Quick viewing(Text Mode)

Identifying Enablers of Nonprofit High Performance

Identifying Enablers of Nonprofit High Performance

Executive Issues in Nonprofits 2005/2006 Identifying Enablers of Nonprofit High Performance

Dear Reader

On behalf of Accenture and the members of our Today, with the backdrop of 2005 and the research advisory group, I invite you to review unprecedented pressures placed on the sector our first-ever Executive Issues in Nonprofits by such catastrophic events as these hurricanes report. Conceived in early 2005, this inaugural among others, we find it more important than study explores today's agenda for US-based ever to discuss the challenges, barriers and new nonprofit leaders, whom we rely upon to deliver opportunities facing nonprofit . There indispensable services across our country. Beyond is much to be learned during and after times of presenting a "state of affairs" for nonprofits, crisis. The issue of capacity, or the readiness of we hope this effort will serve to stimulate a well-intentioned nonprofits to fully deliver on working dialogue among all those interested in their missions, is never more apparent than when the health and effectiveness of the nonprofit they confront the unexpected. sector in the . As noted earlier, we believe the results of this Through this research, we wanted to identify study can help start a dialogue. One we hope insights that could help leaders deliver more will raise the issues of sustainability and efficacy effective outcomes in today's nonprofit in the nonprofit world to the same level of environment. We also hoped to identify ways importance that they have in corporate America. for American to better help agencies We believe the findings of this survey provide a across the nonprofit sector achieve higher tool to help discover what leaders, civic performance. To answer these questions, we leaders and others need to do to make sure that surveyed more than 200 nonprofit leaders across nonprofits, regardless of their chosen mission, the country, including the viewpoints of both are better prepared to deal with the unexpected executive directors of nonprofit organizations and how the corporate community can best help and corporate representatives on their boards. them build capacity. Just as we were completing our survey fieldwork, Read on and let the dialogue begin. the US and the nonprofit sector were struck with the enormous natural disaster in the Gulf Region caused by Hurricanes Katrina and Rita, and their aftermath, which quickly spread across many states. Overnight, a spotlight was placed Paul Hasenwinkel on charitable agencies—both in the Gulf Coast Senior Director area and in regions that took in hundreds and thousands of evacuees. The need for trained staff, volunteers, supplies and facilities multiplied quickly. Each agency bore the brunt of those added demands, while simultaneously needing to remain sensitive to its "normal," day-to-day services and priorities. Paul Hasenwinkel is Accenture’s Senior Director of Marketing & Communications in the United States. In this role, he oversees Accenture's marketing, employee communications and civic and community relations in more than 30 locations in the US.

1 Overview

Nonprofit organizations are a vital and growing part of every community in the United States. Whether they are feeding the hungry in the inner city, helping children develop valuable skills for the working world, providing for those in need or entertaining audiences with cultural programs of the highest order, nonprofits enrich the lives of those they serve and make our communities stronger.

Yet, nonprofits face difficult times. nonprofits face increasingly are • Making better use of information Myriad challenges—including increased driving organizations into survival technology competition for donors' money and mode, scrambling to secure ever-more • Engaging board members to develop attention, reduced government funding funding so that they can continue to proper structures and several high-profile financial deliver services and programs. At • Collaborating more deeply with scandals—have ratcheted up the the same time, we found that as each other and with pressure on nonprofits to both find nonprofits maintain an intense focus new sources of income and more on , most organizations • More effectively managing volunteers effectively use the money they do have. represented in our survey appear to Throughout this report, we explore be overlooking many opportunities Within this context, Accenture recently our findings and recommendations to make their own operations more surveyed more than 200 nonprofit in greater detail. We trust these effective and efficient and to achieve executive directors and board members insights will help nonprofit leaders higher levels of performance. to get their thoughts on these and and for-profit executives identify how other critical issues. This report In addition to highlighting the most their organizations can collaboratively outlines the findings of this effort. and least important executive issues, build sustainable operations that we provide guidance on specific actions enable nonprofits to carry out their Drawing on survey responses and organizations can take to enhance important missions today and beyond. insights from Accenture experts and their operations. These include: nonprofit executives, we shed light on the organizational issues that are of • Convincing donors to fund most concern to nonprofit leaders (as infrastructure instead of signature well as important issues they may not programs be considering). At a high level, our • Implementing appropriate metrics research found that the challenges to evaluate the impact and outcome of services

2 About this Study

Accenture commissioned this US study Respondents were asked to select As you will see from the study, there of 232 senior executives involved in their top 10 current issues as well as is increasing evidence that the for- nonprofit organizations in the United potential future issues out of 43 issues profit and nonprofit sectors have much States in an effort to help nonprofits that spanned seven category areas: to learn from one another as they identify and address key barriers to • Donor Relations and Development tackle many of the same challenges and accelerators for achieving high around operations, governance and • Services performance in the nonprofit sector. sustainability. • Supplier and Asset Management This study offers unique insights in This summary reports the highlights of • Nonprofit Sector Structure and that it is one of the few to poll senior- our findings. A full copy of the report Relationships level executives on both the nonprofit with detailed appendices, including and for-profit sides: executive • Human Resource Management top issues broken out by current vs. directors of nonprofit organizations • Board Relations and Governance future, by board member vs. executive and for-profit executives serving on • Information Technology director, by US region, by category, nonprofit boards. Management by type and more can be downloaded at Participants were also asked to respond www.accenture.com/community. to a few open-ended questions related to governance and capacity building For more information or to request within the sector. printed copies of this report, contact Accenture at +1 312 737 8290 and mention reference code “nonprofit executive issues 2005/2006.”

