A Survey of Nonprofits by wuyunyi

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									                                                                                   ®


                                                            Inland Empire United Way




          A Survey of Nonprofits
   San Bernardino County




                             Assessing the Nonprofit Sector
                                     in and around
                               San Bernardino County, CA
  Hands on
  INLAND EMPIRE




NEN
Nonprofit Executive Network




Desert Communities
United Way




                                     Prepared by Greg A. Works
                                     Works & Works Consulting
Mojave Valley United Way
                                  www.worksandworksconsulting.com

                                           January 2008
                               Executive Summary
Introduction
This executive summary provides an overview of the findings from a survey of nonprofit
executives in and around San Bernardino County, California that was conducted in late 2007.
The purpose of the survey and subsequent analysis is to gauge the overall state of local nonprofit
community. The survey covered 19 topics relevant to the local nonprofit sector. One-hundred
twenty-five executives representing a diverse array of nonprofits participated in the survey by
answering questions about themselves, their agencies and the nonprofit community as a whole.

The full report is divided into twenty chapters each representing a different topic. This summary
highlights some of the most important and relevant findings. For a more detailed look at the
topics presented, please consult the full report.

Agency Effectiveness
     Each agency executive was asked to evaluate their agency’s performance at 14 functional
     tasks.
     Most executives rated their agency as doing “OK” on most tasks.
     The highest and lowest rated functional areas are:
                  Best                                 Worst
                   • Accounting                        • Grant Writing
                   • Program Operations                • Research
                   • Administrative Tasks              • Fundraising (non-grant writing)

Issues Affecting Nonprofits
      The top three issues affecting local nonprofits are:
             o Increased Operating Costs
             o Fundraising Effectiveness
             o Increased Need for Agency Services.

Boards of Directors
     Most boards are very active except in the area of fundraising.
     The majority of boards (68%) have between 5 and 14 members, and all boards have
     turnover.
     Most executives indicated that their agency needs a service to help recruit board
     members.

Agency Executives
     73% of the local executives are female.
     Local nonprofit executives are not representative of the local community in terms of race
     and ethnicity; whites are over-represented and Hispanics are under-represented.
     Most local nonprofit executives have been in their current position for less than five
     years, and they intend to stay in their current position for at least the next five years.
Philosophy to Change
      The largest group of executives (42%) described their agency’s philosophy to change as
      “selectively aggressive.” The smallest group (7%) described their agency as conservative.
      Agencies that have a more liberal philosophy towards change tend to be more effective.

Young Professionals
     More than one-third of the executives indicated that there is no opportunity for
     advancement for young professionals within their organization.
     Advancement opportunities for young professionals are more likely to exist at larger
     organizations.
     The majority of executives (78%) said that their organization has some interest in
     participating in a development program for young professionals

Employee Benefits
     12 employee benefits, ranging from health insurance to child care were examined. There
     is a great variety in the level of benefits offered from agency to agency, ranging from not
     being offered to being fully funded.
     Larger agencies are more likely to offer each benefit examined.
     Over the past five years, most benefits remained at the same levels.

Demand for Services
    For every agency represented in the survey, demand for services is increasing.
    The three most often identified causes of increase in demand are:
        o Greater awareness of services
        o Increased poverty
        o Population growth
    68% of executives said their agency is “somewhat” able to meet current demand for
    services.

Program Outcomes Evaluation
      81% of agency executives indicated their agency uses program outcomes evaluation, and
      55% said their agency uses outcomes evaluations for all of their programs.
      The majority of agencies at all revenue levels indicate that they use program outcomes
      evaluation.
      The three most common uses for outcomes evaluation are:
         o Improving programs
         o Marketing
         o Satisfying funders
Fundraising and Revenue Sources
     Executives were asked to identify their agency’s two greatest sources of revenue. The
  most often identified in descending order are:
         o Government grants/contracts
         o Individual donations
         o Program fees
         o Foundation/corporate grants
         o Special events
         o Fundraising federations
     Overall, fundraising did not rate very well. 38% of executives rated their agency’s
     performance at grant writing “not very well,” while 30% rated non-grant writing
     fundraising efforts the same.

Marketing and Communications
     Most (56%) executives rated their agency’s marketing and communications performance
     as “OK.”
     The best indicator of marketing and communications effectiveness is the variety of
     marketing and communications activities in which an agency engages.
     Local nonprofits use a great variety of methods to market their organization and
     communicate with the public. The five most common methods are:
         o Fliers
         o Agency websites
         o Printed newsletters
         o Printed newspapers
         o 2-1-1

Information Technology
      Less than half of the executives surveyed (44%) said that their agency had a sufficient
      quantity of technology devices. Slightly more (52%) indicated that their current
      technology devices were of adequate quality.
      Having technology is closely related to revenue. The greater the revenue the more likely
      an agency is to have any given technology.
      The best predictor of information technology effectiveness is having dedicated
      information technology staff.

Nonprofit consultants
     Nonprofits consultants perform the same range of activities that staff and volunteers do,
     just not as often.
     Mid-sized agencies are most likely to use consultants.
     The area where consultants make the greatest impact on performance is research.
Volunteers
      90% of the organization represented in this survey use volunteers, 61% of them depend
      on volunteers to a great degree.
      The three most common tasks that volunteers perform are:
         o Fundraising (non-grant writing)
         o Program operations
         o Physical maintenance
      The majority of agencies have a great need for both short-term and long-term volunteers.

Using 2-1-1
      62% of the agencies represented in this survey listed at least some of their services with
      2-1-1.
      Most agencies also refer clients to 2-1-1, call 2-1-1 on behalf of clients, and use the 2-1-1
      website to find services for their clients.
      Human/social service agencies are the most likely to use 2-1-1.

Nonprofits as Second Responders in Disasters
     The majority of executives indicated their agency would be willing to at least consider
     some role as a second responder in case of a local disaster.
     The most positive response was for offering direct services. The least positive response
     was regarding raising funds for direct service providers.

Networking and Information Sharing
     Overall, agency executives place a high value on networking and information sharing
     such as notification of emerging issues, gathering to discuss key issues, meeting with
     government officials and participating in a nonprofit conference.
Agency Collaboration
      75% of the agency executives indicated that they place “a lot” of value on collaboration.
      Almost half (45%) indicated that they jointly operate a program.
      Almost one-fourth of the agencies have considered or are actively involved in a merger
      during the past year.

Relationship with government agencies
      85% of nonprofit agencies have some sort of relationship with a government agency.
      74% of agency executives reported that their organization receives government funding.
      67% of agencies partner with a government agency to provide services.

This summary has provided a brief overview of the local nonprofit sector in San Bernardino
County and the surrounding areas. Much more information and additional analysis is presented
in the full report which can be found on the Inland Empire United Way website – www.ieuw.org.
                          Validation Meeting Summary
In order to validate the survey findings, a representative group of community stakeholders
gathered to discuss strategic solutions and opportunities that will effectively address the concerns
expressed by the nonprofit executives who were surveyed.

Opportunities Discussed:

Program Alignment
There is a strong need for program alignment/capacity building in our nonprofit community. In
order to conduct program alignment and strategic planning, research and expertise are essential.
Without them, such efforts will not be effective.

The California State University system has created an office titled “Community University
Partnership” (CUP) to connect the university with the community. The CUP office at Cal State
is in a position to broker research services for the nonprofit community. Nonprofit organizations
can benefit immensely by collaborating with the university community. Cal State San
Bernardino offers mini-grants to professors in order to encourage them to engage their courses in
Service Learning. Having this resource positions the nonprofit community to develop
relationships with the CUP office in order to benefit from the expertise of the academic sector,
whether for research, marketing, or to meet the agency’s volunteering needs.

Research
Research is also needed to leverage funding for the nonprofit community. For example, a study
quantifying the financial impact of the nonprofit sector to the local economy would highlight the
importance of the sector. There have been similar studies done around the country; a notable
example was done in Colorado by the Colorado Nonprofit Association (e.g., Economic Impact
Study). This level of coordinated research is lacking in the Inland Empire.

Incubated Agencies
There is a tendency for “experts” to presume that smaller nonprofits will benefit from and have
an interest to embark in a formal organizational overhaul. The truth is that there are agencies
that are entrenched in the provision of the service they are providing and thus incubate
themselves from other influences. If a collective effort to meet the diverse needs of the nonprofit
community is to be effective, strategies must be explored that will assist those that are
“incubating.”

Board Development and Recruitment
A related opportunity that was discussed is the need to recruit able and competent board of
director members. Currently in our nonprofit sector, there is no formal mechanism for board
recruitment much less training of these recruits. An agency’s board of directors provides an
opportunity for the members and the agency to collectively meet the needs of the community.

Implementing programs such as BoardLinks, that connect members of the community to
nonprofit boards, are necessary to build the capacity of the sector. However, if an agency does
not have the capacity to receive a board member and utilize them effectively, this seemingly
great service becomes incapacitated. Agency training must be included in the discussion of
board development. Facilitated learning opportunities could be presented to nonprofits around
board training, specifically with the intended outcome being that the agency is ready and able to
receive the new board member.

Nonprofit Conferences and Events
Along with facilitated learning opportunities, a strong need was voiced for increasing the number
of nonprofit conferences or events. Currently, the county supervisor’s office hosts an annual
nonprofit conference, and others exist as well.

