“Formation of a Committee to Find an Executive Director”
A Motion to be Considered at the Dec18 Board Meeting

This motion forms a committee to find an Executive Director. Material below explains why it is felt that NCF can afford an Executive Director.

Background:

Total cash expenses, including modems, internet fees, and compensation for a three person model (Executive Director, Office Manager, System Administrator) are expected to be $220K in 2001, and NCF is expected to start 2001 with $40K in the bank. Do members want the benefits of a three person model, and are they willing to fund it? Is there a credible plan with manageable risk that could raise at least $190K in 2001, preferably $220K or more? If so, it is reasonable to search for an Executive Director to lead the organization. If not, some other organizational alternative must be used until the organization can get back its strength.

Possible preparation for this discussion:

• NCF has been losing about ½ its members per year – while costs are essentially fixed, total revenue has declined (even though donations per member are strong and have even improved). What caused membership declines, and how easily could it be reversed? Could retention be improved? Could NCF attract more members to make up for attrition?
• Why do existing members donate? What could be done to earn even more donations?
• What has NCF done in the past to raise donations (directly and indirectly)? What worked? (What has not worked?) Refer to analysis by Chris Cope.
• How do members feel about more services (and more donations)? Refer to February 2000 survey

Note that while about 2/3 of members may not be opposed to a fee (see February 2000 survey), there is thought to be substantial benefit to NCF (and thus to members) to remain donation-based.

Some ways to raise donations:

• Introduce new services that would earn donations to make up the shortfall. Several exciting services are planned for 2001, including webmail and thin client. These are expected to publicize NCF and attract new members.
• Introduce “non-modem” accounts (eg., email services and web pages), to serve people who already have internet access but would enjoy association with NCF and support its work. This might appeal to people with internet access at offices but who want private email service and web pages.
• Introduce a “Friends of NCF” program to facilitate donations from people who would like to support NCF’s charitable activities but don’t need internet access or services.
• Members expect guidance from NCF about what to donate to keep NCF operating. The simplest way to increase donations is to explain to members why more donations would make sense, if even only temporarily (ie., until number of members can be returned to previous levels). This could be accomplished by better communications with members to explain what NCF is about, and changes to the donation guidance, such as:
1. Return to the ‘minimum contribution’ guidance (where members are asked to support NCF by either donations or effort). The renewal revenue forecast for 2001 predicts this alone (no other changes to NCF) would generate sufficient donations to end the year with a cash surplus of $20K.
2. Increase the current donation recommendation. Ignoring the intangible values NCF provides to society, an estimate of the value of NCF's dial-up services suggests that NCF’s access is worth more. Here is a renewal revenue forecast at $6/month, only $2/month more than in 2000.

To implement a change of renewals, the renewal cycle could be suspended immediately to give time (eg., a month) to develop and get feedback on changes, and to introduce new services and plans that would increase the confidence of members in the value of NCF. Good communication is the key.

Contingency plans:

• Ultimately, it is up to the members, who own NCF, to support NCF, so it is entirely appropriate to rely on members as the last resort. That’s why NCF can take reasonable risks (especially, perhaps, if members perceive that an honest effort was made and are sympathetic). Members have come to rescue NCF when called upon in the past.

Just changing the guidance in the renewal letter to that which was used successfully several years ago may be sufficient to cover expenses in 2001. Additionally, there are the other donation-earning items above. With a contingency plan also, it seem quite reasonable to proceed with finding an Executive Director to make it all happen.

Having determined the organization that would give members the best results, and that there likely is a credible way to fund it, the next step is to find someone to lead the organization. That person will be guided by NCF’s focus for 2001 and the rough plan sketched out above. Working out the details of the plan will be the person’s first job. Candidates and the interviewing team will evaluate together whether the candidate has what it takes to make a plan and execute it successfully.

With an ED in place, board members can return to governing the organization, knowing that there is a single person in charge working a plan, and members and the community can look forward to the benefits. Not bad, for only $6 per month!

Features of a good candidate should be listed, and might include:

• someone excited by the NCF vision, what NCF could be, and by the challenge and scope of responsibility of leading it there
• strong people & management skills
• internet literate (as a user), and at least some knowledge internet technology
• community-oriented
• able to inspire supporters, sponsors, members, and partners
• several years of experience in a similar role (experience is the best predictor of success)

Good candidates will be attracted by a challenging description of the job and by its unique potential and exciting scope, and may be willing to settle for a lower compensation level than they might find in other lesser opportunities.

BE IT RESOLVED that:

• a Search Committee be formed to find a person capable of performing the Executive Director role;
• the Committee be comprised of Sandy Campbell (chair) and Seline Herz-Fischler (chosen for their experience with interviewing) and one or two other people from the community recruited for experience with interviewing and recruiting;
• a job description, estimate of associated expenses (including staff support), and a timeline be developed and circulated to the Board;
• the start date be as soon as possible;
• compensation to be no more than for the Executive Director in 2000;
• regular reports be issued by the Committee to the Board; and
• before an offer is made, the package to be approved by the Board.