Strategy
"Be Prepared" is a Motto for EVERY Nonprofit
Fri Oct 30 2009
By Jeff McLinden
As October turns to November, there's a certainty here in Colorado Springs -- we'll have had at least one good snowfall. As a result Halloween is always a dicey proposition for trick-or-treaters in our Rocky Mountain location. Snowfall requires a bit more planning when you're dressing up to "collect treasure." You're either ready for it or you're not.
There's an interesting parallel here for nonprofits... Inevitably, the fall season arrives and along with it the best season of the year for fundraising -- "collecting treasure," if you will. What is fascinating, however, is the failure to plan far enough ahead to be prepared for what comes next. Oh, sure, the budget cycle has most likely happened and the board has approved the anticipated 2-5% increase in income and expenses for next year...assuming there are no surprises. This pattern is what defines the lifecycle of hundreds -- even thousands -- of nonprofit and ministry organizations.
The only problem is that snowstorms DO happen.
I've consulted with ministry nonprofits for nearly 20 years and rarely have I seen organizations engage in a pattern of continuous scenario planning. Anticipating problems (such as the last year's economic downturn) or opportunities (such as a favorable political or social climate for your cause) has rarely entered the budget discussions. Even more troubling is the lack of planning for growth. While new names and new donors are the lifeblood of any nonprofit, scant attention is paid to planning and budgeting for acquisition strategies designed to fuel growth.
You can easily tell the organizations that do NOT suffer from this kind of negligence... They're the ones that exhibit a pattern of constant innovation, matched by robust growth. And they typically top the lists of "best-run nonprofit organizations." You can also identify the organizations that simply drift from year to year in "incremental survival" mode, with leaders and board who see their role as custodial stewards rather than aggressive entrepreneurs for the sake of their causes.
Fall fundraising season is nearly always an enjoyable time of financial harvest -- but it is, too often, followed by the financial and strategic doldrums that are symptoms of a flawed approach to planning. Let me encourage you to adopt a new mindset -- one that views planning not as an "annual event," but one in which continuous evaluation of your organization's strengths and weaknesses, opportunities and problems, and, especially, the potential threats you face, help foster the crafting of ever-evolving planning scenarios that prepare you for anything.
There's something rather comforting in being prepared, regardless of what the future holds.
As October turns to November, there's a certainty here in Colorado Springs -- we'll have had at least one good snowfall. As a result Halloween is always a dicey proposition for trick-or-treaters in our Rocky Mountain location. Snowfall requires a bit more planning when you're dressing up to "collect treasure." You're either ready for it or you're not.
There's an interesting parallel here for nonprofits... Inevitably, the fall season arrives and along with it the best season of the year for fundraising -- "collecting treasure," if you will. What is fascinating, however, is the failure to plan far enough ahead to be prepared for what comes next. Oh, sure, the budget cycle has most likely happened and the board has approved the anticipated 2-5% increase in income and expenses for next year...assuming there are no surprises. This pattern is what defines the lifecycle of hundreds -- even thousands -- of nonprofit and ministry organizations.
The only problem is that snowstorms DO happen.
I've consulted with ministry nonprofits for nearly 20 years and rarely have I seen organizations engage in a pattern of continuous scenario planning. Anticipating problems (such as the last year's economic downturn) or opportunities (such as a favorable political or social climate for your cause) has rarely entered the budget discussions. Even more troubling is the lack of planning for growth. While new names and new donors are the lifeblood of any nonprofit, scant attention is paid to planning and budgeting for acquisition strategies designed to fuel growth.
You can easily tell the organizations that do NOT suffer from this kind of negligence... They're the ones that exhibit a pattern of constant innovation, matched by robust growth. And they typically top the lists of "best-run nonprofit organizations." You can also identify the organizations that simply drift from year to year in "incremental survival" mode, with leaders and board who see their role as custodial stewards rather than aggressive entrepreneurs for the sake of their causes.
Fall fundraising season is nearly always an enjoyable time of financial harvest -- but it is, too often, followed by the financial and strategic doldrums that are symptoms of a flawed approach to planning. Let me encourage you to adopt a new mindset -- one that views planning not as an "annual event," but one in which continuous evaluation of your organization's strengths and weaknesses, opportunities and problems, and, especially, the potential threats you face, help foster the crafting of ever-evolving planning scenarios that prepare you for anything.
There's something rather comforting in being prepared, regardless of what the future holds.
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