How to avoid groupthink in your non-profit boardroom

Kool-Aid, Groupthink and Generative Governance

By Dani Robbins
Re-published with permission from nonprofit evolution blog
groupthink2There have been multiple things that have happened in the past week that have made me re-consider the phrase “Don’t drink the Kool-Aid.
The first was a Board that was exploring introducing a new funding model. The Board, who had been on the inside of a discussion of culture shift for the past year and were familiar with the materials and the arguments, briefly considered not building the organizational culture to introduce the considered change because they “didn’t think it was a big deal.” And it wasn’t a big deal to them because they’d already changed the culture among their group. They’d been thinking about it and reading about it and interviewing other groups that had already implemented the change and there was consensus among the group that it was the right direction for their organization.
Yet… even when there is agreement on the board, there is still the need to create buy-in among others. Without buy-in the potential for failure is high unless all constituents understand the need for change and the foundation is created to implement that change.
The second thing is, in fact, an illustration of just that. The second thing was a local commission’s decision to put forth a levy in the midst of a scandal. They weren’t wrong. They had done their homework, and looked at the issues and put forth a solid plan to introduce change. It failed, primarily and among other things because even though they had a plan to introduce the change and the leaders of the city were behind them, they didn’t have the informal community leaders on board and those leaders didn’t sell it to their constituents.
My intent is not to criticize any of these leaders. Each was in a difficult position and after considering all the options, made the decision that they felt best served their organization, their community and their constituents. That is the very definition of good leadership. Another component of good leadership is to learn from our mistakes and missteps. To that point, we need to ask:

What could have helped? What might have made the difference?

I believe the answer is generative governance. Let’s review how some of the techniques offered in my favorite board book “Governance as Leadership” could have made the difference.
groupthink3Silent Starts — Set aside 2 minutes for each trustee to anonymously write on an index card the most important question relevant to the issue at hand.”
What if a board or commission member had written: “How can we engage community and committee leaders as well as those in informal leadership positions who could, in turn, engage their constituents?”
One Minute Memos — At the end of discussions give each member 2-3 minutes to write down any thoughts or questions that were not expressed.”
This could have been a great opportunity to consider the worst case scenarios and create a plan ensure against such eventualities.
Counter Points — Randomly designate 2-3 trustees to make the powerful counter arguments to initial recommendations.”
This could have been used to dispel all the arguments against the change. From that discussion, marketing materials, talking points and an engagement plan could have been created.
Role Play — Ask a subset of the Board to assume the perspective of different constituent groups likely to be affected by the decision at hand.”
A board member could have taken on the role of a member of the community who would be the most negatively impacted by the change and a plan could be created to embrace those constituents and mitigate their impact.
Breakouts — Small groups counter group think and ask: Do we have the right questions?  What values are at stake? How else might this issue be framed?”
This is my favorite of all the techniques offered. It is the best way I’ve seen to get out of your head, out of the room and really consider all the ramifications of the discussion on the table from all the possible perspectives.
Let me be clear. I wasn’t in the room for any of these discussions; these are my assessments from afar. My intent is not to be a Monday morning quarterback. My intent is always to see if there is a lesson to be learned and how a different outcome might have been achieved. Could generative conversations have made the difference?
When it comes to group think and drinking the Kool-Aid, I try to never forget a church sign I once drove past; it said “Don’t believe everything you think.”
What’s your experience with group think and drinking the Kool-Aid? Do you agree that generative governance could be the answer?  How have you mitigated the effects? As always, I welcome your insight, feedback and experience. Please share your ideas or suggestions for blog topics and consider hitting the follow button to enter your email.
A rising tide raises all boats.
dani sig