Conclusion
It is evident that coordinated strategic efforts are needed to develop an infrastructure that is
capable of meeting the ongoing needs of the nonprofit community. Long term strategies that are
planned collectively and guided by research are essential for the ongoing success of the nonprofit
sector. Without the support, financial or otherwise, from key community stakeholders this
process will not be effective. The results of this survey can be utilized by community
stakeholders to guide their strategic planning efforts around capacity building.
                         Table of Contents

Introduction ..…………………………………………………………………………...1

Agency Effectiveness ..………………………………………………………………....4

Issues Affecting Nonprofits ..…………………………………………………………...5

Boards of Directors ..……………………………………………………………..……..6

Agency Executives ..……………………………………………………………….…...9

Philosophy Related to Change ..……………………………………………………….13

Young Professionals …………………………………………………………………...14

Employee Benefits ……………………………………………………………………..16

Increased Demand for Agency Services ……………………………………………...18

Program Outcomes Evaluation ………………………………………………………...20

Fundraising and Revenue Sources ……………………………………………………22

Marketing and Communications   …………………………………………………….26

Information Technology ……………………………………………………………….30

Nonprofit Consultants …………………………………………………………………38

Volunteers ..……………………………………………………………………………40

Use of 2-1-1 .…………………………………………………………………………..43

Nonprofits As Second Responders in Disasters ..……………………………………..45

Networking and Information Sharing …………………………………………………47

Agency Collaboration ..……………………………………………………………….48

Relationship with Government Agencies ..……………………………………………50
Introduction
This report consists of information gathered from a survey of nonprofit executives in and around
San Bernardino County, California in late 2007. The survey covered a broad range of themes
relevant to the nonprofit community including:

    •   Agency Effectiveness
    •   Issues Affecting Nonprofits
    •   Boards of Directors
    •   Agency Executives
    •   Philosophy to Change
    •   Young Professionals
    •   Employee Benefits
    •   Demand for Services
    •   Program Outcomes Evaluations
    •   Fundraising and Revenue Sources
    •   Marketing and Communications
    •   Information Technology
    •   Nonprofit Consultants
    •   Volunteers
    •   Use of 2-1-1
    •   Nonprofits as Second Responders in Disasters
    •   Networking and Information Sharing
    •   Collaboration
    •   Government Relations

Each of these topics is explored in a chapter within this report. All chapters include a descriptive
breakdown and analysis of the survey responses with a discussion of factors that may be relevant
to each respective topic.

Survey Methodology

Local nonprofit executives were contacted and asked to fill out a web-based survey. Executives
were contacted directly and through networking at other nonprofit gatherings throughout San
Bernardino County. In situations where executives could not fill out a web-based survey, a
paper version of the survey was provided.




                                                                               2008 Nonprofit Survey - 1
Description of the Sample

This section provides a brief description of the survey sample. 125 nonprofit agency executives
participated in this survey. These executives represented a broad array of local organizations
based on types of services offered, age of agency, population served, and size of agency. Each
of these aspects is discussed in further detail below.

The table below shows the number of agencies by each type of service offered. This is referred
to as “field of service” within this report. A wide variety of fields of service are represented.
The largest group of agencies or field or service represented is human and social services
organizations, representing almost 40% of the sample. Several other fields of services have
significant representation including education, health, and community and economic
development.

                           Type of Agencies Represented in Survey
                   Category                                     Number
                   Advocacy                                     5
                   Arts and culture                             5
                   Community and economic development           13
                   Education                                    17
                   Environment                                  2
                   Fraternal and service organizations          1
                   Health                                       15
                   Human/Social Services                        47
                   Other                                        10
                   Recreation                                   3
                   Religion or spiritual related                7

Age of Agency

The agency executives that participated in this survey lead agencies that have been serving the
local community for varying lengths of time. The chart below shows the number of agencies
falling within each age category. Most agencies (56%) have been in existence for 20 years or
more but many were much younger. Almost one-fourth (23%) of the agencies represented in this
survey have been in existence for less than 10 years.




                                                                              2008 Nonprofit Survey - 2
                                                    Age of Agency

                80%                                                                                    70
                60%
                40%                           24
                                                               15                  11
                20%            5
                0%
                               <5             5-9            10 - 14           15 - 19                20+
                                                    Age Categories in Years



The agencies represented in this survey served a diverse group of clients. Agency executives
were asked to identify the primary race or ethnicity of their agency’s clients. More than half of
the executives (52%) reported that their agency serves clients who are racially diverse. 22% of
the agencies have a client base that is primarily Hispanic, 15% have a client base that is white,
and 7% have a client base that is primarily African-American. Two agencies reported that their
clients are primarily Native Americans.

An important agency characteristic that is mentioned throughout this report is related to the size
of the agency in terms of revenue. Size is mentioned frequently because revenue is related to
most of the issues discussed. Consistently, three revenue levels kept appearing as cut-off or
transition points when examining the relationship between revenue and other issues discussed.
These three levels are less than $100,000, $100,000 - $749,000, and $750,000 and over. To
make the analysis easier to understand agencies are referred to as small, mid-sized, and large,
representing the three levels of revenue that consistently led to groupings of agencies.



                                                   Annual Revenue

    25                                             22
    20                 16                                     16                                        17
                                                                          13
    15                               10                                                                              11
                                                                                           8
    10      6
     5
     0
         No Budget    1 - 50        50 - 99    100 - 249   250 - 499   500 - 749        750 - 999   1,000 - 5,000   5,000+

                                                   Agency Revenue in 1,000s




                                                                                                       2008 Nonprofit Survey - 3
Agency Effectiveness
One purpose of this report is to determine the current state of the local nonprofit community.
This section offers a very brief look at how well local nonprofit agencies are performing from a
high vantage point. As such, it offers insight into the health of the local nonprofit community as
a whole. The results presented below show tendencies within the local nonprofit community as a
whole. Several of the topics addressed below are discussed in further detail elsewhere in this
report.

Agency executives rated how well their agency is doing on a variety of organizational tasks. The
chart below shows the distribution of how executives rate their agencies’ performance. For most
activities, the majority of executives rate their agency as performing “OK.” However, some
tasks are performed more effectively than others. A majority of executives rated their agencies
“very well” at performing program operations, accounting, and administrative tasks. At the other
extreme, few executives rate their agency as performing well at research, marketing, and
fundraising. Statistical analysis shows that the factor most closely related to agency
effectiveness is revenue. In general, the larger an agency the more likely it is to be rated higher
by its executive.



                                             Agency Effectiveness

             Collaborating w/Govt.      20%                38%                       42%

        Collaborating w/Nonprofits     17%                 45%                        39%

               Vol. Training/Mgmt.      22%                      50%                    28%

              Program Operations 4%                 42%                         54%

              Program Evaluation       16%                  52%                        32%

                   Physical Maint.    10%                 52%                         39%

                         Research            31%                        52%                  17%
                                                                                                            Not Very Well
                                                                                                            Ok
                        Marketing           24%                    55%                      20%
                                                                                                            Very Well
           Information Technology       19%                      56%                       25%

                 HR Management         14%                 53%                         34%

                     Grant Writing            38%                      36%                 26%

    Fundraising (non-grant writing)          30%                       50%                  21%

             Administrative Tasks 2%              29%                          51%

                       Accounting 4%                42%                         54%

                                  0%              20%      40%           60%         80%          100%




                                                                                                         2008 Nonprofit Survey - 4
Issues Affecting Nonprofits
Agency executives were asked their opinion regarding the most pressing issues affecting local
nonprofits. The executives surveyed identified the three most important issues affecting their
agency. The chart below shows how many times each issue was identified as one of the top
three issues. Many issues were identified, indicating a variety of concerns among nonprofit
executives.


                                           Issues Affecting Nonprofits

         Increased Operating Costs                                                                      61

          Fundraising Effectiveness                                                           55

        Increased Need for Services                                                 41

             Increased Competition                                        30

               Board Effectiveness                                       29

          Effective Service Delivery                                 28

                      Public Image                                  27

                     Accountability                            22

            Executive Effectiveness                            22

            Tax Exemption Threats                         20

                   Public Advocacy                       18

        Independence of Nonprofits                  13


                                       0       10        20          30        40        50        60        70




Some issues are mentioned much more often than others. The three issues most often identified
are increasing costs, fundraising effectiveness, and increased need for services. They are closely
related. An increased demand for services usually increases operating costs and places greater
emphasis on the need for fundraising effectiveness. Some of the causes for the increased need
for services are discussed in the section of this report focusing on increased demand for services.
Some of the issues identified, such as board effectiveness and fundraising effectiveness, are
directly addressed in other sections of this report. Other issues, while not the sole focus of a
section of the report, are addressed, either directly or indirectly, within other sections of the
report.




                                                                                              2008 Nonprofit Survey - 5
Boards of Directors
Boards of directors are integral to the functioning of nonprofit organizations. Boards of directors
provide oversight, direction, and set the tone for an agency. The agency executives participating
in this survey were asked questions regarding their agency’s board of directors. Executives were
asked about the size of their board, turnover among board members, and to what degree their
boards performed a variety of tasks. The findings are presented below.

The size of local nonprofit boards varies widely. Some agencies have fewer than 5 board
members while others have more than 20 board members. The chart below shows the
distribution of sizes of local nonprofit boards. Over two-thirds (68%) of the organizations have
boards with between 5 and 14 members. About 10% have boards with fewer than five members.
The remaining 22% of organizations have 15 or more board members. In general, larger
agencies tend to have larger boards of directors.

                                      Size of Agency Board of Directors
                           50%
           % of Agencies




                           40%

                           30%

                           20%

                           10%

                           0%
                                 <5           5- 9       10 - 14     15 - 19        20 +
                                                     Size of Board


A factor related to the effectiveness of boards is the quality of members. When asked if their
agency was able to recruit high quality board members on a consistent basis, only 43% of agency
executives responded “definitely.” A slightly larger group (44%) responded “a little” and 13%
responded “not at all.” While many agencies appear to be recruiting highly-qualified board
members, the majority of agencies have an opportunity to improve the quality of their board
members.

                                 Ability to Recruit Well-Qualified Board Members

                                                     44%
                                        13%                                    Not At All
                                                                               A Little
                                                                               Definitely


                                              43%




                                                                                     2008 Nonprofit Survey - 6
Although the majority of agencies, regardless of size, tend to be able to recruit qualified board
members to some degree, larger agencies are more likely to be able to do so. 61% of agency
executives of the largest nonprofits (those with revenue of $750,000 or more) said their agency
was “definitely” able to recruit high quality board members compared with 37% at mid-sized
agencies and 29% at smaller agencies. Regardless of agency size, effective board recruitment is
very important.

Nonprofit board membership changes frequently. Many agencies (38%) lose about one board
member per year. Almost half (46%) lose two or three member per year. Turnover is not
associated with the size of the agency. In other words, all agencies, regardless of size, are
equally likely to lose or retain board members. However, board turnover is associated with the
size of the board. Larger boards tend to lose more members, indicating that turnover rates may
be consistent. The important point is that all agencies have turnover among their board
members.

                             Number of Board Positions Turning Over


                                      38%
                                                               1
                                                               2
                                                    23%
                                                               3
                                   16%                         4+
                                            23%




Since boards lose members, it is important to have mechanisms to recruit new members. When
asked if their agency needs a service to recruit and match board members, 73% of the executives
responded that their agency does to some degree. The chart below shows the range of responses.
37% of agency executives indicated that their agency definitely needs help recruiting board
members, and 36% indicated that their agency needs a little help recruiting board members. The
remaining 27% indicated that their agency did not need any help recruiting board members.

