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There are three sectors
in an economy. The first is the Public Sector.
The second is the Private Sector. And the third
is the Non-Profit Sector. The Non-Profit Sector
is very important to the Irish economy, employing
8.8 percent of the workforce, along with another
2.3 percent on a voluntary basis. It accounts
for 8.4 percent of G.D.P.
2into3 combines the
skills and experiences of the Private and Non-Profit Sectors in
Management Consulting and Recruitment.
This publication will
offer quarterly insights into the Non-Profit Sector, fundraising,
management consulting, philanthropic trends, and developments at
2into3 itself. The newsletter is intended to inform, educate, and
promote thought and discussion, so please peruse the selected
articles and give us your feedback. We hope you find the items
interesting and useful, and we look forward to hearing from you.
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FEE-PAYING SCHOOLS:
THE
CASE FOR PUBLIC BENEFIT
Private
schools may have a much more public future if they wish to retain their
charitable status, according to educational and government sources.
The social responsibility of fee-paying institutions is causing a buzz
internationally, with advocates on both sides of the issue vocally
defending their positions. The Charity Commission in the UK has warned
fee-paying schools with charitable status that they must justify that
designation or risk losing it.
Such justification must prove that not only the elite or rich can
benefit from private institutions. Schools must create bursaries or
share facilities and programmes with the wider community.
Of
the 1,278 schools in the UK's Independent Schools Council, 1,044 are
charities - earning an estimated 100million pounds in tax breaks
annually.
It is a situation mirrored at home in Ireland, where nearly half of all
fee-paying schools also benefit from a charitable status tax exemption.
But the Irish system is even more controversial, as parents must donate
250euro each year for the exemption to apply - making it easy for
affluent schools to earn the exemption, but leaving it nearly
impossible for schools in disadvantaged areas to do so.
Teaching organisations have denounced the situation as
unfair and segregationist, and educational advocates argue that it
perpetuates the dichotomy of vast opportunities for wealthy children
and limited opportunities for their poorer counterparts.
Fee-paying schools 'are not charities and should not and cannot be
regarded as such,' Fine Gael education spokesman Brian Hayes told the
Irish Independent earlier this year.
Brian
Hayes, Fine Gael Education Spokesman
'If
you charge a fee that by definition excludes people, where is the charity?'
he said. 'Each of these schools should be able to meet a public benefit
test. Are their facilities available to others, how many places are
available for poorer children, can children in the immediate area
attend?
'Before
any charity can claim the generous tax breaks that are available,
should it not follow that a clear test be applied, that goes for
schools as it does for everything else?'
A
set of guidelines is scheduled to be finalised in the UK this year to
more clearly demarcate how schools can justify charitable status -
level of bursaries, extent of facility sharing, etc. The Charity
Commission in the UK has said it will help schools comply with these
guidelines and subsequently keep their status.
In
Ireland, it is likely that fee-paying schools will also take larger
steps towards including the wider community. As national dialogue
increases about social responsibility and Irish society becomes more
introspective, private schools will invariably figure prominently in
ensuing discussions. But the burgeoning nonprofit sector in Ireland has
given rise to expert consultants such as 2into3 which are well placed
to help schools as they bring themselves into line with new ideas and
best practice.
'A
number of private schools have already well-established bursary or
access programmes aimed at the disadvantaged, such as Belvedere College
S.J and Clongowes Wood College S.J.,' said Dennis O'Connor, director of
2into3. 'The motivation behind these schemes is faith-based and
reflects their ethos.
'These
schemes have had a long gestation period as well,' he said. 'As a
result, they are providing a public good and would meet any test that
would be applied here. Many others are sharing facilities but a
significant number of private schools would face some challenges if the
UK guidelines were applied here. Given the length of time it takes to
integrate such schemes effectively into a school, they should be
considered as part of any private school's strategic plan.'
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EXPLORING THE LEADERSHIP DEFICIT IN THE NON-PROFIT
SECTOR
Retirements
and executive departures could leave the nonprofit sector with a
leadership deficit within the next decade unless firm changes are made
by charities and philanthropic organisations, experts say.
Recent
studies indicate that, as a generation of baby-boom directors and
executives begin to leave their posts, there could be a dearth of
younger workers with the skills or desires to replace them. Surveys of
emerging leaders show that many do not feel qualified to hold top
positions or simply do not want the jobs - citing relatively low pay
and unhealthy work-life balance as negative factors.
