After Booting CEO, YWCA Starts National Search

The YWCA of Metropolitan Chicago announced that it fired its CEO, Christine Bork, and has initiated a national executive search to replace her.

According to Crain's Chicago Business, no specific reason was given for the change in leadership, and Bork did not return a phone call for comment. Pamela Bozeman-Evans, YWCA's chief of strategic initiatives, will serve as interim CEO. Before her work at the YWCA, she served as executive director for Blue Gargoyle Community Center.

"After careful and continuous review of the YWCA's operational, financial and strategic priorities and goals, the board of directors believes it is in our best interest to infuse new leadership into the organization," board President Gwendolyn Butler said in a statement. Butler also thanked Bork in the release, saying "We are grateful to Christine for her years of service and leadership to the YWCA.

The YWCA of Metropolitan Chicago supports around 138,000 Chicago-area women every year. Under the interim leadership of Bozeman-Evans, the organization will continue to focus on the issues of economic empowerment, sexual violence and support, early-childhood education, and racial justice.

You can read the full story about YWCA's national search in Crain's Chicago Business.

Study: Nonprofit Hospital CEO Pay Doesn't Affect Quality Of Care

A study by the New Hampshire Center for Public Policy Studies (NHCPPS) found that there is no correlation between the quality of care at nonprofit hospitals and the pay of their CEOs.

The Bangor Daily News today reported on the study that showed that the size of a CEO's compensation package correlated closer with the size of their hospitals rather than the quality of its charitable care. For example, the head of Lebanon, N.H.-based Mary Hitchcock Memorial Hospital -- $1.1 billion in revenue -- made $785,000 in 2009, while the CEO of Colebrook's Upper Connecticut Valley Hospital -- $15 million in revenue -- made a comparably smaller $150,000 that same year.

New Hampshire Attorney General Michael A. Delaney, who hired NHCPPS to determine how CEO pay has changed in the state's 23 nonprofit hospitals, said in a statement that “Given these hospitals exist to provide quality health care and are required to provide community benefit and charitable care in light of their non-profit status, the lack of such a correlation is a significant concern."

Rather than just relying on public Internal Revenue Service (IRS) filings, NHCPPS also made use of internal hospital records including CEO employment contracts, board minutes, executive memos, and W-2 forms from 2005 to 2010.

The study found that all of the nonprofit hospitals in the state met IRS standards for executive pay, except for a few instances. Three of them didn't provide written records from board meetings where CEO compensation was a topic, and two smaller institutions didn't use pay at similar hospitals as a benchmark for their executives.

You can read the full story in The Bangor Daily News.

How Much Do Nonprofit CEOs Make?

Nonprofits often conjure up images of volunteers and other hard workers who forgo the big payrolls of the corporate world to do work to help society.  The truth of the matter is, however, that most nonprofits don't run much differently than a typical business.

The Advertiser recently wrote an article about executive compensation for nonprofit CEOs.  They focused on Sandra Purgahn, president and CEO of Goodwill Industries of Acadiana.  She earned $132,825 in 2010, and that number was $15,000 higher in 2009 because of a performance bonus.  Purgahn and her husband, Charles, founded Goodwill of Acadiana in 1990, and have been in charge of the organization ever since.  Charles still works there as vice president of business services, earning $101,304 in 2010.  Two other VPs at Goodwill earned $91,768 and $83,748 in 2010 according to the organization's Form 990.

The board of the organization defended the couple's salaries to The Advertiser, saying they are in line with similarly sized organizations.  Even after their revenue dropped by $200,000 in 2010, Goodwill would still classify as a mid-large sized organization.  If you are interested in finding out the pay of other nonprofit CEOs, you should check out The NonProfit Times' 2011 Salary and Benefits Report.  You can also read the full story on Sandra Purgahn in The Advertiser.

Schumann To Leave Lutheran Services in America

Jill Schumann of Lutheran Services in America (LSA) announced yesterday she would leave the Baltimore, MD-based organization on December 31st.  She is leaving to pursue an opportunity at ParenteBeard, an accounting and consulting firm.  The company is developing a Mid-Atlantic nonprofit consulting practice, and Schumann will be heading it.  In announcing her decision to staff, she said:

“My work at LSA has brought together my faith, my passion for the church’s work in the world, my earnest desire that all people have the barriers removed that allow them to put their gifts in the world, and my real love for social ministry organizations and their leaders.  I am quite certain I will never have work I love as much.”