The executive director's first 90 days

bright eyed bushy tailedBright eyed and bushy-tailed. I love those two descriptions because they perfect describe most newly minted non-profit executive directors. They are eager, optimistic, and ready to change the world when they walk through your agency’s door on their first day of work.
It is at this point that I’ve witnessed many exhausted board volunteers collapse because the first day for the new executive director typically represents the end of a long executive search process. Of course, the reality is that the first 90 days are perhaps some of the most crucial days for the new executive director and the organization.
As I reflect back upon my experience 14-years ago, I now recognize how lucky I was to have been hired by an agency that belonged to a larger national organization (e.g. Boys & Girls Clubs of America). The board simply pointed me in the direction of the regional office, and they signed me up for “New Executive Orientation”. There were pre-training worksheets that walked me through an assortment of activities geared toward hitting the ground running.
But what if your agency doesn’t belong to a national organization? What should your new executive director’s first 90 days look like?
Without getting into a very tactical answer to this question, here are a few big picture activities both the board and the new executive director should look at engaging in:

  • The board needs to develop a written (and measurable) 90 day performance management plan for the new CEO
  • At the end of the first 90 days, the board needs to evaluate their new employee against the written performance management plan and issue another written management plan focused on the remainder of the year
  • The new exec should schedule one-on-one meetings with every board member to talk about the following: 1) where do they currently see the agency and 2) in what direction do they think the agency should be moving
  • The new CEO should be meeting in-person with the agency’s top 25 or top 50 donors to get their perspective on where the agency is and where it should be going
  • The new executive director should meet in-person with each of the agency’s key stakeholders and collaborative partners
  • Back home at the office there is much to do including: 1) reviewing all grants (esp grant deliverables), contracts, audits, recent financial statements, and written organization plan and policy documents including bylaws and 2) getting to know operational staff and learning programs
  • The board needs to plan a party and introduce their new executive director to the community

exhaustedExhausted yet?
Well, these six bullet points are only meant to be a big picture view.
If you are looking for something more tactical and detailed, I ran across a great document online from NAMI titled “The First 90 Days: The New NAMI Executive Director’s Guide“. I think this is a great resource to help new executive directors hit the ground running. It is definitely worth the click.  😉
What has your agency done to help its new executive director hit the ground running? Please use the comment box below and share your thoughts and opinions. Why? Because we can all learn from each other.
Here’s to your health!
Erik Anderson
Founder & President, The Healthy Non-Profit LLC
www.thehealthynonprofit.com
erik@thehealthynonprofit.com
http://twitter.com/#!/eanderson847
http://www.facebook.com/eanderson847
http://www.linkedin.com/in/erikanderson847

Two of the most common non-profit board questions ever asked

How Many Board Members Meeting? How Often?

By Dani Robbins
Re-published with permission from nonprofit evolution blog
boardsize4The two questions I get asked on a regular basis are “What is the right number of board members?” and “How often should our board meet?” The answer to both is the same: whatever it takes. You should have the number of board members you need who meet as often as necessary to get the job done.
While, it’s true, I appreciate that it’s not that helpful.  When I serve as an Exec, my preference is boards of 24 members who meet monthly. I also like a range of board members to be included in the by-laws; 18-30 is my favorite.  For me, it allows the access I need and the number I need to move the agency forward, but doesn’t hold us back if we have an excellent prospect and a full slate. I have primarily run smallish to mid-size social service agencies with budgets from $250k-1.4M, with 3-5 committees, some which had 1-3 sub-committees that allowed non board members to participate. I can see why it’s a lot for board members and also execs…yet, the goal is to meet as often as you need to get the job done.  All of our jobs as leaders is to do what’s best for our agencies.
boardsize3There has been some movement in recent years toward boards meeting less often with committee meetings in between. Some boards meet every other month. Some boards (mine obviously) meet monthly and their committees do as well. Some boards meet quarterly.
I’m not a big fan of quarterly board meetings. They usually require a powerful executive committee to meet in between, which I believe alienates other board members. Powerful executive committees, who have the authority to act in lieu of the full board, take the majority vote and make it minority rule. Let me demonstrate: 24 board members with an executive committee of four officers and five committee chairs need a majority of that group to make decisions. This means that five people, which is 20% of your board, are making the decisions.  If you don’t have committee chairs on the executive committee (and many agencies don’t), you are down to 3 people deciding for the board, just over 10%.
Meeting quarterly also serves to ensure your board members aren’t plugged in enough. They miss one meeting; they miss six months of information. Finally, I am not convinced quarterly meetings are often enough to maintain fiduciary responsibility. Three months later may be too late to get your arms around a budget issue or a program problem.
boardsize2Still, as I stated at the beginning, only you can decide what the best model is for your organization. I offer some questions for you as you consider the right number of meetings:

