Category Archives: non-profit organizations

Recommendation for Starting a Non-Profit: Plan First – Do Good Second

Non-Profit Consultant and Expert Grant Writer, Derek Link, has more good advice for non-profit organizations that want to flourish:

I get about a call a week from people who have formed a non-profit organization recently and want to find grant money to help them get going. Unfortunately, many of these well-intentioned folks are ill-prepared to turn their good ideas into action. As I begin to ask questions about their organization, they have few answers. What they mostly know about what they want to do is based on speculation and assumptions. I find that they have rarely done any meaningful preparation before filing the paperwork to establish their 501(c)(3) status.

I fear that many these good people will fail at their efforts to start a non-profit because they haven’t done due diligence before what is, in reality, starting a business. If these people came to me before they went to the trouble and expense of starting a non-profit, I would recommend that they complete a business plan for the enterprise first. It isn’t that their ideas are bad; it’s just that they never asked the questions that would tell them if the idea is viable.

It is a huge mistake to think that simply because an idea is worthwhile, that it is also going to generate sufficient money to support a viable non-profit entity. Some of the best non-profits I know are in a continual battle for funding – scraping and scratching to make their budgets balance – even with GREAT results over many years.

Creating a business plan for a non-profit will help people craft a viable model or inform them about the lack of viability of the idea. Mind you, I am not saying that people should not start non-profits; I am simply saying that planning any enterprise before launching into implementation is always a wise course of action.

Here are some key questions that a business plan is designed to answer:

1. Are the services needed?

a. Where are they needed?
b. What exactly is needed?
c. Who needs them?
d. How much service is needed?

2. Who else provides these services?

a. Is there room to compete?
b. Who funds the competition?
c. Where are they and who is served?
d. Where are the gaps in their services?

3. What kind of budget will be needed to get it off the ground?

a. Develop a budget detail.
b. Research potential sources of funding
c. Identify potential partners

These and other important questions about starting a non-profit can be resolved through the planning process. Before paperwork and fees are filed for non profit status, a Board of influential and knowledgeable people should be assembled to help guide the process of founding the organization. One person with a great idea can get something remarkable going that does tremendous good in the world, but without comprehensive planning, a great idea may die on the vine. I think that if more people did sufficient planning, they might find that their ambitions to do good would be better served by being on the Board of, or volunteering with, an existing non-profit organization.

——————————
 
A free webinar for non-profit boards – The Law
 
A free webinar for non-profit boards: Board Member Roles

Recommendation for Starting a Non-Profit: Plan First – Do Good Second

Non-Profit Consultant and Expert Grant Writer, Derek Link, has more good advice for non-profit organizations that want to flourish:

I get about a call a week from people who have formed a non-profit organization recently and want to find grant money to help them get going. Unfortunately, many of these well-intentioned folks are ill-prepared to turn their good ideas into action. As I begin to ask questions about their organization, they have few answers. What they mostly know about what they want to do is based on speculation and assumptions. I find that they have rarely done any meaningful preparation before filing the paperwork to establish their 501(c)(3) status.

I fear that many these good people will fail at their efforts to start a non-profit because they haven’t done due diligence before what is, in reality, starting a business. If these people came to me before they went to the trouble and expense of starting a non-profit, I would recommend that they complete a business plan for the enterprise first. It isn’t that their ideas are bad; it’s just that they never asked the questions that would tell them if the idea is viable.

It is a huge mistake to think that simply because an idea is worthwhile, that it is also going to generate sufficient money to support a viable non-profit entity. Some of the best non-profits I know are in a continual battle for funding – scraping and scratching to make their budgets balance – even with GREAT results over many years.

Creating a business plan for a non-profit will help people craft a viable model or inform them about the lack of viability of the idea. Mind you, I am not saying that people should not start non-profits; I am simply saying that planning any enterprise before launching into implementation is always a wise course of action.

Here are some key questions that a business plan is designed to answer:

1. Are the services needed?

a. Where are they needed?
b. What exactly is needed?
c. Who needs them?
d. How much service is needed?

