WHAT NON-PROFIT SOCIAL SERVICE AGENCIES ARE FACING:

CASE STUDY OF THE PITTSBURGH PROJECT

Introduction

With the dramatic development of the nonprofit sector in the past 20 years, we

now live in a world where non-profit agencies provide services in almost every field –

health care, education, social service, etc. It is nearly impossible to clearly define this

sector because of its extreme vastness and diversity, and the blurred boundaries between

the agencies in this sector and those in other sectors make citizens feel that nonprofit

social service agencies are the nonprofit sector.1 The faith-based initiative of Bush

Administration further complicated this arena. To bring clarity to the sector, we ask

several questions. What are the current opportunities and challenges for social service

organizations, especially faith-based agencies? How do these organizations respond to

these challenges? What is the future of this sector? These are all urgent problems for

nonprofit social service organizations to address.

In this paper, we will first map the field of social services, giving a brief

introduction of the types, sizes, opportunities and challenges for agencies in this sector.

We will then focus on the faith-based initiatives of the Bush administration. Among the

challenges for social service nonprofit agencies, we will mainly address revenue

enhancement, volunteer management, executive director succession and

professionalization of faith-based organizations (FBO). A case study of The Pittsburgh

Project (TPP) will help illustrate how small FBOs respond to emerging problems. Finally,

some suggestions to some possible problems we realized during our interview with TPP

Executive Director, Saleem Ghubril.

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Mapping Non-Profit Organizations in Social Services

Social service agencies provide food, shelter, daycare and assist people with

problems around domestic violence, immigration, AIDS and so on. Many agencies are

small and ill equipped to respond to accountability; are sensitive to government

regulations and funding; and yet, are vital because they serve the disadvantaged (poor,

minorities) and expand government assistance (HHS, HUD).

Social service agencies can be categorized into the informal (small, community-

based groups dependent on cash and in-kind donations), the traditional and professional

(Red Cross, Catholic Charities) and the recent (respondents to urgent social problems and

dependent on government aid). Though many depend on government aid for survival, not

all accept it because of religious or philosophical principles. Many agencies’ services

extend into other fields, but the largest are individual and family services.

Challenges and Opportunities

Various factors have provided challenges and opportunities to social service

agencies: women’s movements, deinstitutionalization of the mentally ill, elimination and

creation of government funding, welfare reform and, most dramatically, increased

competition from for-profit agencies. While employment in the social services sector

increased 134%, for-profit agencies made significant inroads into child daycare and

residential care.2 Accountability, evaluation, and outcome and performance evaluations to

funders and the public also pressure social service agencies.

Priorities for strengthening an agency’s ability to achieve its mission are

fundraising, financial management, staffing, new program development and increased

community development.3 Of social service agencies’ challenges and opportunities, we

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chose four: revenue enhancement, volunteer resources, professionalization of faith-based

organizations and executive director succession. We will first say something about faith-

based initiatives.

Faith-Based and Community Initiatives

FBOs also deal with another challenge/opportunity that secular-based social

service agencies do not – the newly established White House Faith-Based and

Community Initiatives (FBCI). These initiatives, created by the Bush Administration, and

subsequent acts passed by the House and Senate, do not allow social service agencies “to

discriminate against beneficiaries of services on the basis of faith, but [does allow them]

to discriminate in hiring and in selecting board members on the basis of religious faith.

They are not allowed to use federal grant or contract dollars to fund any ‘inherently

religious’ activity, and they must separate ‘in time or location’ services funded by direct

governmental aid from ‘inherently religious activities.’”4

Looking at an FBO’s bottom line, one understands why they are enticed by FBCI.

