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OCTOBER 2OO4
Public Allies
Building the Infrastructure for Growth
Copyright ©2005 The Bridgespan Group, Inc. Bridgespan is a
registered trademark of The Bridgespan Group, Inc. All rights
reserved.
2
Summary
Strong support from AmeriCorps, fees from organizations who
sponsor “Allies,”
and clearly documented program results have propelled Public
Allies’ growth. Over
the years, Public Allies has worked hard to find the appropriate
level of control and
decentralization with its branches, and the organization recently
decided to migrate
all of its sites to a licensee model in which organizations or
universities manage
local programs, relieving some of the administrative and
financial burden on local
sites. Public Allies also is planning future growth with a new,
lower cost model and
a more targeted approach to site development.
Organizational Snapshot
Organization: Public Allies
Year founded: 1992
Headquarters: Milwaukee, Wisconsin
Mission: “Public Allies advances diverse young leaders to
strengthen
communities, nonprofits, and civic participation.”
Program: Public Allies identifies talented young adults (known
as “Allies”) ages 18
to 30 from diverse and underrepresented backgrounds and
develops their
leadership potential through a 10-month program of full-time,
paid apprenticeships
in nonprofit organizations, weekly leadership trainings, and
team service projects.
The organization aims to change community leadership with a
new generation of
young adults from diverse and underrepresented backgrounds
committed to
careers working for community and social change and with
practices emphasizing
collaboration, diversity and inclusion, identifying assets,
continuous learning and
integrity. Public Allies believes such leadership will unite
people and groups
together, create more effective and responsive organizations,
engage the assets of
more citizens, and ultimately build a more just and equitable
society. In 2004, 203
Allies served nonprofit organizations and local communities in
11 sites. Over the
3
organization’s history, over 600 nonprofits have been served
and 1,523 Allies have
graduated from the program. Eighty-two percent of Ally
graduates continue careers
in community and public service with very high levels of civic
engagement. Ninety-
six percent of partner organizations report that their Ally’s
impact met or exceeded
their expectations and 83 percent reported that they would
sustain the services
expanded and enhanced by their Allies.
Size: $7.3 million in revenue; 12 employees in the national
headquarters, and 55
employees across the entire organization (as of 2003).
Revenue growth rate: Compound annual growth rate (1999-
2003): 9 percent;
highest annual growth rate (1999-2003): 39 percent in 2001.
Funding sources: In 2003, more than 70 percent of Public
Allies’ network
revenues come from an almost even split of government funding
(AmeriCorps) and
earned-income fees that it charges partners for employing an
Ally. In previous
years, foundations, corporations and individuals played a larger
role than they did
in 2003. The national office receives about 20 percent of its
funding from
AmeriCorps.
Organizational structure: Public Allies started with a branch
structure, with all
sites operating under one 501(c)(3), but it is now in the process
of transitioning to a
licensee structure, with each site operating under a host
organization’s 501(c)(3). It
operates in 10 locations: Milwaukee, Wisconsin; Chicago,
Illinois; Cincinnati, Ohio;
New York City, New York; Los Angeles, California;
Wilmington, Delaware; Raleigh-
Durham, North Carolina; Bridgeport, Connecticut; Milpitas,
California (Silicon
Valley); and Estes Park, Colorado (Eagle Rock).
Leadership: Paul Schmitz, president and CEO, was the first
leader of the Public
Allies Milwaukee site and is the third leader of the
organization.
More information: www.publicallies.org
4
Key Milestones
1992: Founded; launched its first apprenticeship program in
Washington,
D.C.
1993: Expanded to Chicago with a National Service
demonstration grant
from President Bush’s Commission on National and Community
Service
1994: Received funding from the new AmeriCorps program;
expanded to
Milwaukee, Wisconsin; Raleigh-Durham, North Carolina; and
Wilmington,
Delaware
1995: Expanded to Silicon Valley, California
1998: Expanded to Cincinnati, Ohio
1999: Expanded to Los Angeles, California and New York City,
New York
2000: Schmitz became CEO; expanded to Taos, New Mexico
through a
partnership with the Rocky Mountain Youth Corps’ Public
Allies Delaware
affiliates with the University of Delaware’s Center for
Community Research
and Service
2001: Public Allies North Carolina paused due to a financial
struggles;
created program baselines and standards, and completed
strategic plan to
strengthen and grow the program model and to mobilize alumni
through new
programs
2002: Expanded to Eagle Rock; introduced online evaluation
tools; began
alumni programming
2003: Closed Taos site
2004: Opened Connecticut site; closed Washington, D.C. site
5
Growth Story
In 1992 Vanessa Kirsch and Katrina Browne, at the time two
recent college
graduates, founded Public Allies with the aim of correcting
stereotypes about
“slacker” GenXers. They saw that many talented young people
were committed to
active citizenship and community change, but that nonprofits
had a hard time
meaningfully tapping into this talent pool of emerging leaders.
With help from
hundreds of volunteers, Kirsch and Browne created Public
Allies to recruit, train,
and support diverse young leaders, and to prepare them to
assume national and
community leadership on pressing public issues.
The organization launched its first apprenticeship program in
Washington, D.C.,
placing 15 young people in positions of influence in the city’s
nonprofit sector. The
following year, Public Allies Chicago began with 30 more
Allies. In 1994, people
like current Public Allies President and CEO Paul Schmitz
lobbied Public Allies to
create sites in their cities, and so Public Allies helped them start
local chapters in
Milwaukee, Wisconsin; Raleigh-Durham, North Carolina; and
Wilmington,
Delaware. The organization opened in San Jose/Silicon Valley,
California in 1995;
Cincinnati, Ohio in 1998; Los Angeles, California and New
York City, New York in
1999; Taos, New Mexico in 2000; and Estes Park, Colorado in
2002. Public Allies
has explored other sites over the past decade with the
availability of AmeriCorps
and private funds often driving final decisions.
The organization always intended to be national, but between
1992 and 1996
growth was opportunistic, often resulting from partners asking
to replicate Public
Allies’ program in their communities or from Kirsch or Browne
expressing interest
in a specific location. In fact, Schmitz recalls that when he was
head of the
Milwaukee office, he did not have the support of the national
board which did not
wish to expand there or in Delaware. “The ironic thing is that
Milwaukee and
Delaware are two of the strongest sites, because the challenges
they put up to us
in the beginning forced us to build something stronger than
perhaps anyone else in
the network had built.”
6
In 1992, President Bush named the group one his
“Demonstration Projects for
National Service,” and in 1994 it was one of the initial
organizations that received
funding from the newly created AmeriCorps program.
Presidents Bill Clinton and
George W. Bush have both honored the group’s work over the
years. All the
attention led to strong interest from funders, and with it, strong
pressure to grow.
Public Allies made Schmitz vice president of strategy and
expansion in 1997, and
Schmitz met with leaders in six communities who had contacted
Public Allies about
expansion. His uncle, then the president of Xavier University in
Cincinnati, had
invited him to explore opening a site there. After gaining the
support of dozens of
community organizations and leaders, Public Allies received
multi-year gifts from
Procter & Gamble and its chairman. The organization also
created a binder that
included detailed information on program methods and best
practices to share with
the new site. “We felt like it was our first time doing things
right — all of our sites
were struggling financially, but we saw Cincinnati and were
like, ‘Wow! This is how
it could be done.’”
The CEO and the board decided New York and Los Angeles
were the next logical
cities for expansion, due to the amount of national funding
coming from New York
and the presence of two board members in Los Angeles. “At that
time we decided
if we were going to be truly national, we needed the two biggest
cities,” he says.
(See Figure 1 for the growth in Allies graduating from the
program.)
But with limited standards and management, sites evolved in
their own directions,
starting additional programs and making operating decisions
without consulting
with the national office even though the national office was
ultimately liable.
