Nonprofit Literature Blog

Nonprofit Organizations Sharing Services

Shared Services: A Guide to Creating Collaborative Solutions for Nonprofits (San Francisco, CA: Nonprofit Centers Network) is the "first comprehensive guide for nonprofit leaders looking to create shared services programs." Chapters provide an overview of shared services, planning tips and tools, and offer case studies as examples. Here are some questions/answers culled from the guide:

"What are shared services? What benefits do shared services offer?"
Broadly defined, it's the "collaborative use of resources across traditional organizational boundaries."  These resources may include physical (office) space, equipment, staff, or program resources.  Benefits include more purchasing power, efficiency through the reduction of duplication of functions, employee retention, and stability through the creation of a long-term system.

"How are shared services structured and funded?"
There are four common structures: independent provider, joint venture, fiscal sponsorship, and networked support. The guide provides a matrix to help you choose the right structure.  Regarding funding, diverse streams are recommended; some of these include earned income, corporate support, and debt or investment funding from banks and foundations. While initial funding may be needed for start-up investments and expenses, the book provides an example of a shared Internet service that did not require start-up funding.

The guide also provides detailed advice on managing and staffing such programs, and devotes an entire chapter to planning tools.  The case studies look at 10 shared services programs around the U.S.; each profile includes key lessons learned, the mission, budget, structure, and contact person.

For more information on this topic, last year Jean Butzen, a blogger for the Stanford Social Innovation Review, wrote a series on nonprofit back-office integrations or what these organizations refer to as "shared service alliances."  Here are links to the four entries, which all focus on the Early Childhood Education (ECE) industry:

• Creatively Combining The Back Office: A Series on Shared Service Alliances
  Introductory blog to the series.
• Creatively Combining the Back Office: Shared Services Alliance Part 2
  Provides an example of what can be done to preserve small, community-based nonprofits through a unique business model.
• Shared Services Alliances, Part Three: Early Learning Ventures Alliances
  Addresses creative and productive partial integration models.
• Tipping Point for A National Movement for ECE Shared Services
  Describes the National Shared Services Technical Conference Butzen attended in Philadelphia, Sept. 20-21st, 2010. She also links to a shared services toolkit that can be used in the start-up of local early care and education alliances.

In addition, Tides (the creator of the Nonprofit Centers Network program) makes available Develop Shared Nonprofit Space & Services, which describes their work in shared services and points to helpful resources, such as a green workspaces brochure.

Shared Services: A Guide to Creating Collaborative Solutions for Nonprofits is available at the New York, DC, San Francisco, and Atlanta libraries under call number 609 CEF.

Rob Bruno
Catalog/Reference Librarian
The Foundation Center--New York

Examining the Organizational Culture of Nonprofits

The Nonprofit Organizational Culture Guide is a handbook for nonprofit leaders interested in “surfacing” or bringing to light their organizational culture in order to understand it better, with the understanding that doing so will improve management and provide an environment in which staff can pursue their missions more effectively and efficiently. 

The first two chapters explore the literature of organizational culture, and look at six different nonprofits to examine culture “in action,” especially during times of stress.

Arguably the most important part of the book is the description of the process for Revealing Organizational Culture (ROC) in Chapter 3.  It identifies three different kinds of stories that can be used to surface culture: the creation story, survival stories, and heroic or successful staffs stories.  It also recommends using a mind map to help illustrate these stories to staff.

The remainder of the book shows you how to apply what you’ve learned from the ROC process, and suggests making at least a cursory assessment of organizational culture a part of your development activity.

In the preface, Peter J. Brinckerhoff recalls some wisdom given to him from an executive director about why nonprofit staff and volunteers show up each day.  He stated that there are two reasons: “Our mission, and the way we treat each other.” This truth stuck with Brinckerhoff over the years, and conveys how important understanding the relationships (and culture) inside an organization can be to fulfilling its mission.

This book is available in the New York, DC, and San Francisco libraries under call number 600 TEE:

The Nonprofit Organizational Culture Guide: Revealing the Hidden Truths that Impact Performance by Paige Hull Teegarden, Denice Rothman, and Paul Sturm.  Jossey Bass, 2011.

Robert Bruno
Catalog/Reference Librarian, The Foundation Center

Here is a Google Books preview: 

 

 

Nonprofit Branding: What Sets You Apart from the Rest?

When focusing on the outcomes of services that organizations provide, nonprofit leaders may overlook the communications efforts that can increase support and strengthen their position to have greater impact.

Consultant Sarah Durham notes that early-stage organizations find themselves creating logos and brochures as needed in a process she calls “accidental branding.” Groups may find themselves working reactively rather than proactively in their communications efforts.

In her new book, Brandraising, Durham provides tips to help your organization develop a a strategic approach to distinguish itself from other groups that are also providing excellent services. Durham covers several topics:

-Find out how to define and use your nonprofit’s “personality”
-Learn how to develop the right logo and use typography effectively
-Understand how to improve the experience of you stakeholders online and in person
-Identify the steps for relaunching your brand

To learn more, look in our library’s New Books section for Brandraising: How Nonprofits Raise Visibility and Money Through Smart Communications (Jossey-Bass, 2009).

