Big Brothers vs. Big Sister
CONSOLIDATION or power play?
For more than 50 years, the Big Sister Association of Greater Boston Inc. successfully did its thing -- mentoring underprivileged girls -- while Big Brothers of Massachusetts Bay provided similar services for underprivileged boys.
In recent years, the two nonprofit organizations discussed the possibility of merging, but never reached any agreement. Then, last fall, the Big Brothers took matters into their own hands. They merged with smaller agencies outside of Boston and changed their name to Big Brothers Big Sisters of Massachusetts Bay with permission from their Philadelphia-based national organization.
The newly christened nonprofit is bringing something of the swagger of a hostile takeover to the world of charitable giving. This is a battle for brand, identity, and turf, backed by serious players like hedge fund megastar and board member James Pallotta.
Last January, Pallotta, a manager at Tudor Investment Corp. and co-owner of the Boston Celtics, hosted the annual fund-raiser for Big Brothers Big Sisters of Massachusetts Bay at the South Boston Convention Center. He was dressed in drag in a strapless Vera Wang gown, according to the Wall Street Journal; John Pearson, chief executive of the organization, wore a wig. The party, themed as an '80s Prom Night, featured live music by Hall & Oates and a designated "make-out room." It raised an eye-popping $1.8 million, including $80,000 from auctioning off a role in a Farrelly brothers movie.
The Big Sisters raised a much more modest $240,000 at its annual fund-raiser. The stars of the event were young girls, who spoke movingly about their mentors and how they changed their lives.
On Wall Street, bigger is always better. That mentality led to the mergers and acquisitions that changed the banking, insurance, and retail landscape forever in Boston. It explains why there's only Macy's now, no more Jordan Marsh or Filene's.
The nonprofit world is coming under similar pressure to merge and consolidate. Boston's numerous nonprofits are vying for a shrinking pool of money. It makes sense, merger proponents say, for like-minded organizations to join forces, streamline operations and better serve their constituencies. But Deborah Re, CEO of the Big Sister Association, believes the accepted business model for achieving efficiency and greater profits doesn't automatically translate to non profits.
Asked why she is opposed to partnering with an obviously well-heeled organization with similar goals, Re said, "We have no compelling reason to merge. We are fiscally sound, operationally efficient, and effective at delivering services to girls. Outcomes demonstrate that our girls are more confident, make healthy decisions, and have positive relationships with adults and peers. In mentoring, one size doesn't fit all."
It's not clear, said Re, that the girls traditionally served by the Big Sister Association will get as much attention -- or the right kind of attention -- from an organization originally targeted at boys.
Big Sister Association served nearly 2,700 girls in 2006, with an operating budget of $2.5 million. Its mentoring matches last an average of 28 months; the national average is 22 months. The organization is aiming to expand its reach to 5,000 girls by 2010.
In 2006, Big Brothers Big Sisters of Massachusetts Bay had an operating budget of $6.8 million; out of 2,440 mentoring matches, 410 served girls, according to the Journal.
As she considers legal options, Re is working to clear up any confusion that could hurt her organization's fund-raising mission. In February, she sent a letter to supporters, telling them "there is only one Big Sister Association of Greater Boston" and reminding them of the organization's unique role: It exclusively addresses the social, emotional, and developmental needs of girls.
Wendy Foster, a spokesperson for Big Brothers Big Sisters, said her group is open to collaboration with Big Sisters, "up to and including merger." The more the groups can collaborate, the better, she said.
Meanwhile, Foster's organization believes its new name "will have minimal impact" on anyone else's fund-raising.
As Re fights to keep Big Sister Association of Greater Boston financially healthy and independent, she has the backing of Boston Mayor Thomas M. Menino. The mayor is hosting a June 5 event at the Parkman House to raise awareness about the organization.
"They deserve to be independent," Menino said. "They have a well-experienced executive director who knows how to run a mentoring program. They have a track record."
For some non profits, consolidation makes sense, Menino said, but, "It doesn't make a lot of sense for Big Brother to take over Big Sister."
He knows a power play when he sees one.
Joan Vennochi's e-mail address is vennochi@globe.com. 
