Change Or Extinction

Jerusalem/JTA

and be able to compete in the mar-
ketplace. This will require a radical
he recent economic melt-
shift in thinking by the leaders of the
down has created havoc
organizations.
among nonprofit organiza-
In the former world, there could be
tions that are totally dependent on
a clear distinction between those who
philanthropic dollars. Many organiza-
were being served and those who were
tions have developed a business model the prime sources of income. In some
entirely dependent on
situations, this reached
philanthropy, and it is these
extreme proportions,
organizations that stand to
where organizations were
suffer most if the economy
dependent on one family
continues its downward
or a number of families
slide.
who dictated the priorities
In times when finances
of the organization even
were abundant, this model
though this may not have
was successful particularly
been in the best interests of
among Jewish organiza-
their constituency.
tions, enabling them to
Since it was far easier to
Jonathan
provide social services to
raise large amounts from
Mirvis
the community that many
single donors than it was
Special
could not afford. Now that
to raise small amounts
Commentary
resources are limited, how
from multiple donors, the
can these organizations
multiple small donors
survive?
often have been ignored in favor of
Three key strategies seem to come
the larger. This has led to a systemic
to the fore:
danger whereby policy may be dic-
The first is to focus on large pools of tated by the powerful few who are not
small donors who support the endeav- necessarily in touch with the market
ors of the organization. They may be
needs.
past beneficiaries or their families
In the new economy, the economic
who appreciate the social value the
future of these organizations may be
organization is generating.
dependent on their constituency. Thus,
A second is to focus on earned
these are the first questions that must
income. It is critical that these orga-
be asked: Who is our constituency and
nizations examine their inventory of
what do they value?
services and affix fees for services or
If these organizations fail to be rele-
products where possible.
vant to their constituency and meet its
A third is seeking government con-
needs, they may find themselves bereft
tracts that are awarded to organiza-
of support, leading to their ultimate
tions that provide social services to
extinction.
the general public. While the financial
Thus the new economy may well
support from this source may be
lead to a healthy democratization of
considerable, we will limit ourselves
organizations, leading to a new rela-
to discussing the ramifications of the
tionship between the organization and
first two strategies.
those being served. The constituency
In suggesting the two strategies,
will see itself not only as beneficiaries,
we are assuming that the average
but also as "owners:' The organiza-
citizen in the new economy will con-
tion's leaders will be far more answer-
tinue to seek products or services of
able to this constituency, preventing it
value, will be willing to pay for them,
from making unilateral decisions that
and support their development and
may not be in their interests.
dissemination, if requested. While
It is the "small change" that will
choices may be far more discrimina-
drive this big change, ensuring that
tory than in the past, people ultimately we emerge from this economic crisis
will continue to make purchases and
stronger than ever. ❑
contribute financially to those organi-
zations they value.
Dr. Jonathan Mirvis is a lecturer at Hebrew
The common denominator of these
University's Melton Centre. He teaches
approaches is that for organizations to
social entrepreneurship to MBA, nonprofit-
survive, they will have to be relevant
management and education students.
and meaningful to those they serve

T

WHERE IMAGINATIONS

N WILD.

Friday Night Live!:

Saxophone ensemble—the Amstel Quartet—perform music
by Dutch composer Ivo Bol.

Saturday:

Make your own paper bag sculpture at the drop-in workshop_

Target Family Sundays:

Join award-winning storyteller Judy Simi as she tells tales about American families.

Now on view:

American Chronicles: The Art of Norman Rockwell

Programs are made possible with support from the Michigan Council

acq. for Arts and Cultural Affairs and the City of Detroit.

\

DETROIT

INSTITUTE

OF ARTS

5 200IN ei dward Ave.

3 1 3-83 3 7 9 0 0

-

Save a Child's Heart

International Photography Exhibit
March 1 3 — 31
Open to Public

Beaumont Hospital, Royal Oak
Coolidge and Thirteen Mile Road
South Entrance, Suite 100
Complimentary Parking,
South Parking Deck

Hosted by:
Beaumont Hospitals, Israeli Consulate,
Detroit Jewish News, Jewish National Fund,
Jewish Community Relations Council

www.saveachildsheartus.org

Log on to JNonline.us

giveaways • forums • calendars

VISIT JNonline.us

March 19 • 2009

C7