Despite inconsistencies in their program models, local sites
achieved positive
results and were championed in their communities, which made
national
interventions more difficult. Monitoring sites was also
challenging due to the lack of
national infrastructure. One local director, after a review that
noted her lack of
compliance with organizational policies, said that she thought
she was running a
local organization not a national program. “We grew the idea of
Public Allies before
we grew a clearly defined program or organizational model,”
added Schmitz.
7
This information is confidential and was prepared by The
Bridgespan Group solely for the use of our client; it is not to be
relied on by any 3rd party without The Bridgespan Group’s
prior written consent.
Figure 1
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
2004
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54
127 124
148 142 147
201
214
203
238
203
0
100
200
300
Number of Allies
Graduates
Non-
graduates
Number
of sites
Graduation
rate
2
88%
5
89%
6
83%
6
89%
6
87%
7
80%
9
87%
10
73%
9
77%
11
86%
11
85%
11
88%
Source: Organization internal data
In 2001, growth paused as the organization conducted a
strategic plan. “We ran
out of money,” Schmitz explains, referring to Public Allies’
financial crisis in 2000
(see Capital section). No one would help fund the planning
process, so Public
Allies surveyed 170 stakeholders on its own. It learned that
alumni were an under-
tapped and under-developed resource, so the organization
developed a plan to
continue supporting the leadership development of alumni. The
study also
revealed that the organization needed to raise its profile and
better report the
results stakeholders saw from the program.
The plan called for expanding to 20 cities by 2006, primarily
through “franchise-
like” affiliations. Under this arrangement, the Public Allies
national office would
license other nonprofit organizations to run Public Allies sites
under the umbrella of
the licensee’s 501(c)(3). Public Allies would provide the
program, training,
technical assistance, and assessment tools and processes. The
Delaware site was
the first licensee created under the new plan, operating out of
the University of
Delaware starting in September 2000.
8
The plan helped further efforts over time to more clearly define
the Public Allies
model and organizational structure. Public Allies sites had
created their own vision
and mission statements until 1996. Program methods and best
practices were first
pulled together into a handbook in 1998 by a team of program
staff representing
each site. Program baselines and standards for each component
of the program
and a process for monitoring site quality were established in
2000. Financial
policies were established in 2001, common program evaluation
tools and systems
were established in 2002, and site operating standards were
created in 2003.
With hindsight, Schmitz recognizes that more clearly defined
program and
management systems would have helped when he was running
the Milwaukee
office. “Early in our history, we had to seize the opportunity
that existed for us to
grow or we wouldn’t be in many of our sites. Having a
consistent program model at
that time would have been great, but the experimentation that
came from these
new sites are what developed the successful model we have
today.”
“I think there was a lot of work in making sure we had a very
firm foundation on
which to build things, but we’ve been building it and trying to
live in it at the same
time with very limited capacity until recently,” says Dawn
Hutchison, vice president
for marketing and development. “As we start expanding [again,
we need to] have
our program and management expectations clearly defined with
the right support
to help people successfully implement them from day one.”
Schmitz believes that capacity and culture are important
considerations in growth.
“The problem was that over time, we developed this very
decentralized culture with
very limited national management either from lack of
experience or from lack of
capacity. For instance, in 1995 when there were five Public
Allies sites, we had 13
national office staff and they were all young people who were
new to the field. And
in 2000, we had grown to 10 sites, but we only had seven
national office staff. The
culture that evolved and the lack of standard management
systems conflicted with
our structure as a single 501(c)(3). As we sought to build our
national office
infrastructure, standards, and management systems, there was
great resistance
from sites who wanted more support but wanted to retain
control.”
While building standards and systems in recent years, Public
Allies has worked
hard to address the underlying structural issues and to become
more strategic
9
about growth. The Monitor Group recently led the creation of a
new Public Allies
strategic plan, and the organization has met with leaders from
McKinsey,
Bridgespan, YouthBuild, Teach for America, City Year, City
Cares, Jumpstart and
others to learn more about national-local structures and growth-
related operational
issues. As a result, Public Allies chose to migrate all of its sites
to the licensee
structure, and to grow its impact through new licensee sites and
through
dissemination of its leadership development approach to other
organizations.
Another recent change is that Public Allies now uses a more
rigorous way of
evaluating new geographic opportunities. Potential sites apply
through an
extensive, albeit collaborative, process with Public Allies. The
organization
received three detailed applications for new sites from a 2003
nationwide call for
proposals, and selected only one. The first site developed
through this method was
recently launched through a licensee relationship with a group
in Connecticut.
One of Public Allies’ key assets in growing its model has been
its efforts to track
Allies’ outcomes. It does so with three tools, all of which
collect data electronically
via the organization’s intranet: The Personal Impact Service
Documentation (PISD)
system; 360 Degree Feedback Assessments; and frequent
surveys of both Allies
and partner organizations. In addition to the electronic tools,
Allies participate in
Presentations of Learning at the end of the year when they
defend how they have
achieved the organization’s outcomes. Public Allies
commissions an annual “Year
End Evaluation Report,” written by the University of Wisconsin
at Milwaukee using
the data collected through these tools. Public Allies also
actively tracks the
performance of its alumni through annual surveys.
Public Allies developed their current online evaluation system
with the help of a
few “Cisco Fellows”, employees Cisco Systems, Inc. “loaned”
to the organization.
Claire Thompson, director of continuous learning, says, “The
Cisco fellows were
the impetus for this electronic system. They piloted an online
system at the Silicon
Valley site, helped us find the consultants, planted the seeds of
change, and we
took it from there and ran with it … The idea was that we
needed to measure and
report impact better, share information among sites, and
streamline administrative
processes.” Paul Schmitz credits the Cisco Fellows with keeping
the costs
manageable: “Our process was very inexpensive. We could not
have had it done
10
anywhere else.” Public Allies has documented its technology
transformation in a
case study called “Recipe for Replication,” which is available
on the organization’s
website along with a presentation on its PISD and other
evaluation tools.
Hutchison, vice president for marketing and development, says
the outcome
measurement has been valuable in sustaining and growing
funding from
AmeriCorps and other sources, at the national and site levels:
“The PISD is an
incredible, powerful tool … The sector is asking for that
information, and we are
able to deliver it.”
CONFIGURATION
Public Allies started as a branch organization, with each site
operating under the
501(c)(3) of the national office. Lack of experience and
capacity among national
staff members early on and Public Allies’ mission of developing
local community
leadership, however, created a culture that gave sites a great
deal of control. “If
your culture is all about local leadership, it is tough to have one
centralized
organization,” says Schmitz.
Local sites had an independent local advisory board, which the
local site director
chose but which shared with national the hiring and firing
authority over the
director. The program model was not codified in detail before
the initial expansion,
enabling local sites to vary the program model, which several
did to a significant
degree. Despite the inconsistencies in their program models,
local sites achieved
positive results which fueled their continued growth.
AmeriCorps funding led to
some shifts in the model. “Initial program offerings were more
advocacy oriented,
but as Public Allies began receiving AmeriCorps funding, it
became direct service
oriented and more outcome directed,” says Schmitz.
Further, the reporting structure between the local sites and
national office was
unclear, and the national office had little control over “rogue”
sites that developed
program priorities or operating decisions which diverged from
the national
organization. For example, one local site decided it would be
more cost effective to
share space with other nonprofit organizations, so it leased
office space large
enough to hold three organizations and planned to sublet the
space to other
11
nonprofits. When the national office finally learned of this, it
was unhappy that it
would have to bear the liability of excess real estate if the local
site were unable to
lease the space.