The
sector must actively labour, therefore, to attract and keep top talent
- not just by offering better compensation but by improving training,
defining career trajectories and implementing mentorship programmes,
according to non-profit specialists and research bodies.
'We
have a lot of work to do to make "our product" - the
leadership of a non-profit organisation - more attractive than it
currently is,' wrote the authors of a study published this year by
CompassPoint Nonprofit Services, The Annie E. Casey Foundation, the
Meyer Foundation and Idealist.org. 'Overwhelming fundraising
responsibilities, long hours, sub-par pay rates, and meagre
consideration for retirement are not what will attract bright and
talented people to non-profit careers, however mission-driven they
might be.
'We
heard from a number of focus group participants about their desire to
do good in whatever sector they found themselves. This sector agnosticism
- a growing trend, in our view - works against the notion that the
non-profit sector will always have the upper hand in attracting those
who are most strongly committed to advancing the public good.'
They
predict that the non-profit sector could find itself in an all-out 'war
for talent' with Government and business.
Colin
McCrea, senior vice president of The Atlantic Philanthropies and board
member of Philanthropy Ireland, recently noted that 'to develop
philanthropy properly in Ireland we need skilled askers almost as much
as we need givers, and we also need more people who are properly
trained in the management of philanthropic resources.'
But
many entrenched traditions within the entire non-profit sector seem to
be working against its preservation. Most non-profits tend to hire
executive directors externally, rather than coaching their own
workforce for top-level positions. One-third of workers surveyed were
seeking new employment in the belief that they could not advance any
further in their current positions.
Retention
and advancement, then, were cited as crucial by the study in ensuring
that top talent accept high-level jobs within the sector. The authors
concluded that current leaders must better groom promising staff for
top positions - in a transparent way that allows emerging leaders to
see that they are being considered for futures within the
organisation.
But
the tradition of fundraising - inextricably linked to the non-profit
world - also discourages many potential leaders, the survey found.
'The
belief that executive directors are solely responsible for the
financial sustainability of their organisations and therefore the
livelihood of their staffs is also too daunting for many people,' the
authors wrote. 'It is not that they shy away from responsibility in
general, but that they do not want to be set up for failure . .
. The top reason survey respondents chose for not wanting an
executive position was the level of fundraising responsibilities
inherent in the job.'
The
authors concluded, then, that boards and funders must ensure that
executive directors are surrounded by excellent support staff. Rather
than changing just the development and training process for directors,
nonprofits must efficiently develop other senior management, as well.
Thomas
J. Tierney, in his 2006 paper 'The Leadership Deficit,' makes similar
observations.
'To
shore up the impending leadership crisis, both individual organisations
and the non-profit sector as a whole must take action,' he said. 'Board
members, senior managers and major donors must commit to building
strong and enduring leadership teams within their own organisations.
Across the sector, foundations, intermediaries, and associations need
to collaborate to nurture a cadre of management talent . .
. three broader actions must be undertaken: 1) invest in
leadership capacity; 2) evaluate management compensation; 3) enhance
career mobility and explore new talent pools.'
The
'new talent pools' of which Tierney speaks include three separate and
highly interesting populations. The first ironically involves the very
generation which has sparked fears of a leadership deficit in the first
place: baby boomers. As they retire from other sectors, many
will wish to lend their talents to a different, more charitable
enterprise - and Tierney points out that non-profits can undeniably
benefit from such eager and experienced workers. The second group
includes mid-career individuals who wish to change careers. And the
third involves young managers, especially those involved in graduate
programmes. Non-profit management programmes are increasing - and
creating a growing pool of workers not only committed but highly
schooled in the mechanics of the sector.
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INTERVIEW:
MARK KENNEDY, MERCHANTS QUAY
Mark
Kennedy left more than a decade of work in the corporate arena to take
a job in October 2007 with Merchants Quay, which works to help the homeless,
drug users, and others who have been excluded. He spoke with 2into3
about his decision to accept non-profit work and his experience so far.
Q:
Was your background non-profit or did you come from the business world?
A:
I had done a small amount of voluntary work just here and there
beforehand. My background is really from large PLCs here and in the US;
that's where I was based with a multinational food group. I was the
director of finance for their North American company 'La Brea Bakery'.
