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Walking the thin line to non-profit endearment with the public
by Dr Seamus Phan What happens when a non-profit starts to lose its credibility with the concerned public, many of whom are donors? What happens when a non-profit take the litigious path rather than one of mediation and education? What happens when a non-profit takes on a “corporate” feel to management, rather than take the frugal and measured path? Is it wrong, even if it is legally compliant? It is not uncommon for a non-profit to desire to raise more funds, or to build up more reserves. As long as the non-profit is truly altruistic with no hidden agenda, there is no reason for the non-profit to accumulate a reasonable level of funds, or even reserves. After all, much as an individual is usually advised to save up for the rainy days, it is wise to adopt a similar attitude when running a non-profit. However, the public, which are moral stakeholders in a non-profit, whether as donors or advocates, must be aware of where the funds are heading, and how much go to expenses (such as paying salaries of paid workers, operating expenses, as well as reserves). While the legal framework may sometimes provide some leniency and some flexibility, it may be wise for a non-profit to disclose as much as possible, to retain public trust and endear itself to the stakeholders for the long haul. Supplies rather than cash? No one will ever say running a non-profit is easy, or even possible in some difficult circumstances. I have been privileged to be appointed as deputy secretary general (pro bono volunteer) for a small non-government organization providing humanitarian aid to places such as Cameroon and Peru, and all the volunteer diplomats, including the president, have always faced tremendous difficulty in raising funds directly. However, the president found a much more useful way, that of raising usable supplies, including medical supplies, and donated old computers (usable but written off due to obsolescence by corporations), sewing machines, and such, to the beneficiaries through partner missions. After all, while cash can be manipulated, supplies are often only useful to the beneficiaries. Likewise, in some of my own efforts in this region, I have found that donating sacks of rice, are often more agreeable to fellow friends who are willing to donate in kind, and the beneficiaries are often happier to receive rice rather than cash anyway. Likewise, for many non-profits, it is quite possible to sponsor supplies and equipment directly, rather than give cash directly. For example, if you are a corporate sponsor, you may be able to sponsor a full dialysis machine to a renal care center, especially if you are manufacturing such machines. Likewise, if you are a bedding manufacturer, you might be able to simply donate finished bedding products to elderly care centers and hospitals. For the physically challenged, good and modern wheelchairs and other mobility aids are always welcome. But of course, not every non-profit can benefit directly from supplies, and some must receive cash donations. For such, it may be good for non-profits to approach corporate sponsors with specific plans on why and how the funds will be used, with full transparency and accountability to allow sponsors to know what will be done. Progress reports to such sponsors would also be useful. Salaried or volunteers? The human race is constantly battling itself, with the good balancing evil. For every evil force, there will always be an equal and opposite good force to counter-balance it. Therefore, while we may imagine that every person is selfish to some extent, there is also a humane good heart within everyone as well. You can always find some who volunteers at the local community care center, the local Rotary Club chapter, or even volunteer as a senior board member pro bono at some non-profit. Therefore, should we only push a non-profit to be completely run by salaried workers? Should there be a frugal balance between salaried workers and volunteers with a humane heart? Many times, there will also be people who are willing to help manage or run a non-profit without much care to remuneration. The community Rotary Clubs have been able to achieve a great deal in helping local and remote communities, all through funds raised by and physical labor provided for by its own members, all of whom are volunteers at the grassroots level. Likewise, there are non-profits and non-government organizations that are founded by volunteers to further a humanitarian cause, and not everyone are salaried. As non-profits grow in size, there may be a necessary to engage full-time employees to ensure a stable organization that will allow changes in boards and volunteers. However, it is still important to be prudent in employment practices. While there may be best practices and recommended guidelines to engaging employees in any organization, it is still critical to remember, as a recruiter for a non-profit, to look for people who have a passion to serve others and are not pursuing a “corporate career”. Therefore, between a highly talented individual who demands a market rate for remuneration and even bonus benefits, and another with a true desire to serve others and who does not care too much for high pay, it may be wiser to engage the one with a desire to serve, since he is more likely to stay in the job, rather than move on at the next best corporate job offer with a better promotion or benefits scheme. Yes, everyone needs to feed himself and his family, but many people are contented and able to feed a whole family on a prudent spending pattern, and their joy may be derived simply from being able to benefit and serving others. Yes, there are such people around us. When crises strike No organization, whether government, corporate, or non-profit, can expect a smooth sailing ride into the sunset. There will be ups and downs in its organizational lifespan. When a whistle blower exposes the inner mechanics of an organization, non-profit or not, it is important to view this as an opportunity to improve, rather than become unnecessarily defensive. For example, if someone exposes some problems in the workings of a non-profit, it is important to take the high road to educate and mediate, and accept the failings in the past, with a firm action plan and moral promise to fix things for the benefit of the public. After all, a corporation is driven by profits, but a non-profit, by definition to its name, should be driven by humane care to the community, and not by money alone. Therefore, it may be unwise to resort to the same tactics corporations may have to do, such as engaging lawyers, to “defend” its name. For a non-profit, it is best to endear itself to the public, since the public are the donors to ensure the sustainability of a non-profit. A corporation sells something to get something in return, but a non-profit offers nothing to the public other than a promise to serve the less fortunate in a community, and the public donate money to fund such promises to the community. Break your bread and give it away When a non-profit is privileged to have gained tremendous public trust and managed to garner a sizable reserve, it may be important to look around the community to spread the excess funds around. After all, donations will never be infinite, much as business revenue of commercial organizations can never be infinite as well. Corporations will grow, and either hit a plateau, or even decline. Sometimes, corporations may be acquired, or be broken apart into smaller companies. Therefore, since non-profits rely on public goodwill, it is important not to force other non-profits out of a limited donor pool. By spreading excess reserves around, a successful non-profit will not only garner greater public support morally, but also likely financially in the long haul, since it has demonstrated that it is altruistic enough to help other less fortunate non-profits, to ensure that the greater community is served, without prejudice to any group. Such a move is also strategic, as it also allows the non-profit to continue to solicit funds, when necessary, from the public in the future, with an understanding that any excess will be given away to other deserving non-profits. Even as young children, we have been taught to give or share our food and snacks with our younger siblings, and so this is merely a continuation of an age-old wisdom of sharing with the less fortunate or less able, whoever they may be. Faith-based responsibility As a journeyman and teacher, I have always be moved by others who can forsake their lives for the sake of others. In a Christian faith, we may exalt some of them as saints. In Buddhism, we exalt them as bodhisattvas (Sanskrit for “great beings of compassion”). The human race is in a constant struggle for happiness, and not everyone gets the same dose. However, as long as we can attach an element of faith, of whatever path, to being responsible in helping others, I humbly believe that such a path can only be straighter and less worrisome. To me, there is no greater joy and privilege as the ability to serve and benefit others. As HH Dalai Lama said, “If you want others to be happy, practice compassion. If you want to be happy, practice compassion.” Dr Seamus Phan is a leading author, keynote speaker, trainer and naturopathic philosopher. Seamus is one of Asia’s early Internet pioneers and bloggers. Seamus consults and speaks for international companies, governments and emerging enterprises around the world. He is the bestselling co-author of Dot ZEN, a business leadership book, and This Body This Life, a holistic health and fitness book. Copyright (c) 1990-2005 Seamus Phan. All rights reserved. END | |||||||||
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