CASE 11.1 MEETING YOUR MISSION: TO TAKE A PUBLIC POSITION OR NOT?

Jeanne Wolfe had been the executive director of Kids First (K1) for 8 years. K1 was a local education foundation that raised money to support public education in the Mapleton school district. Although the district was small with just two elementary schools, a middle school, and a high school, Mapleton schools were known for providing high-quality education. The community of Mapleton was proud of its schools and the reputation of the schools helped support a prosperous real estate market. In her role, Jeanne was tasked with raising money to bridge the gap between dwindling government funds and what was needed to maintain the high level of programming Mapleton residents demanded from their schools.

K1 was originally founded by a group of caring community leaders and alumni from the Mapleton schools who were concerned about the long-term impact of changing funding formulas for public schools that had been passed by the state legislature. Peter Litrentra, the founder of K1, had the foresight to realize the negative impact the new laws could have on small school districts in the future. It may not happen for some time, Pete warned. But we need to act now to ensure we have a way to make up for reduced funding down the line. With that idea, K1 was born.

The bylaws of K1 outlined the purpose of the nonprofit organization, which was to ensure that every child in the district received an outstanding education. To root itself in the community and to differentiate itself from traditional parent groups like the PTA, the nominating committee of the board adopted a policy that the board of directors must include at least four local business owners. This helped ensure a broad diversity of perspectives would be present in the governing of the organization. That strategy served K1 well in its early years as business owners sponsored many K1 fund-raisers and activities. After 5 years, K1 hired Jeanne as its first ever full-time employee. After her first year, Jeanne hired a part-time bookkeeper and a part-time special events coordinator. K1 quickly became a favorite charity of almost everyone in town. Jeanne often told her staff, Our reputation is everything to us. As long as I never read a negative letter to the editor about K1 in the Weekly Journal, I know we are on track.

In the early years of her job at K1, Jeanne was focused on raising money for what she called the extras. When a classroom wanted to take a special field trip or the art teacher needed new supplies, the money from K1 bridged the gap. Monies raised by K1 were also given out in the form of innovation grants to teachers who wanted to try new things in their classrooms. The bulk of K1s money was raised through two special events: a golf tournament and a very large black-tie dinner. When all was said and done, K1 was reliably returning $350,000 a year to Mapleton schools.

In her third year on the job, Jeanne received a request to meet with Dr. Richard Alvarez, the Superintendent of Mapleton schools. As she entered his office, Jeanne noted that the normally good-natured Alvarez looked troubled.

Jeanne, Alvarez began, I wanted to make you aware that we have just received a revised budget from the state that does not look good. We are going to have to make some midyear cuts that are going to be quite painful. And next year looks even worse. We are talking about cuts to core programs and we are going to really need K1 to help us offset these cuts.

How much are we talking about? Jeanne asked.

Somewhere in the $500,000 range now and upward of $2 million next year Alvarez replied. We can absorb some of it by asking a couple of teachers to take early retirement, but if we dont find a way to guarantee the rest by next fall we will be increasing class sizes and cutting everything but the most basic programs. To get us through these first midyear cuts, the school board is hoping you could help us with a special appeal for now.

Sure, Jeanne said. We could do a targeted save our schools appeal. It would be a stretch for us, but I think the community would respond favorably.

Alvarez looked somewhat relieved. Next, he told Jeanne, I also wanted to let you know that we will be moving forward with a parcel tax initiative in the fall to help guarantee future funding. Essentially it amounts to asking folks to pay $125 more per household into a special property tax fund that stays right here in our community. As you know, they have been very successful with these up north.

Knowing the conservative nature of Mapleton residents, Jeanne said, I think that a parcel tax might be hard to pass here, dont you? Just think about the new library bond that went down in flames in the last election

Well, if these folks want to protect their schools and their property values, they will have to jump on board. There is no way we are going to make it otherwise. You all really help us, so I mean no offense when I say this, Jeanne, but no amount of bake sales or special fund-raising is going to be able to fill the gaps we are looking at in the coming years. To tap the really big money we are going to have to go for the parcel tax. I am hoping that K1 will endorse the project and really help us get out the vote.

Jeanne nodded. Trust me, Im with you, Dr. Alvarez. Just the idea of trying to raise that kind of money in this small community makes me dizzy. Ill take your ideas to my board at our monthly meeting next Wednesday and let you know their thoughts.

Prior to the board meeting, Jeanne gathered data and wrote up a short brief for the board to review in advance of the meeting. She outlined the historical data showing a constant decline in school funding over the past decade and the stable but insufficient amounts offset by K1. Based on information provided by the district, she showed how a tax increase of $125 per household could yield the school district an additional $2 million in annual guaranteed revenue. Seeing this as a viable and worthy option, she recommended that K1 endorse the passage of the parcel tax. She e-mailed the information with the monthly board packet.

Within an hour of sending the packets, she received a call from K1s vice president, Frank ONeil, a local realtor and major contributor to K1. Jeanne, what is this you are sending out to board members? Are you crazy? Do you know how much we pay in taxes already, and now you want us to pay more? What gives you the right to tell the board we should do this? he hollered into the phone.

Unaccustomed to being spoken to this way by her board members, Jeanne was silent for a moment. She weighed her options in her head. Frank was known around town as someone you did not want as your enemy and had a reputation for giving money with strings attached. Secretly, Jeanne had mixed feelings when the nominating committee selected Frank as a candidate. However, he had been on the board for about a year, and things had thus far been smooth.

Excuse me, Frank, Jeanne said. I can hear that you are angry You bet I am, he interrupted her.

Jeanne began again. If we could step back for a minute and discuss this calmly I would appreciate it.

There is nothing to discuss, Frank countered in a somewhat calmer voice. K1 is a neutral organization. We are a nonprofit and have no business getting into politics. And if we did get involved, especially in something like this, we stand to lose a lot of donors... people like me, Frank asserted.

They spoke for a few minutes more, and Jeanne did her best to get Frank to understand that she was providing the board with her professional opinion based on her knowledge of the organization, its mission, and future trends in education funding. If having the best schools and providing the best education possible is truly our mission, then, in my opinion, a parcel tax is the only way we can get there, she told Frank. Id say its almost incumbent on this organization to support this initiative.

I dont see it that way at all, and I for one will fight this tooth and nail with the rest of the board. If they vote for, this I will quit! Frank exclaimed before disconnecting the call. Jeanne slumped down in her chair, wondering how she was going to contain Frank, have a productive board meeting, and avoid a potentially ugly fight in her tight-knit community.

Case Questions

1. Jeanne told Frank that since the parcel tax was directly linked to the desired outcomes of K1's mission it was incumbent upon the organization to advocate for the tax. To what extent do you believe this is true?

2. Do you think the K1 board should vote to support the parcel tax? Why, or why not?

3. What are the aspects of the case that must be considered?

4. If the board decides to engage in lobbying, what is K1 legally allowed to do in this situation?

5. Should the board decide to support the tax, what are some strategies that the organization could consider to make the process successful and keep its favorable reputation in the community?