Public Allies eventually found its relationship with local sites
unsustainable. “Our
model was flawed,” says Hutchison. “We have a very
decentralized culture.” Not
only was the national office unable to control local programs,
but it was also liable
for the local sites’ persistent budget deficits. Local site
directors have minimal
accountability to national because “[the national office] can
always bail local sites
out,” says Schmitz. “The home office has all of the
responsibility and none of the
control.”
The organization recently announced it would close its
Washington, D.C., office,
the site of Public Allies’ first program. “We have come to the
conclusion, that even
under the best local leadership, we will struggle locally to raise
the necessary
dollars,” said Schmitz in an announcement about the closure.
“Our program
achieves great outcomes, but is fairly expensive and too small
in scale locally to
justify the infrastructure that would allow us to raise more
funds. The struggles we
have faced are structural.” Public Allies is currently working
with D.C. alumni to
identify a partner to re-launch and operate Public Allies D.C. in
2005.
D.C. was not the first site Public Allies has had to close. The
Taos site was another
example of a licensee structure, in which the Rocky Mountain
Youth Corps (RMYC)
hosted Public Allies. Public Allies closed the site because of the
challenges of
operating effectively in a small, rural community and because
of the divergent
cultures between Public Allies, a program that embraces the
conflicts and
challenges inherent in leadership development, and RMYC, a
youth corps program
that is focused on helping young people gain greater discipline.
The Public Allies National Board recently issued an ultimatum:
all sites will either
have to become licensees (i.e., operate under another a host
organization’s
501(c)(3)) or close, because, says Schmitz, “Either you
centralize the culture or
decentralize the structure. Our program’s culture has been a key
component of our
success while a more hierarchical structure runs contrary to our
purpose.” Their
research showed that many of the sites couldn’t bear the high
costs of
incorporating as a 501(c)(3). “A single program that develops
30 leaders a year
12
cannot justify or build the necessary infrastructure to operate an
effective
organization,” says Schmitz. And David Weaver, vice president
of leadership
development, believes that branch executive directors who have
more limited
fundraising skills would welcome the structure that comes with
being a licensee,
because a university or nonprofit partner could help with costs
and fundraising.
Schmitz is drawn to elements of a model like Jumpstart, in
which a licensee falls
under another organization’s 501(c)(3), such as a university or
community
organization. The Public Allies national office would still
support local sites with
training, technical assistance, evaluation, and participation in a
larger network.
Public Allies experimented with the licensee structure in
Delaware, where the local
site is run by the University of Delaware. It found that the
arrangement met its
conflicting goals of having local leadership, local control, and
local risk bearing
while meeting quality standards, maintaining the brand identity,
and representing
our leadership culture. Public Allies sites are all currently in
talks with universities
and other nonprofits to begin migrating to the new structure. In
addition, Public
Allies is exploring efforts to disseminate their leadership
development approaches,
curriculum, and assessment processes to other organizations.
Additionally, Public Allies is using its stepped up outcome
evaluation efforts to help
sites manage program quality. The national office tailors the
outcome data it tracks
to meet the needs of local offices. According to Thompson,
director of continuous
learning, “We look at program improvement options for our
sites — where they
stood out, where they fell short — and then we use different
venues to share best
practices.” The national office also offers Web-based seminars
twice a month that
help sites learn best practices, and continuous learning officers
visit sites twice per
year and look for ways to improve programs.
CAPITAL
Public Allies relies on AmeriCorps for about 20 percent of its
national office
funding, and about one-third of its local funding. “I don’t know
that we could
replace that money,” says Hutchison. “Sites are struggling with
the fundraising they
have to do now, and that would be very different without
AmeriCorps.”
13
AmeriCorps funding goes to both the national office and
directly to the sites. But
cash flow is tricky to manage, because of the government’s slow
schedule of
payments. There is sometimes a delay of up to six months
between the time Public
Allies’ national office pays out money to support local sites and
when national
receives its money from AmeriCorps.
When AmeriCorps funding was threatened in 2003, Public
Allies had to work
doubly hard on advocacy and political negotiating to keep the
money. AmeriCorps
has been useful in funding expansion, but the financial risk of
depending heavily
on a funding source that can disappear with a change of
administration weighs
heavily on Public Allies’ management team and board. Further,
the AmeriCorps
money is highly sought after; Public Allies sometimes must
compete with
organizations it would prefer to partner with.
Earned-income revenues are almost equal in magnitude to the
government
funding stream. Public Allies partners with nonprofit
organizations, which agree to
host an “Ally” and pay a portion of his or her salary
(AmeriCorps pays the other
portion), as well as a nominal administration fee. AmeriCorps
funds non-program
staff, in part, and unrestricted grants fund the rest.
The remaining revenue comes from foundations, corporations
and individuals.
“Individual funders have to be in there from the beginning
because it shows broad
support, and gets folks engaged and bought into the program,”
says Hutchison.
“But it is very high touch and intensive and requires a capacity
that our local offices
lack with their limited scale.” (See Figure 2 for a breakdown of
Public Allies’
revenue sources.)
Although individuals have not been the largest funders for
Public Allies, they have
played an important role, giving mostly unrestricted funds.
When a financial crisis
in 2000 almost forced the organization to close, a board member
stepped in with
gifts to cover over $200,000 of expenses. The organization
moved headquarters to
Milwaukee, which cut operating costs dramatically. It also
pared its national office
staff down from seven to four and cut other expenses to
eliminate $370,000 in
accumulated debt from sites.
14
This information is confidential and was prepared by The
Bridgespan Group solely for the use of our client; it is not to be
relied on by any 3rd party without The Bridgespan Group’s
prior written consent.
Figure 2
1998 1999 2000 2001 2002 2003
$4.2
$5.3 $5.1
$7.1
$8.8
$7.3
0
2
4
6
8
$10M
Public Allies revenue
Government
Foundation
Individual
Corporate
Other
(incl.
partner
fees)
Budget surplus
(deficit) ($M)
Annual
revenue growth
-$0.1M
N/A
-$0.1M
26%
$0.0M
-3%
$1.4M
39%
$1.7M
23%
-$1.4M
-17%
Note: Revenues are recorded on accrual basis in which multi-
year pledges are booked in the year received and deficits
may be offset by payments of previous pledges
Source: Organization internal data
“In our first eight years, Public Allies subsidized $1.2 million
of site losses. By
2000, it caught up to us. Things got better for a few years, but
in recent years, we
have again had to subsidize site losses with unrestricted funds,”
Schmitz says.
“This is an unsustainable and un-strategic way to operate. When
you’re in survival
mode, you delay and divert resources from projects that move
you forward and
strengthen the organization to instead cover day-to-day costs
just to keep the
doors open.”
Public Allies’ local budgets tend to be very tight: Ally stipends
and benefits are 57
percent of expenses; personnel (each site has an executive
director, one program
manager per 10 Allies and a few sites have an additional
administrative position)
are 32 percent of expenses; fixed operating costs (rent, copier
rental, etc.) are 7
percent; and the remaining 5 percent covers everything else,
including Ally
training, graduation ceremonies, office supplies, postage, and
other “discretionary”
expenses. When fundraising shortfalls are discovered, there is
little room to cut
expenses, except personnel, and program staff are two-thirds
funded by
AmeriCorps. “The structure of our local site budgets makes it
difficult to do much
15
more than cover the losses if you want to complete the program
year,” Schmitz
adds.
Public Allies is now working to improve its individual donor
strategy, rolling out a
campaign in which sites will receive $1 from national for every
$2 they raise. Local
boards are also being encouraged to focus more on fundraising.
But this national
fundraising strategy is challenged by the institutional design of
local control. Dawn
Hutchison, who was recently hired by the national office to
increase individual and
foundation funding and who used to work at Jumpstart, notes,
“At Jumpstart we
would say, ‘This is what we’re doing.’ At Public Allies, we say,
‘Here’s an
opportunity — do you want to participate?’”