Q:
Did you find non-profit work very different from financial work in the
corporate sector?
A:
I did; it was a huge change. First of all, things are very different in
the charity sector. I think in PLCs the emphasis is solely on meeting
targets for revenue growth and profit margins - whereas certainly with
MQI, the emphasis is on the provision of services to clients. The
primary stakeholders are our funders. Some fund specific parts of our
projects - some people will fund the homeless services, some people will
fund residential detox, some people want to look after counseling. They
want a constant feedback on how that's going - what's the return? I was
going to say 'return on investment,' but that's not how you look at it.
They want to know how their euros are being spent and what it is
achieving and whether it is having an impact on people's lives. There's
a lot of communication involved.
I
was in PLCs for about 12 years; it was great from the point of view
that I was at the cutting edge and was thrown into many unstructured
situations. There was a lot of pressure working to keep the share price
up, but there is pressure of a different sort in the charity sector.
You're far more dependent on people's good will, and we don't have the
same infrastructure as a multinational would have. All of our income is
accounted for; there's very little in reserve.
For
me, I'm much more of an all-rounder now in Merchants Quay. Partly, it's
because it's a smaller entity; I'm the treasury department, I'm part of
the fundraising department, I'm involved in our services, mostly from a
financial standpoint - whereas in a bigger company, you're one small
part of a giant machine. Even within that, you may only see certain
parts of it, whereas here you see everything - which makes me feel
closer to what we do.
Q:
Why did you choose to switch to non-profit work?
A:
When I went in to meet with the guys in Merchants Quay and with Dennis,
I had a tour around one or two of the sites with the CEO and I was just
blown away by the one-on-one contact he had with the clients. He knew
them all by name, and they knew him by name. He was asking them how
they were doing, and it was very warm with a great respect for the
client group.
I
saw one of our residential sites out in High Park in Dublin and had a
tour around that site again with one of the clients. Just the sheer
impact that we were having on her life - she was looking to get
drug-free, and she was doing that through intensive counseling groups,
fitness, work on diet - she was explaining to me the detail that they
go to, and I really saw the humility of somebody who was looking to get
her life back together. I thought to myself, 'Yes, I definitely want to
be involved in this.' If I can say I played some small part in helping
a few people just to deal with the toughest circumstances - some of the
toughest circumstances that there are to deal with in a human life -
the prospect of that just lit my flame. I was drawn to it.
Q:
In your short time in the Irish non-profit sector - since October 2007
- what have your initial impressions been? Do you think the sector
needs to adapt to the evolving social and economic situations in
Ireland?
A:
I think some of the changes in the sector you can already see starting.
I think there's more of an emphasis on partnership. I think we
recognise that ourselves because we operate off limited resources. I
would deal with people in various other charities around the country,
and we pool our knowledge. A lot of us are facing similar difficulties,
so it's far easier to tackle some of the issues as a group. We have
charity legislation coming in which is going to require a much more
detailed standard of reporting - and there's going to be quite an
effort to get that implemented.
I
meet people from other charities, and we sit down, have coffee and chat
about some of the joint challenges that we're facing. That's very much
going to be a continuing thing, particularly as the Government's
financial position was not what it was 12 months ago. I think things
are going to continue to get tighter.
Q:
What advice would you give to a corporate professional who is
considering a switch to non-profit work?
A:
I think it's a case of following your gut. I think Irish people are
starting to look at themselves a little bit more now - looking past
what your salary is and starting to look at quality of life issues.
Part if that is people looking at 'What do I do every day? What do I
contribute? Am I passionate about what I do?' One thing you definitely
get in charities is passion. I think a lot of us are very connected
emotionally with what we do. You see the results. When I go into work
every day, I pass by clients and you know we're there for them.
Certainly for me, it's something that I find very fulfilling. I feel
that I definitely contributed something, I've given back something. My
work is a meaningful part of my life. I haven't looked back for a
second. In the PLC world, I found a constant desire for profit numbers.
It just became a bit repetitive, so it's just refreshing to get away
from that completely and get to a stage where the bottom line is what
kind of an impact we are making on people's lives and how effectively
we are reaching out to people.
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SUMMER SCHOOL FOR NON-PROFIT PROFESSIONALS
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Irish
civil society is a at a crossroads, according to the Centre for
Nonprofit Management at Trinity College Dublin - and it has structured
its third annual summer school programme around that very theme.
