United Way moves Agenda forward

Over the past three years, United Way for Southeastern Michigan has been changing the way it does business to meet the changing needs of this region. As the economy has changed, issues facing families have become greater in number and more acute. To tackle these issues, we developed the Agenda for Change, which is based on community input and research and focuses on making lasting progress in three areas: education, income and basic needs.

On June 5, 2008, the board of directors reached a critical milestone on the road to the Agenda for Change by approving the selection of United Way’s new nonprofit partners and affiliates for the 2008-2011 funding cycle.

During the grant application process, 191 agencies and 91 collaboratives submitted 361 proposals to United Way with a total funding request of more than $92 million. With $59 million raised in the last campaign, we had a responsibility to our donors and the community to select the very best partners and programs to advance the Agenda for Change.

To do this, we enlisted the help of 130 volunteers from the nonprofit, business, labor, faith-based, civic, government and education communities who served on 23 teams to carefully review each proposal. When making decisions, volunteers considered five principles: the potential for maximum impact; strategic focus of the program; measurability of results; whether the program narrows disparities; and its potential for collaboration or other linkages.

These funding changes and considerations reflect a fundamental shift in United Way’s purpose, moving from acting simply as a fundraiser to becoming an organization focused on solving complex social problems in our community. We have had to be courageous in our decisions, but we believe these are the right decisions to achieve measurable and lasting impact in our three focus areas.

The new funding model will be implemented July 1. Historical United Way partners that did not move forward in the new model are able to apply for transitional funding and those agencies that remain in good standing with us are eligible to receive designations, regardless of the outcomes of the funding decisions.

Before these decisions, United Way had already been moving toward the Agenda for Change and several initiatives are already underway, including Operation ABC, which aims to help children read by third grade, and the Earned Income Tax Credit Initiative. This initiative is the work of the Regional Asset Building Coalition, a collaborative made up of United Way and other partners to help families become more financially stable.

To learn more about the Agenda for Change, log on to www.uwsem.org/agendaforchange.

According to a recent national survey Ready to Lead? Next Generation Leaders Speak Out^[1]: "The charitable sector will be increasingly drawn into an all-out “war for talent” with the government and business sectors."^[2] The authors succinctly describe a well documented dilemma facing the nonprofit sector with this question: “As the Baby Boomers retire from their leadership positions over the coming decades and the labor market grows ever tighter, how will the nonprofit sector attract the most committed and talented leaders? What would draw Generation X’ers and Generation Y’ers to positions that typically offer long hours for short pay?”

The Ready to Lead survey questioned 6,000 people and is the largest national survey to-date of emerging nonprofit leaders. It sought feedback about the disadvantages and benefits of heading a nonprofit organization. Did these mostly younger respondents aspire to become executive directors one day? If they didn’t, what might change their minds? What drew them to charitable work in the first place?

The overview of responses and recommendations, presented below, provide for a basis for understanding what is behind the dilemma of a shortage of trained nonprofit leaders, and provides strategies for nonprofit stakeholders to begin to address it.

The responses from this mostly younger group present a mix of barriers and opportunities:

• A significant number of younger people are willing, if not yet quite ready, to lead
• They are generally well-educated, talented, and committed
• Working in the nonprofit sector is meaningful and satisfying
• Challenges faced by current nonprofit leaders cause concern, including: lack of adequate compensation, burnout, overwhelming fundraising responsibilities and failure to maintain a healthy work-life balance.
• Close to two-thirds report having financial qualms about committing to nonprofit careers
• They feel a lack of support and mentorship from current nonprofit executives
• Nonprofit salaries and life-long earning potential are barriers to executive leadership
• The common job description of a nonprofit executive is unappealing to many next generation leaders
• Many stated they could not see doing any other kind of work, notwithstanding all the barriers and high expectations.

