A resource for corporations &
other businesses
that
want to make a commitment to social responsibility
by Jayne Cravens
via coyotecommunications.com
& coyoteboard.com (same
web site)
Executives
& Other Employees On Loan to Nonprofits
or
Serving on a Nonprofit or Citizens Board
An employee from a corporation or other for-profit
business serving as an employee-on-loan to a nonprofit works part-time or
full-time at a nonprofit organization for several months, possibly even a
full year, usually while still drawing all or part of their salary from
their corporation or business of employment.
Employees at corporations and businesses are also
targeted by nonprofits to serve on their board of directors or advisory
boards and by governments to serve on citizens boards, like a city's
public safety commission or a county's public health advisory council.
What does this kind of volunteering involvement mean
for a corporation or other business where such employees work?
Executives & Highly-Skilled Staff On Loan
Companies love the idea of executives-on-loan
programs because they can channel retiring employees into such roles,
paying them part of their salary but full benefits during the months they
work at the nonprofit as their employment at the company winds down.
Companies also like sending senior level staff on
volunteering sabbaticals, where a staff member, or even a team, undertake
a longer-term project at a nonprofit or school. For instance, in 2018, it
was announced that
a team of Google techies would work with Goodwill, the largest
workforce development nonprofit in the country, in various cities to
develop a national-level data strategy to help the organization understand
the effectiveness of various programs happening at the local level.
The corporations imagine the nonprofits being
oh-so-grateful for that retiring head of product development or vice
president of human resources or director of marketing walking through the
door. Or a team of IT professionals coming in for several weeks and
developing a system that will solve all of their tech problems.
But spoiler alert: nonprofits aren't always so crazy
about the idea, and often say yes to the arrangement more because they are
hoping for a cash grant from the corporation as well rather than because
they really need that staff person or team.
The reason nonprofits are often cool at the idea is
because of the approach and attitude of the corporation about the donated
staff.
Let's take, for instance, an Executive On Loan, who
very often:
- seems to automatically assume he or she is equal in hierarchy to the
Executive Director and that the rest of the staff also reports to him or
her.
- doesn't understand what the responsibilities are of each senior staff
member at the organization and doesn't consult with that staff on how he
or she would like to contribute expertise.
- bristles at the idea of working with other volunteers (and make no
mistake - this person is a volunteer, because this person is not being
paid by the nonprofit).
- comes into the organization with an agenda for action or a project
without first collaborating with the organization, and without any
understanding that the organization may say "No."
- doesn't understand the expertise that different staff members bring to
the organization - or that other staff members might be experts in any
field at all. They often assume that all nonprofit staff are people who
couldn't find jobs in the for-profit world, are young and inexperienced
or are retired from "real jobs."
- does not understand the budget and staffing restrictions of the
nonprofit, and proposes action the organization cannot afford.
- does not understand that all the written policies of the organization
also apply to the Executive Onloan.
- does not understand that he or she is NOT a board member.
Similarly, with a team of highly skilled volunteers
on loan from a corporation, the reason a nonprofit isn't always crazy
about the idea is because the corporate employee or head of the
team:
- doesn't understand what the responsibilities are of nonprofit staff.
- doesn't understand the expertise that different staff members bring
to the organization - or that other staff members might be experts in
any field at all. They often assume that all nonprofit staff are
people who couldn't find jobs in the for-profit world, are young and
inexperienced or are retired from "real jobs."
- doesn't consult with that staff on how to approach the project.
- comes into the organization with an agenda for action or a project
without collaborating with other staff, without seeing the
organization as a client.
- does not understand the budget and staffing restrictions of the
nonprofit, and proposes action the organization cannot afford or
cannot sustain after the volunteer leaves.
- does not understand that all the written policies of the
organization also apply to them.
The first step in placing corporate staff at a
nonprofit is meeting with that agency more than once and
finding out what they really need. What are the goals of that
agency for the next 12 months, what staff do they already have and what
could your employees on loan do to support staff in their work and to meet
those goals? What measurable results could your employees aim for? Ask
these tough questions and be ready to have a nonprofit turn down your
offer.
If the executive or other employee is going to work onsite at the
nonprofit, that person should
- Go through the new employee and new volunteer orientation at the
organization
- Should be fully briefed on the organization's policies and
procedures, and know what the grounds for dismissal are (and that they
apply to him or her as well)
- Know exactly to whom he or she will report at the nonprofit
- Have a written role description, just as a paid consultant would
- Agree to a mid-term and end-of-service performance review, one that
will be shared with that person's employer
- Understand and respect the organization's rules regarding
confidentiality, and that violating such could be grounds for
dismissal
- Understand at what moments, under what circumstances, he or she
reports to the nonprofit versus when to report to the original
employer
If your company wants to loan a staff member to a
nonprofit full-time for several months to a nonprofit, here are some ways
to make that arrangement beneficial to the nonprofit:
- Talk to the nonprofit and ask them what their biggest challenges are
regarding human resources, accounting, IT, customer service, client
services, facilities management, fundraising, and other specific areas
of work. Work together on how an Executive On Loan or team of experts
could specifically address one of those areas for a specific set of
time.
