Some nonprofits have a hard time finding consistent stability in all their operational functions at one time. At the core of all sustainable community organizations are good programs that advance the organization’s mission. If you want to know where to focus your efforts for building capacity in your organization, or if you’re just interested in locating a healthy nonprofit in your community to support, check out the list below.
Nonprofits and community organizations should have these minimum elements in place to effectively advance their missions:
Strong Organizational Governance
Most organizations have a governing board of directors. For the board to be a functional part of the organization, they must work with the executive director to define the mission and develops strategies that advance it. It also provides an independent check on management’s actions and a connection to the community served. Most nonprofits try to fill board seats with prominent members of the community they serve, usually with connections to potential donors and experience in their respective board subcommittee. A disengaged board of directors looks like: not aware of the existing programs/initiatives, not fundraising, not keeping the executive director in check on operational and financial issues, and more.
A Competent Executive Director With Vision
The leader of a nonprofit must work collaboratively with the board and staff by making connections to the community, funders and clients with strategic vision. The executive director needs to have high moral and ethical standards because he or she sets the tone for internal communications and the community and organizational relationships. An executive director should also know how to raise funds and understand service delivery.
Business Operational Practices – Finance, Programs, and HR
Nonprofits need a system that monitors spending and offers accurate reporting to management on profit and loss. Management also needs the financial information organized and readily accessible for decisions on budgets and staffing. There should be regular evaluations of financial practices for organizational and programmatic spending by internal committees and contracted auditors or evaluators. Nonprofits typically spend around 75% of their funding on administrative needs, including salaries, benefits, and training. Using limited resources, they must carefully handle this to make sure they remain in compliance with government laws and HR regulations.
A Plan for Fund Development
The only way a nonprofit can survive is if it consistently obtains funding. This can be from grants, contracts, fees, or individual donations. It truly becomes a situation when a nonprofit cannot attract resources. Lots of nonprofits are creating roles for Development Officers and Fundraisers to combat the issue. However, organizations that cannot afford to create the role need to rely on the board and executive director to work together and raise the necessary funds through their various networks and connections (See above, Strong Organizational Governance).
Targeted Communications
Nonprofits need to have a consistent message about what they do that reaches to a targeted base. A nonprofit has communicate what it is about to anyone who can either help it or be helped by it. This could begin as newsletters or mail campaigns, but marketing and communications efforts need to make use of all available media to take advantage of opportunities that arise to tell its story. Put simply, nonprofits need to have communications strategies in place to reach potential clients, funders, and others that could benefit or contribute to its mission. This means working with local media and connecting with other social service organizations to see how to multiply impact.
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