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The Business of Doing GoodBy: Editorial StaffToday’s Not-for-Profit Organization is Not Your Grandmother’s Charity |
not-for-profits in the Lee County area. Although the results won’t be complete
until January; so far, she says, “the numbers are incredible in terms of the
impact we have in this community.”
The unpaid workforce
A primary difference between not-for-profits and for-profits
is the people who do the work. Many of the organizations have a few paid staff
members, but they are heavily dependent on workers who receive no pay; so part
of their challenge is getting unpaid workers to do what is needed. But you
won’t find too many not-for-profit directors who view it that way. Their
volunteers offer their services because they believe in the organization’s
mission.
“What you’re doing in a community has to be important enough
that people want to be involved with it,” and the volunteer has to be well
matched with the position, McManus says. The Collier County Education
Foundation has about five regular paid positions and numerous volunteers
working with each of the programs it supports — up to a thousand with just one
reading program.
An exception is Goodwill Industries. The Southwest Florida
Goodwill, which serves five counties, has volunteers, including its 26-member
board of directors. But getting free work out of people is not in line with its
mission, Beehler says. Its purpose is to help people with disabilities — and
others who have had trouble getting a job — find paid work.
It has about 20 paid staff members in administration. It
also employs more than 300 people who work in the local Goodwill’s 27 retail
stores, in its operations center where goods are collected and sorted for sale
either in the retail outlets or in bulk to Third World countries. Goodwill also
has paid clients at its new banquet facility at Three Oaks, and it contracts to
do the janitorial and maintenance work at highway rest areas. In addition, it
provides vocational rehabilitation, helps people get additional training if
they need it, helps clients find work, and helps them adjust to the work
environment.
“We pay everyone here. If they perform any work, they’re
paid,” says Beehler.
Of the 1,000 or more people who volunteer for the United
Way, many have been touched in some way by the United Way agencies. The
function of the 10 staff members is to support those volunteers, and they do it
in a way that makes it easy to be a volunteer, says campaign chairperson Laurel
Smith. “They have a business-like attitude. They way they run board meetings
and cabinet meetings [shows] they really respect volunteers’ time.”
The Salvation Army, which has 110 full-time paid employees,
helps ensure volunteers will remain dependable by having them apply for
positions, specifying their interests and how much time they can dedicate.
Volunteers put in more than 13,000 hours in the past year, equaling another six
full-time positions, Geltner says. They are critical to the Salvation Army’s
success, she says, and a key to motivating them is to make sure they know how
important they are.
And at the YMCA, with a 35-member board and about 300 others
running the various programs at 22 sites throughout the county, volunteers are
crucial to the organization. “Volunteers are basically the lifeblood of our
organization,” says Fulscher, one of the Lee County YMCA’s six full-time staff
members.
Bridging the Gap with Business
Through their volunteers, not-for-profits have the willing
cooperation of some of the community’s best business minds, who often serve on
their boards of directors and committees.
“I’ve depended very heavily on the finance committees and
the business leaders on the board,” says McManus. “One of the benefits of a
nonprofit compared to a small company in the profit sector is that board
members really give you the education that you need. They lend all of their
experience to your plan. You’re not struggling on your own. You have a very
good board of advisors.” The Collier County Education Foundation has “lots of
business leaders involved,” she says. “They are interested in public education;
they want to see a good work force coming out of our public schools.”
The board also serves as an important link to the community
that the organization serves. “One of the key roles of the board of directors
is fund-raising. They have to tell your story. You want a very well-informed
board,” McManus says.
With the growing demand for accountability, not-for-profits
have adopted more practices long used by for-profits. “With funding streams
raising accountability, we were forced to begin to build bridges between the
business community and non-profits,” says Geltner.
“Sometimes the business community looks at non-profits as
not being run as businesses,” Hampton says. “Every non-profit is a business. ...
We’re not in business to make a profit, but that’s not to say we don’t make
money.” In fact, not-for-profits have a great deal in common with their
business counterparts. “The similarities have a great deal to do with planning,
communication, budget development and implementation. There are certain
cornerstones of any business — whether not-for-profit or for-profit — that will
make it a success. From a day-to-day standpoint, I can’t get caught up in the
philosophical view. I have to look at it in a business sense,” says Hampton.
Some not-for-profits hire business-savvy directors, and many
also have resources at their disposal from their organization’s national
headquarters. The United Way and the YMCA are both autonomous organizations,
responsible for their own financial resources. The local entities pay dues and,
in return, they receive training, legal counsel, national marketing, and other
such resources.
“They train local YMCAs on how to raise money and how to
keep the best business-like practices,” Fulscher says, as well as providing
information from cross-studies on financial development, program standards, and
national program certification.
Each education foundation in Florida — and most counties
have one — belong to a statewide consortium, of which McManus is the in-coming
president. The consortium allows them to exchange information and ideas and
provides guidance, leadership and professional development.
A not-for-profit has to have good business practices,
Beehler says, or it won’t be able to effectively fulfill the mission it has
been charged with.
“The reason we’re successful is because we use business
management strategies to make it more effective,” she says. “We do what every
other business does and think that we do some of it a lot better,” she says.
“When people talk about the business aspect and why it’s so
important to have good business tactics in working in a nonprofit, the bottom
line is, if there’s no money, there’s no mission. We can only provide
additional resources and services to people with disabilities if we’ve
developed a business sense to bring the revenue in so we can help those
people.”
Jill Tyrer is a Cape Coral-based freelance writer.