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It’s not every day that an abandoned warehouse gets turned into a center for the arts. It’s also not every day that a group of generous, like-minded people dedicate their time to introducing the world of expression, creativity, and art to people of all ages. From dancing lessons, theater tech programs, even aftercare, lives are being changed due to an initiative and mission to promote “practice and preservation of world performance traditions.” This, and so much more, are exactly what happens at Joe’s Movement Emporium. 

At Joe’s, all are welcome in their house of the arts. This is the idea behind their name. Any one, any “average joe” is welcome to learn and grow with the staff who make it all possible.  I recently had the pleasure of speaking with Joe’s Managing Director, Lisa Alfred and I got to hear what makes Joe’s so great. With enthusiasm in her voice, I could tell she was pleased to share with me.

The Inasmuch Foundation has announced the distribution of $2.4 million in grants to 25 organizations serving Oklahoma communities, including $25,000 for the Oklahoma Center for Nonprofits towards their Standards for Excellence, and other programs.

Founded by Edith Kinney Gaylord in 1982, the foundation supports education, health and human services and community enhancement initiatives that enrich the quality of life for Oklahomans.

In June, the Oklahoma Center for Nonprofits accepted a donation from Chesapeake Energy Corporation of a northwest Oklahoma City office strip mall housing dozens of nonprofit agencies. Marnie Taylor, the center’s president and chief executive officer, stated that the donation was one of the most significant gifts in the organization’s history.

The Oklahoma Center for Nonprofits has been a Standards for Excellence Replication Partner since 2006, and offers training, consulting, advocacy, membership, networking and recognition for the nonprofit sector of Oklahoma. You can learn more about their Standards for Excellence program at oklahomacenterfornonprofits.org.

Have you ever wondered just how exactly your non-profit organization is going to achieve additional funding? Have you ever taken a good look at your organization and the hardworking volunteers who make it all possible, and wondered how you’re going to take that next step? You’re not alone and the Combined Federal Campaign is available to help.

What’s the CFC? (Combined Federal Campaign)

The Combined Federal Campaign or CFC’s mission is to “promote and support philanthropy through a program that is employee focused, cost-efficient, and effective in providing all federal employees the opportunity to improve the quality of life for all.” The organization was founded in 1961 with a goal in mind. That goal was to combine all fundraising campaigns as an initiative to have a uniform method to ultimately increase contributions to charitable organizations. Since then, the CFC has raised nearly $8 billion in contributions for over 20,000 non-profit organizations worldwide. This has made the CFC the largest, most inclusive, and successful workplace philanthropic organization worldwide.
The CFC understands how challenging it can be to find funding. So they take ownership in launching over 200 campaigns across the country to raise millions for eligible charities that provide service to their local or national community. Every year, their goal is to launch as many campaigns as possible. The CFC values all non-profits, big or small. They know that the partnerships they create with non-profits are the foundation of their stability and growth.

So how does is all work?

Every year, the Combined Federated Campaign allows charities from all over the country to apply to their campaign. While there are specific criteria your organization must meet, the CFC makes it easy for you to get involved. Upon completion of the appropriate application and follow up acceptance, your organization will be placed on a list consisting of over 18,000 other charities. Federal employees, and postal and military donors who are particularly passionate about a specific organization are given the option to support their charity of choice through a variety of funding possibilities such as credit/debit card, check, cash, or even payroll deduction.

How can the Combined Federated Campaign benefit your organization?

The Combined Federated Campaign can be extremely beneficial to your organization, no matter the size. The CFC gives your organization the opportunity to get the word out to other organizations through events and to increase individual funding. In addition to funding, your organization can further enrich the lives of your community and members while bringing more attention to your cause. Not only will you receive funding, but you’ll have free marketing for your organization. This will give your organization free publicity throughout the entire campaign. Furthermore, because the application/acceptance process is a lengthy, but an easily manageable process, your organization will have the duration of that time to strategize an efficient process to market yourself!

