Nonprofit JournalADVANCING THE MISSIONS OF THE FUNDRAISING COMMUNITY

ASSEMBLY REQUIRED

02 Salaries on the Rise?

05 How to Attract and Retain Top Performers

10 Finding Purpose in Nonprofit Work

14 Make Diversity a Priority

18 Seeking Next-Gen Marketers

21 Four Issues Impacting Nonprofits

WINTER 2020 ISSUE: TALENT

I N P A R T N E R S H I P W I T H T H E A N A C E N T E R F O R B R A N D P U R P O S E

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1Nonprofit Journal VOLUME 22 / ISSUE 3 / WINTER 2020

Anna AverlingAmerican Bible Society

Stacey BaxterCompassion International

John BellMMI Direct

Tracey BurgoonEx Officio

DAV

Stephanie CeruoloInfogroup

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InfoCision Management Corp.

Nick EllingerMoore DM Group

Steve FroehlichALSAC — St. Jude

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Steve HarrisonCDR Fundraising Group

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International

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Jeffery OwensThe Salvation Army USA

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Kim PostulartAlzheimer’s Association

Adrian White SlagleFull Hearts

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Elizabeth “Liz” NielsenFeeding America

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Jann SchultzMerkle Response

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VOLUME 22 / ISSUE 3 / WINTER 2020

Nonprofit Journal

EDITOR • Ken Beaulieu • kbeaulieu@ana.net

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Opinions expressed within are not to be considered official expressions of the ANA Nonprofit Federation or the Nonprofit Journal. The ANA Nonprofit Federation assumes no responsibility for errors or omissions within the magazine. The ANA Nonprofit Federation reserves the right to accept or reject all editorial and advertising matter. The ANA Nonprofit Federation assumes no liability for unsolicited manuscripts, photographs, or artwork.

I N P A R T N E R S H I P W I T H T H E A N A C E N T E R F O R B R A N D P U R P O S E

2Nonprofit Journal VOLUME 22 / ISSUE 3 / WINTER 2020

A: When I think about things that will impact our industry, I tend to take a longer-term view. However, one of the immediate concerns I see for us in 2020 is around

changes to data and privacy laws. For years, we’ve benefited as marketers by having access to the kinds of information that have allowed us to create targeted and personalized communications, but with ever-evolving regulations on the horizon, we’ll need to be more thoughtful in our approach to data and media.

At a macro level, I think a big concern for our industry is changing demographics. We talk a lot about generational problems in fundraising — namely, how to reach new and younger donors. It is a big problem because millennials, who globally became the most populous genera-tion nearly 25 years ago, are now also the largest group in America. Today, millennials account for almost a quarter of the world’s popula-tion. And while the makeup of our country continues to change rapidly, many of our fundraising best practices are still reliant on what we’ve proven works among older, aging groups. We need to rethink our

Know NowB Y K E N B E A U L I E U

WAGES ON THE INCREASE IN 2020?

In an effort to boost “livable wages,” four in five Washington, D.C., area nonprofits expect to at least offer cost-of-living raises

to their employees this year, while 55 percent also anticipate merit increases to be in the offing, according to a survey by PNP Staffing Group.

The salary increases aren’t reserved for leadership. The survey found that workers involved in running the nonprofit program (49 percent), administrative and support staff (43 percent), and the finance team (38 percent) are expected to receive higher wages.

According to the survey, diversity is still an issue within nonprofits, as less than 20 percent of top executives are people of color and, although 50 percent of managers are women, they are less likely to take senior-level roles. (See “Make Diversity a Priority,” on page 14.)

3 QUESTIONS FOR ALAN HALLFull Hearts’ co-founder and partner on changing demographics, talent, and how agencies can evolve

THE INTERVIEW

SURVEY FINDINGS

Q:What concerns

you most as you look at the nonprofit

landscape in 2020?

3Nonprofit Journal VOLUME 22 / ISSUE 3 / WINTER 2020

approach to media, messaging, offers, and ad creative so we can be successful in engaging different audiences.

Motivations for giving and charitable behav-iors among younger people look different than those of older segments. While baby boomers and the silent generation may be driven to give because of their religious beliefs or due to a sense of obligation and duty, millennials and gen Xers approach charitable giving differently. They seem to embrace the words of [author and food-justice advocate] Anna Lappé in believing that “every time you spend money, you’re casting a vote for the kind of world you want.” For them, donating to a charitable cause or issue is an investment in building the world they want to live in. Transparency, authenticity, and relevance are paramount to them.

Additionally, the distinction between nonprofit and for-profit is becoming a less critical point of differentiation among younger audiences. I can easily imagine a day, not that far in the future, when people look to brands like Patagonia and REI to lead efforts around environmental issues, believing that for-profit companies like these, through their social good programs, can make a greater impact than nonprofits. I want to make sure that the work we do today keeps our industry competitive and ensures continued fundraising success in the future.

Q: What cultural changes do nonprofit organizations need to make to attract high-quality talent?

A: Research confirms what we already know. When it comes to our careers, we all want the same things: fair compen-

sation, professional growth, flexibility in the way we work, and a sense of purpose. To attract the best talent, nonprofits need to rethink their approach, and it will be more difficult to do so in some areas than others. To wit:

REIMAGINED WORK POLICIES. Organizations located outside of larger markets will continue to have difficulty recruiting top talent unless they are able to offer attractive relocation

packages or be open to providing remote options. Advancements in technology allow teams not physically together to work seam-lessly across time zones and locations, and nonprofits should embrace tools like Zoom, Slack, and Basecamp to help drive a culture of collaboration and flexibility.

CREATIVE APPROACHES TO COMPENSATION. Generally, people who enter the nonprofit space aren’t motivated by financial ambitions, but base compensation, especially for junior- and mid-level positions, should be competitive with local market rates for similar roles at for-profit companies. Plus, organizations can offer robust benefits covering health, wellness, PTO, and strong 403b/401k match programs. Nonprofits can also look to creative ideas from others in the industry for inspiration. Take, for example, charity: water’s program The Pool, where a community of business leaders, founders, and entrepreneurs donate a portion of their private holdings to the organization. In the less than two years since its inception, The Pool has donated equity worth more than $50 million. IPO events, largely made up of equity pledges by founders from startups like Uber, The We Company, and Casper, become another potential source of revenue for charity: water. When these companies go public, 80 percent of the proceeds are used to cover operational expenses and 20 percent fund a unique benefit that is foreign to most people working in the nonprofit sector: bonuses. Don’t get me wrong, I’m not saying that this is what everyone should be doing, but it’s a creative way that a nonprofit is making themselves competitive in a landscape where talented engineers, marketers, and creators are being courted by companies like Google and Amazon. We need to think creatively about how we make the work of doing good an attractive option for more people.