2. Who else provides these services?

a. Is there room to compete?
b. Who funds the competition?
c. Where are they and who is served?
d. Where are the gaps in their services?

3. What kind of budget will be needed to get it off the ground?

a. Develop a budget detail.
b. Research potential sources of funding
c. Identify potential partners

These and other important questions about starting a non-profit can be resolved through the planning process. Before paperwork and fees are filed for non profit status, a Board of influential and knowledgeable people should be assembled to help guide the process of founding the organization. One person with a great idea can get something remarkable going that does tremendous good in the world, but without comprehensive planning, a great idea may die on the vine. I think that if more people did sufficient planning, they might find that their ambitions to do good would be better served by being on the Board of, or volunteering with, an existing non-profit organization.

——————————
 
A free webinar for non-profit boards – The Law
 
A free webinar for non-profit boards: Board Member Roles

Published by Creative Resources & Research http://grantgoddess.com

Where Do I Start? Advice for New Non-Profit Organizations

Here is some advice from non-profit consultant Derek Link for new non-profit organizations:

I get calls from leaders of new non-profit organizations periodically to help them raise money. Often these individuals have already gone through an awful lot of work to get their organization established. Usually they’ve already a) established a mission; b) written bylaws; c) established a board; and d) filed paperwork with their state and with the federal government to establish non-profit status.

They’re ready to find funds to get started and many think that foundations are the deep pockets they need to establish their services. Often at this point they’re a little frustrated because they’ve discovered that foundation grant seeking is difficult. They’ve probably written letters of inquiry with no return so they suspect they’re doing something wrong – because their mission is so worthy.

My guess is that what they’re doing wrong isn’t presenting the importance of their mission; it’s more likely to be that they haven’t built an internal case for funding – they very simply haven’t gotten started yet and foundations often see “start-ups” as risky investments.
Here is my advice to people wanting to start up a non-profit organization from scratch.

  1. Build a budget and strategic plan before filing your non-profit paperwork.
  2. Build an influential board that is willing to contribute financially or raise a percentage of the budget you need for year one.
  3. Build your local network with agencies that care about your mission, that may either have a budget for your services, or who may include you in future grant applications to provide services.
  4. Include other non-profits in your local network, including your local community foundation.

So, I suggest to you that you start your non-profit by building a local base of support before looking outside the community for funding. Foundations want to see that the local/impacted community is committed to your cause, and that you are doing a good job of establishing a solid business model for achieving your mission.

Where Do I Start? Advice for New Non-Profit Organizations

Here is some advice from non-profit consultant Derek Link for new non-profit organizations:

I get calls from leaders of new non-profit organizations periodically to help them raise money. Often these individuals have already gone through an awful lot of work to get their organization established. Usually they’ve already a) established a mission; b) written bylaws; c) established a board; and d) filed paperwork with their state and with the federal government to establish non-profit status.

They’re ready to find funds to get started and many think that foundations are the deep pockets they need to establish their services. Often at this point they’re a little frustrated because they’ve discovered that foundation grant seeking is difficult. They’ve probably written letters of inquiry with no return so they suspect they’re doing something wrong – because their mission is so worthy.

My guess is that what they’re doing wrong isn’t presenting the importance of their mission; it’s more likely to be that they haven’t built an internal case for funding – they very simply haven’t gotten started yet and foundations often see “start-ups” as risky investments.
Here is my advice to people wanting to start up a non-profit organization from scratch.

  1. Build a budget and strategic plan before filing your non-profit paperwork.
  2. Build an influential board that is willing to contribute financially or raise a percentage of the budget you need for year one.
  3. Build your local network with agencies that care about your mission, that may either have a budget for your services, or who may include you in future grant applications to provide services.
  4. Include other non-profits in your local network, including your local community foundation.

So, I suggest to you that you start your non-profit by building a local base of support before looking outside the community for funding. Foundations want to see that the local/impacted community is committed to your cause, and that you are doing a good job of establishing a solid business model for achieving your mission.

Published by Creative Resources & Research http://grantgoddess.com

How is Your Organization’s Operational Equilibrium?