The Ready to Lead study presents recommendations for supporting individuals who seek to lead a nonprofit organization. Some of the highlights are:

Recommendations for Action by Current Executive Directors

• Replace dated power structures that alienate emerging leadership talent in their organizations
• Help nonprofit staff develop external networks needed to prepare for executive leadership
• Be a good role model. Next generation leaders are heavily influenced what they see in their current executives' work and what they see is often negative
• Engage in succession planning for your position
• Pay reasonable salaries and provide benefits
• Recognize generational differences and understand that such differences with younger staff don’t reflect a lack of passion or commitment

Recommendations for Action by Next Generation Leaders

• Take control of your career; it is your responsibility
• Develop broad management expertise
• Join a board as it's an ideal way to prepare for nonprofit leadership
• Find a mentor to help you learn how to manage a nonprofit career
• Work with a coach to help you build your skills and develop a personal strategy
• Recognize and respect generational differences; learn to work across generations

Recommendations for Action by Boards of Directors

• Pay reasonable salaries and benefits to address the financial anxiety about committing to nonprofit work
• Ensure robust leadership beyond the executive director
• When hiring new staff work to connect with the diverse pools of emerging nonprofit leaders
• Recruit young leaders to serve with you on the board

Recommendations for Action by Nonprofit Training and Leadership

• Capacity-building organizations should upgrade training and programming to provide more relevant and fresh options
• Address “hard” management skills specifically needed by today’s nonprofit managers
• Help next generation leaders build their external networks

Recommendations for Action by Funders

• Invest in leadership programs directly or support scholarships for grantees
• Avoid grant-making behaviors that contribute to the problem such as not funding operational or institutional capital or under invest in human capital
• Provide flexible support and allow for higher overhead
• Help nonprofits transform themselves into organizations that next generation leaders want to lead

This information from the Ready to Lead study is a step in the direction of helping nonprofit stakeholders address the shortfall of trained nonprofit leaders. As a leader yourself, consider: What can you do right now to encourage and support persons to be the next leaders of our nonprofit organizations in southeast Michigan?

About the Author: Professor Jerry Lindman, J.D., is Director of the Center for Nonprofit Management at Lawrence Technological University, a program of the Graduate College of Management offering graduate education and community outreach programming focused on advancing professional management at charitable nonprofit organizations. For more information, email lindman@ltu.edu

[1] CompassPoint Nonprofit Group, Ready to Lead? Next Generation Leaders Speak Out, (2007), Meyer Foundation, The Annie E. Casey Foundation and Idealist.org. Retrieved 6/13/08.

[2] Thomas J. Tierney, The Nonprofit Sector’s Leadership Deficit (The Bridgespan Group, 2006) ; Elizabeth Chambers et al., The War for Talent, The McKinsey Quarterly, 3 (1998): 44-57.

Volunteer Spotlight
Agenda for Change volunteer reflections

United Way for Southeastern Michigan recently completed selection of new agency partners for the funding cycle 2008-2011. These partnerships represent the best of the best programs we could have selected to help us fulfill our mission of creating lasting, measurable results through our Agenda for Change and focus on education, income and basic needs.

Last year, we issued a request for proposals (RFPs) and subsequently received more than 360 responses, from 199 agencies and 91 collaboratives across southeast Michigan who were interested in working with us. The process of evaluating proposals and considering future partners for our Agenda work took a tremendous amount of effort on the part of United Way staff and over 130 volunteers representing the nonprofit, business, labor, faith-based, education and government sectors, among others, who served on 23 review committees.

Approximately 15-20 hours were invested in reviewing each proposal, and we used a multi-tier review process to ensure proper checks and balances were in place and made sure we communicated early and often with agencies engaged in the process each step of the way. This monumental project could not have been executed effectively without the time and talent contributed by dozens of dedicated supporters -- some of whom volunteered to share reflections on takeaways they experienced while participating in the review process. Their comments follow.

Nancy Morelli, Community Relations Representative
DTE Energy
and DTE's United Way Campaign Coordinator

When I was invited to participate in the request for proposals process, I did it to better understand how critical issues were to be addressed and what the expectations will be moving forward. Clearly, the model used over the last several years is no longer working.