Public Allies has achieved greater success with foundations, but
funding streams
for “leadership development” are challenging to navigate. To
Schmitz, the problem
stems from the fact that a “leadership development
organization” is difficult to
explain. “The complexity of our model allows us to fit in many
funders’ ‘boxes,’ yet
not fit neatly in any one ‘box.’ Local funders are more likely to
fund the direct
service of our members than their leadership development.
Fundraising for a
leadership development program is more analogous to a school
than a direct
service organization, as the impact on our participants grows
over time.” Public
Allies has tracked long-term results of their participants which
has helped them
make the case for such support.
CAPABILITIES
Public Allies has expanded its national office staffing in recent
years beyond what
they planned in 2001. Good people were brought on board and
Public Allies
figured out how to use their assets to strengthen the
organization. For example,
Schmitz came to the organization as a local site director in
Milwaukee, and then
became national vice president of strategy when the
organization grew. In 2001,
Schmitz became CEO after Chuck Supple moved to California
to work for then-
governor Gray Davis. Schmitz decided he would only take the
CEO position if
Public Allies moved its headquarters to Milwaukee. The board
agreed.
16
The organization has had three leaders in a little over 10 years,
a level of turnover
that makes it challenging to keep momentum going for the
program, and to keep
the new sites aligned with national office’s goals. Schmitz
estimates that his time is
split as follows: 30 percent on fundraising, 25 percent on
general management, 20
percent on external relations and communications, 10 percent on
program
strategy, 10 percent on government relations, and 5 percent on
the board.
The organization conducted strategic plans in both 1997 and
2001, both of which
helped guide its hiring. Public Allies hired an IT staff member
after working with
Cisco to overhaul its technology infrastructure and to build a
system for local site
evaluations. Specialists in development and program evaluation
were also brought
in. A government-relations position was added because of the
organization’s
reliance on AmeriCorps funding.
Because Schmitz was becoming stretched too thin, over the past
two years Public
Allies has added a senior management layer, hiring vice
presidents of
development, continuous learning, and leadership development.
These additions
have enabled Schmitz to spend more time on fund development
activities. The
chief operating officer position has been the hardest position to
hire for. One
person hired for the job did not work out, so the organization is
still looking.
The 2001 strategic plan did not envision all of these new
positions. “As we built our
infrastructure, we outgrew the capabilities of some of our staff,
meaning that some
folks needed to be let go with growth,” says Schmitz.
Weaver has put together a new “institute” to train and develop
local executive
directors and program staff, with the goal of giving people
preparation to move up
the career ladder. After six years, Weaver will be leaving Public
Allies in a few
months to pursue either another job in the nonprofit sector or
further education.
“People should always be advancing in their careers,” he says.
He believes there
should be more internal promotions within Public Allies, or else
voluntary turnover,
once people hit an experience ceiling. Additionally, Schmitz has
begun planning for
his eventual succession.
Public Allies also changed the nature of its board. Schmitz
recalls that during his
early days as CEO, the board had great energy, but it wasn’t
very demanding. This
17
“rubber-stamping” board led Public Allies through the transition
to greater
professional management, but it lacked diversity and experience
with growing
nonprofit organizations. In 2002, the organization transitioned
to a “tough”
governing board, with a new board chair. “The board needs to
be managed and
engaged just like the staff,” says Schmitz. “They definitely need
more attention.”
Key Insights
Finding the right local structure. Public Allies has struggled
with the
appropriate level of control and decentralization with its local
sites. The
organization is currently transitioning to a licensee model in
which partner
organizations carry more of the administrative and financial
burden for local
sites. Public Allies sees itself now as replicating a program not
replicating an
organizational model.
Relying on government support. Because it depends heavily on
one
funding source (i.e., AmeriCorps), Public Allies has had to
invest a great deal
of time and energy into ensuring that that source continues.
Diversification
into other sources has not been easy because of a lack of clarity
about
leadership programs and how that fits into funders’ priorities.
Planning for growth. In a change from the opportunistic
approach to growth
Public Allies pursued historically, the organization is now being
more
deliberate about planning for growth. It has established a new
licensee
model, a site-evaluation tool, and a geographic expansion
process for
potential partners. It also has a more replicable program model
with the
appropriate tools, processes, and support to implement it.
Limiting financial risk. Public Allies’ branch structure has made
the national
liable for local fundraising shortfalls. The national board
expects the sites to
raise their funds and the local advisory boards expect the
national to provide
more support. With few costs to cut, the national covers site
losses, often
diverting funds from the activities that can build capacity to
prevent such
18
future losses. The new licensee structure will streamline costs,
add local
capacity and prevent national from having to cover such losses
in the future.
Using low-cost technological solutions. Collecting data
electronically via
an intranet has allowed the organization to measure and report
impact, to
share information among sites, and to streamline administrative
processes.
In-kind contributions from Cisco Systems, Inc. combined with
outsourcing
and the online nature of the system helped lower the cost of
creating and
maintaining it.
Running Head: NARRATIVE ESSAY 1
NARRATIVE ESSAY 3
Narrative Essay
Student Name
Tutor’s Name
Date
Smith was impolitely stirred by the shrill buzzing of his phone.
He switched on the lights and realized that it was 3:20 am early
in the morning. Moaning, he reached for the telephone. It was
Smith’s sibling, John. He realized that all was not well the
moment his sibling talked. John's unusual voice at that time
revealed that he was at Saint Mary’s Mission clinic with their
mom. On that night their mom was restless and had gone to the
kitchen to fetch a drink when she slipped fell on the floor. The
incident fractured her arm and dislocated her lower leg.
Fortunately, the hot beverage didn’t spill on her. When John
and his spouse Judith were stirred by the clamor from the
kitchen, they hurried to find out what was happening, just to
discover their mom on the floor.
Smith was shocked by the entire incident. His mom was in her
eighties and such fall could seriously harm her. "How is she?
What did the doctor say?" his voice trembled with nervousness
as he made the inquiries. John gave no distinct answer since
they had just barely reached the infirmary. He just realized that
she was in critical condition. Smith quickly woke his spouse to
reveal to her the news. In spite of the fact that he seriously
needed her moral support, he realized that she needed to remain
behind to take care of their kids. As Smith headed to the
infirmary, he hoped that his mom would be okay. Reflections of
how great his mom is made him shed tears. He simply needed to
get to the infirmary to be with her.
Reference
Skwire & Wiener (2007). Student's book of college English:
Rhetoric, readings, handbook. New York: Pearson Education.
Kathryn (2011). Successful College Composition (2016)
Writing for success. Georgia: Saylor.org.
Narrative Essay
This essay explores the Narrative Mode, which is perhaps the
most natural style of writing for most people.
One of the goals of the narrative form is to allow readers to feel
as if they are not simply reading someone else's story, but that
they are somehow part of it. Unlike simply telling a story
though, a narrative essay has a specific piece of information to
share, a lesson for the reader. There should be a clear reason
for your telling the story. This is where the “essay” in the
narrative essay becomes apparent.
Your assignment this week is to write such an essay. Refer back
to your outline of a significant event that you wrote for W2.
Keep in mind that you are writing a story and it is important to
freely tell your story. But, this is still an academic essay. The
goal of your story is to support a clearly stated thesis/lesson for
the reader. As such, your tale should be wrapped in a clear
introduction and conclusion.