“40.6% of FBOs … reported that operating expenditures exceeded revenues whereas only

28% of secular agencies reported this one-time financial imbalance. Thus, in the most

recent year of the current economic downturn, FBOs seem to be more challenged than

their secular counterparts in balancing revenues and expenditures.”5

Although a lower proportion report success in receiving government funding in

comparison to their secular counterparts, it should be noted that secular agencies submit

“more applications for government funds and, therefore, a greater proportion … report

being both successful and unsuccessful in their individual grant applications.”6 FBOs,

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however, “plan to exert ‘much more effort’ or ‘somewhat more effort’ to seek

government grants or contracts in the next three years.”7

Though FBCI are relatively new, government funding to FBOs is not. Some states

have long accepted FBOs as government partners while others have not. Since 1996,

when the Welfare Reform Act took effect, changes have been incremental. “Relatively

few states have undertaken high-level administrative initiatives, and fewer still have

enacted legislation implementing Charitable Choice language. … States have reacted

more positively to the Bush administration’s efforts to raise the profile of FBO-provided

social services than to the 1996 legislation.”8 Pennsylvania has undertaken no significant

initiatives.

Smith and others acknowledge that while FBOs like Lutheran Social Services and

Catholic Charities have been receiving public funds for more than 100 years, others do

not want the funds because it may mean a change in their operations. “FBOs that do not

receive government funding are more inclined to report that faith has an impact on staff

training and client advice … [and] … that they use religious values in staff training and

… encourage clients to use spiritual values to change their behaviors.”9

The Pittsburgh Project

The Pittsburgh Project (TPP) is a 19-year-old, urban, neighborhood-based, Christian

community development organization that trains servant leaders and upholds the dignity

of vulnerable homeowners. TPP develops servant leaders through afterschool and

summer programs, urban service camps and retreats for Northside and other children and

young people throughout the country. TPP upholds the dignity of vulnerable homeowners

through free home repairs, visitations and links with social services and churches.

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Afterschool programs (BASIC and Reach Academies) for students in grades 1 –

12 emphasize improvement of academic performance, and provide cultural activities and

educational field trips. Program coordinators are certified educators. Teachers are trained,

caring adults. Student to staff ratios are about 10:1; lower when volunteer tutors assist.

Students receive 45 – 60 minutes of homework assistance and computer instruction.

Students grow in Christian discipleship, build relationships with students and adults, and

acquire conflict resolution skills through Bible study and life application discussions.

The most motivated and talented high school students who complete BASIC and

Reach are offered Leader-In-Training, a four-month job training process, after which they

take positions in ministry alongside staff. Training includes one-on-one mentoring, small

group Bible study and discussion, mission trips and leader workshops.

In the summer, teens perform volunteer labor for 130 in-need homeowners.

Projects include drywall, painting, roofing, pointing, plumbing, handicap construction

and cleaning. Homeowners must reside in Pittsburgh or a nearby borough, own and live

in their homes, and document income within 150% of federal poverty guidelines. Priority

is given to those over 60 and in poor health. Work and materials are free. Crews worked

on 900 homes in 35 neighborhoods since 1985.

TPP has one revenue-generating initiative – the Charles Street Café. It buys beans

from Costa Rican coffee growers. Its proceeds benefit the Project’s ministries.

TPP is located in the former Annunciation School and Church. A registered

501(c)3, TPP holds membership in Evangelical Council for Financial Accountability,

Evangelicals for Social Action and Christian Community Development Association. It is

managed by a 14-member board of directors and completes an annual independent audit.

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CEO Saleem Ghubril does not see himself as a service agency manager, but as a good

neighbor, having lived in Perry South since 1985.

Challenges and Opportunities Facing The Pittsburgh Project

Of the challenges and opportunities facing social service agencies, our interview

surfaced four that effect TPP: resource development, volunteer management,

professionalization of faith-based organizations and executive director succession.

Revenue Enhancement

Like any social service agency, TPP has struggled in the past few years. FY 2002

indicates the impact of 911, but in three of the four years shown, expenses exceeded

revenues. In addition, net assets decline by $338,861. We asked Ghubril how TPP plans

to deal with the current fiscal situation.