PLANNED GROWTH PLUS AN UNRELENTING PASSION

FOR THE MISSION. Because nonprofits are so mission-driven, organizations tend to focus mainly on their program beneficiaries and donors, oftentimes aligning their best talent around the work of solving the difficult challenges

NEW LOOK AT PLANNED GIVING

Bequest giving ex-ceeded $30 billion the past four years, according to a special report from the Giving

USA Foundation. The top three motivations donors cited for making a planned gift were: the importance of the cause; the belief that the nonprofit makes a significant impact; and the donor’s ability to make a larger gift through an estate gift than during the donor’s lifetime. Other key findings include:

53%DONORS WHO ESTABLISHED THEIR FIRST PLANNED GIFT AT THE TIME OF WRITING THEIR FIRST WILL

52.8AVERAGE AGE AT WHICH DONORS MADE THEIR FIRST PLANNED GIFT

68.1%DONORS WHO WERE MOST LIKELY TO MAKE A CHARITABLE BEQUEST

Know Now(3 QUESTIONS FOR ALAN HALL)

RESEARCH REPORT

4Nonprofit Journal VOLUME 22 / ISSUE 3 / WINTER 2020

our world faces today. And because of their passion and commitment, they work them-selves to the bone — we have one of the highest rates of burnout of any industry. We need to offer more opportunities for people to take sabbaticals, to go out to the field to experience the actual work being done, to invest in their professional development, to expose them to learning opportunities, including those outside of our industry, and to provide the space for personal growth and self-care. This type of investment in individuals and teams can go a long way toward employee satisfaction and retention. Coupling that with constant, continual opportunities to live out an organization’s mission will help to ensure that our industry stays competitive in attracting and retaining the talent we need.

Q: How must agencies evolve to meet the growing needs of nonprofits?

A: I believe agencies can evolve in the following ways:

RETHINKING THE NORM. Agencies need to get comfortable with taking on project-based work. Yes, there are still opportunities for lead agencies and AOR relationships, but the days when a client is able to have all their needs met by a single agency is largely behind us. Just as we’ve seen happen in the commercial world, clients are moving toward engagements with partners who bring specialized expertise to the table. Clients are also taking more and more work

in-house and developing internal capabilities to support their marketing and fundraising needs. Clients today aren’t looking for agencies to be yes people who simply execute against what they are told to do; rather, clients are looking to agencies to bring real value to their partnerships: new ideas, new thinking, new approaches, new strategies — things that can help move their missions forward.

PLAYING A BASKETBALL GAME, NOT RUNNING A

RELAY RACE. Because the nature of highly collaborative teams is fluid and oftentimes informal, it requires a different approach to doing the work: alignment around responsibili-ties, an agile process that allows for flexibility, leaner teams where everyone has a role to play, and a commitment to pivoting when it makes sense. It’s no longer about saying, “This is how it’s always been done,” or having a person or the agency doing one thing and then passing the baton to the next person in line simply because that’s what the process tells us to do. We need to build dynamic teams where everyone works toward the same goals together. Groups made up of individuals with abilities and talents, but also possessing what all successful teams require: trust in one

another, belief that each member knows their role, and faith that everyone will do their part. Clients also need to manage their agencies well and actively work toward breaking down silos, especially in larger organizations. A rising-tide-lifts-all-boats mindset has to be entrenched within an organization’s culture and everyone, from the top down, must embrace this as their personal mantra.

FINDING THE BEST TALENT. I often hear leaders say attracting, retaining, and growing talent is one of the most important issues for agencies. I disagree. I think it’s the only issue. Agencies are service businesses. Service is always about people. We can’t bring new ideas to clients, develop greater expertise in the work we do, or transform the industry in the ways we all want without the right talent. We must be willing to find the best writers, designers, thinkers, analysts, and strategists out there, whatever industry they may be in. We also need to be commit-ted to investing in and growing the talent we already have. All of the challenges we face today as agencies, whether it’s coming up with fresh ideas that lead to new creative approaches, smart insights that lead to bold strategies, or streamlined processes that lead to operational excellence, can only be addressed by having the right talent in place, especially in leadership roles. I believe that for agencies, this singular focus on talent is what will lead to our best and brightest days.

To learn more about Full Hearts, visit www.withfullhearts.com. ■

Know Now(3 QUESTIONS FOR ALAN HALL)

GROWTH OPPORTUNITIES

1-Day Conference: New Challenges and New Ideas DAVMarch 4Washington, D.C.

Nonprofit Federation Leadership SummitMay 4–6Memphis, Tenn.

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EVENTS

“ THE DISTINCTION BETWEEN NONPROFIT AND FOR-PROFIT IS BECOMING A LESS CRITICAL POINT OF DIFFERENTIATION AMONG YOUNGER AUDIENCES.”

— ALAN HALL

5Nonprofit Journal VOLUME 22 / ISSUE 3 / WINTER 2020

There has never been a better time to be a qualified worker in virtually any field. With unemployment rates at historic lows and organizations competing fiercely for the best talent, Gallup reports that more than half of current employees are actively looking for a new job or watching for openings, and 35 percent have changed jobs within the past three years.

In such a seller’s market for talent, it behooves organizations of all types to develop and deploy strategies to retain their top performers, and to formulate plans to replace them when they leave.

Unfortunately, many nonprofits have fallen behind in this area: just 19 percent have adopted a formal retention strategy, according to a recent

survey conducted by Nonprofit HR, a firm focused on the talent management needs of social impact organizations. The three greatest talent retention challenges nonprofits face

SOLVING THE TALENT

CONUNDRUMHow to retain top employees and fill their shoes when they move on

BY MICHAEL J. MCDERMOTT

6Nonprofit Journal VOLUME 22 / ISSUE 3 / WINTER 2020

SOLVING THE TALENT CONUNDRUM

are employees under 30, employees in specific program/administrative areas, and entry-level staff.

Nonprofit organizations in 2019 experienced average total turnover of slightly more than 21 percent, with voluntary turnover outpacing involuntary turnover by more than three-to-one, the Nonprofit HR survey found. The single largest driver of voluntary turnover was lack of opportunity for upward mobility/career growth, cited by 60 percent of survey respondents, followed by compensation/benefits (48 percent).

Compounding the challenges is an expected acceleration of baby boomers exiting the workforce. Comprising one of the most important segments of the working population, older workers are valued for their experience, working relationships, and “contributions to the organization’s continuity and future success,” according to a report from Willis Towers Watson, a global advisory and risk management firm.

However, while more than 80 percent of the organizations surveyed by Willis Towers Watson believe retirement is an important issue they must address, only about half said they have a good understanding of when their employees will retire, and just a quarter take steps to effectively manage the pace and timing of employee retirements.

Bottom line: nonprofits need to step up their game when it comes to effective end-to-end management of the HR function, experts say, from recruiting new employees to mentoring and developing existing employees to succession planning.

SUCCESS REQUIRES AN END-TO-END STRATEGYA broad-based strategy is key to keeping nonprofit organizations well prepared for all contingencies. “Developing talent is never a waste of time,” says Vincent Robinson, founder and managing partner

of The 360 Group, an executive search firm focused on mission-driven organizations. It improves loyalty and retention, and grateful employees who move on to other positions may come back later as donors, board members, or even to fill executive positions, he says.

Adopting nontraditional approaches to fill talent gaps can help nonprofits meet today’s workforce challenges, says Jennifer Hoffman, partner in audit services, not-for-profit and higher education practices at Grant Thornton. “This may look different for each organiza-tion, but some common themes include expanding or eliminating the geographic reach and/or allowing for remote work, upgrading or enhancing technology solutions, and creating a culture that supports practices that meet the needs of today’s professionals and the professionals of tomorrow,” she notes.

Such approaches are effective for sourcing candidates and in creating an environment that is

Nonprofits need to step up their game when it comes to effective end-to-end management of the HR function, experts say, from recruiting new employees to mentoring and developing existing employees to succession planning.

