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GHC Advocacy for Nonprofits - 20+ Years in the Making
PODCAST TRANSCRIPT
Velma Anne Ruth, M.Ed.
President & Founder
ABS Community Research
In founding research for ABS and DLS (1999 - 2001), I was requested by multiple advisors to address the policy and financial hurdles that present challenges against practitioners in community justice fields from doing their jobs in a manner of resourcefulness and resulting effectiveness in crime prevention and reducing recidivism. In direct response to that request, I drafted a coding hierarchy for "offender management" which is consistent with "client management” in the human professions. This framework is applicable to administrative and compliance analytics across relevant subsectors of Health & Human Services, Education, Labor, and Criminal Justice. These categories were deliberately aligned to U.S. federal hierarchies and respective federal agencies.
In order to establish an effective interdisciplinary classification system to complete the analysis, in a manner conducive to any potential advancement of professional standards, the multi-disciplinary nonprofit and public sector apparatus required compatibility across all nonprofit sectors. To meet this requirement, the "offender management" and "client management" analytic system evolved into "Global H Codes (GHC)."
In order to determine the swath of the nonprofit sector, between 2007-2009 I conducted an initial assessment of the U.S. nonprofit sector, with advisory support of senior level CFOs of a major investment bank. I also began an analysis of the current standard nonprofit sector economic classification codes (NTEE, NCS, NAICS) against GHC. Upon discovering that the U.S. nonprofit sector at the time was over $4 trillion in assets, and global nonprofit sector estimated at $15 trillion in assets, the size was frankly bewildering to any and all finance advisors, who had each guessed that the U.S. nonprofit sector must not be more than $200 billion in assets. I was then referred to the philanthropic investment banking offices, which sought to establish advanced internal market research and special banking products for the philanthropic and nonprofit sectors.
The results fueled initial dialog with agencies including UN National Accounts, U.S. Congress, professional associations, respective leading economics related institutes, and additional investment banks. Discussion generated consensus that the nonprofit sector classifications appeared to lack a strict economic hierarchy (i.e., industry, specialization, etc), but were rather muddled mixing populations, individual entities, and regions. This lack of structure, when applied also to the international nonprofit landscape, created certain wide gaps and “gray areas” in financial analysis and reporting, and was coined a “Black Hole” of nonprofit finance.
Discussion further lead to consensus on the need for public conferences on nonprofit finance and risk assessment, whereas individual seminars would be dedicated to the specifics of each nonprofit field, addressing both accounting, operations, outcomes reporting, technology, policy, and related advancements.
This publication provides a summary of original methodologies that have been applied in a broad array of fields and economic levels, over a period of ten (10+) years with an equal range of grassroots, government and diplomatic cohorts, in alignment to the International Standards Organization (ISO) requirements for standards advancement in finance and classifications.
Follow-up white papers exhibit applications of GHC in “real world” scenarios both domestically and overseas, on industry-specific bases, towards consensus development and ISO proposals. The objective of this literature is to support establishment of a formal Nonprofit Economic Council (NEC) to support advancements in nonprofit sector classifications and its implications for nonprofit and philanthropic administration.
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By Velma Anne Ruth, M.Ed.PODCAST TRANSCRIPT
Velma Anne Ruth, M.Ed.
President & Founder
ABS Community Research
In founding research for ABS and DLS (1999 - 2001), I was requested by multiple advisors to address the policy and financial hurdles that present challenges against practitioners in community justice fields from doing their jobs in a manner of resourcefulness and resulting effectiveness in crime prevention and reducing recidivism. In direct response to that request, I drafted a coding hierarchy for "offender management" which is consistent with "client management” in the human professions. This framework is applicable to administrative and compliance analytics across relevant subsectors of Health & Human Services, Education, Labor, and Criminal Justice. These categories were deliberately aligned to U.S. federal hierarchies and respective federal agencies.
In order to establish an effective interdisciplinary classification system to complete the analysis, in a manner conducive to any potential advancement of professional standards, the multi-disciplinary nonprofit and public sector apparatus required compatibility across all nonprofit sectors. To meet this requirement, the "offender management" and "client management" analytic system evolved into "Global H Codes (GHC)."
In order to determine the swath of the nonprofit sector, between 2007-2009 I conducted an initial assessment of the U.S. nonprofit sector, with advisory support of senior level CFOs of a major investment bank. I also began an analysis of the current standard nonprofit sector economic classification codes (NTEE, NCS, NAICS) against GHC. Upon discovering that the U.S. nonprofit sector at the time was over $4 trillion in assets, and global nonprofit sector estimated at $15 trillion in assets, the size was frankly bewildering to any and all finance advisors, who had each guessed that the U.S. nonprofit sector must not be more than $200 billion in assets. I was then referred to the philanthropic investment banking offices, which sought to establish advanced internal market research and special banking products for the philanthropic and nonprofit sectors.
The results fueled initial dialog with agencies including UN National Accounts, U.S. Congress, professional associations, respective leading economics related institutes, and additional investment banks. Discussion generated consensus that the nonprofit sector classifications appeared to lack a strict economic hierarchy (i.e., industry, specialization, etc), but were rather muddled mixing populations, individual entities, and regions. This lack of structure, when applied also to the international nonprofit landscape, created certain wide gaps and “gray areas” in financial analysis and reporting, and was coined a “Black Hole” of nonprofit finance.
Discussion further lead to consensus on the need for public conferences on nonprofit finance and risk assessment, whereas individual seminars would be dedicated to the specifics of each nonprofit field, addressing both accounting, operations, outcomes reporting, technology, policy, and related advancements.
This publication provides a summary of original methodologies that have been applied in a broad array of fields and economic levels, over a period of ten (10+) years with an equal range of grassroots, government and diplomatic cohorts, in alignment to the International Standards Organization (ISO) requirements for standards advancement in finance and classifications.
Follow-up white papers exhibit applications of GHC in “real world” scenarios both domestically and overseas, on industry-specific bases, towards consensus development and ISO proposals. The objective of this literature is to support establishment of a formal Nonprofit Economic Council (NEC) to support advancements in nonprofit sector classifications and its implications for nonprofit and philanthropic administration.