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Statewide Association of Nonprofit Organizations (SANO) provides capacitybuilding assistance to small and mid-sized nonprofits. Division of Youth and Family
Services (DYFS) provides around 40% of fund for this purpose. Through this partnership
with DYFS, SANO has gained significance among nonprofits and reputation with private
funders. The new executive director of SANO has found that the organization, which was
apparently stable, had perpetual fiscal problems, which he was supposed to fix. But the
board of directors is not interested in the financial matters of the organization. The board
does not approve any entrepreneurship, so SANO has been left to depend on traditional
funding sources, such as foundations and especially DYFS. This fact has made SANO
largely dependent upon DYFS, which provides 40% of the budget of SANO. Provided
the fact that SANO is heavily dependent upon DYFS, the latter is converting the nature of
symbiotic relationship into parasitism. In the middle of the financial year SANO was
informed that under the same contract, with the same amount of fund, it is obliged to
provide training to DYFS personnel and to complete a previous project which, according
to DYFS, was left incomplete.
Analyzing the case following issues come to fore:
1.
2.
3.
DYFS.
SANOs deliberate incognizance of the issue of developing this dependence
4.
over time.
The informal unofficiated nature of relationship with DYFS, which has left an
ambiguity on rules, and principles of mutual relationship. Tony, the board
president and Dino, the ex-director of DYFS, while interacting with DYFS,
5.
6.
of directors.
A change in the attitude of DYFS, unilaterally changing the contract in the
middle of the year to include direct service to DYFS and the completion of a
left over project without any further funding for the new services.
SANO has been left in a dilemma, whether it should compromise on its
7.
9.
affect its rapport with clients and funders, and may harm its financial health.
Acquiescence to DYFS may resonate its determination to enhance the
parasitic relationship.
1.
Jerry should not go for an unwise proactive option. He should accept the
two additional components of the contract. But at the same time he should
find resources to fulfill his previous commitments with SANOs client
organizations. The first step to find the resources should be to get an
additional allocation from DYFS through negotiations. It would have two
pronged effect: firstly, DYFS would reveal upon DYFS that SANO is not
easy to acquiesce to any unfair effort of subdual; secondly, SANO would
explore the possibility of the approving or disapproving of its request for
additional funds, which would determine its future line of action. In case it
could not get additional funds, SANO should turn toward other resources
2.
3.
granted. The board never set to consider other options for fund raising.
Such symbiotic relationship not only compromises the integrity of the
organization but also it may affect those who are the beneficiaries of
SANO. An overdependence on DYFS and over the time ignoring to find
other sources of finance may lead to a situation where SANO may be
made to accept delivering services not mandated by its mission, and the
latter would be acquiescing to these demands for the sake of maintaining
its financial health and good name, while compromising on its mission. In
such relationship the quest for aggrandizement by some role players may
insist on the perpetuation of this state and thus compromise on the mission
5.
of the organization.
Descriptively, the organization, while keeping the nature of the board and
its relationship with DYFS in mind, it can be concluded that SANO would
compromise on its mission and acquiesce to the demands of the DYFS.
This will perpetuate the symbiotic nature of relationship. Given this state
of affairs, if another alternative is not opt for, SANO would not only loose
integrity, but name and DYFS too in the future.
References:
Herman, R. D. (2011). The Jossey-Bass handbook of nonprofit leadership and
management. John Wiley & Sons.