After months of dreary headlines about various LGBT nonprofits that can't manage their money, the news this week that Project Open Hand Executive Director Tom Nolan will leave the agency at the end of the year is worth noting. Nolan, who has led Open Hand for 16 years, said that he's at a point in his life where he wants to do something different. He is not stepping down, he and board Chair Laura Smith told us, due to any financial problems.
That has not been the case for the Academy of Friends, the San Francisco Pride Committee, or Lyon-Martin Health Services. Executive directors at all of these organizations have resigned recently; and coincidentally, all the organizations are now experiencing severe financial difficulties. AOF, as it prepares for its Oscar viewing party and gala later this month, still owes thousands of dollars to last year's beneficiaries. SF Pride owes thousands of dollars to beverage partners from last year's festival. Lyon-Martin is in week three of its desperate attempt to remain open and staff and board have no plan in place for the 2,000 or so patients if it is forced to close its doors. Meanwhile, community members are rallying to raise money to keep the clinic open, but there has been no update from the board about whether the effort and goal are realistic.
Project Open Hand should be the envy of many social service agencies, and nonprofit executives could learn a thing or two from the way it has operated during Nolan's tenure. The agency delivers meals to thousands of clients who are critically homebound, living with HIV/AIDS, or elderly. Nolan said the agency has met its fundraising targets; the 25th anniversary campaign last year raised $1.8 million above the organization's operating budget.
In talking with Nolan and Smith, some themes emerged: stability, collaboration, and devotion to mission.
As for stability, the agency does not have high staff turnover. Additionally, Smith said that the board began planning for a successor to Nolan about two years ago. In recent months, that plan has been put into action, which will culminate in hiring a new executive director later this year. Most importantly, Project Open Hand has a three-month operating reserve in the bank.
Collaborating with similar agencies is something Project Open Hand has done for a number of years. By working with Glide United Methodist Church's food programs, the San Francisco Food Bank, and others, all mutually benefited from reduced costs and bulk purchases. When one is threatened with budget cuts, all rally to support and stave them off. It's not easy operating a food program; food is hard to manage and must comply with health regulations for cooking and storage, among other considerations.
Nolan said that he has always run the agency with an eye on its mission: providing groceries and delivering meals to the clients. It was a big deal for the agency when it expanded beyond serving PWAs more than a decade ago – as well as controversial – but Project Open Hand was successful because it communicated with stakeholders and provided a viable plan.
It hasn't been a perfect ride – Nolan mentioned a couple of budget crises that had occurred and resulted in some staff layoffs and consolidation of duties. But that was a necessary decision to remain true to the mission of providing food to people who need it. All in all, Nolan's adept management has put Project Open Hand ahead of the curve and in sound shape as it awaits a new leader.