  1999 2000 2001 2002Contributions 569,440 905,703 833,025 677,805Noncash Contributions 0 19,642 10,711 15,850Program Service Revenue 395,258 440,581 456,317 498,452Interest 2,033 435 2,315 445Total Revenue 966,731 1,366,361 1,302,368 1,192,552Program Service Expenses 1,015,589 1,076,834 1,267,432 1,318,591Management 32,354 46,669 45,074 33,603Fundraising 51,568 122,465 57,016 99,678Total Expenses 1,099,511 1,245,968 1,369,522 1,451,872Excess/(Deficit) (132,780) 120,393 (67,154) (259,320)Net Assets beginning of year 770,264 637,484 757,877 690,723Net Assets end of year 637,484 757,877 690,723 431,403

1999 2000 2001 2002Current Ratio 13.7 16.2 14.4 2.1Days Cash 42 143 76 38Total Margin -13.7% 8.8% -5.0% -22.0%Operating Margin -10.6% 11.2% -2.4% -18.4%

Ghubril states that 35% of TPP’s revenues come from fees, service camps and the

café; 30% from foundations; 20% from individual donors, churches and directors. He

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plans to deal with the current deficit by increasing fees, decreasing TPP’s dependency on

philanthropy and involving the board in revenue enhancement.

Fees and Service Camps

Social service agencies, a fortiori FBOs, rely on contributions and program fees,

but unlike daycare and rehabilitation centers, TPP’s fees (program service revenue) come

from camps and retreats. “Many nonprofit agencies find it very difficult to raise much

revenue from client fees, because most clients are poor or disadvantaged,”10 as are TPP’s;

but camp fees come from churches located outside Perry South. Of nine weeklong camps

that accommodate 165 participants, eight are filled.

One Day Weekend Week (Sr. Hi) Week (Jr. Hi)$20 $75 $325 $235

Café

TPP made two forays into social ventures. A silkscreen business closed because it

lost money. The Charles Street Café serves gourmet coffee, baked goods and drinks. It

created a few jobs, pays a living wage and provides a service to the staff, volunteers and

the neighborhood. According to Ghubril, it will make a profit next year.

Foundations and Individual Donors

TPP’s 2002 Tax Return shows that 57% of its revenue is from individual donors,

churches and foundations. Ghubril states that 30% of TPP’s revenue comes from

foundations. He wants to rely less on foundations and more on the public. To develop a

wider donor base, he believes board members must initiate opportunities and events so

that he or they can invite people to become regular donors.

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We have several suggestions regarding TPP’s revenue enhancement. Ghubril’s

desire to increase the donor base through board initiatives is a straightforward approach

to TPP’s resource development. He admits that it is the board’s one weakness. He sees

donors as investors who have legitimate expectations. Donors expect to see a social

return on investment (youth leadership and improved grades and homes) and an

economic one (balanced budgets).

We suggest that TPP investigate how it could benefit from Bush’s FBCI. Ghubril

stated that TPP would not take government money if it were subversive to its mission. He

also recognizes that money to fix homes is not money to evangelize. FBCI may, however,

be an option especially with stagnant donations to United Way and other agencies over

the past decade and philanthropic institutions’ tighter restrictions on nonprofits.

Another suggestion is to form a strategic alliance with a business that could

provide materials for home repair. There is no current action on TPP’s part to address

this. To some, a strategic alliance is the NPO’s silver bullet. Strategic alliances, though

built on trust, do not always reach the integrative stage with the same success as

Timberland and City Year; however, they are worth investigating. A good start is having

the executive director and board study Austin’s The Collaborative Challenge. Though

filled with wisdom that comes with experience, we offer just two points of advice. First,

even if leaders share passion and inspiration to form a strategic alliance, the NPO must

“conduct a capabilities analysis to ensure that their competencies and resources match

their partners’ expectations … to avoid disappointment later.”11 Second, because the

leaders will deal with forces that pull apart the alliance, they must counter centrifugal

