Interview with Kim Thomas, Meyer Memorial Trust Program Officer

This fall, in partnership with Meyer Memorial Trust (MMT), The Oregon Community Foundation, and AKT, TACS launches a new training: Managing the Bottom Line: Leverage Resources to Confront Increasing Needs. Specifically designed for boards of directors, executive directors, and fiscal managers of human services nonprofits, the training will be held in Portland, Medford, and Bend. We talked with Kim Thomas, program officer with MMT, about the trends behind this training:

How did the idea for this training come about?

The program team at MMT came up with the idea for the training and it was strongly endorsed by MMT's Trustees, who also found an enthusiastic partner in The Oregon Community Foundation. We really hope organizations will encourage board members and executive staff to attend together so they can have more intentional conversations that lead to strategic decision-making.

From a funder's perspective, what challenges do you see front-line human services organizations facing?

Because many of these organizations rely on government funding streams, which are unpredictable, and because the need for basic human services has increased so dramatically with the current recession and from years of government cutbacks, human services organizations struggle to find a functional financial model that is what we funders call "sustainable." The human services nonprofit sector has really borne the brunt of that phenomenon we called "devolution" in the 1990s, which was the scaling back of government funding and responsibility for programs that impact and protect the most vulnerable. In the current economy, the need for basic services—housing, health care, food, mental health, alcohol and drug treatment, utilities assistance—has really put pressure on the nonprofit sector to serve more people right at the time when private and public funding sources are pulling back. The ability to manage this situation and juggle all of these pieces pushes many organizations to the edge financially.

How does the current economic situation impact Oregon's human service organizations?

Because of high unemployment and stagnating wages (which have been going on for several decades in this state), Oregon rises to the top on many of those human services problem lists: high rates of hunger and homelessness, and wide income inequality. Our state infrastructure has been challenged since the early 1990s and in these critical areas, we've seen at least a decade of disinvestment at the federal level. So the safety net in Oregon was weak to begin with and when you add the impacts of the current economic recession, the stress level among struggling families and the nonprofits that serve them is overwhelming. How does an organization come through this period not only intact but strong enough to deal with future challenges?  Many organizations have been dealing with these issues for years, even decades, and doing it well. We need to learn from them and pass their knowledge along.

What structural or service delivery shifts are you seeing as a result?

I think we're seeing more collaboration, not in the formal MOU sense, but in nonprofits' willingness to figure out their niche and then create practical partnerships to meet other need areas. We're also seeing many nonprofits paring back to core mission work—focusing on immediate needs rather than more long-term systemic solutions work. This is inevitable in the short-term, but will be a concern in the long-term if we really to want to get to the root of problems and not just treat the symptoms. Many nonprofits have had to freeze wages and reduce or eliminate retirement and health care benefits to balance budgets in the face of declining resources. This is also a trend that, while unavoidable, is concerning in the long-term if we want to attract and retain the best and the brightest personnel, and treat them humanely and professionally.

Are there practical tips you could suggest to organizations that are struggling to meet increased need with diminishing resources?

The real experts are those organizations that have been in the trenches and have figured out ways to survive and thrive. We need to learn from them what works and how to be creative when immediate needs are pounding at the door. We've also seen the importance of developing vibrant and healthy boards of directors that can keep the big picture vision while providing savvy financial oversight and direction. Helping boards and executives learn to have strategic financial conversations is critical—how to match mission with a realistic view of available resources, how to stay flexible and nimble, how to focus on your niche and serve it well.

Join Nanita McIlhattan, management consultant with AKT, and a panel of human services leaders to explore strategies and structures for Managing the Bottom Line on November 3 in Portland, November 5 in Medford, or December 4 in Bend. Foundations such as MMT and OCF are always searching for ways to be helpful in the face of current challenges and welcome feedback and suggestions from human services leaders who attend the training.

Thanks to Meyer Memorial Trust, The Oregon Community Foundation, and AKT for their support of and partnership in this project.