U6414 Nonprofit Management and Finance

Spring 2002

Saturdays, 9:00-11:00

Instructor: David Campbell, Ph.D.

e-mail:

phone: 212 614 5564 (office)

Required Course Texts

Herman, Robert D. & Associates, (1994). The Jossey-Bass Handbook of Nonprofit Leadership and Management. San Francisco, CA: Jossey-Bass.

Brinckerhoff, Peter (2000). Mission-based Management. 2^nd edition. New York: John Wiley & Sons.

A course reader is required.

Course Overview

This course will provide an introduction to management issues faced by leaders in nonprofit organizations. The course will be arranged topically. The topics to be covered are listed for the class session date on which that topic will be presented. The format for the course will be lecture and facilitated discussion. Case studies, assigned articles and other activities will be used to organize class discussions.

Assignments

Students will be evaluated based on two different kinds of assignments, case study analyses and a final, take home exam. Over the semester, all class members will be responsible for completing four brief case study analyses. The case study analyses should be no more than two to three pages. The analyses will be based on questions provided about Harvard case studies (from the Business and Kennedy Schools). We will study five cases; you are responsible for four analyses.) We will have a class discussion about cases on the day the cases are due. Also, each student will be asked to participate in the preparation of a group project that will be presented in class.

There will be a take home exam at the end of the semester.

Course grading will be based 40% on the Harvard case studies, 20% on the group presentation and 40% on the final. Class participation will also be considered in determining final course grades.

Course Schedule

January 26

Course Overview and Introduction to Nonprofit Organizations

• Review of syllabus, course requirements and student interests
• Types of nonprofit organizations
• Historical evolution of non profit sector
• Nonprofit organization legal structure

Required Reading:

• Herman Chapters 1, 4
• Brinckerhoff Chapters 1,2

February 2

The Legal Structure of Nonprofit Organizations

• Ethical Issues in Nonprofit Management.

Required reading:

• Herman, Chapters 3, 9

February 9

• The role of mission in nonprofit organizations
• Creating an effective mission statement.

Required Reading:

• Drucker, pp. 3-8
• Brinckerhoff, Chapter 3,4

February 16

Governance Issues and the Organizations of Nonprofits

• Differences between for profit and nonprofit organizations: shareholder value vs. mission
• Role of the Board in a nonprofit organization
• Leadership and Committee Structure

Required Reading:

• Herman, Chapter 6
• Brinckerhoff, Chapters 5

February 23

Creating a Strategic Plan

• Role of Strategic Planning in nonprofit organizations
• How to put together a strategic plan

Required Reading:

• Herman, Chapter 8
• Brinckerhoff, Chapter 11

March 2

Financial Management Issues I

• Budget Creation and budget management; cash flow
• Government contracts and their management

Required Reading

• Herman, Chapter 15
• Brinckerhoff, Chapters 10, 12

March 9

Financial Management Issues II

• Reading and using financial statements
• Financial control strategies in nonprofit organizations

Required Reading

• Strachan, J."Understanding Nonprofit Financial Management"
• Herman, Chapters 19-20 cover these topics in more detail, but are not required.

Case Study 2: Historical Society of Pennsylvania due

March 23

Nonprofit organizations and public policy

• Nonprofit organizations as advocates
• How nonprofit organizations influence public policy debate
• Legal issues in nonprofit advocacy

Required Reading:

• Herman, Chapter 10
• Rees, S., "Effective Nonprofit Advocacy," pp. 1-45

Group Project 1 due

April 6

Social Entrepreneurship

• Entrepreneurship and nonprofit organizations
• Non-traditional sources of revenue

Required Reading:

• Herman, Chapter 18
• Brinckerhoff, Chapter 8
• Dees, J.D. "Enterprising nonprofits"
• Dahle, Cheryl, "We"ve got two bottom lines: Money and the Mission"
• Reis, Tom, "Unleashing New Resources and Entrepreneurship for the Common Good" (available at www.wkkf.org/publications).

Case Study Three: City Year due

April 13

Fund Raising Principles

• Fund Raising Plans
• Types of fund raising: capital campaigns, endowment building, annual campaigns, major donors, direct mail, events.
• Creating a constituency

Required Reading:

• Herman, Chapter 17
• Smith, Bucklin, Chapter 3
• Temkin, Terrie "Mama said "Never Put All Your Eggs in One Basket": Boards, Strategic Thinking and the Need for Diversified Revenue.
• Philanthropy Industry Note Part A: Landscape of Philanthropy in the United States.

Group Project 2 Due

April 20

The role of foundations in nonprofit management

• Project funding , venture capital, sources of foundation money

Required Reading:

• Brinckerhoff, Chapter 13
• Letts, Ryan and Grossman, "What foundations can learn from venture capitalists"
• Porter and Kramer, "Philanthropy"s New Agenda: Creating Value"

April 27

Volunteers and Volunteerism

• Current and Historical role of volunteers in nonprofit organizations (voluntary sector)

Required Reading:

• Hermann, Chapters 13, 22
• Ellis, Susan, From the Top Down, pp. 1-33.

Case Study Four: GLSTN due

May 4

Strategic Alliances

• Strategic Alliances as a phenomenon
• Alliances and Planning
• Types of strategic alliances
• Selecting an Alliance type
• Process and Implementation
• Emerging Issues in the Nonprofit Sector

Required Reading

• LaPiana, D. Beyond collaboration: Strategic restructuring of nonprofit organizations.
• Singer, M. & Yankey, J. "Organizational metamorphosis: A study of eighteen non-profit mergers, acquisitions and consolidations"
• Yankey, Wester & Campbell. "Managing mergers and consolidations."
• Campbell, D. "High-end Alliances as Fund Raising Opportunities"
• Ryan, W. "The New Landscape for Nonprofits"

Final Exam Due