# Presentation: 588783

## Nonprofit  Category 

***Nonprofit  Category ***

**Malcolm Baldrige****National Quality Award**

*Performance Excellence and Innovation*

## Addition of Nonprofit Category

- Legislation authorized Baldrige Program to expand to include nonprofit organizations
- 2006 Appropriation provided funding for nonprofit category

**Notes:**
This presentation provides information about the Baldrige Program’s newest Award eligibility category,  nonprofit.

On October 5, 2004, Public Law 108-320 was signed by President George W. Bush authorizing the establishment of a Baldrige nonprofit category, including government agencies and all other nonprofit organizations. 

NIST’s fiscal year 2006 appropriation provided the Baldrige Program with $7 million (in total), allowing the nonprofit category to proceed.

## Eligible Organizations

- U.S.-based nonprofit, public, private, or government organizations are eligible. The following are examples
-     local, state, and federal organizations;
-     trade associations;
-     charitable organizations;
-     social service agencies;
-     credit unions; and
-     professional societies

**Notes:**
This slide presents a broad list of the types of nonprofit organizations that are eligible to participate in the Award process. The organizations include U.S.-based nonprofit public, private, and government organizations and some subunits, including U.S. subunits of foreign organizations located in the United States or its territories.
Eligibility is intended to be as open as possible. For example, eligible organizations include local, state, and federal government agencies; trade associations; charitable organizations; social service agencies; credit unions; and professional societies.

## Baldrige and the Nonprofit Sector

- Health care and education organizations have applied since 1999
- The impact on nonprofit organizations

**Notes:**
Baldrige Award recipients have proven that any U.S. organization, whether large or small, service or manufacturing, education or health care, can use the performance excellence principles embodied in the Baldrige Criteria. Organizations that have competed for the Baldrige Award have realized higher productivity, greater customer satisfaction, better employee relations, improved profitability, and lower costs. 

The use of the Criteria for Performance Excellence is not new to nonprofit organizations. Nonprofit education and health care organizations have been eligible to participate in the Baldrige Award evaluation process since 1999, and through the use of performance excellence principles, they are benefiting from applied continuous-improvement strategies and breakthrough performance. 

## Preparation for the Nonprofit Category

- Conducted a nonprofit pilot program
- Applicants participated in full award process, including site visits—if selected
- Adjusted the eligibility rules that are not specific to nonprofits
- Broad definition, fees, other rules

**Notes:**
   Before a full-fledged Award Category was added, a pilot program was conducted to provide an opportunity for the Baldrige National Quality Program (BNQP) to ensure that the Criteria for Performance Excellence were relevant to the nonprofit community, as well as to provide an opportunity to test potential changes to the evaluation process for all Award categories in 2007 and beyond.
   The nonprofit pilot was limited to top-tier state and local-program award recipients.
   The applicants for the nonprofit pilot participated in the full award process, including site visits— if selected.
   All applicants that participated in the nonprofit pilot received feedback on strengths and opportunities for improvement.
   The major difference between the regular Award Process and the pilot program was that no Awards were given to nonprofit participants in 2006.

Every year applicants must self-certify that they meet the current eligibility requirements. 
Eligibility is intended to be as open as possible. For example, eligible organizations include     local, state, and federal government agencies; trade associations; charitable organizations; social service agencies; credit unions; and professional societies.
The fee structure for nonprofit organizations follows the fee structure for health care organizations.
The Baldrige Award Application Forms booklet provides details about restrictions on eligibility. 

## Changes to Criteria for Performance Excellence

- Language adjusted throughout the Criteria booklet
- Some Item notes have been modified or added
- Revisions made to several glossary terms

**Notes:**
The language throughout the Criteria booklet was adjusted to better address nonprofit organizations, as well as for-profit businesses.
Some Item notes were modified and some Item notes were added in the Criteria for Performance Excellence to specifically address concepts of importance to nonprofit organizations. Information that has been modified or added is presented in italics in the Item notes. Notes that address only nonprofit organizations have been placed at the end of the notes for each Item.
The descriptions of several terms in the glossary were revised to align better with the language changes that accommodate nonprofit organizations within the Criteria.