                         Need for Service to Recruit Board Members


                                 27%
                                                36%                   Not At All
                                                                      A Little
                                                                      Definitely


                                   37%




                                                                                 2008 Nonprofit Survey - 7
Agency executives appear very willing to accept help when they need it. Those executives from
agencies that have problems recruiting well-qualified board members are much more likely to
use a recruiting service to help them. In addition, a majority of the executives whose agencies
are able to recruit well-qualified board members indicated that they would be willing to use a
recruiting service to some extent, indicating widespread support for such a service.

Agency executives were asked to what degree their boards were involved in particular aspects of
agency operations. The chart below shows the level of involvement of agency boards in those
activities. For most items examined, agency boards were very involved. In matters of financial
governance, including reviewing financial statements and ensuring that audits are conducted
annually, boards tend to be very involved. Boards also tend to be involved in reviewing agency
missions, strategic planning, and reviewing executive performance. For two items, actively
engaging in fundraising activities and actively representing the organization within the
community, boards are considerably less involved.



                                                    Board Involvement

       A ctively Engaged in
                                      20%                 39%                           42%
            Fundraising

     Represents A gency in
                                 10%               38%                             52%
            Comm.

        Review s Executive
                                 10%          26%                             64%
          Perf ormance
                                                                                                             Not at all
           Ensures A udit is
             Conducted
                                     14%     13%                            73%                              A little

          Review Financial
                                                                                                             A lot
                           6% 8%                                      86%
            Statements

    Participates in Strategic
                                 3%         30%                              68%
            Planning

         Regularly Review
                                 7%         23%                             70%
         Mission Statement

                                0%    10%    20%    30%   40%   50%    60%        70%   80%   90% 100%




In summary, most boards are actively involved, as they should be. Larger boards tend to be rated
as being of higher quality. However, all agencies have board turnover and have some room for
improvement. Most agencies, especially those that are most likely to benefit from external help,
such as a recruiting service, are willing to accept help. The findings presented here show that
while boards are involved and effective, there is opportunity and willingness for improvement of
local nonprofit boards.




                                                                                                     2008 Nonprofit Survey - 8
Agency Executives
Agency executives are arguably the most important individual in most organizations. One of the
goals of this report is to profile agency executives in order to provide a better understanding of
local nonprofit leadership. Agency executives were asked demographic questions including age,
race, gender, as well as questions about their backgrounds and future career plans. The results
are described below.

Demographic Profile

In terms of race, agency directors are not representative of the local population as a whole. The
chart below shows the race/ethnicity distribution of local agency executives. Compared to the
general population of San Bernardino County, whites, who make up 38% of the general
population and 69% of agency executives, are over-represented, while Hispanics, who make up
45% of the general population and only 9% of the agency executives, are under-represented.
Asians are slightly under-represented. Only African-Americans have agency leadership in
proportion to their representation in the community.


                               Race/Ethnicit y of Agency E xecutive



                                   10%                       African-American
                                                             W hite
                              8%
                                               69%           H ispanic
                             4%                              Asian

                                   9%                        Other




With the exception of whites, agency directors tend to lead agencies that serve populations
whose ethnicity is similar to their own. African-American and Hispanic executives tend to work
at agencies whose primary population tends to be the same as themselves. This is a tendency
rather than an absolute statement of fact since most agencies serve racially and ethnically mixed
populations.

Females dominate local nonprofit agency executive positions. Overall, females are in leadership
positions at 73% of the agencies sampled. What may be surprising is that females hold the
majority of leadership positions across the entire range of agency sizes. Female executives lead
72% of agencies with budgets greater than $1 million, virtually the same as their overall
representation.

As would be expected, agency executives tend to be older since age tends to coincide with
experience and opportunities for leadership roles. The chart below shows the distribution of
agency executives based on age. Well over half (57%) of the nonprofit executives are at least 50



                                                                                2008 Nonprofit Survey - 9
years old. About one-fourth of the executives are in their forties. Relatively few are in their 20s
(5%) and 30s (12%).



                                     Age of Agency Executives

                                    12%       26%
                              5%                                  20 - 29
                                                                  30 - 39
                                                                  40 - 49
                              20%                                 50 - 59
                                                                  60+
                                               37%




Statistical analysis shows no interaction among age, gender, and race/ethnicity of agency
executives. In other words, there are no readily identifiable sub-groups based on demographics
that differ from the group as a whole. There is little reason to believe there will be much change
in the overall demographic characteristics of local nonprofit executives in the near future.

Agency Executive Prior Experience

The nonprofit leaders who participated in this study were asked about their work experience
immediately prior to taking their current position. Most (54%) were already working in the
nonprofit sector. 30% were promoted from within the same organization. Many (30%) came
from the for-profit sector. Relatively few (12%) came from the academic sector and very few
(2%) came from the government sector.

                                   Agency Executive Background

                                                 3%

                                                                   Nonprofit
                                   54%
                                                      30%          Government
                                                                   For-profit
                                                                   Academic


                                                13%




                                                                                2008 Nonprofit Survey - 10
Agency Executive Tenure

The executives leading local nonprofit organizations do not have a great deal of tenure in their
current position. Most of the nonprofit leaders have been in their current position for less than
five years, 17% less than one year. Almost one-fourth have been in their current position
between 5 and ten years. 17% have been in their position for ten or more years.

                                      Agency Executive Tenure

                                   17%

                                                        43%     < 1 Year
                                                                1 - 5 Years
                                                                5 - 10 Years
                               17%
                                                                10 Years +


                                            23%




Agency executives were asked how long they intend to stay in their current position. Most plan
to stay in their current positions for the next few years. Over half of agency executives plan to
stay in their current position for more than 5 years. Only about 1 in 7 (15%) are planning to
leave within the next 2 years. About one-fourth of the executives plan to leave in 3 to 4 years.

                             Expected Tenure of Agency Executives

                                                  24%
                                13%
                              2%                              < 1 Year
                                                              1 - 2 Years
                                                        8%
                                                              3 - 4 Years
                                                              5 Years
                                                              More Than 5 Years

                                      53%




Agency Executives’ Future Plans

Agency Executives were asked about their career plans after leaving their current position. Most
(62%) said that they intend to retire, the rest are intending to continue working, mostly in the
nonprofit sector. Of those who intend to continue their careers in the nonprofit sector, most
intend to take on another leadership role. About two-thirds of the executives who intend to
continue working in the nonprofit sector plan on taking another executive position. About 16%
of agency executives plan to leave the nonprofit sector.


                                                                                  2008 Nonprofit Survey - 11
                              Age of Agency Future Work Plans

                                  22%         3%
                                                7%
                                                     6%             Nonprofit
                                                                    For-profit
                                                                    Government
                                                                    Academic
                                                                    Retirement

                                        62%




The local nonprofit leadership will probably remain steady for the foreseeable future. It is likely
to remain dominated by white middle-age females who more than likely have prior nonprofit
experience, often with their current employer. When the current leaders do leave their current
positions, the vast majority of them intend to either retire or leave the nonprofit sector altogether.




                                                                                 2008 Nonprofit Survey - 12
Philosophy Related to Change
Agency executives were asked to identify their agency’s philosophy related to change along a
continuum ranging from conservative to trendsetter. The chart below shows the distribution of
responses. Most executives (75%) placed their agency in one of the two middle categories of the
continuum, 20% described their agency as a leader or trendsetter, while only 7% felt that their
organization’s philosophy to change was conservative.


                                 Agency Philosophy to Change

                                          31%

                            7%



                          20%                               Conservative
                                                            Slow but Steady
                                                42%         Selectively Aggressive
                                                            Leader/Trendsetter




It is impossible to segment or classify nonprofit agencies based on their philosophy towards
change, at least with information gathered for this report. There is no relationship between the
agency’s philosophy to change and the size of the agency or the characteristics of the executive
or board of directors for which we have measurements. The characteristics associated with an
agency’s philosophy to change are most likely found in the psychology of the individuals leading
an organization.

However, there is an association between agency effectiveness and philosophy to change. For
most operational tasks, there is a modest association between effectiveness and philosophy to
change. Those agencies that have a more liberal philosophy towards change tend to be more
effective. Very rarely did executives who rated their organization as having a conservative
philosophy to change rate their agency’s performance of tasks as “very well.” Therefore, it is
probably safe to assume that a willingness to adapt plays a role in the effectiveness of an
organization.




                                                                                 2008 Nonprofit Survey - 13
Young Professionals
An issue that has been a recent concern at a national level is the next generation of nonprofit
leaders, today’s young professionals. Agency executives were asked about the recruiting
methods their organizations use to find young professionals as well as opportunities young
professionals have once they join an organization.

First, recruiting methods were examined. The chart below shows the percentage of agencies
using a particular recruiting method to attract young professionals. Only two recruiting methods,
word of mouth and internships, were used by a majority of organizations. Almost half of the
executives indicated that their agency does campus recruiting and uses internet job sites. Many
agencies also use local newspapers to advertise positions. Job fairs are used infrequently and
bonuses are rare. The typical agency uses three recruiting methods.

While agencies of all sizes use each of the recruiting methods except hiring bonuses, which are
limited to the largest agencies, the use of recruiting methods is definitely associated with the size
of the agency. Larger organizations use a greater variety of recruiting methods. Larger agencies
are also more likely than smaller agencies to use each individual recruiting method. Clearly, size
is an advantage in reaching young professionals during the recruitment process.


                                          Recruiting Methods

           Word of Mouth                                                                79%


        Local Newspapers                                 40%


                 Job Fairs                      25%


               Internships                                             56%


         Internet Job Sites                                    46%


           Hiring Bonuses          3%



        Campus Recruiting                                        48%


                              0%    10%   20%    30%   40%     50%     60%   70%      80%     90%




Many of the agency executives (44%) indicated that their agencies “definitely” recruit young
professionals with the intention of developing leaders, while almost one-fourth (24%) indicated
doing so to a lesser degree. However, almost one-third (32%) of the agency executives indicated
that their agency does not recruit with the intention of developing leaders. Even fewer agencies
actually offer mentoring or leadership training. On a more positive note, almost half (48%) of
the agency executives claim that their agency would be willing to participate in a program to


                                                                                   2008 Nonprofit Survey - 14
develop young professionals. While it is beyond the scope of this report to provide a causal
analysis, a void in local leadership training opportunities may account for the differences
between intentions and actions.


