Bottom Line or Better Lives?

It’s a question for all those who do business, whether this business is in the for-profit or non-profit sector. A non-profit organization is in the business of providing services for society that donors can buy into. Often nonprofits service the individuals in society who have been excluded in the equation of a for-profit company’s bottom line.

The bottom line contains two aspects, purpose and profit. Profit is a final total of account, the last number on the income statement, and an aspect were most familiar with. The other covert aspect is a company’s mission statement or the foundational purpose and responsibility of the business.

Companies rank themselves somewhere along the spectrum between completely fiscally responsible to blindly socially responsible. So often, the profitable bottom line neglects its responsibility to society and purpose-driven companies and organizations hurt themselves by not prioritizing fiscal assets.

Yes, for-profit companies are important for economic growth and a profitable company will better society’s standard of living — but these improvements are not distributed equally to every individual in society. Non-profit organizations come in to help with this huge gap, and scrutinize them for every dollar they spend or earn trying to lessen it. Today we have new businesses coming in that are trying to position themselves in balance between generating profit and providing social impact, and realizing great success.

Nancy Bailey, a seasoned professional in business, communications, technology, and accounting, has worked in non-profits, governmental municipalities, and for-profit organizations for over 40 years. As someone who deals with cash flow for a living, she especially knows how the bottom line relates to and benefits the mission of the organization. She shares her experience and well-rounded view of business to give an opinion of where most individuals are being benefited by the bottom line:

Alexis: What are the difficulties with working in a non-profit business?

Nancy: The difficulties are mostly with lack of adequate resources, either financial or human. Since most non-profits rely heavily on fundraising success, cash flow, can be unpredictable and negatively impact overall financial stability. Shortage of adequate human resources to accomplish the mission, either in quality or quantity, forces existing staff to work harder and longer, or “wear more hats” to fulfill the mission’s needs. Volunteerism is also heavily relied upon to help bridge the gap to achieve the mission, but some organizations fail to generate an adequate volunteer base.

A: What do you enjoy most aboutworking in the non-profit or social sector?

N: I have always felt most at home working here. I feel it best fits my personality type: giving from the heart, meeting needs, and making the world a better place, instead of the constant focus on bottom line profit. I have often witnessed fellow employees be focused as one team in “mission spirit,” rather than pursuing their individual career success.

A: What causes are you passionate about?

N: I am most focused on improving the quality of life and life balance, inclusive of body, mind, and spirit. More and more organizations are embracing the premise that their employees are their biggest asset, and seek to invest in those employees by providing wellness benefits, flexible work schedules, and other work/life balance initiatives.

Many entrepreneurs and developing organizations , both for-profit and non-profit, fulfill this increasing organizational demand. Many grassroots efforts are appearing across the globe that support the emphasis of integration of mind, body, and spirit. Particularly growing in popularity and practice in the healthcare field and integrative medicine.

A: What would you change about the non-profit sector?

N: If it were in my power, I would enhance the quality and quantity of human resources that are attracted to the non-profit sector. This would greatly strengthen the services that could be delivered to accomplish the mission.

A: How important is mission-driven work for society?

N: I believe that non-profit work is paramount to the development and sustenance of our own culture, and to the understanding and bridging differences across the globe to unite and better humanity.

A: You’ve worked in both the for-profit and non-profit sectors, why do you choose to return to non-profit?

N: For some professionals who are personally career-driven, there is a certain stigma about nonprofits, that they don’t pay well or offer successful career paths. For those of us professionals who are drawn to nonprofits, our hearts connect with the mission, and the satisfaction of contributing to helping others is also part of the “compensation”, and success is also measured in value of services provided to other, rather than climbing the proverbial “ladder of success”.

I have experienced the feeling of deep connection with the mission and appreciation of serving with a non-profit. I have also unfortunately experienced the cold-hearted, superficial bottom-line motivation that often shuns customers and devalues customer service.

A: What’s your take on the resource disparity, the knowledge gap, and the overhead myth? How has this affected you in your work?

N: I definitely think there is a resource disparity and knowledge gap, and I have experienced this at many of the nonprofits that I’ve worked with. But I also have observed that the staff at these nonprofits, both paid and volunteer, use their creativity and ingenuity to maximize the value of the services their mission provides.

I do believe the overhead myth exists as it relates to some organizations; but, by the same token, I also feel strongly that an overhead benchmark should be developed and monitored in both profit and non-profit organizations. The nonprofits that I have been associated with have been extremely fiscally responsible. They assess the needs of the mission, develop a financial budget, and carry out the mission through appropriate spending, giving consideration to the status of funding income.

A: What have been your professional positions?

N: I have held positions as Accounting Manager, Controller, Chief Financial Officer and Vice President. I have also managed medical practices as Business Manager and Administrator. I have worked for many different nonprofits, the most well known being the YMCA and the Hospice movement (Nancy currently serves as Accounting Manager for a non-profit homeowners association on Long Island, NY).

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