## 
Competition		Collaboration
Workforce		Includes Volunteers
Customers		Stakeholders
Profits		Budgets
Products		Programs

- Competition		Collaboration
- Workforce		Includes Volunteers
- Customers		Stakeholders
- Profits		Budgets
- Products		Programs

***Issues Addressed Through the Criteria for Performance Excellence ***

**Notes:**
   Several issues related to the nonprofit environment are addressed through the Criteria for Performance Excellence. Here are some examples:
Nonprofit organizations frequently believe they are not in a competitive environment; however, they often must compete with other organizations and with alternative sources for similar services to secure financial and volunteer resources, membership, visibility in appropriate communities, and media attention.
The term “workforce” refers to all people who contribute to the delivery of an organization’s products and services, including paid employees (e.g., permanent, part-time, temporary, and contract employees supervised by the organization) and volunteers, as appropriate. Many nonprofit organizations rely heavily on volunteers to supplement the work of their employees. These organizations should interpret workforce to mean employees and volunteers.
Customers are the users and potential users of an organization’s products, programs, and services. In some nonprofit organizations, customers might include members, taxpayers, citizens, recipients, clients, and beneficiaries. Market segments might be referred to as constituencies.
Although some nonprofit organizations offer products and services, many might appropriately interpret this phrase as programs or projects and services.
For some nonprofit organizations, financial measures might include performance to budget, reserve funds, cost avoidance or savings, administrative expenditures as a percentage of budget, and the cost of fundraising versus funds raised. 

## 2007 Nonprofit Applicant Data

- 1st year for nonprofit category competition
- 13 applications were received
- 4 applicants received site visits
- 2 organizations received the Award

**Notes:**
Given the results of the 2006 pilot and changes made to accommodate the nonprofit sector, nonprofit organizations were eligible to apply for the Award in 2007.  The application data for the nonprofit category is as follows:
13 applications were received and evaluated through a Consensus   Review.
 4 applicants received site visits
 2 organizations received the Award

## 2007 Award Recipients― Nonprofit

- City of Coral Springs, Coral Springs, Florida
- U.S. Army Armament Research, Development and Engineering Center (ARDEC), Picatinny Arsenal, New Jersey

**Notes:**
In 2007, two nonprofit applicants received the Award ... the City of Coral Springs, in Coral Springs, Florida, and the U.S. Army Armament Research, Development and Engineering Center located in New Jersey.

## City of Coral Springs― Background

- City government follows a corporate management model
- 4th largest city in Broward County and 13th largest in Florida
- Workforce composed of approximately 1,100 employees and 700 volunteers
- Multiple facilities including fire and police stations, parks, sports complex, and conference center

**Notes:**
The City of Coral Springs is a municipal corporation; that is, a city government following a corporate management model. Coral Springs is a centrally planned community incorporated in July 1963. The city is 23.93 square miles, with 54 percent of the land designated for residential use. The population of 131,257 makes it the 4th-largest city in Broward County and the 13th-largest in the state of Florida. 
The city’s workforce comprises 771 full-time employees; 295 part-time and temporary employees; 106 volunteers providing supplemental emergency response; and 700 occasional volunteers.
Budget: $135 million 
The city’s facilities include five municipal/public safety locations, five fire stations, four police substations, three regional parks, a sports complex, a tennis center, an aquatics complex, three pools, 732 acres of parks, a gymnasium, a conference center, the Westside Complex (fleet maintenance), a charter middle/high school (in addition to the other 19 public schools), the City Hall in the Mall, and the Center for the Arts (including an art museum).  

