WISDOM FROM SUCCESSFUL NONPROFIT MANAGERS
Mary Ann Peters is the chief executive officer of the Carter Center. She is a retired American Career diplomat, and has served in many capacities before becoming a National Security Council member. I recently had an interview with her on what it takes to run a successful non-profit organization and she had these to reiterate on the key issues. She says that she has witnessed highly successful organizations and others that were consistently struggling to stay afloat. Seasons change and often does the support, how does the organization stay relevant when the financial flow and strings tighten? Mary also pointed out the fact that leadership is important on both the staff and within the board of trustees. Who is to take charge? What are the key roles played by each and Every one?
These issues were brought up during our discussions:
Qualified Staff Inclusion
The fundamental key to any organization’s success is its staff. Key issues rely on the composition of the staff, whether the leadership has a congruently aligned staff and board of trustees in simple terms finding out weather everyone in the organization is on the same page and gearing towards the same goals is important.
Mary says that in his career, organizations that had executives had both a supportive staff internally and a structured, supportive board members externally, always met their goals and often went an extra mile to achieve more exceeding their limits and achieving success.
It is also imperative for an organization to possess a handbook and a well-structured job description to ensure that members are well informed. The more the skill quota of each staff the higher the chances of accruing success. An important aspect that should be chief in an organizations agenda is if there is unison and everyone is working in perfect alignment and within a stated budget. This will ensure the future and strength of the organization is preserved.
Another great business practice is retaining staff. This practice ensures time and money is saved that will be used to train other staff members. Training people to work together and understand their roles takes a considerable amount of time, it also decreases productivity and curtails the ability to maintain and meet set targets.
Cash is Paramount
Cash is an important commodity in any company, profit or otherwise. However good the mission of the company is, money is essential for its day to day activities, if the cash flow is severed then the business automatically collapses.
The company has to consider many factors like, is fundraising a priority? Are there considerations for multiple inflow streams? Are the commodities and services being marketed in the right way and in alignment with the grantors wishes? Does the product meet the demand? Are the systems and equipment updated? Does the physical plant have the companies’ priorities in the right way? Is it the foundations’ mission to reinvest in itself?
Mary says that for a non-profit organization to stay relevant and ultimately achieve success it has to incorporate the culture of reinvesting in their own products, their systems and people, and essentially their plant location. It requires great leadership skills to anticipate needs and meet those needs appropriately, the organization should champion for the education of its staff on a regular basis to ensure they stay ahead of the pack, determining the difference between maintenance and advancing the mission is very important for an organizations’ chair.
Basically, budgets that show no developmental acumen year in year out will cumulatively lead to loses maintaining that same budget is said to be in “maintenance mode” which will lead to an inflation within the company as salaries go up, products and services go up and a budget that is on the same level will eventually lead to a decline and ultimately a shutdown.
People will typically come up with statements like “it’s the economy” because of keeping the organization in “maintenance mode” rather than being progressive. An organization that observes the trends, fills needs as required and strives to make a difference in the community, with great sales and marketing skills will have no problem with cash flow.
Filling a Need is Key
Filling a need and doing great work should be the fundamental principle governing an organization. The current non-profit work is always surrounded by education, health, and wellness regardless of their core mission. Those three issues will always be relevant in any community and should therefore be tied to any organization.
If an organizations mission is to gain support then it should ensure building relations that will ensure a win-win situation is achieved. The organization is going to thrive and succeed in such an environment.
A Great Board of Trustees
A good board is one that consists of trustees who are ready and willing to share their business knowledge, offer financial help when called upon, diverse in skill set, and has an ingrained desire to propel the organization forward. A great section of grantors this days look at the composition of the board, taking into consideration the types of professionals included and the way they are invested in the mission and drive of the organization.
The members of the team should know how to accomplish tasks in unison, offer cognizant support to the board president and the executive director. With the right people in possession of the right mindset, then trust and mutual respect is swiftly achieved.
