oh my board.....

The rural resource gap is mirrored in a number of other rural gaps, or divides. Rural nonprofits are much less savvy at creating or influencing policy (something Kellogg has been addressing now for several years),then there's the gap in the workforce (see my previous post), and the gap in access to academic research resources. However, the governance gap is the most obvious to me in my daily work. While non-rural nonprofit boards all over the country are seemingly much more on top of their responsibilities, in NM we seem to think that governance is insignificant to an organization’s health.

Over the last 18 months no less than three large nonprofit community organizations in Southwest New Mexico experienced a Board of Directors erupting into conflict over the departure of the executive staff person. While each of these conflicts had their own causes and characteristics, together they are a symptom of one ailment: Local nonprofit boards ill-prepared to fulfill their duties. Two organizations now have seemingly stabilized, but one lost all of its government contracts and is now defunct. These conflicts were not healthy processes leading to stronger organizations. They left deep scars on individual relationships, resulted in loss of staff, and left the community with a perception of incompetence and needless in-fighting.

And many of the other boards in the area are not exactly collecting laurels….some more observations from the last few months: a board going below the number of directors set in the by-laws, another board either ignoring or somehow missing the fact staff that have been committing Medicaid fraud for a number of years, (this organization is on its way out, too) and many other boards watching idly as their staff struggles with dramatically shrinking resources as a result of the recession.

And finally, despite a wealth of information available on the new IRS Form 990, and its implications for nonprofit governance, not one area board (that I know if) is gearing up for a thorough review of their organization’s 2008 Form 990, due for most organizations in November.

Oh,…let’s mention the other side of it too: Executives who are condoning and enabling weak boards. I understand the temptation here, and how it is more convenient to run the show without the directors breathing down your neck. It’ll bite you in the butt at some point though. Guaranteed. I also see executives with good intentions, but no understanding of what it means to work for a board. They, along with their directors, should attend the next “Basic Roles and Responsibilities of NP Boards” training in the area.

I also worry that the recent local board conflicts discourage our community members from serving on the boards of crucial community organizations. Serving on a board can be a fulfilling, educational and rewarding way to volunteer for your community. Especially younger people underestimate how much this service adds to their resume, and how much they can learn: from leadership to financial management, supervision and teamwork, fundraising and policy, all are important workplace skills.

So, how can erupting and dysfunctional boards be avoided? Directors serving on boards may ask themselves: Are we as individuals and as a group prepared to guide this organization through an executive transition? Do we have the knowledge and leadership skills to be guardians of the mission in such times? Are we ready to put loyalty to the organization before our own egos, ideas and interests? And are we engaged enough to work with the executive (whether incoming or outgoing), supporting and supervising him or her? Are we ready to put in the extra hours needed to revise the organizational budget and make the needed decisions to steer the organization through the recession?

In times of economic crisis we cannot afford community nonprofits to fail those most vulnerable residents who are depending on their services. People serving on boards must recognize their responsibility, hone their skills, or get off the board.

Article - Nonprofits in Rural America: Overcoming the Resource Gap

check out this small study from Bridgespan. In addition to the rural financial resource gap, is someone going to look at the other rural capacity gaps, such as work force, governance, etc.?

Article - Nonprofits in Rural America: Overcoming the Resource Gap

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my colleague Carol Miller responded:

Thanks for sending the link. I have been tracking foundation impacts on rural and frontier communities for about 20 years and am attaching a couple of items.

Max Baucus has been the spokesperson for the philanthropic divide identified by the Big Sky Institute in 2005. Here is an interesting 2006 speech from Max.

I am also attaching a 1990 article by Karl Stauber, longtime foundation president at a number of foundations. Karl’s article describes how yo-yo funding has hurt rural America.

My current position is that rural America is not dying, it is being killed through both intentional and unintentional policies.

The New Mexico Nonprofit Workforce, or the lack thereof….

Why do the lack of skills in our workforce make it so hard to run a nonprofit organization in New Mexico?

In my consulting practice, I hear managers complain almost every day about their staff: Nonprofit employees come to their CEOs with the most trivial questions, questions that seem to have very obvious answers. Changes in service provision, implementation of electronic data bases, accurate reporting of services are incredibly difficult to implement. Staff in direct contact with the public or clients lack the most basic communication and courtesy skills. Senior managers waste precious time and resources with bickering and finger-pointing. Clerical staff is unable to compose a coherent written sentence or work a spreadsheet. The list of complaints goes on and on.