Click here for a Google Books preview.

Tip: Identify other articles and books in the Catalog of Nonprofit Literature on nonprofit marketing and communications with this prepared search.

Philanthropy Chat

Philanthropy Chat is the Foundation Center’s series of podcasts featuring experts in the field of philanthropy and fundraising. Listen to our latest interviews:

Tobie Stein, the director of the Masters of Fine Arts Program in Performing Arts Management at Brooklyn College and author of Performing Arts Management: A Handbook of Professional Practices, describes the fundraising environment for performing arts groups and provides guidance for organizations preparing for their next fundraising campaign. Listen

Paul Firstenberg, author of The 21st Century Nonprofit: Managing in the Age of Governance, 2nd ed. (a Foundation Center publication), explores transparency and accountability, board recruitment issues, the development profession, challenges for executive directors, and capacity building for small nonprofits. Listen

Shelly Cryer, author of The Nonprofit Career Guide: How to Land a Job That Makes a Difference, talks about transition rates in the arts sector, accountability standards, becoming an executive director, and preparing for a career in the nonprofit sector. Listen

Find more podcasts in our Audio Archive.

Risks and Rewards of Strategic Partnerships

Are you in the process of forming a strategic alliance? The book, The Power of Partnership, helps organizations think about key questions to consider when partnering with other nonprofits or businesses.

For example:

What goals can the potential partner help your nonprofit achieve?

Do the organizations have missions, cultures, and values that are compatible?

What would happen if the partnership failed?

It is important to asking these questions early so that you can balance the benefits and risks before entering any agreements. In addition, respondents to a questionnaire conducted for the book identified warning signs that your organization might watch out for:

Is the potential partner showing a lack of commitment?

Does it seem like it will be an unequal relationship?

Find out more about this topic in The Power of Partnership: Principles and Practices for Creating Strategic Relationships Among Nonprofit Groups, For-Profit Organizations, and Government Entities (2008), a book written by the Plexus Consulting Group and published by ASAE & The Center for Association Leadership and the U.S. Chamber of Commerce.

See related resources

The Nonprofit Paradigm Shift: Are You Ready to Think Differently?

During a meeting, a consultant tells you he can help plan a fundraising event that will triple the amount of net revenue that you have typically generated in the past. Here’s the catch: The fundraising costs may reach 50% of total revenues, a percentage that you think is too high.

On the one hand, the additional funds would help you scale your operations and have a greater impact. You donors, however, may be more concerned about the costs for the event than the increase in net revenue.

Dan Pallotta’s examines this dilemma in his new book, Uncharitable: How Restraints on Nonprofits Undermine Their Potential. He argues that the nonprofit mindset can sometimes be counterproductive, discouraging organizations from taking advantage of tools of capitalism. While spending more funds to advertise, hire the best staff, or building capacity will increase overhead costs, Pallota maintains that organizations will benefit in the long run.

To help readers understand the need for a paradigm shift in the sector, Pallotta traces the origins of society’s nonprofit ethic, explains some of the challenges that result from it, and discusses the limits of common nonprofit efficiency measures. He includes a case study of his company to illustrate his key points.

Uncharitable is published by Tufts University Press, 2008.

A preview is available on Google Books

Nonprofit Collaboration

Nonprofits often partner with other groups to achieve mutual objectives more effectively and to make the most of limited financial resources. In addition, some funders may require grantees to work collaboratively. The next time you visit the Foundation Center, ask to see our collection of materials that will increase your understanding of various partnership opportunities. Here are several examples:

Books

Butterfoss, Frances Dunn. Coalitions and Partnerships in Community Health. 1st ed. San Francisco, CA: Jossey-Bass Publishers, 2007. xxv, 579 p. Call Number: 230 BUT
The step-by-step guide for developing partnerships to improve public and community health is written for seasoned professionals as well as novices. Discusses why partnerships are important and explains how to build and sustain them. Chapter 10 provides an overview on funding and resource development for coalitions.

Hoskins, Linda and Emil Angelica. Forming Alliances: Working Together to Achieve Mutual Goals. Saint Paul, MN: Fieldstone Alliance, 2005. viii, 96 p. Call Number: 609 HOS
Because more donors are looking for collaborative efforts among nonprofits, the book is addressed to both agency leaders and funders, explaining the alliance continuum, the challenges and pitfalls of collaborations, as well as the benefits. One chapter discusses means for furthering an existing partnership. Contains numerous worksheets, sample letters of agreement, and other helpful tools.

La Piana, David. The Nonprofit Mergers Workbook: The Leader's Guide to Considering, Negotiating, and Executing a Merger. St Paul, MN: Amherst H. Wilder Foundation, 2000. viii, 228 p. Call Number: 609 LAP MER
The initial chapters explain the different forms of mergers available to nonprofits; following this are steps for an internal assessment and for the process of identifying a potential merger partner. Typical problems, negotiating strategies, funding issues, and steps involved in implementation are explained. Appendices include various samples, such as ads seeking a partner, confidentiality agreements, and implementation plan.

