For some organizations, a volunteer-based structure suits its mission just fine. Typically, these scenarios presume a grassroots or community-led initiative, whereby a group of people come together over a shared need and then work collaboratively to meet it. The simple, intimate nature of the work and high level of mutual commitment are some of the benefits of these voluntary initiatives.

Yet, for many, there comes a time when hiring staff for pay becomes a serious consideration. Whether for expansion, funding or sustainability purposes, volunteer-run nonprofits often transition to a pay for-hire structure. But what does that decision entail? What are the challenges? And how best to pursue that transition?

Be flexible

For Sheila Biggers, board member and president of Take a Hike Youth at Risk Foundation since its inception in 2000, the transition was part of the organization’s natural progression. A full-time alternative education program started by volunteers that engages at-risk youth through a unique combination of adventure-based learning, academics, therapy, and community involvement, the organization realized growth was necessary about eight years ago. “We decided we needed more resources,” Biggers says, explaining how a donor-funded expansion was the ultimate catalyst in transforming from 100% voluntary group to one led by a part-time executive director.

At first Biggers left her job and took on the role. But she maintained her consultancy, hiring a coordinator part-time to help out. The flexible arrangement was key. “Having an organization that was entrepreneurial and flexible — that focused on outcomes, not just structure — allowed us to leverage that money far more than we would have with one person,” Biggers says. “We were able to get different skill levels all working on file.” The high level of trust among those in the organization helped too.

She eventually returned to her role on the board and the coordinator became the fulltime ED, a position Biggers was grooming her for since the start. Looking to grow again, the organization is currently taking stock of their resources to see what’s possible in terms of hiring. “Our model is evolving, we know we need more resources but how it looks is yet to be determined.”

And while their voluntary committees are vital, “paying good managers in any sector is what, at the end of the day, brings results,” states Biggers. What’s more, for an organization to be truly sustainable, leadership at the staff levels is needed.

Keep supporting your volunteers!

But don’t forget about those essential volunteers. Always ensure they remain supported through any transition. “It is critical to consult with volunteers, find ways to make sure that they can continue to have a meaningful involvement with the organization in a way that supplements what the new employee is doing,” says Alexandra Snelgrove, senior consultant at Aperio. “A clear communication plan should be developed to explain the rationale for the transition and an action plan going forward.”

Susan Bowen (*not her real name), who was ED of an organization that transitioned from a voluntary to paid model, would concur. “The staff of the organization needs to ensure that the volunteers continue to feel their active contribution is valued and important for the life and health of the organization.”

Are you on-board?

A strong supportive board is essential too. Members will invariably interact and act differently depending on the talent you hire. Chances are, it will go through its own transition too, Biggers adds. For Take a Hike, that meant transforming from hands-on roles to governance. “A lot people think boards should be one way or another but you need to ask what the organization needs,” she says. “Until an organization is fairly sophisticated, the board can’t be strictly governance focused.”

Perhaps so but, says Bowen, the board needs to continue to play an active role in raising resources for the organization. “The tendency may be to say, ‘we have staff now to do that’ and wash their hands of it. The board members, having been the connection to the people supporting the organization, are critical for an effective transition from volunteer to paid.”

A cooperative board was central to a similar transition for Peacebuilders International, an organization that works with kids in conflict. They run projects in schools, jails and community organizations with the goals of building community capacity and addressing conflict, violence and bullying. Founded in 2002 by executive director Eva Marszewski, the organization also built the first restorative justice clinic at the Youth Court in Toronto.

Currently boasting 20 to 30 trained volunteers, Peacebuilders decided to hire a program manager in 2004 and will soon count three staff members among their ranks. The hirings began thanks to a pilot project but then continued with the help of federal government funding and an annual fundraiser.

One of Marszewski’s support systems during the hiring process was a board of advisors she established. Their expert advice was invaluable. “But you have to be prepared to take all kinds of criticism too,” she says. Of course, trusting yourself is equally valuable. “Don’t just grab every piece of advice you get. Analyze it and put it back into context of what you’re doing.”