                                    Developing Young Professionals

       Capable of Taking on Leaders hip Roles           21%          40%               39%

                  Attracts Qualified Young Prof.        24%               49%               27%

           Recruits w/Intention of Dev. Leaders          32%          24%             44%

          Willing to Participate in Dev. Program        22%         31%               48%                 Not at all
                                                                                                          A little
                  Cons ider Changing to Attract         24%               51%               26%
                                                                                                          Definitely
                                      Mentoring          31%              33%          36%

                           Leaders hip Training               41%           24%         35%

                   Advancem ent Opportunities             36%               35%             29%

                                                   0%         20%   40%         60%    80%        100%




It appears that advancement opportunities for young professionals may be limited, at least in the
near future. Only 29% of the executives indicated that their agency definitely offers opportunity
for advancement. Advancement opportunities to the executive levels may be especially limited
since over 60% of the current executives plan on staying in their current positions for at least the
next five years. This may explain, in part, the low levels of commitment to developing young
professionals into leaders.

Another reason for the lack of leadership training could be that the young professionals who are
being recruited are able to take on leadership roles with a minimum of guidance. 39% of agency
executives indicated that their agency had young professionals that are definitely capable of
taking on leadership roles, while only 21% indicated that this was not at all the case. However,
about 40% of agency executives were less than certain about the capability of their young
professionals to take on leadership roles.

The size of the agency plays a large role in respect to young professionals. Prospects for
advancement for young professionals tend to increase as agencies size increases. Larger
agencies are more likely to recruit young professionals with the intention of developing leaders.
Larger agencies are also more likely to attract qualified young professionals and have young
professionals who are capable of taking on leadership roles. Larger agencies are more likely to
invest in training and mentoring for their young professionals. Clearly, the size of the agency
affects the career opportunities for young professionals.




                                                                                       2008 Nonprofit Survey - 15
Employee Benefits
Agency executives were asked about employee benefits offered at their organizations. First, they
were asked if a particular benefit was offered and, if so, how it was funded. Then they were
asked about the trend in the benefit over the past five years at their organizations.

The chart below shows the extent to which local nonprofits offer benefits. Agency executives
were asked to identify whether the items listed are not offered at all, partially funded by the
employer, or fully funded by the employer. For most of the items listed, the majority of local
nonprofits do not offer the benefit at all. Among the least often available benefits are child care,
education benefits, retirement benefits, and paid maternity leave. Some of the more common
benefits include professional development opportunities, paid vacation time, and flexible
schedules.


                                         Level of Benefits Offered

                  Telecommuting                        64%                           21%     15%

             Retirement Savings                            66%                   16%         18%

   Prof essional Dev. Opportunity        21%               25%                   54%

                  V acation Time          25%         10%                      65%

                      Sick Leave               35%               11%             54%

            Paid Maternity Leave                           66%                  12%         22%         Not Offe re d
                                                                                                        Partially Funde d
              Flexible Schedules          25%                    31%                  43%
                                                                                                        Fully Funde d
                V ision Insurance                     58%                        30%          12%

                Dental Insurance                     52%                       31%           17%

                Health Insurance               37%                       39%                24%

              Education Benef its                                81%                        18%    1%

                      Child Care                                   90%                        7% 2%

                                    0%   10% 20% 30% 40% 50% 60% 70% 80% 90% 100%




Some of the findings are troubling because of their long-term implications. Almost 4 in 10
nonprofits do not offer health insurance. Less than half offer vision or dental insurance. About
two-thirds of agencies do not offer any level of retirement savings for employees. Without
health insurance or retirement savings, employees are at serious risk of financial hardship in the
future. Recent trends show that immediate improvements in these areas are unlikely.




                                                                                                    2008 Nonprofit Survey - 16
Agency executives were asked to identify their agency’s trend in providing employee benefits.
The chart below shows the percent of agencies with decreasing, flat, or increasing benefits
during the past five years. For each individual benefit, the level of benefit has remained steady
for the majority of agencies. A comparison of the percentage of agencies that have decreased
benefits with those that have increased benefits reveals the overall trend for each benefit.

Outside of insurance, most benefits that cost agencies money are declining. Fewer agencies are
offering retirement savings, paid maternity leave, childcare, and education benefits. However,
other benefits, including professional development opportunities, vacation time, sick leave, and
flexible schedules, have increased overall. Several of the benefits that declined overall,
including education benefits and childcare, are unavailable at most agencies, indicating that these
benefits may be in danger of disappearing in the not-too-distant future.


                                            Trends of Benefits Offered

               Telecommuting          15%                    69%                 15%

          Retirement Savings           16%                   73%                     12%

 Professional Dev. Opportunity        11%             59%                  30%

                Vacation Time 4%                       77%                      19%

                   Sick Leave     7%                    79%                      14%

                                                                                       3%       Decreased
         Paid Maternity Leave     10%                         87%
                                                                                                Stayed Same
           Flexible Schedules     10%                   71%                     19%             Increased

             Vision Insurance          20%                   59%                20%

             Dental Insurance           24%                  51%               24%

             Health Insurance           23%                 51%                26%

           Education Benefits           17%                    75%                    7%

                   Child Care          16%                        81%                  3%

                                 0%           20%     40%          60%   80%           100%




Having and increasing employee benefits is related to the size of the agency. Providing
employee benefits is strongly associated with the size of an agency. For almost all employee
benefits examined, there is a very strong statistical association between the size of agency and
the level of the benefit. The relationship between changes in employee benefits and agency size
is less clear. For most benefits, the changes are not associated with the size of the agency.
However, where an association exists, the relationship is positive - in other words, benefits are
more likely to increase at larger agencies.


                                                                                           2008 Nonprofit Survey - 17
Increased Demand for Agency Services
In this section, we look at demand for services and examine influences on demand for services.
The chart below shows how executives responded to questions regarding the demand for services
at their agency. All of the agency executives reported that demand for their agency’s services is
increasing to some extent. Fortunately, the vast majority of agency executives (91%) believe
their agency is able to meet current demand, at least to some degree, and as many agency
executives believe their agencies might be able to meet future demand. Unfortunately, there
appears to be a lot of uncertainty about meeting all the demand for services, both now and in the
future.


                                           Demand for Agency Services


    Able to Meet Current
                                7%                       68%                           25%
          Demand


                                                                                                          Not at all
    Demand for Services
                                     21%                             80%                                  Somewhat
       Increasing
                                                                                                          Definitely


     Able to Meet Future
                                7%                     62%                         31%
           Demand


                           0%        10%   20%   30%   40%     50%   60%   70%   80%     90%   100%




Agency executives were also asked about potential causes of the increases in demand for
services. Many influences were identified. The chart on the following page shows the influence
of a variety of causes including population growth, a greater awareness of available services,
increased poverty, decreased government spending on social programs, and to a lesser extent, job
losses and the subprime mortgage industry woes. Many of the problems are interrelated. San
Bernardino County and the surrounding area has been experiencing population growth for some
time and the population growth is not in the wealthiest portion of the population. To aggravate
the problem further, the wages in the area have not kept pace with increasing costs of living,
creating a situation where many individuals and families are in financially-precarious situations.
At the same time, a decrease in government spending on social programs has forced persons in
need to turn to other sources of help.




                                                                                               2008 Nonprofit Survey - 18
                                   Causes of Increased Demand in Services

    Decrease in Govt.
                                     28%                       35%                             38%
       Programs


    Increased Poverty              26%                   28%                              46%


 Greater Awareness of                                                                                               Not An Influence
                             12%                  41%                                    47%
       Services
                                                                                                                    Small Influence

         Pop. Growth           18%                     37%                                45%                       Huge Influence


   Subprime Mortgage                              61%                               23%                16%
        Failures


          Job Losses                       40%                         27%                      33%



                        0%     10%         20%   30%    40%          50%     60%   70%     80%        90%    100%




Regardless of the cause(s), the increase in demand for services appears to be universal
throughout the nonprofit sector. The increase in demand does not appear to be related to field of
service, size of the agency or primary population served. Agencies, regardless of size, are
equally likely to face an increase in demand for services. Likewise, an agency’s ability to meet
current demand or expectations regarding ability to meet future demand for services is not
related to the items mentioned above. It is evident from this report, that the nonprofit sector as a
whole is facing an uncertain ability to cope with growing demand for services.




                                                                                                             2008 Nonprofit Survey - 19
Program Outcomes Evaluation
The emphasis on program effectiveness and efficiency is increasingly important. Agency
executives were asked in what capacity their agency uses program outcomes evaluations (e.g., to
satisfy funders, improve programs, or marketing purposes). According to agency executives,
outcomes are widely used and useful for a variety of reasons. The vast majority of agency
executive (86%) reported that outcome evaluations are useful for their agency. We examine why
outcomes evaluations are useful and for which agencies.

Over 80% of executives surveyed indicated that their agency uses program outcomes evaluations
and over half (55%) indicated that their organization uses outcomes evaluations for all of its
programs. The use of outcomes evaluation is not limited to large agencies. Regardless of size,
the majority of agencies conduct program outcomes evaluations. However, agencies with
funders who require outcomes reporting are much more likely to conduct outcomes evaluations
for all their programs and to find outcomes useful.


                                     Program Outcomes Evaluation

           Us e Outcom es for
                                                                       62%
               Marketing

      Find Outcom es Us eful                                                                86%


    Have Staff Qualified to do
                                                                             68%
          Outcom es
    Us e Outcom es to Make
                                                                                      80%
    Program m atic Changes

        Any Funders Require
                                                                             67%
             Outcom es

      Us es Outcom es for All
                                                                 55%
            Program s

    Agency Us es Outcom es                                                               81%


                                 0    10   20   30   40    50    60          70     80         90   100



An obvious use of program outcomes is to identify opportunities to improve programs. Almost
all (94%) of the agencies that conduct program outcome evaluations use them to make changes
to programs. There is also a very strong association between using outcomes results to guide
program changes and finding outcomes evaluations useful.

About two-thirds of the executives indicated that their agencies have staff qualified to conduct
program outcome evaluations. Agencies with funders who require outcomes evaluations are
much more likely to have staff qualified to conduct outcomes evaluations. Although, the


                                                                                   2008 Nonprofit Survey - 20
majority of agencies of all sizes have staff qualified to conduct outcomes evaluations, revenue is
associated with having qualified staff. Agencies with larger revenue are more likely to have
qualified evaluation staff. What is not clear, and cannot be determined with a cross sectional
survey, is what comes first – funders requiring outcomes, then providing funding, or agencies
becoming more successful because of outcomes, then attracting funders who require program
outcomes evaluations.

