Outreach_Instructional_Case

Background Since 1990, Community Outreach (Outreach) has been working to provide assistance to families in their greatest time of need. With the help of volunteers, the organization provides “assistance to indigent individuals and families.” (Lenk and Donnelly) Through the donations of generous funders, Outreach has been able to assist 22,000 families by providing their basic needs of food, clothing and shelter. In the future, the organization would like to expand its mission by offering assistance to victims of abuse. The organization is managed by a Board of Director’s and Outreach Trustees. The board consists of four positions, president, vice president, secretary, treasurer and two advisors. The Outreach Trustees is comprised of stakeholders from “major corporations and public offices.” The group of Trustees functions as the fundraising arm of the organization. (Lenk and Donnelly) In terms of staff, there are six positions funded by the organization. The positions of operations manager and bookkeeper are both full-time positions. The remaining positions, marketing and administrative support are part-time positions, split between four individuals. The organization has a heavy reliance on volunteers to assist in other areas, including management and coordination of food donations. (Lenk and Donnelly) Community Outreach suffers from a number of problems, “scarce resources, segregation of duties, changing demand for services and high personnel turnover”, just to name a few. (Lenk and Donnelly) This paper will discuss two of the issues ailing Community Outreach and provide appropriate realistic solutions to help revitalized the organization. This paper will also strive to show how using the Five Practices of Exemplary Leadership can aid in this process. Assessment and Solutions One of the problems Community Outreach suffers from is poor accounting practices. Discussions with Rhonda, the bookkeeper, and review of the financial statement have revealed (a) payroll tax errors and late payments leading to fines, (b) $22,000 loss of revenue reflected on the Statement of Activities (c) $5,750 increase in spending on kitchen and office supplies, (d) several miscellaneous checks written o cash with bookkeeper as only signer and (e) organization has never had an official audit. (Lenk and Donnelly) In an effort to rectify this situation, the Board of Directors must be reminded of their fiduciary responsibility to the organization. The board must understand that it is required to maintain an active role in monitoring the organization’s budget and act in the organization’s best interest. Secondly, Community Outreach must have an independent external audit of the organization’s finances. An external audit will allow the organization to objectively determine, whether the accounting records are (a) accurate and complete, (b) prepared in accordance with the provision of Generally Accepted Accounting Principles (GAAP), and (c) present fairly and accurately the organizations financial standing and the results of its financial operations. Once the audit has been completed the Board should consider and vote to allow Community Outreach to hire a qualified Chief Financial Officer (CFO) experienced in budgeting for nonprofit organizations. When hired, the CFO should be required to give a monthly report to the Board of Directors to ensure that they are fully aware of the organization’s financial standing. Additionally, monthly reporting will be helpful in determining the organization’s true cash flow. Monthly reporting will also highlight areas of frivolous spending, help the CEO, CFO and board design a more robust budget for the future and assist in determining organizational fundraising goals. In additional to poor accounting practices, Community Outreach also suffers from scarcity of funds. To increase revenue the Board of Directors and Trustees must make a concerted effort to reach out to current funders. The organization must also expand the reach of its funding base of corporate and individual donors to include government entities, restaurants, grocery stores and hotels. The Board of Directors and Trustees must make targeted special appeals to individuals within their circle of influence to draw them in to the organization. Expanding the funding base will go a long way to increase the organization’s lists of potential funders, volunteers and ultimately, revenue. It may also expand the pool of viable candidates for the organizations Board of Directors. When speaking with funders, leaders must be sure to highlight the need for the organization and what their support would mean to the organization and the community. The organization will also benefit from acquisition mailing to aid in identifying potential donors. (Smith Bucklin & Associates, 2000) Five Principles of Leadership Community Outreach will greatly benefit from connecting its financial plan with its strategic goals. (Balanced scorecard') To do that, leaders can exercise the Five Principles of Exemplary leadership. Model the Way: People follow the person and then the plan. Outreach leaders must be the type of generous committed funders or volunteers they want to attract. By recommitting themselves to the organization’s goals and actively donating their time and effort they will attract the kind of committed dedicated funder they are looking for. Inspire a Shared Vision: People will help you as long as you are trying. Community Outreach leadership’s recommitment to the vision coupled with the action required to move in a positive direction can act as a catalyst to staff and potential donors. Challenge the Process: Think like a for profit organization. Community Outreach leaders must be sure to strategically and financially plan much like a for profit organization. At the end of the day, the organization must have funds that will carry over into the next fiscal year to remain solvent. Community Outreach should definitely work to increase the dollar amount the organization is able to carry over so they may use their feast to fight their famine during lean years or during years of increased program participation. Enable Others to Act by Encouraging the Heart: Community Outreach leaders must capture the head of individuals interested in their organization by encouraging the heart. This can be accomplished through honest; passionate communication about the organization. Honest; passionate communication will tap into the emotions of funders or volunteers and motivate them to believe passionately about the vision of the organization. The organization must also be sure to show appreciation for the efforts of its funders and volunteers. One way of showing recognition is by presenting a plaque to volunteers or board members who have gone above and beyond what is required of them. It is important to let individuals know that their efforts have not gone unnoticed or unappreciated.