Reinventing

the

Nonprofit

Leader

© 2015 Social Velocity

More Competition1.4 million nonprofits in US, up 19% since 1999

More for-profit social change orgs

Less FundingPrivate donations level over last 30+ years

Government spending cuts at every level

More Complex Social Challenges

Crumbling institutions

Growing wealth disparity

Shrinking civil discourse and participation

Struggling LeadersLimited resources for building leadership skills

It’s time to

Reinvent the

Nonprofit Leader

1. Unlocks the Charity Shackles

2. Moves to Impact

3. Embraces Strategy

4. Uses Money as a Tool

5. Refuses to Play Nice

6. Breaks Down The Walls

7. Demands Real Help

8. Remembers The Dream

The Reinvented Nonprofit Leader

1. Unlock the

Charity Shackles

Baked Into vs. Beside the Economy

Systems vs. Symptoms

Experts vs. Volunteers

Demand vs. Apology

Investment vs. Pennies

“Social Change”

“Charity”

The number of nonprofits grew 50x faster

than businesses over the last 10 years

Nonprofit revenues grew at double GDP

growth rate

Millennials bake social change into work

and life

Source: The Urban Institute

Social Change

has Value

2. Move to Impact

In the past,

nonprofits were rated

on...

...And now

nonprofits are

rated on…

Amount spent on “overhead”

(20%+ was unacceptable)

Financial Health

Financial ratings tables

Fundraising efficiency

Working capital ratio

Revenue & expense growth

Accountability & Transparency

Independent board

Audited financials

Policies/procedures

Information sharing

Results Reporting

Align mission and $

Results logic & measures

Validators

Client voice

Evaluations

Growing Ratings Market

Give based on values

Want to be engaged

Focus on impact

Pave their own way

Source: www.nextgen.org Johnson Center for Philanthropy and 21/64

Target Population

Tier Two K-2nd grade children in

AISD

External Context

High school drop out rate

increasing

Activities

Provide daily,

targeted literacy

intervention

Short & Long-Term Outcomes

Students get to grade level

in reading, improve

academics

Assumptions

Literacy level at 3rd grade

predicts future

success

The Theory of

Change

3. Embrace Strategy

Financial Crisis

$ for Mission Creep

Program Development

Board

Uncertainty

Decision Making

Reactive Vs. Strategic

Stay Afloat Fix the Problem

“Yes” “No”

Status Quo Constant Improvement

Rubber Stamp

Fear

Unique Assets

Data and ReasonEgo

Opportunity

Competitors/Collaborators

Community

Problem

Nonprofit’s Core

Competencies

A nonprofit

is most

effective

here

Attracts more, longer-term funding

Directs activity

Filters future opportunities

Engages board & staff

Puts resources to highest/best use

Creates financial sustainability

Achieves more impact

Benefits of

Great Strategy

Clients, Board, Staff, $,

Volunteers

Great Strategy

Change to a Social

Problem

5 Key Strategic

Questions

1. What is our end goal?

2. What are our core competencies?

3. What is our strategy for getting to our end goal?

4. What is the sustainable model to get there?

5. What people and networks do we need with us?

4. Use Money as a Tool

Financing is...

A long-term strategy for bringing enough

money in the door to achieve your mission.

How much should we raise to

accomplish our goals?

How much can we accomplish

with what we can raise?

Board, Staff, Donors

Money Strategy

Infrastructure

Sustainability

Funding Sources

Programs

Message

Fundraising Financing

Worn out Excited, engaged

Annual, programs Long-term, all costs

Inadequate Fully funded

Weak

Few

Strong

GrowingFlat or declining

Diverse, Robust

Community changeNeed

Assess Your

Money Function

1. Organizational Strategy

Does it integrate money & programs?

Does it create measurable value?

2. Mission & Vision

Is the vision a compelling beacon?

Does the mission work toward it?

3. Board & Staff Leadership

Does board have the right skills, experience, networks?