3 Identifying enablers of nonprofit high performance Nonprofit organizations • Despite the country's historic love (see sidebar, "Building Capacity in for and support of the arts, arts and Nonprofits: What It Is and How the and their supporters have cultural organizations of all types Private Sector Can Help"). numerous opportunities struggle to remain afloat and deliver to improve the ways they high-quality programming to their audiences. A 2005 Wall Street Journal Nonprofit organizations work together column succinctly summed up the need more innovative challenges arts organizations face: The relationship between nonprofit approaches to how they organizations and their supporters is "Noncommercial culture producers— in need of a fundamental restructuring symphony orchestras, , operate if nonprofits are to continue their work theater, opera and dance companies— What is different now? Why is the and effectively carry out their missions. are suffering from a persistent low- need for change so intense? There is While there are exceptions, the grade flu in the form of eroding no single reason. Rather, a confluence prevailing method in which individuals audiences, sharply rising expenses of both internal and external factors and corporations and foundations and increased competition that has made it more challenging than have demonstrated their support of may mask more serious structural ever for nonprofits to efficiently and nonprofits is currency-based: making problems. It may be time to wonder: effectively carry out their missions regular to organizations. Has the nonprofit for the arts outlived its usefulness?"2 and alleviate the problems they were formed to address. Indeed, the size and scale of the • Although there is an abundance of nonprofit segment is testament to the organizations around the country The major external factors are relatively of our country's people and that provide job-training services, well known and documented. These businesses. There currently are two millions of people in America remain include: million nonprofits in the United States, unemployed or underemployed • Reduction in government funding, comprising an $800 billion industry because they lack the skills to employing 11 million people. And the which has left organizations secure new types of jobs in growing scrambling to find new sources of sector continues to grow, with an industries. average of 119 new nonprofits created income to avoid having to trim in the United States every day.1 Recognizing these challenges, Accenture programs and staff. embarked on a research effort to help • Transfer of responsibility from Yet, despite the amount of money raised nonprofits address the significant issues government to nonprofits for the by the sector annually, US nonprofit they face and achieve high performance. care for many people—creating a one- organizations overall find it increasingly We surveyed 232 executives—half of two punch of added responsibilities difficult to make a difference. Here are whom are executive directors of and decreased funds. just a few examples: nonprofit organizations and half of • Economic doldrums, which has • There are 1,000 "soup kitchens" and whom are for-profit executives serving resulted in corporate and individual pantries in the city of New York on nonprofit boards of directors—on donor belt-tightening. alone, yet hunger among the poor their top concerns and areas of • Shifting patterns in Americans' remains a major problem in that emphasis. In doing so, we've been able leisure time and tastes, which have city and across the country. to highlight a number of ways, above siphoned audiences away from • Quality affordable housing is an and beyond traditional donations, in traditional arts and cultural pursuits. intense need in many areas of the which the private sector can help United States, yet organizations nonprofits succeed. Internal factors, as well, have contributed to the challenges nonprofits such as Habitat for Humanity— In particular, the data generated face: which has posted an admirable by this survey has helped Accenture track record—have barely scratched pinpoint ways in which corporate • Lack of proper governance resulting the surface in building the number America and the nonprofit sector can in abuses in some organizations has of affordable homes needed. more closely align, collaborate and damaged the image and reputation engage to create a more effective of the nonprofit sector overall. nonprofit structure in the United States

5 Perhaps the most significant factor affecting nonprofits is the one whose impact is most difficult to quantify: the relationship between and individuals now in their 20s and 30s.

• Low pay, rising health care costs book, Begging for Change, Robert Egger Fundraising—and survival— and a reputation as "charities" discovered that this new generation of instead of businesslike organizations givers has a radically different view of have become top-of-mind have strained nonprofits' ability to philanthropy than the Baby Boomers issues attract and retain quality employees. who preceded them. While Boomers The aforementioned challenges express their support of causes through • Inability or unwillingness to promote increasingly are driving nonprofits into monetary donations, Generations X the impact and outcomes of their survival mode, scrambling to secure and Y believe philanthropy should be work instead of "tugging at the ever-more funding so that they can intertwined with their business and heartstrings" have made it difficult continue to deliver services and social lives. Thus, these individuals are for nonprofits to connect with programs. Accenture’s survey shows more inclined to contribute expertise donors and the public on a more an overwhelming percentage of and hours to organizations than simply substantive level. nonprofits in the United States are write a check—and, therefore, they • Lack of a shared vision or collective most focused on issues concerning expect to engage with nonprofits in voice among nonprofits has resulted donors and fundraising. In fact, as substantially different ways than their in a serious duplication of effort illustrated in Figure 1, three of the top predecessors. This different perspective that wastes resources and dilutes five issues for survey participants are offers myriad potential long-term the programs' impact. related to generating income. benefits for nonprofits—especially in Perhaps the most significant factor the area of capacity building. But in • Expanding the current donor base affecting nonprofits is the one whose the short term, its potential to cause a was the top issue for nonprofits, impact is most difficult to quantify: serious cash crunch in many nonprofit cited by 77 percent of all survey the relationship between philanthropy sectors remains high. respondents. There was a greater and individuals now in their 20s and consensus among board member 30s. In conducting research for his participants than executive directors:

6 Figure 1: Top Five Current Issues for Nonprofits

% naming as top issue Rank

77% 1 Expanding the current donor base 71% 1 83% 1

61% 2 Recruiting high-impact board members 57% 2 65% 2

40% 3 Increasing donations from current donors 40% 3 40% 5

37% 4 Attracting and retaining skilled staff 40% 4

33% 5 Increasing donor loyalty and retention 45% 3

Pursuing collaborative partnerships with public sector agencies, including government 43% 4

Cultivating a dynamic and effective 39% culture among board members 5

Overall Executive Directors Board Members

7 83 percent of the former and 71 with public sector groups or the private • Evaluating programs and services percent of the latter named expanding sector, and just eight percent said against key performance measures the donor base as a top issue. pursuing a merger with overlapping (19 percent) • Increasing donations from current services or agencies was a major • Maintaining a clear focus on the donors also finished high in the concern. Even more surprising was mission to avoid redundant/ survey. The issue was third on the the nearly unanimous dismissal of duplicative services (15 percent) outsourcing, cited by just four percent list, named by 40 percent of all • Leveraging capital assets more as a top issue. survey participants (equally by board effectively to improve services members and executive directors) Information technology. Using IT delivery (14 percent) as a top issue. to reduce costs and improve value, • Reducing the time taken to • Furthermore, increasing donor and accessing and applying new introduce new programs or services loyalty and retention was named by technologies, were cited by just 31 (nine percent) one-third of all respondents, which percent and 22 percent, respectively, • Improving the relationship with placed it fifth on the top issues list. of all respondents. suppliers to enhance services For board members, donor loyalty Marketing. Despite the strong delivery (four percent) is an especially crucial concern, as emphasis on donor relations, only this issue finished third on board Workforce/human resources. With 26 percent said applying marketing/ members' list (named by 45 percent people being critical to an organizations' communications techniques to donor of respondents) but failed to make ability to carry out their missions, it is contact activities was a top issue. the executive directors' top 10. quite surprising that human resources Even fewer—15 percent—were strongly and workforce-related issues were A fourth issue deemed considerably interested in measuring the real benefit seen by so few survey respondents as important—and one that likely is tightly of their development and marketing top issues. This is true regardless of tied to fundraising—is recruiting high- investments. whether the workforce in question impact board members. Just over 60 Organizational performance. was paid staff or volunteers. percent of all respondents (57 percent Establishing a better model for of executive directors and 65 percent For instance, only 37 percent of all measuring and reporting outcomes, of board members) named this a top respondents cited attracting and and devising a consistent approach for concern, which was good enough to retaining skilled staff, and just 26 measuring organizational performance place it second on the overall issues list. percent named attracting and retaining and impact, were cited as top concerns skilled volunteers, as top issues. Even by just 17 percent and 13 percent, fewer respondents deemed improving Myriad operational issues respectively. workforce performance, providing appear to be overlooked Service creation and delivery. ongoing training and skill-building, Although the "bread and butter" of reducing workforce-related costs or However, as they maintain an intense nonprofits are the services they deliver, focusing performance-improvement focus on fundraising, most organizations few survey participants indicated that efforts on employees most responsible represented in our survey appear to evaluating the effectiveness of those for services delivery as top priorities. be overlooking many opportunities services and improving the ways in Similarly, ensuring that the senior to improve their own operations and which services are delivered are ranks of the organization are effective more effectively leverage the funding particularly high priorities—as noted by and fully staffed is not high on survey they have. This is reflected in the low the percentages of respondents citing participants' priority lists. Only one- percentages of survey participants the following as top issues: quarter of respondents named adopting citing as top concerns the principal • Establishing a clear set of benchmarks a leadership transition or succession issues related to organizations' key for assessing services delivery plan, and just 15 percent noted operational areas (Figure 2). (32 percent) changing leadership and management Operating model. Only one-third of • Developing or shaping new services behaviors to align with new priorities, respondents indicated a strong focus to increase program capacity as major issues. on pursuing collaborative partnerships (25 percent)