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pressures with centripetal forces “developed around a shared mission and vision to draw

the two organizations together.”12

Because alliances are built not on contracts, but experience and genuine affection,

they may take years to form.13 Most donors are indifferent about these alliances, but are

concerned the activity is consistent with or advances the organization’s mission14 Hence,

if TPP forms a strategic alliance, it should be around a particular project, like

neighborhood enhancement. In addition, if the alliance enhances TPP’s revenues, it

should still maintain foundation support, increase fees for summer programs and

encourage board members to seek new donors. The best method to increase revenue will

come by educating prospective donors about philanthropy. Nonprofits must educate

people so that they see their modest, systematic financial contributions as their

investment in a cause.15

We also suggest TPP examine if volunteers could complete the work of paid staff

members. (We answer this in the next section.) FBO employees are paid similar or lower

salaries and benefits than those at similar organizations.16 TPP staffers are not paid

exorbitant salaries, and Ghubril’s salary is modest for the work he performs.

Lastly, we suggest Ghubril market TPP’s intellectual property. What he has done

is nothing short of remarkable in remaking the community. Ghubril sees TPP not so

much as a neighborhood organization, but rather as a community of good neighbors. Of

the 14 people on its board, five are community residents. Ghubril himself has lived in the

neighborhood for 18 years. Much of TPP’s success can be accredited to Ghubril’s

dedication to TPP’s mission, his Christian faith and street-level management. He

continues to do two things that we found in Mulroy:

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“Spend time working in the target community face-to-face with residents; and support, empower, and learn from community workers. Community-based endeavors are intended to strengthen local neighborhoods and residents. Frontline workers … had the bottom-up perspective: the local knowledge derived from immersion in the neighborhood. They were not only serving clients but were key partners in building and implementing collaborative alliances in chaotic urban neighborhoods.”17

Other issues not discussed but noted include the infrastructure of TPP. Major

renovations or unexpected repairs would burden TPP. To address this likelihood, we

suggest a separate capital campaign to deal with the planned or unexpected.

Volunteer Management

Volunteers save a significant amount of money for any organization. A 2002

study of Pittsburgh congregations reveals, “57% do not anticipate having enough staff to

serve additional clients, and 67% do not expect to be able to raise more funds to serve

additional clients. The participation of volunteers is consequently critical for operating,

and continuing to operate such programs. It is thus not surprising that 68% of the

respondents report relying upon 20 or more volunteers.”18 It would be safe to surmise that

social service agencies that serve the poor rely heavily on volunteers.

Nearly half the nation’s population volunteers 4.2 hours per week. Volunteers

expect certain considerations from the organization, and if those expectations are not met,

they become dissatisfied. Volunteers do not receive a paycheck, but view pay in some

symbolic way. Therefore, volunteer administrators must provide symbolic support,

recognition and appreciation, take interest in the volunteer’s life, offer timely and helpful

feedback on their efforts, and provide a supportive network of other volunteers.19

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Although all of this underscores the need to hire a volunteer manager, only three

of five charities and one of three congregations with social service outreach activities

have a paid staff person. Among paid staff volunteer managers, one in three has not

received any training in volunteer management, and half spend less than 30% of their

time on volunteer coordination.

Volunteers make up the difference for the work undone by a paid staff. Secular

NPOs employ 19.3 full-time and 7.8 part-time staff. FBOs employ 28.9 full-time and

18.4 part-time staff.20 According to their 2002 Tax Return, TPP employs 47 individuals.

In our interview, Ghubril stated that TPP has 22 permanent paid staff members, 15 part-

time after-school staff and 40 summer staff.

Secular NPOs have 9.3 volunteers who give more than ten hours a week, 63.9

who give less than ten. FBOs have 34.3 who give more than ten hours, 141.4 who give

less than ten. Ghubril states that TPP has 120 volunteers, 15-20 each day, and 2000 in the

home repair program. It offers a 2½-hour training seminar for tutors, and a 2-hour

seminar for homeowner care.

