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Follow the instructions in the file, posts in substantive responses no less than 80 words per response with attention to current realities and applications.

FORUM 1: Nonprofits are notorious for being inadequately staffed and or funded. Because money is scrutinized so closely and carefully there are many things that are not a priority and often paying management and staff falls into a low priority category. Nonprofits often lack the resources to pay a competitive wage and often managers stay because of the worthwhileness of the job they are performing but worthwhileness does not pay the bills and lack of fair compensation can lead to an inordinate amount of management turnover. The first thing that must be addressed is the notion that the job calling is so much more rewarding than the job benefits, bonuses, and rewards. It is believed that nonprofit workers work for “ideological currency” and form an ideological contract with their nonprofits, (Chen, 2014). While on a philosophical level this is probably absolutely true, nonprofit workers report that their desire for financial security and benefits is as high as their altruistic motivation, (Chen, 2014). Employee turnover and new employee training can become exceeding costly and looking for ways to keep job satisfaction and employee retention levels high are a priority for many nonprofits. Gazley (2009 as cited in Armstrong et al., 2009) observes that low wages, heavy caseloads, and excessive regulations are causing employee dissatisfaction, and in turn, increased turnover. While the challenge of retaining employees is not unique to nonprofit organizations, research shows that "nonprofits have higher annual employee turnover than government and business; 3.1 percent, compared to 2.7 percent in the business sector and 1 percent in the government sector"

Some of the ways that organizations were able to retain their managers that had a substantial impact and low cost were by offering professional development opportunities, family-friendly job benefits such as flextime, telecommuting, family leave time, transportation subsidies, health benefits, career ladders, and childcare and eldercare subsidies. Another way to retain managers was through "public recognition and reverse mentoring, and reward longevity through anniversary gifts" (Gazley, 2009 as cited in Armstrong et al., 2009). Earned income strategies also have a place as well. Partnerships with local businesses to explore potential money-making endeavors or even reassess the endeavors already in place to streamline and make sure that the best procedures are in place is a terrific way to start.

Reference

Armstrong, Liz; Bluitt-Fisher, Jocelyn; Lopez-Newman, Lori; Paul, Diana R.; and Paul, Keith R., (2009) "Nonprofits in Crisis: How to retain employees in the nonprofit sector" UNLV Theses, Dissertations, Professional Papers, and Capstones. 810. http://dx.doi.org/10.34917/2150726

Chen, C.-A. (2014). Nonprofit Managers’ Motivational Styles: A View Beyond the Intrinsic-Extrinsic Dichotomy. Nonprofit & Voluntary Sector Quarterly, 43(4), 737–758.

FORUM 2: Ability to adapt and change, and to meet needs, are characteristics of financially stable organizations. Funding sources’ priorities place a burden of adaptability on nonprofit organizations. It is a matter of marketing and is a necessary evil to secure funding and clients. Current literature covers the conundrum of duality of profit/mission. Traditional organizations battle with breaking the mold of standard models for fund-seeking and diversification strategy. The tradition of relying on grants/donations confounds the need for adaptation. Creating an earned income initiative with a full business plan, conceptually tied to the mission, is a daunting undertaking. Social enterprise can provide a means for generating income that could be used to pay an outside professional to fill the management position. Activities that generate earned income, on a grand scale, and aligns with the organizational mission, make great use of available resources. This creates a self-generating process, feeding into the aspects that make the nonprofit what it is.

Many organizations generate earned income of some sort, via activities integrated into their ongoing programs, whether related to the mission or not. Qualified staff with business or industry experience manage the activity or provide oversight, as opposed to nonprofit program staff (Worth, 2021).  This opens the door for numerous options relative to business partnerships and earned income strategies. Corporate partnerships generate earned income (not philanthropy, but an exchange between nonprofit/corporation). This provides an opportunity of quid pro quo, where the professional management needed and funding for paying the position, are at odds. The position could feasibly be filled by a corporate member, eliminating the need for an additional person being hired and paid. Any combination of these two strategies could be used and intertwined to produce the desired outcomes of professional management and increased income/funding.

References

Reeve, K.M. & McClish, S.J. (2018) Earned Income: The secret to success for the nonprofit seeking financial sustainability? Proceedings of the International Association for Business and Society, (29).71-83.

Worth, M. J. (2021).  Nonprofit management: Principles and practices  (6th ed.). Sage Publications, Inc.