Structural and Fiscal Characteristics of Social Services Agencies

1. Structural and Fiscal Characteristics of Social Services Agencies By Margaret Gibelman

2. Types of Organizations Not-for-Profit Public For-Profit Boundary Blurring � De-federalizing & Purchase of Service Trends

3. Where are the Social Workers? 40% of NASW Member work for non-profits Of 537,450 who identified themselves as social workers in the 1990 census 58,890 worked in the for profit sector 146,600 in the not-for-profit sector 331,960 in government NASW only represent about 33% of social workersNASW only represent about 33% of social workers

4. Public Agencies Generally associated with bureaucracies, such as large public assistance or child welfare agencies. Social Workers are State,County or Federal Employees

5. Private Sector Agencies Include both for-profit and not-for-profit agencies Sectarian � agencies under the auspices of a religious organization Nonsectarian- Not related to a religious organization More blurring (see page 115)

6. Nonprofit Organizations Based on philanthropic support Includes: Arts, education and human services Has a uniquely American Flavor Variety of funding: contributions,grants, purchase of service & fees for service Governed by volunteer board

7. Privatization There is a growing preference for things private Based on the premise that the free market and heightened competition will increase efficiency and reduce costs. (The author says this is a largely unproven premise)

8. Mission and Operating Authority

9. Mission of Non-Profits Organizational Mission Responsibility of the Board of Directors Usually presented as the �Mission Statement� Not a static document � is periodically reviewed

10. Mission of Public Agencies The mission of a public agency is codified in statute May operate as sub-units of larger public agency

11. Mission of For-Profit The bottom line of profit rather than service raises serious concerns among human service professionals

12. Human Services as Business Human services incorporate business practices to survive and prosper Social Workers faulted for not being business savvy Nonprofits can & should make a profit How profits are used- not to shareholders but back into services

13. Governance Each organization has a governing body responsible for setting its policies, defining its services, guiding its development and ensuring its accountability to the defined community is serves.

14. Nonprofit Governance Nonprofit organizations � governance function resides with the Board of Directors Policy is the board�s major means of providing a framework and guidance for the organizations overall direction. Management is is delegated to CEO/Ex.Dir. Confusion of roles not uncommon For-profit organizations may be a Board of Directors or Owner/Operator For-profit organizations may be a Board of Directors or Owner/Operator

15. CEO/Executive Director Role CEO is held responsible accountable for organizational performance CEO reports to the Board Board is responsible to evaluate CEO

16. What do you think? Professionally trained practitioners in the public sector tend to express the highest level of dissatisfaction because of the division of labor, hierarchy and procedural specifications Nonprofits are often the employing agency of choice because of the more professional atmosphere and greater level of participation in decision making

17. Financing

18. Purchase of Service It is estimated that 50% of services provided by non-profits are financed by government grants and contracts What are the implications?

19. Conclusion Traditional classifications of public,non-profit and for profit are more accurate in theory than in practice We are seeing the creation of hybrid agencies Administrators must be aware of the new realities