Is Your Nonprofit Trustworthy

It’s that time of year when individual nonprofits, the United Way, and alternative organizations to the United Way are sending letters and are working with employers to solicit donations.  New nonprofits seem to be popping up to ask for funds.  The public often assesses nonprofits simply by familiarity, word-of-mouth, the visibility in the community or increasingly by websites and Facebook pages.  Something new has popped up to turn our direction toward nonprofits, #GivingTuesday, the Tuesday after Thanksgiving.  It urges us to volunteer and donate in our area rather than simply spending our money on Black Friday.   

Since the public values nonprofits because we trust them, you might want to consider what your website and Facebook page says about you.   Are you transparent in your actions and do you tell donors how you use donations? 

The first stumbling block is whether the public can tell you are a nonprofit.  This summer I donated some materials and photos to four historical societies.  I’m familiar enough to know that historical societies are nonprofit, but I’d be hard pressed, except for the donate button, to know that two of the four were nonprofit.  Some nonprofits, particularly colleges use the term private, but this confuses the situation as for-profit colleges have come under serious scrutiny.  In a study I did of 104 nonprofits, I searched for the words nonprofit, non-profit, not-for-profit, charity, tax-exempt, 990, 501(c)3, or United Way member.  A little over half had such an indication.  A visitor to your website could look for an annual report, a link or a post of 990 form, or even a page that states how donations were used.  Only 39% indicated the purpose for donations.  Perhaps, less specific, your nonprofit could have a code of ethics, a list of board members, its mission, or even historical information to let visitors know of your status.  If you are missing some of this information you are not alone. 

Could a potential donor find your executive’s name, email, or phone number?  In my study, many nonprofits made it difficult.  I think contact information is sometimes missing because we all get bombarded with emails, but if email is overwhelming, a phone number would help. 

Being transparent and trustworthy is your function.  For a small nonprofit, it will mean re-working the website to ensure you are clearly identified as a nonprofit.  Once done, the type of information I am talking about should be more or less permanent with updates yearly for, say, an annual report. You’ll be more likely to connect with young people who are less familiar with the differences between government, private and nonprofit sectors.

I visited GivingTuesday.org and GuideStar, the search that provides 990 forms of nonprofits,  I did not find any indication that GivingTuesday  was a nonprofit except that it was founded by the 92nd St Y and many people listed on the website have given money to support it.  When I emailed the website, I learned that it is a "project created and run by the 92Y Belfer Center for Innovation and Social Impact."

What did you find missing at your nonprofit’s website? 

For assistance, please contact me at Management.Vision 

The Decline of the Pink Collar Worker

The 37.5 Hour Work Week

I visited a vice president at a private nonprofit college one time. He seemed particularly pleased to tell me that he had no administrative assistant.  He answered his own phone.  I know another professional who is constantly photocopying and preparing report materials because there is no clerical support.  I’m sure that you have visited a government agency or university that has a receptionist or administrative assistant in the middle of the hall.  You’ve come across a locked door and had to use an intercom and be buzzed in.  You may have had to be the receptionist and talked to visitors, clients, or customers because you had no support person to do so.  Of course, we all have become accustomed to the ubiquitous, press 1 if you want…, press 2 if you would like to speak to, etc.

Some of these situations have occurred for efficiency.  We all have computers and cell phones to keep in touch with staff, clients, customers.  Some of these situations have been occurred purportedly for security.  Now with the new Fair Labor Standards Act rules going into effect Dec 1 that will require you to pay overtime to once professional exempt workers, you may be thinking about whether you need that clerical help again, this time to save money. 

We just went through an election cycle when politicians bemoaned the loss of manufacturing jobs and offered solutions.  The decline of manufacturing, however, is nothing new.  Nor is the decline of the pink collar worker, but few talk about the situation.  

Are there other ways to approach the changes in exempt and non-exempt status of your employees besides laying off?  Sure FLSA experts and Management.Vision will tell you to conduct a job analysis to consider whether the jobs are truly doing exempt or non-exempt work but, for the most part, your professionals at the lower end will become eligible for overtime. 

