Five Keys To Staying Alive As a Nonprofit Organization
Giving is the new abnormal.
It's a well-accepted fact that individual giving is down, way down.
Actually, not giving is the new normal.
Those who gave much are giving less, and those who gave a little, aren't giving at all.
Now more than ever, nonprofit organizations are having to look at reworking their budgets and making some very difficult decisions.
Extreme measures are being taken, all the way from cutting staff to completely dissolving.
And people are so unsure about tomorrow.
Surprisingly, there are some organizations which are still thriving.
And they are located in both large metropolitan areas and in small, rural communities.
Why do some thrive, and others live on the daily edge of dissolution? How does a nonprofit stay alive and live well in these times? There are five keys which are critical to long-term sustainability.
Five Keys to Staying Alive As a Nonprofit 1.
Develop all the "Social Capital" as possible.
Spend more time on the phone, visiting and having coffee or dinner than other activities.
It's all about Developing Relationships and not so much about internal operations.
The fact is, there will be no internal operations without the money coming from all those people and organizations in which time and interest is invested.
Without "friends" there won't have anyone attending fundraisers, sending end-of-year gifts, or donating online.
The resources which are needed are in someone else's account, and could easily be in yours.
So build social capital one person or group at a time.
2.
And Be Sincere.
No one loves a phony, and funny thing, people can spot one a mile away.
Genuine Sincerity is extremely attractive and has a way of drawing people to itself.
Getting to know someone just for their money is a sure-fire way not to get their money.
Sincerely care about their passions and situations.
If a donors' passions and a fundraiser's passion meet, then there is an opportunity to develop a wide pathway to giving.
3.
A Fiery Unrest for the Mission is critical.
In other words, a burning discontent in ones heart for the people served and their need provides the perseverance demanded for a strong organization and its survival.
Without that extra measure of urgency and love, the extra drive that is needed to accomplish great things will never arrive.
Without enthusiasm any fundraiser will be half-hearted and accomplish far less than the goal.
4.
Always have Money in Reserve.
Work with less now for more money later.
Sleeping well is easier knowing there is a contingency fund helping swim across the lake of uncertainly.
In times when government funding and contracts are always on the line leaders plan for the "worst case scenario" and are always glad they did.
This is especially encouraging for grant readers, as the know that good leadership is at the helm when they see a strong bottom line.
5.
Have Multiple Streams of Income.
It's too easy to rely only on grants and government contracts for sustainability.
However, every experience leader knows that, sooner or later, those funds disappear.
From budget cuts to reorganizing priorities, funders have their reasons for not sending that steady check that they have sent for years.
Nonprofit executives and boards have to look at other means for income.
It is wise to have a minimum of five various funding sources targeting various audiences.
Grants, contracts, donations, enterprises,and local fundraisers are five critical and traditional sources.
Your local well-planned fundraiser can bring in so much more than money and often become yearly events.
This can be instrumental in long-term sustainability.
It's a well-accepted fact that individual giving is down, way down.
Actually, not giving is the new normal.
Those who gave much are giving less, and those who gave a little, aren't giving at all.
Now more than ever, nonprofit organizations are having to look at reworking their budgets and making some very difficult decisions.
Extreme measures are being taken, all the way from cutting staff to completely dissolving.
And people are so unsure about tomorrow.
Surprisingly, there are some organizations which are still thriving.
And they are located in both large metropolitan areas and in small, rural communities.
Why do some thrive, and others live on the daily edge of dissolution? How does a nonprofit stay alive and live well in these times? There are five keys which are critical to long-term sustainability.
Five Keys to Staying Alive As a Nonprofit 1.
Develop all the "Social Capital" as possible.
Spend more time on the phone, visiting and having coffee or dinner than other activities.
It's all about Developing Relationships and not so much about internal operations.
The fact is, there will be no internal operations without the money coming from all those people and organizations in which time and interest is invested.
Without "friends" there won't have anyone attending fundraisers, sending end-of-year gifts, or donating online.
The resources which are needed are in someone else's account, and could easily be in yours.
So build social capital one person or group at a time.
2.
And Be Sincere.
No one loves a phony, and funny thing, people can spot one a mile away.
Genuine Sincerity is extremely attractive and has a way of drawing people to itself.
Getting to know someone just for their money is a sure-fire way not to get their money.
Sincerely care about their passions and situations.
If a donors' passions and a fundraiser's passion meet, then there is an opportunity to develop a wide pathway to giving.
3.
A Fiery Unrest for the Mission is critical.
In other words, a burning discontent in ones heart for the people served and their need provides the perseverance demanded for a strong organization and its survival.
Without that extra measure of urgency and love, the extra drive that is needed to accomplish great things will never arrive.
Without enthusiasm any fundraiser will be half-hearted and accomplish far less than the goal.
4.
Always have Money in Reserve.
Work with less now for more money later.
Sleeping well is easier knowing there is a contingency fund helping swim across the lake of uncertainly.
In times when government funding and contracts are always on the line leaders plan for the "worst case scenario" and are always glad they did.
This is especially encouraging for grant readers, as the know that good leadership is at the helm when they see a strong bottom line.
5.
Have Multiple Streams of Income.
It's too easy to rely only on grants and government contracts for sustainability.
However, every experience leader knows that, sooner or later, those funds disappear.
From budget cuts to reorganizing priorities, funders have their reasons for not sending that steady check that they have sent for years.
Nonprofit executives and boards have to look at other means for income.
It is wise to have a minimum of five various funding sources targeting various audiences.
Grants, contracts, donations, enterprises,and local fundraisers are five critical and traditional sources.
Your local well-planned fundraiser can bring in so much more than money and often become yearly events.
This can be instrumental in long-term sustainability.