Lack of opportunity for upward mobility/career growth

Compensation/benefits

Dissatisfaction/disengagement with current organization/culture

Dissatisfaction/disengagement with current leadership

FIGURE 1

Largest Drivers of Voluntary Turnover at Nonprofits2019 NONPROFIT HR SURVEY

60%

48%

26%

22%

7Nonprofit Journal VOLUME 22 / ISSUE 3 / WINTER 2020

SOLVING THE TALENT CONUNDRUM

attractive for long-term career sustainability for existing high performers, Hoffman says.

In its “The State of the Not-for-Profit Sector in 2019” annual report, Grant Thornton calls out two HR-related best practices for nonprofits:• Measuring performance based on results and output

instead of input or number of hours and physical presence in the office.

• Creating a cultural and operational shift to allow for compressed workweeks, job sharing, remote work options, flexible hours, or flexible time off.Nonprofit HR’s report deems cultural fit as “argu-

ably the most important aspect of retention.” Culture encompasses values (e.g., safety, empowerment, trust, and respect), beliefs, work ethics, acceptable behavior, unwritten rules, and value propositions that define what’s in it for staff and stakeholders. Culture matters to a nonprofit’s mission because it helps attract talent, drives employee engagement, impacts employee satisfaction, and affects individual and organizational performance, the report relates.

SUCCESSION PLANNING IS A BESPOKE PROCESSBecause there are so many different types and sizes of nonprofit organizations, there are many variables involved in deciding how deep into an organization’s employee hierarchy succession planning efforts should extend.

“Succession planning is a very personal exercise for each organization, depending on the complexity, size, scale, and programmatic offerings,” Hoffman says. “For example, a global NGO will require a more detailed, deeper succession plan than a local or regional nonprofit with a handful of programs. The succession planning process is one that should be integrated across all levels of senior management and with board input.”

While succession planning and the process needed to achieve a successful outcome will vary by organiza-tion, some key steps will be consistent, Hoffman says. The first step in the process should always be an inventory of key leadership roles to identify the areas of operational and programmatic functions that would be most impacted by a departure.

Next, an organization should determine if there are potential internal candidates either ready to fill a role should a vacancy arise, or who show strong potential

to do so in a short period of time with the right coaching and mentoring.

It’s especially important to extend this assessment beyond the C-suite, Hoffman stresses. “Many critical functions at nonprofit organizations lie within areas that are client-, student-, or constituent-facing, which could pose a reputational risk if an unexpected vacancy were to arise,” she notes.

Here’s how three different nonprofits are building talent bench strength and effective succession planning in the real world.

BOYS TOWNDedicated for more than 100 years to providing at-risk children with the love, support, and education they need to succeed, Boys Town is constantly innovating to recruit and retain top talent, says Jonna Wrice, SVP of human resources at the Nebraska-based nonprofit.

“We have always had a robust recruiting strategy here at Boys Town. We are blessed to get to do amazing work through our mission and purpose, and that allows us to attract people who are passionate and committed to helping children, patients, and families,” she says.

Boys Town recruiters partner closely with the service lines in hospital and youth care, and they form

Track turnover

Track tenure

Track first-year resignation rate

Track high-performer resignation/regrettable turnover rate

Track cost of turnover

FIGURE 2

Quantitative Metrics Used by Nonprofits to Measure Retention2019 NONPROFIT HR SURVEY

98%

66%

41%

27%

17%

8Nonprofit Journal VOLUME 22 / ISSUE 3 / WINTER 2020

SOLVING THE TALENT CONUNDRUM

a deep understanding of its most in-demand positions, Wrice reports. The organization posts positions in channels not commonly used in the for-profit sector, such as Craigslist and church bulletins.

“We believe that our success as an organization is directly related to our talented and attentive multicultural workforce,” she says. “We view attracting and retaining a diverse workforce as our most important functions and a key success factor in our recruiting efforts.”

Retention efforts are built around employee develop-ment, with leaders empowered to provide outside education, certifications, and mentoring for all staff members. Internal efforts include a strategy developed

by the organizational learning and development team that facilitates training in supervisory essentials. It also supports individual and team opportunities through consulting engagements and coaching.

The Boys Town Emerging Leaders program provides more than 250 members with opportunities for professional development, community outreach, and social interaction and networking within the organization. “We ensure the continued success of our Emerging Leaders program by including its sponsor-ship and support as part of the annual goals for our COO and national executive director,” Wrice says.

In the past, succession planning efforts have been focused on the director level and up, primarily involving talent reviews/calibrations and individual development plans. As of this year, Boys Town has put in place the tools and resources needed to support the same exercise at every level of the organization, including individual contributors.

One of Boys Town’s key organizational initiatives has been, and continues to be, “developing leaders for the next 100 years,” Wrice says. “To continue our mission, we must have the best and brightest talent committed to and passionate about that mission.”

ASSOCIATION OF THE MIRACULOUS MEDALAverage employee tenure at the Association of the Miraculous Medal (AMM) is 31 years, and that’s very important to the organization. “We know that our biggest asset is our 60 employees, and we know that they are the best ones to recruit new employees, but it starts with leadership,” says President and CEO Don Fulford. “We have to make sure this is a great place to work. We have to be understanding, transparent, and fulfilling.”

AMM leadership maintains an open-door policy as part of its commitment to transparency, and it hosts a monthly “Ask the CEO” luncheon, where staff members can, and do, ask about anything on their minds, such as trends, directions, finances, and internal challenges. The luncheons also provide great feedback to the organization’s leaders, Fulford says.

“Each month, we hand out thank-you notes with five-dollar gift cards to employees who are going above and beyond,” he says. “We keep the culture very positive, we recognize people, we laugh at ourselves, and we read testimonials from people all over the

Exit interviews

Effective onboarding

Engagement surveys

Recognition programs

Culture or climate surveys

Stay interviews

Long-service bonuses

Retention bonuses

Loyalty programs

FIGURE 3

Qualitative Tactics Used by Nonprofits to Measure Retention2019 NONPROFIT HR SURVEY

88%

65%

58%

56%

37%

30%

21%

13%

5%

9Nonprofit Journal VOLUME 22 / ISSUE 3 / WINTER 2020

SOLVING THE TALENT CONUNDRUM

country who were touched by our work. We know that a fulfilling job is also a rewarding one.”

AMM offers reimbursement for education, payment for counseling, a three-month mentoring program for new employees, and it randomly celebrates offbeat “holidays” like National Chocolate Day and National Pizza Day, “just to keep it from getting routine,” Fulford says.

He believes the combination of a transparent culture, unique benefits, employee mentoring and development, and a fun atmosphere gives the organization a leg up in a tough hiring environment. “When it comes time to recruit, we get more of the best applicants and can choose the best candidates,” Fulford says.

On the succession front, the organization has a plan in place for every position. “We cross-train and allow others to support our work while we are gone, so no one person has all the information,” Fulford explains. When someone is on vacation or traveling, a designated backup steps in for them. “It helps test the system and allows us to trust and rely on each other,” he says.

There are detailed succession plans for the five executive team members. An emergency folder for each leader contains duplicate keys, passwords, and “any special instructions should they get hit by the milk truck,” Fulford quips. The plans cover everything from personal items left behind to family support to transitioning to a new leader.