Think about the flip side, how much time your executives and professionals will spend on clerical work with a loss of a pink collar worker.  No executive or professional is going to  

admit the time they spend on clerical work.  Consider what impression you make not having an available receptionist. 

How about shortening the forty hour week?  There is no law that says your work week must be forty hours.  I have worked in places that have had a 37.5 hour work week and a 35 hour work week. I know some employers who have used a 39 hour work week. Who wouldn't like to go home an hour early on Friday.  I’ve seen the 37.5 hour work week successful in a nonprofit hospital including for the nursing staff. This doesn’t mean that you won’t need to pay overtime and certainly hospitals do, but you just might save a job, keep good customer relations, and keep down that expensive wage for your professionals to do clerical work.  Cutting the work week and saving jobs may not work in all nonprofits and government agencies but it might work for yours.  

New On-line HR course for government and nonprofits

PPM 632 Human Resource Management

for Public, Nonprofit, and Health Organizations

On-line (3 credits)

Class Begins Thursday, Sept 1, 2016

Managing human resources in any organization is one of the top management responsibilities whether you are in a public, nonprofit or health organization.  Yet it is fraught with fads.  Ever wonder why a policy is written in a particular way?  Ever wonder how you motivate employees?  We'll answer these questions and more and help you figure out whether the latest fad or gimmick is going to last.  

This course is designed using a competency based approach.  A particular emphasis is placed on understanding motivation; equal employment opportunity law; wage systems; and succession planning.

Who should take this course?

Consider this course if you are or intend to be a manager. Most people will not be working in HR, but you will be supervising others sometime in your career.

Technology needs: Course conducted using the university’s web-based educational delivery system called “BlackBoard.”  Access to a high-speed internet connection is required. 

Books: Books include Drive, Daniel Pink; Getting to Yes, Fisher and Ury; Dresang, Dennis, Personnel Management in Government Agencies and Nonprofit Organizations.

Cost:  $1140 plus $139 in fees

Course Instructor: Carolyn Ball, PhD, Associate Professor, USM, Muskie School of Public Service, has taught HR for over 23 years and has worked in the field.  She has written several scholarly articles on workforce issues, in particular on workforce diversity and discrimination.

To register: Registration is easy; tel: 207-780-5230 or https://usm.maine.edu/reg/generalregistrationinformation   Students enrolling in this class must hold a bachelor's degree. For more information on the course, contact the instructor at Ball@maine.edu

JULY 4TH, OTHER HOLIDAYS, PAY AND EMPLOYEE EXPECTATIONS

Have we forfeited supervisory and administrative responsibility 

by giving too many holidays with pay?

Who doesn't love a holiday off.

This year the 4^th of July holiday was easier for employers to schedule since it fell on a Monday, but you may have had people call in sick or take another day off causing some disruption.  One year I called in sick the day after the 4^th of July.  This is a no no.  According to policy I was to bring in a note from my doctor or lose out on the pay.  It was doubly embarrassing because I worked for Human Resources! 

When I worked at a university as a professor whether employees had Martin Luther King day off varied from year to year.  Some years classes weren’t scheduled so professors didn’t come in.  On other years, support staff had the day off, but classes were running.  A newly merged YMCA-YWCA closed for Martin Luther King day in keeping with the YWCA mission to end racism.  Later years, it remained open but had special events to honor MLK.  Many employees take the week of the 4^th off for summer vacation so it is a planned vacation.  A lot of governments give the day off Thanksgiving even though it is not a scheduled holiday.  Watch next year to see if your governor gives state employees these days off.  For some nonprofits, those with pools or camps, its full steam ahead on the 4^th. No day off.  These decisions show the many issues nonprofit and government employers face when it comes to a holiday.  