## City of Coral Springs―Highlights

- Strong financial performance―AAA bond rating from major rating agencies
- Customer focus commitment―“Slice of the Springs” meetings
- Public safety improvements―tenth lowest crime rate overall in the United States
- High employee satisfaction―90 percent or higher for ten consecutive years

**Notes:**
Coral Springs presents several highlights to share. 
The city demonstrates a consistently high level of financial performance. This favorable budgetary performance reflects the city’s effectiveness in running like a business, its key strategic advantage. Results include a AAA bond rating from the major rating agencies, “Government Financial Officers Association Distinguished Budget” awards for 16 consecutive years, and zero findings on external audits for 11 years. 
The city is committed to a customer focus, one of its four core values. Senior leaders communicate the city’s strategic priorities, goals, and plans to customers, and they report on progress through multiple mechanisms that include yearly “Slice of the Springs” meetings for the city’s two key customer groups—businesses and residents. 
The city’s efforts to improve public safety have resulted in a decrease in crime rate incidents per 100,000 by nearly half over the last ten years. This is the lowest crime rate in the state, the fourth lowest crime rate in the nation for cities with populations between 100,000-499,999, and the tenth lowest crime rate overall in the United States for all categories of type 1 crimes (according to a private research and publishing company). 
Employee satisfaction and willingness to recommend the city as a place to work has been 90 percent or higher for ten consecutive years, and this result has outperformed results of a comparison group of federal government employees surveyed in 2002, 2004, and 2006. 

## ARDEC―Background

- R&D center for armaments used by the U.S. Army, Special Operations Command, and other organizations
- Over 10 years, ARDEC has developed and released more than 20 products that have provided U.S. troops with “world’s best” capabilities
- Workforce of 2,971 in 5 locations: NJ, MD (2 sites), IL, and NY

**Notes:**
The other nonprofit Award recipient in 2007 was ARDEC. 

ARDEC is the research and development center for armaments used by the U.S. Army, Special Operations Command, and other organizations. Its purpose is to provide battlefield supremacy for U.S. troops through “overmatch capabilities.” Over the past 10 years, ARDEC has developed and released more than 20 products that have provided U.S. troops with “world’s best” capabilities, compared with products from foreign military and other U.S. defense organizations.
Its workforce is composed of 2,971 individuals in 5 locations―Picatinny Arsenal, N.J.; Watervliet, N.Y.; Rock Island, Ill.; Adelphi, Md.; and Aberdeen Proving Ground, Md.
Revenue: $1.2 billion 

## ARDEC―Highlights

- Revenue growth―$600M in FY2001 to $1.2B in FY2007
- Benchmark in technology transfer―approx. 75% of technology projects transition into development
- Army Research and Development Lab of the Year
- Workforce engagement exceeds productivity and quality benchmarks―job satisfaction 92% in FY2007
- SWORDS robot ― a “most amazing invention”

**Notes:**
ARDEC presents several highlights to share.
Efforts to diversify ARDEC’s revenue stream have led to a growth in non-Army revenue from about $60 million in fiscal year (FY) 2001 to $140 million in FY2007. Overall revenue has increased from approximately $600 million in FY2001 to around $1.2 billion in FY2007. 
Designated as the benchmark for the Army in technology transfer, ARDEC has had since FY2005 approximately 75 percent of its technology projects transition from research into customer-funded development. 
ARDEC has received awards and recognition based on customer satisfaction and perceived value, including Value Engineering Accomplishments of Merit. Over the past five years, ARDEC has won 13 of the Army’s “10 Greatest Inventions of the Year” awards. Additionally, ARDEC has won the Army Research and Development Lab of the Year award for two of the last four years. 
Results for workforce engagement have been more than 84 percent positive, and job satisfaction increased from about 87 percent positive in FY2004 to 92 percent positive in FY2007, exceeding government productivity and quality benchmarks. Diversity for scientists and engineers has increased in six of eight target groups from FY2005 to FY2007, with several exceeding the National Science Foundation benchmark.
ARDEC’s SWORDS robot was named one of the most amazing inventions of 2004 by TIME magazine. 

## Resources for More Information

- Most Baldrige National Quality Program (BNQP) documents are available in printed form and on the BNQP Web site.
- To obtain these documents, call (301) 975-2036 or visit **www.baldrige.nist.gov.**