  • Do you have enough time to complete the work of the board?
  • Are your meetings so rushed that generative and strategic discussions don’t happen, even when included on the agenda?
  • Do your board members feel confident they know what is happening?
  • Is the meeting schedule your board follows forcing, either by choice or need, your executive to do the work of the board?
  • Is your executive missing opportunities because she cannot get board approval?
  • Is your current schedule an effective model for your organization or merely convenient for its members?

The question of Board size is also all over the map. Some agencies have very large boards, which in and of itself becomes a problem to manage; 50 board members is a lot to track, communicate with and engage. Alternatively, some boards are very small and govern enormous agencies with multiple programs operating in a variety of locations. This can lend itself to the executive overstepping her role.
boardsize1Again, only you can decide what the best model is for your organization.  I offer some questions as you consider the right number of members:

  • Is the number of members forcing, either by choice or need, your executive to do the work of the board?
  • Do you have committees of one and, if so, are they effective?
  • Are there committees you cannot introduce or board work you cannot accomplish because of lack of members?
  • Do your members feel so overwhelmed that it is driving disengagement?
  • Do you have a formal board development plan to attract, train, evaluate, recognize and renew board members?
  • Is your current number of members an effective model for your organization?

How many and how often may very well lead to all the other pieces of board development and board engagement falling into place. They’re great questions and great place to start.
How have you answered the questions posed in this post?  How many board members do you have and how often do they meet? As always, I welcome your insight, feedback and experience. Please share your ideas or suggestions. A rising tide raises all boats.
dani sig

Who is showing up to your non-profit board meetings?

Decision are Made by those who Show Up

By Dani Robbins
Re-published with permission from nonprofit evolution blog
showing upMy community had a paltry 10% of eligible voters turn out to vote on Election Day. My neighbor said that any vote that didn’t have at least 40% of the eligible voters voting should be thrown out. But, of course and for good reason, it doesn’t work like that. Elections – and most other things – are decided by those who show up.
Now you may be thinking: “That’s nice Dani, but this is a nonprofit blog. What’s this got to do with non profits?” Everything; it works the same way for agencies. Many states ban proxy voting and require email votes to be 100% unanimous. Assuming you have a quorum, the decisions made by the board will, primarily, all be made by those in the room.
That means it not only matters who you elect to serve as Board members, it matters which of them chose to show up to meetings. It’s hard enough to figure out how a large group of smart people are going to vote; it’s even harder if you don’t know who will be in the room. As such, you need to know who’s planning to attend every meeting.
Good Execs do their homework before the meeting and usually know how people are going to vote before the meeting begins……which doesn’t ensure they will do so.” (Board Meetings Gone Wrong) Even when you do your homework, and think you know how they will vote, a parking lot conversation can change someone’s mind.
The foundation for ensuring you have the right people in the room starts long before a board meeting is scheduled. It starts and also ends with the Board Development Committee.
When you are recruiting new prospects, unless you are willing to change the meeting time, those who tell you they cannot come to the meetings should not be considered as board members. Most agencies already carry one or two board members who consistently miss meetings; don’t add to that count.
The agenda that is set should also reflect, to some degree, the behavior of those expected to be in the room. This is most applicable to consent agendas. When you consider if a consent agenda is right for your board, consider the board members who most often attend. Do they typically read materials in advance or in the room? If they read them in advance, consent agendas can allow more time for robust generative discussions. If they read them in the room, they may not have time to read all the materials and may be voting on things about which they are not entirely clear. If that is the case, consent agendas can create issues of liability for your agency.
If you don’t have enough board members show up, the ones that do will not have their votes counted if you do not have a quorum. Quorum issues are the best indicators of disengaged board. As mentioned in Engaging the BoardIf you have consistent issues with having enough Board members in the room to make decisions, I recommend you take a look at how your board was built and how it is being developed.
Finally, it behooves you to consider removing disruptive or disengaged Board members. For instructions on how, click here. It is a difficult option to consider, but each of our roles in nonprofit leadership requires us to do what’s best for the organization. If the work of the board becomes focused on defending or covering for an inappropriate board member, other more relevant work is not being accomplished.
We can’t always control who shows up, but we can control who is invited to serve.  If we build the board intentionally and thoughtfully, it is far more likely that those who show up have the capacity, the wisdom and the experience to appropriately govern our organizations, and our organizations have the resources, impact and reach to change our world.
What’s been your experience? As always, I welcome your insight, feedback and experience. Please share your ideas or suggestions for blog topics and consider hitting the follow button to enter your email. A rising tide raises all boats.
dani sig

