How to Sustain a Nonprofit When Money is Dry
Today’s nonprofit leader needs to be more than just “the boss”. The need today are skills which encompasses financial, operational and executive that is a combination on the best qualities of corporate world c-level executives.
Today nonprofits are faced with a rough road ahead because of the problems with increasing turnover and decreasing revenue. Like c-level-executives they have to grow their programs, bring more money in the door and use resources more effectively. It used to be that these organizations were continuously supplied with resources but today they need to come up with programs so that it can sustain itself. It is designed in such a way that it can endure on its own.
This is now the problems that non-profit leadership is facing. What we can see here is that every non-profit leader is actually driven to administer programs and they don’t see any value is building a business foundation for the reason that this organization is a mission and is in conflict with anything to do with business. This wrongful outlook has substantially caused an enormous damage because funding a program can at times dwindle and worst, halted. When the funding is halted then it can defeat everything that they have started since it is not able to sustain the activities that they have set. It is not only funding that gives them difficulties but even the human resources of these organizations are having problems. Most non-profit organizations have no strategy for recruitment and they also do not have any succession plan.
What can we conclude then?
Non-profit organizations are typically divided into major functions such as central administration, governance, and programming, so the leadership must not neglect less essential functions when there are dwindling resources and more emphasis should be put on high priority levels of the organization. Leaders can allow their resources to stretch thin but they should not drop the essential functions because when it begins to weaken It can affect the organization’s ability to fulfill its mission.
It cannot be overstated that the organization need a strong non-profit board. Since they are the ones with community connections they are the front runners of the organization. They make the donors understand the functions of the organization.
There is a need for non-profit organizations to regularly assess and evaluate their programs and operations so that they can better target their constituency, maintain morale, and keep the organization energized. Evaluation should not be excluded for more essential functions that must be sustained. Non-profit organization needs to find new ways to recruit and cultivate next generation organization leaders so that there will be a smooth leadership transition.
Financial management and fundraising should also never be neglected.