If communities are like stools, then the three legs holding them up are businesses, government and nonprofits. So believes Ann Williamson, the new president and CEO of the Louisiana Association of Nonprofit Organizations.
Appointed in May, the former Secretary of the Department of Social Services takes over as nonprofits face an uncertain stock market and a shrinking state budget, while their responsibility to deliver community services continues. Williamson’s objective as LANO’s new leader is to encourage more innovation, collaboration and accountability while also building LANO’s brand as the state nonprofit trade association. The 1,000-member organization has an annual budget of $2.7 million and a staff of 27 in Shreveport, New Orleans and LANO’s headquarters in Baton Rouge.
“The nonprofit sector has the responsibility and the opportunity to clearly define the distinct purpose and unique value that it brings to the community,” she says.
Williamson began her career at LANO as assistant to founding president and CEO Melissa Flournoy when the organization launched in 1999. After serving as a policy analyst under Gov. Mike Foster, Williamson served as an undersecretary in the Department of Social Services. She rose quickly and was appointed to secretary by Gov. Kathleen Blanco. Gov. Bobby Jindal asked her to remain as the department’s leader; she resigned in September 2008 after scrutiny over food stamp distribution following Hurricane Gustav.
Williamson maintains a deep passion for the work of DSS, and believes she and her team made significant progress in bringing a preventative approach to chronic social problems such as child abuse. As LANO’s new chief, she wants to see more partnerships and sustainability in the sector. Gerri Hobdy, the Baton Rouge Area Foundation’s director of strategic partnerships, credits Williamson for already establishing a progressive vision.
“If we’re going to move the community forward, we need to have those nonprofit experts at the table,” Hobdy says. “We see a lot of good signs, and a lot of it has to do with Ann Williamson and her leadership.”
While nonprofits fight the perception of being an extension of state government, they occupy a large part of the U.S. economy. According to the Urban Institute’s National Center for Charitable Statistics, public charities reported more than $1.4 trillion in total revenues and almost $1.3 trillion in total expenses during 2007. In Louisiana, there are nearly 11,500 public charities holding $14.3 billion in assets, according to NCCS. More than half of those nonprofits are considered human services organizations.
Of those 11,500 charities, only about 3,500 file Form 990, a federal tax procedure required of groups with more than $25,000 in gross receipts. The remaining charities in Louisiana pull in less than $25,000 a year, suggesting a pattern of small nonprofits tackling mammoth community problems. The trend has encouraged many nonprofit leaders nationwide to trumpet collaboration and partnerships between groups, particularly now as the funding pie gets smaller.
“Every good intention isn’t meant to be a nonprofit organization,” she says. “We can increase strength if we’re willing to be honest about where we’re duplicative and find opportunities for consolidation.”
Hobdy agrees. She says the community benefits when similarly focused nonprofits work jointly. She points to the Baton Rouge Literacy Coalition as a new approach to a social problem that has had a longtime chokehold on the city. Against the backdrop of a 20% illiteracy rate among parish residents, the coalition was founded in 2005 by the Baton Rouge Rotary to establish common goals and improve service delivery among literacy stakeholders.
“When a group of organizations is accountable,” Hobdy says, “there’s a better chance of real change.”
Literacy Coalition Executive Director Debbie O’Connor says coalition stakeholders include the nonprofits that tutor adults directly, the East Baton Rouge Parish School System adult education program and other organizations. The coalition meets monthly to measure progress, network, and review research and best practices. They often train together, and they have applied for funding jointly to increase their teaching capacity.
“There’s no room for competition in literacy,” she says. “The problem is just too big.”
Williamson’s clarion call for more collaboration is joined by her push for innovation, particularly in fund development. Historically, many nonprofits have been so busy raising funds to provide direct service to their customers they lost sight of how to build a healthy operation. Ideally, she says, nonprofits should work to build endowments, they might own instead of rent and they should invest in staff training to ensure strong management.
“The sector does not have a deep history of cultivating unrestricted funds,” she says. “It’s absolutely been about the service delivery and not about overhead and staff development. Yet, these are things that can ensure sustainability.”
Williamson also hopes to help expand the culture of social enterprise—the practice of nonprofits employing entrepreneurial ventures to build revenue. A few years ago, LANO began providing social enterprise technical assistance, and Williamson hopes to expand it.
“The fact of the matter is, there is a market opportunity to avail a larger population to the benefits of social enterprise,” she says.
With the market in flux, donors wary and the state facing cutbacks, LANO launched a fiscal health survey earlier this year to benchmark the impact on nonprofits. Results were published last month. One of the key findings was that 80% of nonprofits saw the need for their services increasing in 2010 despite shrinking budgets. Furthermore, most were actively weighing how to adjust to their forthcoming shortfalls. Nearly 44% plan to cut overhead, and more than 30% will cut staff training. In keeping with Williamson’s goals, almost 41% plan to collaborate more.
Williamson also plans to help LANO continue its own growth by establishing an endowment and an additional office along the 10/12 corridor.
“We want to improve our brand as a unique and necessary organization that adds value and relevance,” she says. “Especially now, as many nonprofits face cutbacks, LANO is there to continue to provide staff training and advocacy to help nonprofits build stability.”
