Stay nimble, be willing to take risks, and know your “superpowers.”
Those are among the key pieces of advice offered by three nonprofit experts in a recent online briefing titled, “The Road to Recovery: Financial Health for Nonprofits.”
The session featured advice on how nonprofits can stay relevant and grow as Covid continues, even as needs and priorities change and fundraising strategies are upended.
Click on the image below to watch the discussion, hosted by Chronicle editor Stacy Palmer and featuring:
- Preeta Nayak, partner and head of leadership and community services at the Bridgespan Group
- Shawn Wilson, CEO, Boys & Girls Clubs of Southeastern Michigan
- Stan Little, chief experience officer at United Way Worldwide
Staying True to Your Superpowers
First, about those superpowers — they’re the main things your organization does best to meet the needs of your community. Your nonprofit may be the only organization that does those things well, so staying true to them is doubly important. However, staying focused is not always easy in era when needs are changing so rapidly.
The process of focusing on your most important tasks should start in discussions with your team, says Nayak.
The day-to-day pressure of running programs in an unsteady environment can seem overwhelming. “Put some stakes in the ground,” advises Nayak. Anchor yourself and your organization in manageable goals and scenarios.
Covid may have forced your organization out if its sweet spot to respond to the crisis, but it’s time to start planning for a return to core competencies, if it hasn’t happened already.
For example, Wilson’s organization jumped into food distribution to help meet immediate needs.
However, as other local food groups ramped up their operations, his nonprofit stepped back and focused on other needs in the community. It was a tough decision, he says, because there was still plenty of donor cash available, but addressing hunger wasn’t among the superpowers of the Boys & Girls Clubs of Southeastern Michigan.
Welcome Risk
But sometimes nonprofits must take risks and venture into new lines of work, especially if other groups aren’t filling the void, the panelists said. “Feel free to take risk and not be scared that it’s not going to turn out the way that you think ... because people are going to give you a lot of grace,” Wilson said.
Stan Little, chief experience officer at United Way Worldwide, advises nonprofit leaders to be aware of where they stand in the cycle of growth. Ask yourself questions such as these to determine where you fall:
- Are you growing geographically, or are you growing in terms of the range of programs offered?
- Is your nonprofit growing at a manageable pace, or are you stretching your organization’s ability to effectively deliver what it promises?
Making those assessments regularly will ensure that your organization expands at a pace it can handle. Strike a balance between managing risk and seeking new opportunities, Little says. New donors who have come on board during the pandemic can present an opportunity to position your nonprofit for growth, he adds. “You can’t stay in hunker-down mode forever.”
The key, these expert said, is to be thoughtful and intentional about your mission.
Stay Nimble
Recognize that your organization is still navigating a crisis. The pandemic is far from over so your community’s needs and the ability of your nonprofit to meet them will continue to evolve, the panelists advised.
Be candid with your community and your donors about your successes and also about where need continues to outstrip demand.
For example, Wilson says his organization recently merged with a small business incubator so the nonprofit could give local youths the chance to see entrepreneurs who look like them in action and get real-world experience by helping those entrepreneurs launch new products.
Wilson had to explain to donors that the move wasn’t mission drift; rather, it was essential for the organization to lift more kids out of poverty as they move toward adulthood. His message was, “It takes an ecosystem to drive economic mobility.” So while the organization decided to step back from providing food, it’s doubling down on economic mobility, he says.
More Insights
- Be on the lookout for the impact of the “great resignation.” If it hasn’t hit your organization yet, it still might. Have “stay” conversations with your employees — check-ins to get a sense of how they are spending their time and how they are doing — before you end up having exit interviews, says Nayak.
- Bring the board along whenever you plan to adjust course. Wilson says he’s gotten out ahead of his board in the past, creating a situation he had to clean up later.
- When talking with donors, tell stories about what you’re accomplishing, and back up those stories with data whenever possible.
- Consider keeping what might work, even post-Covid. For example, some of your most successful virtual offerings could find a home permanently in your organization.