“Organizations that don’t think about succession are going to suffer sooner or later,” Fulford says. “We’ve all heard the cliché that failing to plan is planning to fail.”

DEBORAH HOSPITAL FOUNDATIONStephen J. Toal, chief development officer at the Deborah Hospital Foundation, recently dealt with multiple personnel changes, a restructuring of his lean but efficient fundraising team, and the kick-off

of a major effort to fund a new building program. He relied heavily on many of his personal long-term relationships with donors to help navigate the process, and the experience shaped his views on talent retention and succession planning.

“It’s important to start with buy-in from senior leadership on a plan that crosses all departments,” he says. “Manage with an open mind. Make it an organizational priority so that leaders at various levels in all departments have an awareness that mentoring and succession plans are important when it comes to hiring and developing talent.”

Toal focused on hiring people who were not only capable of doing their own job, but also had higher- level experience or the capability of growing into higher-level positions. “As new employees come on board, make an aspect of their work geared toward the position above them so that, over time, they are capable of filling their manager’s position more seamlessly than a new hire,” he advises.

Succession planning should apply to all levels of the organization, not just senior management, Toal believes. Processes should be put in place to identify employees who are capable of vertical growth and possess suitable organizational values. An appropriate mentoring plan should then be created for each of those individuals.

“Succession planning is like buying talent insur-ance for the future,” Toal says. An effective plan makes it possible for a nonprofit organization to carry on with little disruption in the event of the loss of a key leader, and it’s also an office morale and engagement booster, he says.

“Grooming employees for their future roles by giving them more complex tasks and investing in their growth keeps them focused, motivated, and loyal to the organization,” Toal adds. ■

“ Organizations that don’t think about succession are going to suffer sooner or later. We’ve all heard the cliché that failing to plan is planning to fail.” — DON FULFORD, president and CEO of the Association of the Miraculous Medal

10Nonprofit Journal VOLUME 22 / ISSUE 3 / WINTER 2020

FINDING PURPOSE

FOUR NONPROFIT LEADERS SHARE WHAT ATTRACTED THEM TO THE INDUSTRY AND KEEPS THEM ENGAGED AND INSPIREDBy Anne Field

Working for a nonprofit isn’t for everyone. The industry has a reputation for low pay, long work hours, and high burnout.

But for many people, the nonprofit work experience is deeply rewarding, on both a personal and professional level. That’s as true for employees at world-renowned organizations as it is for those at smaller ones. In fact, a survey from TIAA found that three out of four employees and eight in 10 managers choose to work at their nonprofit organizations because they’re committed to making a difference in people’s lives.

With that in mind, we talked to four nonprofit leaders to learn what attracted them to the industry, what they appreciate most about their jobs, and how their organizations keep them engaged, feeling valued, and professionally fulfilled. Here, in their own words, are their perspectives:

11Nonprofit Journal VOLUME 22 / ISSUE 3 / WINTER 2020

FINDING PURPOSE

Growing up I never aspired to work for a nonprofit. It was

more a stroke of luck. I was a year and half out of college, working for a for-profit at the time, and my wife’s boss told me he’d heard they were hiring a webmaster position at Ducks Unlimited. I wasn’t looking for a job, but my wife knew about my passion for duck hunting and the outdoors. As a kid I grew up in Olive Branch, Miss., going to Ducks Unlimited events. My dad was a volunteer. It was an important part of my life. When I saw an opportu-nity to combine my college degree in management information systems with that passion, it was a no-brainer. I applied the next day and was fortunate enough to get the job.

That was 17 years ago. At the time it was a one-person department. Now we have a depart-ment of eight people responsible for all digital media and marketing programs, including online fundraising.

If you work in a nonprofit where you truly have a personal connec-tion to the mission, it makes a huge difference. Most of the staff are people who care about conservation, love the outdoors, and cherish our hunting traditions. At the end of the day, we’re all here to collect a pay-check to provide for our families. But there’s a huge bonus knowing you play a role in accomplish-ing a mission you believe in. When you have that common bond with your colleagues, it makes getting the job done a

ANTHONY JONESDirector of digital marketing and media at

Ducks Unlimited, a 750,000-member nonprofit focused on wetlands and waterfowl conservation.

BARBRA LACHDirector of membership at the Metropolitan Opera,

the largest classical music organization in North America.

lot easier and more enjoyable.

I also like the sense of community I experience with those in the nonprofit sector outside the organization. We attend a number of conferences every year in the nonprofit and digital space and I learn from my peers about the challenges they face. It’s an open and sharing community.

Coming here from a for-profit was a culture shock, in a good way. It’s more laid back. We’re still very professional and

work very hard. But it’s like a second home. There’s a lot of flexibility. At any given time you’ll see a couple of dogs in the office, a kid in their mom or dad’s office because there’s no one at home to watch them. Our executive management team has turned over a few times since I started here, but the culture has stayed the same. It gives us a leg up in employee retention. Our CEO often says that “culture eats strategy for lunch every time.” I couldn’t agree more.

I have worked for nonprofits my whole career and I’ve always had a passion for the performing arts. However, my first job was at a nonprofit social

service organization. That turned out to be a good starting point, because it exposed me to the world of development and fundraising. After more than a decade working as a fundraiser for several nonprofits,

12Nonprofit Journal VOLUME 22 / ISSUE 3 / WINTER 2020

FINDING PURPOSE

It’s rewarding to work with people from different backgrounds, while sharing a common purpose — to help build a strong future for the Met and an extraordinary opera house.” — BARBRA LACH

I was offered a position at the Met as director of membership in 2012. Since then, I have managed the Met’s broad-based giving programs, from the Guild Membership program to the Metropolitan Opera Fund campaign. And there’s no other place I’d rather be.

I feel very fortunate to work with such dedicated, smart, and talented people who love this organization. I can honestly say we have some of the most loyal and generous supporters of any nonprofit. I greatly enjoy hearing stories from our donors about how their families have enjoyed the Met — some for generations — and how much the Met means to them.

When you come to see a performance at the Met, you’re transported — it can be magical. It’s truly an immersive and unforgettable experience. But I wasn’t an opera lover until I started working here. I remember the first time I saw Puccini’s Madama Butterfly — that was the performance that hooked me. I feel that everyone should experience the opera whether it’s live or in the movies, through The Met: Live in HD series.

There is a sense of family here. For example, we just had our annual bakeoff, which is facilitated by the Met’s Education Department. Anyone can enter and it helps foster a spirit of community. Participants bring in their best baked goods and present them to a panel of judges. Usually an artist or two will be asked to judge. Dozens of people participate and everyone who wants to join in the festivities is welcome. It’s just one of the events that brings us all together.

My purpose is to help build a philanthropic base of support for an organization that is important to the landscape of New York City and of performing arts, in general. It’s rewarding to work with people from different backgrounds, while sharing a common purpose — to help build a strong future for the Met and an extraordinary opera house. We all feel a sense of pride about working here.

I moved into the nonprofit fundraising world in 1999, at age

30. Prior to that, I was in the retail and clothing sectors. Then I moved to D.C. and started at a production firm doing direct mail. I didn’t like the production part, but I got interested in the strategies of my nonprofit clients.

