In San Jose, California organizations from the nonprofit and for-profit sectors have created a nonprofit corporation call Team San Jose. The nonprofit's job is to represent the best interests of both sectors and offer coordinated services to those who would book events and activities in San Jose essentially acting as a one-stop-shop for the community.
The idea that all these folks who share a common interest but different missions could come together is pretty appealing and just what many foundations and municipalities have been calling for to reduce competing interests and duplication of efforts. And, to top it off, the resulting nonprofit can even generate its own revenue.
Well, maybe. According to the San Francisco Gate, the organization overspent by $750,000 and, from the City Council's point of view, paid exorbitant salaries to its execs. Of course this is one of those times when exec salaries do matter and serve as one measure of how well a nonprofit is doing. My opinion is that this is a governance problem and, to reinforce my opinion, the nonprofit released a statement saying that the "organization has changed its governing procedures and met performance measures in its city contract."