Employers find that very few people have leadership skills, dedication, a sense of responsibility, or are able to make appropriate, independent decisions. Few employees communicate areas of improvement or innovative ideas to their supervisors and colleagues. Instead they sow discontent by complaining to the wrong people. Often employees are barely able to follow the simplest instructions, and in most cases they will not go beyond what is directly asked of them.

Which leads one to think that not many nonprofit employees seem to have chosen their jobs based on a passion, a skill, or the dedication to a social justice issue. Low pay in the nonprofit sector further contributes to the lack of job loyalty, resulting in turnover rates that make it almost impossible to maintain quality services.

And critical thinking, questioning systems and thinking up hare brained, innovative new solutions to old problems are needed at all levels of nonprofit work – whether your job is in philanthropy, governance, management or direct service provision.

The nonprofit sector can’t function with a work force that just does what they are told (if that). The sector needs creative, independent thinkers, team workers, diligent administrators with bureaucrat obsessive compulsion and passionate hearts. Certainly nobody’s in it for the whooping paycheck. At least not in rural New Mexico.

The opposite of the medal reveals those few that do have the required management skills, leadership ability, passion and creative, critical minds. They exist in the sector, we all know a few of them and they all have one thing in common: they are burning out.

What are the reasons for this ailing workforce?

1. My suspicion is that the seeds for the minimalist work ethic are sown early on – in elementary and high school, and maybe in college, too. Skills taught there seem to be “ how do I get away with as little work as possible, without getting into trouble?” resulting in an attitude of “ I am not going to go one step above and beyond what was asked of me”. Elementary students who are filling out piles and piles of worksheets each week are literally taught to think inside the box only. They are also not acquiring any team work skills that they’ll need later.

2. Independent thinking is not encouraged in a hierarchical organizational structure. There is always someone to blame, either above or below in the hierarchy, so there is never a sense of “this is my responsibility”.

3. The specific skill set needed to work in a nonprofit environment is unattainable through comprehensive formal educational programs in New Mexico at this time. As a result, the skilled leaders we do have are all self-taught. Many of them have a direct service background and find themselves to be managers and leaders at some point. Many of them are now close to retirement age.

4. The new generation of younger staff rising up in the nonprofit ranks consists of very few people, with insufficient educational background and experience, and they do not have many opportunities to pursue professional development opportunities. Many analysts predict a major nonprofit workforce crisis once the baby boomers start retiring. I think we are already in crisis.

So what do we do? I’d like to invite ideas and start a discussion. Here are some initial thoughts:

Education Community:

· All: Create programs that encourage independent thinking, curiosity, and a sense of responsibility.

· High schools: Incorporate nonprofit management careers into career fairs and other high school student career pathway planning events.

· Higher Ed: Offer certificate and graduate programs in nonprofit management. Incorporate service learning programs and nonprofit internships.

· Raise the bar.

Nonprofit Employers:

· Become an AmeriCorps site! AmeriCorps and VISTA are the number one pipeline programs generating dedicated nonprofit workers.

· Create a budget for professional development that is appropriate to address the needs of your work force.

· Educate funders about your budget needs for workforce development. This is your chance to make the case for an increase in administrative overhead, and to advocate for capacity building dollars.

· Assess new employee skills and create professional development plans for employees at all levels. Tie bonuses and salary increase to additionally acquired skills and their application.

· In budgeting and resource development, make salaries, benefits and professional development a priority. Fight the poverty mentality in the nonprofit sector. Otherwise you will always compete with fast-food restaurants and other low-pay employers.

· Revisit your organizational chart for opportunities to flatten hierarchies. Examine your organizational culture. Get rid of barriers to independent thinking and action. Create accountability structures that provide more support than control. Create incentives for innovation, responsibility and quality improvement.

· Work with the education community, funders and other nonprofit employers, start identifying the workforce needs of the sector, and pool educational and financial resources to address them.

· See your organization as part of the nonprofit sector. Help market the sector as a career choice, and the workforce as one striving for excellence, professionalism and outcome –based achievements.

· Raise the bar.

Employees:

· Choose your place of employment wisely. Understand what it means to work in the nonprofit sector, and which attitudes and skills will advance your career.

· Be prepared to make your work a large part of your life. Nonprofit work is much more than job…. It’s a passion and dedication for social justice, and it means endless work towards making a change for those fellow humans and common causes that fall through the cracks of the government and the business sectors.

· Have pride in your work. Raise the bar.