Sounds Great! How Do I Get Involved?

Charities
For starters, you will need to fill out the appropriate application in order to participate; but not to worry, the Combined Federated Campaign makes it simple. You’ll need to figure out what kind of charity organization you are and what category you fall under. This will determine which application you need to fill out. See the table below and find which service best represents your organization, then find it’s corresponding application:

For additional information and applications, click the link to be forwarded to the CFCs page:
CFC Applications
If you are a National/International organization send your application to the following address by Friday, January 15^th, 2017 no later than 5PM (EST)
Office of Combined Federal Campaign
ATTN: Charleese Scott
U.S. Office of Personnel Management
1900 E Street, NW Room 6484
Washington, DC 20415
If you are a Local or Independent organization,
Find your local CFC office for more information regarding submission information. The following is a link where you can find your local office. Campaign Locator

Additional Notes

• You must re-apply each year to participate
• Required disbursements will begin the following year after acceptance
• Funds are not the results of grants
• Your organization is encouraged to set up an Electronic Funds Transfer system (EFT) to simplify the receiving of funds
• If you are a National/International organization, it is not required you have offices in all states/countries serviced
• You do not have to be in existence or have provided services for the entire duration of 2013-2015

Additional Information Regarding Your Application

In order to have the best chance of acceptance, it’s important to follow the CFC’s guidelines. Once you’ve selected the appropriate application to fill out, the CFC requires documents to prove authenticity. You’ll need to include specific information about your auditing and program functions as to prove that you are a tax-exempt non-profit organization. Providing a completed and signed copy of your IRS Form 990 is required.
If you’d prefer to participate in a local Combined Federated Campaign an opposed to national, you must prove that you have an active and substantial program within your state. You’ll also have to include a specific schedule of services and benefits your organization provided as well as an IRS Determination Letter. Following this link will direct you to more information regarding specific forms and standards to follow. Additional Information

One last thing..

Be sure to submit your application by the due date, January 15^th 2017, no later than 5PM (EST). Late submissions will not be accepted and returned to the sender. If you’re on time, by March 2017 the CFC Designation and Donor Acknowledgement Reports will be sent and the by the following month of April, the Disbursement of Funds will begin. Happy funding!

The following post was written by Standards for Excellence Licensed Consultant Elizabeth Galaida and is part of our “Ten Years of Advancing Excellence” blog series, celebrating ten years of the Standards for Excellence Licensed Consultant program. Elizabeth Galaida is a career nonprofit specialist that offers strategic planning assistance and database renovation. Bringing the necessary depth and breadth of skills sets to bear, she specializes in helping small to mid-sized nonprofits grow and thrive. Elizabeth became a Standards for Excellence Licensed Consultant in 2014. 

In a famous passage from Mark Twain’s classic novel Tom Sawyer, Tom convinces a friend that his chore of whitewashing the fence is cause for envy. His friend begs, “Say, Tom, let me whitewash a little.” This friend offers Tom an apple core in exchange for a turn with the paintbrush, but Tom insists that the job is worth the entire shiny red apple. The friend accepts. Tom spends the afternoon offering one friend after another the “privilege” of doing his whitewashing for him, accepting in return a miscellany of objects of value only to a boy, including a kite, twelve marbles, a tin soldier, a key that doesn’t unlock anything, and “a dead rat and a string to swing it with.” 

Though you may not have offered a dead rat for the privilege of working at your nonprofit, you have likely agreed to a lower salary than your peers in for-profit industries earn. You are not alone, however. For years, nonprofits have struggled to compete against for-profits for top talent. 