This is the third and final post in a series of three posts on Organizational Equilibrium, written by Non-Profit Consultant, Derek Link. Parts 1 and 2 were posted on February 16 & 18, 2010.

Operations that are out of balance can compromise the accomplishment of the mission through waste and duplication of effort. In this post, the various activities an organization undertakes to carry out its mission are what I am defining as operations. Key factors that can lead to operational imbalances are 1) lack of adequate internal planning, 2) lack of collaboration, 3) inadequate feedback loops.

Strategic planning to accomplish a mission includes identification of critical success factors. Factors commonly include things like raising enough money, employing the right people, or recruiting the right Board members. In order to make sure that the organization has the capacity internally to accomplish its mission, all critical success factors must be identified then activities and feedback loops must be put into place to make sure each one is attended to. Missing a critical success factor can compromise the mission. For example, in planning to cook and distribute hot meals to seniors, nobody was assigned to gas up the van and by the time the gas card was located, the van taken to the gas station, and the food delivered, it all got cold or it spoiled.

An organization that operates in isolation may duplicate effort and thereby waste resources. Using the senior meal example again, what if an organization decided to deliver Thanksgiving meals to seniors this year but didn’t ask any other organizations in the area if they were going to do the same? Suddenly a senior may receive more than one hot meal on the same day while other seniors may have gone without. Collaborative planning can keep such operational imbalances from happening.

Disequilibrium in operations occurs when planning is inadequate and this can compromise the mission. A key mistake that causes operational disequilibrium is lack of feedback loops. Feeding seniors is a good thing but if food is delivered they don’t want, can’t eat, or which requires preparation they can’t accomplish, then food is wasted. But if nobody asks the seniors what they need, want, and can handle, then the mission is compromised by lack of feedback and an operational imbalance is created. In this case, the actual need isn’t being met because feedback from the recipients of services isn’t being collected and used to refine operations.

In order to have a balanced operation, the organization’s activities must be effectively executed, effectively coordinated, and accurately targeted. Organizations must engage in detailed planning that attends to every critical success factor. Organizations must collaborate with other organizations that have similar missions in order to make sure they are being efficient and avoiding duplication of effort. Finally, operations must be designed to meet the real need, not the perceived need. By attending to these three factors, organizations can successfully accomplish their mission.

How is Your Organization’s Operational Equilibrium?

This is the third and final post in a series of three posts on Organizational Equilibrium, written by Non-Profit Consultant, Derek Link. Parts 1 and 2 were posted on February 16 & 18, 2010.

Operations that are out of balance can compromise the accomplishment of the mission through waste and duplication of effort. In this post, the various activities an organization undertakes to carry out its mission are what I am defining as operations. Key factors that can lead to operational imbalances are 1) lack of adequate internal planning, 2) lack of collaboration, 3) inadequate feedback loops.

Strategic planning to accomplish a mission includes identification of critical success factors. Factors commonly include things like raising enough money, employing the right people, or recruiting the right Board members. In order to make sure that the organization has the capacity internally to accomplish its mission, all critical success factors must be identified then activities and feedback loops must be put into place to make sure each one is attended to. Missing a critical success factor can compromise the mission. For example, in planning to cook and distribute hot meals to seniors, nobody was assigned to gas up the van and by the time the gas card was located, the van taken to the gas station, and the food delivered, it all got cold or it spoiled.

An organization that operates in isolation may duplicate effort and thereby waste resources. Using the senior meal example again, what if an organization decided to deliver Thanksgiving meals to seniors this year but didn’t ask any other organizations in the area if they were going to do the same? Suddenly a senior may receive more than one hot meal on the same day while other seniors may have gone without. Collaborative planning can keep such operational imbalances from happening.

Disequilibrium in operations occurs when planning is inadequate and this can compromise the mission. A key mistake that causes operational disequilibrium is lack of feedback loops. Feeding seniors is a good thing but if food is delivered they don’t want, can’t eat, or which requires preparation they can’t accomplish, then food is wasted. But if nobody asks the seniors what they need, want, and can handle, then the mission is compromised by lack of feedback and an operational imbalance is created. In this case, the actual need isn’t being met because feedback from the recipients of services isn’t being collected and used to refine operations.