What I found interesting about the proposals is how many of them referred to models and outcomes with little or no supporting documentation. This in itself led me to believe that while this was a painful process, it is one that needed to be undertaken.

Over the next several weeks, I expect questions about the United Way process and decisions. In this region however, no one can argue a 40 percent dropout rate. No one can argue the Tsunami of financial instability, and certainly no one can argue the need to keep children and seniors healthy. So, the answers are simple, there is a lot of strategic work that needs to be done.

Volunteers, professionals and educators carefully reviewed hundreds of proposals in a quest to best meet the needs of our communities and help United Way achieve lasting change. And while sometimes uncertain, I believe change is good. It took a lot of time, it took a lot of hard work (and even a few lively discussions), but I’ve come away with a clearer understanding of the direction and purpose of the “new” United Way.

I.J. Campbell
Community Development Administrator
City of Roseville
and United Way for Southeastern Michigan Board Member

Mothers often describe childbirth as the most painful experience of their lives, and at the same time, as the most beautiful and rewarding experience they will ever have.

Looking back at the last six months of the partnership review process, I can see some similarities between it and childbirth. The first task of reviewing tens of requests for proposals was daunting at the least -- a painful addition to our already stressful schedules. Now, with a proposal of partnership commitments completed and presented to the full UWSEM board, all those meetings (and pizza meals we endured while working) are but a memory.

We have instead the feeling of ownership and pride in our individual contributions to a United Way-generated outcome that will steer progress and benefit our communities for years to come. Based on my personal observations, I can say that the partnership review process was open, transparent and equitable. We have the structure in place to bridge the gap between those most in need and those with the best available resources, delivery systems and alignment with the Agenda for Change.

Freda Giblin, Ph.D., M.B.A.
Director of Inter-Institutional Initiatives
Office of the Vice President for Research
Wayne State University
and RFP United Way Review Process Volunteer

I was honored to be invited by United Way to participate as a volunteer in the RFP process. I was involved in the funding recommendations related to one of United Way's Agenda for Change focus areas. Having been a volunteer with the organization previously, I was well aware of the tremendous work and range of services that United Way-supported agencies provide to those in need.

Participating in the funding recommendations seemed to be a very important civic responsibility. During our committee meeting, we spent quite a bit of time on each proposal and discussed (and often debated) the objective merits. We paid attention to all of the relevant major issues including whether the project was realistic, need was well-documented, the requests were reasonable, the outcomes and evaluation clear, and whether the agency collaborated with others so as not to duplicate services -- but to enhance services. When improvements were proposed, we also considered whether the agency specified how this was to occur.

During our meeting with the other committee chairs participating in the process, in which the recommendations were finalized, I was glad to see that United Way staff had input to contribute as well. They have a depth of knowledge relative to each agency's strengths and weaknesses, as well as a solid grasp of the services needed throughout southeastern Michigan.

All in all, I would say it was a good process that incorporated input from the volunteer committees as well as United Way staff. It's unfortunate that there isn't enough funding to support all the excellent proposals submitted, but I think the process went well.

Michelle Pugh
Chrysler LLC Fleet Remarketing
and RFP United Way Review Process Volunteer

I was honored to participate in the United Way for Southeastern Michigan's 2008 request for funding process, and found it to be a very rewarding and educational experience. Not only did we benefit from the opportunity to learn about the efforts of numerous local agencies to empower and assist our neighbors, we also learned quite a bit while working as a team by studying and debating the merits of the funding requests and the expected impact on the community in improving delivery of services to ensure more residents have their basic needs met. It was very enlightening to see exactly how and where the dollars we donate to United Way are spent.

A former social worker, I know firsthand how important United Way-funded programs are for the children and families who benefit from their services. Now being on the corporate side, it is wonderful to be a part of an organization that can funnel support to these service providers. I am constantly amazed by the generosity and compassion demonstrated by Chrysler and its employees. I feel both fortunate and proud to work for a company that not only makes great vehicles but also is a great supporter of the United Way and its Agenda for Change.