Manley, Linda Schechter and Neil Stevenson. Building Successful Collaborations: A Legal Guide for Nonprofits. New York, NY: Lawyers Alliance for New York, 2007. 76 p.  Call Number: 609 MAN
The booklet helps nonprofits analyze the benefits and risks of collaboration. A due diligence checklist is included to help identify appropriate collaborators. The guide also discusses the lawyer’s role, the negotiation process, the written agreement, and collaboration management. The appendices contain sample agreements in the area of workforce development.

Ray, Karen. The Nimble Collaboration: Fine-Tuning Your Collaboration for Lasting Success. Saint Paul, MN: Amherst H. Wilder Foundation, 2002. x, 120 p. Call Number: 609 RAY
Though collaborations can be complicated, the advice provided by the author offers a method--based on three precepts--for improving the flexibility and efficiency of these relationships. Includes sample documents for governance arrangements.

Articles

Ebaugh, Helen Rose; Janet S. Chafetz, and Paula Pipes. “Collaborations With Faith-Based Social Service Coalitions.”  Nonprofit Management & Leadership, vol. 18 (Winter 2007): p. 175-91.
Presents findings from the first national survey of faith-based coalitions in the United States. The authors explore how faith-based coalitions collaborate with other faith-based groups, as well as secular organizations.

Haider, Don. “Uniting for Survival.”  Stanford Social Innovation Review, vol. 5 (Summer 2007): p. 52-5.
The case study examines the ways that four Chicago-area cancer support centers collaborated before forming a fifth nonprofit to leverage their resources.

Hung, Priscilla. “Time to Merge? Fundraising and Financial Implications.”  Grassroots Fundraising Journal, vol. 28 (January-February 2009): p. 4-7.
Hung elaborates on seven lessons that were learned in negotiating the merger, over two years, of the GIFT organization with Grassroots Fundraising Journal.

Wei-Skillern, Jane and Sonia Marciano. “The Networked Nonprofit.”  Stanford Social Innovation Review, vol. 6 (Spring 2008): p. 39-43.
The article discusses the way that small nonprofits can accomplish as much as or more than their larger peers by building networks with other like-minded organizations. Emphasizes that in order to build capacity in this way, a nonprofit must focus on its mission rather than its organization, and on serving as a node rather than a hub. Provides detailed examples of nonprofits that have succeeded through partnerships with other nonprofits, local governments, and additional institutions.

A listing of collaboration resources on the Internet is available on the Lodestar Foundation website.

Human Resources Administration for Smaller Nonprofits

Smaller organizations, often focused on their missions and programs, may sometimes neglect key human resource functions. Groups may lack the staff with the expertise to deal with compensation management, benefits administration, or compliance issues.

For nonprofits considering assistance from an external provider, have a look at the article “When is HR Outsourcing Right for Your Organization?” from the Fall 2008 issue of Nonprofit Quarterly. The article provides examples and includes a listing of outsourcing companies.

Another option may be for organizations to share human resources staff. A well-publicized example from a few years ago is the Human Resources Collaborative, which has received an award from the Pittsburgh Human Resources Association for its service model. We may see more of these partnerships, as organizations seek to reduce costs in this difficult economic environment.

What are your experiences with HR outsourcing or collaborations?

-Jimmy Tom

Organizations We Believe In

Charismatic individuals have the ability to inspire followers and offer hope during challenging conditions. What about charismatic organizations? According to consultants Shirley Sagawa and Deborah Jospin, charismatic nonprofits build their social capital and have strong internal and external relationships that can help generate enduring support from the community.

A charismatic organization must be dedicated to its mission, have a strong organizational culture, make decisions based on data, promote innovation, and hire and retain the right staff. With these core competencies in place, the group also needs to develop strategies for effective communication, outreach, and community involvement.

Sagawa and Jospin provide examples and lessons to help nonprofit leaders develop high-impact organizations and attract supporters in The Charismatic Organization: 8 Ways to Grow a Nonprofit That Builds Buzz, Delights Donors, and Energizes Employees (John Wiley & Sons, 2008).

-Jimmy Tom

Managing Performing Arts Organizations

As mentioned earlier, the Foundation Center is offering a number of new resources as part of Funding for Arts Month. For example, when browsing the new books section at our library/learning centers, look for Performing Arts Management: A Handbook of Professional Practices (2008). Tobie S. Stein and Jessica Bathurst’s have written a comprehensive textbook based on input from more than 150 arts management professionals.

To help your organization secure funding sources, the authors have included a sample development plan, corporate foundation proposal, and even a tele-fundraising script. Managers who are trying to understand the structure of arts groups can examine the various organizational charts provided in the book.

Published by Allworth Press, the volume also discusses nonprofit incorporation, financial management, marketing, and other operational issues.

Related Information:

-Search the Catalog of Nonprofit Literature for additional arts-related books and articles in the Foundation Center library collections.

-If you are searching for online resources, explore the new Focus on Arts Funding section of our web site that contains interactive charts, foundation-sponsored reports, RPFs, and special events.