In order to have a balanced operation, the organization’s activities must be effectively executed, effectively coordinated, and accurately targeted. Organizations must engage in detailed planning that attends to every critical success factor. Organizations must collaborate with other organizations that have similar missions in order to make sure they are being efficient and avoiding duplication of effort. Finally, operations must be designed to meet the real need, not the perceived need. By attending to these three factors, organizations can successfully accomplish their mission.

Published by Creative Resources & Research http://grantgoddess.com

How is Your Organization’s Governance Equilibrium?

This is the second in a three-part series on Organizational Equilibrium, written by Non-Profit Consultant, Derek Link. Part 1 (How is Your Organization’s Fiscal Equilibrium?) was posted on February 16, 2010.

Governance as defined on http://dictionary.com is, “a method or system of government or management.” Non-profit organizations are governed by a Board of Directors who by design set policy, monitor accountability, assist with fund raising, and give direction to the Executive Director. Good governance is a team effort but bad things can happen when the governance of an organization is out of balance; that is, if there are imbalances in power, control, or understanding.

I worked in an organization once which had a publicly elected Board. This creates an interesting conundrum for the executive of the organization because they must be astute politically in order to survive changes in the Board. One particular Board member who was elected was an extremely difficult person to work with. She was smart and gifted verbally so she was able to deter all of the other Board members from standing up to her. She was also mean and enjoyed being in a position of power. She would go on the attack in Board meetings and even on an individual basis with executives of the organization. She eventually lost her seat but not before she had wreaked havoc on the leadership of the organization to the extent that several senior executives left the organization rather than suffer her unpredictable decision-making and verbal abuse.

My point in this is to say that non-profit Boards get to select their members according to the dictates of their bylaws. This puts non-profit organizations in a unique position to select Board members that can bring necessary skills, talents, and connections to the organization. This feature of non-profit organizations is a strength and can lead to excellent governance that is balanced, agile, and intelligent.

The opposite can also be true. If a Board becomes a closed society unto itself and refuses to include members outside a circle of friends, colleagues, or even a circle of thought, governance can stagnate and the same mistakes may be made over and again. Opportunities for change, growth, or reform may be lost.

Another issue with governance can be a Board that depends too much on its Executive Director and cedes responsibility for its role – a Board that becomes the proverbial “rubber stamp”.

I’ve seen “rubber stamps” in publicly elected Boards and with non-profit Boards. Non-profit organizations are frequently established by one or two people who plan to run the operation and then recruit a Board mostly because they must have one, not because they seek to build strong governance. So the founders may seek people who aren’t going to rock the boat.

Governance that relies on a strong leader can function well over time if the Executive Director is a skilled, moral and values-driven individual and, if they don’t leave. Of course as time passes everyone will move on for one reason or another so if governance of an organization has depended on one person, it can leave the organization in disarray.

I’ve found over the years in organizations reliant on one person for governance that there tends to be a pervasive fear in the organization about the person’s health, age, ability to take better offers, and so on.

Keeping the long view in mind is important so try not to depend too much on one individual for governance leadership. Stable governance of an organization is produced by equilibrium of a strong Board and strong leadership.Non-profit organizations are in the enviable position to recruit Board members that create this equilibrium.

—————-

Part 3 in this series (How is Your Organization’s Operational Equilibrium?) will be posted on February 20, 2010.

How is Your Organization’s Governance Equilibrium?

This is the second in a three-part series on Organizational Equilibrium, written by Non-Profit Consultant, Derek Link. Part 1 (How is Your Organization’s Fiscal Equilibrium?) was posted on February 16, 2010.

Governance as defined on http://dictionary.com is, “a method or system of government or management.” Non-profit organizations are governed by a Board of Directors who by design set policy, monitor accountability, assist with fund raising, and give direction to the Executive Director. Good governance is a team effort but bad things can happen when the governance of an organization is out of balance; that is, if there are imbalances in power, control, or understanding.