What does your agency's committee system look like?

Board Work via Board Committees

By Dani Robbins
Re-published with permission from nonprofit evolution blog
committee1Appointed or elected community leaders govern an organization. As outlined in my favorite Board book Governance as Leadership  and summarized in The Role of the Board, the Fiduciary Mode is where governance begins for all boards and ends for too many.  I encourage you to also explore the Strategic and Generative Modes of Governance, which will greatly improve your board’s engagement, and also their enjoyment.
At a minimum, governance includes:

  • Setting the Mission, Vision and Strategic Plan
  • Hiring, Supporting and Evaluating the Executive Director
  • Acting as the Fiduciary Responsible Agent
  • Raising Money and
  • Setting Policy

Committees are how the work of the board gets done. The committees, their structure and definitions will be outlined in your organization’s by-laws, which in Ohio are called Code of Regulations.
The by-laws will also dictate if committee chairs and committee members must be board members. I recommend that the chairs be board members but that committee membership not be limited to only board members. Committee work is a great way to build the bench of a board, see how someone works and it they are a good fit for a future board position. Most organizations have a requirement that Board members serve on at least one committee.
Committee members are responsible to the full Board for the research, work, framing of the issues and recommendation in their assigned area.  There are a minimum of three committees I recommend as “must haves,” which are Board Development, Resource Development, and Finance Committee.
There is often also some version of an Executive Committee and there may be other committees as well. Let’s review each.
Executive Committee
The Executive Committee is usually the four Officers (President, Vice-President, Treasurer and Secretary of the Board) or the Officers plus the Committee Chairs.  Less often, Executive Committees have members at large.
Executive Committees can sometimes make decisions in lieu of the full board. This will be clearly stated in the by-laws. I generally recommend against this. In fact, other that in emergency situations when I think they’re critical, I generally recommend against the Executive Committee meeting on a regular basis.
Powerful Executive Committees tend to disengage the remaining board members. It allows the few to operate without the whole. Anything that contributes to board member disengagement works against the agency’s success and should be avoided.
Finance Committee
committee2The Finance Committee, chaired by Treasurer, works with the appropriate staff in examining the financial reports, understanding and monitoring the financial condition of the organization and preparing the annual budget. The Treasurer presents the monthly financial statements to the Board at each board meeting. This committee also selects an audit firm each year and reviews the audit plan, audit and 990, which should be signed by the Treasurer prior to submission.
As it is sometimes considered a conflict that the committee that monitors the books also manages the auditor selection, it is considered a best practice to have a separate audit committee.  If this is not feasible for your organization and as auditing firms are independent of the agency, this conflict can be mitigated by bidding out your audit and changing your auditor every few years.
Resource Development Committee
The Resource Development Committee works with the CEO, the senior development staff, if there is one, and the Board of Directors in developing strategies to identify and secure needed resources and funding to support the operations of the organization. The Committee is responsible for creating and executing a plan to raise money. The full Board is responsible for introducing their network to the organization, attending events, financially supporting the organization and encouraging other to do as well.
Board Development Committee
The Board Development Committee is concerned with identification of new Board members and the development of the future leadership of the Board. The Board Development Committee helps develop an effective Board through its two main functions:
Board Building:  A diverse board of directors (thought, skill, race, faith, ability, orientation, age, and gender) that is passionate about the mission of the organization is created through a Board Building process.
Board Education:  Board members will fully understand and effectively fulfill their commitments to the Board of Directors when a comprehensive orientation, continuing education, annual evaluation and recognition process is in place.
With the exception of a functioning Executive Committee, the Board Development Committee is usually the most powerful committee of the Board.  It is often the only committee that you can’t just volunteer for but must be invited to join.
Other Committees
Some Boards also have program committee, human resource committees and a variety of other committees.
The Program Committee is responsible for the program side of the Board’s fiduciary responsibility. They focus on how the programs tie to the organization’s mission, what they impact, how that impact is measured and the number of people who are served in those programs.
The Human Resource Committee is responsible for the development and recommendation of the personnel and other relevant policies, the creation of a salary adjustment plan and the framework for the CEOs evaluation.
A Word of Caution
committee3I recommend caution when creating committees to do the work of staff. It gets very confusing as to who is responsible for what and responsible to whom. If Board members are acting in staff roles, the Executive Director retains the authority for decision-making. If the Board members are operating within the scope of their roles, the Board has the authority for decision-making. Conversations had in advance can help you avoid role confusion and the overstepping of boundaries.
Do you agree with my three “must have” committees?  What else do you recommend? What is your experience with committee work? As always, I welcome your insight, feedback and experience.
dani sig

