|
 Rewards
from Nonprofits
RN
Associates met recently with Dr. Janice
Frates, a professor of health care administration at
California State University Long Beach. Thoughts shared
by Dr. Frates could provide direction for a CEO looking
to enter a not-for-profit board, as well as those looking
to differentiate their careers by building a not-for-profit
resume while pursuing a corporate track.
RNA:
The holiday season is a busy and joyful time –
when we give thanks for the goodness in our lives and are
encouraged to make a special effort to help those who are
struggling or less fortunate. Why is this “spirit
of giving” especially important during a recession?
JF:
The current economic downturn has affected almost
everyone, but it has hit many nonprofit organizations doubly
hard. Due to layoffs, home foreclosures and stock price
drops, both individual and corporate donations and philanthropic
organizational support have declined while requests for
help have increased. Many health and social service agencies
report that some of their former donors and volunteers are
now service recipients.
RNA:
Businesses are struggling too these days, and have cut back
or eliminated their corporate giving programs. Is this wise?
JF:
I think everyone understands that we’re going through
tough times and we’re all cutting back on spending.
But I would hope that businesses don’t completely
eliminate their charitable activities, for a couple of reasons:
1. Contributing to the community is good PR, especially
during a recession.
2. Continuing to contribute in tough times sends a message
to the community, and to employees, that the firm is strong
and has confidence its own brighter future.
RNA:
But if revenues and profits are down and the company has
had to reduce its workforce or lower compensation, doesn’t
it also need to scale back on charitable contributions?
JF:
Yes, but there are other ways to contribute that may be
even more valued and valuable in the long run. I’m
talking about gifts of talent and time, by both businesses
and individuals.
 First
of all, nonprofit organizations need business acumen and
expertise. Many nonprofit organizations are very well run
by exceptionally talented executives. Frances Hesselbein
revitalized the Girl Scouts of America during her tenure
as CEO there, and so impressed management guru Peter Drucker
that he recruited her as the founder and first CEO of the
Peter F. Drucker Foundation for Nonprofit Management (now
known as the Leader to Leader Institute). But most nonprofits,
especially smaller ones, could use more expert guidance
and direction from board members with knowledge of finance,
marketing, human resources and other basic management functions.
Walks, runs, toy and food drives can involve all employees
and family members as well.
RNA:
Since time is money, what’s the return on investment
for companies and busy individuals on time and talent contributions
to nonprofit organizations?
JF:
For the company, it’s positive public/community relations
and some opportunities for business-to-business networking.
For individuals, I think the benefits can be broader than
just generally expanding your network of contacts:
• When you are working voluntarily to help an
organization that you wholeheartedly believe in and support,
you will perform at your best because you care about the
cause – and the people who get to know you through
that organization will see you at your enthusiastic, dedicated
best.
• For new grads and early stage careerists,
volunteering in a small organization will often lead to
a leadership role on a particular project (typically a fund-raising
event) and an invitation to serve on the board of directors
in a relatively short time (2-3 years, sometimes less).
Serving on a governing board affords an opportunity for
young people to gain insights about management and leadership
experience that can bolster their resumes.
• For managers looking to move up to C-level
positions, serving on a nonprofit board can be an important
point of differentiation for personal brand enhancement
.
• For senior executives looking for a new retirement
career or anyone considering a career transition, nonprofit
engagement can offer opportunities to develop skills and
gain experience in the new field or function.
•  Volunteering
in a different capacity or in a different type of organization
than where you work allows you to use talents or explore
new fields that aren’t a part of your life now –
the creative arts, the environment, global issues –
there is no shortage of worthy causes!
RNA: As our practice concentrates on senior
executive level talent search and management, could you
elaborate a bit on the benefits of nonprofit board service
for people at this career stage?
JF:
If you can document some impressive fund raising, how you
contributed to a major turnaround of a struggling nonprofit,
or how you helped an organization overcome a crisis, it
demonstrates that you have what it takes to move up to a
C-suite position. These days, in almost every community,
there are nonprofits in survival mode – especially
smaller organizations – so there are a lot more opportunities
for involvement that will benefit you as well as the nonprofit.
______________________________________________________
Janice
Frates, Ph.D. teaches health policy, management
and marketing classes in the Health Care Administration
Program at California State University Long Beach. Dr.
Frates received her Ph.D. in Public Administration from
USC, with a concentration in Health Services Administration.
Her recent research and publications focus on Medicaid managed
care and state health policy options to expand health insurance
coverage for the uninsured. She is also a Licensed Clinical
Social Worker, holds a Master of Social Work from the University
of California, and was a social work practitioner and administrator
in the San Diego County Department of Social Services and
the Orange County Department of Public Health. www.csulb.edu/~jfrates
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