

– Uses visioning and persuasive appeals to influence followers, rather than relying mainly on formal authority

– Uses the capacity to assess context and locate opportunities for novel strategies

• Need for social distance (“non fraternization”) (Fisher, 1984)

Charismatic Leadership

Transactional Leader

• Emphasizes rules, policies, and

procedures to ensure things done right

• Rewards or punishes others in exchange

for work they perform

• May be more effective in a for profit world

with paid employees

• Transformational leadership -- inspiring and empowering individuals to go beyond self-interest and pursue goals that are in the common interest

– Emphasis on developing personal relationships

– Appealing to shared values and ideals

• Especially important in a nonprofit where volunteers make up a significant portion of the staffing

• Transformational leaders use transactional techniques, but should not overemphasize them (Bass, 1985; Bass and Avolio, 1994)

Transformational Leadership

• Attempt to explain why some organizations are relatively bureaucratic and centralized, while others are more entrepreneurial and flexible

• Task environment -- internal structure as a reflection of the day-to-day transactions that make up an nonprofit organization’s work

• Organizational culture– In Search of Excellence (Peters and Waterman,

1982)

– Built to Last: Successful Habits of Visionary Companies (Collins and Porras, 1994 )

Internal Structures and

Organizational Culture

• Open systems -- nonprofits are dependent on and interact frequently with their external environments

– Shift away from emphasizing the internal mechanics of an organization’s operation (e.g., bureaucracy)

– Focus on the relationship between an organization and its external environment (e.g., social context)

• Resource dependency -- nonprofits are dependent on external constituencies for revenue, information, and other resources

– Goal displacement, performance measurement, internal impact, adaptation and management

• Isomorphism -- nonprofits in the same field tend to become more like each other as a result of facing similar influences from their environments

External Environment

Typical Nonprofit Funding

133

• Nonprofit revenues originating in state

governments reach nonprofits through:

– Direct grants

– Government contracts

– Fee-for-service

– Loans or guarantees

– Tax “expenditures” in the form of the tax exemption and

deductibility of charitable gifts.

– Nonprofit bonds

– Reimbursements for indirect costs

• State resources are supplemented by federal

resources at all levels. (Bank of America Webinar 2011)

An incomplete picture…

134

• An estimated one-third of nonprofit revenue (est. 1.9 trillion

in 2008) comes from government sources.• (Bank of America Webinar 2011)

45%

32%

20%

3%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Amount

35%

42%

20%

3%

Amount

Other

Private Sources(Contributions &Grants)

Government (Fees &Grants)

Private Sources (Fees &Services)

Giving USA, 2010 and Urban Institute, 2011 Estimates

Nonprofit Sources of Revenue

More Likely

What would it take to make up

for the cuts???(Bank of America Webinar 2011)

135

• In order to make up the cuts through household giving, we

would need to see an increase in the following fashion:

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

Severe Crisis Serious Crisis No Crisis

Percent Required Change in Houshold Giving to Accommodate Budget Decline

2011

2012

Nonprofit responsiveness to the “market”

136

• The correlation between the number of registered nonprofits and

changes in charitable giving appears weak. (Bank of America Webinar 2011)

150

160

170

180

190

200

210

220

230

240

250

1000000

1100000

1200000

1300000

1400000

1500000

1600000

1700000

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Ch

arit

able

Giv

ing

(in

$b

illio

ns)

Nu

mb

er

of

No

np

rofi

ts

Registered Nonprofits and Individual Giving 1997-2010

Number ofNonprofitsFiling 990

CharitableGiving

Elements of strategy…• What to do now

– Likely a double-dip; 2013-14 as timeframe

– Use skilled unemployed as volunteers

– Efficiency is critical

– Collaboration to drive down costs

– Need to worry about donor weariness of pleas of crisis;

make it about impact; make it about success

– Ability to withstand payment delays; cash flow strategies

(Bank of America Webinar 2011)

Difficult choices for nonprofits(Bank of America Webinar 2011)

138

Nonprofit

Financing Choices

Finance Externally Finance Internally

PhilanthropyExternal

Alterntives

Debt

Draw Down

Balances

Seek

Efficiencies

Reduce

Services

Not Reduce

Services

New

Enterprise

Programs

Increase

Fees

Economic Crisis

Can private philanthropy “lift”?

139

• We know it’s possible, but is it probable?

• The probability of philanthropy making up for the cuts is compromised

by reductions in household income, continued high unemployment, and

greater competition from a growing number of nonprofits.

• (Bank of America Webinar 2011)

What is Public Health?

• Promotes, protects, and defends the health of the

community

• Institute of Medicine (IOM): fulfill society’s interest in

assuring conditions in which people can be healthy

• Everyday plans and policies- Clean air and water

- Investigations of epidemics

- Education

Core Functions of Public Health

• Created by Institute of Medicine in 1988

• Core Functions are:

- Assessment• Monitor and evaluate the health of communities

- Policy Development• Create public policies to solve health problems and

priorities

- Assurance• Access to appropriate and cost-effective care

Core Functions and Essential Services

Wheel

UnhealthyEconomy • High health care expenditures• Lost productivity • Less community investment

Unhealthy Communities• Dangerous roadways• Food deserts • Unsafe and inaccessible parks

Unhealthy People• Obesity• Diabetes • Heart disease• Cancer

--New York Academy of Medicine “Health &

Economic Development”

2011 Public Health Spending Per

Capita

Top & Bottom 10County 2011 Job Tax

Credit

Rankings

(Reversed)

2011 Wisconsin

Health

Outcomes

Rankings

Oconee 1 2

Columbia 2 8

Harris 3 14

Fayette 4 1

Forsyth 5 3

Bryan 6 23

Cherokee 7 6

Cobb 8 5

Effingham 9 27

Houston 10 17

County 2011 Job Tax

Credit

Rankings

(Reversed)

2011 Wisconsin

Health

Outcomes

Rankings

Calhoun 150 156

Warren 151 146

Macon 152 140

Treutlen 153 81

Johnson 154 101

Atkinson 155 58

Taliaferro 156 NR

Jenkins 157 134

Telfair 158 145

Hancock 159 113

Georgia’s Population Grows While

Public Health Nursing Workforce

FallsGeorgia Public Health Nurses

What Defines a “Good” Nonprofit

• http://www.ted.com/talks/dan_pallotta_the

_way_we_think_about_charity_is_dead_w

rong.html

http://www.ted.com/talks/dan_pallotta_the_way_we_think_about_charity_is_dead_wrong.html

Prs575 d2016

Education

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