The culture of philanthropy posits that highly paid employees are antithetical to a nonprofit’s mission. The Huffington Post published an article about the most “insanely overpaid” nonprofit executives, none of whom can hold a candle to the top corporate CEO’s of, for example, a health insurance company or high tech firm. Yet, if nonprofits do not want to suffer the financial cost of high turnover and worker burnout, nonprofits need to examine their compensation and benefits very closely.
Nonprofits can and should make themselves attractive to bright, talented people. Here’s how:

1. Be transparent and fair in setting wages. The Standards for Excellence states,“The board should…set the executive’s compensation; An organization’s human resource policies should address both paid employees and volunteers and should be fair, establish clear expectations…” The organization must publicly report in their IRS Form 990 the process they used to set executive compensation.The Standards also require that, “The organization has a procedure for setting and reviewing compensation for its employees; This procedure includes some comparative element (vertically within the organization, horizontally within the industry, or generally in relation to the economy); The board has reviewed the compensation structure for the organization.”Several reputable organizations conduct sector-wide compensation surveys to make this easier, such as GuideStar, the Association of Fundraising Professionals, Charity Navigator and NonProfit Times, among others
2. While you may not have the budget to match for-profit salaries dollar for dollar, it behooves an organization to compare salaries for comparable positions in the corporate sector. You should be aware of the degree of sacrifice you’re potentially asking your employees to make. Be sure to recognize your employees’ good works frequently, so they know their sacrifices are appreciated.
3. Offer work-life balance—Determine the reasonable workload that an employee can do within the time allotted, and then accept these limits of what can be done with the people you have. Offer flexible hours and telecommuting where possible. Millennials in particular value owning their private time over the advancement potential of an around-the-clock work environment.
4. Create a healthy work environment that enhances job satisfaction—Studies show that employees who are engaged, curious, have interesting tasks, and who feel their contributions are valued by their peers enjoy high job satisfaction. Poor job satisfaction, some research shows, is actually tied to poor health.
5. Connect employees to the mission—It’s easy for a case manager to understand how they are making a difference; you should find ways for the office manager, the development professional, and the maintenance worker to feel engaged with the mission, too.
6. Support professional development—Paying for an employee’s professional membership and educational sessions shows employees they are valued and helps them build their careers. The nonprofit sector is facing a leadership deficit in coming years. Invest in your people now.

Just remember: no matter how many intangibles you can offer, “good feelings don’t pay the rent,” and talented people have a choice of where they want to work. You might convince them it is worthwhile to whitewash your fence…or they will take their dead rat on a string somewhere else.[fusion_text]

Resources

The Nonprofit Sector’s Leadership Deficit, The Bridgespan Group
Employee Job Satisfaction and Engagement: Optimizing Organizational Culture for Success, Society for Human Resource Management

Learn more about my two-day course, Succeeding as a Consultant to Nonprofits: Setting Up Shop & Getting Down to Business, coming to Baltimore on December 6 & 7, 2016.

It seems that, at some point, nearly every nonprofit executive flirts with the idea of either becoming a consultant or going to work for a foundation. In the workshops that I lead for transitioning nonprofit leaders, both of these roles seem to hold some fascination for executives when they contemplate what’s next for their careers.

While I will leave it to others to speak to what it takes to succeed as a foundation executive, in this post I explore what my colleague Susan Schaefer* and I have learned about success in consulting with nonprofits. Reflecting on our combined 35+ years of experience building our consulting practices plus Susan’s work chronicling the success of America’s leading nonprofit consultants, we’ve identified five critical knowledge areas, skills, and abilities that successful consultants master.

1. Sector and industry knowledge. The nonprofit sector and virtually every discipline within it have their own quirks, norms, and narratives. The dynamics of, say, a behavioral counseling agency are dramatically different from those of a community foundation. Being grounded in the sector in which you will work, and having some appreciation for the dynamics of that field, is essential to successful work with clients.

2. Content knowledge and technical skills. Successful nonprofit consultants have deep skills and knowledge that underpin their services. These can range from executive coaching, to advice on major gift fundraising, to strategic planning facilitation, to board development – the list could go on and on. Those services are based on the consultant’s content knowledge and technical skills. Successful consultants also maintain a “growing edge,” regularly learning new skills and information to stay at the forefront of their field.