After that, in 2002, I went to the American Red Cross and it was a once-in-a-life opportunity to really grow as a professional. A lot happened while I was there — the tsunami,

Katrina, the Haiti earthquake. It is an amazing organization. They help people in a time of need and it’s something that feeds your soul. In 2010, I moved to the agency side where I focused on cultural fundraising, specifically membership. What attracted me was the ability to support a mission, not selling your soul to the devil.

After that, a great opportunity arose at the Smithsonian Institution. I was able to leverage both my experience at the Red Cross in a chapter-based

JOHN PERELLDirector of strategy and member experience at the Smithsonian Institution, the world’s

largest museum and research complex.

13Nonprofit Journal VOLUME 22 / ISSUE 3 / WINTER 2020

FINDING PURPOSE

organization and in the cultural space, so I joined the Smithsonian in 2013.

Typically, nonprofits have a really good culture. The challenge is, I’ve chosen to work at very large nonprofits. With that comes some bureaucracy. And because we focus on delivering so much money to build a mission, we don’t invest in the

technical infrastructure of operations. So we have to be a little more creative and we’re not able to be on a par with commercial marketers. But working in a culture that’s supportive of the mission — that’s the most important part.

One of the reasons I chose the Smithsonian is they really do invest in staff development. They make sure we’re engaged

internally and developed professionally. It’s written into our job description that we are engaged with the industry and are encouraged to participate and speak at confer-ences. After all, our mission is the increase and diffusion of knowl-edge. There’s also a lot of opportunity here. We’re always looking to promote from within. You may

want to leave a small museum and we’ll bring you into a larger entity. The focus is keeping people within the Smithsonian family.

I like working for an organization that isn’t just focused on driving profits. It’s making the world a better place. I love what I do and I don’t know a lot of people who can say that about their careers.

I learned about the UFW in high school. And I participated in the lettuce boycott. Then when I joined the UFW, the organization had made a

commitment to a new direct marketing program. I came in as part of that effort. I didn’t have any background in direct mail at the time. My background was in petition drives, voter registration, and door-to-door canvassing for nonprofits. But I caught on right away. I was analyzing list results from day one.

A lot has evolved. We added telemarketing, planned giving. Our store is online. Now I’m in charge of direct mail, telemarketing, planned giving, contributing members, and mailing lists. Also, when we started,

ALISON D.S.L. ARNOLDDirector of direct response at the United Farm Workers

of America (UFW), the union for farm workers.

we were all full-time volunteers — room and board and a stipend. That didn’t change for me until 1999.

It’s important to me to be able to see that I have an impact. I think that’s something you don’t often get in the for-profit world. You can make your sales goals. But what does that mean for people? Our organization is a labor union, so we’re essentially owned by our clients, our members. The hardships these workers face — heat and pesticides, in some cases a lack of water, accidents. We help empower people so they don’t get taken advantage of, through union contracts, legislation, and litigation. Also, there’s a satisfaction from working with like-minded people. And we’ve had wonderfully loyal donors, people involved since the grape boycott of the 1960s.

I’m very motivated by finding out what’s going on in the field, learning about workers’ stories, and what having a contract has meant to their lives. I go to a weekly meeting with managers from membership so I know what’s going on — things that are close to the core of what we want to accomplish.

If I get an idea for, say, a mailing, I can pretty much go with it. We control most of the creative and that’s really important to me. I feel I’ve helped to grow and establish us as an organization. I think people know I have a lot of experience and respect that. I’m part of our history, the same history I learned about in high school. ■

14Nonprofit Journal VOLUME 22 / ISSUE 3 / WINTER 2020

Since 2009, ALSAC, the fundraising and awareness organization for St. Jude Children’s Research Hospital, has led an effort to improve diversity and inclusion across its locations. The Memphis-based nonprofit’s leaders conduct regular employee surveys and focus groups, and they have established “business resource groups” they call BRGs, that bring together staff from underrepresented populations to help with recruitment, retention, and community relations. ALSAC managers receive regular training on diversity and inclusion, and division heads work with human resources to measure progress.

Not coincidentally, ALSAC has grown fundraising to an annual $1.7 billion a year to support the increasing needs of St. Jude Children’s Research Hospital, which has an

annual operating budget of more than $1 billion.“We’re continually asking ourselves, ‘Are we attracting the next generation of employees who reflect the cultural

balance of the population we’re serving?’” says Evelyn Homs Medero, SVP of multicultural marketing and business

To be seen as authentic, nonprofits must reflect the communities they serveBY CHUCK KAPELKE

MAKE DIVERSITY A PRIORITY

15Nonprofit Journal VOLUME 22 / ISSUE 3 / WINTER 2020

MAKE DIVERSITY A PRIORITY

development at ALSAC. “As a nonprofit, it’s important that every community in America understands our mission, and that we bring them in as donors. The only way we can be authentic is by having a diverse workforce that can communicate our mission with the passion, knowledge, sensibility, and respect that every community deserves.”

ALSAC’s experience may be the exception to the rule, as most nonprofits still struggle with building and maintaining a diverse workforce. A report by Community Wealth Partners found that, while people of color represent 30 percent of the American workforce, only 18 percent of nonprofit staff and 22 percent of founda-tion staff are people of color. The numbers are worse in the leadership ranks: BoardSource’s “Leading with Intent: 2017 Index of Nonprofit Board Practices” found that 90 percent of all nonprofit executive directors and board chairs are white.

“The nonprofit sector has been talking about how diversity matters for many years, and there have been a variety of initiatives, and yet it hasn’t moved the dial,” says Sean Thomas-Breitfeld, co-director of the Building Movement Project, which generates research and resources to help nonprofits improve equity and inclusion. “The barriers are basically the same across the whole country. The fact that white men are often heads of the biggest organizations with the biggest budgets speaks to the structural inequities. That filters down to people of color having less opportunity to move into top leadership roles.”

Diversity can have a big impact on financial performance, as many grant-making foundations consider the makeup of a nonprofit’s board, leader-ship, and staff when making decisions around philanthropic giving. Having a diverse workforce can also affect mission success: when communities do not see themselves reflected in a nonprofit’s workforce, they may be less willing to connect and engage.

“It really is at the bottom line for nonprofits,” says Rick Cohen, chief communications officer at the National Council of Nonprofits. “Each organization can benefit in a different way, but at the end of the day, a more diverse workforce helps advance our communities, and that’s what we’re here for.”

Experts and nonprofit diversity leaders shared their perspectives on some key steps organizations can take to move toward diversity, inclusion, and equity.

FILLING THE PIPELINE

Many nonprofits fall short when it comes to attracting a diverse pool of candidates. Worse, they alienate potential employees through their hiring and onboarding processes.

“If you’re just putting a job description in a spot where you’re going to get the usual suspects applying for a position, that’s not a way to bring in additional candidates,” Cohen says. “Being as transparent as possible will help bring in the right candidates and help ensure you are being equitable as you’re bringing them on to your team.”

Nonprofits should cast a wide net and focus their recruiting efforts in communities where they lack representation. HR leaders should scrutinize their hiring process to consider how certain practices — such as probing interview questions or psychometric testing — may be off-putting to potential candidates. Hiring managers can make a more positive first impression through candor and openness.

