Nonprofit Management. TH 166 Spring 2007

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Nonprofit Management

TH 166 TH 166 Spring 2007 Spring 2007

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Sources

•

• Managing a Nonprofit Organization in the Managing a Nonprofit Organization in the 21

21stst _Century_Century_{; Thomas Wolf}_{; Thomas Wolf}

•

• Management and the ArtsManagement and the Arts; William Byrnes; William Byrnes •

• Theatre Arts Department HandbookTheatre Arts Department Handbook; CWU; CWU •

• The Performing Arts in a New EraThe Performing Arts in a New Era; The ; The Rand Corporation

Rand Corporation •

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Elements of Nonprofit

Management

•

• Understanding Nonprofit OrganizationsUnderstanding Nonprofit Organizations •

• The Board of DirectorsThe Board of Directors •

• Assembling the workforceAssembling the workforce •

• Personnel PolicyPersonnel Policy •

• MarketingMarketing •

• Financial ManagementFinancial Management •

• Fund RaisingFund Raising •

• PlanningPlanning •

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Understanding Nonprofit

Organizations

•

• Must have a public service missionMust have a public service mission •

• Must be organized as a notMust be organized as a not--forfor--profit or profit or charitable corporation

charitable corporation •

• Governance structure must preclude selfGovernance structure must preclude self--interest interest and private financial gain

and private financial gain •

• Must be exempt from paying federal tax (501cMust be exempt from paying federal tax (501c--3)3) •

• Must possess the special legal status that Must possess the special legal status that

stipulates gifts made to them are tax deductible stipulates gifts made to them are tax deductible

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Responsibilities of the Board of

Trustees

•

• Determine mission and set policy; ensure the Determine mission and set policy; ensure the charter and law are followed

charter and law are followed •

• Long term planningLong term planning •

• Establish fiscal policy and boundariesEstablish fiscal policy and boundaries •

• Provide adequate resources through direct Provide adequate resources through direct contribution and a commitment to fundraising contribution and a commitment to fundraising •

• Select, evaluate and terminate (if necessary) the Select, evaluate and terminate (if necessary) the chief executive

chief executive •

• Maintain a link with the community to promote Maintain a link with the community to promote the work of the organization

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NOT Responsibilities of the

Board of Trustees

•

• Engage in dayEngage in day--toto--day operationsday operations •

• Hire staff Hire staff •

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Assembling the workforce

•

• Salaried staffSalaried staff •

• VolunteersVolunteers •

• Independent contractorsIndependent contractors •

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Personnel Policy

•

• Organization chartOrganization chart •

• Job descriptionsJob descriptions •

• Policies and proceduresPolicies and procedures

–

– Employment and payEmployment and pay –

– Staff evaluationsStaff evaluations –

– Conflict-Conflict-ofof--interest policyinterest policy –

– Termination and grievance policyTermination and grievance policy –

– Sexual harassment policySexual harassment policy –

– General office practice and proceduresGeneral office practice and procedures

•

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Marketing

•

• ImageImage •

• Marketing MixMarketing Mix

– – ProductProduct – – PromotionPromotion – – PricePrice – – PlacePlace •

• Market ResearchMarket Research

– – EnvironmentEnvironment – – ThreatsThreats – – OpportunitiesOpportunities – – PerceptionsPerceptions –

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Nonprofit Management

TH 166 TH 166 Fall 2006 Fall 2006

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Financial Management

•

• Financial (Calendar) vs. Fiscal YearFinancial (Calendar) vs. Fiscal Year •

• BudgetBudget

–

– Income (Revenue)Income (Revenue) –

– Expense (Expenditures)Expense (Expenditures)

•

• Project BudgetingProject Budgeting •

• Contingency/ReserveContingency/Reserve •

• Budget ProcessBudget Process •

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Budget Process

•

• Make a wish listMake a wish list •

• Cost out the listCost out the list •

• Allocate incomeAllocate income •

• CompareCompare •

• Set prioritiesSet priorities •

• Adjust and balanceAdjust and balance •

• ApproveApprove •

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Adjust and Balance

Cost Savings Strategies

1. Reducing real wage growth 1. Reducing real wage growth

2. Choosing productions or pieces that require 2. Choosing productions or pieces that require

fewer artists and/or fewer scene changes fewer artists and/or fewer scene changes 3. Hiring fewer expensive guest artists

3. Hiring fewer expensive guest artists

4. Avoiding newer works to avoid royalty payments 4. Avoiding newer works to avoid royalty payments

to creators to creators

5. Cutting rehearsal times 5. Cutting rehearsal times

6. Developing productions in low

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Adjust and Balance

Revenue Savings Strategies

7. Producing lavish programs featuring celebrity artists to 7. Producing lavish programs featuring celebrity artists to

attract large audiences (blockbusters) attract large audiences (blockbusters) 8. Producing familiar, traditional programs (

8. Producing familiar, traditional programs (““warhorseswarhorses””) ) designed to attract large audiences (the

designed to attract large audiences (the ““NutcrackerNutcracker”” strategy)

strategy)

9. Tying primary programming to sales of auxiliary products 9. Tying primary programming to sales of auxiliary products

such as T

such as T--shirts, collectibles, etc.shirts, collectibles, etc.

10. Increasing the number of performances of the same 10. Increasing the number of performances of the same

production production

11. Maximizing the audience per performance by 11. Maximizing the audience per performance by

increasing the size of performance venues increasing the size of performance venues

12. Targeting niche markets that have predictable, loyal 12. Targeting niche markets that have predictable, loyal

audiences. audiences.