3. Business skills and practices. Whether it’s a solo practice or a multi-associate firm, consulting is a business that remains sustainable because its leaders have mastered a range of business skills. This includes the ability to structure your business, price and market your services appropriately, contract with clients efficiently, organize projects and the work overall, deliver projects on time and within budget, invoice projects on a timely basis and maintain cash flow, and meet your regulatory and tax obligations. No matter how strong the consultant’s services, shoddy or amateurish business practices undermine client confidence and eventually will kill the practice.

4. Consulting process skills. While nearly all consulting projects involve a standard set of 5 or 6 stages, the tools, content, and approaches employed within those stages varies considerably depending on the type of engagement. The craft of consulting includes the ability to shepherd projects through these stages, and having effective tools and approaches for each stage of the process. However, it’s not all about steps and techniques. Successful nonprofit consultants simply use these stages as a platform to guide clients through an experience of discovery, change and commitment that leads to the project objective.

5. Consulting presence. Successful nonprofit consultants cultivate their interpersonal skills to work effectively with client teams and manage client relationships. “Presence” is the ability to wed process skills with people skills to successfully move the client forward. First, it involves “being there,” which means showing up, being available, and being fully present when working with a client. Second, it includes the ability to inspire clarity, confidence, and a sense of possibility in the people with whom the consultant is working. It’s the ability to help clients discover and commit to a way forward and taking the necessary action to follow through.

So how does one develop these skills? If you worked in the nonprofit sector for any significant period of time, you probably are well on your way to mastering the first two – sector and industry knowledge, and content knowledge and technical skills. The craft of consulting, the consulting presence, and business skills and practices are also born of experience, but there are training programs that can help jumpstart the process. 

Our observations about these five skills come out of our collective research on the business practices of successful consultants as well as our own work having trained dozens of associates for our practices and hundreds of executives through workshops. If you have a different take on these skills, or if you think we’ve missed something, please feel free to ping me on Twitter or LinkedIn. 

__________ 

*Susan Schaefer and I are the codevelopers of “Succeeding as a Consultant to Nonprofits: Setting up Shop and Getting down to Business,” a two-day intensive course for nonprofit executives who are interested in starting a consulting practice or have just started one. The course is being offered in Baltimore on December 6-7, 2016, by the Maryland Association of Nonprofits and the Standards for Excellence Institute. Other locations coming. 

Susan has 15 years of experience leading her consulting practice, Resource Partners LLC, which focuses on fundraising and board development. Susan is also the coeditor of The Nonprofit Consulting Playbook: Winning Strategies from 25 Leaders in the Field. She has led workshops for hundreds of aspiring consultants and facilitates a learning community of consultants in the mid-Atlantic region.

The following post on nonprofit public engagement was written by Standards for Excellence Licensed Consultant Signe Bell and is part of our “Ten Years of Advancing Excellence” blog series, celebrating ten years of the Standards for Excellence Licensed Consultant program. Signe has been working with nonprofits and community organizations since 2010. She serves as Director of Nonprofit and Community Programs and Associate Policy Scientist with the Center for Community Research and Service at the University of Delaware. She became a Standards for Excellence Licensed Consultant in 2015. 

Let’s face it, nonprofit leaders are busy. You have a ton to do in limited time and public engagement can seem like just one more thing on your “to do list”. Public engagement is an important way to extend your reach beyond the clients that you are serving directly. Engaging with the public in a positive way is an opportunity to help raise your profile in your community and also help move your mission forward. Did you ever wish that you could clone yourself and your staff to help get the word out? If you engage people in your work and get them excited, they can become ambassadors for both your organization specifically or your cause generally…both of which will propel you forward. Social Media is a great tool for public engagement. It does require strategy and management, but has some great applications for reaching audiences for a variety of purposes. Public engagement is also fun! If you love what you do, what could be better than igniting that same excitement in others? 

