Here is something to think about: Two nonprofits with similar missions, both passionately serving their communities, but one is going to have to close its doors, while the other is vibrant and growing. Why the difference? The nonprofit about to close its doors received a $12 million legacy gift 10 years earlier, so it can’t be about the money, can it? What causes some nonprofits to fail and others to succeed and serve their clients and community successfully for many years?
Often, when the topic of sustainability arises, the focus is on money. But after several decades working in the nonprofit sector, I’ve become convinced sustainability is about so much more than money. I have developed 20 key strategies any organization can use to build long-term sustainability. These strategies are based on the core elements shown in Figure 1.
Strategy No. 1: Balance the Core Elements (Infrastructure)
Too often, nonprofits focus all their time and attention on two of the core elements of a successful nonprofit: Programs and resource development (fundraising). Ignoring the other four can be disastrous when trying to build sustainability.
Strategy No. 2: Establish Clear Vision and Mission (Infrastructure)
When was the last time you really looked at your vision and mission? Are you sure they are relevant? Vision is why your nonprofit exists and mission is how you achieve the mission.
Strategy No. 3: Embed Metrics throughout the Nonprofit (Infrastructure)
How will you know if you are doing a good job if you do not have a way to measure effectives in everything you do? That means establishing measurable outcomes and assessment processes for each one of the core elements, even within internal operations or administration.
Strategy No. 4: Implement a Never-Ending Strategic Planning Process (Infrastructure)
Unless your strategic planning process allows for annual assessments and updates, it probably is inadequate and will not meet the rigors of the twenty sustainability strategies.
Strategy No. 5: Establish Outcomes Measurements (Program)
You must have a way to evaluate and measure the effectiveness of programs with research-based outcomes measurements.
Strategy No. 6: Build Relevant Programs (Program)
Obviously, you cannot build relevant programs until you have a way to measure their effectiveness. But once you have those measurements, you will be better able to adapt programs to the needs of your clients and community.
Strategy No. 7: Diversify Funding Sources (Resource Development)
If you have more than 20 percent of funding coming from any single source, you are putting your nonprofit in jeopardy if the source dries up.
Strategy No. 8: Evaluate Fundraising Cost vs Fundraising Income (Resource Development)
Too many nonprofits keep using the same fundraising strategies without considering the ratio of the costs to raise the funds compared to income raised, including staff costs. Evaluate all resource development strategies (at least annually) to make sure you are getting a valid return for the costs.
Strategy No. 9: Implement a Senior Staff Succession Plan (Administration)
Too much turnover in staff will hurt sustainability, so always work to train staff to fill the next level up.
Strategy No. 10: Establish Institutional Memory Procedures (Administration)
If you are hit by truck tomorrow, will anyone know enough about your nonprofit’s policies and procedures to immediately take over? Therefore, written policies and procedures are essential.
Strategy No. 11: Implement Accelerating Technologies (Administration)
Implement technology and software upgrades, which is keeping pace with strategic implementation of the vision and mission of the nonprofit across all six core elements.
Strategy No. 12: Outsource (Administration)
Based on cost benefit analysis, figure out when it makes sense to outsource: Cybersecurity, property management, accounting, consulting, facilitation, personnel management, etc.
Strategy No. 13: Implement a Succession Plan (Board and Volunteer Development)
As with staff, many volunteer positions will benefit from succession planning, sometimes three to five years in advance.
Strategy No. 14: Establish Regular Board Training (Board & Volunteer Development)
Board members are responsible for the legal governance of your nonprofit. Doesn’t it make sense to provide them with regular reminders of their responsibilities?
Strategy No. 15: Recruit High Capacity Volunteers (Board and Volunteer Development)
Highly educated and experienced volunteers can be invaluable to your nonprofit if you provide them with meaningful experiences. But that requires solid recruitment, training, recognition and dismissal policies and procedures for all three types of volunteers: Board, committee and program.
Strategy No. 16: Integrate Marketing and Brand Identity Throughout the Organization (Marketing)
It isn’t just about publicity, but about marketing the passion, vision and mission of what you do and how well you do it.
Strategy No. 17: Demonstrate Value to the Community (Marketing)
What does the passion and mission of your nonprofit mean to the community? What difference does it make?
Strategy No. 18: Build Competitive Advantage (Community Involvement)
What sets you apart from other similar organizations? Build on that advantage.
Strategy No. 19: Leverage Assets Through Collaboration (Community Involvement)
Become a part of cross-sector, community problem-solving efforts to enhance what you are doing and to bring more resources to the table.
Strategy No. 20: Establish Leadership Role in Primary Mission (Community Involvement)
If you are good at what you do, then figure out how to become a community leader in that issue.
When you look closely at these 20 strategies, you can see they are probably things you already know, but did not realize how collectively they can greatly increase sustainability for your nonprofit. Unless you consciously try to address each one in your strategic planning and daily work plans, you will be wondering why your nonprofit is on life support and not sustainable for the long haul.
