The Benefit of Pro Bono Partnerships
2009 might well be remembered as the Year of Service, the result of a convergence of several forces: President Obama’s call for a summer of service, a flood of workers finding themselves in between paid employment who are seeking volunteer positions to keep busy and gain new skills; an awareness of the terrible toll the economic downturn has taken on already resource-constrained nonprofits; and a cultural shift that has been underway in the US for sometime that places increasing value on and pride in volunteerism.
Corporate America has been getting more deeply involved in communities. In a survey of corporate volunteerism conducted by Deloitte earlier this year, 80% of US corporations provide financial contributions to nonprofits, and half provide business skills on a pro bono basis, up from 42% in 2008. Pro bono work on the part of corporations is nothing new. It’s been a staple of the legal profession for quite some time. However, in recent years, marketing, financial, and strategy consulting firms have jumped on the pro bono bandwagon and created more structured efforts to provide free services as part of their corporate social responsibility efforts. The Corporation for National and Community Service is spearheading a three-year national campaign—A Billion + Change—to help coordinate and elevate this cross-sectoral approach. They hope to generate more than $1 billion in pro bono services from a wide variety of firms.
On the face of it, connecting cash-strapped nonprofits with companies willing to provide much needed consulting on a pro bono basis might seem like a “no brainer,” but the reality of forging these relationships is much more difficult than it might appear. The findings of the Deloitte survey suggest a number of barriers.
Nonprofits and corporations alike place a higher value on financial contributions than on gifts of time, talent, and skills. Cash is easier to quantify and manage and feels more tangible to both sides. In addition, there often is a sense that if a service is free, it is not as good as if it were provided for a fee. Although nonprofits’ need for consulting services may be acute, they often lack the internal capacity—time and knowledge—to seek out pro bono resources. On the business and corporate side, there is often a perception that nonprofits don’t have a need for skilled volunteers.
Despite these challenges, there are many good examples of highly successful pro bono services delivered by businesses to nonprofits. Venture Philanthropy Partners (VPP) has been fortunate to develop very rewarding relationships with five Washington, DC-area companies that have provided valuable services to VPP investment partners. These services have included financial management, contingency planning, legal consulting, IT development, and accounting with an aggregate value of almost $2M.
Through our work, we have learned some valuable lessons on how to create partnerships that work for all parties.
- Establish good synergy. Fit is crucial between the pro bono service provider and the nonprofit organization. This involves taking the time to understand each other’s culture and work. Each party must come to the table valuing and respecting the work of the other.
- Align expectations. Set boundaries for the work just as you would in any business relationship. Be clear about the length of time for the engagement, the required investment of time for staff, and any competing priorities. Ensure that both parties are committed to do what it takes to make the effort a success.
- Clarify the scope. It is essential to define the scope of work, outlining what tasks will be performed, within what timeframe, and what deliverables are expected on both sides. The perception that pro bono is less valuable by both parties can, in some instances, lead to an inefficient process with mixed results.
- Put it in writing. Once a scope of work has been defined, create a formal engagement letter defining the terms of the relationship. Be specific about who will be engaged, include an action plan, and even quantify the estimated value of the project/assignment. That way, it is clear what is expected so that everyone is on the same page—and to ensure that both sides carry out their commitments.
- Ensure that the expertise offered and the opportunity are in sync. How many times have we heard from nonprofits that corporations want to donate goods and services that really don’t meet their needs? Perhaps a tech company wants to donate used computers and staff time to install them, but what the nonprofit really needs is accounting support. And conversely, how many times has a skilled lawyer or marketing person offered to lend their talents only to be asked to help with more administrative tasks that don’t take full advantage of their expertise?
- Quantify the value. It is important for corporations providing pro bono support to make sure that the nonprofits understand the monetary value of services and the high level of senior talent providing those services that otherwise would not be available to the nonprofit.
- Engage the board. We generally put the responsibility of identifying opportunities for pro bono work on the executive director or senior management team. However, there may be opportunities at the board level that are equally compelling. Perhaps working with one of their committees on a particular project or strategic priority related to their work may be one approach.
Now more than ever, the climate for giving and receiving pro bono services is ideal. As VPP has seen from the work of our pro bono service providers, when these relationships are structured well, the rewards for both parties are priceless.
- Carol Thompson Cole
Pro Bono Partnerships Produce Almost $2M in Value
VPP has developed partnerships with five companies providing high-quality pro bono services to nonprofits in the National Capital Region, resulting in approximately $1.9M in value to a number of VPP investment partners. These dedicated firms—Deloitte, LLP; VPP corporate partner Capital One Financial Corporation; The Carlyle Group; Lex Mundi Pro Bono Foundation; and Tatum, LLC—have delivered much needed professional services including financial management, strategic planning, legal consulting, IT development, and accounting.