I was recently given the opportunity to write a blog on a Standards for Excellence® Seal Holder I was particularly passionate about. Without a doubt in mind, I chose the Rehoboth Beach Film Society. At exactly 10:45am on October 19, 2016 I decided to call Sue Early, the organization’s Executive Director. One short ring and I heard the voice on the other end. “This is Sue.” Pleasantly surprised to get an immediate answer, I replied, “Hi Sue this is Ashley Reillo, I’m an intern for The Standards for Excellence Institute® and I’d like to write a blog on your organization, do you have a minute?” I asked. “Yes, yes, but this is a very busy time for us. Our Film Festival is coming up next month.” I could sense the workload she probably had on her plate at the moment so I got right to the point. 

Before I share our conversation, you should know a little background about this inspirational organization. In 1997, a group of passionate locals with a similar love for the cinematic arts, joined together to discuss the future of film screenings in their town. They wanted an area where they could show independent films to anyone interested. Soon creating a group of near 30 people, they realized they had more like-minded people in their town then they thought. Meeting up with the same idea in mind, the tradition blossomed into a growing community. One year later, they created their first film festival.

The Rehoboth Beach Society Film Festival

So I began my conversation with Sue regarding a number of topics. The one I was most excited for regarded The Society’s Film Festival. The Rehoboth Beach Film Society’s Film Festival names itself as the “oldest and largest event of its kind in the State of Delaware.” It’s a little over 9 days long featuring not only independent film screenings but also provides a space of creativity and education for everyone. This year, the film festival is November 4^th through the 12^th. While the Film Festival will be featured in several locations such as Cape Henlopen High School and Metropolitan Community Church Rehoboth, the truly exciting venue is at the Film Society’s very own theater, Cinema Art Theater located on 17701 Dartmouth Drive. 

The Film Society hasn’t always had their own theater. During the Film Society’s existence, before 2014, the members had to tirelessly look for spaces to show their independent films. “We had to show our films in restaurants, churches, schools, any venue that would have us.” However frustrating it may have been, they remained dedicated to their cause, and managed to find a way.

RBFS’s Affiliation with The Standards for Excellence Institute

While the Standards for Excellence Institute is the ideal institute for promoting “the highest standards of ethics, effectiveness, and accountability in nonprofit governance, management, and operations,” Sue has experience working with these kinds of institutions. The organization, Delaware Alliance for Nonprofit Advancement (DANA) has the same idea in mind. “We started off promoting group health and dental insurance for nonprofits,” Sue explained. “However, now it’s focus is to offer training for nonprofits.” As of March 2010, DANA focuses on making compelling recommendations to nonprofits facing obstacles. They also bring light to some of the opportunities nonprofits may have while working on strategies to overcome them.

In a survey conducted of members of Maryland Nonprofits, sponsor of the Standards for Excellence Institute^®, in 2014, 119 organizations responded to questions that asked how the organization involved the people it served and the benefits and costs of such efforts.  The Standards for Excellence^®: An Ethics and Accountability Code for the Nonprofit Sector, developed and promulgated by Maryland Nonprofits (through the Institute) encourages such involvement and suggests that “evaluations should include input from program participants,” “…[nonprofits] should monitor the satisfaction of participants,” and  “the board should establish a rigorous board development strategy for recruiting and selecting new members… ensuring that the board has an appropriate mix of talent, connection to the community, and diversity..” 

The survey was conducted in partnership with Dr. Lehn Benjamin at the Lilly Family School of Philanthropy at Indiana University and sent to over 700 organizations.  Out of the 754 total possible respondents, 119 surveys were completed, for a response rate of 16%.  Almost half of the 119 nonprofits that responded were human service organizations and almost half were smaller nonprofits with revenues under $500,000. 

Here are a few highlights.  Out of the 119 organizations that responded:

• Over half (52%) reported using surveys, focus groups or other means to get regular feedback from their target population.
• More than 1/3 (35%) reported that current or former members of their target population serve on the board of directors.
• About 1/3 (29%) reported that their target population participated in discussions about goals and priorities for the organization.
• 8% reported that their target population participated in staff hiring and 8% reported that their target population participated in staff evaluations.

