Thriving vs. Challenged Organizations A Look at Three Different Stories AARP, NAACP and NARFE
AARP NAACP NARFE Founded 1958 1909 1921 Started 1946* 1909 1947** Members 40,000,000 300,000*** 250,000 Revenues 1,388,827,000 33,377,277 12,483,626 Dues Income 281,102,000 2,847,951 8,244,524 Growing Yes Maybe No Project that became AARP started by Retired Teachers Assn. ** NARFE started branching out from DC area around 1947 *** Membership numbers have not been clarified Based on latest available published annual financial reports
Outside Income is the key to survival Both NAACP and AARP derive most of their income from other than dues AARP Income from Dues is 20.2% NAACP Income from Dues is 8.6% Neither organization could survive on just dues money
AARP NAACP NARFE Governance Self-renewing* Election** Election Top Up/Down Down Down Up Chapters Social*** Yes Yes State Dual **** Yes Yes Regions Appointed Appointed Elected Board fills its own and other vacancies ** President and other officers are appointed. 64 member board. *** Chapters were established by members and dues are from $2 - $10 typically. No new Chapters allowed. ****Appointed volunteer President and appointed paid State Director
AARP Chapters are like social clubs Chapter Bylaws are based on a strict nationally imposed template State and Region personnel are selected by higher officers NAACP has fill-inthe-blanks bylaws with no exceptions allowed NAACP has recruiting goals for chapters (50 new adult/25 new youth/year)- results variable
Similar size Similar Org structure (same basic 4 levels) Chapters (Branches) consume much time and resources Internal friction Long string of deficits NAACP has a COO NAACP has no resident officers, per se 64 member board There is a need for NAACP branches due to major local issues
NAACP s greatest concern was total membership, not revenue Forced Branches to really recruit with mixed success Many low-cost or semi-free memberships Branches collect dues and remit. Youth member Prison membership With/Without magazine 13 year old can become a Life Member for $100 Focus is on numbers-some memberships only produce $7 for National
Discounted memberships created surge in members Non-dues income is crucial Need to pursue affiliate /corporate memberships Offer Federal Retiree & Professional groups an affiliate NARFE membership Corporate memberships (get advertisers on board)
Similar Org structure (same basic 4 levels) Internally elected boards with no outsiders Chapters consume much resources Similar recruiting and retention issues However, NAACP does not have our local leadership issues-just the opposite. Some Branches have leadership exceeding guidance. Professional officers Professional staff at all levels Self-renewing outsider board Corporate memberships Chapters being phased out. No new Chapters allowed. Focus on online activities. Many discussion groups Growing
AARP has more success without real Chapters AARP focus is on missions and service-not internal admin ARRP=Outreach, NARFE= Inreach Chapters may do as much bad as good in lobbying 2363 and 2364 have a higher rate of activism Chapters are collapsing- Federations are patching up many a Chapter
How did this Become that
The President of the National Retired Teachers Association wanted to get insurance for her members. She reached out to Colonial Penn. The rest is history.
The initial partnership with the insurance company brought in new blood, marketing muscle, and the NRTA founded the AARP. The NRTA is now a subsidiary of the AARP. Professional managers, a Board with clout and Rolodexes Pros at ALL levels Lobbyists at national and state levels Very strong service organization (tax aid, driving courses, etc.) $100 million profit last fiscal year
Ethel Percy Andrus, PhD., the first female high school principal in California, saw a need for health insurance for her fellow teachers She founded NRTA, AARP and a retirement housing complex
The turning point was having PROFESSIONALS to guide, market and lead. Colonial Penn taught and Dr. Andrus listened The Perks drove in members AARP is always expanding its base Age now down to 50 Corporate sponsorships Corporate memberships Marketing perks and services pays off BIG
Perks not marketed broadly Membership is narrow and exclusive, not inclusive Limited focus and vision Management has no / little business experience NEB has no clout, no Rolodexes Resident Officers also without clout and Rolodexes Chapters consume time and attention, provide few recruits and little support for the mission of protecting & enhancing our benefits
Addison Barry Rand is chief executive officer (CEO) of AARP, the world's largest nonprofit, nonpartisan membership organization dedicated to social change and helping people 50 and over to improve the quality of their lives. Mr. Rand is a dynamic leader and change agent who brings to AARP a proven track record of leading both multibilliondollar businesses and smaller, private equity-driven businesses. He has served as chairman and chief executive officer of Avis Group Holdings, CEO of Equitant Ltd. and executive vice president, Worldwide Operations, at Xerox Corporation. He serves as chairman of the Board of Trustees of Howard University. Mr. Rand began his career at Xerox as a sales representative in 1968. From there, he advanced to several senior positions within the company, completing an outstanding 30-year career as executive vice president, Worldwide Operations. He was responsible for the entire value chain for Xerox's $18 billion business, oversaw a workforce of more than 70,000 employees in over 150 countries and helped lead Xerox's financial revival resulting in total shareholder return at twice the rate of the S&P 500. Under his leadership, Xerox became the most diverse company in the Fortune 500 while also being named "America's Best Sales Force" and "Top Training Organization in America." And he was the driving force behind Xerox receiving the prestigious Malcolm Baldrige National Quality Award in 1989 and again in 1997. In 1999, Mr. Rand became chairman and chief executive officer of Avis Group Holdings Inc. He transformed Avis from the second-largest car rental company to the world's leading service and information provider of comprehensive automotive transportation and vehicle management solutions, dramatically increasing the company's value. His successful transformation of the company led to its being acquired by Cendant Corporation in 2001. Throughout his career, Mr. Rand has served on numerous boards, including: Teacher's Insurance Annuity Association/College Retirement Equity Fund (TIAA/CREF), Honeywell Corporation, Abbott Laboratories, Ameritech, Avis Group, AT&T Wireless Services, Agilent Technologies, Aspect Communications and Campbell Soup Company. He has served as the chairman of the Board of Trustees of Howard University since 2006 and has also served on the boards of the Urban Family Institute, the Congressional Black Caucus Foundation and the Garth Fagan Dance Theatre. He established the Helen Matthews Rand Endowed Scholarship, a $1.5 million program at the Howard University School of Education named in honor of his late mother, a Washington, D.C., public school principal, to encourage students to enter teaching careers in urban school areas. Mr. Rand continues to serve on a number of boards and advisory committees. He holds a B.A. from American University and an M.B.A. from Stanford University, where he was also a Sloan Executive Fellow. He has received honorary doctorate degrees from six universities. He was inducted into the National Sales Hall of Fame (winning the Thomas J. Watson Award) and is a recipient of the esteemed NAACP Image Award. He and his wife, Donna, have two adult children. Taken from AARP Website
Professional staffchosen by Board, not elected. Largely outside Board-people with clout and Rolodexes Focus on Perks and market them, co-brand, comarket, etc.. Get sponsors, affiliate members Experienced management at state level Local trained activists and service POC s at Congressional District level where possible, regional where not (like AARP)
More non-dues income; major focus Center on mission, get away from being a Chapter servicer Let the pros do it! More professionals to manage and be the Board leadership Let s turn it around using the successful model of Dr. Andrus