Upcoming Events

Leadership Next wants to increase home ownership rates across our region. We know that buying a starter home (or even a dream home) can be overwhelming, and many are often hesitant to do it, even though a home is one of the best financial assets you can have. Now through October, LNext is partnering with City Living Detroit, Detroit Young Professionals, and Preservation Wayne for the Michigan City Home Toolkit, a monthly tour of homes and neighborhoods in Detroit that are ripe for new homeowners.

On July 27th, we will host our second tour, through Grandmont/Rosedale, a vibrant neighborhood on Detroit's west side. The event is free, but space is limited. To register, click here or e-mail leadershipnext@LiveUnitedSEM.org with your questions.

Some of the services offered during the tour will include:

• Referrals to home ownership workshops
• Learning how to take advantage of home-buying incentives like Neighborhood Enterprise Zone property tax discounts, historic tax credits, and more
• A Q & A with mortgage and real estate professionals as well as renovation contractors
• An opportunity to talk to home owners about their experiences living in Detroit
• Networking with other professional who believe in the opportunities that the city of Detroit has to offer

MI City Home Toolkit is a six-part series that launched June 14 and runs through October. If you've considered moving to the city, but aren't sure where to start, these tours are for you. Reserve your spot today!

Kurt's Corner
Birth and death trends serve as a mirror of state and region’s migration and aging trends

The provisional birth and death numbers recently released by Michigan's Department of Community Health show the effects of the demographic shifts taking place across the state and in Southeast Michigan.

While there are individual exceptions to each trend, the overall pattern that leads to a decrease in births is made up of three factors: out-migration of younger residents, contributing to decreasing numbers of women in their child-bearing years (15-44 years); aging of the population in general, contributing to both the loss of women and increasing numbers of deaths; and finally a move toward delaying marriage and childbirth, resulting in smaller families and often a choice of not having children at all.

Figure 1 illustrates the general trend of decreasing births (with minor exceptions) that has occurred in the state since the 1990 high of 153,080. The newly released provisional numbers for 2007 show the lowest annual birth total over the 18-year period - 123,383. This decrease of almost 50,000 births equates to a drop of 19.4 percent.

Figure 1. Births in Michigan, 1990 - 2007

The number of deaths in the state has shown a great deal more year-to-year fluctuations than have births (Figure 2). 2007's total of 86,843 represents the fifth highest total since 1990, and represents a 10.2 percent increase over 1990's total of 78,501. The general aging of the population, spurred by the baby boomer generation, whose oldest members began to hit 62 years of age in 2008, will no doubt begin to drive a pattern of increasing deaths going forward. Many counties in the state, particularly in the Upper Peninsula and northern Lower Peninsula, have been experiencing negative natural increase, as their death numbers are exceeding their births.

Natural increase is one of the demographic factors that affect an area's population. When natural increase is positive (births exceed deaths) the population grows. When natural increase is a negative (deaths exceed births) the population declines. In 1990, Michigan's births exceeded deaths by 74,579. Provisional numbers for 2007 result in a natural increase value that has declined to just 36,900. This 50.5 percent drop in population growth due to natural increase, coupled with the recently increasing rate of out-migration, points toward continued population losses for Michigan in the next several years.

Figure 2. Deaths in Michigan, 1990 - 2007

Southeast Michigan Trends
Macomb County experienced the greatest change between 2006 and 2007, as a result of a significant decrease in births (from 10,128 to 8,546) and a slight increase in deaths. The population growth due to natural increase (births - deaths) has fallen from a high of 4,783 in 1990 to a low of 1,074 in 2007.

