PRS 575D: Planning and Performance Measures for Nonprofits January - April 2016 Dr. David N. Westfall, MD, MPH, CPE Affiliated Professor, RSPH
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?
Current Experience with Nonprofits
• Have you ever worked with a nonprofit? If
so, in what capacity?
Current Experience with Nonprofits
• 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
Current Experience with Nonprofits
• What would you like to know about a
nonprofit before supporting it?
• How would you find out?
Guidestar
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
Did I read that sign right?
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
Did I read that sign right?
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
Did I read that sign right?
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
Did I read that sign right?
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 )
Did I read that sign right?
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.”
“I didn’t say she stole the money.”
“I didn’t say she stole the money.”
“I didn’t say she stole the money.”
“I didn’t say she stole the money.”
“I didn’t say she stole the money.”
“I didn’t say she stole the money.”
“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
Components of Nonprofit
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.
Components of Nonprofit
Management
Program Evaluation:
– Effort evaluation
– Efficiency evaluation
– Outcome evaluation
– Impact evaluation
– Cost-effectiveness evaluation
Components of Nonprofit
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.
Components of Nonprofit
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