Criteria
Your essay should contain the following basic features:
An introduction with an attention grabbing opening
(hook), a well-defined message or argument (thesis), and any
background information the reader needs to fully understand
your story;
Body paragraphs which a tell the story of your clear and
specific, singular event that illustrates the essay thesis;
Vivid language that works to recreate the event,
including descriptions of where the event took place, the people
who were involved, and the things these people said and did;
A conclusion that briefly implicitly or explicitly reviews
your story, reiterates the lessons you learned and that you hope
the reader to learn, and provides a closing thought such as
o why this event is still personally significant,
o the state of your life since the event and how you feel about
it,
o future plans related to the event,
o rhetorical questions for the reader, etc.
In addition to the above, the final draft of your essay should be:
From 250-500 words in length, typed in Times New
Roman 12pt. font, double-spaced, with one-inch margins.
Uses APA style (a title page and citations as needed
which are modeled in your APA guide),
Written in first person;
Edited for spelling, mechanical, grammatical, and typing
errors
Please note: Writing takes time. Plan ahead to give yourself
time to write multiple drafts of this essay. Get some feedback
from the people you know or from Tutor.com to help you to
craft the best essay you can in the time allotted.
OCTOBER 2OO4Public Allies Building the Infrastructure fo.docx

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OCTOBER 2OO4Public Allies Building the Infrastructure fo.docx

  • 1. OCTOBER 2OO4 Public Allies Building the Infrastructure for Growth Copyright ©2005 The Bridgespan Group, Inc. Bridgespan is a registered trademark of The Bridgespan Group, Inc. All rights reserved. 2 Summary Strong support from AmeriCorps, fees from organizations who sponsor “Allies,” and clearly documented program results have propelled Public Allies’ growth. Over the years, Public Allies has worked hard to find the appropriate level of control and decentralization with its branches, and the organization recently decided to migrate all of its sites to a licensee model in which organizations or universities manage local programs, relieving some of the administrative and financial burden on local
  • 2. sites. Public Allies also is planning future growth with a new, lower cost model and a more targeted approach to site development. Organizational Snapshot Organization: Public Allies Year founded: 1992 Headquarters: Milwaukee, Wisconsin Mission: “Public Allies advances diverse young leaders to strengthen communities, nonprofits, and civic participation.” Program: Public Allies identifies talented young adults (known as “Allies”) ages 18 to 30 from diverse and underrepresented backgrounds and develops their leadership potential through a 10-month program of full-time, paid apprenticeships in nonprofit organizations, weekly leadership trainings, and team service projects. The organization aims to change community leadership with a new generation of young adults from diverse and underrepresented backgrounds committed to
  • 3. careers working for community and social change and with practices emphasizing collaboration, diversity and inclusion, identifying assets, continuous learning and integrity. Public Allies believes such leadership will unite people and groups together, create more effective and responsive organizations, engage the assets of more citizens, and ultimately build a more just and equitable society. In 2004, 203 Allies served nonprofit organizations and local communities in 11 sites. Over the 3 organization’s history, over 600 nonprofits have been served and 1,523 Allies have graduated from the program. Eighty-two percent of Ally graduates continue careers in community and public service with very high levels of civic engagement. Ninety- six percent of partner organizations report that their Ally’s impact met or exceeded their expectations and 83 percent reported that they would
  • 4. sustain the services expanded and enhanced by their Allies. Size: $7.3 million in revenue; 12 employees in the national headquarters, and 55 employees across the entire organization (as of 2003). Revenue growth rate: Compound annual growth rate (1999- 2003): 9 percent; highest annual growth rate (1999-2003): 39 percent in 2001. Funding sources: In 2003, more than 70 percent of Public Allies’ network revenues come from an almost even split of government funding (AmeriCorps) and earned-income fees that it charges partners for employing an Ally. In previous years, foundations, corporations and individuals played a larger role than they did in 2003. The national office receives about 20 percent of its funding from AmeriCorps. Organizational structure: Public Allies started with a branch structure, with all sites operating under one 501(c)(3), but it is now in the process of transitioning to a
  • 5. licensee structure, with each site operating under a host organization’s 501(c)(3). It operates in 10 locations: Milwaukee, Wisconsin; Chicago, Illinois; Cincinnati, Ohio; New York City, New York; Los Angeles, California; Wilmington, Delaware; Raleigh- Durham, North Carolina; Bridgeport, Connecticut; Milpitas, California (Silicon Valley); and Estes Park, Colorado (Eagle Rock). Leadership: Paul Schmitz, president and CEO, was the first leader of the Public Allies Milwaukee site and is the third leader of the organization. More information: www.publicallies.org 4 Key Milestones 1992: Founded; launched its first apprenticeship program in Washington, D.C. 1993: Expanded to Chicago with a National Service demonstration grant
  • 6. from President Bush’s Commission on National and Community Service 1994: Received funding from the new AmeriCorps program; expanded to Milwaukee, Wisconsin; Raleigh-Durham, North Carolina; and Wilmington, Delaware 1995: Expanded to Silicon Valley, California 1998: Expanded to Cincinnati, Ohio 1999: Expanded to Los Angeles, California and New York City, New York 2000: Schmitz became CEO; expanded to Taos, New Mexico through a partnership with the Rocky Mountain Youth Corps’ Public Allies Delaware affiliates with the University of Delaware’s Center for Community Research and Service 2001: Public Allies North Carolina paused due to a financial struggles; created program baselines and standards, and completed strategic plan to
  • 7. strengthen and grow the program model and to mobilize alumni through new programs 2002: Expanded to Eagle Rock; introduced online evaluation tools; began alumni programming 2003: Closed Taos site 2004: Opened Connecticut site; closed Washington, D.C. site 5 Growth Story In 1992 Vanessa Kirsch and Katrina Browne, at the time two recent college graduates, founded Public Allies with the aim of correcting stereotypes about “slacker” GenXers. They saw that many talented young people were committed to active citizenship and community change, but that nonprofits had a hard time meaningfully tapping into this talent pool of emerging leaders. With help from hundreds of volunteers, Kirsch and Browne created Public
  • 8. Allies to recruit, train, and support diverse young leaders, and to prepare them to assume national and community leadership on pressing public issues. The organization launched its first apprenticeship program in Washington, D.C., placing 15 young people in positions of influence in the city’s nonprofit sector. The following year, Public Allies Chicago began with 30 more Allies. In 1994, people like current Public Allies President and CEO Paul Schmitz lobbied Public Allies to create sites in their cities, and so Public Allies helped them start local chapters in Milwaukee, Wisconsin; Raleigh-Durham, North Carolina; and Wilmington, Delaware. The organization opened in San Jose/Silicon Valley, California in 1995; Cincinnati, Ohio in 1998; Los Angeles, California and New York City, New York in 1999; Taos, New Mexico in 2000; and Estes Park, Colorado in 2002. Public Allies has explored other sites over the past decade with the availability of AmeriCorps
  • 9. and private funds often driving final decisions. The organization always intended to be national, but between 1992 and 1996 growth was opportunistic, often resulting from partners asking to replicate Public Allies’ program in their communities or from Kirsch or Browne expressing interest in a specific location. In fact, Schmitz recalls that when he was head of the Milwaukee office, he did not have the support of the national board which did not wish to expand there or in Delaware. “The ironic thing is that Milwaukee and Delaware are two of the strongest sites, because the challenges they put up to us in the beginning forced us to build something stronger than perhaps anyone else in the network had built.” 6 In 1992, President Bush named the group one his “Demonstration Projects for
  • 10. National Service,” and in 1994 it was one of the initial organizations that received funding from the newly created AmeriCorps program. Presidents Bill Clinton and George W. Bush have both honored the group’s work over the years. All the attention led to strong interest from funders, and with it, strong pressure to grow. Public Allies made Schmitz vice president of strategy and expansion in 1997, and Schmitz met with leaders in six communities who had contacted Public Allies about expansion. His uncle, then the president of Xavier University in Cincinnati, had invited him to explore opening a site there. After gaining the support of dozens of community organizations and leaders, Public Allies received multi-year gifts from Procter & Gamble and its chairman. The organization also created a binder that included detailed information on program methods and best practices to share with the new site. “We felt like it was our first time doing things right — all of our sites