What is your agency's case for doing some planning?

planningAs someone with two degrees in planning, I catch myself all the time with my non-profit clients explaining that the solution to their problems is that they need a plan. It might be a strategic plan, resource development plan, or board development plan . . . but oftentimes I am amazed at how many times failing non-profit agencies just haven’t invested in creating plans.  I mean, come on folks! Who hasn’t heard the old expression, “If you fail to plan, then you plan to fail“?
In recent years, my point of view around planning has evolved slightly. I now believe there is a time and place for planning. When there is too much chaos in the external environment or too much internal crisis or turnover, planning is at best a wasteful exercise and at worst can contribute to the problems at hand.
Of course, I still bristle when I hear board members say something like:

“I don’t want my agency engaged in planning. In the end, all that happens is the plan gets put on the shelf to collect dust. We need less planning and more doing!”

When I hear statements like this, it is usually indicative of:

  • an agency without a culture of planning
  • staff without an understanding of how to engage a board
  • board volunteers without an understanding of implementation tools
  • a board who doesn’t manage or evaluate its staff
  • an agency that is either standing still (best case scenario) or in crisis (worst cast scenario)

When trying to make the case for engaging in some sort of planning activity to a board of directors, I typically talk about “roles and responsibilities” of the board of directors. As you might imagine, this approach is usually met with yawns and eye rolling.
However, I recently found a blog post by Nell Edgington titled “5 Ways Great Strategy Can Transform a Nonprofit” while clicking around on a LinkedIn group dedicated to strategic planning for non-profit organizations. It was in that post I think Nell makes a much better case for planning that might be better received by resistant boards.
Here is what she says:

“People and organizations that make large gifts to a nonprofit are in effect investing in the future of that organization. And if you can’t articulate your future plans in a thoughtful, compelling way, funders won’t make that larger investment.”

Duh!
So, what has been your sales pitch to your board when trying to convince them to roll up their sleeves and engage in some planning. Please share your thoughts and experiences in the comment box below. We can all learn from each other.
Here’s to your health!
Erik Anderson
Founder & President, The Healthy Non-Profit LLC
www.thehealthynonprofit.com
erik@thehealthynonprofit.com
http://twitter.com/#!/eanderson847
http://www.facebook.com/eanderson847
http://www.linkedin.com/in/erikanderson847

The most important non-profit board responsibility

questionsOver the last few months, I’ve found myself doing a lot of boardroom trainings on the subject of “Board Roles & Responsibilities“. When facilitating this training, there are two different slides talking about the board’s collective responsibilities and the other illustrates individual board members’ responsibilities. Listed on both slides at the top of the list is the responsibility of “asking questions“.
At the end of tonight’s training, I went out for a nice steak dinner, but one thing stuck in my head and nagged me all night.

