For more information, contact: Jeannette Thompson (314) 982-9104 www.aacsb.edu (What's New? Section)
Champions of Social Causes Gain Competitive Edge
ST. LOUIS, March 4, 1999 -- Keenya Toney, a recent MBA graduate from the University of North Carolina at Chapel Hill, was headed for a promising career in finance at a Fortune 500 company, when she decided to forgo the big-time salary track to achieve a different type of "return" on her education investment. Toney is among the growing number of Americans seeking to better their communities and address social problems through managing nonprofit organizations.
Recent studies show that during the past 30 years, 800,000 new nonprofit organizations have been established in the U.S. And, worldwide, Johns Hopkins University reports that nearly 19 million people are employed in the nonprofit sector in the 22 countries they studied, making the nonprofit sector a $1.1 trillion industry.
In an era of government cutbacks, champions of social causes are facing increasing competition for a decreasing pool of public resources. This challenge, compounded by heightened pressure from community stakeholders to be more customer-driven and fiscally responsible, has forced the nonprofit sector to explore for-profit business solutions.
Enter management education, formerly known as business school. Though historically it would not be uncommon for a business school dean, or professor, to sit on boards and advisory councils to nonprofits, it would be a stretch in previous decades to find business schools and nonprofits linked together in consulting and other more formalized business relationships. And even more rare was the perception that prospective MBA students would seek cross-discipline degree programs that combine two seemingly contradictory fields, or that an MBA graduate would elect to work for a not-profit organization.
Yet across the nation, universities and colleges of all sizes, rankings and geographic location are preparing MBA graduates to run successful nonprofits - a trend that strengthens the social fabric of our communities and ultimately, our economy. Following is a selection of schools who are actively servicing the nonprofit sector and individuals who are part of the growing number who have chosen to put their MBAs to work for social causes.
* University of North Carolina at Chapel Hill, Chapel Hill, North Carolina: Keenya Toney is a Harlem native, who after two and a half years in finance at IBM decided that she wanted to do something a little more socially oriented with her business skills. Still in finance, Toney is now the Executive Director of the University of North Carolina at Chapel Hill, Kenan Institute's Urban Enterprise Corps -- an organization which takes the top MBA graduates for two year stints in addressing the economic development needs of America's inner cities and their inhabitants. The program places MBA graduates in minority-owned businesses and urban economic development organizations to transfer managerial and technical know-how. For more information, contact Keenya Toney at 919-962-8869
* Wake Forest University. Winston-Salem, North Carolina: Three United Way agencies in North Carolina and Wake Forest University's Babcock School of Management have formed a unique partnership -- perhaps the first of its kind -- that will assist in the success of the state's nonprofit communities. For the next five years, the school will offer three full scholarships for its executive MBA program to members of the United Ways of the Central Carolinas, Greater Greensboro and Forsyth County. A total of 15 scholarships for the two-year executive programs will be provided; the total value of the education will exceed $700,000. For more information, contact Eric Whittington at 336-758-5030
* Harvard University, Boston, Massachusetts: The Initiative on Social Enterprise is a major effort at Harvard Business School focusing on nonprofit organizations and other private social-purpose enterprises. It was created to respond to the growing social and economic importance of the nonprofit sector and its ever-increasing interrelationship with business. The Initiative serves these constituencies through a broad portfolio of research, executive education, and MBA courses and programs. For more information, contact Jim Aisner at 617-495-6157
* Babson College, Boston, Massachusetts: Veta Weir was not your typical MBA candidate. With a background in and a passion for the fine arts, this competitive marathon runner in her late 30s decided she needed her MBA. Veta realized that by strengthening her foundation of business skills and studying strategic approaches in the for-profit sector, she would be better equipped to pragmatically attack the complex business situations that she often faced as the program coordinator for the Massachusetts Cultural Council. Veta credits the Babson MBA program with providing her not only with the strong business foundation she originally desired, but also tremendous confidence, enhanced credibility and ongoing support from the faculty, her fellow students and local alumni. For more information, contact Kate O'Halloran at 781-239-5495
* Clarkson University, Potsdam, New York: Investing in tomorrow's workforce is a top priority for rural upstate New York's major industries, particularly when counties such as St. Lawrence rank only 59th out of 62 counties in per capita income. That's why Clarkson University's School of Business has established a total of seven partnerships, among 11 school districts and 10 businesses, to prepare elementary and secondary students to face the challenges that await them in the highly competitive and rapidly changing global economy. For more information, contact Sandra Zuhlsdorf at 315-268-6425
* University of Texas at Austin, Austin, Texas: Project MIND, which stands for "MBAs Investing in Non-profit Development," is a unique program stemming from the Students for Responsible Business chapter on the University of Texas campus. Project MIND links students with organizations in the community that have short-term, definable business problems. During last semester, groups of students developed strategies and counseled six area organizations free of charge. For more information, contact Pam Losefsky at 512-471-3998
* Concordia University, Montreal, Quebec, Canada: Irene Tschernomor's diploma in health care administration gave her the background she needed to protect a local hospital from being closed due to government cutbacks. Creating an innovative plan to provide both public and private health care at the hospital, Tschernomor was able to keep essential services in the community. Tschernomor is a graduate of Concordia, where she received the Graduate Diploma in Administration, a unique program in Canada that offers a graduate specialization in the following areas: Arts and Cultural Administration, Sport Administration, Community, Public and Parapublic Administration, and Health Care Administration. For more information, contact Clarence Bayne at 514-848-2976
* University of Missouri-Kansas City, Kansas City, Missouri: With "Building Healthy Communities through Nonprofit Leadership" as its motto, the Midwest Center for Nonprofit Leadership, established in 1991, sponsors numerous initiatives to promote social entrepreneurship. Programs include the Fund-Raising Certificate Program, the Management Issues Forum, the Interactive Management program, Breakfast Forums, In-House Development Programs and Board Institute -- a series of education programs designed to help individuals better serve on nonprofit boards of directors. For more information, contact William Eddy at 816-230-2294
* University of Oklahoma, Norman, Oklahoma: The "Integrated Business Core" (IBC) is designed to provide undergraduate students at the University of Oklahoma's Price College of Business with hands-on experience managing a business, while at the same time, raising funds for and giving service to local nonprofit organizations. In conjunction with three linked junior-level core courses, IBC students are formed into 30 to 40 member companies, each of which is required to develop a plan for a profitable business, apply for a bank loan and implement its business plan. Profits from the businesses are donated to local nonprofit agencies. Between 1995 and 1998, 590 students have formed and managed 17 remarkably successful businesses. With loans totaling $39,540, students have generated a total revenue of $317,349, a total net profit of $145,919 and nearly 5,500 hours of community service. For more information, contact Larry Michaelsen at 405-325-5692
* Washington University, St. Louis, Missouri: Who says MBA students can't do good while getting ahead? Each year, approximately 75 students from Washington University's Olin School of Business prove they can. Cutting short their holiday breaks, the students return to campus to work on consulting projects for 20 or more local nonprofits, including the Herbert Hoover Boys & Girls Club, Center for Contemporary Arts and National Multiple Sclerosis Society. For more information, contact Russell Roberts at 314-935-4512
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