For Nonprofits, Success Is Still about Nailing Your Strategy
In 2023, Scalepassion will offer pro bono consulting to one nonprofit organization every sixth months.
Many years ago, I worked with a non-profit organization called Urban Youth Impact in West Palm Beach. UYI worked with underprivileged kids through after school programs with the goal of helping them advance through high school and apply to college.
My specific contribution involved helping UYI launch an entrepreneur program to help teach high school students about business principles with the hope that someday they’d go into business themselves. One of the concepts we launched was a coffee company called Impact Coffee. The young kids came up with the name and created a logo for the company, and I got them going on QuickBooks so they could begin thinking more in terms of numbers, inventory and cash in versus cash out—thank kind of thing.
We actually ordered a batch of organic coffee beans and then marked it up with our branding and sold it. It was a wonderful experience for me and, unless I’m mistaken, for the young people I had the opportunity to mentor.
Looking back on that experience, I’m struck by how the people I knew at UYI remind me of the kinds of people I’ve met over the years in the natural products space. Both groups are more highly motivated by their passion to change something than they are educated in how to run a business that will enable them to effect that change.
One of the things we do at ScalePassion is help change-the-world businesses nail their strategy, and the strategy map we use to do so can easily be modified to help nonprofits nail their strategy.
Let’s have a look.
1. Know thyself: this is probably the easiest part for nonprofit founders because they usually know why they're starting it. But knowing the cause that you’re going after, how many people are affected by it, what has worked and what hasn’t worked is one thing. You also have to understand, in a deep way, what motivates you and what you want to be. Do you want to be local, regional or national? How do you want your nonprofit work to fit in with your life?
2. Know thy donor: A spin on “know thy customer,” this pillar asks you to determine who is your ideal donor and who is your actual donor? I've worked with lots of nonprofits that have donors who are kind of a pain to deal with, and so identifying your core ideal donor—where they live and work, whether they are individuals or organizations, what level of wealth they have and what other causes have they supported, are all key questions to nail down here.
3. Know thy market: Nonprofit leaders may refrain from referring to philanthropy as a marketplace, but the universe of donors does describe a marketplace in the sense that you are competing for funds against other nonprofits or philanthropic efforts. Are there other nonprofits dedicated to the same cause that interests you? Is there room or need for your passion and energy in this cause? Even if there are a great many players in this market, the answer may very well be “yes.”
Map out the marketplace to see where you fit. There may be an organization and even a government entity already working in your area. Maybe they are only providing part of the solution to a problem, leaving an opening for you to work collaboratively to supply a solution to the missing pieces? Remember: as with for-profit investors, nonprofit philanthropists are all about clarity of purpose.
4. Why do we exist: When it comes to why we exist statements, the simpler is always the better. Too many mission and vision statements get convoluted and sacrifice the power of inspiration. Look at the Komen Breast Cancer Foundation’s vision, “A world without breast cancer,” and you have no doubt what you’re supporting.
5. What do we do: Spend a lot of time answering this strategic pillar because it tells your stakeholders–your community–what you do as a nonprofit to complement all the other players who might be in this space. For example, it’s not enough to say you do research and outreach because lots of people do these things. But how many others do research on the positive benefits of learning business skills among teenagers in underprivileged neighborhoods in City Z? True, this is not going to appeal to everyone, but it will appeal powerfully to those who may be in a position to support you.
In general, the newer and smaller your organization, the more focused you must be. You can’t hit the ground running like United Way or Make-A-Wish! If you try to do too much, you risk making it difficult for donors to understand what you actually do.
6. How do we behave: This strategic pillar is all about core values that bind your team to each other, your shared mission and your community. The key here is not to simply list words in a document or post them on the wall, but operationalize them in a sentence that guides behavior. If you value tenacity, for example, your core value might emphasize how tenacity recognizes that your organization commits to staying focused during the inevitable ups and downs you experience.
7. What’s most important right now: If you have a bunch of priorities, then you have no priority and will have a much harder time being successful. This pillar asks you to use the answers to questions 1-6 above to establish your top priority. Is it getting enough support to hire a general manager to run your operations? If so, your priority might be to raise enough funds to be able to hire that GM. Before you can raise money, you’re going to need a vision donors can really latch onto. Do you have one? If not, articulating that vision becomes your top priority.
An effective leader understands the “ABZs” of prioritization. “A” is knowing where you are now. “Z” is knowing where you want to go. And “B” is the right next step to move you toward “Z.” An effective leader knows when to say, “No, not now.”
8. Organizational rhythm: Successful organizations establish a meeting rhythm that consistently brings them back to their strategy and enables them to to take that strategy out into their daily business in committee meetings, volunteer meetings, executive team meetings and donor meetings. The key tools in this pillar are key performance indicators and objectives and key results.
I am very excited to announce that as part of our mission of scaling purpose-driven organizations, scalepassion will do pro bono work for one nonprofit every six months. We are accepting applications through January and will select a nonprofit to work with from February through June of 2023. Each five-month, pro-bono engagement will include a two-day retreat, monthly meetings, and touch bases with the leadership as we go.
We are accepting applications here. I look forward to this exciting opportunity to meet more of you in the nonprofit sector and support you in your important work.
Sincerely,
Rob Craven, scalepassion
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All credit to my ghostwriting partner, Dave Moore, who is instrumental in getting my thoughts out in a coherent manner & into these blogs. Thanks Dave!