Because social service agencies depend on volunteers to reduce costs, a volunteer

coordinator is essential. A paid volunteer coordinator “sends a powerful message to other

managers and employees regarding the significance and value organizational leadership

places on the volunteer component.”21 Among the duties are accountability for and

advocacy of the volunteer program, recruitment, publicity, administration, training,

management and recognition of volunteers.

Before Patti Ghubril became TPP’s Volunteer Coordinator, a position she has

held for the last six years, she volunteered as the Coordinator for two years. She now

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works 30 hours per week. She began as a volunteer youth worker in college and worked

as a Training Manager for a mid-West department store chain. She employs her

professional skills in designing TPP’s volunteer positions. Before TPP, Ghubril directed

children’s ministry at a suburban church, which meant she coordinated a large pool of

volunteers. She regularly attends workshops to update her work. Her budget is $3,500.

Ghubril recruits at college volunteer fairs and churches, and accepts high school

and college students required to do service hours. In addition, TPP attracts volunteers

1 Steven Rathgeb Smith, “Social Services” in The State of Nonprofit America, ed. Lester M. Salamon (Washington, D.C.: Brookings Institution Press, 2002), 149.2 Steven Rathgeb Smith, “Social Services” in The State of Nonprofit America, ed. Lester M. Salamon (Washington, D.C.: Brookings Institution Press, 2002), 157.3 Kevin Kearns, Chisung Park and Linda Yankoski, “Comparing Faith Based and Secular Human Service Corporations in Pittsburgh,” Tropman Report FBO Agency Study, 30, Table 40 http://www.forbesfunds.org4 http://www.pewforum.org/faith-based-initiatives5 Kearns, 8.6 Ibid., 9.7 Ibid.8 Mark Ragan, Lisa M. Montiel and David J. Wright, “Scanning the Policy Environment for Faith-Based Social Services in the United States: Results of a 50-State Study,” The Roundtable on Religion and Social Welfare Policy (Albany, NY: The Nelson A. Rockefeller Institute of Government, State University of New York, October 2003), 8.9 Kearns, 10.10 Smith, 172.11 James E. Austin, The Collaborative Challenge: How Nonprofits and Businesses Succeed Through Strategic Alliances (San Francisco: Jossey-Bass Publishers, 2000), 174, 89.12 Ibid., 6513 Mary M. Shaw, “Successful Collaboration Between the Nonprofit and Public Sectors,” Nonprofit Management and Leadership 14, no. 1 (Fall 2003): 11814 Robert D. Herman and Denise Rendina, “Donor Reactions to Commercial Activities of Nonprofit Organizations: An American Case Study,” Voluntas: International Journal of Voluntary and Nonprofit Organizations 12, no. 2 (2001): 166f15 Campos Market Research and Droz and Associates, “New Economy Entrepreneurs: Their Attitudes on Philanthropy,” Tropman Report 1, no. 4 (November 2002) http://www.forbesfunds.org.16 Kearns, 27, Tables 33 and 34.17 Elizabeth A. Mulroy, “Community as a Factor in Implementing Interorganizational Partnerships: Issues, Constraints, and Adaptions,” Nonprofit Management and Leadership 14, no. 1 (Fall 2003): 61.18 Greg S. Behr and Melanie DiPietro, “Social Services in Faith-Based Organizations: Pittsburgh Congregations and the Services They Provide,” Tropman Report 1, no. 7 (November 2002) http://www.forbesfunds.org.19 Steven M. Farmer and Donald B. Fedor, “Volunteer Participation and Withdrawal: A Psychological Contract Perspective on the Role of Expectations and Organizational Support,” Nonprofit Management and Leadership 9, no. 4 (Summer 1999): 362f.20 Kearns, 18, Table 10.21Jeffrey L. Brudney, “Volunteer Administration,” Understanding Nonprofit Organizations: Governance, Leadership, and Management. ed. J. Steven Ott. (Boulder, CO: Westview Press, 2001) 333.