Deloitte’s pro bono work in the National Capital Region is part of a $50M commitment the organization has made nationwide and reflects its deep commitment and strategic approach to community involvement.
“Contributing the skills and talents of our people,” says Gary Tabach, Managing Partner of the Greater Washington, DC, practice, “whether it’s skills-based volunteering, nonprofit board service, capacity-building philanthropy or thought leadership, is the greatest asset we can bring to our community.”
Locally, Deloitte has worked with three of VPP’s investment partners: SEED, Boys & Girls Clubs of Greater Washington (BGCGW), and College Summit. Professionals from the firm have helped SEED identify requirements and develop the roadmap for a knowledge sharing platform. Another team has collaborated with College Summit over 2 1/2 years, donating more than $1.5 million in pro bono services to improve and streamline their data collection process.
“From our standpoint, to have the kind of analytical and technological savvy that we get from Deloitte when they work with us is just a pure win-win,” said Dean Furbush, President of College Summit. Deloitte has a long-standing relationship with BGCGW, including donating more than 1,000 hours of pro bono service to build a website to manage the recruiting and assignment of volunteer resources effectively and efficiently.
Capital One, the first corporate investor in VPP, has also been deeply engaged in pro bono volunteerism in the National Capital region and beyond. Last year, Capital One pro bono volunteers provided more than $2 million in professional services to help nonprofits grow stronger in core business functions including Brand Marketing, HR, IT, Finance and Legal. The unique employee volunteer program is driven by a strong partnership between the company's Community Affairs department and in-house teams from the five core business functional areas. Community Affairs staff and pro bono volunteer team leaders meet on a monthly basis to discuss best practices and lessons learned.
Last year, Capital One volunteers worked locally with two VPP investment partners: the Latin American Youth Center and Centronía. Capital One provided IT Web development consulting to Centronía and is advising the Latin American Youth Center on Finance and Brand strategy.
It was the initiative of Vice President Cedric Bobo that brought the Carlyle Group, a global private equity firm, and VPP together. Bobo saw alignment between Carlyle’s corporate work and the mission of VPP—investing in high-performing organizations. He also saw pro bono engagements as a way for his first and second year associates, many of whom are new to the DC metro area, to become immersed in their new community and provide them an opportunity to give back. The Carlyle Group helped College Summit with financial management and contingency planning during the economic turmoil of 2008 and undertook targeted strategic planning work for BGCGW.
Lex Mundi Pro Bono Foundation utilizes a global network of top-tier law firms to match social entrepreneurs with pro bono legal services. The Foundation provides a critical resource that enables organizations to build the capacity necessary to bring about positive social change. In the VPP portfolio, the Foundation connected Mary’s Center for Maternal and Child Care with much needed expertise to evaluate a potential legal structure to maximize the value of their real estate assets. Lex Mundi Pro Bono Foundation has also helped VPP directly by sourcing pro bono assistance to conduct the legal review portion of its due diligence process in selecting new portfolio investments.
The relationship between Tatum, LLC, an executive services firm, and VPP gives portfolio organizations access to seasoned CFOs, CIOs, and other financial and technology leaders. As part of the engagement with Friendship Public Charter School, one Tatum CFO spent over 200 hours with the staff of the nonprofit, helping them review and improve their policy and procedures and refine their budget processes. The Tatum resource was also a valued sounding board on a variety of financial matters that Friendship was addressing.
“Organizations in the not-for-profit community have long served as Tatum clients, so it only makes sense for us to share resources and offer financial guidance when they need it most,” said Peter A.S. Pfeiffer, Managing Partner of Tatum’s Mid-Atlantic practice. “Many nonprofits are struggling with a lack of funding for programs and infrastructure during this recession, so we are taking our philanthropic efforts to the next level by allowing our professionals to directly effect change through this innovative approach.”
“One of our mantras at VPP is leverage—connecting our investment partners to additional resources of capital and strategic assistance to fill needs and help take them to the next level. We are very pleased and proud to work with each of our preferred pro bono providers and strive to make the engagements successful and valuable to all involved,” said Eleanor Rutland, COO of VPP.
Editor’s Note: VPP has benefited from strong partnerships in many forms since its inception, including deep relationships with strategic partner McKinsey & Company and corporate investor, Willkie, Farr and Gallagher, LLP. We will report further on these partnerships in future editions of VPPNews.