These percentages may be overstated, as those nonprofits that engage their target population may be more likely to respond to the survey than those who do not.  However, other surveys have found similar percentages of nonprofits reporting constituent engagement.[1] 

What motivates organizations to take this extra step to amplify how their constituents are engaged in their organization?  Let’s look at three possible reasons. 

Better Program Outcomes 

Constituent voice, including getting regular feedback from constituents, can help nonprofit organizations improve their programs and services.  Feedback on everything from hours of operation, types of services provided, and staff practices can help nonprofits have a greater impact.  For example, LIFT, a large anti-poverty nonprofit with offices in D.C., New York, Chicago, and Los Angeles, noticed that some of the people they work with made extraordinary gains, some did not and others were somewhere in the middle.  Why? They started using constituent feedback surveys to find out. What they found is that it was the quality of the relationship with staff that enabled those members to overcome tremendous obstacles to change their lives.  So now LIFT monitors relationship quality, in addition to other variables, with regular 2 minute surveys of those they work with.  The survey results have confirmed their initial findings.  Those who rate LIFT higher on things like relationship quality, make three times as much progress on their goals as those who do not.
Of those 94 organizations in our Maryland Nonprofits survey that indicated using at least one constituent engagement mechanism (e.g., on the board, advisory group, using feedback instruments):

• 39 % reported that the participation of their target population helped improve services, to a great extent or to a very great extent.
• 34% reported that the participation of their target population helped improve the decisions of the organization, to a great extent or a very great extent.
• 20% reported that the participation of their target population helped improve staff performance, to a great extent or a very great extent.

Self-Efficacy Outcomes 

Strategies to increase constituent voice in nonprofit organizations can also contribute to a greater sense of mastery for constituents themselves, separate and apart from the achievement of specific program goals.  These gains usually happen as a result of a more engaged role in the organization itself, beyond getting feedback.  These roles, if executed successfully can increase the confidence and sense of self-efficacy of constituents.  Experimental research in social psychology suggests that making a contribution increases a sense of well-being and mastery (See Cohen 2009; Konrath and Brown 2012; Riessman 1965).  If constituents are more engaged in the organization’s efforts to address the problem, this is one way to make a contribution. 

The experience of Maryland Nonprofits members surveyed seem to agree.  Again, of those 94 organizations that reported using at least one constituent engagement mechanism:

• 45% reported that the participation of their target population increased the confidence of their target population, to a great extent or a very great extent.
• 36% reported that participation of their target population improved the skills of their target population, to a great extent or a very great extent.
• 35% reported that participation of their target population reduced the isolation for members of their target population, to a great extent or a very great extent.

Democratic Outcomes 

Strategies for increasing greater constituent voice in nonprofit organizations can support democratic outcomes.  How?  First, constituents can translate their sense of increased efficacy that they feel in the organization to the public arena (Kieffer 1984, Stevenson et al 2015).  Second, working collectively on a problem—whether it be setting goals for the organization, discussing program choices—can lead members of those working groups to develop trust in each other and develop norms of reciprocity or what Putnam calls social capital.  Social capital is a critical ingredient for a more robust democratic political system.  The strongest evidence of nonprofits and democratic outcomes can be found in studies of grassroots and community based organizations (e.g., Warren 2001). 

Maryland Nonprofit members indicated that this outcome was also evident.  Of those 94 organizations that reported using at least one type of constituent engagement mechanism:

• 20% reported that participation of their target population increased the participation of their target population in civic life (for example, voting, or engaging in other political activity), to a great extent or a very great extent.