8 Figure 2: Current Issues—Beyond the Top Five

% naming % naming as top issue as top issue Cultivating a dynamic and effective Changing organizational culture and culture among board members 32% employee and volunteer attitudes 16% Establishing a clear set of quality Providing ongoing training and benchmarks for assessing services delivered 32% skill-building 16% Using IT to reduce costs and create value 31% Measuring the real benefit of development and marketing investments 15% Pursuing collaborative partnerships with public sector agencies, including Changing leadership and management government 31% behaviors to align with new priorities 15% Pursuing collaborative partnerships Maintaining a clear focus on mission with the private sector 31% to avoid program redundancies or duplication of services 15% Applying marketing/communication techniques to donor contact activities 26% Leveraging capital and assets more effectively to improve service delivery 14% Attracting and retaining skilled volunteers 26% Increasing collaboration among key Developing or shaping new services employee groups/departments 13% to increase program capacity 25% Devising consistent approach for measuring Managing intensified pressure to reduce organizational performance and impact 13% costs while increasing capacity 25% Reducing workforce-related costs 12% Adopting a leadership transition and succession plan 25% Managing risk 11% Accessing and applying new technologies 22% Reducing the time taken to introduce new programs and services 9% Increasing undesignated funding for operations 22% Managing intensified pressure to improve quality 8% Stressing service innovations to stay ahead of client/beneficiary need 21% Focusing performance improvement efforts on those employees most Evaluating programs/services against responsible for service delivery 8% key performance measures 19% Pursuing mergers with overlapping Managing grant proposals and grant services/agencies 8% reporting 18% Justifying technology investments 6% Evaluating or pursuing funding through nontraditional models, such as earned Ensuring compliance with federal and income or social entrepreneurism 18% state tax requirements 5% Establishing a better model for Reducing donor acquisition costs 4% measuring and reporting outcomes 17% Improving relationships with suppliers Improving workforce performance 16% to enhance service delivery 4% Strengthening organizational governance Outsourcing one or more core or and oversight 16% non-core components of your agency 4%

9 “In the service business—which is what the nonprofit sector is—it's all about people. If you have the right people, you'll deliver the programs. If you don't, you won't.”

10 Finally, organizational and cultural To that end, we believe there are six the right people, you'll deliver the issues tended to be overlooked by a actions that nonprofits can take to programs. If you don't, you won't. large percentage of survey participants. improve their operations and address And in the service business, like any Only 32 percent of survey respondents the internal and external challenges other, technology makes people more were focused on cultivating a dynamic they face. effective." Thus, he said, it's in and effective culture among board • Convince donors to fund corporations' and individuals' best members, and just 16 percent were infrastructure instead of signature interests for nonprofits to have a strongly interested in changing the programs healthy infrastructure. organization culture and employee • Implement appropriate metrics to and volunteer attitudes. evaluate the impact and outcome 2. Implement appropriate These results on overlooked issues are of services metrics that enable organizations even more interesting when viewed in • Make better use of information to evaluate the success and comparison with the top issues among technology impact of their delivery of corporate executives. In a similar top- • Engage board members to develop issues survey that Accenture conducted services and programs. proper governance structures in 2005 with executives at leading Although there is certainly a clear companies, respondents considered • Collaborate more deeply with each distinction between for-profit companies workforce, human resources and other and with corporations and nonprofits, the latter still must cultural issues much more important. • More effectively manage volunteers have a measure of rigor and discipline in how they deliver their services and In this survey, nearly one fourth of the ways in which they measure and respondents cited “changing leadership 1. Convince corporate and evaluate the impact of those services. and management behaviors” as a top private-sector donors to fund That is why it was so surprising to see issue and 28 percent listed “improving operations instead of "signature" that none of the services delivery- workforce performance,” making it related issues in our survey was named the seventh-most important issue. or "vanity" programs that may by more than one-third of participants Furthermore, attracting and retaining advance the donor's agenda but as a top issue. skilled staff and changing organizational do little to help the organization's culture and employee attitudes were day-to-day financial viability. The issue of measurement is a major the top two issues among all corporate challenge for many nonprofits, When asked to choose their top 10 executives participating. regardless of sector. According to issues, just 22 percent of survey Robert Egger, founder and president respondents cited increasing of the DC Central Kitchen and author undesignated funding for operations Nonprofits must embrace of Begging for Change, most nonprofits as one of them. To be successful, either don't have any measures in basic business practices nonprofits must be more aggressive place or have metrics that are relatively and adept at communicating to donors and tools to shift their meaningless. the value of undesignated and focus from survival to demonstrate how such gifts can have "Here's an example: food banks," said sustainability an even greater impact on the Egger. "Their traditional barometer for organization's ability to carry out its impact is based on volume—'We move In Accenture's view, nonprofits must mission than defined programs. 50 million pounds of food and serve seize these opportunities to embrace 800 agencies.' That's great, but how basic business practices and tools that According to David Chernow, CEO of does that food help the people who can help them use their money more Junior Achievement Worldwide, this are served get to the point where they effectively, ensure the sustainability is a critical issue for all nonprofits. no longer need such services?” of the organization and make a bigger "Infrastructure is key to the impact on the communities and people sustainability of any organization," "It's the same with the they serve—recognizing the confines he said. "In the service business— community," he added. "Just because of nonprofits' funding and the aspects which is what the nonprofit sector you raise or give away lots of money that are unique to the nonprofit sector. is—it's all about people. If you have does not mean that things are changing.

