An Immortal Nonprofit

I’m just back from New York where everyone was desperate to offer me their seat on public transportation.  Even people I suspected were not that much younger than I.  Which made me feel that I must really look old.  I don’t FEEL old, however.  I’m active, have (most of my) cognitive abilities about me.  But I am only a few months away from 80, and I’m guessing that shows.

Still, I live a lot in denial.  I think forward 30 or so years.  And continue consulting and training.  I work out hard, walk 7-10 miles most days, and somehow think I am immortal.

I see this in a lot of nonprofits.  Despite being in the red for sometimes years on end, they think that because there mission it’s important, their work is good, and they have so far, they will survive for at least another decade. To which I remind them, not if they don’t change something.

Something that they must change is to understand, as this recent election showed clearly, it really is all about the economy.  Specifically, YOUR economy.

What do you need to consider to ensure your sustainability?

For starters, be honest and realistic about your revenue sources.    

  Are they renewable?

  Do they really bring in as much as you tell your board and your funders?  Or does it cost so much to earn or raise a dollar that perhaps you’d be off without this particular stream?         Have you looked clearly at your cash flow?

  Do you understand your fundraising goal and what it will take to keep your nonprofit financially healthy?

What about your programs?   More specifically, does your budget reflect the actual cost of doing your work?

Are your programs responding to what your community needs?

Or are you simply doing what you’ve always done?  For some organizations, that is perfect—don’t change just for the sake of changing. But for many organizations, the same old/same old just doesn’t cut it anymore.

Look at your people.  Do you provide staff development programs?  Or are they all stuck in place?  That will lead to more expense as new employees generally cost more than those who have been with you for a period of time.

How’s your technology?  Are you keeping up with the proverbial Jones or are you falling way behind.  You must stay on top of these issues, or you will fall far behind.

And finally—the big bugaboo for too many nonprofits—the board.  Does your board understand and act on their governance role?  It is critical that they understand their role in financial stewardship, resource development, risk management, and strategic direction.