  • 11. were struggling financially, but we saw Cincinnati and were like, ‘Wow! This is how it could be done.’” The CEO and the board decided New York and Los Angeles were the next logical cities for expansion, due to the amount of national funding coming from New York and the presence of two board members in Los Angeles. “At that time we decided if we were going to be truly national, we needed the two biggest cities,” he says. (See Figure 1 for the growth in Allies graduating from the program.) But with limited standards and management, sites evolved in their own directions, starting additional programs and making operating decisions without consulting with the national office even though the national office was ultimately liable. Despite inconsistencies in their program models, local sites achieved positive results and were championed in their communities, which made national interventions more difficult. Monitoring sites was also
  • 12. challenging due to the lack of national infrastructure. One local director, after a review that noted her lack of compliance with organizational policies, said that she thought she was running a local organization not a national program. “We grew the idea of Public Allies before we grew a clearly defined program or organizational model,” added Schmitz. 7 This information is confidential and was prepared by The Bridgespan Group solely for the use of our client; it is not to be relied on by any 3rd party without The Bridgespan Group’s prior written consent. Figure 1 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 16 54 127 124 148 142 147 201
  • 15. 11 88% Source: Organization internal data In 2001, growth paused as the organization conducted a strategic plan. “We ran out of money,” Schmitz explains, referring to Public Allies’ financial crisis in 2000 (see Capital section). No one would help fund the planning process, so Public Allies surveyed 170 stakeholders on its own. It learned that alumni were an under- tapped and under-developed resource, so the organization developed a plan to continue supporting the leadership development of alumni. The study also revealed that the organization needed to raise its profile and better report the results stakeholders saw from the program. The plan called for expanding to 20 cities by 2006, primarily through “franchise- like” affiliations. Under this arrangement, the Public Allies national office would
  • 16. license other nonprofit organizations to run Public Allies sites under the umbrella of the licensee’s 501(c)(3). Public Allies would provide the program, training, technical assistance, and assessment tools and processes. The Delaware site was the first licensee created under the new plan, operating out of the University of Delaware starting in September 2000. 8 The plan helped further efforts over time to more clearly define the Public Allies model and organizational structure. Public Allies sites had created their own vision and mission statements until 1996. Program methods and best practices were first pulled together into a handbook in 1998 by a team of program staff representing each site. Program baselines and standards for each component of the program and a process for monitoring site quality were established in 2000. Financial
  • 17. policies were established in 2001, common program evaluation tools and systems were established in 2002, and site operating standards were created in 2003. With hindsight, Schmitz recognizes that more clearly defined program and management systems would have helped when he was running the Milwaukee office. “Early in our history, we had to seize the opportunity that existed for us to grow or we wouldn’t be in many of our sites. Having a consistent program model at that time would have been great, but the experimentation that came from these new sites are what developed the successful model we have today.” “I think there was a lot of work in making sure we had a very firm foundation on which to build things, but we’ve been building it and trying to live in it at the same time with very limited capacity until recently,” says Dawn Hutchison, vice president for marketing and development. “As we start expanding [again, we need to] have
  • 18. our program and management expectations clearly defined with the right support to help people successfully implement them from day one.” Schmitz believes that capacity and culture are important considerations in growth. “The problem was that over time, we developed this very decentralized culture with very limited national management either from lack of experience or from lack of capacity. For instance, in 1995 when there were five Public Allies sites, we had 13 national office staff and they were all young people who were new to the field. And in 2000, we had grown to 10 sites, but we only had seven national office staff. The culture that evolved and the lack of standard management systems conflicted with our structure as a single 501(c)(3). As we sought to build our national office infrastructure, standards, and management systems, there was great resistance from sites who wanted more support but wanted to retain control.” While building standards and systems in recent years, Public
  • 19. Allies has worked hard to address the underlying structural issues and to become more strategic 9 about growth. The Monitor Group recently led the creation of a new Public Allies strategic plan, and the organization has met with leaders from McKinsey, Bridgespan, YouthBuild, Teach for America, City Year, City Cares, Jumpstart and others to learn more about national-local structures and growth- related operational issues. As a result, Public Allies chose to migrate all of its sites to the licensee structure, and to grow its impact through new licensee sites and through dissemination of its leadership development approach to other organizations. Another recent change is that Public Allies now uses a more rigorous way of evaluating new geographic opportunities. Potential sites apply through an
  • 20. extensive, albeit collaborative, process with Public Allies. The organization received three detailed applications for new sites from a 2003 nationwide call for proposals, and selected only one. The first site developed through this method was recently launched through a licensee relationship with a group in Connecticut. One of Public Allies’ key assets in growing its model has been its efforts to track Allies’ outcomes. It does so with three tools, all of which collect data electronically via the organization’s intranet: The Personal Impact Service Documentation (PISD) system; 360 Degree Feedback Assessments; and frequent surveys of both Allies and partner organizations. In addition to the electronic tools, Allies participate in Presentations of Learning at the end of the year when they defend how they have achieved the organization’s outcomes. Public Allies commissions an annual “Year End Evaluation Report,” written by the University of Wisconsin at Milwaukee using
  • 21. the data collected through these tools. Public Allies also actively tracks the performance of its alumni through annual surveys. Public Allies developed their current online evaluation system with the help of a few “Cisco Fellows”, employees Cisco Systems, Inc. “loaned” to the organization. Claire Thompson, director of continuous learning, says, “The Cisco fellows were the impetus for this electronic system. They piloted an online system at the Silicon Valley site, helped us find the consultants, planted the seeds of change, and we took it from there and ran with it … The idea was that we needed to measure and report impact better, share information among sites, and streamline administrative processes.” Paul Schmitz credits the Cisco Fellows with keeping the costs manageable: “Our process was very inexpensive. We could not have had it done 10
  • 22. anywhere else.” Public Allies has documented its technology transformation in a case study called “Recipe for Replication,” which is available on the organization’s website along with a presentation on its PISD and other evaluation tools. Hutchison, vice president for marketing and development, says the outcome measurement has been valuable in sustaining and growing funding from AmeriCorps and other sources, at the national and site levels: “The PISD is an incredible, powerful tool … The sector is asking for that information, and we are able to deliver it.” CONFIGURATION Public Allies started as a branch organization, with each site operating under the 501(c)(3) of the national office. Lack of experience and capacity among national staff members early on and Public Allies’ mission of developing local community leadership, however, created a culture that gave sites a great deal of control. “If
  • 23. your culture is all about local leadership, it is tough to have one centralized organization,” says Schmitz. Local sites had an independent local advisory board, which the local site director chose but which shared with national the hiring and firing authority over the director. The program model was not codified in detail before the initial expansion, enabling local sites to vary the program model, which several did to a significant degree. Despite the inconsistencies in their program models, local sites achieved positive results which fueled their continued growth. AmeriCorps funding led to some shifts in the model. “Initial program offerings were more advocacy oriented, but as Public Allies began receiving AmeriCorps funding, it became direct service oriented and more outcome directed,” says Schmitz. Further, the reporting structure between the local sites and national office was unclear, and the national office had little control over “rogue”
