Nonprofits are messy. It\u2019s true even for the best nonprofit organizations out there.<\/p>\n\n\n\n
Not enough money… Too many cooks… An abundance of passion…<\/p>\n\n\n\n
Often on this blog I write about what nonprofits are doing wrong and how to fix it. After all, \u201cnonprofits are messy\u201d is more than just my tagline — it\u2019s my mantra. And my mission is to help nonprofits clean up the mess.<\/p>\n\n\n\n
But today, I want to focus on what the best nonprofit organizations are doing right<\/em>. My hope is this will inspire you and set an aspirational vision. Maybe your nonprofit does a bunch of these really well (I hope so!), but we all have something<\/em> to work on.<\/p>\n\n\n\n There are fourteen things the best nonprofit organizations do really well.<\/p>\n\n\n\n (Want to go much deeper with me into these 14 attributes? I have a free guide you can download<\/a>.)<\/strong><\/p>\n\n\n\n Here they are\u2026<\/p>\n\n\n\n\n\n\n\n This is my new favorite phrase.<\/p>\n\n\n\n The people who work at your organization are your most important asset. Hiring and retaining the right people is essential to serving your clients or community in the best way you can.<\/p>\n\n\n\n And by the way, turnover is really costly. The best nonprofit organizations get the right people on the bus and make sure their employees never want to leave.<\/a><\/p>\n\n\n\n They pay them as well as they can, appreciate the hell out of them, are generous with comp time, and care about them like the three dimensional people they are.<\/p>\n\n\n\n And when that happens, word gets out and the really good folks take notice.<\/p>\n\n\n\n See why it\u2019s my favorite new phrase?<\/p>\n\n\n\n The best nonprofit organizations have a strong leader. Plain and simple.<\/p>\n\n\n\n A cheerleader. A smart, eloquent voice that can lead people to two important statements: \u201cI want to know more\u201d<\/em> and \u201cI want to do more.\u201d<\/em><\/p>\n\n\n\n An Executive Director with her nose in cash flow statements worrying about payroll will never have the time or focus to create a long-term strategy.<\/p>\n\n\n\n At the best nonprofit organizations, the board treasurer is an active partner with the staff finance person and a first-rate communicator so that every member of the board understands the basics of the finances of the organization regardless of financial prowess or background.<\/p>\n\n\n\n There are key financial vital signs the best nonprofit organizations focus in on. Things like accounts payable, cash on hand, etc. If you want a fuller list, I have a financial dashboard<\/a> I created that you can download on a post I wrote about board governance.\u00a0<\/strong><\/p>\n\n\n\n A thriving nonprofit does not have all its eggs (read: dollars) in one basket. WAY too many organizations are heavily dependent on events<\/a>.<\/p>\n\n\n\n The portfolio must be diverse to be healthy. The best nonprofit organizations raise funds from a good mix of individuals (large and small donations), foundations, events, online, direct mail, and government (where appropriate).<\/p>\n\n\n\n The best nonprofit organizations have:<\/p>\n\n\n\n The best nonprofit organizations have created boards with intention. There is a composition matrix that guides the recruitment process for proactive outreach to prospects who have the skills, experience, and attributes the organization needs.<\/p>\n\n\n\n The board also includes folks who understand the sector you\u2019re in and folks impacted by the work you do. <\/strong><\/p>\n\n\n\n The best nonprofit organizations have a smart recruitment process<\/a> and a really comprehensive and engaging board orientation<\/a>.<\/p>\n\n\n\n Once onboard, ongoing education about board roles makes all the difference. The best nonprofit organizations also have high functioning committees that have clear charges and annual goals.<\/p>\n\n\n\n Too many organizations simply \u2018follow the money.\u2019 A funder who offers a check so the organization can start Program X.<\/p>\n\n\n\n This program is not one the organization would have started otherwise and takes their focus away from what really matters.<\/p>\n\n\n\n The best nonprofit organizations use their mission as a north star, and if a program\u2019s relevance to the mission is unclear, they have the discipline to say no.<\/p>\n\n\n\n It\u2019s not enough to simply have anecdotes of impact.