Growing in a Time of Scarcity:

Transcription

1 Northeast Minnesota Nonprofit Summit Growing in a Time of Scarcity: Strengthening th Positions for Growth May 1, 2012 Renae Oswald-Anderson, Director, ReDesign Services MAP for Nonprofits Jeff Corey, Executive Director 1 Roof Community Housing Cliff Knettel, Deputy Director 1 Roof Community Housing

2 MAP for Nonprofits A 32-year-old nonprofit organization founded by Twin Cities area corporations and community leaders to unleash the power of nonprofit organizations through effective management. t 2

3 Our Objectives Today Learn about the different forms of realignment and partnership. Consider your organization s partnership potential and the possibilities of combining resources to achieve more. Learn about the opportunities i and challenges from executives who have recently completed a realignment process. 3

4 ReDesign Services Supporting nonprofit organizations in the exploration and implementation of strategic realignments including: mergers, program transfers, joint ventures, or parent-subsidiary relationships. Funded through client fees, foundation support, and the Greater Twin Cities United Way. 4

5 The Need Funding cutbacks from all sources Increasing: operational costs demand for services competition for charitable dollars demand for accountability ty 5

6 The Opportunity Nonprofits are beginning i to view mergers and other forms of realignment as strategic decisions to expand programmatic or geographic scope, while strengthening their competitive position. 6

7 The Community Benefit Nonprofits improve service sustainability Funding used more effectively to address needs through more effective and efficient nonprofit organizations 7

8 ---Contract or MOU Change in corporate structure 8

9 Realignment Options Merger: Previously separate organizations completely combine program, administrative, and governance functions. Program Transfer: One organization spins off or transfers administration of one or more of its programs to another organization. 9

10 Realignment Options cont Joint Venture Corporation: An integration that includes the creation of a new organization. Partner organizations share governance of the new organization. Parent-Subsidiary: An integration of some administrative functions and programmatic services. The identity of the original organization remains intact. -Definitions in part from 10

11 Collaboration Highlights Collaboration or realignment is the means, not the end. Weigh the pros and cons carefully against the goal of the collaboration to come up with a Go No Go decision. 11

12 Small Group Discussion Question How will a collaboration or partnership advance your mission or maintain services and delivery in today s economy? 12

13

14 ReDesign Services Realignment Model Step-by-Step Process Initial Assessment with Board Chair/Executive Director Leadership Team Joint Committee Common Understandings Organizational Name Governing Structure Staffing and Management 14

15 Organizational Realignment Survey The Organizational Realignment Survey is a face-to-face interview tool designed to assess organizational readiness, and organizational capacity. 15

16 Which do you believe is harder for people- dealing with uncertainty or adapting to change? 16

17 Best Practices Create a clear vision of the new organization. Pay attention to organizational culture and integration issues. Strong board and staff leadership is a must. Deal with key issues early and directly. 17

18 Best Practices cont Use a structured realignment model with a defined decision making process Anticipate cost in time and dollars to complete the process Involve outside experienced neutral party Develop a communications plan 18

19 MAP for Nonprofits

20 Northeast Minnesota Nonprofit Summit Thank You Renae Oswald-Anderson Director, ReDesign Services Jeff Corey, Executive Director Cliff Knettel, Deputy Director