Communicate your needs

Talking about context, be mindful of the situation within which you’re hiring that first (or second, or third) employee. Staff are often needed to multi-task when an organization is first transitioning from being an all-volunteer organization. Make sure they know that – and are good at it. “Multi-purpose people are needed since you don’t have enough to properly staff everything,” says Marszewski. Assuming you want to grow, you’ll be unhappy if you hire employees who aren’t willing to go beyond their formalized job descriptions.

That said, Marszewski’s organization will soon be hiring a full-time volunteer coordinator and expects to be more specific with job expectations. It makes sense, say the experts.

“Job descriptions should be developed for each level of engagement in the organization so that each knows their roles and responsibilities, whether board, staff or volunteer,” offers Bowen. “The description should clearly identify the organizational mission, vision and values that each person is asked to subscribe to.”

“It’s a big transition,” echoes Marszewski. “If you’re not ready to be specific, you may not be ready to take on the next steps.”

Why hire?

For Marszewski, the readiness comes down to a natural evolution. “We accomplished a lot with very little and I don’t think we could have done that with a formal structure but now as we try to grow, we’re finally ready for it.”

Indeed, an organization’s growth — or reduction — is central to transitions. Just ask Ravi Sreedharan, one of the 16 voluntary founding members of the Fort York Food Bank. Launched in 1998 Sreedharan took on the very informal role of president and today sits as board chair. A couple of years into its inception, the group hired one of its founders as program coordinator and eventually had three employees on payroll.

The decision came down to capacity and strategy. When they received foundation and government funding to build up their advocacy and counseling services, it was time to get serious. Setting up an external board and hiring paid employees was part of that. Employees were needed for capacity-building initiatives. What’s more, says Sreedharan, “almost all funding that comes from government and foundations is tied to employees.”

Though employees present more responsibilities and potential management challenges, Sreedharan explains they didn’t experience many. As one of their own, their first hire was simple and logical enough. As for the second and third, a hiring committee was put into place. Their main priority? Ensuring the hires shared the cultural values of the organization. Of course, making sure there are enough finances in place to support the transition over a long period is vital too.

In fact, when funds eventually dried up, the organization decided to continue their programs on their own, voluntarily. They maintained that for a while and when things improved, they returned to one full-time employee.

Pay is not always the way

More importantly, they made a conscious decision to try not to pursue further funds from government or foundations, believing that volunteer-led models are sometimes most conducive to an organization’s mission. The food bank is grassroots, community and volunteer-driven, explains Sreedharan. If it wants to remain accountable first and foremost to the community, where its volunteers are based, the funding should come from there too.

If an organization wants to ensure its making the right strategic decision in its hiring (or not hiring) policy, Sreedharan suggests you ask yourself, “Are we effectively delivering programs and services?” If the answer is yes, that’s great but the next question becomes: Are there ways to improve it? “If so, does that mean having to hire people, or can we do it internally?” The answer will guide you forward.

Tips for hiring your first employee

Bowen and Snelgrove offer these additional tips:

• The governance structure has to be discussed and re-developed so that the ED can assume full responsibility for the work of the organization and can be accountable to the board for all the management and programmatic responsibilities.
• Financial management policies need to be developed that describe the parameters around the use of organizational resources for programmatic and administrative purposes.
• Financial resources need to be in place with appropriate cash flow to ensure that all the expenses of running an office, implementing programs and having staff can be resourced appropriately and in a timely manner.
• HR policies need to be developed that will support the staff to work to their best potential – fair and equitable remuneration in salaries and benefits, leave (vacation, bereavement, study, etc), professional development, etc.
• The board should develop and approve policies — financial, administrative and HR policies — as soon as possible so that staff are aware of their responsibilities as well as their equitable rights.
• Salary scales should be developed based on job descriptions and the salaries paid based on the scales, knowledge and expertise, not randomly determined based on negotiation.
• Regardless of whether an organization is a volunteer-led initiative or has paid staff, it is important to have a strategic plan with a clear strategic framework, including strategic directions. If these have not yet be developed, organizations should make sure to spend time developing a strategic plan as part of the transition.

 

Elisa Birnbaum is a freelance journalist, producer and communications consultant living in Toronto. She is president of Elle Communications and co-founder of SEE Change Magazine and can be reached at: info@ellecommunications.ca.

Photos (from top) via iStock.com. All photos used with permission.

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