'Relationships
and Representation: Irish Civil Society at the Crossroads' will examine
the fact that non-profit organisations in Ireland operate in a rapidly
changing environment, which brings both increasing possibilities for
action and also increased expectations from the public and the State.
The summer school event, scheduled for June 18 and 19, will explore how
the nature and function of relationships between non-profit, political
and private sectors are key to the capacity of the non-profit sector to
meet heightened expectations and exploit new possibilities.
Siobhan
McGee, director of new project development at the Centre, said the
annual summer schools have continuously evolved since they began in
2006 - offering an invaluable forum for sector leaders to discuss
advancements and issues in the Irish non-profit world.
'The
School has gained momentum year on year, with more directors/CEOs from
the sector attending,' she said. 'This year, the theme of the School
was developed in response to feedback and conversations with people in
the sector following the previous Schools - there is a great sense that
the question of "relationships and representation" is a
recurring challenge for the sector; hence this year's theme is very
much influenced by our ongoing dialogue with practitioners.'
The
Centre commissioned a Context Paper outlining trends and the current
status of the Irish non-profit sector in relation to the State and its
agencies. The paper first defines the sector and its characteristics,
then examines key policies and relationships, looks at Community and
Voluntary relations with government in other jurisdictions (Northern
Ireland, Denmark and Canada), examines the findings and makes some
concluding observations. It will be available to delegates from the end
of this month and is intended to form the basis of the opening presentation
at the summer school.
The
rest of the programme will include a number of expert speakers and case
studies, which will provide 'an opportunity for reflection on two quite
different initiatives, relative to the existing structures and processes'.
One case study will focus on a cross-departmental effort by the State
to tackle homelessness; the second will explore the effort to start a
new organisation in Ireland and will be presented by Salome Mbugua
Henry, founder and director of AkiDwA, the organisation which addresses
the needs of migrant women resident in Ireland.
The
summer school programme will also offer panel sessions to examine how
the sector operates in different 'spheres of engagement'. These are:
Engaging within the Civil Society sector; Engagement between Business
and the Sector; NPOs in the Public Sphere; Irish Civil Society and
International Development; The Individual and the Sector; and NPOs in
the National Sphere.
Panellists
and chairs will include representatives from the non-profit sector, the
business world and the media. These include Fergus Finlay, chief
executive of Barnardos and chair of Special Olympics Ireland; Jackie
Harrison, chief executive of Philanthropy Ireland; Sarah Carey, Sunday
Times columnist; Maurice Healy, president of the Irish Business and
Employers Confederation; and Teresa Harrington, partner at
PriceWaterhouseCoopers.
Ms
McGee said the summer school event marked just one of the many ways the
Centre can help the Irish non-profit sector by offering expert advice
and exploring new dimensions.
'The
Centre offers a 'space' for those interested in the non-profit sector,
mainly sector leaders and others, to come together to discuss issues of
overarching strategic importance to the sector,' she said. 'We also
offer the opportunity to bring international non-profit experience to
bear, by bringing international speakers and international academics
into the Irish conversation. And of course through the output of
the Centre's research programme, we can provide clarity on the size,
scope and defining characteristics of the Irish non-profit sector,
which is of interest also to policy makers and the public.'
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SECTOR LEADERS DISCUSS RANGE OF ISSUES AT MARCH
CONFERENCES AND EVENTS
March was a busy and productive month in the Irish
non-profit sector, as the nation played host to
both domestic and international events.
Dublin
first welcomed the Case Europe Schools Development Conference on March
2-4 - marking the first time the high-profile conference has been held
outside of Britain. The programme focused on issues facing schools in
Ireland and the wider European community, bringing leaders from
multiple countries together to share their own experiences and learn
from seasoned speakers. 2into3 Director Dennis O'Connor was among the
presenters, and attendees left the three-day event armed with
invaluable new ideas and advice gleaned from the speakers and from
fruitful discussions with each other.
Less
than a week later, non-profit professionals were invited to a landmark
master class given by 2into3 sister company Prospect 23 - the only
dedicated prospect research service in Ireland. The breakfast seminar
was held March 12 in The Shelbourne Hotel and introduced participants
to how fundraisers in the cause-based sector can compile and manage
their donor databases.