Is the list of roles/responsibilities in a particular order? If so, could it be that ‘asking questions’ is the most important of the responsibilities?

So, I tried to think of other responsibilities that might be more important:

  • Fundraising & securing resources
  • Connecting others to the agency’s mission
  • Advocating and talking about the agency throughout the community
  • Making sure laws and regulations are followed
  • Planning

While these aren’t all of the responsibilities of a non-profit board volunteer, it certainly is a good number of them. In the final analysis, all of these roles/responsibilities are important, but I honestly don’t see any of them as important as asking questions.
questions2Of course, we aren’t talking about asking questions that lend themselves to micro-management of staff. Here are just a few important questions that good boards ask:

  • Where is this agency going? What will it look like in 5-years? 10-years? 15-years? 20-years?
  • Is our organizational mission still relevant? What should it be?
  • What are our shared values?
  • What are our goals?
  • What are the community’s needs and gaps that the agency strives to address?
  • Are we using donor dollars in the manner we promised?
  • Is the agency achieving the program outcomes it promised to donors?
  • Is the organization structured in such a way to achieve what it needs to achieve?
  • Why are we doing what we’re doing? Is there a better way?
  • Do I have a conflict of interest? What should I do to mitigate my conflict?
  • Is this ethical? Is it legal? Even if it is, will supporters view it as otherwise?

rubber stamp2I tried to picture what a non-profit board might look like if it didn’t ask questions, and these words all came to mind:

  • rubber stamp
  • disengaged
  • Enron
  • WorldCom
  • Tyco

Over the years of writing this blog, I’ve tackled this subject from a number of different angles. Here are just a few posts I’ve written on the subject of asking questions:

I dunno! What do you think? Are some non-profit board responsibilities weighted more heavily than others? If so, where does “asking questions” rank?
If board members need to collectively and individually get better at asking questions, how do you train for that? Or is it something you recruit for?
Please use the comment box below to share your thoughts and experiences.
Here’s to your health!
Erik Anderson
Founder & President, The Healthy Non-Profit LLC
www.thehealthynonprofit.com
erik@thehealthynonprofit.com
http://twitter.com/#!/eanderson847
http://www.facebook.com/eanderson847
http://www.linkedin.com/in/erikanderson847

Is your board of directors exceptional?

exceptionalOn Tuesday evening I found myself sitting in front of a group of board volunteers as well as prospects who were contemplating joining the board. What started off as a routine training about basic board roles and responsibilities morphed into a discussion about what makes an exceptional board.
According to BoardSource and other non-profit experts, the following principles go into making exceptions boards:

  1. Effective partnership between the board and its executive director
  2. Asking questions and engaging in respectful debates and discussions
  3. Strategic thinking and vision-focused discussions integrated into board meetings
  4. Mission-focused and driven with the agency’s mission infused throughout everything it does including fundraising, decision-making, etc
  5. Transparency in everything the board does with the community understanding all of its decisions
  6. Independent minded with conflicts of interest constantly being identified and mitigated
  7. Measuring the agency’s impact and ensuring that outcomes are achieved
  8. Life-long learners sit around the boardroom table and relish evaluation opportunities and want to learn how to do things better
  9. Focused on how to engage all board volunteers in securing more resources and linking the organization’s strategic plan to its budget
  10. Intentional in all of its actions including establishing the size of the board, committee structure, and other various governance questions
  11. Integrity rooted in an ethics policy, oversight and audit
  12. Planned turnover in the boardroom supported by thoughtful recruitment efforts

Do you think these things define an exceptional board? Is anything missing? What are the more difficult things to achieve on this laundry list?
Please use the comment box below to share your thoughts and experiences.
Here’s to your health!
Erik Anderson
Founder & President, The Healthy Non-Profit LLC
www.thehealthynonprofit.com
erik@thehealthynonprofit.com
http://twitter.com/#!/eanderson847
http://www.facebook.com/eanderson847
http://www.linkedin.com/in/erikanderson847