- Put the job description in writing and include to whom the Executive
On Loan or expert will report to, what his or her goals will be at the
organization and how these will be measured and reported, and any
obligations the person will have relating to policies, meeting
attendance, reporting, etc.
- Have the person meet with each senior staff person to listen to what
each of these managers and directors does. Emphasize that the Executive
On Loan or other employee expert needs to listen first; at a later
meeting, he or she can offer ideas on how to contribute to the goals of
different senior staff members.
- Fully brief the corporate volunteers regarding budgets and streams of
revenue.
- Have a frank talk with the employee about the hierarchy of the
nonprofit, the expertise of staff, how decisions are made, and how to
seek permission for action at the nonprofit.
- Have a frank talk with the nonprofit at the end of the term of the
Executive On Loan or team of volunteers about performance and
expectations and look for ways to improve next time if another employee
is offered.
Will the nonprofit be allowed to submit a funding
proposal to your company? In-kind donations and volunteering are terrific
- but in the end, nonprofits need cash to pay their employees, pay rent
and/or utilities, pay for equipment upkeep, pay for services associated
with their web site and more. Be upfront with the nonprofit if you aren't
going to allow funding while the employee is on loan.
Board Service
Employees at corporations and businesses are often targeted by nonprofits
to serve on their board of directors or advisory boards and by governments
to serve on citizens boards, like a city's public safety commission or a
county's public health advisory council. In fact, many programs reserve a
certain number of seats specifically for representatives from the
corporate sector or a particular business sector.
A board of directors at a nonprofit is far different
from advisory board membership. A board of directors can be thought of as
the owners of a nonprofit. The Executive Director reports to this board,
and the board has hiring and firing power over that person. Expenditures
of a certain size and certain program launches, expansions or elimination
must be approved by the board. The board is also expected to fundraise on
behalf of the nonprofit, either providing an annual gift themselves, of a
certain size, or raising a certain amount. By contrast, an advisory board
has no governance authority: they are volunteers who advise, and their
advice can be accepted or rejected by whatever staff member at a nonprofit
they are advising.
There are also citizens boards affiliated with
government entities. Every city and county has different citizens boards
made up of various volunteers. These include a city's public safety
commission, a city's planning commission, a county's public health
advisory council or a county arts organization.
When an employee of your corporation or business is
serving on such a board:
- What obligations does an employee have to your company and what
obligations does that person have to the board? Get this clear, both
with the employee and with the other members of the board!
- If your company provides funding to the organization as a donor,
it's inappropriate to demand a seat on the board, because then you are
getting something for the money you are giving the nonprofit - you are
paying for that seat - and that means your donation may not be seen by
the IRS as a tax deductible charitable contribution anymore, because
it is conditioned on receiving something of value in return.
- All of these board entities have bylaws, and these bylaws include
information on conflicts of interest. You need to review these
carefully and understand the rules they carefully lay out. If your
employee cannot adhere to these bylaws, he or she should pass up board
membership.
- Board members must be fully briefed regarding budgets and streams of
revenue of the nonprofit or government agencies they are advising.
- No organization should be punished if they have to dismiss your
employee as a board member (by withholding funding, by refusing
funding proposals, etc.)
- Employees should not be asked by their employer to be on a board
that they don't feel some personal commitment or interest in - the
other board members, all volunteers, will know if someone has been
required by an employer to serve on a board and doesn't have any real
interest in it beyond that.
- Employees need to take deliberate action to understand the culture
of the nonprofit and the community it serves, or the issues and
community being served by a citizens board. Board members with no
understanding of the issue a nonprofit or a citizens board is
addressing may say or do things that are inappropriate, even
alienating. For instance, pushing for "double-digit growth" could have
substantial negative implications for a program's capacity to fulfill
its mission and serve clients. I heard a board member from the
corporate sector at a public health commission meeting talk about
young, impoverished mothers in a maternal health program referred to
as "people who had made mistakes and were now dealing with the
consequences" - and the entire room cringed (I found out later that
this wasn't the first time this person had said something the rest of
the room found offensive in terms of clients and community served;
imagine what these folks think of the company this person works for!).
- Board members, in their day jobs, often earn substantially more than
the employees of a nonprofit they are overseeing, including the
executive director - they need to remember the financial limitations
of staff and, if they want to change that, they need to raise more
money.
Coming soon
Employees volunteering abroad
Some corporations cover the costs of employees going abroad to
work on short-term assignments. I will have a page of advice on this
later in 2019.
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