This case familiarizes students with the environment in which non-for-profit organizations work in Ukraine. It illustrates the steps a western non-for-profit organization needs to take in order to establish its presence in the countries of the former Soviet Union. The case invites the students to think about issues of leadership transfer and volunteer motivation in the non-for-profit sector of these countries. In addition, it explores various ways to market the non-for-profit programs, such as long-term youth exchanges, in the former Soviet Union.

The teaching note was written for undergraduate courses in Management of Non-for-profit Organizations. It is expected to be useful later in the course to illustrate the process of internationalization of the non-for-profit organizations. The case also contains issues of Project Management and Fundraising as related to the non-for-profit sector.

Youth for Understanding International Exchange-Ukraine, a branch of a large international non-for-profit organization, has been successfully working in the country for three years. It was offering Ukrainian students exchange programs to US and Western Europe subsidized by the grants from the United States Information Agency (USIA) and other YFU organizations. The case describes how the organization was started in Ukraine and explores ways it gained credibility and trust in the country.

In 1998 the financial support for YFU-Ukraine is over and the organization needs to find ways to survive and maintain high quality of its outbound students. As a result of the country’s economic recession, fewer and fewer Ukrainian families are able to afford paying for their children’s participation in the exchange programs.

YFU faces increased challenges in motivating its staff, because neither the country’s culture nor the deteriorating economic environment supports volunteerism in Ukraine. At the same time, the organization’s top managers are about to resign and they have to choose the replacement among young volunteers.
 
 

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Contact Person: Andrew V. Shipilov, IMC Graduate School of Business, Budapest, Hungary
Mail (until January 15, 2000): 11 Nador utca, Budapest, Hungary H 1051
Voice (until January 15, 2000): + (361) 235 6117
Fax (until January 15, 2000): + (361) 327 3282
E-mail: shipilov@hotmail.com

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Scottish European Aid (SEA) develops an understanding of entrepreneurial growth and social entrepreneurship. The case also teaches wider strategic management issues and explores the challenges of sustainability.

The case explores how not-for-profit organisations are conceived, examines the people who start them, and the growing pains of expansion. Emphasis is placed on the role of the ‘Social Entrepreneur’ to encourage students to discuss the motivation and leadership skills of those who set up non profit organisations. The transition from a simple structure to formal management systems provides a platform for students to understand the changing role of leaders, the importance of the Board and the need for managerial competence as an organisation matures.

Analysis of strategic choices assists students in developing a sensitivity to the need for alignment between strategy and human resource practices. The Epilogue provides an opportunity to explore issues of both governance and sustainability of operations overseas.

SEA is designed for a course on Managing Not-for-Profit Businesses which is offered to a variety of full and part time MBA students. The material is also appropriate for use in courses discussing small business growth and entrepreneurship.

The Scottish European Aid case describes how a young Scottish journalist is compelled to help Romanian orphans. The case examines how his efforts to rally support for the orphans cause and his ability to build a network of family, friends, and volunteers eventually leads to the founding of a not-for-profit organisation funded by the United Nations High Commission for Refugees with a budget of over $1,250,000: Scottish European Aid (SEA).

The case describes the eventual departure of the founding entrepreneurs and the acquisition of SEA by Mercy Corps International. The Epilogue, an article that appeared in the European edition of Business Week, raises issues of sustainability as it describes how SEA’s resources have now been unethically redirected for use as a private profit making medical centre.

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This case examines the role of organizational and environmental factors in a non-profit organization’s strategy formulation. This case allows students to analyze how a nonprofit organization’s ability to obtain funding is influenced by the interrelationship of its structure and strategy. This field-based case is appropriate for undergraduate and graduate level principles of management and organizational behavior courses.

Building Dreams Forever, Inc. (BDF, Inc.) is a nonprofit organization in Maryland that was established in October of 1997, with the mission of providing quality and leading edge education and training programs to make a positive impact in the community – socially, economically, and professionally – through: (1) developing mentoring programs for the youth; (2) creating holistic self-awareness and EMPOWERMENT workshops for the entire family; and (3) launching innovative programs, projects and services to assist disadvantaged segments of the community under the Welfare to Work Initiative.

BDF, Inc. relies heavily upon government funding to finance its programs. It anticipates that at least 85% of its 1999 funding will come from grants and contracts. The Board of Directors for BDF, Inc. is currently discussing the submission of an organization chart in partial fulfillment of the requirements for a grant under consideration. There is disagreement amongst the Board members on whether the current organization chart or the proposed long-term organization chart should be submitted. Concern has also been raised regarding the difficulty in obtaining funding from non-governmental sources.