While these findings are not generalizable, they do provide a window into the potential benefits for nonprofits of involving their constituents in the operation and governance of the organization.  Of course this approach also has costs for organizations but there have been a number of recent initiatives to make this process easier for nonprofits.  For those interested in learning more about how to improve the role and voice of constituents in nonprofits.   Here are three resources:

1. Feedback Labs. They publish a newsletter, organize conferences and have a small grant program to support organizations in getting feedback from their constituents. See http://feedbacklabs.org/

2. Fund for Shared Insight. This is a funder collaborative that supports research and innovative work to encourage constituent feedback.    (http://www.fundforsharedinsight.org/#improvement)

3. Keystone Accountability. This organization was on the forefront of encouraging nonprofits to engage and get feedback from their stakeholders.  They have a number of guides, resources and instruments that nonprofits can use.  http://keystoneaccountability.org/

If you have questions about the survey or the results, contact Professor Lehn M. Benjamin at benjamin@iupui.edu 

If you have questions about Maryland Nonprofits or the Standards of Excellence, contact Amy Coates Madsen at acmadsen@mdnonprofit.org 

REFERENCES
Cohen, Ayala.  2009.  Welfare Clients’ Volunteering as a Means of Empowerment.  Nonprofit and Voluntary Sector Quarterly.  38(3): 522-534. 

Kieffer, Charles H.  1984.  Citizen Empowerment: A Developmental Perspective.  Prevention in Human Services 3(2-3): 9-36. 

Konrath, Sara and Stephanie Brown. 2012.  The Effects of Giving on Givers.  Nicole Roberts and Matt Newman (Eds) Handbook of Health and Social Relationships.  APA Books.
Riessman, Frank. 1965.  The “Helper Therapy Principle”.  Social Work. 10(2): 27-32. 

Stevenson, Clifford et al. 2015.  The Social Psychology of Citizenship and Social Exclusion:  Introduction to the Special Thematic Section.  Journal of Social and Political Psychology 3(2): 1-19.

Warren, Mark R. 2001.  Dry Bones Rattling:  Community Building to Revitalize American Democracy.  Princeton University Press. 

[1] The findings are consistent with other research from different states (see LeRoux 2009, Guo and Saxton 2010).

The following post on Nonprofit Strategic Planning was written by Standards for Excellence^® Licensed Consultant Debra A. Thompson, MBA and is part of our “Ten Years of Advancing Excellence” blog series, celebrating ten years of the Standards for Excellence Licensed Consultant program. Debra is the President of Strategy Solutions, Inc. and provides strategic planning facilitation and research project management services to organizations and communities. In addition, she is currently on the adjunct faculty of Duquesne University where she teaches organizational development. Prior to these positions, she served as the Director of Planning for Hamot Health Foundation and Corry Regional Health Systems. Debra Thompson became a Standards for Excellence Licensed Consultant in 2012. 

The Standards for Excellence: An Ethics and Accountability Code for the Nonprofit Sector states “Nonprofits are founded for the public good and operate to accomplish a stated purpose through specific program activities.” This calls nonprofits to ensure that the statement mission is clear and that the organization engages in long-term planning activities. 

One of my colleague friends in Pennsylvania who recently conducted a Standards workshop asked me to follow up with one of the attendees (the board chair of a nonprofit who is an executive at a Fortune 100 company in his day job). Based on his experience, nonprofit planning was a meaningless exercise focused on SWOT (strengths, weaknesses, opportunities and threats). He didn’t feel planning included much strategy, or the “real” activities required to ensure sustainability. She asked me to educate him a little further about how nonprofit strategic planning really works. My response included: 

Nonprofit Strategic Planning serves as a cornerstone to ensure that an organization thrives over the long run, and, if done well, integrates a number of the Standards. In fact, it’s as essential as steering is to a ship, keeping the vessel on track to a desired destination. What nonprofit leaders don’t know about strategic planning can severely hinder their organizations’ mission and results, and often gives planning a bad name.

“Nonprofit Strategic Planning serves as a cornerstone to ensure that an organization thrives over the long run, and, if done well, integrates a number of the Standards.”