  • 24. sites that developed program priorities or operating decisions which diverged from the national organization. For example, one local site decided it would be more cost effective to share space with other nonprofit organizations, so it leased office space large enough to hold three organizations and planned to sublet the space to other 11 nonprofits. When the national office finally learned of this, it was unhappy that it would have to bear the liability of excess real estate if the local site were unable to lease the space. Public Allies eventually found its relationship with local sites unsustainable. “Our model was flawed,” says Hutchison. “We have a very decentralized culture.” Not only was the national office unable to control local programs, but it was also liable for the local sites’ persistent budget deficits. Local site
  • 25. directors have minimal accountability to national because “[the national office] can always bail local sites out,” says Schmitz. “The home office has all of the responsibility and none of the control.” The organization recently announced it would close its Washington, D.C., office, the site of Public Allies’ first program. “We have come to the conclusion, that even under the best local leadership, we will struggle locally to raise the necessary dollars,” said Schmitz in an announcement about the closure. “Our program achieves great outcomes, but is fairly expensive and too small in scale locally to justify the infrastructure that would allow us to raise more funds. The struggles we have faced are structural.” Public Allies is currently working with D.C. alumni to identify a partner to re-launch and operate Public Allies D.C. in 2005. D.C. was not the first site Public Allies has had to close. The Taos site was another
  • 26. example of a licensee structure, in which the Rocky Mountain Youth Corps (RMYC) hosted Public Allies. Public Allies closed the site because of the challenges of operating effectively in a small, rural community and because of the divergent cultures between Public Allies, a program that embraces the conflicts and challenges inherent in leadership development, and RMYC, a youth corps program that is focused on helping young people gain greater discipline. The Public Allies National Board recently issued an ultimatum: all sites will either have to become licensees (i.e., operate under another a host organization’s 501(c)(3)) or close, because, says Schmitz, “Either you centralize the culture or decentralize the structure. Our program’s culture has been a key component of our success while a more hierarchical structure runs contrary to our purpose.” Their research showed that many of the sites couldn’t bear the high costs of
  • 27. incorporating as a 501(c)(3). “A single program that develops 30 leaders a year 12 cannot justify or build the necessary infrastructure to operate an effective organization,” says Schmitz. And David Weaver, vice president of leadership development, believes that branch executive directors who have more limited fundraising skills would welcome the structure that comes with being a licensee, because a university or nonprofit partner could help with costs and fundraising. Schmitz is drawn to elements of a model like Jumpstart, in which a licensee falls under another organization’s 501(c)(3), such as a university or community organization. The Public Allies national office would still support local sites with training, technical assistance, evaluation, and participation in a larger network. Public Allies experimented with the licensee structure in Delaware, where the local
  • 28. site is run by the University of Delaware. It found that the arrangement met its conflicting goals of having local leadership, local control, and local risk bearing while meeting quality standards, maintaining the brand identity, and representing our leadership culture. Public Allies sites are all currently in talks with universities and other nonprofits to begin migrating to the new structure. In addition, Public Allies is exploring efforts to disseminate their leadership development approaches, curriculum, and assessment processes to other organizations. Additionally, Public Allies is using its stepped up outcome evaluation efforts to help sites manage program quality. The national office tailors the outcome data it tracks to meet the needs of local offices. According to Thompson, director of continuous learning, “We look at program improvement options for our sites — where they stood out, where they fell short — and then we use different venues to share best
  • 29. practices.” The national office also offers Web-based seminars twice a month that help sites learn best practices, and continuous learning officers visit sites twice per year and look for ways to improve programs. CAPITAL Public Allies relies on AmeriCorps for about 20 percent of its national office funding, and about one-third of its local funding. “I don’t know that we could replace that money,” says Hutchison. “Sites are struggling with the fundraising they have to do now, and that would be very different without AmeriCorps.” 13 AmeriCorps funding goes to both the national office and directly to the sites. But cash flow is tricky to manage, because of the government’s slow schedule of payments. There is sometimes a delay of up to six months between the time Public Allies’ national office pays out money to support local sites and
  • 30. when national receives its money from AmeriCorps. When AmeriCorps funding was threatened in 2003, Public Allies had to work doubly hard on advocacy and political negotiating to keep the money. AmeriCorps has been useful in funding expansion, but the financial risk of depending heavily on a funding source that can disappear with a change of administration weighs heavily on Public Allies’ management team and board. Further, the AmeriCorps money is highly sought after; Public Allies sometimes must compete with organizations it would prefer to partner with. Earned-income revenues are almost equal in magnitude to the government funding stream. Public Allies partners with nonprofit organizations, which agree to host an “Ally” and pay a portion of his or her salary (AmeriCorps pays the other portion), as well as a nominal administration fee. AmeriCorps funds non-program
  • 31. staff, in part, and unrestricted grants fund the rest. The remaining revenue comes from foundations, corporations and individuals. “Individual funders have to be in there from the beginning because it shows broad support, and gets folks engaged and bought into the program,” says Hutchison. “But it is very high touch and intensive and requires a capacity that our local offices lack with their limited scale.” (See Figure 2 for a breakdown of Public Allies’ revenue sources.) Although individuals have not been the largest funders for Public Allies, they have played an important role, giving mostly unrestricted funds. When a financial crisis in 2000 almost forced the organization to close, a board member stepped in with gifts to cover over $200,000 of expenses. The organization moved headquarters to Milwaukee, which cut operating costs dramatically. It also pared its national office staff down from seven to four and cut other expenses to eliminate $370,000 in
  • 32. accumulated debt from sites. 14 This information is confidential and was prepared by The Bridgespan Group solely for the use of our client; it is not to be relied on by any 3rd party without The Bridgespan Group’s prior written consent. Figure 2 1998 1999 2000 2001 2002 2003 $4.2 $5.3 $5.1 $7.1 $8.8 $7.3 0 2 4 6 8
  • 33. $10M Public Allies revenue Government Foundation Individual Corporate Other (incl. partner fees) Budget surplus (deficit) ($M) Annual revenue growth -$0.1M N/A -$0.1M 26% $0.0M -3% $1.4M 39%
  • 34. $1.7M 23% -$1.4M -17% Note: Revenues are recorded on accrual basis in which multi- year pledges are booked in the year received and deficits may be offset by payments of previous pledges Source: Organization internal data “In our first eight years, Public Allies subsidized $1.2 million of site losses. By 2000, it caught up to us. Things got better for a few years, but in recent years, we have again had to subsidize site losses with unrestricted funds,” Schmitz says. “This is an unsustainable and un-strategic way to operate. When you’re in survival mode, you delay and divert resources from projects that move you forward and strengthen the organization to instead cover day-to-day costs just to keep the doors open.” Public Allies’ local budgets tend to be very tight: Ally stipends and benefits are 57
  • 35. percent of expenses; personnel (each site has an executive director, one program manager per 10 Allies and a few sites have an additional administrative position) are 32 percent of expenses; fixed operating costs (rent, copier rental, etc.) are 7 percent; and the remaining 5 percent covers everything else, including Ally training, graduation ceremonies, office supplies, postage, and other “discretionary” expenses. When fundraising shortfalls are discovered, there is little room to cut expenses, except personnel, and program staff are two-thirds funded by AmeriCorps. “The structure of our local site budgets makes it difficult to do much 15 more than cover the losses if you want to complete the program year,” Schmitz adds. Public Allies is now working to improve its individual donor strategy, rolling out a
  • 36. campaign in which sites will receive $1 from national for every $2 they raise. Local boards are also being encouraged to focus more on fundraising. But this national fundraising strategy is challenged by the institutional design of local control. Dawn Hutchison, who was recently hired by the national office to increase individual and foundation funding and who used to work at Jumpstart, notes, “At Jumpstart we would say, ‘This is what we’re doing.’ At Public Allies, we say, ‘Here’s an opportunity — do you want to participate?’” Public Allies has achieved greater success with foundations, but funding streams for “leadership development” are challenging to navigate. To Schmitz, the problem stems from the fact that a “leadership development organization” is difficult to explain. “The complexity of our model allows us to fit in many funders’ ‘boxes,’ yet not fit neatly in any one ‘box.’ Local funders are more likely to fund the direct service of our members than their leadership development.
