A Reflection on the First Five Weeks: An Assignment for Introduction to Nonprofit Organizations
If you know me, you know I have a passion for nonprofit organizations. It started twenty years ago when I first ventured into the business at Tennessee Christian Medical Center. The work we were able to do behind our Statement of Mission, “We exist to reflect the life and work of Christ and to assist physical, emotional and spiritual healing,” impacted both patients, employees, and our local community. I learned there that purpose over dollars was more of a motivator for me and that changed my career path moving forward.
Since then, I have been in and out of the nonprofit realm for employment, but I also get my fix (laughing) from a number of nonprofit boards and committees that I sit on. For example, I am currently the Assistant Chair on Barbershop Harmony Society (BHS) Nominating Committee, the Director of Board Marketing on the Johnny Appleseed District of the Barbershop Harmony Society, and a Board Member at Large on the Tennessee Tech Parent Association Board of Trustees. My passion is making a difference, being a part of change, and serving those who bring me joy. These opportunities serve that purpose.
My commitment to continuing my education is what brought me to take the course, Introduction to Nonprofit Organizations, and I am confident what I am learning will be especially helpful as I move into the Chair position of the BHS Nominating Committee at the end of next year. There are a number of key topics we have discussed in the first five weeks, and I want to talk about three of them:
1. Common Vocabulary: In our course textbook, Nonprofit Management: Principles and Management, Michael J. Worth writes, “...it is important to dispel the common misunderstanding that nonprofits cannot earn profits. Defined as simply an excess of revenues over expenses, nonprofits can and do earn profits,” (p. 24). Nonprofits are not in the business of making money, their purpose is to leave an impact, but they still need income to cover expenses. Nonprofit charities (also known as 501(c)(3) exempt organizations) undertake programs for a variety of objectives from religious to educational to health and safety, and more (Worth, 2019, p. 28). Their main incomes can come by way of fees, contributions, and donations.
2. Board Governance vs. the CEO: The CEO is typically the one held responsible for the company's triumphs and failures in the eyes of the public. The board of directors, on the other hand, has a significant influence over the actions of a company that can often lead to those triumphs and failures. As a result, a strong working relationship between the board of directors and the CEO is critical. Both the boards of directors and CEO make high-level decisions. The distinction between their jobs is determined by company policy. The board of directors is responsible for hiring and removing the CEO, as well as approving significant policies and making major decisions. The board also monitors the CEO's and company's performance in terms of profitability and long-term viability (Worth, 2019, pgs. 94-95).
3. You Must Have a Strategic Plan: A strategic plan identifies and outlines a nonprofit's goals for usually one to three years and the goals/process to achieve them. At a minimum, a strategic plan should include a strategic analysis of strengths, weaknesses, opportunities, and threats (SWOT analysis), a review and assessment of current resources. mission and vision statements, and an outline of goals, objectives, and activities (Worth, 2012, pgs. 181-206). A strategic plan is essential to the success of any nonprofit. It guarantees that everyone from the board to the executive leadership to the day-to-day operations team is on the same page and working on behalf of the nonprofit's purpose, vision, values, and most important priorities.
Nonprofit organizations play an important role in changing people's lives and communities but they require competent leadership to achieve their goals. Building the future leadership pipeline, attracting, developing, and retaining top personnel, managing complicated, resource-constrained situations, defending the bottom line and enacting beneficial social change, are the responsibilities of nonprofit leadership, and as I continue strive for growth in my current roles and future opportunities, I am excited for the knowledge and learn skills that lie ahead in this course.
Worth, M. J. (2019). Nonprofit management: Principles and practice. Sage Publications.
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