Nonprofit Management TH 166 Spring 2007
Sources Managing a Nonprofit Organization in the 21 st Century; ; Thomas Wolf Management and the Arts; ; William Byrnes Theatre Arts Department Handbook; ; CWU The Performing Arts in a New Era; ; The Rand Corporation Wikipedia; Leadership
Elements of Nonprofit Management Understanding Nonprofit Organizations The Board of Directors Assembling the workforce Personnel Policy Marketing Financial Management Fund Raising Planning Leadership
Understanding Nonprofit Organizations Must have a public service mission Must be organized as a not-for for-profit or charitable corporation Governance structure must preclude self-interest and private financial gain Must be exempt from paying federal tax (501c-3) Must possess the special legal status that stipulates gifts made to them are tax deductible
Responsibilities of the Board of Trustees Determine mission and set policy; ensure the charter and law are followed Long term planning Establish fiscal policy and boundaries Provide adequate resources through direct contribution and a commitment to fundraising Select, evaluate and terminate (if necessary) the chief executive Maintain a link with the community to promote the work of the organization
NOT Responsibilities of the Board of Trustees Engage in day-to to-day operations Hire staff Make detailed programmatic decisions
Assembling the workforce Salaried staff Volunteers Independent contractors Outside organization service providers
Personnel Policy Organization chart Job descriptions Policies and procedures Employment and pay Staff evaluations Conflict-of of-interest policy Termination and grievance policy Sexual harassment policy General office practice and procedures Personnel Manual
Image Marketing Mix Product Promotion Price Place Market Research Marketing Environment Threats Opportunities Perceptions Organization strengths and weaknesses
Nonprofit Management TH 166 Fall 2006
Financial Management Financial (Calendar) vs. Fiscal Year Budget Income (Revenue) Expense (Expenditures) Project Budgeting Contingency/Reserve Budget Process Cash Flow
Budget Process Make a wish list Cost out the list Allocate income Compare Set priorities Adjust and balance Approve Monitor and amend
Adjust and Balance Cost Savings Strategies 1. Reducing real wage growth 2. Choosing productions or pieces that require fewer artists and/or fewer scene changes 3. Hiring fewer expensive guest artists 4. Avoiding newer works to avoid royalty payments to creators 5. Cutting rehearsal times 6. Developing productions in low-cost locations.
Adjust and Balance Revenue Savings Strategies 7. Producing lavish programs featuring celebrity artists to attract large audiences (blockbusters) 8. Producing familiar, traditional programs ( warhorses( warhorses ) designed to attract large audiences (the Nutcracker strategy) 9. Tying primary programming to sales of auxiliary products such as T-shirts, T collectibles, etc. 10. Increasing the number of performances of the same production 11. Maximizing the audience per performance by increasing the size of performance venues 12. Targeting niche markets that have predictable, loyal audiences.
Adjust and Balance Financing Savings strategies 13. Productions jointly financed by firms in the for-profit and nonprofit sectors 14. Adoption by nonprofits of commercial financing techniques such as for-profit subsidiaries or charitable component mutual funds
Fundraising Unrestricted gifts and individual contributions Corporate support Foundations and public agencies Deferred giving
The Ten Commandments of Fundraising I Only prospectors find gold II Be sure that courtship precedes the proposal III Personalize the pitch IV If you want bread, you need dough V When asking for money, assume consent VI In written requests, if you can t t scan it, can it. VII In designing budgets, use the old math VIII When in doubt, communicate in English IX Don t t take a no personally X No matter how many times you said thank you, say it again Managing a Nonprofit Organization in the 21st Century
Planning Short-,, Intermediate-,, and Long Range Plans Strategic and Operational Plans Single-Use Plans Standing-Use Plans
Planning Every good plan must answer Why What When Where Who
Excuses for Not Planning Takes too much time and effort Planning is too expensive Planning saps organizational initiative
The Planning Process
Leadership the ability of an individual to influence, motivate, and enable others to contribute toward the effectiveness and success of the organizations of which they are members" R.J. House, Culture, Leadership, and Organizations
Management vs. Leadership Managers administer, leaders innovate Managers ask how and when, leaders ask what and why Managers focus on systems, leaders focus on people Managers do things right, leaders do the right things Managers maintain, leaders develop Managers rely on control, leaders inspire trust Managers have a short-term term perspective, leaders have a longer- term perspective Managers accept the status-quo, leaders challenge the status-quo Managers have an eye on the bottom line, leaders have an eye on the horizon Managers imitate, leaders originate Managers emulate the classic good soldier, leaders are their own person Managers copy, leaders show originality Warren Bennis, On Becoming a Leader
Front of House Functions
William J. Brynes, Management and the Arts
Production Stage Manager William J. Brynes, Management and the Arts
General Management Positions Artistic Director General Manager Producing Manager Managing Producer Managing Director Executive Director
Financial Management Positions Director of Finance Comptroller Director of Business Information Systems Accountant Business Manager Bookkeeper Box Office Manager Head Treasurer
Fundraising Management Positions Director of Fundraising Special Events Director Director of Volunteer Services
Marketing Management Positions Director of Marketing Marketing Manager or Market Analyst Director of Membership Director of Audience Development Director of Public Relations Press Representative Director of Community Relations Director of Advertising Sales Director of Publications Ticket Services Manager Group Sales Manager Subscription Sales Manager Telemarketing Manager Merchandise Marketing Manager Concessions Manager
Production and Operations Management Positions Library Manager/Dramaturg Production Manager Facilities Manager Office Manager Stage Systems Manager Company Manager House Manager Production Stage Manager Technical Director Tour Manager Advance Stage Manager Internship Director School Director or Administrator Director of Security Maintenance Supervisor
Questions?