Most agency executives (62%) reported that their agency uses outcomes for marketing purposes.
Larger agencies are much more likely to use program outcomes for marketing purposes. Fewer
than half of the agencies with budgets less than $100,000 use outcomes for marketing purposes,
while 80% of the agencies with budgets equal to or greater than $750,000 do so. Agencies that
use outcomes for marketing purposes are also much more likely to find outcomes useful. All
(100%) of the agencies that use outcome for marketing purposes find outcomes useful.

There is a very strong statistical association between the number of uses an agency has for
program outcomes and the usefulness of outcomes to an agency. The three primary uses
identified here are improving programs, marketing, and satisfying funders. However, these uses
are not mutually exclusive. Using program outcomes appears to be good for business.




                                                                             2008 Nonprofit Survey - 21
Fundraising and Revenue Sources

Fundraising is the lifeblood of nonprofits. In this section, we examine the major sources of
revenue identified by local nonprofit agencies and also examine the effectiveness of fundraising
efforts. A possible influence on the effectiveness of grant writing and other fundraising is
examined.

Sources of Revenue

Agency executives were asked to identify their agency’s two largest sources of revenue. The
agencies represented in this survey have diverse sources of income. The most often identified
source of major revenue for local nonprofits is government agencies. Over half of the agencies
count government grants or contracts as one of their two greatest sources of income. The next
most commonly identified source of revenue is individual donors. Program fees, foundation &
corporate grants, and special events were listed as major sources of income about 20% – 25% of
the time. Federated fundraisers, such as United Way, were identified as a major source of
income for just 6% of the organizations.


                              Two Greatest Sources of Revenue


                           Special Events

                   Fundraising Federation

                           Program Fees

                      Individual Donations

                  Foundation/Corp. Grants

                   Govt. Grants/Contracts

                                             0%   10%   20%   30%   40%   50%   60%




Major sources of income are related to the size of agency. For small agencies (those with
revenue less than $100,000), individuals and special events are the most often identified major
sources of income. Medium-sized agencies (those with revenue between $100,000 and
$749,999) are more likely to have individuals and governments as major sources of income. The
largest agencies are most likely to depend on governments and program fees as major sources of
income.

Certain types of organizations are more likely to receive major portions of their revenue from
particular sources. Education, social services, and community & economic development
organizations are most likely to be dependent on government grants and contracts. Arts &
culture and health organizations are most likely to be dependent on foundation and corporate
grants. Environmental, fraternal, and religious organizations are most likely to be dependent on


                                                                                2008 Nonprofit Survey - 22
individual donations. Recreation and health organizations are most likely to be dependent on
program fees as major sources of income. Fraternal & service organizations are more likely than
other types of organizations to be dependent on federated fundraisers. Environmental and arts &
culture organizations are most likely to be dependent on special events as major sources of
income. The table below shows the two most often identified sources of major income for local
nonprofits based on their field of service.

         Two Most Often Cited Major Sources of Income by Field of Service




                                                                                                              Foundation and
                                                 Special Events




                                                                                Program Fees




                                                                                                                               and Contracts
                                                                                                               Corp. Grants

                                                                                                                                Govt. Grants
                                                                  Fundraising
                                                                  Federation




                                                                                               Donations
                                                                                               Individual
Advocacy                                                                                          x                                x
Arts and Culture                                  x                                                               x
Community and Economic Development                                                                                                 x
Education                                                                                         x                                x
Environment                                       x                                               x
Fraternal and Service                                                x                            x
Health                                                                           x                                                 x
Human/Social Service                                                                              x                                x
Recreation                                                                       x                x
Religious and Spiritual                                                          x                x

It is impossible to predict what an agency does based on annual revenue alone. Organizations of
all sizes, including those with no budgets, are operating in most fields of service. Education,
health, and human services organizations are most likely to have annual revenue in excess of
$750,000; however, most organizations in those fields of service have more modest revenue
levels. Organizations in the environmental, advocacy, community and economic development,
fraternal organization, and art and culture fields are most likely to have no or very small (less
than $50,000) levels of revenue.

Effectiveness of Fundraising

Agency executives were asked to rate the performance of their organization’s fundraising efforts.
Agency executives rated both grant writing and non-grant writing fundraising effectiveness. The
chart on the following page shows the distribution of responses. Based on agency executive
responses, there is much room for improvement in fundraising. Only 1 in 4 (26%) think their
agency does a good job at fundraising through grant writing. Even fewer executives (21%) think
that their agency does a very good job of fundraising in other ways.


                                                                                                      2008 Nonprofit Survey - 23
                                 Fundraising Effectiveness


       Grant Writing      38%                36%                26%
                                                                              Not Very Well
                                                                              OK
                                                                              Very Well
   Non-Grant Writing    30%                 50%                  21%



                   0%     20%       40%        60%        80%          100%




There is a definite association between fundraising effectiveness and size of the organization.
For both grant writing and non-granting forms of fundraising, but especially for grant writing,
larger agencies tend to be rated higher by their executives. 63% of the executives at the smaller
organizations (revenues < $100,000) rated their agency’s performance at fundraising through
grant writing as “not very well” and only 4% rated their organization as doing “very well.” For
the largest agencies (revenue $750,000 or greater) 11% of agency executives rated grant writing
effectiveness as “not very well” while 44% rated grant writing effectiveness “very well”. Mid-
sized agencies had results falling between those of the larger and smaller agencies. The overall
pattern for non-grant writing was similar but the differences were not as great as those for grant
writing effectiveness.

When looking at who performs fundraising, definite patterns emerge. For grant writing, the
presence of staff has a positive influence. Volunteer-only grant writing was universally rated
“not very well” for fundraising effectiveness. Using consultants only or a combination of
consultants and volunteers was never rated “very well” for effectiveness. The most effective
combination appears to be staff, volunteers, and consultants working on grant writing. The
second most highly rated option was staff only.

Care must be taken in the interpretation of these findings regarding effectiveness and who
performs grant writing functions. The mostly plausible explanation is found in quantity rather
than quality. This certainly does not mean that volunteers and consultants cannot be effective
grant writers. Although having an employee who is intimately involved in the operation of an
organization can have qualitative advantages in terms of grant writing, most likely the
consultants and volunteers are not writing as many grants for the agency as a full-time employee
would. The finding that a combination of staff, volunteers, and consultants being the most
effective at grant writing also supports a quantitative over qualitative interpretation.

There is no clear pattern as to what combination of personnel is better or worse with regard to
non-grant writing fundraising other than that the presence of staff that performs those duties
tends to be positive. Part of the problem in identifying the most effective personnel combination




                                                                              2008 Nonprofit Survey - 24
may be found in the lack of specificity in the type of fundraising identified. Most types of
fundraising activities are non-grant writing.

Summary

In summary, individual donors and government sources are most often identified as major
sources of income. For every field of service either or both individual donors or government
agencies is identified as one of the two greatest sources of revenue. However, these are
tendencies and not absolutes. There is a great variation between individual agencies, even within
fields of service. With regard to who does fundraising, it appears that the quantity of fundraising
might be more important than who does it.




                                                                             2008 Nonprofit Survey - 25
Marketing and Communications
This chapter focuses on advertising and communications methods used by local nonprofits.
Agency executives were asked what methods were used in the past year to share information
about their organization. This could be for any reason including fundraising, advertising services
or information presented by third parties such as news stories. The chart below shows the
percent of agencies using a particular type of marketing or communications method. It is easy to
see that nonprofit agencies employ a variety of methods to communicate with the public.


                                         Advertising Methods Used

                       Fliers                                                                               94%

                         211                                                    60%

                Outdoor Ads                 20%

            Agency Website                                                                       81%

             Phone Book Ad                                          48%

        Electronic Newsletter                                 41%

             Print Newsletter                                                              76%

                       Radio                                             52%

                  Television                       30%

         Online Newspapers                               36%

           Print Newspapers                                                                75%

                                0   10     20     30     40         50         60     70    80         90    100




Some marketing and communications methods are employed more frequently than others. The
most common method is fliers (94%), followed by agency websites (81%), printed newsletters
(76%), and printed newspapers (75%). The majority of agency executives (60%) reported that
their agency is listed with 2-1-1. 2-1-1 information and referral service has been in existence in
San Bernardino County for just over a year. The only other medium used by over half of the
agencies is radio (52%).

Other methods are used less often. Less than half of the local nonprofit agencies use phone book
advertising (48%), electronic newsletters (41%), online newspapers (36%), television (30%), and
outdoor advertising (20%). The lack of use of some methods, such as television, because of its
expense and the local television market is understandable, but others are not as easily explained.
For instance, electronic newsletters are relatively easy and inexpensive, especially if an agency is
already publishing a printed newsletter.

The size of an agency plays a role in advertising and communications. For most
communications methods, larger agencies are more likely to have used that method. Larger
agencies also tend to use a greater number of marketing methods. This is not surprising since


                                                                                                 2008 Nonprofit Survey - 26
larger agencies have more money to invest in more expensive types of advertising and are more
likely to have staff dedicated to marketing and communications.

To some degree, all agencies advertise and market their services. Overall, the majority of
agencies use staff (82%) and volunteers (63%) to perform marketing and advertising. Less than
one-fourth (23%) use consultants in this role. The chart below shows the interaction among
these groups in regards to who does marketing and advertising work. The most common (37%)
arrangement is a combination of staff and volunteers. Almost one-third of agencies (32%) rely
solely on staff. Just over one-fifth (21%) of the organizations utilize a combination of staff,
volunteers, and consultants. The use of volunteers only, consultants and volunteers (without
staff) and staff and consultants (without volunteers) is much less common.


                                                    Who Does Marketing and Advertising

                  21%
                                                                  Staff Only
                                    32%                           Volunteers Only
      3%
                                                                  Staff & Consultants
                                                                  Staff & Volunteers
                                                                  Consultants & Volunteers
                                        6%
                                                                  Staff, Consultants, & Volunteers
                  37%
                                             1%




Who performs marketing and advertising at an agency is definitely related to the size of the
organization. The chart below shows a breakdown of the percent of agencies that use staff,
consultants, and volunteers by size of organization. While most agencies, regardless of size, tend
to rely most heavily on staff, definite patterns emerge. The larger the agency the more likely the
agency is to rely on staff and not rely on volunteers. Volunteers are most likely to be found at
smaller agencies, while consultants are most often found at mid-sized agencies.


