MacArthur Honors Creative and Effective Nonprofits

On February 16, 2012, the John D. and Catherine T. MacArthur Foundation announced the recipients for the MacArthur Award for Creative and Effective Institutions.  According to the Foundation’s website, these awards “continue the Foundation’s history of building and supporting institutions that address some of the world’s most pressing problems in creative ways.” As noted by MacArthur President Robert Galluci: “From Chicago to Kampala, these extraordinary organizations demonstrate exceptional creativity and effectiveness. They provide new ways to address old problems. They generate provocative ideas and they reframe well-worn debates. And their impact is altogether disproportionate to their size.”

The Chicago-based foundation chose 15 organizations from the US and abroad; each organization will receive grants ranging from $350,000 to $2.5 million, based on the annual budget of the organization. Below are the recipients of the 2012 MacArthur Award for Creative and Effective Institutions.

United States

• Business and Professional People for the Public Interest – Chicago, IL
• Center for Investigative Reporting – Berkeley, CA
• Center for Responsible Lending – Durham, NC
• Community Investment Corporation – Chicago, IL
• Conservation Strategy Fund – Sebastopol, CA
• Furman Center for Real Estate and Urban Policy at New York University –  New York, NY
• International Center for Not-For-Profit Law – Washington, DC
• National Juvenile Defender Center – Washington, DC
• The Moth –  New York, NY

International

• Albertine Rift Conservation Society – Kampala, Uganda
• Carnegie Moscow Center – Moscow, Russia
• Crisis Action – London, United Kingdom
• Girls’ Power Initiative –  Calabar, Nigeria
• Moscow Helsinki Group –  Moscow, Russia
• Red Nacional de Derechos Humanos (Red TDT) – Mexico City, Mexico

For more information on the MacArthur Foundation Awards, click here.

Foothills Area Family YMCA: PMA’s Client Spotlight

Each month, the PMA Blog will feature a past/current client that is making exceptional progress in advancing its mission and vision.  The showcased client will typically exhibit strategies that are timely and speak to challenges and opportunities facing us all.

This month’s Client Spotlight is Foothills Area Family YMCA (YMCA), based in Seneca, S.C. and presently focused on the execution of a capital campaign.  PMA was contracted by the YMCA to help assess campaign feasibility and facilitate planning and implementation in pursuit of a $6-8 million goal, the construction of a permanent membership facility, and the subsequent enhancement of programming and endowment.

Despite initial plans to launch directly into pre-campaign capital development, YMCA staff and volunteer leadership embraced the need to first address recent disclosures and perceptions with the potential to obstruct future development.  The organization underwent a preventative communications plan with a focus on effectively managing communications, enhancing transparency, maintaining the integrity of organizational leadership and advancing campaign viability.

Five key components were included in the plan in order to manage communications through a formal, clearly defined channel:

1. Communications Policy – The policy helps the YMCA identify the individuals within the organization who interact with the media and public, with consideration given to the tone of each response.

2. Communications Checklist -  Ensures messaging be factual with proactive steps considered prior to interaction with the public. Also, steps and effectiveness of “going public” are able to be measured.

3. Positioning – Everyone within the YMCA is identified and understands their position and any potential conflicts of interest and the effects they have on the entire organization.

4. Detailed Plan – Everything from assessments and internal notifications, to record keeping, communication updates, and evaluations are part of a comprehensive and detailed plan.

5. Timeline – The organization follows a strict schedule of planning and implementation, while tracking internal and external communication.

Also important for the YMCA’s success was to create a process for engaging with stakeholders about the YMCA’s capital campaign. Meetings were arranged with the sole purpose of informing stakeholders about the campaign, without any idea of solicitation of financial resources. As stakeholders have a vested interest in the process, PMA developed an agenda for the YMCA to follow as it moves forward that would allow for a more open, fair and methodical process.

As noted by Executive Director Anna Connelly in a November, 2011 press release, “We hope this RFP process will yield opportunities for the YMCA to open its doors widely to exceptional program offerings,” said Executive Director Anna Connelly. “We need to reach much deeper into our service area than ever before and exponentially increase its access to programs, facility, outreach and enrichment activities.”

While transparency, methodicalness, and community involvement are often challenged by leadership seeking to streamline activity, the YMCA has demonstrated that these notions are basic to success.

Staff and volunteer leadership recently credited PMA’s process and procedure with “bringing positive public relations and inspiring lead funding,” and continue to work with the firm to further campaign planning and implementation.

For more information about the YMCA’s capital campaign, please contact Executive Director Anna Connelly at ceo@y4all.org.  For general information about their mission and vision, please visit their website at  http://y4all.org/.

