By Sekou “Koe” Murphy, MBA, BBA
What are mission-driven profits?
It simply means that an organization doesn’t generate profits for profits’ sake, but those profits are generated for a higher ideal. Such as being used to expand services to the needy, invest in its people (e.g., training or pay equity) or provide for a stronger balance sheet so that the company has enough cash/investments to survive the inevitable downturn in its business.
Most businesses have teams of people who generate revenues that are the catalyst for these mission-driven profits. But what about cost centers, like a finance department, that spend but don’t actually make any money?
As a chief financial officer for many organizations, such as Bread for the City (a charitable nonprofit in DC that provides food, healthcare, legal and social services), I have led finance teams that, by definition, were cost centers – because we didn’t generate revenues. And like most cost centers, we didn’t think of ourselves as being able to help produce mission-driven profits.
But we can and have. It just takes the form of lowering costs, which has the same effect as increasing revenues, but ideally, without sacrificing jobs or quality of service.
In the past, we’ve been able to do such things as properly classify staff for workers compensation insurance, which lowered premiums, found new vendors that were more aligned with our mission and values, and improved our cash management procedures, all of which saved over $1 million. Then it hit us, “How many jobs did we just support so that the organization could fulfill its mission?!”
At the National Association of Social Workers, we continue to produce savings so that NASW can provide critical advocacy for social workers, such as the social work interstate compact, improving medical reimbursements for clinical social workers, and student debt relief.
This is work in which dues just don’t completely pay for. But it’s mission-critical work that someone has to do. I’m thankful that it’s
NASW!
Through effective cash management, reallocating costs to lower our tax liability and shifting more support services to our NASW Foundation, we were able to save over $700,000.
Here’s the powerful thing. Those profits are automatically reinvested in fulfilling the core mission. For NASW, it’s to enhance the professional growth and development of its members, to create and maintain professional standards, and to advance sound social policies.
Sekou “Koe” Murphy is NASW’s Chief Financial Officer.