The board members mission should be to make a difference and to be a part of something bigger than them. Boards can either be advisory or governing. Those responsibilities are clearly stated in the articles of incorporation. Members of the board should be willing and ready to undergo both orientation and training as per the specifications of the organization.
Recruitment of board members is often based on their range of influence, their specific skill set and their capacity to support the organization financially.
Sales and Marketing/ Public Relations
This is precisely achieved by increasing the products and service awareness to the community and allowing them to participate in the various activities sponsored by the organization. With so many social media outlets it has become easier for organizations to advertise and to engage the community around them. Presentation of materials may pose a challenge. What are the niches associated with the organization and how are they being promoted and marketed? What places your company above others?
Good work presented by the organization sells itself. If there is a local paper and the organization is doing exceptional work then the paper will be obliged to share their story. Keeping key community members and journalists in the know over your activities constantly will go a long way in promoting your public relations campaign.
The organization should be in a position to constantly promote their products and story to drum up awareness. People tend to disregard information they get for the first time, an organization that is willing to consistently put their products in line with information shared will eventually make it. In essence a nonprofit that aligns their aspirations to filling needs and doing exceptional work is a great sell.
Mission Statement that is clear and concise
Every member affiliated with the organization should be aware and clearly communicate the mission of the foundation. What are the organizations activities? Who do they actually serve and in what capacity? Who forms the customer base and what makes your organization stand out above others? What makes your organization unique and different?
Constantly revisiting the founder(s) original intent aids in defining and creation of a clear and precise mission statement.
A Supportive and Strong Volunteer Base
Build a volunteer base that is diverse and strong, train them and treat them appropriately to reap maximum gains. A good volunteer is a great asset to any organization. The volunteer base can look into recruiting high school and college students looking to expand their real life work experience. Create a program that caters for interns and young people in the community and watch the organization sufficiently grow itself.
Older community members and retirees are looking for avenues to utilize their time and talents. Bring them on board for wisdom and support for the organization. The key is to have variety in skill set and invaluable abilities that can help enhance productivity.
Showing your volunteers that you value the input they bring in will ensure they put in extra work for the betterment of the organization.
Adapt and Adjust
Strategic planning is essential for an organization. Having professional external auditors step in and assess the organization will give new insight and an opportunity to apply those steps to help it grow again. It is prudent to be willing to adapt and adjust. For instance if an event or program has outgrown its use it should be done away with. Coming up with new strategies will keep the organization afloat.
Make efforts to revive your staff if they are worn out or seek ways to replace them. Often are the times an organization will keep on a staff or board member in the misguided belief that the organization cannot survive without them.
Deepak Bhargava is Director of the Campaign for Community and has held several positions on a large number of nonprofit boards, inclusive of Council of Foundations Change. I had an interview with him recently. He shed some light on crucial issues on the running and safe practices in a nonprofit organization. We were joined by Michael Anderson who is the Director, Housing Trust Fund Project in the same organization.
In the interview, they talked of how to select the right social cause, the numerous roles of a social entrepreneur through the start-up period, the various ways of selecting employees for the nonprofit and much more.
There are Numerous Social Causes. How do you decide on the Right one and Make it a Success as a Nonprofit?
Deepak says that ‘The most interesting fact I found out from talking to the various social entrepreneurs is that the whole process wasn’t that ordered as is popularly deemed. They often create ideas based on personal experience and real happenings that prompt interest in them. The ideas often prompt them to reorder their lives to fit in with the nonprofit, this essentially gives a purpose filled sense to the organization.’
Which ways are initiated in the Process of selecting Employees and Board Members to Fit in With the Mandate of The Organization?
Deepak says “It is essential to begin with job descriptions for both employees and board members. The employer can begin with people who share your passion but not necessarily those who share your style. You are actually in a quest to complement the mandate that you set out to accomplish as an organization.” Michael had these to add “The right people in the right positions will ensure everything moves swiftly. When it comes to selecting the right board members, one should select people with the right leadership techniques for instance community leaders, successful business people with the right financial expertise. While there is a general attraction that comes with choosing friends and family, it is often important to be a little creative and to come up with a board that is in line with governance. This essentially ensures the board executes their roles correctly and in the right manner to avoid failure.”