2013 Budget Proposes Increase in Arts Funding

Photo Courtesy of The Fiscal Times

Last Monday, President Obama announced that the 2013 budget includes a 5% increase for arts and cultural organizations. According to the Los Angeles Times, the budget aims to increase arts spending from $1.501 billion to $1.576 billion for the following organizations: the National Endowments for the Arts and Humanities (NEA and NEH), the Institute of Museum and Library Services (IMLS), the Smithsonian Institution, the Kennedy Center for the Performing Arts and the National Gallery of Art. The breakdown is as follows:

• NEA and NEH: The NEA and NEH would get a 5.5% increase (up to $154.255 million from $146 million in 2012). 
• IMLS: They budget proposes $231.9 million for IMLS, a $439,000 reduction.
• Smithsonian Institution: The Smithsonian Institution would receive $856.8 million, a 3.7% increase for its operating budget, in addition to 12.3% increase in capital expenditures. 
• National Gallery of Art: The 2013 budget proposes a 5.2% increase in the operating budget and an $8.5-million increase in spending for renovations and repairs.
• Kennedy Center for the Performing Arts: The Kennedy Center would sustain an $883,000 cut to $36 million.
• President Obama is looking to spend $445 million on the Corporation for Public Broadcasting. 
• The U.S. Holocaust Memorial Museum would receive $51.8 million (a $1 million hike).

Rocco Landesman, President of the NEA, said: “A dollar invested directly through the NEA is matched by $8 of additional investment and generates $26 of economic activity in the community. In short, art works.”

To learn more about the proposed arts funding, click here.

Trench Warfare – Recruiting Winning Board Members

Although identifying and recruiting quality board members for your nonprofit has never been easy, the task has certainly become more challenging in the post-Recession era. Gone are the days (thankfully) of meetings consisting of lengthy committee reports and the ensuing arduous discussions around them.

Where Will You Find Your Next Board Member?

Today, leaders are looking for meaning and purpose in their precious free time. Wearing the noble badge of board member today means rolling proverbial sleeves up and engaging at a fully-committed and meaningful level.

Strange as it may seem, serving today actually equates to work. Competition has never been greater for talented, connected and engaged board members.

How will your organization win the battle of landing winning board members in the nonprofit trenches? Here are a few places PMA recommends starting:

• Meet with Corporate Leaders (who you know would likely not serve your board) – Find out the rising stars of a company who might fit your nonprofit or who are simply looking to serve.
• Other Nonprofit Leaders – Ask other leaders about terrific former board members that may connect or align with your organization’s mission. Working with other nonprofits will only help keep talented candidates serving the community and bolstering the area’s nonprofit sector.
• Volunteer Liaison – This individual knows a lot of good potential candidates from both current and past engagements.  Find out who would be a good hands-on fit for your board and ask for an introduction.
• Form a Recruitment Task Force – Your organization’s Advisory Board (if you have one) is a great place to start. Enlist the help of a dozen or more highly functioning leaders in town (also who you know won’t be serving on your board). Ask them for two hours of their time – ultimately having them identify one or more prospective board members. Better yet, get them all in a room together for a brain-storming session. Of course you’ll want to provide a meal as you’re not above bribery—after all this is important!
• Unabashed Marketing Blitz – Advertise your need for an outstanding board member everywhere you can. Whether it be in your lobby, your newsletter, a magazine or an annual report, get the word out. Be careful though, as this tactic could lead to unqualified applicants who you wouldn’t otherwise engage.

The important point is that you shouldn’t rely on a dead or barely functioning two-person “Nominating Committee” to fill your most precious and coveted leadership seats. Put a comprehensive, aggressive plan together, ready the troops for battle and go claim the high ground – outstanding, dedicated and generous board members.

How to Implement Change? – Lake Norman Nonprofits Ponder the Question

Each month, the PMA Blog will feature a philanthropic trend in our broader region or nationally. The selected trend will typically focus on a specific community but ultimately will speak to timely issues facing us all.

This month’s Philanthropic Trend reflects recent conversations PMA has had with its friends in the Lake Norman community. When asked to comment on philanthropic trends in the towns of Huntersville, Cornelius, Davidson, and Mooresville, Lake Norman nonprofit leaders often referenced two recent reports directed at uncovering the needs of and solutions for service providers in the area:

Regional Community Needs Assessment – Prepared by UNC Charlotte Urban Institute in support of United Way of Central Carolinas.

The study sought to assess the critical needs of the region while identifying the most effective channels for addressing them. The greatest deficiencies were in three categories, Education, Housing & Poverty, and Health/Mental Health. Preventative services and public awareness were the two themes most needing to be addressed across the categories.

Recommendations included education programs at all levels (education), affordable housing/better public transportation (housing & poverty), and emphasis on preventative care (Health).

SHARED SERVICES THAT WORK: Surprise Findings from Charlotte-Mecklenburg Nonprofits – Prepared by Tides for the Community Catalyst Fund of Foundation For The Carolinas

A Task Force of nonprofit and local business leaders looked at the possible development of a Managed Services Organization (MSO) – a program that serves multiple organizations in back-office functions such as purchasing, payroll, HR, IT, etc. Findings and recommendations for shared services were included in the report.

