Saving nonprofits through pro bono adoption

Robert Miller of The Dallas Morning News, provides a fresh outlook for companies to continue to embrace nonprofits.

Saving nonprofits through pro bono adoption by Robert Miller

Blaine L. Nelson, managing partner for Deloitte's North Texas, Arkansas and Oklahoma region, has devoted most of his adult life to solving challenges confronting the nonprofit sector.

His résumé attests to that commitment: He's the immediate past chairman of the board of governors of the Dallas Symphony Orchestra; a member of the board of directors of the Dallas Opera, United Way of Metropolitan Dallas and North Texas Regional Chamber of Commerce; a member of the Dallas Citizens Council and the advisory board of the American Film Institute Dallas; a former member of the board of directors of the Utah Symphony; and a former mayor of Fruit Heights, Utah.

Dr. Kern Wildenthal, president of the Southwestern Medical Foundation and the Dallas Opera, just recruited Nelson to help choose a permanent executive director for the Dallas Opera.

Nelson thinks philanthropy can still be effective if it adapts to meet changing economic conditions.

"In the world of corporate philanthropy, cash has long been king," he said.

"However, at a time when charitable cash contributions are being squeezed, when 76 percent of corporate grant-makers acknowledge they must adjust their giving strategies, and when there is renewed national emphasis on volunteerism, this one-track approach focused on 'show me the money' is untenable.

"It is a mind-set that must change."

At a crossroads

Nelson thinks corporate philanthropy is at a crossroads because of the recession. And for some of the more than 14,000 nonprofits in North Texas, their very survival hangs in the balance.

"Yet few corporate donors and nonprofits are thinking about using skilled volunteerism as a valued currency to complement existing philanthropic strategies and help offset declines in giving. But they should, because it's likely that those grant makers and nonprofits that seize the opportunity to expand their definition of corporate giving could emerge stronger and better able to weather the times ahead.

"The time is right to redefine the traditional definition of corporate giving, to encompass what many business leaders consider their most valuable asset: the skills of their employees."

Volunteer support

Nelson cited a recent report by his company, the 2009 Deloitte Volunteer Impact Survey, which found that 95 percent of nonprofits need more skilled volunteer support. And 97 percent said they could increase their organization's impact if they had more consulting resources on a pro bono basis.

"And while 78 percent of corporations agree that their employees' skills would be valuable to philanthropic organizations, only 50 percent offer this type of support," Nelson said.

The need for cash, of course, is legitimate and undeniable, Nelson said. But with corporate donations on the decline, the need to hasten the adoption of pro bono as a complementary giving strategy has never been more urgent.

"Consider this: Four in 10 nonprofits say they will spend between $50,000 and $250,000, or more, for outside business consultants in 2009," he said.

"If they secured pro bono support instead, they could free up those funds for other uses."

So why the slow adoption of pro bono?

"One reason is that both sides cite significant barriers to the effective giving and getting of skilled support, given its inherently sophisticated nature. But these barriers are not insurmountable."

Nelson offers a simple plan: Corporate donors should take stock internally and talk with current grantees about what types of skilled volunteer support is available.

"Nonprofits need the most help in marketing, legal and strategic planning. Those are areas in which almost any large company has experience.

"Second, they should offer a signed commitment. Companies generally follow through with financial contributions, but many nonprofits have felt the sting of unfinished pro bono projects in the past; 88 percent see the lack of a formal commitment as problematic."

Taking the right steps

Nelson said nonprofits can also take important steps.

"First, they must be ready to accept pro bono help. The Volunteer Impact Survey found that nonprofits are generally better equipped to cultivate cash vs. volunteers. So make sure to assign qualified staff or board members to solicit and oversee pro bono engagements in their areas of expertise.

"And second, when negotiating sponsorship contracts, think beyond the cash mentality. Recognize pro bono service as an asset that should garner benefits. Treat it as the valuable currency it is."

Nelson said these ideas are just for starters.

"It's been said that no one should ever waste a crisis. Indeed, these challenging economic times are cause for many corporate givers to readjust their giving strategies to the new reality.

"Given the unlikelihood of increased cash giving, make pro bono the new currency. If our workforce is one of corporate America's most important assets, let's make it the community's too."

10:17 AM CDT on Tuesday, May 26, 2009