The Business of Not-for-Profit Management
Fall 2013. Wednesdays 4:55 - 7:25pm
Location: GCASL 269, 238 Thompson Street
Professor: Aria Finger
Office Hours (by appointment)
Mondays from 5-6pm at the Do Something office (19 west 21st street)
Wednesdays at 7:30pm, directly after class
Anytime! Just shoot me an email
This course is a general introduction to not-for-profit management, with heavy emphasis on practical application. How
do not-for-profit organizations actually function? How do they attract “customers?” How do these companies grow
when there are no owners with financial incentives to expand the business? What are the core elements of a successful
not-for-profit company? How do you keep the lights on through fundraising and how do you expand through marketing,
communications, and the use of technology? What are the metrics for determining the health of a company without
profit? And, why would anybody want to work in such a crazy place?
The assumption of this course is that students are interested in careers, internships, and/or board positions at not-forprofit companies. Students will be exposed to theory and criticism of the sector as well as real world application via case
studies.
This course will meet weekly for 2.5 hours. The course materials are a combination of case studies, book excerpts, actual
organizational materials, IRS filings and recent newspaper, magazine and journal articles. While several readings are
listed for each session, most are relatively short: you are expected to come to class fully prepared to discuss the week’s
readings. Class participation is taken very seriously. Expect several guest speakers throughout the course. I will, at
times, send out links to current articles that are not reflected below to supplement class discussion. Expect these
articles to be required reading unless otherwise noted.
Course Grading:

Class Participation
15%

First Writing Assignment:
10%

Midterm Exam:
20%

Final Project Outline
10%

Final Exam
20%

Final Project
25%
o
10% group grade
o
15% individual grade
1
September 4th: Introduction to the Course
-
Expectations for the semester
-
What is a 501(c)3?
-
Restrictions, requirements, fiscal sponsors, etc
-
Legal requirements of not-for-profits
-
Board of Directors
-
Readings:
o
IRS section 501(c)3
o
Stephanie Strom. “Two Groups That Help Nonprofits in a Merger”. New York Times, August 17,
2011. http://www.nytimes.com/2011/08/18/business/for-profit-business-acquires-nonprofitcharity-site.html
o
Gibson, Dunn, & Crutcher Memo on duty of care
o
Do Something Board of Directors Responsibilities and Expectations Policy
o
Michael Cooper, “Squeezed Cities Ask Nonprofits for More Money.” New York Times, May 11, 2011
http://www.nytimes.com/2011/05/12/us/12nonprofits.html
o
Francie Ostrower and Marla J. Bobowick. “Nonprofit Governance and the Sarbanes-Oxley Act.”
Board Source.
o
Ellen McGirt. “Chris Hughes’s Jumo and GOOD join Forces”. Fast Company, August 16th, 2011.
http://www.fastcompany.com/1774012/jumo-and-good-join-forces-for-even-more-good
-
Due Today: Choose your “favorite” not-for-profit and be prepared to discuss it in class
September 11th: Finance Day (your favorite!)
-
How to read a Form 990
-
Not-for-profit income and expense reports
-
How to read cash flow statements
-
Theory and practice of restricted funding
-
Explanation of 1st Writing Assignment
-
Explanation of Group Project
-
Readings:
o
Clara Miller, “The Four Horsemen of the Financial Apocalypse.” Nonprofit Quarterly, 2010
o
Dan Pallotta, “The Tax Form Tax,” HBR, 4/2010
o
Robin Hood Foundation, 2011 Form 990
o
Do Something Fiscal Policy Document
o
Russ Buettner. “State Seeks Data on Pay of Leaders at Nonprofits”. New York Times, August 25,
2011. [http://www.nytimes.com/2011/08/26/nyregion/state-seeks-data-on-pay-of-leaders-atnonprofits.html?hp]
o
The Simplified Guide to Not-for-Profit Accounting, Formation & Reporting, p. 40-86 and 259 – 268
2
September 18th: Data & Metrics
-
How to create a data-informed culture
-
Big data, A/B testing
-
Guest Speakers: Jeff Bladt, Director of Data & Analytics, DoSomething.org and Bob Filbin, Chief Data
Scientist, Crisis Text Line
-
Readings:
o
Matthew Forti and Kathleen Yazback. ”Data’s Not Just for Donors—It Can Improve a Nonprofit’s
Work”. Philanthropy.com. April 27th, 2012. http://philanthropy.com/article/How-Data-Can-Improvea/131342/
o
The Bridgespan Group, “How Do I Measure Performance—Both Mine and My Grantees’—in a
Practical Way? “http://givesmart.org/tools/How-Do-I-Measure-Performance-Mine-and-MyGrantees.aspx
o
Harvard Business Review, “A Data Scientist’s Real Job: Storytelling.” Jeff Bladt & Bob Filbin. March
27th, 2013. http://blogs.hbr.org/cs/2013/03/a_data_scientists_real_job_sto.html
o
Sample KPI Dashboard for a Mid-Sized NGO.
September 25th: Fundraising part I
-
Government
-
Events, Individuals Foundations (to be continued in Class Five)
-
Guest Speaker: Bobby Watts, Executive Director, Care for the Homeless NYC
-
Readings:
o
Robin Hood Foundation, Quarterly Update: Q1, 2011
o
Rosaline Juan, “Pyrrhic Fundraising”, Stanford Social Innovation Review
o
Michael Porter and Michael Kramer, “Philanthropy’s New Agenda: Creating Value”, HBR
o
2011 Care for the Homeless Annual Report http://issuu.com/careforthehomeless/docs/ar_2011_final?e=5209800/3088722
October 2nd: Fundraising part II
-
Follow up on Events, Individuals, & Foundations
-
Cause marketing
-
Measurement
-
Readings:
o
Aneel Karnani, “The Case Against Corporate Social Responsibility”, WSJ 8/2010
o
Carol Cone, “Align Your Brand With a Social Cause”, Harvard Business Review, 7/2003
o
Nancy Lublin, “Why For-Profits Need Not-For-Profits”, Fast Company, 3/2009
o
Dan Pallotta, “We Need to Rethink Fundraising,” HBR, 8/9/2010
o
Ron Nixon, “Bottom Line for (RED)”, NY Times
3
o
“#NextGen Donors,” Michael Moody and Sharna Goldseker. The Johnson Center for Philanthropy,
2013
o
PowerPoint Presentation by Ken Berger, Charity Navigator CEO. “Charity Navigator – The Year of
Change”. February 24th, 2010.
-
Due Today: Bring in evidence of a cause marketing campaign from the past 2 years. Write down the name
of the campaign, the NGO, and the company on an index card.
-
Due Today: First writing assignment
October 9th: Fundraising part III
-
Earned income
-
New ways to fundraise
-
Readings:
o
William Foster, “Money to Grow On”, SSRI
o
William Foster, “Should Nonprofits Seek Profits”, HBR
o
James Phills, Brian Tayan, “AARP and AARP Services, A Multi-Sector Approach to Social Change”
o
David Bornstein, “For Ambitious Non-profits, Capital to Grow.” Fixes Column, New York Times. June
27th, 2012. http://opinionator.blogs.nytimes.com/2012/06/27/fixes/
-
Due Today: The Not-for-Profit your group is going to focus on for the Final Project
October 16th: In-class midterm
October 23rd: Communications and Marketing part I - How to do more with less
-
Brand development
-
Brand execution
-
Brand assessment
-
Advocacy and activism