Leadership Changes
 BGCGW Announces New Leadership
Thanks to Kerrin Torres, Communications Specialist, for this update.
Boys & Girls Clubs of Greater Washington (BGCGW) announced that Martin (Marty) Alloy has replaced Ken Slaughter as Chairman of the Board, and Ms. Pandit Wright, Interim President & CEO, has been named President & CEO, effective July 1. Both Wright and Alloy are longtime members of the BGCGW Metropolitan Board of Directors.
Alloy is founder of Stanley Martin Companies, the largest private homebuilder in the Washington metropolitan area. A resident of Washington, DC, he is fully committed to the future of the Boys & Girls Clubs and to the children of the National Capital region. Alloy has been essential in helping BGCGW Club members receive theatre and music training in conjunction with The Kennedy Center and the Helen Hayes Foundation.
”Marty is an experienced, successful leader in our community and has been an ardent supporter of Boys & Girls Clubs of Greater Washington for many years,“ Ken Slaughter said. “I am confident he will provide superb leadership as BGCGW continues its important service to youth.”
Wright, a BGCGW Board member for 13 years and a former senior executive at Discovery Communications, has served as interim CEO since April 2009 when BGCGW announced a major restructuring process.
“Pandit Wright is an excellent choice for President & CEO of this organization and possesses the leadership skills and background so important for building a bright future” Slaughter said. “BGCGW has made significant progress during her term as Interim CEO and will continue to improve program standards focused on vital issues, such as youth obesity, gangs, teen pregnancy, and more. As I transition out of my role, I am confident that Marty and Pandit will work to take BGCGW to new heights in service to DC area youth.”
Awards & Recognition
 Mary’s Center Celebrates First Anniversary of Maryland Site Thanks to Lyda Vanegas, Communications and Advocacy Officer, for this update.
Mary’s Center for Maternal and Child Care celebrated the first anniversary of its Silver Spring, Maryland, location on July 9. More than 60 people attended the event, including Montgomery County and US government officials, community leaders, funders, clients, staff members, and media personnel.
Since opening in 2008, the Center has met critical needs in health care, education, and social services for more than 2,500 residents in Montgomery and Prince George’s Counties. One client shared the story of her husband who had two heart attacks, an open heart surgery, lost his job for his health condition, and then lost his health insurance. For two years, he didn’t take his prescription medicine or visit a cardiologist because he couldn’t afford it. Then they found Mary’s Center and now both of them are receiving care.
“We feel very proud to commemorate our first anniversary at this location,” Maria Gomez, Mary’s Center’s President and CEO, said. “The increased volume of residents from Montgomery County and Prince George’s County who are coming for services to our Center is a live testimony to the urgent need for broader health care reform that can benefit the millions of families who lack access to adequate health care and social services in this country”.
The 3,600-square-foot primary care center, located at 8709 Flower Avenue in the Long Branch area, became the first Federally Qualified Health Care Center in Montgomery County, offering a full range of much-needed services to underserved communities in the region, regardless of ability to pay.
 Individuals from Mary's Center senior leadership team and board greet honored guests (photo by Lyda Vanegas). ”Our Maryland facility extends Mary’s Center’s 20-year experience to residents in Maryland who desperately need quality and culturally appropriate services,” Dr. Mark Fracasso, Mary’s Center’s Vice President of Medicine, said. “I am proud to report that as of today, we have 2,514 unduplicated patients, 2179 adults and 335 children. Our diverse staff has provided more than 4,500 medical encounters and nearly 1,000 social services encounters during this year of services.”
The site in Maryland has a multidisciplinary health care team providing women's services, including obstetrical and gynecological care, as well as pediatric, adolescent, and adult health services. The center also offers a broad range of social services, counseling, and health education programs to its clients.
"Mary's Center has been a wonderful asset to the safety net for our most vulnerable residents in Montgomery County. We look forward to our continued partnership in addressing health care and the social conditions that impact positive health outcomes for our residents in the Long Branch community and the county at large," Uma Ahluwalia, Director of Montgomery County Department of Health and Human Services, said.
 College Summit-NCR Celebrates Deloitte IMPACT Day
Thanks to Vinette Brown, Director of Development, National Capital Region, for this update.
On June 5, Deloitte, LLP celebrated IMPACT Day, an annual event when Deloitte employees around the world leave their desks and go into their communities to support nonprofits and share their knowledge and expertise.
