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News Update: Who Are You? Mergers don't mean lost identity By Thomas A. McLaughlin If there is a common concern voiced by senior managers considering an organizational merger, it is lost identity. This fear is nearly universal, especially with smaller organizations. Usually it is expressed in terms such as “we’ll get swallowed up” or “we’ll get lost in the shuffle.” The fear is of forced, undesired assimilation. Mergers don’t have to mean lost identity. But this statement is only as strong as its last word, and there is little instinctual agreement about what that simple word “identity” really means. Is it the corporate structure? Is it the sign in front of the main building? Is it the logo? Is it the culture of the organization or the image community members have of it? To different people, the organization’s “identity” almost certainly means different things. So it might be easier to pinpoint what is not a part of organizational identity. Let’s unpack the common elements of organizational identity in many nonprofits. It starts with a simple equation: one program=one site=one corporation. For many people, especially employees and volunteers of small nonprofits, these three elements are fused. In this view, a single program is operated at a single site by a single corporation. In fact, the first two elements are typically the only important ones in the equation since most people give little thought to the corporate status of nonprofit programs. Click Here to Read More...
More News... N.J. Imposes Social Services Contract Comp Caps Any nonprofit contracted to work with the New Jersey Department of Human Services or Department of Children and Families will now be subject to caps on how much of the contract can be apportioned to CEO salaries and employee benefits. The plan, originally unveiled by Gov. Chris Christie this past April, went into effect July 1. The move is being watched by social service agencies across the nation as a possible precursor to what might happen in other states that are strapped for cash, as is New Jersey. The Amendments to Third Party Contract Language document, sent to both departments, include full-time salary compensation limitations applicable to each provider agency. If a provider agency has gross revenue of more than $20 million, the limitation for reimbursement for the salary of CEOs and executive directors would be $141,000. The cap for those with budgets between $10 million and $20 million would be $126,900. The cap for organizations with budgets between $5 million and $10 million would be $119,850 and $105,750 for budgets less than $5 million. This salary limitation excludes physicians and advanced practice nurses. Click Here to Read More...
Maintaining Workforce Remains A Problem For Nonprofits
Nearly 40 percent of nonprofits lack adequate staff to deliver programs and services, according to results of a national survey released by the Johns Hopkins University Center for Civil Society Studies. Almost one-third of organizations reported net workforce reductions during the six months preceding the survey (October 2009-March 2010). In contrast, 23 percent reported employment gains during the same period and another 46 percent reported no change, despite facing expanded needs. This comes on the heels of earlier cutbacks. In a previous Johns Hopkins survey, 34 percent of organizations reported eliminating staff positions and 41 percent postponed filling new positions during the six months between September 2008 and March 2009. Click Here to Read More...
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