11 Building Capacity in Nonprofits: What It Is and How the Private Sector Can Help

Capacity building is critical to Figure A: Defining capacity building for nonprofits nonprofits' ability to carry out their missions. Yet among our survey 14% participants, there was little consensus Developing the skills of our staff and 14% on exactly what "capacity building" attracting new staff means (Figure A). 15%

The largest group of respondents 14% Offer/develop new programs and (executive directors at 15 percent) 13% services defined capacity building in human 15% resource terms: developing the skills of their people and attracting new staff. 11% The next-largest group (14 percent) Increase the donor base 15% saw capacity building in terms of what 8% their organizations provide: offering or developing new programs or services. 10% Increase the number of people The third-largest segment (11 percent) 15% impacted by our programs described capacity building in terms of 6% supporters: increasing the donor base. And the fourth-largest segment (10 Overall Board Members Executive Directors percent) viewed capacity building by clientele: increasing the number of people impacted by their programs.

Interestingly, a number of respondents expressed unfamiliarity with the term. Figure B: How the private sector can help build capacity Perhaps the lack of consensus on a in nonprofits definition can be traced to the fact that the term is new among nonprofits 44% and is not widely used. Share training, management experience 43% and employee expertise However, while overall respondents 46% differed in their opinions on what capacity building is, there was a bit 31% Encourage employee volunteerism, 37% more agreement on how corporate promote culture of America and the private sector could 26% help build capacity in nonprofits (Figure B). 11% Strategic partnerships/sponsorships 13% Nearly half (44 percent) of respondents 9% said the private sector should share training, management experience and employee expertise. Overall Board Members Executive Directors

12 Said one board member of a $10 million • "CEOs need to set expectations that Still another respondent, this one a education nonprofit: "We have their executives volunteer in the board member of a human services enthusiastic, diligent workers, but we not-for-profit sector as a way of organization, said the focus would be don't have the means to teach them giving back," noted a board member on salaries. "I would figure out how computer skills, management of an $8 million human services to address the huge gap [in] pay and techniques, lean practices, etc. If the nonprofit. "Their skills can successfully compensation packages between private sector could set aside some augment where there are gaps in private and public sectors," this person room for a nonprofit worker each the nonprofit arena." said. "The same jobs pay a minimum time they had a training program or of $11,000 more in the private sector. • "Educate corporate managers about a project, both of us would benefit." We cannot compete to attract and board service and strongly encourage retain the best staff." According to another board member employee participation in the at a $10 million human services nonprofit sector as board members The input received on what survey organization, "Corporate America or volunteer consultants in their participants wanted from the private should identify subject areas of special areas of expertise or knowledge," sector and how they would apply interest to them where they can reported the executive director of those resources speaks to the fact provide expertise or similar non-cash a $1 million human services that nonprofits clearly recognize their assistance (space, management organization. limitations on the staffing front. In internships, pro bono leaves, etc.) and essence, these responses are a plea to The preceding input is very consistent forge closer relationships with those corporate America for more and better with the top response to another organizations. It would be good for skilled people to work on their behalf. question asked about capacity building, their own PR and employee morale." This is quite interesting in light of which was, "If you had the resources the fact that most of the HR-related And, for the board member of a you could apply to building capacity, issues discussed earlier were not seen $3 million education institution, "We what would be your organization's as especially critical by a large majority need insights on how to use technology number-one priority?" The largest of survey respondents, when weighed to be more efficient and to make percentage of participants—one-third— against the myriad other issues they wholesale changes in operations using said they would focus these additional confront each day. technology rather than just marginal resources on staff training, hiring, or incremental improvements with development and improvement. slightly faster or newer PCs." "One thing that would help our The next-largest group (approximately organization tremendously would be one-third) of respondents felt that to hire a full or part-time grant companies could best boost nonprofits' writer or fund raiser," noted the chief capacity by encouraging employees executive of a $600,000 education to volunteer and promoting a "culture nonprofit. "Existing staff is so busy of volunteering" in the workplace. providing client services, there is little Representative of the sentiment of time left to identify and pursue this group are the following comments: funding opportunities."

• "Top management of corporate Echoing those comments is a board America must recognize its member of a $4 million cultural responsibility to assist the nonprofit institution, who said, "Good sector in meeting the needs of the management. Our organization needs communities in which the people in senior positions who are corporations are located and also committed to taking the initiative to in the areas in which their customers make things happen and are willing and workforce live," said a board to 'own' it and it down through member of a $1.5 million arts the organization." organization.

13 What direct service organizations— said David Chernow. "Our goal is not 3. Make better use of technology. and, in fact, all groups—need is the just to reach more kids, but to positively courage to use new metrics, particularly impact the kids we reach." Few survey participants indicated ones that help show the public how that capitalizing on the benefits of Yet demonstrating improved knowledge, the organizations are decreasing the information technology was a major attitude and behavior is not sufficient. need for their programs in the future issue for them. Yet, IT is the backbone Chernow said that Junior Achievement's through what they are doing today." of the modern enterprise, and nonprofits donors expect the organization to seeking to maximize the use of their But that's not to say that the nonprofit show quantifiable results—and those scarce resources must judiciously world is void of good metrics. In the case results typically vary from donor to apply IT to their operations—whether of Junior Achievement, measurement is donor. "Our corporate donors want to it is in support of fundraising, donor one of the keys to the organization's know that kids going through our relations, finance and administration existence. Junior Achievement expends programs are workforce-ready, so for or supply chain management. considerable time and money to ensure them, a metric such as the number of One organization that has capitalized that the organization can accurately JA kids getting jobs is critical," Chernow on technology to boost its identify the impact its efforts have on noted. "But for educators, they're stream is Heifer International, a the children it serves. The organization more concerned about how many JA that helps conducts longitudinal studies that kids complete high school versus their people become self-reliant through actually track the progress of children non-JA peers. The key is that we have gifts of animals and training. Taking who have participated in its programs to work with our constituents to its cue from various retailers that have as they progress through the years. determine metrics that are meaningful to them." successfully expanded their reach and "We know every kid who takes a sales through the Internet, Heifer program, and these longitudinal studies embarked on an ambitious approach help us understand their advancement to online fundraising. The organization in knowledge, attitude and behavior," developed a Web-based product catalog,