Here’s a primer specifically designed to help nonprofit leaders identify effective strategic planning processes and those to avoid. Carefully crafted nonprofit strategic planning produces a host of benefits. In fact, in its most productive form, strategic planning will:

• Offer a framework for board governance effectiveness, performance and evaluation.

• Identify an attainable, growth-oriented future vision in line with the mission.

• Introduce valuable knowledge about communities and clients served as well as unmet needs.

• Evaluate organizations’ current product and/or service offerings against best practices and product and industry lifecycles.

• Anticipate and meet the challenges of ongoing organizational, regional and global change.

• Prioritize and introduce new mission-focused programs, products or services.

• Identify strategic infrastructure investments required to take the organization to “the next level.”

• Discover new funding strategies and sequence resource allocation.

• Develop a clear implementation action plan and calendar.

• Build board and management consensus and buy-in.

• Engage staff in supporting the future vision and attaining set goals and objectives.

• Measure the outcomes and impact of efforts and investments.

• Monitor successes and setbacks and ensure that the organization responds accordingly.

The hallmark of effective strategic planning is its visionary aspect. Too often, strategic planning is mistaken for operational planning; outlining the next phase of what is already “in the works.” Some organizations write plans to implement programs for which funding is available. In other words, they follow the money. Many nonprofits use what I call the “warm/fuzzy” approach to strategic planning: they hold a half day facilitated retreat where they all sit around and sing “Kumbya,” and then nothing happens. 

These examples of planning often referred to as “strategic” lack meaningful strategic thinking and appropriate “orchestration” and, as a result, often sit on the shelf. These plans lack implementation systems that explain how goals and objectives will be accomplished with accountability, resources and time-frames. 

Well-designed nonprofit strategic planning encompasses a five-phased approach:

1. Where are we now? This critical environmental assessment phase gathers and reviews data to draw conclusions and raise key strategic questions. It has two components:

   • Evaluation — Review your mission statement and ensure that it is still relevant. Assess the past performance of the board and organization in order to gain an accurate picture of strengths and gaps. Analyze how your current products, services and programs fit the mission and compare to best practices and emerging industry trends. Conduct board and organizational assessments and identify recommendations to make changes to maximize board and organizational effectiveness.

   • Needs assessment—Action items include listening to the “voice” of customers and stakeholders as well as understanding the need for current products and/or services and vetting new ideas. Identifying current resources, analyzing financial capability, debt capacity and cash available for strategic investment, government/policy changes and other top priorities for mission fulfillment are crucial to an effective plan.

2. Where do we want to be? This phase articulates desired outcomes. Process steps include how the vision will be operationalized into new programs and services and results in identifying goals, objectives and new program possibilities. This phase also typically includes a board retreat to ensure that the board and management share the vision and agree on goals and objectives.

3. How will we get there? The implementation addresses and vets organizational strategies to achieve established visionary goals. If done well, this phase includes specific action plans and calculates the human, capital and operating resources required to implement the plan.

4. Who will do what? Delegated objectives and defined action plans including performance expectations for the CEO are the hallmark of this phase that includes development of funding strategies and making a case for support for any new initiatives. Appropriately sequencing activities and creating board and staff alignment are critical success factors.

5. How are we doing? Measuring the outcomes and impact of programs and implementation activities is a key component of the review phase. Rewards and recognition improves performance. Periodic dialogue (quarterly is best!) about what is working and where the organization is stuck is essential to make the plan a living document. Those who are willing to identify and remove barriers improve their ability to achieve success.

Strategic plans should never have more than five goals. Employees, board members and key stakeholders should be able to “count off” each of the goals using the fingers on one hand. Five (or even fewer) goals are much easier to communicate and reinforce. 

Effective nonprofit leaders recognize that they have to think through how their organizations must adapt to expectations including more complex and challenging needs in their communities. They also need to understand how global and industry trends are and will affect the sustainability of their organizations. Effective nonprofit strategic planning accomplishes this and more.