Real learning gets to the heart of what it means to be human. Through learning we become able to do something we never were able to do.
― Peter M. Senge
― Peter M. Senge
Does your organization need more resources? Do you wish you had more loyal and generous supporters? The process of looking for potential donors can be exhausting and even costly. Take a page from companies like Amazon and Southwest Airlines. Identify your core donor in four steps - and get the fuel to achieve your mission while building long-term sustainability.
Does your not-for-profit have less than one month of operating reserves? Have you lived through those months when it felt like an elephant was sitting on your chest as you worried about how you’d cover the monthly bills - or worse, payroll! I’ve been there and it's awful.
But you don’t have to be one of the fifty percent of all US not-for-profits in the same boat. That is if you’re willing to talk about building wealth for your organization. Ok, a conversation about wealth and not-for-profits feels a little crazy, I admit. But like most important things, I’m pretty sure we need to talk about it a whole lot more. How do you make your nonprofit financially healthy? No, I don’t have a good punch line, but I do have some clues to offer. When I am asked to assess organizational health, the very first thing I look at the Unrestricted Net Assets or URNA.
So, what are Unrestricted Net Assets? Simply put URNA represent the money that can be used completely at the discretion of the nonprofit. URNA are the resources that the organization “owns.” Your URNA are so critical to your organization’s health because not having them, not having enough causes all sorts of headaches and heartaches that make running a nonprofit seem like a bad dream. When I ran a nonprofit, with the first hint of fall, the worry would return. Was our end-of-year appeal ready and good? Were we on target for our fundraising events? Do I have the right fundraising staff in place? Sure, the board would be helpful, but their success was very dependent on the staff's ability to help follow up, which generally meant that they might raise less than we were hoping.
If I could go back in time, there are a number of things that I would tell myself do differently. I would first assure my former self that fundraising could be much less stressful if the board and staff were willing to spend more time on a strategic execution planing in order to get everyone aligned. I’d watch the first beads of sweat appear on my younger forehead. Get everyone aligned? But we’re all so busy! Do you have a will? Does the thought of outlining what you want done with your stuff after your earthly departure fill you with dread? Well it shouldn't. And neither should creating a succession plan for your organization! It's hard to acknowledge that one day we won't be here - either physically or in our current job. But making a plan can help make sure a CEO transition won't mean the end of your mission-driven organization.
You used to know how to raise money for your organization. You had all the right connections with all the right people and you knew how to gain traction, but things have changed. You’re working hard, perhaps harder than ever, yet finding it tougher to make headway. Change seems to be the theme du jour, and as the leader in your organization, you need to be able to anticipate change and to adapt.
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