Prior to her work with LSA, Schumann launched Kairos Health Systems, a nonprofit post acute care alliance, and served in executive roles with nonprofit and for-profit organizations including on the senior team of Tressler Lutheran Services. She created programs in post acute healthcare, behavioral health and chemical dependency treatment. She has consulted with church organizations, healthcare, aging services and social service providers particularly around innovative programming for the future.  She was just selected to NPT's Power & Influence Top 50 for the ninth year in a row.

Nonprofit CEOs have seen a lot of changes in the past couple of months, both planned and unplanned.  We learned over the weekend of the tragic passing of Peter Goldberg of Families International, but there was also the death of former Red Cross CEO Bernadine Healey just a couple of weeks ago.  We also saw Steve Gunderson step down from the Council on Foundations, Carolyn Woo take over at Catholic Relief Services, and Gary Bass step down from OMB Watch. 

NPTtv Summary: We're Out Of Here: Two Nonprofit CEOs Call It Quits

Note: This is a summary of a story from the newest webcast of The NonProfit Times TV.

Two major nonprofit CEOs came back after the July 4th weekend to decleare their independence from their organizations.

Steve Gunderson, of the Council on Foundations, and Robert D. Reischauer, of the Urban Institute, announced they were stepping down from their positions. Gunderson, who was CEO for six years, announced he would be retiring effective September 1st. In an open letter on the COF website, he said it was “the right time for a transition.”

Reischauer, who lead the Urban Institute for 11 years, will step down as CEO at the end of 2011. During his tenure, the organization established the Urban-Brookings Tax Policy Center and refocused its interdisciplinary research on welfare reform for low-income working families.

Discussion: CEO Changes

We just posted a discussion on our LinkedIn profile about the recent CEO changes that have been occuring at nonprofits.  The question is below:

Earlier this week, Steve Gunderson, President and CEO of The Council On Foundations, announced he would be resigning in September. There have also been a number of CEO changes, like at Save the Children and Catholic Relief Services. What advice would you have for these new generation of leaders?

Feel free to start off the discussion by visiting us on LinkedIn.

Council on Foundations CEO Set to Step Down

Steve Gunderson, President/CEO of The Council on Foundations, has announced his intentions to resign his position on September 1st.

In a statement posted on CoF's website, Gunderson said that it was "the right time for a transition" in leadership.  He went on to say that he reached his decision after a lengthy discussion with Board Leadership.  No successor has been named at this time, but Gunderson is confident the Board will appoint a new CEO who will continue the organization's success and "propel the council to new levels of greatness."

Gunderson leaves behind a very impressive list of accomplishments at The Council on Foundations.  Among other things, he was responsible for helping the organization move from its DC offices to its current home in Arlington, VA.  He also added 100 members to their roster in the past two years, while maintaining strong retention rates at the same time.  Avid readers of The NonProfit Times will also know that he was named to our "Power and Influence Top 50" lists in each of the past five years. 

Gunderson's leadership will surely be missed at CoF, but executive transitions happen all the time as our readers know well.  Please feel free to post your reactions to this news in the comments section below, and remember to read the full story at The NonProfit Times.

Catholic Relief Services Gets New CEO

Nearly a week after Save the Children appointe a new CEO, Catholic Relief Services has a new executive of their own.  The Baltimore-based nonprofit announced last Friday that Carolyn Y. Woo will replace the retiring Ken Hackett as CEO of the organization.  Woo, 57, had served on the CRS Board of Directors from 2004 until 2010 and is currently the dean of Mendoza College of Business at the University of Notre Dame.  She will officially become the seventh chief executive of CRS on January 1st, 2012. 

The Most Rev. Gerald F. Kicanas, Bishop of Tuscon and Chairman of the CRS Board of Directors, said the following about Ms. Woo:

“Dr. Woo is a woman of deep faith with a strong commitment to the mission of the Church. She will bring exceptional abilities and gifts to the task of serving the poor around the world in the name of Catholics throughout the United States.  CRS is so blessed to have had Ken Hackett's leadership these 18 years, now to be followed by another outstanding faith-filled leader in Dr. Woo."

Woo, who was born and raised in Hong Kong, immigrated to the United States to attend college at Purdue University.  There she received her B.S., M.S.I.A., and Ph. D degrees.  During her six years on the CRS Board of Directors, she made several trips overseas to visit the organization's programs and staff.  This included a trip to Banda Aceh, Indonesia after the Indian Ocean tsunami.  She also made stops in Afghanistan, Pakistan, Ethiopia, and Kenya.  She released the following statement on her rise to CEO:

“I am honored to join an organization that is a true manifestation of the compassion of Jesus Christ and the Church's ministry of charity around the world.  I look forward to building on the strong accomplishments of Ken and the global staff of CRS.”

To read the full story, visit The NonProfit Times website.