In the National Capital Region, 10 Deloitte employees spent IMPACT Day leading a Creating Effective Leaders workshop for 30 eleventh grade students from College Summit-NCR partner, Largo High School. These students are among 520 rising seniors who will attend a College Summit Workshop this summer and return to their school in the fall as Peer Leaders, responsible for leading and promoting college-going culture. The group of Deloitte employees, led by James Luna, included Dave Scott, Josiah Jackson, Hugh Shepherd, Louay Youssef, Ashish Francis, Nancy Reid, Jessica Skinner, Eric Goldfarb, and Darcine Mason, a 2000 alumna of Largo High School.
 Groups of Peer Leaders worked with Deloitte employees on exercises designed to promote leadership and teamwork (photo by Vinette Brown).
Through discussions and exercises focused on trust, teamwork, and leadership, the future Peer Leaders were able to learn about their own leadership styles and how to most effectively work as team leaders and team members. A group of 10 current Largo Peer Leaders joined the group to share their experiences leading college-going culture in the school and provide words of encouragement. These 2008-2009 Peer Leaders succeeded in bringing Largo's college acceptance rate up to 80% and helped Largo win the 2008-2009 Deloitte Award for Creating College-Going Culture. They challenged the future Peer Leaders to use the $3,000 Deloitte prize to bring the college acceptance rate up to 100%.
At the end of the day, the students identified 10 problem areas at Largo High where they would like to see change and came up with bold ideas for creating the changes. The Deloitte team then gave this group of students an additional challenge: choose one of the problems and, as a group, make the change happen in the 2009-2010 school year. The students chose Largo's poor image in the community as the area where they could make the most difference. They will spend 2009-2010 as catalysts for change in their school and make certain that educators, peers, families, and community members know about and acknowledge the positive things happening at Largo High School.
Announcements of Note
LAYC Staff Member Attends White House Celebration
Thanks to Jorge Orozco for this first-person account of his visit to the White House.
In honor of Father's Day, President Barack Obama hosted a fatherhood meeting in the Town Hall Center of the White House on June 19. Many celebrities who are fathers were invited, as well as Congress men and women and representatives of organizations that work with fathers.
I was chosen to represent LAYC in this important event. Before the meeting, LAYC received special guests Tony Hawk, Jorge Ramos, and Denis McDonough who spoke about their experience as fathers. Once these celebrities spoke to our participants and signed autographs, I had the privilege of riding back to the White House with them. During our ride to the White House, I shared information about LAYC and all the wonderful things that we do for our youth and their families. Jorge Ramos was very impressed with the work that we do and said "I'd love to come back and visit." Emmy-award winning journalist Jorge Ramos, star professional skateboarder Tony Hawk, and Deputy National Security Adviser Denis McDonough visited LAYC to learn about the Center's programs and talk about fatherhood. The three men spoke to a packed community room about the priority that they place on spending as much time as possible with their children (photo by Cristian Gajardo).
At the White House, I had the pleasure of hearing the speech the President gave on the importance of fathers being involved in their children's lives. The President shared his personal experience of growing up without his father and urged organizations like ours to continue efforts that promote Responsible Fatherhood. The President also spoke about the importance of time that fathers spend with their kids and the impact this has on their lives.
After the President spoke, I had the opportunity to meet him and Vice President Joe Biden. The President stayed for just a few minutes after finishing his speech but Vice President Biden made time to talk to me. I told him that I worked for LAYC's Responsible Fatherhood Program, and he acknowledged the caliber of our organization. I told him that I was a young father and that I really believe in the work we do at LAYC. I told him that we need more programs and money for fatherhood because the number of kids without fathers is very high and continues to grow.
Being part of a fatherhood program and being a father myself, I am inspired to continue the work that I do even more now that I know the President is on our side.
- Jorge Orozco
 AALEAD Welcomes Famous Fathers
Thanks to Rick Chen, Manager of Development and Communication, for this update.
In honor of Father’s Day and the importance of fatherhood, President Barack Obama gathered several accomplished fathers, which included professionals from the entertainment, medical, and culinary industry, to have an open dialogue about their fatherhood experiences, which took place on June 19.  Students gave AALEAD t-shirts to the special guests from the Fatherhood Initiative (photo by Kendra Lee).
As a part of this initiative several of these fathers then visited specially selected DC nonprofit organizations, including Asian American LEAD
AALEAD youth and staff were fortunate to hear the experiences of Dr. Steven Rosen, a cancer researcher and Director of the Cancer Center at Northwestern University Memorial Hospital, and B.D. Wong, an Asian American actor who has appeared in several Law and order: Special Victims Unit episodes and was the voice of Captain Shang in Mulan. AALEAD was nominated to be a host for these renowned figures to discuss the importance of role models and dreams with youth in the DC area. AALEAD students were able to ask questions and take photos.