“I was talking to a young man who took a job in an organization because, of all the places he interviewed, they were the only place that said to him, ‘We understand that our city has a reputation as a difficult place for black professionals,’” says Valerie Batts, Ph.D., co-founder and executive director of VISIONS, Inc., a consulting firm serving nonprofits and other organizations.

CREATING AN INCLUSIVE ENVIRONMENT

Hiring is only the first step in building a more diverse workforce; to support long-term retention, it’s vital that organizations invest in creating a workplace culture that supports a

diversity of opinions and backgrounds and makes everyone feel welcome. Ongoing training and open discussions about diversity and inclusion, as well as related concepts like unconscious bias and microag-gression, can help surface issues before they fester into larger ones.

“A lot of big, well-meaning nonprofits struggle with how to have their people feel valued in the workplace,” Batts says. “People bring different worldviews to work

16Nonprofit Journal VOLUME 22 / ISSUE 3 / WINTER 2020

MAKE DIVERSITY A PRIORITY

these days, and organizations that are going to survive will have to learn how to manage that. If you were raised in a culture where people work hard, get paid, and don’t complain, that’s not going to fly in this current world. Older management systems and ways of approaching work have to be challenged.

“When we are successful, organizations can talk openly and honestly about issues of difference,” Batts continues. “They have strategies for how to interrupt them and address them and move forward. They become culturally aware and they become open to actively engaging in those issues. Over time, you will see changes in who is in charge of what, you will hear people openly engaging around those issues, you will see changes in demographics, and you will see changes in how people relate across the hierarchy. Also, employee surveys will get better as people feel they can bring their full selves to work.”

Nonprofits should also take steps to ensure their public-facing services are in line with the needs of diverse communities. YMCA of the USA is the coordinating body for roughly 2,600 YMCAs across the country. When multiple local Ys discovered that Hispanic and Latino families were shying away from sending their kids to YMCA overnight camps, the Ys created a family camp option. With the recommenda-tion and full support of the national office, local Ys also added camp policies to ensure transgender kids feel welcome and engaged, and they offer “inclusive household” memberships to accommodate all types of families. Last year, YMCAs nationwide welcomed more than 100,000 newly arrived immigrants during its “welcoming week” initiative. Each year, the YMCA New American Welcome Center serves more than 400,000 new immigrants.

“Think of what that means for elevating ourselves as an inclusive space to work or volunteer,” says Lynda Gonzales-Chavez, chief diversity, inclusion, and global officer at YMCA of the USA. “If our practices as an organization are not reflective of the needs of our communities of color, then they’re not going to want to come work for us. All these things are connected. It’s not separating out recruitment goals and race and ethnicity goals, but combining those with organiza-tional support mechanisms for long-term pipeline building and retention.”

MOVING TOWARD EQUITY

Nonprofit leaders should bear in mind that building a more diverse workforce is just the start of the journey. “If you have a more diverse workforce, there’s a possibility that the diverse viewpoints

will not always be in alignment; there might be disagreement and tension,” Thomas-Breitfeld, of the Building Movement Project, says. “Then the organiza-tion has to shift toward really valuing inclusion, and that moves an organization toward having equity, which is about power within organizations.”

As an example of how leadership can be shared, the vast majority of Special Olympics’ chapters in more than 190 countries and territories have at least one board member with intellectual disabilities, while its international board has three such members. Input from these members has contributed directly to key organizational decisions, such as how to communicate the strategic plan for the world’s largest sports organization for people with intellectual disabilities.

“We embrace the idea that the group we work with should have a voice at our most senior leadership level,” says Denis Doolan, chief of organizational excellence at Special Olympics. “It brings different perspectives and experiences to the table to ensure you’re not just thinking about a problem in a certain way. It has definitely made our culture more inclusive and tolerant.”

If you were raised in a culture where people work hard, get paid, and don’t complain, that’s not going to fly in this current world. Older management systems and ways of approaching work have to be challenged.— VALERIE BATTS, Ph.D., co-founder and executive director of VISIONS, Inc.

17Nonprofit Journal VOLUME 22 / ISSUE 3 / WINTER 2020

MAKE DIVERSITY A PRIORITY

Special Olympics has adopted a “Unified Leadership approach,” in which training is provided not just to intellectually disabled people who take jobs within the organization but also to their co-workers and managers. “It’s not just training people with intellectual disabilities to do certain roles; it means training everyone else to facilitate those roles,” Doolan says. “It’s about asking people, ‘What would help you feel supported?’”

GETTING HELP — AND THINKING LONG TERM

Tackling diversity and inclusion can be daunting, and nonprofits should not be afraid to tap the expertise of outside organizations. An array of resources are available to help start the conversation

(see sidebar, right), but organizations should take stock of and develop solutions tailored to their unique circumstances.

“There’s not a cookie-cutter approach to this,” Batts says. “It starts with figuring out where your organization is in the process of moving from one that doesn’t understand anything about diversity to one that is woke. Where are you in the journey? Don’t try to figure it out on your own. Get some consultation, at least to assess where you are. Conduct an organiza-tional assessment, a diversity audit. This can help identify what your barriers are at each level.”

It’s also essential to have senior-level buy-in and a demonstrated willingness to invest time and resources to drive the necessary change. ALSAC’s Homs Medero notes that her organization’s efforts are successful in large part because they are spearheaded by the CEO and his executive team. “When senior leaders believe in the strategy, then the company follows,” she says.

Defining goals and setting up systems for measure-ment are also key to staying on track. “Organizations have to have a very clear definition of what diversity means for them,” Homs Medero says. “What are they solving for, and what is it they want to have their workforce look like in the future? Define it first, then determine the vision and strategy you need to create that change. But you also need commitment and accountability, because otherwise the vision and strategy will die on a piece of paper or in a conference

Resources to ConsiderA variety of consulting organizations and other resources are available to help nonprofits navigate challenges related to diversity and inclusion. Here are a few places to start:

Building Movement Project. Develops research, tools, training materials, and opportunities for partnership that bolster nonprofit organizations’ ability to support the voice and power of the people they serve.

Equity in the Center. Organizes convenings and summits to help nonprofits and philanthropic organizations with racial equity. Publications include “Awake to Woke to Work: Building a Race Equity Culture.”

National Council of Nonprofits. The organization has aggregated a variety of articles and other resources related to diversity in nonprofits.

National Diversity Council. A nonprofit organization dedicated to bringing together the private, public, and nonprofit sectors to discuss the many dimensions and benefits of a multicultural environment. Comprises state and regional councils, the National Women’s Council, the Council for Corporate Responsibility, and the Center for Community Leadership.

VISIONS, Inc. Long-established consulting firm with experience in helping nonprofit clients with challenging issues related to diversity and inclusion. — C.K.

BUILDING EQUITY

room. Leadership has to keep it alive throughout the year by asking the difficult questions.”

Boosting diversity can have immense payoffs, but leaders should remember that the transition toward race equity is never-ending. “Leaders have to think much more expansively about the time horizon for change,” Thomas-Breitfeld says. “Organizations often want to fix the diversity or race issue in their organiza-tion in a condensed period of time, as if there’s going to be an endpoint. What people very quickly learn is there is a cyclical nature, a never-ending element to becoming more inclusive and equitable. What that requires as a leader is a level of comfort and facility in having difficult conversations over an extended period of time.” ■

18Nonprofit Journal VOLUME 22 / ISSUE 3 / WINTER 2020

Few professions have changed as rapidly and dramatically as marketing. With the need for sophisticated automation and artificial intelligence skills, excellence in social media communications, data-driven campaign

customization, and psychological insights into human motivation, marketing would seem to offer the profes-sional richness that students crave in a career choice.

