Andrew Sheldon//August 9, 2005//
Date: August 7, 1996
Title: New Jersey”s Finest Top 40/ Multiple Sclerosis Association of America
For John Hodson, Sr., success is not measured just by gross sales or net income. Instead, he says, “It”s a measure of making people happy.”
Hodson is the CEO and founder of the Multiple Sclerosis Association of America (MSAA), a not-for-profit organization in Cherry Hill. Started in 1969 from Hodson”s living room, MSAA tries to address the day-to-day needs of MS patients. Hodson was helped for many years by his wife Ruth, an MS patient, who died in 1993.
The agency does this by providing information to Multiple Sclerosis (MS) patients, implementing support groups, constructing special housing, and providing wheelchairs and other equipment at little or no charge to MS individuals.
MS is a chronic disease that causes a variety of problems. Symptoms can range from visual difficulties to total paralysis. As an MS patient loses mobility, painful emotional and financial dilemmas can result. An estimated 350,000 to 500,000 Americans suffer from MS. Through MSAA, Hodson tries to help them lead more fulfilling lives.
Running the MSAA programs, and securing financing for them, primarily through voluntary contributions, is no easy task. It is even tougher in a slow-growth economy. Also, with massive corporate layoffs led by stalwart corporations like AT&T leading to uncertainty about personal finances, people are slower to donate money to charitable organizations. It is tough to get donations from a family that thinks the current paycheck may be the final one.
But Hodson, who has been legally blind most of his life, has done more than just manage to keep MSAA alive. On his watch, the agency”s revenues-contributions-have grown extraordinarily fast. The agency collected $8.2 million in 1993, $11.5 million in 1994, and for the year ended June 30, 1995, MSAA received $12.6 million.
To keep growing, Hodson has borrowed techniques from commercial enterprises. Two central practices relate to revenue and costs: he makes sure that contributors see results, and he keeps a close eye on expenses. “We”re asset-oriented,” Hodson explains. “Contributors can see where their dollars go.” He also uses a variety of fundraising techniques, including telemarketers, direct mail and sporting events, to bring in donations. “If we lose out on one area, we”ll pick up with another one,” says Hodson.
Listening to Hodson talk about business plans, budgets and cost reduction measures is somewhat like sitting in on a Fortune 500 strategy session. A visitor can forget that this is a nonprofit agency.
But boosting revenue is only half the battle. Contributors also want to be certain that their donations are not squandered. “Most of our money goes directly to programs that benefit MS patients,” Hodson says. “Our administrative costs are only 8% of our budget, and our fund-raising costs only use up another 11%. Do the math: 81% of our funds go directly to delivered projects.”
Hodson uses a variety of techniques to keep costs down. He makes extensive use of volunteers, federally and state-funded programs, and even people who have been sentenced to do community service as part of a court sentence. “Just because a guy has been picked up for drunk driving doesn”t mean he can”t handle a phone,” Hodson observes.
Even though MSAA staffers prepare their own press releases and newsletters, Hodson praises outsourcing as a way to maximize service. “If I need something done, I let the experts handle it,” he says. Outsourced projects include telemarketing and direct-mail campaigns.
Hodson”s organization receives high marks from Don Sodo, president of the Arlington, Va.-based America”s Charities service organization. “I think MSAA is doing a very good job,” Sodo says. “It”s a growing organization and it keeps its administrative costs low, so more money goes to the people who need it.”
Hodson plans to reach out to even more people in the coming years. “We”re working on peer counseling programs, obtaining more equipment for MS patients to be loaned or given out, more educational materials and MS seminars,” he says.
Hodson also wants to work with federal agencies to build assisted-living centers for MS patients. Apartments, tailored to meet the needs of MS patients, are available at subsidized rents at centers like Hodson Manor in Glassboro. For Hodson, this is an ongoing experience. “Continuity builds credibility,” he says. “I learn something new every day.”