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through Saleem Ghubril’s speaking engagements, TPP’s website, occasional media

coverage and by word of mouth. Over the past eight years (1996-2003), annual volunteer

hours for tutors increased from 600 to 4,004. Workday volunteer hours increased from

980 in 2000 to 1,240 in 2002. Special volunteers, e.g., day camp helpers, administration

and other projects, gave 195 hours in 2003.

TPP holds recognition celebrations at the end of each semester and will recognize

long-term volunteers on April 23. Ghubril does not take a ‘one size fits all’ approach to

recognizing volunteers. She looks for as many ways as possible to thank folks and

recognize their achievements. Volunteer feedback led to a monthly newsletter for tutors.

Ghubril complements the two-fold recommendation of developing a structure in

which adequate training programs improve volunteers’ abilities to complete tasks and

conveys a commitment to TPP’s mission, and assigns volunteers challenging work.22

Although TPP is handling well its need for volunteers who provide tutoring and

home-repair, we wondered if it would be feasible to cut expenses with fewer paid staff

members and more volunteers. From our studies, we concluded that such a move would

not save TPP much money and in the end prove to be detrimental.

Executive Director Succession

When we asked about his perception of the leadership body of TPP, Ghubril

seemed very confirmative and satisfied when he talked about the primary advantage of

the board of TPP—relationship. First, it refers to the close-knit relationship between

board members, board and executive director, and staff. Everyone in TPP is sharing and

committed to the same value and mission. Second, close relationship with the community

22 Irma Browne Jamison, “Turnover and Retention Among Volunteers in Human Service Agencies,” Review of Public Personnel Administration, 23, no. 2 (June 2003): 129.

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is another competitive advantage for TPP. While conducting their programs, they are not

thinking of themselves as professional service providers but good neighbors. And the

board of TPP is a good representative of the community, with 5 out of 14 board members

being from local community.

Another more important problem Ghubril mentioned about the management of

TPP is leadership succession, to be specific, the succession of Executive Director. For the

past 19 years, TPP has had only one Executive Director. As Ghubril said, the

organization just looks, smells and acts like him. To address this problem, Ghubril said

TPP is planning to have a new Executive Director by the year 2010. However, the

executive transition is not as not a simple matter at all. As Bradshaw Lynn writes, “The

success of the succession management process, as with other employee development

efforts, ultimately rests with commitment from top management.”23 As the only body

which has the authority to hire and fire executive director, the board of directors is the

leader of the whole transition process.

Allison used a more vivid analogy to describe this transition process as a process

of firing pottery. If it passes the heat test, it will become stronger, otherwise it will end up

broken. “If the board is prepared, has an appropriate composition in its membership and

supporting players, and uses a process that is well designed, the organization actually can

become stronger through the transition. It can emerge with renewed clarity of purpose

and an energized team poised for achieving success. Failure typically results in a poor

choice of a new leader and a fragmented, exhausted group of people.”24

23 Dahlia Bradshaw Lynn, “Succession Management Strategies in Public Sector Organizations,” Review of Public Personnel Administration 21, no. 2 (Summer 2001): 130.24 Michael Allison, “Into the Fire: Boards and Executive Transition,” Nonprofit Management & Leadership 12, no. 4 (Summer 2002): 341.

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Therefore, a close relationship could not be enough for an efficient board.

According to Kearns, besides accessibility and commitment to mission, desired

characteristics of board members also includes special talents and skills, constructive

problem solving, understanding the niche and leadership potential. However, “boards

generally have too little time, too little experience with nonprofit management principles,

too little expertise in the business of the organization (field of service), and too little skill

at governing as a group to be able to handle the governing role well.”25 To be the real

protector of the organization, the board should pay more attention to its own capacity

building. In this case, the board should be well prepared and take a strategic method to go

through the process of identifying appropriate candidate, competency development and

orientation of new position.