How Does your Role Change as an Entrepreneur as the Nonprofit Organization Grows?
“The most important aspect is to know when to shift from being an entrepreneur to manager. Shifting is often considered a great hurdle, and often are times we see business people who don’t do well in shifting from obtaining wealth to the preservation of wealth. This is also a trend that is observed in small business owners who limit their growth because they don’t realize when the time is right to partner, consolidate, sell or merge. One great challenge that comes with being a social entrepreneur is that the skills that start you up in the quest for a fruitful organization often get in the way of being a great organizational leader. Self-reflection is important at every step of the way.” Says Michael.
Which is the most Essential ways to Fundraise? Is there an added way to ensure the Maximum Amount of Revenue that is usually missed?
Deepak says “As is usually the case with many businesses, family and friends are initially the first donors. Fund raising professionals often offer great insight but nothing beats telling the story in a passionate way while giving off an elevated level of competence. It is imperative that the organization explores every source of financing and resource potential.”
What are the Obstacles that may be encountered? What are the various ways that they may be avoided?
“One of the obstacles that the nonprofit may face is limited capital resource and the societies’ outlook. This is not simply a leadership problem, the many avenues to capital differs greatly when the returns are of a societal benefit in nature. The general outlook that shapes our view of the nonprofit may also limit growth.” Says Michael.
I also had an interview with Monique Barber, who is the chief executive officer at sixty and better, a nonprofit organization that seeks to elevate the lives of the elderly. She gave me important tips on how to run a successful nonprofit. She said that for an organization to be considered a nonprofit then they must file for, local, state, and federal tax-exempt status to meet the quota of a nonprofit. This allows the organization to apply for grants to fund their activities. Monies may also be accessed through special fundraising galas as well as volunteerism and generous giving. Profits made by the nonprofit are reinvested into these services and programs.
Tips for running a successful nonprofits are:
Clear and Concise Mission Statement
The statement gives the precise reason for the existence of a nonprofit. Without a clear purpose, it is possible for the organization to head in many directions and accomplish very little to nothing. A clear mission statement enables the nonprofit gather funds and grants to facilitate their mandate and services.
Top notch Record Keeping Habits
This ensures that the nonprofits paperwork such as IRS forms are kept up to date in a clear and concise manner. This essentially ensures the nonprofit maintain their tax exempt status. Filling these forms also allows the nonprofit to consistently ask for grants to fund their operations.
A Congruent Board of Directors
The board of directors is the most important aspect of the nonprofit. This aspect is usually overlooked to the peril of the organization. The board is usually made up of business leaders from within the community who bring in their expertise and propel the organization forward. The board also serve a legal function by providing guidance and a sense of direction to the foundation. Financial and technical assistance should also be encouraged among the members, who also serve in bringing about teamwork among the management, staff, and even themselves and choose, lead, and retain excellent staff members.
Start and Maintain several Funding Sources
In the event that sources of funding are severed then the organization goes out of existence. Therefor it is imperative that reliable sources of funding are established and maintained for the survival of the nonprofit. This in essence requires a dedicated team of staff members and management who work in perfect harmony for the betterment of the organization. The organization needs to keep an entirely updated database, encourage and maintain corporate sponsors and a list of volunteers by inviting them to luncheons and dinners, sending personal updates and newsletters.
Encourage Public Relations
It is important for the nonprofit to maintain good relations with the public. The organization should make consistent effort in promoting the organization, this may be done in several ways including family picnics and networking with the local community. Press releases help the organization keep the public appraised of the companies’ accomplishments which goes a long way in boosting the publics’ confidence.
Founder’s Syndrome should be avoided
This essentially occurs when the founder of the nonprofit becomes too entangled in the day to day running of the organization and not relegating duties to other staff members, curtailing the growth of the organization in the process. This will eventually result in the nonprofit following its founders mandate and discarding its mission statement. It is therefore the responsibility of the board to confront the executive involve and demand changes. The executive either changes the style of doing things or is replaced or in extreme cases the nonprofit is dissolved.
