Meet Kate Frost – YWCA

This month we interview Kate Frost. Once upon a time she in a high-profile position as vice president of banking company Citibank Australia but she gave all that up to move to a more rewarding job in the not-for-profit sector.  Read about how she came to this decision…………..

What made you change from banking to not-for-profit?  How did you recover from that incident?

My husband, a foreign exchange dealer, and I were in senior banking roles with international banks. We travelled a lot, entertained a lot and generally had a very privileged life.  In early 2000, he had a sudden heart attack. It knocked him around both physically and from a confidence point of view….he’d always been so bulletproof.
 
We decided to take a year off work and re evaluate, So we bought an ‘around the world’ ticket and spent the next 12 months together 24 hours a day – did 13 countries in a year – everywhere from Cairo to Memphis, from Barcelona to Vietnam. Whilst we were away, we rethought our live and priorities and decided to look for a sea change. 
 
Well of course, all good plans are made to be flexible and my husband went back to dealing (albeit shorter hours) and after a year long stint in consulting, I met with my previous director at Citi to talk about his new role at The Smith Family. He shared with me that one of the organisation’s challenges was to grow their revenue streams within the corporate market and become more professional…. the rest is history.

How did you cope with the different demands on you at the time?

It was challenging. In banking I was used to wonderful privileges. When you travel for that long by necessity you learn to do things differently, but the biggest challenge was that I no longer had a title or a formal job. The idea of not being employed, not contributing, was not an easy one to come to terms with.

What was your first job in not-for-profit?

My first role was in fundraising at The Smith Family – primarily looking at ways to engage the corporate and community markets to build an independent and sustainable revenue stream.  During the next 4 years we succeeded in doing that, building a portfolio of state and national corporate partners, trusts and foundations and business partners which generated over $17M per annum with 50 % of that revenue guaranteed for between 3-5 years. 

What skills did you bring with you from the banking world that have helped you in particular?

I’m an interpreter!  The ability to be able to understand the corporate and business needs of a large company – whether the need is to engage staff, build brand, add to the community capacity or simply enable people to feel good about their generosity – my job is to translate that need into what the not for profit world understands and visa-versa. 
 
ROI is often not every day language for someone in the NFP world. Some people are scared of a concept which is overtly commercial, thinking that funding from corporates and business somehow dilutes the benefit to individuals and the community.   But in reality, all the corporate needs is a sound way to justify the financial outlay in terms that their Board, customers or the media understand. So for example, the NFP needs to look for ways to make staff want to work for the organisation, (or in straight business terms, increase retention, reduce recruitment costs) or build brand awareness and grow networks (grow market share and leverage cost base.) I believe it is about listening, understanding the real needs and recommunicating in a way which hits the other party’s hot buttons.

Were there still skills/attititudes/beliefs that you needed to alter when you moved, despite having that life changing episode?

I’m sure that many people at The Smith Family would love to have their say here. Coming in from the corporate market, especially from a senior position in banking, you are trained to think you have all the answers! But in reality, it’s ground zero. There is much to learn and much to share.
 
I live in a ‘nice’ suburb and we don’t have kids. So I was pretty naive when it came to understanding ‘disadvantage’ in Australia. It still blows my mind that there are children in Sydney who go to school hungry. I am incredibly sad when I see a young girl who is really nervous and unable to make eye contact because she lacks confidence and skills.  And I hate the fact that there are young men out there so angry and frustrated without access to education and support that they lash out and hurt sometimes the people they love most. I wish I had opened my eyes up sooner.

But, it’s also worthwhile remembering what I can now bring to the sector. Especially useful is an understanding and knowledge of business discipline and process. Sound general management skills and the ability to lead. My passion is fundraising, and so having no shame and feeling good about asking for money is also very useful!

There must have been a big difference in your pay yet you moved anyway.    What motivates you to stay working in the not-for-profit sector?

I feel like I am part of the solution and the work YWCA NSW does appeals to both my heart and my head. 
 
We support vulnerable people who are at a critical time of their life.  We give them the chance to learn and change their behaviours so they can succeed and  try to  prevent them from falling through the gaps… We also are there to catch them if they do fall and help them get up again by providing grassroots practical support (housing, money and more workshops so they can continue to grow and learn).

What are the difference between working in banking world and the not-for-profit sector? 

Not much anymore!  YWCA NSW, which is 130 years old this year, owns two commercial 3/3.5 star hotels and a childcare centre and also does some Government fee-for-service work which provides us with an independent sustainable stream of revenue -  in fact, over 60% of the money we need to help disadvantaged people in NSW (over 35,000 last year alone) comes from that money.  It makes me feel great that my corporate and business skills can be used and I work with the most incredibly dedicated and hardworking group of men and women, volunteers and supporters. It makes it easy to get out of bed each morning. A really supportive husband, family and Board also helps!

What are the biggest issues a not-for-profit org has to face and how can you help YWCA overcome them?

Two big ones….1.  Long term, diverse, independent and sustainable revenue streams and 2. a recognition that it is not a competition. We must all work together (and work smarter) to break the cycle of poverty.

Is your industry still regarded as the ‘poor sister’ of business?

It’s a funny story that I have told many times…when I first left the bank and some of my colleagues heard that I had joined a “charity” , I got phone calls asking me ‘what deal did you stuff up”….  “who did you upset?”. It was like joining a not for profit was my punishment. Mind you, that was a couple of years ago now and many of those same people have ‘come in from the dark side and seen the light!’

What do you want to achieve while you are at YWCA? 

YWCA NSW has undergone significant change during the past two years.
 
We now are embedding all the new processes, ideas and innovations on which we have worked so hard. We are still in the early stages of measuring the real and tangible outcomes of what we do and how we improve the lives and futures of those families we support. And that is critical to our success. We must be able to prove to our supporters and disadvantaged families that our work makes a difference and we are accountable. Much work has been done in this area and we will continue to focus on this.

Do you think that your business brain and experience has altered the way the YWCA is running?  Does it have a more commercial focus?  How does that impact on the services you are able to offer?

I think the groundwork done by the many that have gone before me in the previous 130 years is a huge contributor to our success. I’ve been lucky enough to have been passed the baton with a team of staff, volunteers and supporters who have not only joined me on the journey we have undertaken but endorsed and actively supported the way forward. Has everyone been 100% happy with the changes…no! Are there still some questions about why and how we engage the corporate market and embed the disciplines and processes that a commercial business needs to not only survive but thrive? Absolutely!
But our decreased expense base, the reduced operational and business risk, the improvements made to ensure the sustainability of our diverse revenue streams, all mean just one thing. YWCA NSW can support more disadvantaged families in NSW who are facing critical times. And that’s why we are here and really in the long term all that matters.

Where to from here for Kate Frost?

Still more to do here for a while, still lots to learn. Then an opportunity to use all my skills in a larger, potentially national NFP.  You can take the banker out of the business but not the business out of the banker!

What an amazing woman.  Let’s support her and YWCA in their new campaign…

YWCA NSW has just launched  a campaign to raise $130,000 in 130 days, which will bring us to the end of the financial year. YWCA NSW turns 130 years old this year (as you might have guessed) please donate at www.ywcansw.com.au/130..