Do we have the right staff and structure?

4. Program Delivery & ImpactDoes our program portfolio balance social/financial impact?

Do we measure results?

5. MarketingAre we making a case for investment?

Are we using the right channels?

6. External PartnershipsDo we have the right strategic alliances?

7. Financial ModelDoes money align with mission & competencies?

Are all revenue-generating activities profitable?

5. Refuse to Play Nice

NonprofitVolunteers

Staff

Board Funders

Clients

Policymakers

So many demands push on a nonprofit…

Say “No” To…

Mediocre strategy

Hiding your full costs

Asking for permission

“Mission creep” donors

Underperforming staff

Absent board members

Lead Real

Conversations

1. Gather Data

2. Set Goals

3. Manage Politics

4. Be Transparent

5. Lead

6. Break Down the Walls

Staff

Executive Director

Board

Stakeholders

Marketplace

Continuous

360°

Analysis

Strategy

Boarddirection

Executive Director leadership

Staffaction

Stakeholderfeedback

Create a 4-legged strategy

7. Demand Real Help

Nonprofit Leaders

Need Help

73% of nonprofit leaders say they lack

resources to build leadership skills

Biggest challenges are:

Fundraising

Staff management

Board management

Sources: Center for Effective Philanthropy and Meyer Foundation

“Nonprofits that build robust

infrastructure (like sturdy IT and

financial systems, fundraising

processes, and other essential

overhead) are more likely

to succeed than

those that do not.”

- Ann Goggins Gregory & Don Howard,

“The Nonprofit Starvation Cycle”

The Starvation

Cycle

Funders Demand More for

Less

Nonprofit Skimps on

Staff, Systems

Nonprofit Is Less

Effective

Fewer People Served,

Changed

Overhead is NOT

a Dirty Word

% of Dollars Spent on Programs

Focuses on inputs, rather than impact

Compares apples to oranges

Forces nonprofits to “hide” infrastructure costs

Distinction is meaningless and destructive

Revenue

Ongoing

Supports day-to-day

BUYS services (beds for a homeless shelter)

vs. Capital

One time

Supports infrastructure

BUILDS organization (evaluation system)

Two Kinds

of Money

Capacity Capital

BUILDS a Nonprofit

Technology

Systems

Evaluation

Planning

Development staff

Training

Leadership coaching

Nonprofit lacks infrastructure

Capacity capital strengthens the nonprofit

Nonprofit achieves more outcomes, impact

1. List Your NeedsWhat is holding your org back?

2. Add a Plan and Price TagWhat is your plan and what will it cost?

3. Identify Current Major Donors or BoardWho could be convinced of the need?

4. Make the PitchCapacity investments = more mission

Build Your

Capacity Capital Pitch

Before

Tutoring 800 students/year

Small, disengaged board

Lack of management expertise

Limited individual & school district dollars

Raised $60K+ in capacity capital for

planning & leadership coaching

After

3X growth in students (800 to 2,400)

Larger, more engaged board

Significant financial commitment from school district

Growing donor base

8. Remember the Dream

Keep Your True North

Get Brutally Honest

Find Inspiration

Share War Stories

Become a Cheerleader

Forgive Yourself

1. Unlocks the Charity Shackles

2. Moves to Impact

3. Embraces Strategy

4. Uses Money as a Tool

5. Refuses to Play Nice

6. Breaks Down The Walls

7. Demands Real Help

8. Remembers The Dream

The Reinvented Nonprofit Leader

Learn More…

Reinventing The

Nonprofit Leader Book

Download Now

Other

Nonprofit Tools

Books

Bundles

Webinars

Guides

socialvelocity.net/tools

Nonprofit Leader

Coaching

More engaged board

Clearer strategic thinking

More productive staff

Greater financial sustainability

Higher performance

More info at

socialvelocity.net/consulting

© 2015 Social Velocity

www.socialvelocity.net

(512) 694-7235

Twitter: @nedgington

Facebook: Social Velocity