Over the course of the last 25 years I have been occasionally asked by people both inside and outside of the company, why WKS/RRI is not a “not for profit’’ (NFP) entity. After all, it appears that the entire world in which we operate seems to be NFP. Well the answer is a simple one for me. We are what we are because it’s the best way to do what we do and do it well.

First you have to understand that the nature of NFPs is often seriously misunderstood. Not for profits do make money, and often lots of it, they just call it something other than profit. They have what are known as fund balances. Any additional revenue that they acquire is put into this category and can accumulate over time to large sums of money. One major difference between a NFP, and a for profit entity, is that the NFP has different rules as to what can and cannot be done with that money. Their tax structures are different and they need, for the most part, to commit their excess revenue to another not for profit should they go out of business. If you look at the salaries of executives in large, well run NFPs however , like Red Cross, Easter Seals, the Salvation Army, PTL, and the 700 Club you will be amazed at what these not for profits make and pay their directors. So, if you think that NFPs don’t “make money” then you just don’t understand the world of not for profit corporations.

When I started this company back in 1984, I chose to be a for profit entity, not because I anticipated making large sums of money, but because, having served on many not for profit boards of directors, I realized that it is a very cumbersome way to do business. The executive director of a NFP is responsible to his/her board of directors, and is often unable to make too many decisions without clearing it with that board. Often people serve on boards as a way to give back to a cause that they believe in. This is a noble idea. However it is no way to run a business. People serving on volunteer boards, despite their best intentions, cannot be as committed to the operation of a business as they might like. They are volunteers who want to do good, but rarely have the time to put forth in any way other than attending monthly evening meetings. In these meetings typically they get a “thumb nail sketch” of the operations and are often asked to make decisions for which they are ill prepared. Often decisions get tabled until such time as board members are brought “up to speed” on the issue. This can often delay important decisions for up to 30 and some times 60 days or more.

I wanted a company that could be flexible and much more responsive to the needs of the people we serve. In addition I did not want decisions being made by people who were serving on the board because they wanted to do something to make themselves feel good. I wanted to surround myself with employees and administrative staff who knew every nuance of our business, people who could make good timely decisions, and who both knew and understood the importance and significance of every decision they made. In addition to this I also wanted a highly professional staff that saw itself as running a business not nursing a cause. While this may sound harsh, it is intended to convey the idea that to do what we do and to do it well, we must think of ourselves as professional people maintaining a highly efficient company that supports people as they pursue their life wishes and desires: as opposed to a group of people brought together to be of help to folks. While this may appear as a minor distinction, I believe that it is this distinction that makes us more attentive, responsive and more professional in our dealings with the people with whom we work.

So the next time someone questions you as to why we do, what we do, the way we do , just tell them, we make no apologies for being who we are, and that we do it this way because it’s an efficient and effective way to support people and a much better way to get the job done well.

~ William K. Schofield, Ph.D
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