Staying Values Based

Notes by Barbara Rood

Speakers: Josephine Tamayo Murray, Catholic Community Services of Western Washington;  Rick Dupree, NPower, Seattle

 Josephine Tamayo Murray distributed a handout which listed the values of CSS and the basic principles of Catholic social teaching which provide the context for the work of CSS. 

She discussed the importance of developing and using a concise business plan as a tool for screening new projects and merger proposals.  Using internal resources, CSS developed and adopted a 4-page business plan, plus a 1-page, 3-year financial pro forma.  New ideas are compared to the existing business plan for mission match, market analysis, the balance with other services, financial viability (how much subsidy needed?), and risk and liability. 

Three examples were given of how the business plan was used to thoroughly evaluate new opportunities presented to CSS.  Each of these three proposals, which looked good at first, was carefully evaluated according to the criteria in the business plan and found to have a “fatal flaw” that kept it from being an appropriate match for CSS.  One organization made a claim that could not be verified; one organization had a large pending liability; and the third proposal generated intense discussion regarding mission alignment despite its potential to bring in new revenue to subsidize existing services.

The business plan is updated annually along with the strategic plan.  Annual review allows timely response to changes in the environment and community 

Rick DuPree distributed a handout that included the mission, vision and values statements of NPower Seattle.  NPower helps other nonprofits use technology to better serve their communities.  It relies on a blended revenue model with a 50/50 mix of earned and contributed income. 

He emphasized using two filters to evaluate new opportunities presented to a nonprofit:

1. Mission match, or “Does it fit?”

2. Financial viability, or “Does it make sense?”

He suggested that an organization can become self-sustainable without being self-sufficient by developing an appropriate mix of funding sources.  Some business opportunities appear to be sound enough to generate revenue to subsidize needy programs, but that would actually be an unusual situation.  Rick cautioned against confusing income with net profit.  “Don’t be afraid of applying good business principles.”

Because NPower wants to be seen as a neutral consultant, it has not endorsed particular products or systems or partnered with any businesses.

Discussion points:

§         Look at government contract service and admin rates carefully and be willing to walk away from ones funded too low.

§         Reinforce values daily—in the way people are treated with common courtesies, in disagreeing respectfully, by modeling the mission.

§         Hire carefully; orient new staff; maintain strong staff training to increase retention.

§         Important for staff morale—be transparent, keep open lines of communication, train super visors for “open ear” policy.

§         Staying values center promotes long-term sustainability.

§         Don’t be afraid to be a risk-taker, but look at opportunities realistically.  What does it take to be successful?