Presented
by Prospect 23's Robbie Foley and Brian English, the master class
focused on items that included the necessity of prospect research; gift
pyramids; research report templates; and key elements in securing a
major gift - such as the right time to ask, and the best place to make
such requests.
And
an upcoming awards ceremony being organised by STEP will give Irish
professionals involved in such philanthropy and strategising to be
recognised for their efforts. The STEP Private Client Awards highlight
excellence among private client accountants, solicitors, bankers and
trust managers. Nominations must be received by June 12 and will be
judged by an independent panel of expert professionals who advise
judges on the specific sectoral awards. The Philanthropy Team of the
Year Award, open to international nominations, applies to teams who
provide outstanding strategic advice to donors on philanthropic giving
and structures. The Charity Team of the Year, open to UK and Ireland
nominees, applies to teams who provide outstanding advice to charities.
Winners will be announced at an awards ceremony in London in September.
More
information about the awards and nominations process can be found at www.step.org/awards.
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NON-PROFIT
SALARIES:
SURVEYS
AND IMPLICATIONS
It
is a topic which invariably sparks debate both within the third sector and
outside of it: salaries of non-profit professionals.
Media
outlets and those unfamiliar with non-profit dynamics often draw
attention to large executive salaries, questioning the necessity of
such wages in connection with charities. Leaders within the non-profit
sector argue many wages are not sufficient, dissuading qualified
workers from applying for positions.
No
comprehensive salary survey had ever been conducted involving the
community and voluntary sector as a whole in Ireland. But support body
The Wheel finally commissioned one, arguing that such a survey would
help organisations, add transparency to the sector and stand as a
'reality check' for funders.
The
survey, sponsored by 2into3 and mycharity.ie, was carried out in
February and involved more than 2,700 organisations. Results will be
published in the upcoming weeks.
Before
this inaugural survey was carried out, The Wheel stated that its
presence 'on either an annual or bi-annual basis would aid
organisations significantly in terms of attracting and retaining staff
and managing their scarce financial resources.'
'It
would also add transparency to the sector and allow it to be seen as a
professional place of work for people in other sectors,' the body said.
'It would also provide a 'reality check' for funders, including the
State, in relation to the real costs in terms of employing people or
providing a particular service.'
And
such information and awareness is imperative, as research suggests that
the sector is now an integral part of social and economic life in
Ireland - employing more than 63,000 people, benefiting from the
voluntary contributions of more than 50,000 people and producing an
estimated annual turnover of 2.5billion euro.
'There
is a definite gap within the sector for this type of information, and
The Wheel constantly receives queries about what the appropriate pay
should be for a particular position,' the body says. 'Many
organisations find it difficult to pitch their jobs at the right level
to recruit and retain good staff. The data collected will provide
quality information about pay and benefits associated with a wide range
of jobs and responsibility levels in our sector.'
The
Wheel Pay and Benefits Survey 2008 will detail information involving
eight categories of employee, including the following information: pay
scales; pay increases; bonus payments; additional payments; overtime;
annual, service and compassionate leave; pension; and further education
assistance.
The
report will analyse organisations by size, location, type of activity
(homelessness, childcare, elderly, etc) and whether the groups are
direct service providers or representational bodies.
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For
any additional information about 2into3, please contact Amy Curtin at
amy@2into3.com
or +353 1 640 1914.
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FORWARD THIS NEWSLETTER!
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Why not send along this email to colleagues or contacts?
The discussion of topical and thought-provoking issues - such as those
outlined within this newsletter - is key to the continuing development
of the non-profit sector. 2into3 highly encourages such ongoing debate
and exploration.
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2into3 WELCOMES
Eimear joins 2into3 as a Consultant with specific
responsibility for supporting our clients in recruiting junior and
mid-level fundraising, marketing and communications professionals. She has
held a variety of fundraising and development positions, both in
Ireland and abroad, and has most recently specialised in Corporate and
Major Donor Fundraising. She has worked in non-profit organisations
such as the Peter McVerry Trust, Habitat for Humanity Ireland and The
Lothian Centre for Integrated Living, Edinburgh. She completed a
Graduate Certificate in Fundraising Management with the British
Institute of Fundraising in 2005. Eimear has also held a number of
voluntary positions locally and internationally, and has a keen
interest in development issues.
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