Professionalization of FBOs

As we mentioned before, most of NPOs in social service fields are small size

organizations engaged in service that help the disadvantaged groups. People believe that

work in this field needs no special skill and the key for the management of social service

organizations is just good intention. For FBOs especially, religious value will be the most

important factor for successful management. However, in recent years, the topic of

professionalization of NPOs has been a hot topic. As the external and internal

environment for NPOs development changes dramatically, it is believed that good

intention is no longer enough and professionalism is a necessary concept to be accepted.

Professionalization in human resource management and technology application are the

two main aspects.

25 J. Masaoka and M. Allison, “Why Boards Don’t Govern,” Taking Trusteeship Seriously. Ed. R Turner. Indianapolis: Indiana University Center on Philanthropy, 1995.

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During the interview, we were impressed by TPP employees’ commitment to its

mission. As Ghubril said, TPP will not do anything that jeopardizes its mission. He

acknowledged the importance to have a more efficient and measurable outcome with the

prerequisite that the soul of the mission should not be lost. We cannot deny the fact that

the positive attitude toward its mission has some relationship with employee’s

satisfaction and intention to remain with the organization. At the same time, however, as

the external competition become fiercer, can mission explain everything?

“Dissatisfaction with pay tended to override employee’s mission attachment as

explanation of why they may leave the organization. The implication is that mission

might be salient in attracting employees but less effective in retaining them.”26 According

to the result of an anonymous survey distributed to 991 employees of a non-profit youth

and recreation services organization with sixteen geographically dispersed locations,

mission attachment appears to be a valid consideration for younger, part-time employees,

but the intrinsic motivations run thin as full-time employees earn salaries that appear

noncompetitive to other organizations. As for TPP, although it is not experiencing a crisis

in attracting and retaining, it will be beneficial if more training and development for

human resource management is taken. While relying on mission attachment as a

management tool, TPP should pay attention to other factors for job satisfaction as well.

Besides mission attachment and job satisfaction, technology is also an important

tool for successful management. With an increased of demand for NPO services in the

social, economic and political sectors, modern technology, especially electronic

networks, holds the promise of innovation. Information and communication technologies

26 William A. Brown and Carlton F. Yoshioka, “Mission Attachment and Satisfaction as Factors in Employee Retention,” Nonprofit Management & Leadership 14, no.1 (Fall 2003): 5.

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(ICTs) improve administrative and operational efficiency. More importantly, ICTs

reshape the organizational structure internally, reconfigure relationships across networks

of organizations, and strengthen relationships with individual citizens. It is not only the

scale and scope of information processing that the technologies permit that open up these

opportunities. The technologies also offer new dimensions in knowledge management

and organizational learning.27 Electronic networks are not simply vehicles for the storage

or communication of information, but powerful and sophisticated information

processors.”28

TPP seems to attach more importance to personal relationship than electronic

communication. It is not practical for a small-size NPO to invest a large amount of

money in electronic facility installation; however, it is important to realize that

information technology is meaningful in order to improve management efficiency. For

example, Ghubril said that TPP employees were hungry for training and further study.

The application of electronic network might provide them a good training method and

improve organizational learning.

Conclusion

Social service agencies will continue to provide significant service to our

communities throughout the nation and world. Though most will never be as large as the

Red Cross or Catholic Charities, these smaller agencies are as true to their mission as are

their larger brothers and sisters. Size notwithstanding, each will continue to respond to

27 M. Castells, The Rise of the Network Society (Oxford, England: Blackwell, 1996); J.B. Quinn, The Intelligent Enterpirse (New York: Free Press, 1992).28 I. McLoughlin, Creative Technological Change: The Shaping of Technology and Organizations (New York: Routledge, 1999)

Addendum Endnotes

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people’s needs in ways that the business and governmental sectors cannot. For that

reason, social service agencies need and deserve our support.

Faith-Based Community Initiatives are new to many social service agencies that

are faith-based. It has been shown, however, that some FBOs have had a steady

partnership with federal and state agencies. Though some, including Smith, are wary of

FBOs accepting money from the government, we suggest that FBOs at least (thoroughly)

examine the possibility that such funding can further their mission and ease their

financial situation. If, however, acceptance means mission compromise, we suggest that

they not chase the money, for in the end, the agency’s conscience will rest.