<\/p>\n\n\n\n The best nonprofit organizations have mechanisms in place to measure success. It\u2019s key to strategic planning and yes, funders want to know too!<\/p>\n\n\n\n It\u2019s crazy how hard nonprofit leaders find this but everything from a finely tuned \u201celevator pitch\u201d<\/a> to a smart website to press visibility separate the good from the great.<\/p>\n\n\n\n You bet this includes a smart social media strategy (no I did not say a cool looking website) but it\u2019s more than that. I\u2019m talking about an organizational strategy across all departments that\u2019s designed to invite folks in. As donors, as volunteers, as prospective board, and staff.<\/p>\n\n\n\n I know. You thought you had this one until you read \u201cboard,\u201d right? You do staff reviews, sure, but the board? Are you kidding, Joan?<\/p>\n\n\n\n Uh. No. Not kidding.<\/p>\n\n\n\n The best nonprofit organizations have a strong Board Governance committee that administers some kind of simple self-assessment<\/a> to each board member as a catalyst for a conversation about what\u2019s working and what each board member needs to be successful.<\/p>\n\n\n\n It\u2019s also a mechanism for \u201ccalling the question\u201d for a low performer.<\/p>\n\n\n\n On the board side, this is why it\u2019s so important that the recruitment committee look at attributes as well as skills. The best nonprofit organizations recruit for leaders.<\/p>\n\n\n\n This is also why committees are key \u2013 they give boards the opportunity to test drive potential leaders.<\/p>\n\n\n\n As for staff, Executive Directors at the best nonprofit organizations hire folks who could replace them<\/a>. And then they invest in their development.<\/p>\n\n\n\n And if they have a sizeable staff, their senior staff members engage in exactly the same strategy with their staff members.<\/p>\n\n\n\n Homegrown talent — a person who has been with the staff and board — has institutional knowledge and experience<\/a>. Just think about how much more someone like that brings to the table.<\/p>\n\n\n\n The strategies at the best nonprofit organizations set a clear and inspiring vision.<\/p>\n\n\n\n Let\u2019s be clear. I\u2019m not talking about some 5-year plan that causes the organization to dig into weeds (often called KPIs \u2013 \u201ckey performance indicators\u201d)<\/em> \u2013 tasks to be accomplished and boxes to be checked off.<\/p>\n\n\n\n I\u2019m not talking about a five-year plan at all. Does anyone<\/em> have any<\/em> idea what is happening in 5 years?<\/p>\n\n\n\n I\u2019m talking about a destination that the board and staff can wrap their heads and hearts around, that they can raise money around, and the big steps they have to take to get there. I\u2019m also talking about a plan that allows an organization to be opportunistic and nimble<\/a>.<\/p>\n\n\n\n I\u2019ve saved the most important for last. What is the one thing the best nonprofit organizations do more frequently than anyone else?<\/p>\n\n\n\n There\u2019s so much to unpack on this one that it could take up an entire blog post. In fact, I\u2019ve already written two others on the subject:<\/p>\n\n\n\nTHE 14 ATTRIBUTES OF A THRIVING NONPROFIT<\/h2>\n\n\n\n
1) The best nonprofit organizations are seen as \u2018workplaces of choice.\u2019<\/h3>\n\n\n\n
2) The Executive Director is a visible, vocal, and effective public champion for the organization.<\/h3>\n\n\n\n
3) Financial stability.<\/h3>\n\n\n\n
4) Fundraising streams are balanced, diverse, and sophisticated.<\/h3>\n\n\n\n
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5) Board is diverse and reflective of the community it serves.<\/h3>\n\n\n\n
6) Board is clear about its responsibilities, takes them seriously, and executes well.<\/h3>\n\n\n\n
7) Programs are mission-centric.<\/h3>\n\n\n\n
8) Programs are evaluated to determine impact.<\/h3>\n\n\n\n
9) The best nonprofit organizations have a clear, strong, and compelling external presence.<\/h3>\n\n\n\n
10) An intelligent and integrated strategy for growing and engaging stakeholders in the work.<\/h3>\n\n\n\n
11) Regular performance reviews and assessments for both staff and board.<\/h3>\n\n\n\n
12) Board and staff have a strong leadership pipeline and solid bench strength.<\/h3>\n\n\n\n
13) A thoughtful long-term strategy developed jointly by board and staff.<\/h3>\n\n\n\n
THE SINGLE BEST SIGN OF A HEALTHY NONPROFIT <\/strong><\/h2>\n\n\n\n
14) The Board Chair and Executive Director have an amazing partnership.<\/h3>\n\n\n\n