14 By the end of 2005, Aidmatrix had helped relief agencies touch the lives of more than 50 million people globally—something that would not have been possible without its new supply chain technology solutions. online Honor Cards that donors could system that matches and distributes database—thus speeding the customize and easy-to-use online surplus food, clothing, medical identification and delivery of available capabilities. By using Internet supplies and other materials to relief aid items to where they are needed. technology innovatively—and integrating organizations around the world. By the end of 2005, Aidmatrix had their new online presence with their These phases were designed to help helped relief agencies touch the lives traditional direct-mail and other land- nonprofits achieve high performance: based fundraising activities—Heifer of more than 50 million people globally • In the first phase of the project, and is saving a projected 100 million raised $6 million in one quarter. The Aidmatrix built upon its existing organization continues to refine its pounds of food annually—something Web-based system for facilitating that would not have been possible site and experiment with new Web- food distribution in Texas by adding based programs.3 without its new supply chain technology a supply chain solution from SAP solutions. The experience of Aidmatrix is that enables relief organizations different from that of Heifer, but it around the world to more efficiently Also using technology to boost its also illustrates how nonprofits can match food supplies with need. capacity to respond to disasters is generate substantial benefits from • In the second phase, a basic medical the Texas Health and Human Services the judicial use of technology. In supply chain solution was built, using Commission (HHSC). While not a fact, Aidmatrix is the first nonprofit the food relief system as a template, nonprofit organization, Texas HHSC’s committed to developing supply chain to facilitate the collection and experience demonstrates how critical management solutions to increase donation of surplus medical products modern technologies are to ensuring efficiency and reduce waste in the to leading medical relief agencies. organizational readiness. In the wake delivery of items. of Hurricane Katrina, Texas HHSC found • In the final phase, wireless devices In 2004, Aidmatrix teamed up with its existing systems challenged by the were developed to provide on-the- Accenture and a number of technology- need to process thousands of evacuees scene disaster teams with real-time, solution providers to build in three from Louisiana and Mississippi at remote access to Aidmatrix's donor phases a sophisticated Web-based evacuee shelters. The agency, teaming

15 with Accenture on a pro bono basis, that can shake donors' and the general challenges when a collaboration or created a new processing system that public's confidence in nonprofits. Such combination is considered. However, in enabled the agency to respond to steps will reassure donors that the an environment where all organizations evacuees’ needs. organizations are good stewards of their are pressured to do more with less, money and foster greater trust in the joint activities, sharing of resources State and private-sector developers organizations among their constituents and even full-fledged mergers must be began working virtually around the and the public and communities at higher on nonprofit executives' agendas. clock to create a Web-based system large. that would allow HHSC workers to In exploring collaboration, organizations complete and process an application Furthermore, it is critical for could consider three basic models: for assistance with nothing more than organizations to define the roles and federation, shared services and merger. a laptop computer and an Internet responsibilities of board members very In the federation model, nonprofits connection. By Labor Day, the state succinctly to ensure that the board is meet and work together or with public was testing the new rapid application as productive and effective as possible, or private-sector organizations— system, and it was deployed in shelters and for the board to help keep the whether physically or online—to share and disaster recovery centers across organization's focus on long-term ideas and knowledge and to increase the state just two days later. sustainability and not short-term their clout. In such arrangements, all survival. At minimum, nonprofits must organizations maintain their own “This new system allows us to process ensure that their board members are operations and identities, but often a case—from initial interview to the highly capable of providing strategic devise joint go-to-market or lobbying approval of assistance—within 30 guidance and advice to the organization, strategies that benefit from a minutes,” said Texas Health and Human and generating money or volunteers collective voice. Services Executive Commissioner (or both). Albert Hawkins. “It also provides us There are several examples of strong with a way to quickly set up offices "The board is the key," said David federation models that are benefiting in shelters so that the process is more Chernow of Junior Achievement. "It participating organizations. One is convenient for families seeking help.” directs the vision and strategy and KitchensINC, an online resource center supports and endorses it. If it's not in that enables community-based kitchens keeping with the overall organizational 4. Engage board members to around the country to swap ideas, goals, you don't have long-term ensure that quality governance advice and war stories. The KitchensINC sustainability. We all may espouse website lists the names of and contacts structures are in place that the mission and purpose, but if you're for community, campus and other not only minimize the risk of not acting it out, day in and day out, school kitchen-related organizations, malfeasance and abuse, but also you're not doing the organization and provides forums for kitchen staff any good." help the organization create an to discuss best practices in areas effective and efficient operation ranging from obtaining articles of that can be sustained over time. 5. Explore and adopt new incorporation for a kitchen operation collaborative business models and funding a new facility, to As recent history has proven, nonprofits with complementary purchasing , choosing a board are not immune to malfeasance and of directors and planning and executing abuses. But such incidents can be organizations. revenue-generating projects. potentially more damaging to Throughout the nonprofit sector, there nonprofits, as they generally are held is a tremendous duplication of effort Business/Corporate Volunteer Councils, to a higher ethical standard than that squanders precious resources. Yet teaming with local volunteer centers corporations. Participants in our survey only one-third of survey participants and nonprofit organizations, represent clearly understand this (see sidebar, considered pursuing collaborative another example of collaboration—this "Effective Governance: Restoring Trust relationships with other nonprofits a one focusing on helping nonprofits in Nonprofits"), and we agree with their major priority, and just eight percent build capacity through volunteers. call for greater controls, transparency cited pursuing a merger with an Metro Atlanta Corporate Volunteer and accountability to help prevent organization with overlapping services Council (MACVC), Greater DC Business transgressions and significant missteps a top concern. Certainly, there are Volunteerism Council (GDCBVC), and

16 Effective Governance: Building Trust in Nonprofits

With nonprofit governance in the Figure C: Actions to take to improve perceptions of governance spotlight today, we solicited survey participants' views on the most 18% important thing that should be done Stronger, independent, more to improve public perceptions of accountable boards 18% governance. From an overall perspective, 17% there was not much difference in the 17% strength of support for three main Transparency of the budget, actions: creating and implementing transactions and the agenda 23% stronger internal controls and 9% accountability; infusing greater Publicize positive stories about the 16% transparency in nonprofits' budgets good things nonprofits are doing in 8% and transactions; and publicizing the community instead of focusing on 23% positive stories about nonprofits and the negatives their activities. Overall Board Members Executive Directors However, when viewing the responses by type of respondent, it is apparent that board members and executive directors differ in what they think institution. "We need regulated organization. "Not all organizations should be done (Figure C). reporting standards on financial are violating rules and not appropriately operations and governance guidelines overseeing their funding and programs." Board members participating in the so all nonprofits have some minimum survey were more likely than executive Leaders of two other human services level of consistent reporting and directors to advocate the following organizations had similar responses. governance," the respondent noted. types of initiatives: "Increase the public's understanding of "This is difficult since a group must what the nonprofit sector represents," • Stronger, more independent and now use some money to do audits that said one, an executive director. "I do accountable boards take away from using the money for not think there is a good understanding 'good.' But it is probably worth it to • Transparency of budget, transactions of this sector by the general public." have some form of audit as long as it and agenda The other respondent, the chief was not too invasive, since it would • More consistent regulation and executive of the organization, would help ensure public trust and ultimately financial reporting like to see "more media attention on lead to bigger giving to compliant the positive impact of the nonprofits • Results and outcomes measurement organizations." to demonstrate benefits being in America, including the many delivered The remaining responses could be dedicated individuals leading the broadly categorized as public relations organizations." • Ethics training and compliance or communications activities—efforts Finally, the chief executive of a programs that were slightly more likely to be $2 million education nonprofit called • Adherence to Sarbanes-Oxley favored by executive directors than for "more media coverage of nonprofits regulations board members. doing something right and more Typical of the comments from the "Publicize what is working well," coverage of how cheaply so many preceding group is this one from a suggested the executive director of nonprofits operate." board member of an $800,000 religious a $2.5 million human services

17 To do more with less, joint activities, sharing of resources and even mergers must be higher on nonprofit executives' agendas.