The biggest cardinal sin an executive director can commit

sinWorking with organizations in New Mexico and West Texas means lots of windshield time, and last week I found myself contemplating the question: “What is the biggest cardinal sin a non-profit executive director can commit?” In the final analysis, my conclusion surprised me, which means it was destined to end up here on the DonorDreams blog for you to chew on and contemplate.
In the time you’ve read the first paragraph, your mind already probably started spinning and there are so many good possibilities to choose from, right? Here are just a few examples:

  • embezzlement
  • letting the agency’s fundraising program die on the vine
  • not fostering an organization culture of planning
  • not being transparent
  • treating donors like an ATM
  • hiring bad staff
  • misuse of funds

I could go on and on. You probably already have many more examples to share (and I encourage you to do so in the comment box below).
As for my  number one answer that I finally settled on?

Not understanding, building and supporting a good board development process.

There is a lot that goes into this sweeping generalization. Here are just a few examples:

  • Allowing board prospects to be targeted without any consideration of expectations and necessary skill sets
  • Recruiting prospects without helping them see what they are saying ‘YES’ to doing
  • Failing to develop an annual evaluation and recognition process for board volunteers
  • Failing to provide orientation and ongoing board training

I could provide more examples, but I think you get the idea.
The reason this turned out to be my number one answer is because this cardinal sin provides the fertile ground for all of the other sins I listed at the start of this post.
For example, it is the existence of a weak and unsupported board that creates the conditions for embezzlement or misuse of funds.
Please use the comment box below to share your idea of the biggest cardinal sin and why. Also offer a solution while you’re at it.  😉
Here’s to your health!
Erik Anderson
Founder & President, The Healthy Non-Profit LLC
www.thehealthynonprofit.com
erik@thehealthynonprofit.com
http://twitter.com/#!/eanderson847
http://www.facebook.com/eanderson847
http://www.linkedin.com/in/erikanderson847

2014 predictions for the non-profit sector

predictions3It happened again yesterday. A non-profit friend of mine called and we talked for an hour about their revenue model and fundraising issues. Questions included:

  • We need to start doing more with private sector fundraising. Everyone at our agency agrees on this point. It is in the new strategic plan. But after lots of talking no one wants to do anything. What should we do? How do we move forward?
  • We are very dependent on government funding. How should we start diversifying our revenue streams?
  • Our revenue strategies that worked well prior to 2008 no longer work very well. We want to course correct, but the people sitting around our boardroom table were recruited with an old revenue model in mind. Can we ask these people to help us make the necessary changes? Or do we need to change the people sitting around the table? How quickly can all of this be done?

Ever since the economy changed in 2008, non-profits have been wrestling with these kind of questions. What economists and politicians are calling “The New Normal” has non-profit leaders scratching their heads and wondering what to do about it.
I’ve seen some non-profits pivot nicely, and I’ve seen many more struggle. This trend will continue into 2014!
Based on this prediction, I think the following trends are also likely to follow:

  1. Non-profit boards and staff will continue re-examining and tweaking their revenue model. (Click here for more info on different types of non-profit revenue models)
  2. Non-profit boards will continue to struggle with who should be sitting around their boardroom tables as they attempt to change their revenue models.
  3. Non-profit staff will continue to struggle with developing and using volunteer engagement strategies and tools in an effort to move their agency FROM a pre-2008 revenue model TO a new 2014-and-beyond revamped fundraising plan.
  4. There will be renewed interested by non-profit boards and staff to engage the services of fundraising professionals who can provide technical assistance around these questions.
  5. The word “bankruptcy” will be used more and more by donors, stakeholders and the news media in 2014 to talk about non-profit organizations and municipalities (e.g. Detroit, etc) who weren’t successful in tweaking their revenue models.

Is your organization currently engaged in asking questions like the ones with which I started this post? Are there additional questions you’re asking in your boardroom? What do you think about these five predictions I’ve made? Am I full of bologna?
Please use the comment box below to share your thoughts and experiences.
Here’s to your health!
Erik Anderson
Founder & President, The Healthy Non-Profit LLC
www.thehealthynonprofit.com
erik@thehealthynonprofit.com
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