Not exactly.Research conducted by the ANA Educational

Foundation (AEF) found that outstanding entry-level professionals simply don’t find the idea of marketing very sexy. As a result, organizations large and small are having an increasingly tough time attracting and

retaining top marketing talent, a problem that exists in both the for-profit and nonprofit worlds.

“When it comes to awareness and what people’s personal career objectives are, there’s definitely a marketing talent disconnect,” says Elliot Lum, SVP of talent strategy and program development at the AEF. “It’s a perception problem: marketing is seen by many younger people as just advertising and sales.”

According to the AEF report “Bridging the Talent Disconnect: Charting the Pathways to Future Growth in the Marketing and Advertising Industries,” the biggest overall marketing gap is in digital marketing, where 56 percent of marketers expressed a need for technology talent but were able to fill only 24 percent of openings.

Marketing’s Call to Action

RECRUITING THE NEXT

GENERATION OF MARKETERS IS A CHALLENGE OF GROWING IMPORTANCE

BY CHRISTOPHER

HOSFORD

Illustration by David Plunkert/theispot.com

19Nonprofit Journal VOLUME 22 / ISSUE 3 / WINTER 2020

MARKETING’S CALL TO ACTION

Similar gaps were seen in creative services (an eight-point gap), marketing operations (six points), and research and analysis (five points).

Lum notes that colleges themselves may not be particularly helpful. Business majors are often drawn to careers seen as more lucrative, such as finance and accounting. Even within the marketing track, profes-sors often come from the academic world, without the kind of agency or marketing department experience needed to fire young people’s imaginations about the complexity and appeal of the profession.

“One of the challenges that prevents people from breaking into the marketing industry is that the roles are becoming hyper-specialized, and many job titles didn’t exist a few years ago,” admits Joe Picini, assistant director of marketing and communications at New York University (NYU). “It’s not just about email, social, and web anymore. Organizations are looking for growth marketing specialists, acquisition and retention marketers, and big data analysts.”

RETENTION CAN FOIL RECRUITMENTWhile acquiring and retaining talented marketers is an industrywide challenge, nonprofit organizations may be bearing the brunt of it.

“If we just focus on entry-level positions, attracting marketing talent isn’t a problem for us,” says Shelley Diamond, CMO at UNICEF USA. “The problem is keeping that talent even beyond two years. You train them, they learn their craft, then take those wonderful skills and go somewhere else.”

Diamond acknowledges that salary levels within the nonprofit world are generally below those in for-profit organizations because the bulk of fundraising is earmarked for charitable purposes. However, she says nonprofits can leverage their greatest strength — a sense of social responsibility — to help solve recruit-ment challenges.

It’s a sentiment echoed by Lisa Bowman, EVP and CMO at United Way Worldwide, who says nonprofits’ altruistic goals can provide a “unique and distinct” advantage in attracting young marketing professionals.

“The people who are coming to us are those who want to work for the United Way specifically,” Bowman says. “It’s about the mission, about a bigger purpose. Almost every company today has a corporate social

responsibility strategy. But at United Way, we live and breathe it. It’s our unique competitive advantage in attracting talent.”

Bowman herself is an example. She spent 16 years as a marketer at UPS before United Way asked her to head up its marketing team.

Diamond can relate to Bowman’s journey. Before joining UNICEF USA, Diamond worked for the agency Y&R and spearheaded “Y&R Inspire Change,” an initiative designed, in part, to help for-profit client partners reinforce their “social purpose.”

“The response to the initiative within Y&R was overwhelming among both young and older employees; it helped nonprofits to be smarter marketers when it came to the new generation of donors,” Diamond says.

EXPANDING THE RECRUITMENT NETNader Ashway, a graduate professor of integrated marketing at NYU, says that while business majors are often the main candidates for a marketing career, there should be a push to cast a wider recruitment net.

“Take communications, for example, which typically means a career as a radio producer, speech-writer, or PR agent,” says Ashway, who is also founder and creative director of the New York City–based agency moddern marketing. “I could most certainly see an English major being more reflective of marketing,

Nonprofits can leverage their greatest strength — a sense of social responsibility — to help solve recruitment challenges.

20Nonprofit Journal VOLUME 22 / ISSUE 3 / WINTER 2020

MARKETING’S CALL TO ACTION

embracing social media and content development, because it’s almost entirely about the ability to wield language. And because marketing is about perception management and deconstructing behavior, psychology majors could find a real role as ‘interpreters’ of consumer or donor signals.”

In broadening the field of marketing prospects beyond business majors, Steve Petersen, marketing technology manager at the nonprofit Western Governors University in Salt Lake City, says information technology majors can find marketing to be a particularly attractive alternative. He should know. With an undergraduate degree in international relations and a master’s in information management, Petersen nevertheless wound up in marketing.

“Marketing will always have a need for creative types, but someone with a math degree would find it exciting to go into marketing as a career,” Petersen says. “I’d love to see college job fairs attract both math and science majors to marketing jobs. A chemistry major might not want to go into academia, but that kind of intellectual rigor would help in marketing.”

Petersen says working for a nonprofit organization and helping people improve their lives provides daily reinforcement that he’s made the correct career choice.

OTHER OPPORTUNITIESAnother possible advantage nonprofits have in attracting marketing talent is they run leaner marketing operations. This provides more opportunity for younger staff to get involved in virtually every aspect of the marketing function, to a much greater extent than at an agency or for-profit company, Bowman says. “You’ll also have the opportunity to work with a board of directors and a wider network, which you’d never get to do otherwise,” she adds.

The AEF also recently explored the need for greater diversity in marketing. Its “Bridging The Diversity Disconnect” study analyzes how recruiting minorities — often overlooked in the recruitment process — can return benefits to marketing departments.

“More diverse teams drive business growth,” the study concludes. “Inclusivity also signals to our next generation of talent that their voices truly matter, that they belong in the marketing and advertising industry, and that their talent is sorely needed.”

For its part, in 2018, the AEF launched the Talent Forward Alliance (now the Talent Forward Committee), a cross-industry initiative aimed at attracting the next generation of marketers. Then in late 2019, the AEF and McCann Worldwide kicked off the “Best Jobs Ever” campaign to highlight the appeal of marketing as a career.

As part of the Best Jobs Ever campaign, the AEF is distributing a kit of materials to career services directors on college campuses that can be used to promote marketing and show how the industry is evolving. The kit includes talking points about a career in marketing, suggested social media posts and images to post on career center social accounts, printable posters, and an FAQ on marketing opportunities.

“Today’s new graduates are putting career growth front and center, and as a result we’ve been losing students to finance and engineering companies which can offer very clearly demarcated career paths,” says Gord McLean, president and CEO of the AEF. “We have to demonstrate the career paths that are possible in marketing, and how creative, dynamic, and meaningful those paths can be.” ■

A Twist on Retention Practices

A 2019 study by Deloitte found that perks and pay aren’t what matter most to employees. To drive retention, forward-thinking organizations are:

• Reframing rewards as a way to reinforce achievement and motivate high performance

• Exploring a more tailored approach responsive to workers’ individual needs and wants

• Talking about “total awards” that encompass compensation, benefits, well-being, development, and recognition

• Having workers create their own perspective of relative value through social media and other publicly available information

• Offering rewards as part of a broader focus on experience, often combined with learning, development, and career progression — C.H.