Corporate Volunteerism Council—Twin Park Service to the tune of thousands of across the nonprofit spectrum save Cities are examples of such relationships hours of service by youths and seniors money on accounting and information that are having a significant impact in national parks across the country.5 technology. CITC—which provides on local nonprofits' ability to find and social, educational and A step deeper in collaboration is manage volunteers. For instance, services to Alaska Natives and Native the shared services model, in which MACVC publishes a booklet that Americans living in the Cook Inlet nonprofits combine select back-office describes local companies' volunteer region—handles accounting services for functions or facilities to streamline programs and philanthropic areas, more than 40 nonprofit organizations operations while retaining their while the GDCBVC through its Business in the state and information technology individual public-facing identities. Shares Program actively matches services for nine nonprofits. According to businesses with community-based The Human Services Campus, for CITC, by sharing resources, its nonprofit organizations in need of volunteers.4 instance, brings together multiple customers have more resources to agencies involved in serving the needs devote to programs that make an In a unique partnership, the National of the homeless of Maricopa County, impact in the community. At the same Park Foundation teamed with the Arizona. Located in downtown time, these organizations benefit from Environmental Alliance for Senior Phoenix, the Human Services Campus a much higher level of experience and Involvement and the National Park centralizes key services in a single site, qualifications than they could afford if Service to develop and implement the thus allowing more efficient linkages they built accounting and technology Volunteer Senior Ranger Corps. The between service providers and support capabilities themselves.7 corps is designed to both recruit seniors facilitating easier access to services to mentor youth and enable the The ultimate in collaboration is a full- by users.6 intergenerational teams to undertake fledged merger, in which nonprofits joint conservation activities and In Alaska, the Cook Inlet Tribal Council combine all their operations and broaden awareness of natural resources. (CITC) is using the shared services operate as a new single entity. Mergers The corps has benefited the National model to help organizations from typically are exercised among or

18 between organizations with highly to stay relevant. In fact, the explosive series on urban sprawl that combined complementary missions and markets, growth experienced by the web and radio, television, listener/viewer call- and can be an appropriate response cable and satellite television—combined ins and community discussion groups. to fiscal or operating challenges that with the financial realities of operating The two stations also collaborated on would make it difficult for the public broadcasting stations without a television appearance by Ray Suarez, organizations to continue to exist and robust endowments or deep-pocketed host of National Public Radio's Talk of thrive independently of one another institutional parents—forced the two the Nation. in the long term. Of course, as is the stations to come together to ask the The public and each station's board of case with private-sector corporations, revolutionary question: "What would directors responded favorably to these nonprofit mergers can be incredibly we do if we lost our ability to transmit?" early collaborations, further validating difficult to pull off and must be After months of discussions and debate, the wisdom of joining forces. Finally, approached with care and caution. management of WCPN and WVIZ in 2001, the stations' efforts bore fruit Turf issues, cultural differences, concluded that their best chances for in the form of ideastream, an entirely mismatched information systems and success lay in combining forces— new $20 million public service multiple incompatible boards all can conspire merging operations to produce, package media organization. to thwart combinations that, at least and distribute content through a on paper, look like a winner. Importantly, the new organization was mixture of radio, television and the created with a spirit of inclusion and Ideastream in Cleveland is an example Internet. Because the business models commitment: Every employee was of how to do a merger right. As the for delivering multiple media formats given a spot in the new organizational 1990s drew to a close and the Internet were still emerging, WCPN and WVIZ chart and no board members were began to make its presence felt in the began their collaboration with informal lost. As ideastream's chief operating media world, Cleveland's public radio experimentation. They developed one- officer, Kit Jensen, recalled: "We told station WCPN and public television off programs that leveraged both the directors that if you vote for the station WVIZ faced an uphill battle stations' assets, such as a documentary merger you're not allowed to leave.

19 “Nonprofits have to engage volunteers— demonstrate the tangible connection between their activity and the community they want to help.”

20 We all committed to seeing it through." half of them spend less than 30 percent "I think there is sometimes a Furthermore, because an entirely new of their time coordinating volunteers.8 misunderstanding that nonprofits entity was being created, there was can use volunteers effectively without According to Robert Egger of the more pressure to succeed. "We felt investing in infrastructure—namely, DC Central Kitchen, it is vital for that if we killed our prior companies staff capacity to help recruit and organizations to have at least one we could never retreat," said Jensen. manage volunteers and orchestrate person who is dedicated to volunteer "Our goal was to cut all bridges to their work," said Nunn. "Without that management. At the Kitchen—which the past." And, the new organization infrastructure, most nonprofits will collects excess food from around the benefited from its newly combined never have enough staff to scale up Washington metropolitan area and workforce: WVIZ brought a more their volunteer activities. Almost all employs jobless individuals to turn sophisticated membership function nonprofits say that they would use this food into nutritious meals for the while WCPN contributed its top-notch more volunteers if they had more hungry—Egger is fortunate to have programmer, whom Jensen described organizational capacity to manage two full-time volunteer coordinators. as "the best in the business." them." These coordinators are charged with ensuring that volunteers' experiences To help address the issue, Hands On 6. Overcome the inherent are informative and fruitful and Network recently developed a Web- limitations in headcount by communicating the value of volunteers' based software tool that local Hands more effectively organizing and efforts to the Kitchen's work. On Network affiliates—and increasingly, other nonprofits—can use to successfully managing volunteers as an "Nonprofits have to engage volunteers— engage volunteers and project leaders. extension of paid staff. demonstrate the tangible connection Several years in development— between their activity and the Although just 26 percent of survey supported in part by a number of community they want to help," said respondents indicated attracting and corporate sponsors (including Accenture) Egger. "Why does Habitat for Humanity retaining skilled volunteers was a top and individual volunteer technology work so well? Because the results are issue, respondents' need to augment advisors—the tool helps affiliate so tangible—it's obvious what you're their paid staff with "free" labor and organizations more efficiently and doing. A lot of organizations don't skills came through clearly in their effectively track and manage volunteers have that luxury, and so they really discussions about capacity building from a variety of sources and, as Nunn need that volunteer coordinator who (see sidebar, "Building Capacity in put it, be more "high-touch" with can help volunteers understand how Nonprofits: What It Is and How the volunteers to increase their level of valuable their work is and how it will Private Sector Can Help"). To be sure, engagement and satisfaction with the benefit those in need." organizations that can most effectively organization. Importantly, because the recruit, manage and retain a robust Another organization that recognizes tool was built as a collaborative effort volunteer network will be much more the importance of volunteer among corporate supporters, volunteer effective and sustainable over the management is the Hands On Network. advisors and Hands On Network long term. Headed by Michelle Nunn, Hands On affiliate organizations, it was within Yet one of the most significant Network is a leader in the civic financial reach of all the organizations challenges organizations face is a lack engagement movement, working to that would use it. mobilize 6.4 million volunteers during of resources dedicated to managing "Each one of our affiliates had been the next two years to work on projects volunteers. In fact, a study by the developing individual technology designed to have an immediate, Urban Institute found only three out solutions, but none of us really could tangible impact on children and of five charitable organizations have a afford, on our own, the kind of system education, health and wellness and paid staff person that handles volunteer we needed," said Nunn. "But with a the environment. According to Nunn, coordination—and just one in eight pooled set of resources and a good despite the critical importance of have a person who manages volunteers bit of compromise on how business volunteer management, few nonprofits full time. Furthermore, this study found practices would be manifested in the have the necessary resources to do that among these paid coordinators, technology, we were able to create a it well. only one-third have received formal powerful shared resource." training in volunteer management and