                                 Who Peforms Marketing Activities
                                                                        96%
           100%
                                             82%
            80%    70%
                                                                                                     Staff
            60%                  39.3               34.1                                             Consultants
            40%                                            20.5
                         17.4                                                  11.5                  Volunteers
            20%                                                                        3.2
             0%
                         < 100                    100 - 749                    750+
                                        Agency Revenue in 1,000s




                                                                                                 2008 Nonprofit Survey - 27
Next, we examine how well agencies do at advertising and marketing. The chart below shows
how agency executives rated the effectiveness of their agency. The majority of agencies (56%)
rated their agency as doing “OK” at marketing and advertising. 20% of the agency executives
rated their agency as doing “Very Well.” The remaining agencies, almost one-fourth of the
agencies represented (24%), were rated as doing “Not Very Well” by their executives.

                                                Marketing and Advertising
                                                     Effectiveness

                                 20%      24%

                                                                Not Very Well
                                                                OK
                                                                Very Well
                                    56%




There is no relationship between the effectiveness of marketing and advertising and size of the
organization or who performs the work. In other words, there was no difference in the ratings
executives of larger agencies and smaller agencies gave their agency. The results were similar
across the range of agency sizes. Likewise, who performed the marketing and advertising work
(staff, consultants, or volunteers) is not related to effectiveness. What is important is that it was
done.

Some, but not all, of the individual advertising items that correlate with being rated as
performing “very well” are those that are done less often such as television, online newspapers,
and outdoor advertising. However, this does not mean that doing those particular types of
advertising leads to effectiveness. After all, some often-used methods, such as newspaper
advertising, are highly correlated with effectiveness ratings. What this probably indicates is that
those agencies are more likely to do a greater variety of marketing and advertising. Statistical
analysis shows that the best predictor of marketing and advertising effectiveness is the number or
variety of methods used.

One additional item was asked of nonprofit executives regarding marketing the local nonprofit
sector as a whole. Agency executives were asked to what extent they would value a “nonprofit
week” or “nonprofit month.” The chart on the following page shows the range of responses.
Overall support for this concept was very high. Over three-fourths of the executives responded
that they valued the idea to some degree, while about one-third indicated that they valued the
idea “a lot.”




                                                                                2008 Nonprofit Survey - 28
                                Value "Nonprofit Week/Month"




                                        22%
                            34%                               Not At All
                                                              A Little
                                                              A Lot

                                       44%




In summary, the analysis shows that there is great variety in how local nonprofits go about
marketing and advertising their organizations. Wide ranges of methods are used. There is also
great variation in who does the marketing and advertising work. There is no single combination
of methods or personnel that seems to work best. There are many ways to accomplish this
important task. However, when examining the effectiveness of marketing and advertising, more
seems to be what works best most of the time.




                                                                           2008 Nonprofit Survey - 29
Information Technology
Agency executives were asked a series of questions regarding the information technology
situation within their organization. Questions were asked about equipment, facilities, staff
access and capability, and budgeting. Agency directors were presented with a series of questions
regarding information technology to which they responded “Yes” or “No.” The chart below
shows the percent of respondents answering “Yes.” Each item is discussed in further detail
below.



                                          Percent Responding "Yes" To
                                       Information Technology Questions


                    Agency Has Website
               Has Adequate IT facilities
            Enough Technology Devices
         Sufficient Quality Tech. Devices
                         Staff Has Email
                Staff Trained Adequately
    Uses Databases to Collect Client Info
            Uses Accounting Databases
                       Dedicated IT Staff
                           VOIP System
                          Has IT Budget

                                            0%   10%   20%   30%   40%   50%   60%   70%    80%    90%    100%




Websites

83% of agency executives reported that their agency has a website. It is not surprising that most
agencies have websites considering the importance of the internet for communications and the
low cost of owning a website. Although most agencies within any given revenue category have
a website, the larger agencies are more likely to have a website. Websites do require time and
effort to build and maintain a quality website, especially one that provides capabilities beyond
simply viewing pages. This may explain, in part, the disparity in having a website. For instance,
70% of agencies with revenues below $100,000 have websites, while 96% of agencies with
revenues in excess of $750,000 have a website.




                                                                                           2008 Nonprofit Survey - 30
                            Percent of Agencies with Websites
                                                                        96%
              100%
               90%                                 82%
               80%           70%
               70%
               60%
               50%
                             < 100              100 - 749               750+
                                         Agency Revenue in 1,000s



Physical Facilities for Information Technology

When agency executives were asked if their agency had adequate physical facilities for its
Information Technology infrastructure, 62% responded affirmatively. There is no neat way to
characterize the results of the response to this question. While it is no surprise that more than
half of the organizations with revenue less than $50,000 have inadequate physical facilities and
that 88% of the agencies with revenue in excess of $5 million have adequate facilities, it is
somewhat surprising that half of the agencies with revenue between $750,000 and $5 million
report having inadequate facilities.

Quantity of Technology Devices

Agency executives were asked if their agency had enough technology devices such as computers,
telephones, software, printers, faxes, etc. Only 44% of agency executives thought that their
agency had enough technology devices. The problem is not limited to agencies with less
revenue. Even a majority of the agencies with the greatest level of revenue ($5 million +), do not
have an adequate quantity of technology devices.

Quality of Technology Devices

 Closely related to the quantity of technology equipment is the quality of the equipment. Just
over half (52%) of the agency executives reported that the technology in use at their organization
was of sufficient quality. In the case of quality of technology, revenue appears to make a
difference. As the following chart shows, agencies with greater levels of revenue are more likely
to have technology of adequate quality.




                                                                               2008 Nonprofit Survey - 31
                       Percent of Agencies with Adequate Technology
                                                                       63%
              65%
              60%
              55%                                  51%
              50%
                            44%
              45%
              40%
                            < 100               100 - 749              750+

                                        Agency Revenue in 1,000s



Access to Email

In today’s work environment, email is an essential communications tool. Agency executives
were asked if their professional staff had access to email. 88% of the agency executives
indicated that their professional staff did have access to email. This percentage is fairly
consistent regardless of agency revenue, which indicates that this very basic technology tool is
available to the professional staff at the majority of local nonprofit organizations.

Technology Skills

Without the personnel trained to use technology, no amount or quality of technology will benefit
an organization. Agency executives were asked if their staff had adequate training to use
technology. Overall, 79% of agency executives indicated that their staff is qualified to use
available technology. Having staff that is qualified to use technology is associated with agency
revenue. Larger agencies tend to have more technologically savvy employees. This should not
be surprising since larger agencies are often able to both hire better qualified employees and
afford to train employees.

                              Percent of Agencies with Qualified Staff

              100%
                                                                       92%
               90%
                                                   80%
               80%
               70%           65%
               60%
               50%
                             < 100               100 - 749             750+

                                        Agency Revenue in 1,000s


Use of Databases to Collect Client Information

Overall, 82% of agency executives indicated that their agency utilizes databases to track client
information. The majority of agencies at all revenue levels, including those with revenue less


                                                                              2008 Nonprofit Survey - 32
than $50,000, use databases to track client information. However, larger agencies tend to use
databases to track client information more often than do smaller agencies. Increasingly, funders
are requiring that agencies report program evaluation or outcome results that require data for
analysis. 93% of the agencies that have funders that require outcomes evaluations use databases
to track clients compared with 61% of agencies that are not required to report outcomes.


                    Percent of Agencies using Databases to Track Clients

                                                                       96%
             100%
              90%                                  82%
              80%
                            68%
              70%
              60%
              50%
                           < 100                 100 - 749             750+
                                        Agency Revenue in 1,000s



Use of Databases to Track Accounting

Over three-fourths (77%) of agency executives said that their agency uses databases to track
accounting. Not surprisingly, the use of accounting databases is associated with having larger
revenues since larger agencies tend to have more complex business relationships and a greater
amount of information to track. Only one organization participating in this survey with revenue
in excess of $750,000 reported not using a database to track accounting information.

                            Percent of Agencies using Databases
                                    to Track Accounting

            110%                                                        96%
             90%                                   79%
             70%           55%
             50%
                           < 100                 100 - 749             750+


                                      Agency Revenue in 1,000s



Agency IT Staffing

Only one-third of agency executives reported that their organization had dedicated IT staff
members. Whether or not an agency has a dedicated IT staff member is definitely impacted by
an agency’s revenue. Only about 1 in 5 agencies with annual revenues less than a million dollars
have dedicated IT staff. Only half of the agencies with annual revenue in the 1 to 5 million
dollar range have dedicated IT staff. All agencies in this sample with revenue above 5 million
have dedicated IT staff.




                                                                              2008 Nonprofit Survey - 33
                         Percent of Agencies with Dedicated IT Staff

        120%                                                               100%
        100%
         80%
                                                  50%
         60%
         40%            22%
         20%
          0%
                      < 1 million              1 - 5 million             5 million +
                                            Agency Revenue




Using consultants to perform IT duties is an option that may be cost-effective in certain
situations. IT consultants are most often used by the moderate-sized agencies in this study.
Almost half (49%) of the agencies with budgets between $100,000 and $750,000 use IT
consultants compared with about one-quarter (27%) of larger agencies and only 14% of smaller
agencies.


                           Percent of Agencies Using IT Consultants

        60%                                      49%

        40%
                                                                          27%
        20%             14%

         0%
                       < 100                   100 - 749                  750 +
                                       Agency Revenue in 1,000s




Another option for IT staffing is volunteers. It is not too surprising that smaller agencies rely
more heavily on volunteers to do IT work than do larger agencies. The larger agencies tend to
have dedicated staff, while mid-sized agencies often use consultants. Over half of agencies with
budgets less than $100,000 depend on volunteers to do IT work while only 20% of agencies with
annual revenue of $750,000 or more rely on volunteers, and then not to a great degree. None of
the largest agencies are very dependent on volunteers for IT needs. The chart below shows the
level of dependence on volunteers for agencies of varying size. There is a moderately strong
negative statistical correlation between size of agency and dependence on volunteers for IT
staffing.




                                                                             2008 Nonprofit Survey - 34
                                         Dependency on Volunteers


            < $100,000                    48%                       21%            31%


                                                                                                        Not at All
    $100,000 - $749,999                  44%                         36%               20%              Somewhat
                                                                                                        Definitely


             $750,000                                 80%                              20%



                          0%      10%   20%     30%   40%   50%     60%    70%   80%   90%   100%




VOIP Phone Systems

Less than 1 in 5 nonprofits have a VOIP phone system. VOIP phone systems are common only
at the largest agencies. Just over half (57%) of the largest agencies (those with annual revenues
in excess of $5 million) represented in this survey have VOIP phone systems. Only 14% (about
1 in 7) of agencies with annual revenues less than $5 million have VOIP systems.

