On Becoming a Leader is an advice column in which Allison Fine, an author, consultant, and expert on nonprofit management, answers your questions about nonprofit careers and leadership. Have a question? Ask Allison .
Q. “How can you help a struggling nonprofit back on its feet?” Solomon Van Kanei, Sierra Leone
A. This is a big question, Solomon, so let me see if I can break it down into some bite-size pieces so it doesn’t feel so overwhelming. But before I jump in, I want to congratulate you on your willingness to openly examine this issue. Leaders too often presume that their only course of action is to continue to struggle forward. This isn’t true. Nonprofits can choose to close, for example. However, they rarely do — just ask the Internal Revenue Service, which has a huge database of organizations that exist in limbo with no discernable financial activity. More often, organizations can just mosey along being irrelevant, invisible, and ineffective. Your question leads me to believe that just struggling along isn’t good enough for you. Bravo!
Now, let’s begin.
There are two fundamental parts to your question:
1. Why are we struggling?
2. What can we do about it?
It’s usually best to start things at the beginning (unless we’re talking about dinner and then I always want to start with dessert!).
Why are we struggling? I’m going to make an assumption, Solomon, that your “struggle” has something to do with a lack of revenue. But remember that a lack of revenue is the result of a problem, not the cause of it. In my experience, the reasons that both new and well-established nonprofits struggle with fundraising include:
- The original mission no longer has the same urgency. Perhaps the organization was created due to a particular event, like a protest or a child with an illness, and that original urgency is gone.
- The problem no longer exists. Maybe an illness was cured or the business district has been redeveloped.
- Poor leadership. Board members or leaders can demoralize staff or curtail revenue.
- An outdated business model. This often occurs when organizations that were started last century face an aging donor base without identifying new donors.
Note that the first two reasons focus on external issues and whether the organization should continue, and the second two reasons focus on internal issues that need to be improved for the organization to thrive.
Identifying the right problem is the first step in figuring out what to do. But how you figure it out is also important. A few years ago, the trustees of Sweet Briar College discussed the future of the institution for a year and a half in secret without asking students and alumnae for help. They then suddenly announced the closing of the college. Donors and alumnae were outraged, swung into fundraising motion, and saved it.
Solomon, I hope that you and your colleagues can summon the courage to include a broad array of supporters in conversations about whether or how your organization can continue to exist.
Assuming there is a compelling reason to keep going, the problem is likely one or both of the second two factors: weak management or an outdated business model. Now what do you do?
There are lots of things to do to get stronger, healthier, and smarter internally. Here are three steps to get started:
1. Test your assumptions. Every organization bases its work on a few fundamental assumptions about how it connects to what it hopes to achieve. For instance, advocating for a particular type of legislation will reduce the problem the organization aims to solve. Ask yourselves: Are these assumptions still true? It may be difficult to fully know if they are, but gather any data that you have and collect any that isn’t too difficult to get (for example, interviewing 10 key stakeholders), and do the best you can to determine whether your assumptions are still true.
2. Increase your social capital. Do you have a tribe of people who still believe in your organization and its mission? This is very important because you will need to ask them to express their support publicly. You also need to know if the organization can count on them to increase their gifts in the next few years. In addition, you probably need to find new board members who have the enthusiasm and energy to help revive your organization. This means that they are willing to spend the time planning with you and to ask others to help and make connections for the organization.
3. Create a good plan. It doesn’t have to take a year or be 50 pages long, but you need a road map of how you’re going to get from where you are to a more vibrant place. The plan has to have a clear purpose and concrete steps for moving forward.
A good article that was actually written for for-profits also applies to nonprofits: It provides an overview of how to move your organization forward, and it describes why organizations sometimes need to challenge assumptions and build a new, well-crafted plan.
Solomon, sadly, there is no easy or fast way out of your situation. Just as it took a while to get stuck, it’s going to take a while to get unstuck. But every little step forward, every new supporter you talk to, and every assumption you test is a step in the right direction.