21 The Characteristics of a High-Performance Nonprofit by Paul F. Nunes

At first glance, the concept of a high- in numerous government and non- The fourth measure is consistency. performance business may seem irrelevant government agencies, have confirmed Serious sports fans and business investors to nonprofit work. But like for-profit that this is the standard they, too, feel is alike demand consistent performance on enterprises, nonprofits have at their core the right one for their organizations. the field and in the market before they the same goal: They seek to create value will consider a player or an organization for their constituents that far exceeds the So what are the core elements of to be a star. cost of creating that value. The difficulty performance in an organization? The they face in the absence of financial data first is the creation of a valuable, desired And the last measure is longevity. The is determining whether they are achieving outcome. In business we have chosen truly great tend to stay in the game and that goal. profitability, but there are many kinds dominate it for a long time. General of successful outcomes organizations can Electric has been in business since 1878; Accenture has been actively pursuing measure. Nonprofits might seek to deliver Proctor & Gamble since 1837. Jack insight into the nature of high- a reduced incidence of disease, better Nicklaus, one of golf's all-time greats, performance business and has developed a levels of education or a cleaner won the Masters tournament six times robust method for measuring performance environment. These might be measured over three decades, the first in 1963 and and comparing it among peers. We have by the numbers of vaccinations given, the last in 1986. While a number of defined a high-performance business as degrees awarded or conservation acres nonprofits by their nature and charter one that has demonstrated enduring or purchased. Every organization exists to will be short lived, most must consider sustained out-performance of peers over provide something, and this purpose can their lasting place in society and the business and economic cycles and often be measured, as can its unit cost. communities they serve. across generations of leadership, as measured by widely accepted financial The second element is growth. Good A final important consideration is peer metrics. While the method partly focuses products and services, whether they come competitiveness. All performance is on a firm's performance, its core from for-profit or nonprofit organizations, relative, and therefore comparison is a elements are central to the goals of all create more value when they are in the must. For nonprofits, it can be difficult to organizations, both for-profit and nonprofit. hands of more people who can enjoy the know which competitors to compare one's benefits. The most valuable growth for performance against. Yet it is critical to The concentration in our definition on overall performance, Accenture research try, because it is from comparison that sustained outperformance is critical, and uncovered, is heavily organic and the good can become better, and the its importance has been borne out in our relatively constant. It is supported, not better become the best. Many nonprofits research. Many organizations can appear dominated, by mergers and acquisitions. likely have more peers than they recognize to be high performers in the short run— This finding indicates that like for-profits or would like to admit; others may indeed by riding favorable market conditions, for should pursue continuous innovation as be one of a kind. But there is always example, or being fortunate with a single a primary driver of growth and suggests one's self to compete against, and self initiative—only to decline quickly when nonprofits should do likewise to achieve assessment is critical to high performance. conditions turn against them. To be a true their performance goals. high performer, an organization must Why? Because the real challenge of thrive over time and through changing The next element is positioning for the achieving high performance is in being circumstances. Such success requires future. This element recognizes that the best one can possibly be. leadership that consciously manages for immediate performance often has to be today and tomorrow. We believe these sacrificed to ensure long-term performance caveats about performance hold true for and the viability of the organization. It is the best nonprofits as well. a measure not only of how much wood has been cut but also of how sharp the Paul Nunes is an executive research fellow at We recognize that this requirement for saw is. Nonprofits might measure the the Accenture Institute for High Performance sustained superior performance constitutes value of assets, endowments or even brand Business in Wellesley, Massachusetts, where a high standard. But our discussions with value, not unlike for-profit businesses, to he directs and conducts studies of business executives in many industries, as well as position themselves for the future. and marketing strategy.

22 To be a high performer, an organization must thrive over time and through changing circumstances.

23 Conclusion There is no question that these are challenging times for nonprofits.

Despite the large amount of money capacity when its funding streams are donated to organizations every year by at best, holding steady and at worst, government entities, corporations and slowly drying up? individuals, the needs that nonprofits Indeed, if this study has demonstrated fill continue to grow. In many sectors, anything, it is this: That more than needs far outpace organizations' abilities ever, nonprofits rely on corporate and resources, making a continual America for support. And this support focus on increasing revenue streams a can—and must—take the form of an stark reality for board members and increased commitment to transferring executive directors alike. their business expertise and the skills Such actions as improving internal of their people into the nonprofit efficiencies, investing in better sector so these organizations can technologies, implementing relevant adopt the basic business practices that metrics and cultivating a broader and are critical to not only the day-to-day more engaged volunteer network can operation of individual organizations, help. But that is easier said than done. but also the long-term sustainability, "There's a chicken-and-egg situation viability and high performance of the for nonprofits, in which each of these nonprofit sector as a whole. improvements in some sense demands capacity to effectively do it," said Michelle Nunn of Hands On Network. But how does an organization build

25 Acknowledgements

We would like to recognize and thank the individuals below who served on the Advisory Committee for our inaugural study. Their ongoing counsel, critical review and unmatched expertise were invaluable to the direction and development of this groundbreaking research initiative, and their guidance ensured we stayed the course. Additionally, we would like to thank the many executives from the nonprofit organizations and their boards of directors who gave so generously of their time to talk with us and respond to the survey that formed the basis of this report.