Information Technology Budget

Almost half (45%) of the agencies represented in this survey have IT budgets. Having an IT
budget is certainly related to agency revenue. Only 1 in 7 agencies with revenue below $100,000
per year have IT budgets, about 4 in 10 agencies with revenue between $100,000 and $750,000
have IT budgets, and about 4 in 5 agencies with revenue in excess of $750,000 have IT budgets.


                                   Percent of Agencies with IT Budget

  100%                                                                                   78%
   80%
   60%                                                      41%
   40%
                          14%
   20%
    0%
                          < 100                         100 - 749                        750 +
                                                Agency Revenue in 1,000s



Internet Access

The vast majority of the agencies represented in the survey, 98%, have access to the internet.
Most of these have a high-speed internet connection of some sort. Most agencies (73%) have a


                                                                                             2008 Nonprofit Survey - 35
DSL or cable connection to the internet. A substantial portion of agencies, 18%, has T1 or faster
connections to the internet. The chart below shows the type of internet connection used by local
nonprofit agencies.

                                  Type of Internet Connection



                           6%                                      No Connection
                                                 73%
                           2%                                      Dial-Up
                                                                   DSL or Cable
                                                                   Satellite
                                                                   T1 or Faster
                            18%

                                   1%

Surprisingly, there is only a small association between the size of the agency and what type of
internet connection the organization has. Some agencies with revenues in excess of a million
dollars report using dial-up connections while other agencies with revenues less than $100,000
had T1 connections. However, the faster and more expensive T1 connections are much more
common among the larger agencies.

Effectiveness of Information Technology

Agency executives were asked to rate the overall performance of information technology in their
organization. The chart below shows the overall distribution of ratings. Most executives (56%)
thought that their agency was performing “OK” in regards to information technology. One-
fourth of the executives thought their agency was doing very well. The remaining 19% thought
their agency was not doing very well.

                                              Information Technology
                                                   Effectiv eness

                                        19%
                                25%
                                                              Not Very Well
                                                              OK
                                                              Very Well
                                      56%




Based on the information presented thus far, it is obvious that having more information “stuff” is
associated with the size of the organization. However, the size of the organization and having a
greater amount of information technology resources does not translate directly into effectiveness.


                                                                               2008 Nonprofit Survey - 36
The key to having effective information technology appears to be more qualitative. What is most
strongly associated with information technology effectiveness is having dedicated information
technology staff.

Summary

Having more information technology staff and better quality equipment is associated with
organizational size. On the other hand, the majority of agency executives, no matter the size of
their agency, feel that their agency does not have a sufficient quantity of information technology
devices. When looking at the overall quality of information technology within an organization,
the best predictor of effectiveness is having dedicated staff. Information technology will
probably continue to present challenges to nonprofits since information technology is not
inexpensive and is often viewed as an expense rather than an asset in terms of the agency’s
mission.




                                                                             2008 Nonprofit Survey - 37
Nonprofit Consultants
Agency executives were asked about the use of consultants at their organization. The chart
below shows the percentage of agencies that use consultants, staff, and volunteers for particular
tasks. Two things stand out. First, consultants are employed in a broad range of activities.
Consultants are most often used for accounting (43%), information technology (33%), and
physical plant maintenance (25%). For all other tasks, less than one-fourth of agencies use
consultants. Second, consultants are utilized less than employees and volunteers for almost all
activities. The one exception is accounting, where consultants are used more often than
volunteers.


                            Who Performs Functional Activities at Nonprofits

             Vol. Training/Mgmt.

            Program Operations

            Program Evaluation

                 Physical Maint.

                       Research

                      Marketing                                                               Volunteers
                                                                                              Staff
         Information Technology                                                               Consultants

               HR Management

                   Grant Writing

  Fundraising (non-grant writing)

           Administrative Tasks

                     Accounting


                                0%   10% 20% 30% 40% 50% 60% 70% 80% 90% 100%



Statistical analysis shows that the size of the agency appears to have little influence on the use of
consultants. In general, agencies of all sizes are equally likely to use consultants. Where there
are differences based on the size of the agency, the mid-sized agencies are more likely to use
consultants. Mid-sized agencies are more likely than other size agencies to use consultants for
grant writing, information technology, and marketing functions.

Statistical analysis shows that, with a single exception, the use of a consultant makes no
difference in the level of performance of an activity. The single exception is research, where




                                                                               2008 Nonprofit Survey - 38
agencies were about twice as likely to rate their agency’s performance as “very well” if they used
consultants.

The conclusion that is drawn is that consultants are important but no more so than staff or
volunteers. Consultants perform the same range of activities as staff and volunteers and, for
most tasks, at about the same level of performance in terms of agency effectiveness. In most
instances, consultants are a more expensive solution (on an hourly basis). However, they can be
cost effective because they bring specialized skills that can be purchased as needed that would
otherwise be very expensive to have full-time or difficult to find in a volunteer position.




                                                                            2008 Nonprofit Survey - 39
Volunteers
Volunteers are an important part of the nonprofit environment. Agency executives were asked
about volunteers at their organization. Over 90% of the nonprofit organizations represented in
this survey rely on volunteers, most of them (61%) to a great degree. The survey respondents
were asked about the number of volunteers, how much volunteers are relied on to complete a
variety of tasks, their volunteer needs, and their agency’s use of the local volunteer center, Hands
On Inland Empire.

The first item examined is the number of volunteers that local nonprofits utilize on a monthly
basis. The vast majority of agencies (93%) use volunteers. The number of volunteers used
monthly varies considerably from agency to agency. Over one-third use less than 10 volunteers
a month, but over one-fifth use 50 or more volunteers. The number of volunteers used per month
is not related to the size of the agency, field of service, or race of clients served.


                              Number of Volunteers Per Month

                                             36%
                             7%                                      0
                                                                     1-9
                                                                     10 - 19
                                                                     20 - 29
                           21%                     23%
                                                                     30 - 49
                                                                     50 +
                                  6%
                                        7%



Agency executives were also asked about the extent to which their organization depends on
volunteers. The chart below shows the extent of dependence on volunteers to perform a variety
of tasks. For each task, there are agencies that depend on volunteers to a great extent. The task
that agencies depend on volunteers do most often is fundraising. The tasks that volunteers are
depended on to perform the least are human resource management, accounting, and grant
writing. However, what stands out most is the variability in dependency on volunteers.
Typically, agencies depend on volunteers to perform 6 of the 13 tasks listed on the following
page, which 6 tasks is difficult to predict. What is evident is that smaller agencies are dependent
on volunteers to perform a greater variety of tasks and to a greater degree.




                                                                               2008 Nonprofit Survey - 40
                                          Extent of Volunteer Usage

              Volunteer Training/Mgmt.                51%                            30%             19%

                   Program Operations               43%                       28%                  29%

                   Program Evaluation                     56%                          31%               14%

                 Physical Maintenance                47%                       26%                 28%

                             Research                49%                             39%                 13%
                                                                                                                     Not at all
                             Marketing         38%                            42%                    20%
                                                                                                                     A little
               Information Technology                     56%                         27%            17%             A lot
                     H.R. Management                              80%                              13%     8%

                          Grant Writing                         70%                          18%         12%

        Fundraising (non-Grant Writing)       30%                       36%                    34%

                  Administrative Tasks          38%                           40%                   23%

                            Accounting                           77%                          10%        13%


                                      0%        20%               40%          60%           80%            100%



The effectiveness of volunteers is also a consideration. For most tasks, the degree to which an
agency is dependent upon volunteers for performing the task does not make a difference in an
agency’s effectiveness in that area. The two areas where statistical correlations were found are
volunteer training & management and information technology. In both cases, the statistical
associations are modest. In the case of volunteer training and management, the association is
positive, and in the case of information technology, the association is negative. In other words,
the agencies that depend to a greater extent on volunteers to do volunteer training and
management tend to be more effective than those who do not. The opposite is true in the case of
information technology where a dependence on volunteers tends to be less effective. It must be
kept in mind that these are not absolute, only tendencies, and modest ones at that.

Agency executives were also asked about extent of volunteer needs within their organization.
The chart on the following page shows the range of responses to survey items related to
volunteers. It is easy to discern that local nonprofit agencies have a great deal of need regarding
volunteers. First, there is the need for volunteers. The vast majority of agency executives claim
that their agency needs both short-term and long-term volunteers. While the majority of
agencies have staff qualified to work with volunteers, many agencies have a need for staff
training. Two sources of volunteers, interns and court appointed volunteers, were asked about in
this survey. The majority of executives indicated that their agency had some need for these types
of volunteers.




                                                                                                         2008 Nonprofit Survey - 41
                                                       Volunteer Needs

   Willing to Work w/Court Appointed Vol.                   31%                       34%                       35%



                Staff Needs Vol. Training               27%                           44%                         29%


                                                                                                                                      Not at all
     Agency Staff Trained to Work w/Vol.         11%                      40%                             49%
                                                                                                                                      A little
           Needs Help Recruiting Interns                     35%                      28%                       37%                   Definitely

           Needs Short-Term Volunteers           5%                 44%                               52%



            Needs Long-Term Volunteers           7%          22%                              72%



                                            0%        10%     20%        30%    40%   50%   60%     70%     80%         90%    100%




Finally, agency executives were asked about their experience with Hands On Inland Empire, the
local volunteer center serving San Bernardino County that has been in operation for the past
year. Agencies are beginning to use this new volunteer matching service. The chart below
shows the degree to which local agencies use Hands On to list their volunteer needs, use
volunteers referred from Hands On or take advantage of volunteer-led projects developed
through Hand On. About 42% of agencies list volunteer opportunities with Hands On and
almost three-fourths of those are able to find volunteers using Hands On. Almost 20% of the
organizations have benefited from a volunteer-managed project developed through Hands On.
Volunteer-managed projects are led by trained volunteers who organize and direct other
volunteers in community service activities.


