Reference no: EM132304797

Non-Profit Dilemma The Problem:

As new Executive Director of the Marta City Homeless Shelter, Tom Smith expected challenges, but not one like he faced after only sixty days on the job. He had just reviewed the quarterly financial statements with his regional director and the news was not good. The agency faced a certain $80,000 plus deficit placing it well below it annual $575,000 budget with only six months remaining in the fiscal year. There were no significant reserve funds to turn to offset the shortfall. The agency raised 65% of its money from special events and contributions with the rest coming from United Way.

Tom knew something had to be done quickly. The call from the national office regional representative told him a decision had to be made soon. Next week the Board of Trustees would meet and he had to let the Board President know the problem and proposed solution before the meeting. He wondered out loud: Could a new event raise money quickly? Were there any major contributors to approach? Out of a staff of 15 members were any non-essential? What services could be cut back, if any?

Tom Smith’s Solution:

Tom went to the board and presented a plan to downsize the staff and freeze funding on a temporary basis for two programs. Three support service staff positions would be eliminated saving $95,000 annually. The freeze on select programs would result in an annual savings of $28,000. If all went well the agency would have a balanced budget by the time it closed its books at the end of the fiscal year. Tom knew this would not be a popular decision with staff and clients, but the alternative was worse in his view.

Part 2

Read the problem and solution for the Non-Profit Dilemma case.

View the problem and proposed solution using your readings in Chapter 12 of Jones (1998) on devil's advocacy.

Note: Decision makers often will not have all the facts they desire to arrive at a solution. The same principal applies to the person who is the position of the devil's advocate. Therefore, use the facts that are available to challenge the solution(s) in a positive and constructive manner.

Challenge the solution(s) by focusing on the opposite viewpoint of the proposed solution(s). In this situation you may wish to consider items such as:

Is this the optimal solution?

Are there key items that could go wrong by adopting this solution?

Are there individuals or groups who could undermine the solution?

Post a 2- to 3-paragraph summary of the key points you arrived at through your devil's advocacy assessment of the Non-Profit Dilemma under the discussion topic “Solution Challenge.”