Neill Coleman is the Chief Philanthropy Officer at Trinity Church Wall Street. I had the opportunity to speak to him on the various ways of running a successful nonprofit organization.
He briefly outlined 10 ways to run a successful nonprofit and the ways to determine if a nonprofit is an excellent performer:
Business Plan. Nonprofit organizations that often succeed in their mandate have a comprehensive, concise, and compelling business plans. These plans should clearly draw the organizations aspirational goals, revenue strategies, and key performance indicators, detailed financial projections, and team/ staff proposition.
People. Successful organizations have devised ways of attracting and retaining top level staff with good salaries and a highly supportive culture. The perception that nonprofit workers should earn less than their peers in the same levels and capacities is outdated and has been done away with. Relying on this notion is detrimental to the organizations growth and sustainability.
Gearing towards a good Social Return on Investment (SROI). Nonprofits who are gearing towards success don’t only ask for money but rely on clearly drawn SROI statements to raise funds. This statement clearly states the organizations area of operation. It proofs the organizations mandate and a clear understanding of the mission it sets out to accomplish.
Dashboard. This is the translation of business plans to a one page dashboard to clearly state the organizations KPIs. The dashboard ensures the KPIs project quality and reach. A precisely drawn dashboard will ensure the organizations’ success.
Financial Controls. Exceptionally performing organizations have annual budget predictions that are drawn month-to-month that details their income and expenses. Successful organizations have budget plans that ensure they have a minimum of 6 months cash in the bank. These organizations will readily avail their income statements and balance sheets when called upon.
Revenue. Highly performing organizations can reliably forecast their range of revenue expected over a period of up to 12 months and comfortably provide updates every 2 weeks. These organizations will also ensure all nonprofit domains are accounted for including individuals, foundations, corporations, government, earned income, and capita.
Board. A good board will have a good number of people with deep experience in business, finance, or accounting. The organizations that have this kind of experienced board will have better governance techniques and oversight for the success of the organization.
Relationships. Top range of nonprofits focus on cultivating great relations with current and prospective donors and investors and don’t only appeal for cash. The organizations ensure they keep updating their outcomes and actively share their improved operations and specific investments. They also focus on individuals and leverage the information to deepen the relations further.
Growth. A successful nonprofit will ensure they are growing and provide updates for the same annually. The organization should have consistent social impact with a growth scale of 20%- 30% or more.
Joy. Happiness and joy increases productivity among the staff and ensure confidence among the clientele. Being part of an organization that seeks to change the world breeds joy.
William Moran president of the Bowery Residents Committee further shares with us some insights that will ensure the success of the nonprofit organization.
He says that a highly performing nonprofit will have:
Clear Objectives
Highly performing organizations will clearly state their mission to the concerned parties. Nonprofits limit their area of scope and always provide printed documentation stating their goals clearly including their charity work. Promotional messages should be clearly outlined to make understanding easier.
Skilled and Passionate Volunteers
Staff members who are sufficiently qualified are the key to an organizations success. Nonprofit organizations that are geared towards success will have an employee base from diverse backgrounds with the same passion for the cause the organization set out for. The organization will also seek to have passionate board members and top executives in their employ that share the same cause.
The board ensures that enough individuals volunteer to partake on the tasks on a daily basis. It is imperative that the board should focus on bringing competent individuals and social impact rather than focusing on volumes of donations and funds.
Effective Planning and Monitoring of Operations
To ensure success nonprofit organizations consistently keep tabs on their operations, revise their strategies, and tracking and encouraging input. Staff members are charged with the responsibility of reporting accomplishments and positive outcomes. The organization must also ensure that they have a solid reputation with other similar groups.
Inspiring and Persuasive
Highly performing organizations constantly rallies behind like-minded individuals and groups to promote their cause. These organizations constantly promote their cause and as a result ensure success and continuity. The organization can also promote the perception of the community by providing resources that help those around them.