  • 37. Fundraising for a leadership development program is more analogous to a school than a direct service organization, as the impact on our participants grows over time.” Public Allies has tracked long-term results of their participants which has helped them make the case for such support. CAPABILITIES Public Allies has expanded its national office staffing in recent years beyond what they planned in 2001. Good people were brought on board and Public Allies figured out how to use their assets to strengthen the organization. For example, Schmitz came to the organization as a local site director in Milwaukee, and then became national vice president of strategy when the organization grew. In 2001, Schmitz became CEO after Chuck Supple moved to California to work for then- governor Gray Davis. Schmitz decided he would only take the CEO position if
  • 38. Public Allies moved its headquarters to Milwaukee. The board agreed. 16 The organization has had three leaders in a little over 10 years, a level of turnover that makes it challenging to keep momentum going for the program, and to keep the new sites aligned with national office’s goals. Schmitz estimates that his time is split as follows: 30 percent on fundraising, 25 percent on general management, 20 percent on external relations and communications, 10 percent on program strategy, 10 percent on government relations, and 5 percent on the board. The organization conducted strategic plans in both 1997 and 2001, both of which helped guide its hiring. Public Allies hired an IT staff member after working with Cisco to overhaul its technology infrastructure and to build a system for local site evaluations. Specialists in development and program evaluation were also brought
  • 39. in. A government-relations position was added because of the organization’s reliance on AmeriCorps funding. Because Schmitz was becoming stretched too thin, over the past two years Public Allies has added a senior management layer, hiring vice presidents of development, continuous learning, and leadership development. These additions have enabled Schmitz to spend more time on fund development activities. The chief operating officer position has been the hardest position to hire for. One person hired for the job did not work out, so the organization is still looking. The 2001 strategic plan did not envision all of these new positions. “As we built our infrastructure, we outgrew the capabilities of some of our staff, meaning that some folks needed to be let go with growth,” says Schmitz. Weaver has put together a new “institute” to train and develop local executive directors and program staff, with the goal of giving people
  • 40. preparation to move up the career ladder. After six years, Weaver will be leaving Public Allies in a few months to pursue either another job in the nonprofit sector or further education. “People should always be advancing in their careers,” he says. He believes there should be more internal promotions within Public Allies, or else voluntary turnover, once people hit an experience ceiling. Additionally, Schmitz has begun planning for his eventual succession. Public Allies also changed the nature of its board. Schmitz recalls that during his early days as CEO, the board had great energy, but it wasn’t very demanding. This 17 “rubber-stamping” board led Public Allies through the transition to greater professional management, but it lacked diversity and experience with growing nonprofit organizations. In 2002, the organization transitioned
  • 41. to a “tough” governing board, with a new board chair. “The board needs to be managed and engaged just like the staff,” says Schmitz. “They definitely need more attention.” Key Insights Finding the right local structure. Public Allies has struggled with the appropriate level of control and decentralization with its local sites. The organization is currently transitioning to a licensee model in which partner organizations carry more of the administrative and financial burden for local sites. Public Allies sees itself now as replicating a program not replicating an organizational model. Relying on government support. Because it depends heavily on one funding source (i.e., AmeriCorps), Public Allies has had to invest a great deal of time and energy into ensuring that that source continues. Diversification
  • 42. into other sources has not been easy because of a lack of clarity about leadership programs and how that fits into funders’ priorities. Planning for growth. In a change from the opportunistic approach to growth Public Allies pursued historically, the organization is now being more deliberate about planning for growth. It has established a new licensee model, a site-evaluation tool, and a geographic expansion process for potential partners. It also has a more replicable program model with the appropriate tools, processes, and support to implement it. Limiting financial risk. Public Allies’ branch structure has made the national liable for local fundraising shortfalls. The national board expects the sites to raise their funds and the local advisory boards expect the national to provide more support. With few costs to cut, the national covers site losses, often diverting funds from the activities that can build capacity to prevent such
  • 43. 18 future losses. The new licensee structure will streamline costs, add local capacity and prevent national from having to cover such losses in the future. Using low-cost technological solutions. Collecting data electronically via an intranet has allowed the organization to measure and report impact, to share information among sites, and to streamline administrative processes. In-kind contributions from Cisco Systems, Inc. combined with outsourcing and the online nature of the system helped lower the cost of creating and maintaining it. Running Head: NARRATIVE ESSAY 1 NARRATIVE ESSAY 3
  • 44. Narrative Essay Student Name Tutor’s Name Date Smith was impolitely stirred by the shrill buzzing of his phone. He switched on the lights and realized that it was 3:20 am early in the morning. Moaning, he reached for the telephone. It was Smith’s sibling, John. He realized that all was not well the moment his sibling talked. John's unusual voice at that time revealed that he was at Saint Mary’s Mission clinic with their mom. On that night their mom was restless and had gone to the kitchen to fetch a drink when she slipped fell on the floor. The incident fractured her arm and dislocated her lower leg. Fortunately, the hot beverage didn’t spill on her. When John and his spouse Judith were stirred by the clamor from the kitchen, they hurried to find out what was happening, just to discover their mom on the floor. Smith was shocked by the entire incident. His mom was in her eighties and such fall could seriously harm her. "How is she? What did the doctor say?" his voice trembled with nervousness as he made the inquiries. John gave no distinct answer since
  • 45. they had just barely reached the infirmary. He just realized that she was in critical condition. Smith quickly woke his spouse to reveal to her the news. In spite of the fact that he seriously needed her moral support, he realized that she needed to remain behind to take care of their kids. As Smith headed to the infirmary, he hoped that his mom would be okay. Reflections of how great his mom is made him shed tears. He simply needed to get to the infirmary to be with her. Reference Skwire & Wiener (2007). Student's book of college English: Rhetoric, readings, handbook. New York: Pearson Education. Kathryn (2011). Successful College Composition (2016) Writing for success. Georgia: Saylor.org. Narrative Essay This essay explores the Narrative Mode, which is perhaps the most natural style of writing for most people. One of the goals of the narrative form is to allow readers to feel as if they are not simply reading someone else's story, but that they are somehow part of it. Unlike simply telling a story though, a narrative essay has a specific piece of information to share, a lesson for the reader. There should be a clear reason for your telling the story. This is where the “essay” in the narrative essay becomes apparent. Your assignment this week is to write such an essay. Refer back to your outline of a significant event that you wrote for W2. Keep in mind that you are writing a story and it is important to
  • 46. freely tell your story. But, this is still an academic essay. The goal of your story is to support a clearly stated thesis/lesson for the reader. As such, your tale should be wrapped in a clear introduction and conclusion. Criteria Your essay should contain the following basic features: An introduction with an attention grabbing opening (hook), a well-defined message or argument (thesis), and any background information the reader needs to fully understand your story; Body paragraphs which a tell the story of your clear and specific, singular event that illustrates the essay thesis; Vivid language that works to recreate the event, including descriptions of where the event took place, the people who were involved, and the things these people said and did; A conclusion that briefly implicitly or explicitly reviews your story, reiterates the lessons you learned and that you hope the reader to learn, and provides a closing thought such as o why this event is still personally significant, o the state of your life since the event and how you feel about it, o future plans related to the event, o rhetorical questions for the reader, etc. In addition to the above, the final draft of your essay should be: From 250-500 words in length, typed in Times New Roman 12pt. font, double-spaced, with one-inch margins. Uses APA style (a title page and citations as needed which are modeled in your APA guide), Written in first person; Edited for spelling, mechanical, grammatical, and typing errors Please note: Writing takes time. Plan ahead to give yourself time to write multiple drafts of this essay. Get some feedback from the people you know or from Tutor.com to help you to craft the best essay you can in the time allotted.