Giving Back: Examining common ground in the parallel nonprofit and business universes
They’re like peanut butter and jelly, coffee and mornings, Jenny and Forrest.
Leaders of nonprofits and for-profits make perfect companions in the work they do to build stronger communities. At Manatee Community Foundation, we hear from professionals in both sectors about their experiences working together.
The demand on businesses for corporate social responsibility and the increasing number of charitable organizations pursuing earned income strategies are continuing to narrow the gap between for-profits and nonprofits. As this occurs, differences in operational approaches and leadership narrow too.
Business leaders are nonprofit board members, thinking partners, philanthropists. A few themes emerge in conversations with nonprofit leaders who feel daily gratitude for these generous and sustaining contributions from their for-profit counterparts while also thinking, “If only they knew.”
The magnitude of the nonprofit workforce, competitive compensation, appreciation for the expertise of nonprofit professionals, and fundraising challenges are commonly cited.
Nonprofit jobs matter
Volunteers play a major role in nonprofit efficiency and program delivery, but the impact of employment in the charitable sector is often underestimated. According to the Johns Hopkins Center for Civil Society Studies, nonprofits are the third-largest employer in the United States, employing 11.9 million workers.
Employees are case workers, scientists leading breakthrough research, production crews in theater, mental health counselors, educators, artists, fundraising executives, operations managers and everything in between.
They tackle issues that impact the fabric of our society — ultimately influencing the quality of life for everyone regardless of income level and status.
The programs and services developed and delivered by nonprofit workers create communities that attract and retain businesses, visitors and residents.
The pay gap needs to change
For years, nonprofit executives have heard that they need to “run their organizations like businesses.” And at the same time, they are cautioned about good wages. Talented professionals in the sector have been encouraged to look at their work as a “sacrifice” and a form of “giving back.” That’s the old model.
In Manatee County, a nonprofit worker holding a Master’s degree and giving support to families living in poverty may earn a salary that puts her in the same financial situation as those she is counseling. Think about that for a moment.
Increasingly, business executives serving as nonprofit board members are advocating for the salaries, benefits and professional development that will attract excellent people with staying power. They know that making sustained gains for our communities requires it. This is a welcome shift.
Charitable work is complex
When Amazon’s Jeff Bezos recently announced his new multi-billion dollar investment in early education and homelessness, it was quickly met with criticism by some in the nonprofit world.
Some perceived the announcement as arrogant, citing the lack of strategy informed by those who actually work in the social sector for a living. Others said Amazon should increase company wages as a first, close-to-home step to address economic inequity. Last week Bezos raised the minimum wage of all U.S. Amazon workers to $15 per hour. We have to admire this responsiveness.
There are two big takeaways here. First, business leaders can be responsive to voices from the third sector and often are. Two, nonprofit leaders expect their for-profit counterparts to take the time to learn from them. They have education, experience and sweat equity in the work. This is a reasonable expectation.
Progress in some areas has advanced little over the years. There is room for nonprofits to embrace good thinking and innovation from other successful leaders to boost what they already know and do well. Most of them are open to it and are thrilled to have it when coupled with a mutual sense of respect.
Raising money is hard
Few nonprofits have the luxury of covering their operating expenses entirely through earned revenue (program fees, for example). So they have to fundraise, and fundraising is hard work.
After working with many nonprofits over time, I can tell you that board members often seek to address fundraising through a few lenses: increasing national corporate support, increasing media attention, and suggesting new fundraising events.
These tactics can be important as overall contributors to the success of the organization, yet the pursuit of each can take a great deal of time and rarely raises significant funds.
For every fundraising event, countless hours of volunteer and staff time make the true cost hard to track. Net profits are often much lower than supporters may imagine. (And not to mention, the sheer number of events on any given evening during Season is mind boggling.)
The business executive all nonprofit leaders want in their corner is the one who is not afraid to use his or her network to engage people, one on one, in the life-changing nature of the organization’s work. It takes time, personal introductions, leadership, and passion. Manatee County business leaders step out big time in this way. We are fortunate.
Susie Bowie is the executive director of the Manatee Community Foundation, a charitable foundation that strengthens the community through philanthropy, education and service — for now and for the future. Email: SBowie@ManateeCF.org. Phone: 941-747-7765.
This story was originally published October 9, 2018 at 8:27 AM.