[Kzyxtalk] How to Kill a Nonprofit -- Part 2

[Scott Peterson]

Dear Ms. Courtney,



This is a continuation from the GuideStar article here:



http://trust.guidestar.org/blog/top-strategic-mistakes-nonprofits-make-part-1



The second one listed is 'Not measuring outcomes.' Most of the outcomes



for KZYX are reported in the Form 990s. Like membership revenue. And



contributions. Before 2011, they were measured separately in the so-



called audited financial statements. But then they got rolled into



one category. So it became impossible to measure either one. You can



see that here:



http://www.kzyx.org/index.php/about-us/station-business/mcpb-bylaws-and-financial-statements



Under KZYX financial policy, three-year look-backs are supposed to be



available to the Board of Directors. You can see that here:



http://media.kzyx.org/mp3/Policies/MCPB%20Financial%20Management%20Policy%209-12-2006.pdf



According to that policy, the GM and Treasurer were supposed to provide



that information. Under Section 1.3. But the GM kept the records. Under



Section 1.2. From August of 2008 to June of 2015, that was John Coate.



But look at his GM reports here:



http://www.kzyx.org/index.php/about-us/station-business/general-managers-reports



and the Meeting Minutes here:



http://www.kzyx.org/index.php/about-us/station-business/meeting-minutes



As you can see -- if you cared to look -- there are no references at all



to any such look-backs. Nor was there any mention of Form 990s. Where



that data could be found. You'll see the occasional mention of 'audits'.



But the Form 990s admit they were never done. Nonetheless, Mr. Coate



never compiled that information into line items. Making it impossible



to measure his outcome. Which -- as we now know -- was profoundly bad.



Mr. Coate's defense was that he provided everything that the KZYX Board



of Directors asked for. There's a shed of merit in this argument. As



the General Manager, Mr. Coate reported to the Board. The policy set by



that Board is pretty clear: to provide the Board with those data. In



failing to do that, it was the Board of Directors' responsibility to



reprimand him for that failure. And if it continued, to let him go. So



the problem wasn't Mr. Coate at all. It was the Board of Directors.



If the KZYX Board of Directors had simply followed its own policy --



as folks like Sheila Dawn Tracey, Doug McKenty and John Sakowicz asked



for -- Mr. Coate's shortcomings would have been realized years ago. And



a quarter million dollars would have been saved.



But most of all, the Board of Directors should have measured itself. In



something called evaluations. According to the written policy here:



http://media.kzyx.org/mp3/Policies/MCPB%20Policies%20&%20Procedures%20Manual%203-2006.pdf



Under Section 5.10. Individually. Every year. That never happened either.



So it's not just a _shortage_ of measuring outcomes at KZYX. But the



complete absence of it. And if it's not worth measuring, it's probably



not very good.



Sincerely,



Scott M. Peterson



Mendocino



cc: (MCPB Board Members)



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