Of all the counties in Southeast Michigan, Macomb County has the highest median age, and share of the population 65 years and over. Thus one would expect a gradually increasing number of deaths. The Macomb County Planning Commission is making an effort to get ahead of the curve by engaging in a very innovative and much needed effort to track the aging of the population and prepare its community leaders for the housing, service and tax effects of this trend. As for births, Macomb County had managed, due to the heavy in-migration of younger families, to stem the demographic tide of decreasing births. It appears, however, that the heavy losses in the manufacturing sector have resulted in a reversal of the migration trend and births have taken a large hit.

Figure 3. Births, Deaths and Natural Increase in Macomb County, 1990 - 2007

Oakland County served as the exception to the rule as its recent trend of decreasing births was actually reversed in 2007. The number of births increased from 14,387 in 2006 to 14,968 in 2007. Nevertheless, the 2007 total was still 12 percent below the high point reached in 1990, when the county experienced 17,008 births. It is not possible to know where the birth increases are taking place until the final numbers come in from the state which delineate births and deaths by community. The 600-birth increase was offset to some degree by an increase in deaths, from 9,068 in 2006 to 9,259 in 2007. The result was a slight growth in natural increase, which was still 38.7 percent below that of 1990.

Figure 4. Births, Deaths and Natural Increase in Oakland County, 1990 - 2007

The 2007 provisional estimates released by the state only go to the county level, so Wayne County must be looked at in its entirety, rather than as two components - Detroit and Out-Wayne. Trends up through 2006 demonstrate the effect of Detroit's out-migration, coupled with decreases in teen births. 2006 births in Detroit represented their lowest level since 1990 - 13,016 vs. 24,129 - a decrease of 46 percent. While 2006 deaths showed a slight up tick from 2005, they still were 25 percent below the high that also occurred in 1990. Out-Wayne County experienced an increase in births and a decrease in deaths between 2005 and 2006. When compared with 1990 however, births were down by 13 percent while deaths were up by 2 percent.

Now let's look at the 2007 data for Wayne County as a whole. Births fell from 27,383 in 2006 to 25,611 in 2007, representing a decrease of 37 percent since 1990. While it is anticipated that Detroit will once again experience a decrease, it is unknown what share of the overall decrease that will represent. Deaths in Wayne County dropped slightly from 2006 - 2007 (18,576 and 18,486). Taken together, births and deaths resulted in a drop of 19 percent in natural increase, from 8,807 in 2006 to 7,125 in 2007. This trend, coupled with the continuing large out-migration, signals a continuing loss of population in the county.

Figure 5. Births, Deaths and Natural Increase in Wayne County, 1990 - 2007

The basis of demographic change in any area derives from the interplay of vital statistics (births and deaths) and migration/immigration patterns. In order to plan for schools, health care, housing and services, we must pay close attention to these factors.

United Way's Research Department will continue to monitor national, regional and local trends across the wide expanse of demographic, socioeconomic, economic and housing issues. Not only will this help to inform our Agenda work and track outcomes, but it will also allow United Way to assist our grantees tell their stories and further support the efforts of the region's civic and foundation communities as they strive to improve the quality of life for all residents in southeast Michigan.

Take Action Now
Win $2,500 for United Way!

United Way for Southeastern Michigan is taking part in a national United Way Facebook Cause Challenge and we need your help to win! Between now and June 27, the Facebook Cause with the most members wins $2,500 for their local United Way's young adult engagement programs. This includes implementing strategies that reach out to college students and other young adults to get them involved with United Way.

Challenge Began
June 21 12 a.m.

Challenge Ends
June 28 11:59pm

Who can participate?
Anyone with a Facebook account. The Facebook Cause is a special program that allow nonprofits to keep in touch with members of the cause as well as raise money. You can join as many causes as you like, but you can only join once per cause. If you don't have a Facebook account, it's time to get on the bandwagon! Simply log on to www.facebook.com and follow the instructions to set up a profile. In addition to keeping up with United Way and other nonprofits close to your heart, Facebook is a great way to network with friends and family, as well as your kids!

Help us win $2,500!
Join the United Way for Southeastern Michigan Cause now:
10,000 Strong for ASB Detroit 2009!