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Adjust and Balance

Financing Savings strategies

13. Productions jointly financed by firms in 13. Productions jointly financed by firms in

the for

the for--profit and nonprofit sectorsprofit and nonprofit sectors

14. Adoption by nonprofits of commercial 14. Adoption by nonprofits of commercial

financing techniques such as for

financing techniques such as for--profit profit subsidiaries or charitable component subsidiaries or charitable component

mutual funds mutual funds

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Fundraising

•

• Unrestricted gifts and individual Unrestricted gifts and individual contributions

contributions •

• Corporate supportCorporate support •

• Foundations and public agenciesFoundations and public agencies •

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The Ten Commandments of

Fundraising

I

I –– Only prospectors find goldOnly prospectors find gold II

II –– Be sure that courtship precedes the proposalBe sure that courtship precedes the proposal III

III –– Personalize the pitchPersonalize the pitch IV

IV –– If you want bread, you need doughIf you want bread, you need dough V

V –– When asking for money, assume consentWhen asking for money, assume consent VI

VI –– In written requests, if you canIn written requests, if you can’’t scan it, can it.t scan it, can it. VII

VII –– In designing budgets, use the old mathIn designing budgets, use the old math VIII

VIII –– When in doubt, communicate in EnglishWhen in doubt, communicate in English IX

IX –– DonDon’’t take a no personallyt take a no personally X

X –– No matter how many times you said thank you, say it No matter how many times you said thank you, say it again

again

Managing a Nonprofit Organization in the 21st Century Managing a Nonprofit Organization in the 21st Century

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Planning

•

• ShortShort--, Intermediate, Intermediate--, and Long Range , and Long Range Plans

Plans •

• Strategic and Operational PlansStrategic and Operational Plans •

• SingleSingle--Use PlansUse Plans •

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Planning

Every good plan must answer Every good plan must answer……

– – WhyWhy – – WhatWhat – – WhenWhen – – WhereWhere – – WhoWho

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Excuses for Not Planning

•

• Takes too much time and effortTakes too much time and effort •

• Planning is too expensivePlanning is too expensive •

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The Planning Process

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Leadership

“

“the ability of an individual to influence, the ability of an individual to influence, motivate, and enable others to contribute motivate, and enable others to contribute

toward the effectiveness and success of the toward the effectiveness and success of the

organizations of which they are members" organizations of which they are members"

R.J. House,

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Management vs. Leadership

•

• Managers administer, leaders innovate Managers administer, leaders innovate •

• Managers ask how and when, leaders ask what and why Managers ask how and when, leaders ask what and why •

• Managers focus on systems, leaders focus on people Managers focus on systems, leaders focus on people •

• Managers do things right, leaders do the right things Managers do things right, leaders do the right things •

• Managers maintain, leaders develop Managers maintain, leaders develop •

• Managers rely on control, leaders inspire trust Managers rely on control, leaders inspire trust •

• Managers have a short-Managers have a short-term perspective, leaders have a longerterm perspective, leaders have a longer- -term perspective

term perspective •

• Managers accept the status-Managers accept the status-quo, leaders challenge the statusquo, leaders challenge the status--quo quo •

• Managers have an eye on the bottom line, leaders have an eye on Managers have an eye on the bottom line, leaders have an eye on the horizon

the horizon •

• Managers imitate, leaders originate Managers imitate, leaders originate •

• Managers emulate the classic good soldier, leaders are their ownManagers emulate the classic good soldier, leaders are their own person

person •

• Managers copy, leaders show originality Managers copy, leaders show originality

Warren Bennis, On Becoming a Leader Warren Bennis, On Becoming a Leader

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Front of House Functions

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William J. Brynes,

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William J. Brynes,

William J. Brynes, Management and the ArtsManagement and the Arts

Production Stage Manager

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General Management Positions

•

• Artistic DirectorArtistic Director

•

• General ManagerGeneral Manager •

• Producing ManagerProducing Manager •

• Managing ProducerManaging Producer •

• Managing DirectorManaging Director •

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Financial Management Positions

•

• Director of FinanceDirector of Finance •

• ComptrollerComptroller •

• Director of Business Information SystemsDirector of Business Information Systems •

• AccountantAccountant •

• Business ManagerBusiness Manager •

• BookkeeperBookkeeper

•

• Box Office ManagerBox Office Manager

•

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Fundraising Management

Positions

•

• Director of FundraisingDirector of Fundraising •

• Special Events DirectorSpecial Events Director •

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Marketing Management

Positions

•

• Director of MarketingDirector of Marketing

•

• Marketing Manager or Market AnalystMarketing Manager or Market Analyst •

• Director of MembershipDirector of Membership •

• Director of Audience DevelopmentDirector of Audience Development •

• Director of Public RelationsDirector of Public Relations •

• Press RepresentativePress Representative •

• Director of Community RelationsDirector of Community Relations •

• Director of Advertising SalesDirector of Advertising Sales •

• Director of PublicationsDirector of Publications •

• Ticket Services ManagerTicket Services Manager •

• Group Sales ManagerGroup Sales Manager •

• Subscription Sales ManagerSubscription Sales Manager •

• Telemarketing ManagerTelemarketing Manager •

• Merchandise Marketing ManagerMerchandise Marketing Manager •

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Production and Operations

Management Positions

•

• Library Manager/DramaturgLibrary Manager/Dramaturg •

• Production ManagerProduction Manager

•

• Facilities ManagerFacilities Manager •

• Office ManagerOffice Manager

•

• Stage Systems ManagerStage Systems Manager •

• Company ManagerCompany Manager •

• House ManagerHouse Manager •

• Production Stage ManagerProduction Stage Manager •

• Technical DirectorTechnical Director

•

• Tour ManagerTour Manager •

• Advance Stage ManagerAdvance Stage Manager •

• Internship DirectorInternship Director •

• School Director or AdministratorSchool Director or Administrator •

• Director of SecurityDirector of Security •

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Questions?

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