Real Change Is Never Random: 5 ways nonprofits can better plan to survive and thrive

Random Acts of Kindness Week (Feb. 9-15) and Random Acts of Kindness Day (Feb. 17) inspire people worldwide to spread kindness in small ways. Kindness, sharing, and generosity motivate America’s 1.8 million nonprofit organizations. Yet when it comes to driving positive social impact and change, nonprofits can’t afford to operate in a random, haphazard way.

Nonprofits that thrive operate with intentionality and strategy. Yet far too many of these organizations fail to reach their potential, or even fail outright, because they fail to plan with the kind of rigor for-profit enterprises routinely use to succeed.

Among top reasons for the demise of nonprofits are failure “to anticipate, recognize, avoid, neutralize, or adapt to external or internal pressures,” a review of research on the topic finds. All of these can be avoided through proper planning, I’ve found through my two decades of work in the sector. Here are five pitfalls facing organizations that take a haphazard approach, and ways to avoid them:

1. Assess capacity at the start. Nonprofit capacity is considered one of the top indicators of performance, yet many organizations fail to take a comprehensive look in the mirror before establishing their mission and values. Organizations that succeed assess their capacity and then build their mission, vision, objectives, and milestones based on a thorough understanding of their capabilities. Early assessment allows these organization to operate efficiently and build out their capacity to meet challenges
2. Develop a strategy for growth. Too many nonprofits get caught up in meeting the challenges of their daily operations without developing a plan to scale their social impact. Successful nonprofits have an impact strategy for hitting specific targets and achieving outcomes in their current operations, and a growth strategy to expand their resources to meet future challenges.
3. Create a business plan & pitch deck. Nonprofits need business planning, including a polished pitch deck — a concise presentation that outlines the business plan for investors (donors). Yes, strategic planning is essential to allocate resources, align the organization on its vision and mission, and ensure long-term financial viability. At the same time, preparing a business plan is a unique and comprehensive process that yields strategic clarity and performance measurements beyond those that come from strategic planning. Yet almost half of nonprofits don’t even have a written-out strategy, much less a robust business plan and pitch deck. If your organization has not nailed down specifics of revenue sources, operating costs, program costs, and capital structure, it’s time to get started.
4. Get the most out of feedback. The Center for Nonprofit Strategy and Management estimates 96% of nonprofit organizations collect some form of feedback, yet few use this feedback to its full potential. Identifying the right stakeholders and asking the right questions is the key to getting meaningful performance feedback that produces results. This type of feedback goes beyond basic accountability to identify issues that matter to funders and providers, such as ways to boost performance and measure improvements to services.
5. Create an investment and partnership team. An investment and partnership (I&P) team is charged with putting the business plan and pitch deck to work. These teams should have a structured and intentional role, including investment and partnership officers (IPOs) from the organization’s senior leadership. These are individuals devoted to fundraising, with additional responsibilities around planning and execution giving them the knowledge they need to court prospects effectively. They act as the “eyes and ears” of the organization, gathering market feedback and revising plans accordingly. They are also accountable for execution, measuring outcomes even if they don’t completely align with aspirations, which often occurs with younger or struggling nonprofits.

These five steps are essential to building organizations that not only survive but thrive and grow to meet the challenges of their communities. How does your organization measure up? The most successful nonprofits are full of purpose and intention, because creating real social change is never random.

Written by Donald Summers, Ed.M.
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