Save The Children Picks Miles For CEO

Carolyn Miles will become the next CEO of Save The Children, according to a story just posted on The NonProfit Times website.  She will become the first woman CEO in the 80-year history of the organization when she assumes the position on September 1st.  Her rise to chief executive comes after it was announced that the current CEO, Charles F. MacCormack, would be stepping down after 18 years.  Here is an excerpt from the NPT story:

“Our leadership committee considered many extraordinary candidates for this position during a nationwide search,” said Anne Mulcahy, Save the Children's board chair and former Xerox CEO. “But it soon became very clear to all of us that Carolyn was the right choice to continue our important work on behalf of children in need and to create a new vision for the future. She has an in-depth knowledge of global children's issues, many years of experience in leading large organizations and is highly results driven. But most importantly, she has an authentic passion for our mission, to make lasting change in the lives of the children who need us most.”


Miles joined Save the Children in 1998, as associate vice president for sponsorship and marketing, and was appointed executive vice president and COO in 2004. Previously, she worked for American Express in New York and Hong Kong and was a successful private entrepreneur. She received an M.B.A. from the University of Virginia's Darden School of Business, where she now serves on the Board, and has a B.A. from Bucknell University. Miles is also on the Board of Directors of the Blackbaud Corporation.


“I am thrilled with the Board's decision and honored to be asked to head the organization I believe is making the greatest difference for children and families around the world,” said Miles.

To read the full story, visit NPT's website.

Nonprofit CEOs Earned Big Paydays in 2010

Who said it didn't pay to work at a nonprofit?

According to a review of annual nonprofit reports by The Buffalo News, nonprofit CEOs earned hefty salaries in the past year.  In particular, the salaries for nonprofit health insurers in Western New York were particularly high.  For example, James Kaskie, CEO of Kaleida Health, earned a whopping $2.3 million annually. 

Even more curious, however, was that some of these organization saw their CEO compensation increase even as their overall earnings decreased.  In particular, HealthNow President Alphonso O'Neil-White saw his pay increase 11% (to $1.83 million) in 2010, even though the organization's surpluses fell to $52.7 million after a 2.3 percent drop in revenues.  HealthNow explained this discrepancy by saying that the decrease in revenue reflected "strategic initiatives" to cut costs and improve services.  As for White's pay increase, they said this was justified by the HealthNow's performance in 2009, when the company posted a $62 million surplus.

Executive compensation is obviously a sensitive issue these days, when many families are struggling to stay on their feet, so this news is probably going to be outrageous to some.  Read the full article about CEO pay at The Buffalo News. 

Watch a New Episode of The NonProfit Times TV Today 1PM!!!

Watch Online at www.nonprofittimes.tv

In this webcast:
• Nonprofit CEO Gets 10 Years: CEO gets jail time for fraud.

• Feed The Children and Founder Settle Lawsuits: Larry Jones and Feed the Children have settled multiple, dueling lawsuits.

• Donors Want Travel, Dining From Charity Auctions: The top 10 items for online charity auctions.

• Watch online at http://nonprofittimes.tv

It take less then 7 minutes to watch the whole episode

Attracting the correct mix of minds to the nonprofit sector

This is a look back at an older NPTV episode.  Check it out here.

One issue that has always been a focus of discussion in the nonprofit sector is how to go about attracting the correct partnership of minds, particularly as it relates to board members. Getting this combination to operate efficiently can be a real challenge, not least of which when times are difficult. The issues under discussion have included salary for board members, the operational function that boards should exercise, and the adversity of members to risk. These issues have often been the cause of controversy.

Gaining some insight

According to Dennis C. Miller, President of Dennis C. Miller and associates and author of the new book entitled "The Nonprofit Board Therapist", paying board members beyond covering operational expenses will detract from the overall efficiency of the organization in question. He feels that boards should be more purposefully focused on assisting the organization in achieving its fundraising objectives so that the relevant vision and goals can be met more effectively. When a nonprofit consistently fails to operate at it maximum potential, Miller feels that it's a failure on the part of the board and the CEO. Dennis Miller feels that a new type of board member is necessary for a new era...one that is more open minded to new and innovative avenues of fundraising and operational strategies.

The new role of the nonprofit CEO

Miller goes on to say that the role of the nonprofit CEO in the current economic and technological climate is to ensure that the potential of board members is fully reached as it relates to their impact on the organization. This involves engaging them in discussion, seeking their ideas and asking pertinent questions. The most suitable scenario is where the CEO and board member operate as partners from a leadership point of view. A board needs to be highly enthusiastic and motivated, be willing to examine itself and it's performance, and be actively and personally involved in fundraising, according to Miller.