Advisory Committee for Executive Issues in Nonprofits 2005/2006

David S. Chernow is the President Robert Egger is the CEO of the Robert Goodwin is the President and and CEO of JA Worldwide, the world's Washington-based DC Central Kitchen CEO of the Points of Light Foundation, largest and fastest-growing nonprofit and the national Campus Kitchens which works with the Volunteer Center organization dedicated to educating Project. These efforts organize resources National Network to engage millions young people about business, economics that exist in every city—surplus food, of people more effectively in volunteer and the free enterprise system. Prior community volunteers, underutilized service and help solve community and to his current role, Mr. Chernow kitchens, men and women seeking social problems across the United served as President and CEO of Junior employment skills—and use them to States. In his previous role as Executive Achievement Inc., overseeing the strengthen bodies, empower minds Vice President and COO, he managed United States. He leads JA Worldwide and build communities. Mr. Egger is the Foundation's mission and operations. into the 21st century by providing and the Chair of the Mayor's Commission Prior to joining the Foundation, he executing the organization's strategic on Nutrition, serves on the Boards of served as Executive Director of the vision to impact more students with the Food Security Leadership Institute US Department of Education's White its kindergarten through grade 12 and Results, and is the co-convener House Initiative on Historically Black programs. He focuses on strategic of the 2006 Nonprofit Congress. His Colleges and Universities. In addition development, worldwide board book on the nonprofit sector, Begging to several honorary doctorates, he engagement and securing resources for Change, was awarded the 2005 holds an undergraduate degree from to meet the ever-increasing demand McAdam Prize as the Nonprofit Book Oral Roberts University, an M.A. in for Junior Achievement nationally and of the Year by the Alliance for philosophy from the San Francisco internationally. Mr. Chernow earned Nonprofit Management. Theological Seminary and also his J.D. at Pepperdine University and completed additional graduate studies his undergraduate degree from UCLA. in social psychology at the University of Tulsa.

26 Stephen Jordan is Vice President and Michelle Nunn is the co-founder and Steve Rochlin is Director of Research Executive Director of the Business Civic CEO of Hands On Network, a growing and Policy Development at The Center Leadership Center (BCLC), a nonprofit network of 55 national and international for Corporate Citizenship at Boston affiliate of the US Chamber of volunteer organizations that brings College. He supervises The Center's Commerce, where he works with a people together to strengthen research program and initiatives; broad spectrum of companies and communities through meaningful leading research initiatives that define American Chambers of Commerce in volunteer action. She was also the world-class performance in corporate the United States and overseas. He founding director of Hands On Atlanta, citizenship. He has served as principal has produced numerous conferences, which helps individuals, families, project manager on numerous strategic policy papers and programs that span corporate and community groups find planning and evaluation projects with corporate citizenship issues. Mr. Jordan flexible volunteer opportunities at The Center's members. Mr. Rochlin has helped launch a number of notable more than 400 service organizations frequently presents on corporate coalitions and the Business Education and schools. Under her leadership, citizenship and is a contributing author Network. Mr. Jordan previously served the organization has grown from a in numerous monographs, journals and as Executive Director of the Association grassroots startup to become one of books. Prior to arriving at The Center, of American Chambers of Commerce the nation's largest community-based he worked extensively in technology- in Latin America. He holds an M.B.A. volunteer organizations. Ms. Nunn based economic development for both from Georgetown University and an graduated Phi Beta Kappa from the the National Academy of Sciences M.A. in political and social thought University of Virginia and has also and the Center for Strategic and from the University of Virginia, with studied at Oxford University and in International Studies. Mr. Rochlin accompanying academic honors from India. She was a Kellogg National holds a B.A. in political science from both institutions. Fellow and earned a Master in Public Brown University and a Master in Administration degree from the John F. Public Policy degree from the John F. Kennedy School of Government at Kennedy School of Government at Harvard University. Harvard University.

27 Research Methodologies

Accenture Research surveyed 232 Sectors included in the study were This summary reports on the highlights nonprofit CEOs/equivalents and NTEE’s 10 broad category classifications of our findings. A full copy of the current board members from public with Human Services representing report with detailed appendices can 501(c)(3) nonprofits representing 44%; Arts, Culture & Humanities, 14%; be downloaded at medium-sized nonprofits with budgets Education, 14%; Health, 9%; Public/ www.accenture.com/community. from $500,000 up to $10,000,000. Societal Benefit, 7% with Environment & Animals, Mutual/Membership Respondents were screened based on Benefit, Religious, International/ nonprofit organization size, US region Foreign Affairs, each representing 3% and NTEE classification. or fewer. The blind survey was conducted Organizations that were excluded without reference to Accenture as include , colleges/universities the sponsor and was fielded in the and foundations. summer/fall of 2005.

Notes

1 The New Ecology of Social Benefit; http://www.serviceleader.org/new/ Katherine Fulton and Andrew Blau, managers/2004/06/000245.php#7. http://www.futureofphilanthropy.org. 5 This program was funded in part 2 "Culture Clash: Has the Business by The UPS Foundation's Volunteer Model for Arts Institutions Outlived Impact Initiative, Its Usefulness?" Douglas McLennan, http://www.community.ups.com/ Wall Street Journal, October 8, 2005, philanthropy/focus/volunteer.html. page P11. 6 More information on this initiative 3 "How One Nonprofit Raised Millions can be found on the Maricopa on the Web," Karmelle Chaise, County, Arizona, website, http://www.techsoup.org/howto/ http://www.maricopa.gov/hscampus/ yourstories/funding/page1484.cfm. about.aspx.

4 These examples were drawn from 7 From the Cook Inlet Tribal Council material produced by website, http://www.ernieturner.org. ServiceLeader.org, a project of the 8 "Volunteer Management Capacity RGK Center for Philanthropy and in America's Charities and Community Service at the Lyndon B. Congregations," The Urban Institute, Johnson School of Public Affairs of 2004, page 5. the University of Texas at Austin,

28

About Accenture Accenture is a global management consulting, technology services and outsourcing company. Committed to delivering innovation, Accenture collaborates with its clients to help them become high-performance businesses and governments. With deep industry and business process expertise, broad global resources and a proven track record, Accenture can mobilize the right people, skills and technologies to help clients improve their performance. With more than 126,000 people in 48 countries, the company generated net of US$15.55 billion for the fiscal year ended Aug. 31, 2005. Its home page is www.accenture.com.

To learn more about Accenture's US Corporate Citizenship initiatives, visit www.accenture.com/community.

Copyright © 2006 Accenture All rights reserved.

Accenture, its logo, and High Performance Delivered are trademarks of Accenture.

Printed on 100% recycled, chlorine-free paper using soy-based ink.

Top View