As Smith has shown, social service agencies face stiff competition from other

NPOs and for-profit businesses. They must diversify ways of increasing revenue and

creating community wealth (beyond money) while they continue to rely upon private

donors, foundations and fees for support. Social service agencies will always need

volunteers. Most importantly, social service agencies need and deserve our support.

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Addendum

Interview Protocol for Saleem Ghubril, Executive Director, The Pittsburgh Project

March 2, 2004

1. The Pittsburgh Project (TPP) is a small non-profit organization (NPO) engaged in community development, servant leadership, urban and youth ministry, etc. “Social movements have created demands for new or expanded services such as child daycare, rape crisis centers, domestic violence programs, and AIDS services. Profound demographic changes … have produced widespread demand for social services to cope with these changes.”29 As the executive director of TPP, how would you address the new social problems that stem from continuous social movements and demographic changes? What are the greatest managerial challenges for you? When compared to your colleagues in other NPOs, FPOs (for-profit organizations) or government agencies, you and your staff members are not overpaid. How do you compete with those big, traditional NPOs and those for-profit organizations that serve in the similar sector?

2. TPP depends heavily on volunteers and, according to IRS filings, accepts no governmental assistance (?). If you do not seek government assistance, would you explain your philosophical and theological reasons for not doing so? How would you maintain financial viability without the program services revenue ($456,317 in 2001)?

3. Today, community, corporate, family and individual donors are placing financial accountability and performance evaluations on those NPOs seeking resources. In addition to financial audits and staff reports, what other measures are in operation at TPP to demonstrate financial accountability and performance evaluations to donors? To what degree are TPP’s Board members involved in the implementation of these measures?

4. Welfare reform legislation of 1996 included a charitable choice amendment. Subsequent to that, “President Bush proposed a faith-based and community initiative that would expand the use of faith-based organizations far beyond the welfare-related services targeted by the charitable choice amendment.”30 Will the policies provide more or fewer opportunities to improve development at TPP? If more, will that cause any negative influence on your autonomy? How will you avoid that?

5. Coupled with that 1996 legislation is the fact that the majority of the people served by TPP are poor or disadvantaged. Though TPP serves the poor and

29

? Smith, 150.30 Smith, 169.

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employs residents of the community, what approach do you employ to serve as an advocate for policy change without losing any of your autonomy? In accepting any donations or major grants, in what ways have you been restricted or felt a loss of autonomy? Who are those individuals (staff or board members) primarily responsible for such advocacy?

6. You are quoted as saying that Councilwoman Barbara Burns’ legislation to place modest restrictions on charitable activity in residential neighborhoods is “overkill and very reactive” (Brian O’Neill, “Churches Should Minister to their Neighbors, Too,” PG, 7/18/2002). Why do believe it is necessary to live in the neighborhood where you serve?

7. One of the more difficult tasks that an Executive Manager faces is staffing the NPO with the proper people. What is the status of human resources at TPP? What measures have you taken to obtain, maintain and retain the best staff possible? What keeps employees? Why do any leave? How many have left for work that is more profitable?

8. In 2001, you launched the Charles Street Café and the Charles Street Screenworks. What financial contributions have these two components added to your income? Beyond any financial contribution, tell us what other benefit they have? Do you feel any community pressure from other area FPOs who question an NPO running a café and screen-printing business? What is your understanding of the professionalizaiton of NPOs?

9. An efficient board is of great importance for the successful operation of a NPO. What are the procedures and criteria of TPP to recruit new board members? Is personal relationship an important factor? How does TPP attract board members who are committed to its mission, have adequate oversight and monitoring of the performance, and enough access to resources (funds, information, social network, special skills and etc)? Sitting on other boards, e.g., Pittsburgh Partnership for Neighborhood Development, do you ever find yourself in conflicting situations?

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Endnotes

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