 CentroNía in Maryland Celebrates First Pre-K Graduation
Thanks to Mark Duer, Communications Manager, for this update.
On Friday, June 19, CentroNía’s Maryland site celebrated its first pre-K graduation. Twenty pre-K students dressed in blue caps and gowns danced and sang in Spanish and English before receiving their diplomas. The students performed “A Million Friends,” a dramatization of “Ol BB Otero, CentroNía Executive Director, welcomes the pre-K graduates to the ceremony (photo by Valentina Stackl).d MacDonald,” and the Baile de La Raspa dance for parents, friends,and distinguished guests including Montgomery County Council members Valerie Ervin and Nancy Navarro. Councilmember Ervin gave the keynote address to the graduating class and their families.
“High-quality pre-kindergarten education is critical to offset the challenges of poverty, language, learning disabilities, and mobility” said Ervin. “…I am proud to be here today at CentroNía with the children and families of the first graduating class.”
CentroNía’s Pre-K program has served the Langley and Takoma Park, Maryland communities since 2007.
Outcomes
CFNC’s Family Services Helps Families Make Gains
Thanks to Ryan Smith, Manager of Grants & Major Gifts, for this update.
When people think of The Child and Family Network Centers, preschool is typically the word that comes to mind, for good reason. Each year, CFNC provides nationally accredited preschool, free of charge, to nearly 200 children living in poverty, preparing them for success in school and in life. Yet CFNC also provides an array of family support services, including ESL classes, job placement services, and health services that give children what they need most: strong, healthy, stable families to nurture and support them in their journey through school and life.
The situations of the parents CFNC served this year were generally similar to years past, including poverty, limited English proficiency, lack of knowledge about how to access services, and lack of confidence in partnering in their child's education. However, this year also yielded a significant increase in the number of unemployed parents, likely due to the current recession. CFNC’s social workers, each with an average case load of 60 families, spent more time helping parents secure jobs, gain training to be more competitive in the job marketplace, and/or avoid or overcome foreclosure on their homes.
The results from these initiatives indicate a successful approach. Forty-one parents gained employment (compared to 14 one year earlier, an increase of nearly 200%); 20 parents enrolled in educational or job training programs (compared to 13 one year earlier, an increase of 54%); and 21 parents obtained appropriate housing (compared to 9 one year earlier, an increase of 133%). Additionally, 13 families in crisis situations who were unable to meet their basic needs from outside agencies received the support they needed from CFNC’s Family Services to maintain stable households for their children. By the end of year, 157 parents set and achieved at least one goal that led to improved parenting skills, a more stable home environment, gains in English literacy, and/or employment (61 of these parents achieved two goals and 63 achieved three or more goals).
To give CFNC’s social workers more time to focus on non-employment-related family needs, The Herb Block Foundation has provided a grant to fund a part-time, on-site job placement coach. The position, beginning this fall, will enable CFNC to provide more employment-related services, including workshops that promote soft (interviewing, timeliness, work ethic, etc.) and hard (resume writing and computer literacy) skills critical to securing and keeping a job.
Deloitte Report Highlights Missed Opportunity to Leverage Pro Bono Support
Nonprofits and corporations alike are overlooking a rich opportunity to offset the decrease in corporate giving dollars by utilizing pro bono and skilled volunteer support, according to the 2009 Deloitte Volunteer IMPACT Survey. The survey finds that although almost 40% of corporate executive respondents plan on spending between $50,000 and $250,000 this year on outside consultants and contractors, a full 24% of nonprofits have no plans to use any kind of pro bono or skilled volunteer support.
This is in stark contrast to the 95% percent of nonprofits who say they are in greater need of pro bono support. One of the major problems, according to Aaron Hurst, President and Founder of the Taproot Foundation, is that nonprofits do not know which companies, or whom within those companies, to approach for pro bono requests. This, combined with a lack of efficient volunteer programs among both nonprofits and corporations, explains the difficulties facing both parties when it comes to leveraging support from skilled volunteers.
To learn more about skilled volunteerism and pro bono trends and best practices, Deloitte encourages nonprofits and corporations to visit the Deloitte, Taproot Foundation, or Hands On Network websites.
New Report Looks at Charity Mergers
New Philanthropy Capital’s latest report, “What place for mergers between charities?” looks at whether mergers can contribute to a more effective charity sector in the UK. It argues that by bringing together organizations with similar missions, mergers can improve existing services, create new benefits, and save money. But they are also risky—if not done well, they can destroy value.
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