-
Guest Speaker: Douglas Barasch, editor OnEarth Magazine, published by the Natural Resources Defense
Council (NRDC)
-
Readings:
o
John Quelch, “Habitat for Humanity International Brand Valuation”, HBS Case Study
o
Do Something Communications Guide
o
Seth Godin, Purple Cow: Transform Your Business by Becoming Remarkable
o
DoSomething.org Risk Factors Chart
October 30th: Communications and Marketing part II
-
Marketing in the world of facebook, twitter, and instagram
-
Social media tools and how to employ them most effectively
-
Crisis communications
4
-
Readings:
o
Jennifer Aaker and Andy Smith, The Dragonfly Effect. Case Studies – Charity:Water, Sameer & Vinay
o
Jon Krakuer, Three Cups of Deceit: How Greg Mortenson, Humanitarian Hero, Lost His Way
o
Adam Braun Response to Jon Krakuer Criticism. Adam Braun, “Three Months Later -- Learnings from
the Greg Mortensen Controversy.” Huffington Post, July 21, 2011,
http://www.huffingtonpost.com/adam-braun/greg-mortensen_b_906235.html
o
Video: KONY 2012. http://www.youtube.com/watch?v=Y4MnpzG5Sqc
o
KONY 2012 criticism – blog post from “Visible Children” on March 7th, 2012.
http://visiblechildren.tumblr.com/post/18890947431/we-got-trouble
o
Alexandra Bruell, “Can Komen Recover from PR Crisis?” Ad Age, February 6th, 2012.
http://adage.com/article/news/komen-recover-pr-crisis/232540/
-
Due Today: Outline for your group presentation
November 6th: Human Resources, Operations & Scaling Up
-
Owned & operated, franchised, web-based
-
Staffing a not-for-profit company
-
Recruiting and managing volunteers
-
Guest Speaker: Micaela Connery, Unified Theater
-
Readings:
o
Community Wealth Ventures, “Nonprofit-Owned Franchises: A Strategic Business Approach” (2004).
http://bit.ly/qrs5yB
o
HBS Case Study on Dunkin Donuts
o
Do Something International Application
o
Jerry Hauser, The McKinsey Quarterly, 2003 “Organizational Lessons for Nonprofits”
o
“Scaling Social Impact in Six Steps”. By Sarika Bansal. June 29th, 2012. Dowser.org.
http://dowser.org/scaling-social-impact-in-six-steps/
o
Debra Mesch, “Management of Human Resources in 2020: The Outlook for Nonprofit
Organizations” (Public Administration Review, Dec. 2010)
o
Amy Gallo, “How to Prevent Hiring Disasters”, HBR, 5/2010
o
Darrell Rigby, “Innovation in Turbulent Times”, HBR 6/2009
o
Stephanie Strom, “Philanthropists Requiring Management Courses to Keep Nonprofits Productive.”
New York Times. July 29th, 2011
o
Robert Kaplan & David P. Norton, Harvard Business Review. “Using the Balanced Scorecard as a
Strategic Management Document.”
November 13th: International Organizations & Impact Investing
-
Managing from afar
-
Understanding local customs
5
-
Legal requirements
-
More measurement & failure
-
Post-Disaster Response
-
Guest Speaker: Sean Moore, Acumen Fund
-
Group Presentation Questions
-
Readings:
o
Video: "David Damberger: What happens when an NGO admits failure"
http://www.ted.com/talks/david_damberger_what_happens_when_an_ngo_admits_failure.html
o
HBR Case Study on Mercy Corps
o
“Priming the Pump: The Case for a Sector Based Approach to Impact Investing”, Matt Bannick &
Paula Goldman, The Omidyar Network.
o
Additional Case Studies on International NGOs Forthcoming (required)
November 20th: New Models of Giving Back
-
For-profits v not-for-profits
-
B-Corps
-
Cross-sector collaboration
-
More measurement
-
Public speaking tips for your final presentation
-
Guest Speaker: Jesse Schultz, Warby Parker
-
Readings:
o
“Steve Jobs, World’s Greatest Philanthropist.” Dan Pallotta.
http://blogs.hbr.org/pallotta/2011/09/steve-jobs-worlds-greatest-phi.html
o
Stephanie Strom, “A Quest for Hybrid Companies That Profit, but Can Tap Charity.” New York Times.
October 12, 2011. http://www.nytimes.com/2011/10/13/business/a-quest-for-hybrid-companiespart-money-maker-part-nonprofit.html?_r=2&emc=eta1
o
Heerad Sabeti. To Reform Capitalism, CEOs Should Champion Structural Reforms.
http://blogs.hbr.org/cs/2011/10/to_reform_capitalism_ceos_shou.html#.TqaWfYGJuLs.email
o
Stanford Social Innovation Review, “Petition Power Change.org, a five-year-old San Francisco-based
startup, has emerged as one of the leading platforms for online activism. Spring 2012.
http://www.ssireview.org/articles/entry/petition_power?utm_source=Enews12_03_08&utm_medi
um=email&utm_content=3&utm_campaign=petition_power
o
B Corporation 2012 Annual Report
o
Aaron Hurst. “Is Business the New Charity”. Stanford Social Innovation Review. June 26th, 2012.
http://www.ssireview.org/blog/entry/is_business_the_new_charity?utm_source=Enews12_06_28&
utm_medium=email&utm_content=3&utm_campaign=hurst
6
November 27th: Thanksgiving No Class
December 4th: Group Presentations
-
Half the groups present
-
All students required to be here for presentations
Class Fourteen - December 11th: Group Presentations
-
Second half of groups present
-
Note: This is not an official class day as it runs on a Monday schedule. If your group signs up for this day,
please ensure that you don’t have a conflict with a Monday night class
December 18th: Final Exam. 6pm – 8pm
7