| I was sitting in a meeting of young professionals last | | | | Using an example of a nonprofit jobs training |
| week and the subject of nonprofits, grant funding, | | | | organization, 'outputs' would typically measure the |
| grant writing, and fundraising arose. In addition, the | | | | number of participants in the program, along with |
| continued subject of interest to me (ethics, | | | | program costs, etc.; however, to make the move |
| governance, and accountability) was also mentioned. | | | | toward 'outcomes' the organization would need to |
| But, I found the thoughts of the group of young | | | | track the number of program participants (outputs) that |
| professionals to be fascinating, well-timed, and very | | | | actually (a) successfully completed the training, (b) |
| thoughtful: those nonprofit organizations that are | | | | found jobs that pay a living wage, and (c) stayed |
| 'irrelevant' or 'duplicative' are no longer needed in our | | | | employed over a given period of time. Now, that's |
| communities, are drawing funds away from other, | | | | accountability! |
| arguably more viable, needs and should not be | | | | Let's take a look at the two obvious ends of the |
| expected to survive. | | | | spectrum of organizations in the nonprofit sector. |
| Interesting! | | | | The 'government' (federal, state, and local), by the |
| As the discussion progressed, it was clear that the | | | | process it uses to distribute funds, is an enabler of |
| young professionals truly have adopted 'social media' | | | | 'output-based' measures. A good example is the |
| (LinkedIn, Facebook, Twitter, etc.) as their means for | | | | long-standing concept of the "community action |
| communicating. They do not attend the meetings - nor | | | | agency" and its myriad of funding mechanisms that |
| do they join the community organizations - that were | | | | 'automatically' flow to these groups every year. Many |
| the mainstays of the past. This phenomenon places | | | | of the community action agency funds are actually |
| large numbers of non-profit organizations in jeopardy. | | | | codified in federal and state law. Opponents of |
| Where are tomorrow's leaders? How does the | | | | community action agencies would argue the very point |
| mechanism of 'social marketing' find its way into the | | | | of 'irrelevance' and 'duplication' arrived long ago. Make |
| governance process required of nonprofits? Countless | | | | no mistake that accountability is enforced by means of |
| articles have been written about the scarce resources | | | | audits of community action agency programs, but the |
| that continue to spiral downward for organizations in | | | | audit can only be as good as the required measures. |
| the nonprofit (charitable) sector. | | | | While it is impossible to tally the numbers, considerable |
| And, thoughtfully, this group of young professionals | | | | amounts of funding are not creating the desired |
| believes 'survival of the fittest' is very appropriate, | | | | outcomes. It is time to demand accountability from all |
| particularly in this economic climate. | | | | nonprofits. |
| When you stop and think about it, the young | | | | Conversely, individual donors and foundations are free |
| professionals are correct - even by the standards of | | | | to make contributions to nonprofit agencies of their |
| the 'old timers' (like this author). We have watched | | | | choice, using whatever measures they deem |
| nonprofit organizations proliferate, compete, fuss and | | | | appropriate. We would advocate both increased |
| fight, refuse to collaborate, and provide 'services' that | | | | accountability by nonprofits and increased |
| are no longer beneficial by the community. Curiously, | | | | accountability by funders. |
| communities have not proactively rid themselves of | | | | Should we ponder merging similar nonprofits? |
| irrelevant and duplicative nonprofits. Ostensibly this is | | | | Most discussions that I have been involved in over the |
| because even the most irrelevant and duplicative | | | | years that concern 'duplication' of activities among |
| nonprofit organizations still have some modicum of | | | | similar nonprofits have predominately centered on the |
| interested supporters (and funders). | | | | issue of 'job protection' for the executive director. |
| So, what does The Center for Ethics, Governance, | | | | While this is entirely predictable, it should be recognized |
| and Accountability (CEGA) recommend? | | | | that the issues driving the missions of nonprofits are |
| Well, for starters, our entire focus at CEGA has | | | | not easy to solve and there may never be enough |
| always been on ethics, governance, and accountability | | | | people to get the job done. Accordingly, the merging of |
| - and so it shall remain. If a community or a funder or a | | | | similar (duplicative) programs and agencies seems to |
| nonprofit organization were to focus on the | | | | be a very reasonable way of addressing the |
| 'accountability' aspect of the equation, would not that | | | | community needs and the individual protectionism |
| identify issues of 'irrelevance' and 'duplication' among | | | | among executive directors and even board members |
| the nonprofit sector? | | | | who have long-standing ties with certain organizations, |
| Sure it would! | | | | despite the possibility that those organizations are now |
| Nonprofits are notoriously skeptical of measuring | | | | either 'irrelevant' or 'duplicative' to the objective |
| outcomes - not outputs - but outcomes. Why? Simple | | | | reviewer. |
| answer: outcomes speak directly to the viability and | | | | So, where do we go from here? |
| the success of the nonprofit as measured against its | | | | Without a doubt, the discussion among the young |
| mission. CEGA advocates a proactive approach to | | | | professionals in the meeting I attended was |
| accountability and we argue that those nonprofits who | | | | thought-provoking. There is no better time than right |
| can demonstrate excellence in accountability (and | | | | now for nonprofits to look internally, get their house in |
| ethics and governance) should stand above their | | | | order, cooperate with their peer organizations, and |
| peers in the increasingly difficult fundraising arena. | | | | conduct themselves in a manner consistent with the |
| What is the difference between 'outcomes' and | | | | privilege awarded them through their IRS charitable |
| 'outputs' as tools of accountability? | | | | designation. |