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Contact: Minnette A. Bumpus, American University, Kogod School of Business, 4400 Massachusetts Avenue, NW, Washington, DC 20016-8044; 202-885-1873 (phone);
202-885-1938 (FAX); mbumpus@american.edu (e-mail)

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The major issues in the case are oriented around the political debate over private/public ownership and the decision making required based on cost/benefit analysis. Successful private/public partnerships exist but they are challenging to achieve. Because Charlotte has had an arena that was totally publicly funded and is considering a public/private partnership, the situation illustrates that different times require different outcomes and that political leaders’ rational decision making may appear to be irrational. The case is ideally suited for role play.

This case was designed for advanced undergraduate and graduate students in political science classes in Urban Politics or State and Local Government or in public administration courses such as Public Policy Making, Changing Public Organizations, Public Budgeting, or Administrative Decision Making.

In 1987, the National Basketball Association (NBA) awarded a franchise to George Shinn of Charlotte, North Carolina. Charlotte was poised to move forward as a major city in the Southeast and the country. Becoming home to the Hornets professional basketball team was one more piece in accomplishing that goal. This case provides the background information on the City of Charlotte and the Hornets as they engaged in a ten year public/private effort to bring the NBA franchise to Charlotte initially, to keep it profitable for all parties concerned, and to ultimately keep the franchise in Charlotte through the construction of a new basketball arena. The citizenry is not as enthused about building yet another public facility for basketball. The City Council must decide whether to invest in a new arena. The Hornets must decide whether to continue the partnership with the City, build their own arena, or move the franchise. Opportunities for role-playing exist.

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Contact Person: Linda E. Swayne

Based upon field interviews and archival research, this case focuses on how intrapreneurship in a University setting resulted in phenomenal growth of a Center For Aviation in a harsh external environment. It is designed for Strategic Management and other management courses to illustrate: (1) Intrapreneurship - how one person with a vision, working within a bureaucratic organization, can make a vision happen; (2) The effectiveness of long range planning and use of planning retreats; (3) How a niche strategy can be used effectively; (4) The effective use of objectives in a nonprofit organization; (5) Teambuilding and conflict; (6) International aviation training; (7) Marketing and financial problems in a nonprofit organization; and (8) The importance and impact of external forces on an organization.

It all began in 1967, when John D. Odegard submitted an aviation-related thesis for his master's degree in accounting at the University of North Dakota (UND) in Grand Forks. He had learned to fly as a youth and as an undergraduate student had worked summers as a cropduster. Upon graduation, he was employed as an instructor in the University's accounting department. Shortly thereafter, he convinced the dean of the College of Business that his intrapreneurial vision of combining a major in aviation training with a business degree was a feasible niche strategy. The UND Aviation department was established in 1969, with Odegard as chairman, two instructors, two donated aircraft, and a dozen students. By 1990, the Center for Aerospace Sciences (CAS) had $77 million in assets and 2100 students from every state and several foreign countries flying 100,000 flight hours annually utilizing a fleet of 98 aircraft. Radio commentator Paul Harvey and U.S. News & World Report have described the Center's collegiate flight training facilities and program the "Harvard of the Air." This successful partnership forged between the aviation industry, federal aviation agencies, and the University was guided by three, five, and ten year plans.

The case opens with the 1995 announcement that John Odegard was stricken with cancer. The recuperating Dean is reflecting upon the intense recruiting effort that must be mounted to rebuild student enrollment that had tailed off, significantly, due to the disastrous Flood of 1997. Fiscal deficits that have aroused the interest and ire of the Board of Higher education and the state legislature needed to be addressed. Much future travel to court government and aviation sources of funds will be needed. Can a viable faculty and support staff continue to be funded primarily with nonappropriated funds?

The case closes with the September 28, 1998, Grand Forks Herald, headline crying out in oversized print, "Odegard Dies." President Baker, in his last year of his seven year presidency is beleaguered by many problems. As he returned from the funeral services, he was musing over the fact that a charismatic academic and aviation visionary, would be most difficult to replace. Should the incoming president make that final decision? Despite the fact the new president would not take over until July 1, 1999? Will past financial difficulties involving the aviation program reoccur? Will the flow of nonappropriated funds from government and the aviation industry remain stable despite the loss of the magnetic presence of super salesman, Dean Odegard? Will the sale of jet aircraft to erase the aviation center’s debt curtail student enrollment? What is the optimum capacity of the Odegard School of Aerospace Science?

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Contact: John J. Vitton, Associate Professor - Management, University of North Dakota, Grand Forks, ND 58202, (701) 777-3229, vitton@badlands.nodak.edu