Challenges identified by the group include a nonprofit economic crisis, increased community needs, reduced funding and access to space and services. The Task Force found that shared purchasing and health options are too complex in implementation to be effective. There is, however, significant opportunity for shared services in information technology and human resources services.

The feedback from Lake Norman nonprofit leaders has been mixed, noting that the motives behind these reports were positive but that the majority of service providers have not presently been influenced by or acted on the key recommendations. Is this a declaration of the specific capacity of Lake Norman nonprofits to embrace change or rather a general statement about the challenges of implementation?

While it’s easy to dismiss the effectiveness of these two critical reports or to underestimate the desire of local nonprofits to adapt to changing priorities and transform their practices, PMA suggests the issue at hand pertains more to the common pitfalls of implementation and working collaboratively to overcome them:

• Lack of communication – Transformation of practices cannot effectively take place without good communication. Simply expressing an idea will not suffice. Rather, ongoing dialogue with all parties throughout the process is critical for success.
• Lack of clear and motivating leadership – Change must start at the top, so an organization seeking new implementations should be leading the push with clearly defined objectives.
• Lack of planning – Jumping feet first into implementation without a carefully thought out plan presents many roadblocks on the way to completion. Identifying potential pitfalls at the beginning allow an organization the opportunity to be prepared for issues down the road.
• Passive management – Assuming change is going along as planned without effective oversight is sure to lead to disaster. More problems arise without good management, further increasing the chances of a failed endeavor.
• Motivation and personal ownership – Forgetting to include key staff in changes will not help a project along. When staff are involved and have an understanding of how ideas being implemented will be beneficial, they’ll be more inclined to help the process succeed.

NoDa School of Arts Selected as PMA’s 2012 Pro Bono Project

Patton McDowell & Associates is proud to announce that NoDa School of Arts has been selected for the 1st Annual Pro Bono Project. During our 3rd Anniversary social on February 9, 2012, Patton McDowell introduced Kellie Brown, who has served as the organization’s executive director since 2009.

Kellie Brown said that since schools have cut arts programming, she wants her organization to be an outlet for arts opportunities to children in the Charlotte community. The mission of NoDa School of Arts is to recognize the God-given talent of Charlotte’s underserved and underprivileged youth through the pursuit of excellence in the arts. Their goal is to provide high quality performing and fine arts training to youth who otherwise don’t have access or exposure to the arts.

Celebrating with approximately 70 representatives from nonprofit, corporate, and foundation organizations, PMA is excited to begin our partnership with NoDa School of Arts. PMA would also like to recognize the other outstanding organizations that applied for the Pro Bono Project.

• ACE Mentor Program of Greater Charlotte
• Brookstone Schools
• Charlotte Art League
• Civic and Cultural Arts Center of Pineville
• Habitat Metrolina Partners
• Jazz Arts Initiative
• The Respite, A Center for Grief and Hope

An advisory committee assisted in the selection of an organization for the project. Committee members included:

• Katie Benston – Care Ring
• Katherine Mooring – Arts and Science Council
• Will Sparks – Queens University of Charlotte
• Chris William – Carolina Business Review

We thank them and everyone in the community for all the support of PMA the past three years!

The Case for Change Capital in the Arts

“If arts organizations and the sector are to thrive, donors must change their funding and financing practices to support strategies that enable experimentation, build audiences, and cultivate artists.” — Nonprofit Finance Fund, The Case for Change Capital in the Arts

On January 19, 2012, PMA had the opportunity to attend a presentation by the Nonprofit Finance Fund (NFF) called “The Case for Change Capital in the Arts: Building Vibrant and Viable Cultural Organizations.” Presented by the Arts and Science Council, the session focused on the need and uses of change capital in the arts, outlining key strategies and practices to help enhance capitalization in the sector for both arts organizations and funders.

In 2011, NFF published a series of reports and videos showcasing case studies and lessons stemming from its $15 million project, Leading for the Future Initiative. The Leading for the Future Initiative is a national project that emphasizes the use of change capital to help arts organizations adapt their programming, operations and finances to thrive in a changing economic and cultural landscape. With funding from the Doris Duke Charitable Foundation, ten arts organizations are collaborating with NFF over five years to develop and implement plans for achieving this transformation. The National Black Arts Festival, Center Theatre Group, and Steppenwolf Theatre Company are examples of organizations collaborating with NFF on this initiative.

Without a doubt, NFF demonstrates passion and support for change, growth and access to capital within the nonprofit sector. Here are four key takeaways from the presentation we attended:

• Funders and nonprofits must distinguish between revenue and capital to truly understand operating performance.
• Funders should consider pooling Resources.
• Nonprofits need to prepare for change.
• Nonprofits must separate capital in financial reports.

As arts organizations contemplate issues of growth, sustainability and capital, several questions come to mind:

• How can the sector be better funded?
• Where can organizations obtain capital?
• Does every organization need to be fully capitalized?

Visit the Nonprofit Finance Fund for more information.