WHAT WORKS?

21Nonprofit Journal VOLUME 22 / ISSUE 3 / WINTER 2020

Policy Scorecard

FOUR ISSUES IMPACTING NONPROFITSBY SENNY BOONE

POSTAL: THE FUTURE OF THE USPS IS IN CONGRESS’ HANDS

The USPS is on an unsustainable financial path. In addition to losing a net of nearly $78 billion since 2017, the USPS must prefund health costs for its retirees for 75 years, something no other government agency is required to do. Revenue is not covering costs, delivery points are increasing, and there are fewer staff to handle services. Change is needed.

Recognizing the USPS is in trouble, and to drive more revenue, the Postal Regulatory Commission (PRC) proposed changes to pricing for market- dominant mail, which includes First-Class and Standard mail, periodicals, package services, marketing mail, and nonprofit mail. But these proposed

changes would cause rates to escalate for nonprofit mailers and add increased costs above the current capped rates. The new costs include a cost based on the density of mail delivered

GIVING IS DOWN: A UNIVERSAL CHARITABLE DEDUCTION IS NEEDEDThe wide-ranging 2017 tax reform, proposed by the Trump Administration and passed into law by Congress, preserved the charitable tax deduction but increased the level at which individuals ($12,000) and couples ($24,000) can take a standard deduc-tion. As a result, more donors are no longer itemizing their tax deductions. This reduces one primary incentive for individual giving, pointing to less charitable donations in the future.

The Joint Committee on Taxation (JCT) estimates the number of filers itemizing their returns fell from

XENIA “SENNY” BOONE, Esq.SVP, ANA NF

locally and the cost of mandated payments to Postal Service retirees. The USPS is reviewing the proposal. Stakeholder comments were due February 3.

As legislation and changes to postal rates loom, the mailing community must remain active and engaged to ensure that postal rates and oversight for the USPS continue under the current rate-setting system. The USPS is seeking freedom to set its own rates, a concern for charities that cannot afford price increases. As nonprofits continue to rely on the USPS for soliciting donations, broader solutions must be employed rather than large increases that will not be absorbed by the mailing community.

A rundown of the latest developments and issues of concern for nonprofit marketers and fundraisers who actively solicit donations from the public nationally.

22Nonprofit Journal VOLUME 22 / ISSUE 3 / WINTER 2020

POLICY SCORECARD

46.5 million in 2017 to just over 18 million in 2018. New legislation is needed to allow a universal charitable tax deduction “above the line” that may be used by everyone, regardless of the standard deduction. A large coalition, including the ANA Nonprofit Federation, supports a legislative solution, but it is difficult since it would be at a cost to the national budget with no revenue offset. Representative Mark Walker (R-NC) introduced the Universal Charitable Giving Act, in addition to earlier legislation introduced by Rep. Danny Davis (D-IL) and Rep. Chris Smith (R-NJ).

In other taxation news, the UBIT Coalition worked effectively to repeal the unrelated business income tax (UBIT) on nonprofit parking and transit benefits. This new tax had been passed, to the detriment of many organizations, as part of the 2017 tax law changes. The community mobilized and succeeded in advocat-ing for the repeal of this tax, led by the American Society of Association Executives and many ANA Nonprofit Federation members. Such work allows associations and nonprofit organizations to focus their limited resources on missions that benefit our society.

CALIFORNIA CONSUMER PRIVACY ACT: WHAT’S AHEAD?Nonprofit organizations increasingly rely on offline and online data to drive results. The California Consumer Privacy Act, the strongest and most complex state privacy law in the nation, launched January 1, 2020. California consumers now have a new set of privacy protections that grants them new choices with their data. Companies (nonprofits are exempt in the CCPA) must be more transparent about how they collect, use, share, and disclose personal information, including the provision of a “do not sell” notice. The CCPA impacts thousands of businesses nationally that collect California consumer data. The California Attorney General may impose civil

penalties, such as for a data breach ($2,500 per violation or $7,500 per “intentional” violation).

The CCPA also includes a private right of action that allows consumers to seek damages if their sensitive information is subject to a data breach due to a failure to implement reasonable security measures. The harsh penalties for data breach jeopardize legitimate companies with the potential for expensive lawsuits that could put them out of business.

Without third-party acquisition data, nonprofit organizations will encounter a diminishing pool of data. Nonprofits may also be asked by donors about their data choices.

The California AG issued draft regulations at the end of 2019 that have new regulatory requirements for California-specific notice and opt-out information. The ANA has submitted comments and testified about the impact of the regulations on business and charities. Enforcement will begin this summer, no later than July 2020, as mandated in the law. Alastair Mactaggart, the wealthy individual who sparked the privacy changes in California, is also expected to return with another proposed ballot initiative in 2020 that is even more restrictive.

A NEW NATIONAL PRIVACY LAW IS NEEDEDThe ANA is leading an industry-wide coalition to secure a new national privacy law so that companies and organizations that rely on data from legitimate data sources are protected from a checkerboard of differing state standards and cost-prohibitive require-ments. The Privacy for America coalition continues to meet with key members on Capitol Hill seeking a legislative remedy. It has issued a privacy policy roadmap which provides detailed principles that balance innovation with consumer privacy protection.

It is anticipated that national legislation will advance after the 2020 election, and the ANA must keep up pressure for a national remedy. ■

If you have questions or comments, please contact Senny Boone, Esq., SVP at the ANA Nonprofit Federation. If you would like to join the ANA’s advocacy efforts, please contact Chris Oswald, SVP of government relations at the ANA. They can be reached at sboone@ana.net and coswald@ana.net.

Achievement Award

Congratulations toour 2020 award winner!

Phil WilandChairman & CEO,

Wiland

LUNCHEON SPONSORED BY

Please join us in honoring Phil at the Gala Awards LuncheonThursday, February 20

We proudly present this award annually at the Washington Nonprofit Conference, to recognize outstanding career accomplishments by a fundraising professional. The recipient is determined based on the following criteria:

� is a professional fundraiser with either a nonprofit organization or a service provider

� is a respected authority on fundraising practices

� has demonstrated achievement, innovation, and leadership in the marketing community throughout his or her career

� serves as a source of inspiration and encouragement to others by exemplifying the highest standards in his or her work

� is committed to the professional development of others through shared knowledge and mentorship

Congratulations toour 2020 award winner!

Erica BestShare Our Strength/No Kid Hungry

Please join us in honoringErica at the Gala Awards LuncheonThursday, February 20

Young professionals are vital to our nonprofit community and it’s important to recognize those who are making great strides in shaping the future of our industry.

We are proud to present this award annually at the Washington Nonprofit Conference. The recipient is determined based on the following criteria:

★ is a professional fundraiser with either a nonprofit organization or a service provider

★ is a respected authority on fundraising practices

★ has demonstrated achievement, innovation, and leadership or the potential for leadership in the fundraising and marketing community

★ serves as a source of inspiration and encouragement to others by exemplifying the highest standards in his or her work

★

★★

★★

★ ★

★★

★★

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