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Abstract

When Hugh Price becomes head of the National Urban League, one of the most historically important African-American civil rights organizations in the U.S., he finds an organization in some disarray. As he arrives in 1994, the League''s national office has operated at a loss for five years, staying out of debt only by spending down its endowment, which was growing perilously small. Critics inside and outside the League fault the organization for losing its clear and unifying sense of purpose. Especially at the national level, corporate involvement in the League had trailed off. And, on the national stage, the organization has receded to the point that some dismiss it as irrelevant. This case focuses on the "turnaround" strategies undertaken by Price, specifically to try to re- invest, and financially stabilize, the national organization. For those interested in nonprofit management, the case serves as a vehicle to discuss the relationship between a national organization and its local chapters-which for the Urban League had actually been, in many instances, more vibrant and financially healthy than the national organization. The case raises the question of what central, franchise-granting organizations can provide for local chapters and what they can, or should, demand. Thus, it would be relevant for those who study such organizations as the United Way and the Red Cross, as well-and could be linked to the Kennedy School cases on those organizations.

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Abstract

When Hugh Price becomes head of the National Urban League, one of the most historically important African-American civil rights organizations in the U.S., he finds an organization in some disarray. As he arrives in 1994, the League''s national office has operated at a loss for five years, staying out of debt only by spending down its endowment, which was growing perilously small. Critics inside and outside the League fault the organization for losing its clear and unifying sense of purpose. Especially at the national level, corporate involvement in the League had trailed off. And, on the national stage, the organization has receded to the point that some dismiss it as irrelevant. This case focuses on the "turnaround" strategies undertaken by Price, specifically to try to re- invest, and financially stabilize, the national organization. For those interested in nonprofit management, the case serves as a vehicle to discuss the relationship between a national organization and its local chapters-which for the Urban League had actually been, in many instances, more vibrant and financially healthy than the national organization. The case raises the question of what central, franchise-granting organizations can provide for local chapters and what they can, or should, demand. Thus, it would be relevant for those who study such organizations as the United Way and the Red Cross, as well-and could be linked to the Kennedy School cases on those organizations.

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