Time Out

In a quick review of non-profit literature the most common themes can be summed up in two questions: 

Why Do
Non-Profits Fail? 

– and –

What Are the
Characteristics of a Successful Non-Profit? 

Obviously, non-profit boards who are concerned with the long term health and success of their non-profit should consider both questions.

In an interview a few years ago, Dr. Ben Carson stated that fully 50% of non-profits chartered ten years ago are no longer in existence today.  That statistic has been challenged. In a Non-Profit Quarterly article in 2015 Factcheck.org quotes Thomas Pollack of the National Center for Charitable Statistics which found that one-in-three non-profits founded in 2005 were no longer active in 2015. Further, almost 50% of non-profits chartered twenty five years ago are no longer active.  Either way, it should be clear that successful non-profits require work. Will your organization be active in 2044? Even if you are willing to put in the work, HOW SHOULD YOU WORK? 

Stephen Block cites two main obstacles to non-profit success: Overcoming Founders Syndrome and Fundphobia.   Founders Syndrome can be stated this way: Founders and organizational leaders who fail to understand the consequences of remaining vigilant will cause the organization to suffer the consequences. As one person has said “Leading with your butt facing forward” will result in blindness for your future. Fundphobia is simply struggling to provide the resources necessary to realize the mission and programs of your non-profit. 

But, what about non-profit success? Effective and healthy non-profits seem to have these things in common:

1. 1. 1. A clear mission and purpose
      2. Ability to perform key functions
      3. Strong practices
      4. Procedures and policies for finance and government
      5. Good people
      6. The ability to motivate others

So, how do you and I build that healthy non-profit? There were three key findings from a recent “2019 Non-Profit Leadership Impact Study: Redefining What Leadership Means in a Non-Profit”

1. 1. 1. Non-profits continue to struggle with finding adequate resources for their organization
      2. Non-profits must learn to educate Board members on their roles and expectations in making the organization a success
      3. Technology is becoming an integral part of how non-profits manage relationships.    

This same report found the three biggest challenges non-profits faced that influenced the effectiveness of their Boards of Directors were:

1. 1. 1. Making sure Board members are actively participating in fundraising activities and keeping them motivated to do so
      2. Establishing clear roles and expectations for Board members
      3. Recruiting quality Board members who are passionate about the non-profit’s reason for being.

So what does all of this mean? First and foremost, it’s time for non-profit boards to call TIME OUT from their busyness. They must begin to ask the right questions. Are we who we say we are? Are we doing what we say we do? How do we know we are successful? What should we look like in the future?  For many years organizational theory was clear – “you must have a five year strategic plan”. While the five year strategic plan is still important, the immediate future (12-18 months) will be what makes planning a success. Too many CEO’s, Presidents and Leaders allow the Board to have vague undefined and numerous “goals” for the year. Those same leaders tend to have their own personal goals for the non-profit which may or may not fit with the Board’s. This is a clear recipe for failure. At the end of the year, evaluation will be scattered and, at best, informed opinion and at worst, a surprise to leadership.

A successful Board TIME OUT will result in rich discussion and prioritizing of important objectives. The objectives will be fleshed out so clarity results. With an understanding of clear objectives the Board can then define success clearly for both leadership and the board. Evaluation can then be much more objective and opinion and emotion are kept to a minimum. 

What Board member doesn’t want to say about their non-profit, “We met our goals and the organization is strong and heading in the right direction.” When that can be said then, as Tom Suddes says “You are no longer a non-profit organization – you have become a ‘for Impact’ organization.”    

1. 1. Ben Carson, Oct.18, 2015 interview on “This Week” with George Stephanopolis
   2. Non-Profit Quarterly, Oct. 2015, “Do 9 Out of 10 Non-Profits Fail? As Ben Carson Asserts. No Says Factcheck.Org.”
   3. Why Non-Profits Fail: Overcoming Founder’s Syndrome, Fundphobia and Other Obstacles to Success, Stephen R. Block, (San Francisco, California, Jossey-Bass, 2004)
   4. “3 Key Findings from the 2019 Non-Profit Leadership Impact Study”, Neoncrm.org/2019-non-profit-leadership-study-findings/
   5. ForImpact.org, see especially “Change the Story”