A town manager I know presented the cost of giving an extra day off to employees.  With spreadsheets and query programs, you can figure out exactly how much it costs in wages and benefits to give employees an extra holiday.  Even with the cost most nonprofit and government employers no longer bother to force their non-exempt employees to do without pay if they are sick the day after a holiday.  They bite the bullet and eat the cost.  

Others have opted for Paid Time Off (PTO) combining sick, vacation, bereavement, other leaves, and sometime holidays.  Rolling in holidays allows employees to choose what holidays are important.  (Employees with children in school may want Columbus Day off when their kids are off but others don’t care.)  PTO avoids a managerial problem of having to actually supervise employees and a bureaucratic problem of ensuring employees are using their sick time for sickness or family sickness.  The downside is that when an employee leaves they are owed for time unused whereas when leaves are separate, employees are only owed only for vacation time.  (Of course, some employers also pay out unused sick time but that isn’t required.)

Employers justify giving, say, the day after Thanksgiving or the day before Christmas assuming that very little work is actually done.  I think they are right.  Except those working in healthcare, nonprofit and government employees are very lucky to have these extra days.  

Is this a good enough reason, low productivity, or are we opting out of managing employee expectations, managing employee sick time at the expense of taxpayers, members, clients?  What do you think?  By the way, my employer, a hospital, did pay me without requiring a doctor’s note.  The town council approved a day off after Thanksgiving.

If you would like a review of your policies for compatibility with your mission and with your finances, please contact us at

Management.Vision http://management.vision/

Comparing Presidential Leadership to Nonprofit Leadership

Is it Image, Issues or Ideology that Makes a Great Leader?

We are past the half way mark in the primaries/caucuses for both parties.  Perhaps we can compare our nonprofit leaders with how voters think about political candidates, our political leaders. Mid-century political scientists developed a formula to predict the vote based upon three factors: how voters evaluated a candidate's image, issue positions, and the voter’s political party or party identification. 

Warren Bennis, Leadership author

The formula doesn't work as well in the 21st century since more of us identify as Independents, but it's a good exercise in looking at leadership from different perspectives.  Leadership and management theorists have had an equally tough time figuring out how to assess a great leader.  Right now management literature emphasizes leadership style. 

Let's take a look at the formula and apply it to our nonprofit managers.  When we think of candidate image we often think about whether he or she is charismatic, inspiring, likable, trustworthy. Those are characteristics we might ascribe to the president or director of our nonprofit, too. Nowadays, we seem to focus on the negative characteristics but for the exercise think about the positives.

The second part of the formula is issues. We vote for the candidate who takes issue positions we favor.  In politics we often split issues down to the economy and foreign policy. It's not that you and I have to know the details of a candidate's immigration policy, position on more or fewer troops in Syria, or position on job creation.  It's whether we agree or disagree in general with the most prominent policies being discussed by the candidates. Applying it to the nonprofit executive, the focus he takes on the budget and fund raising or the kids, the members, the day-to-day operations of the nonprofit meshes with what you value. Ignore some of those minor disappointments or disagreements for the purpose of this exercise.

The third part of the formula is party identification, your ideology.  You might know whether your president or director is a Republican, Democrat, or Independent and you might agree or disagree.  This third part, translates better as her vision, a belief in the mission and vision of the nonprofit.  The director walks the talk. She seeks input. Or she emphasizes the need to run the organization like a business with standardized policies and places less emphasis on the actual mission.  The organization is well managed and not chaotic and that is what is important in her vision.  If you share a similar ideology, you’re more likely to think of the exec as a leader.  

Put the three parts of the formula together.  Think of your boss. What characteristics do you like/dislike, her image? What goals or policies are in the strategic plan that you like or don't like, the issues?  What is her belief in the mission and vision, her ideology?  In this formula, you’ll consider her a great leader if the image she portrays, the issues she prioritizes, and her ideology match what’s important to you. Now would you vote for her if you had a chance?  Is there something missing from the formula? 

For a great author on leadership, see the works of Warren Bennis. Two of my favorites are On Leadership and Why Leaders can't Lead

See how the candidates size  up on the issues