                                        Use of Hands On Inland Empire

             Utilized Volunteers
                                                                   70%                              16%               13%
             Through Hands On
                                                                                                                                   Not at all
            Used Hands On Vol.                                                                                                     A little
                                                                          81%                               10%         8%
             Managed Project
                                                                                                                                   A lot


         List Needs w/Hands On                               59%                            20%                 22%



                                   0%   10%       20%        30%     40%        50%   60%   70%     80%         90%         100%




The findings from this survey show that volunteers are a vital part of the nonprofit community.
Organizations rely on volunteers and volunteers do an adequate job in the tasks that they do. The
findings also show that nonprofits have volunteer needs that are not being met, especially in the
area of volunteer recruitment. As more agencies become aware of and begin to use Hands On
Inland Empire, this situation should improve.


                                                                                                                  2008 Nonprofit Survey - 42
Use of 2-1-1
In September 2006, 24-hour countywide 2-1-1 information and referral services became
available to the residents of San Bernardino County. Los Angeles, Orange, and Riverside
Counties had earlier implemented 2-1-1 services. 2-1-1 enables callers to locate assistance with
the help of trained specialists using a comprehensive database of services. Both persons in need
and professionals seeking assistance for clients can use 2-1-1. Additionally, San Bernardino
County’s 2-1-1 service, provided by Inland Empire United Way, provides a searchable public
web interface to the database of services.

Agency executives were asked to what degree their agency, employees, and clients use 2-1-1.
The chart below shows the extent of use of 2-1-1 by local nonprofits. Most agencies (62%)
reported listing at least some of their services with 2-1-1. The majority of agencies use 2-1-1 to
list their available services and to find help for their clients. The most common use of 2-1-1 is to
refer clients to call 2-1-1 directly to locate assistance. However, the staff members at most
agencies also call 2-1-1 or search the 2-1-1 online database on behalf of their clients.


                                           Agency Use of 2-1-1


        Staff Uses 2-1-1 Website                 44%                           34%                 21%




                 Staff Call 2-1-1          35%                           41%                      25%
                                                                                                                    Not at all
                                                                                                                    A little
                                                                                                                    A lot
             Clients to Use 2-1-1      25%                   30%                           44%




         List Services with 2-1-1            38%                   15%                     47%




                                0%   10%     20%       30%   40%     50% 60%         70%    80%   90% 100%



The primary race or ethnicity of an agency’s clients is not related to using 2-1-1. In other words,
the race and ethnicity of clients is not a barrier to local nonprofit agencies using 2-1-1.

There is a modest association between the size of an agency and the likelihood of using 2-1-1.
The larger the agency the more likely the agency is to use 2-1-1. This holds true for each of the
above-mentioned uses of 2-1-1. In addition, the larger the agency the greater number of ways an
agency is likely to use 2-1-1. Most agencies, regardless of size use 2-1-1, with the greater
percentage being larger agencies.

The type of work an agency performs affects the agency’s use of 2-1-1. Certain types of
organizations are more likely than others to use 2-1-1. In general, human/social service agencies
are the most likely to use 2-1-1. Advocacy, religious or spiritual, and recreational agencies also


                                                                                                        2008 Nonprofit Survey - 43
commonly make use of 2-1-1, while environmental, arts & culture, and economic and
community development agencies are least likely to make use of 2-1-1.

For the majority of agencies, using 2-1-1 tends to be an all or none proposition. Those agencies
that list their own services with 2-1-1 are very likely to use 2-1-1 to locate services for clients
and refer clients to 2-1-1 while those agencies that do not list their services with 2-1-1 tend to not
use 2-1-1 themselves and do not refer clients to 2-1-1.




                                                                                2008 Nonprofit Survey - 44
Nonprofits as Second Responders in Disasters
In recent years, this region of Southern California has been prone to disasters, especially fires.
An important lesson that has been learned is that long-term recovery assistance is very limited.
Agency executives were asked a series of questions about their organization’s willingness to
participate in a variety of roles as a second responder in case of disaster. The questions covered
a variety of topics including providing direct services, providing administrative services, raising
funds for direct service providers, and strategic planning. The chart below shows the range of
responses of agencies willingness to engage in different disaster related activities.


                       Willingness to Participate As Second Responder


       Raise Funds for Direct
                                              48%                         34%               18%
         Service Providers



       Provide Administrative
                                      27%                         46%                     27%
             Services
                                                                                                             Not at all
                                                                                                             Possibly
                                                                                                             Definitely
        Offer Direct Services         22%                 37%                       40%




           Strategic Planning        21%                    47%                       32%




                                0%   10%    20%     30%   40%   50%     60%   70%   80%     90% 100%




The responses show that most agencies are willing to at least consider each of the roles
previously mentioned. The most positive response regards the willingness to offer direct
services. The most negative response was regarding raising funds for direct service providers.
There is a fairly strong statistical relationship between willingness to provide direct services and
willingness to raise funds for direct service providers. Those agencies that are willing to provide
second responder services are also the agencies that are most likely to raise funds for direct
service providers. Those agencies that are unwilling to provide direct services are also unwilling
to help raise funds for direct services providers to provide long-term services.

In general, the size of the agency or the type of work an agency does not have a big influence on
an agency’s likelihood of accepting a role as a second responder. Larger agencies are slightly
more likely to be willing to act as a direct service provider. However, agencies of all sizes are
equally likely to accept any of the other roles. No significant differences were found among
agencies in different fields of service.


                                                                                                2008 Nonprofit Survey - 45
In summary, most agencies, regardless of field of services or size are willing to at least consider
accepting a role as a responder. However, considerably fewer are willing to commit definitely to
a second responder role. As the chart above shows, there is a lot of uncertainty about what roles
agencies are willing to take. What seems most certain is that few agencies will be willing to
raise funds for direct service providers other than themselves.




                                                                             2008 Nonprofit Survey - 46
Networking and Information Sharing
Local nonprofit executives were presented survey items regarding the value they place on
networking and information sharing activities. The activities ranged from a simple notification
of emerging issues to larger scale events such as an annual nonprofit conference. The responses
were overwhelmingly in favor of such activities. The chart below shows the range of responses
for each survey item.


                                                             Value

             Meetings w/Elected
                                     9%                40%                              51%
                  Officials


                Annual Nonprofit
                                     9%                42%                              49%
                  Conference                                                                                     Not at all
                                                                                                                 A little
        Gathering to Discuss Key                                                                                 A lot
                                    3%           36%                              61%
                 Issues


         Notification of Emerging
                                    6%          29%                              65%
                   Issues


                                0%        10%   20%    30%    40%    50%   60%    70%         80%   90% 100%




The appeal of networking and information sharing activities is near universal. For each item
presented in the survey, only a handful of executives indicated that the items were of no value to
them. For each survey item the most often given response was “a lot.” Executives from
agencies of all sizes and fields of service showed equal enthusiasm for these activities. Clearly,
there is a desire among local nonprofit leaders to seek out information and share ideas.




                                                                                                     2008 Nonprofit Survey - 47
Agency Collaboration
This section examines agency collaboration among local nonprofits. Collaboration can take on
many forms. In the previous section on networking and information sharing, it was shown that
agency executives very much valued the opportunity to share information. In this section,
collaboration is examined within a framework of actions.

Almost all of the agency executives indicated that their agency values the opportunity to
collaborate with other organizations. In fact, 99% of the agency executives who participated in
the survey indicated that they value the opportunity to collaborate; 75% of them said they value
the opportunity to collaborate “a lot.” The chart below shows the distribution of responses to a
survey item regarding the value placed on collaboration.

                                          Extent Executives Value Collaboration


                                                24%
                                   1%


                                                                                Not At All

                                                                                A Little
                                                             75%
                                                                                A Lot




Agency executives were also asked to what extent their agency had taken action regarding
collaboration in the past year. Executives were asked about jointly operated programs, combined
services, and mergers. The chart below shows the range of responses. Almost half (45%)
indicated that their agency jointly operated a program and about 20% have some combined
services. Many others are actively considering some form of collaboration but have yet to take
action.


                                                  Agency Considered


                    Merger                            77%                      17%         7%



                                                                                                  Not a Consideration
        Combined Services                 36%                      44%               20%
                                                                                                  Considered but No Action Taken

                                                                                                  Actively Involved

   Jointly Operated Program         27%                28%               45%




                              0%          20%         40%          60%   80%               100%




                                                                                                     2008 Nonprofit Survey - 48
There is an association between the size of the organization and actively collaborating with
another organization. While organizations of all sizes jointly operate programs, larger agencies
are more likely to jointly operate a program. About one-fourth of the smallest agencies (those
with budgets less than $100,000) collaborate with another agency to operate a program while
about two-thirds of the largest agencies (those with budgets greater than $750,000) do so.
The final issue examined, mergers, can be viewed as one end of the continuum of collaboration.
Relatively few agencies (7%) have been involved in a merger. Most agencies (77%) have not
considered a merger in the past year. However, it is not uncommon for agencies to at least
consider a merger; 17% have considered a merger but have not taken action. While the
differences are small and not statistically significant, it appears that the smallest agencies are the
most likely to consider or be actively involved in a merger.




                                                                                2008 Nonprofit Survey - 49
Relationship with Government Agencies
Agency executives were asked to identify the relationships their organization has with
government agencies. The chart below shows the responses. Overall, 85% of nonprofit
organizations have a relationship with government agencies. The relationships are varied.
About three-fourths of the local nonprofits receive government funding and about two-thirds
partner with government agencies to provide services. Almost half of the local nonprofit
organizations network with government agencies and 29% have a government representative
serving on their board or on a committee.


                              Relationship with Government Agencies

                   No Relationship             15%



              Govt. Rep on BoD or
                                                          29%
                   Committee

        Network with but No Formal
                                                                     47%
               Relationship

               Partner for Services                                                  67%




                  Receive Funding                                                          74%



                                      0   10         20   30    40   50    60       70           80




Larger agencies are more likely to receive government funding and to partner with a government
agency to provide services. However, the size of the nonprofit agency has no relationship with
networking or having a government representative serving as a board or committee member.
Additionally, the vast majority of organizations (91%) regardless of size or field or service value
the opportunity to meet with elected government officials.

The field of service of an organization is related to receiving government funding but not to other
relationships an agency might have with a government agency. Community & economic
development, health, and social/human service agencies are more likely than others to receive
government funding. Environmental, fraternal, service and religious organizations are much less
likely to receive government funding.

It is obvious from the survey responses that government agencies and their representatives play
an important role in the local nonprofit sector. Almost three-fourths of agencies receive
government funding and over half of the agencies count government sources as one of their top
two revenue sources. Almost as many (67%) consider themselves to be partners with
government in providing services. Many nonprofits that have no current relationship with
government would value the opportunity to meet with elected government officials.




                                                                                2008 Nonprofit Survey - 50

								
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