I worked in an organization once which had a publicly elected Board. This creates an interesting conundrum for the executive of the organization because they must be astute politically in order to survive changes in the Board. One particular Board member who was elected was an extremely difficult person to work with. She was smart and gifted verbally so she was able to deter all of the other Board members from standing up to her. She was also mean and enjoyed being in a position of power. She would go on the attack in Board meetings and even on an individual basis with executives of the organization. She eventually lost her seat but not before she had wreaked havoc on the leadership of the organization to the extent that several senior executives left the organization rather than suffer her unpredictable decision-making and verbal abuse.

My point in this is to say that non-profit Boards get to select their members according to the dictates of their bylaws. This puts non-profit organizations in a unique position to select Board members that can bring necessary skills, talents, and connections to the organization. This feature of non-profit organizations is a strength and can lead to excellent governance that is balanced, agile, and intelligent.

The opposite can also be true. If a Board becomes a closed society unto itself and refuses to include members outside a circle of friends, colleagues, or even a circle of thought, governance can stagnate and the same mistakes may be made over and again. Opportunities for change, growth, or reform may be lost.

Another issue with governance can be a Board that depends too much on its Executive Director and cedes responsibility for its role – a Board that becomes the proverbial “rubber stamp”.

I’ve seen “rubber stamps” in publicly elected Boards and with non-profit Boards. Non-profit organizations are frequently established by one or two people who plan to run the operation and then recruit a Board mostly because they must have one, not because they seek to build strong governance. So the founders may seek people who aren’t going to rock the boat.

Governance that relies on a strong leader can function well over time if the Executive Director is a skilled, moral and values-driven individual and, if they don’t leave. Of course as time passes everyone will move on for one reason or another so if governance of an organization has depended on one person, it can leave the organization in disarray.

I’ve found over the years in organizations reliant on one person for governance that there tends to be a pervasive fear in the organization about the person’s health, age, ability to take better offers, and so on.

Keeping the long view in mind is important so try not to depend too much on one individual for governance leadership. Stable governance of an organization is produced by equilibrium of a strong Board and strong leadership.Non-profit organizations are in the enviable position to recruit Board members that create this equilibrium.

—————-

Part 3 in this series (How is Your Organization’s Operational Equilibrium?) will be posted on February 20, 2010.

Published by Creative Resources & Research http://grantgoddess.com

Organizational Entropy Part III: The Motion of the Mission

This is the third and final installment of a series by Non-profit Consultant,. Derek Link, on energy, mission, and organizational entropy. Part 1 and 2 were published on February 5 and 8, 2010.

Entropy threatens to bring the motion of the mission to a grinding halt. What are you talking about? Well, entropy is energy that is wasted in doing work. In a previous post, I compared it to the loss of energy that a pendulum experiences in the friction of the pivot point that over time will cause the pendulum to stop swinging and come to rest.

Is the motion of your mission about to be stopped by entropy? Is there wasted energy and resources that are causing friction? Are wasted resources becoming an issue that is reducing your credibility with donors or your ability to provide services?

The motion of the mission can be caused by various sources or kinds of entropy:

  1. Spending too much money on administration – Loss of motion in the mission is caused by confusion or reductions in services. As important as good administration is to the completion of your mission, it can’t become more important than the mission itself. 
  2. Lacking clarity on what the mission is – Loss of motion in the mission is caused by confused action among volunteers and staff as they pull in different directions producing strife among them when it becomes unclear about what “should” be done. 
  3. Operating without effective governance – Loss of motion in the mission is caused by confusion in leadership, poor communication, confused mission, lack of accountability, and lower confidence among the donor base.
  4. Mismanagement of finances – Loss of motion in the mission is caused by poor budgeting, disorganized fund raising, and inaccurate targeting of resources, or by missed opportunities, poor communication, and a lack of fiscal controls.

These are just a few examples of how the motion to the mission can be lost, slowed, and eventually come to rest.There is no such thing as a perpetual motion machine; it takes work to get the motion to the mission going, and it will take continual application of force to keep it in motion.

Organizational Entropy Part III: The Motion of the Mission

This is the third and final installment of a series by Non-profit Consultant,. Derek Link, on energy, mission, and organizational entropy. Part 1 and 2 were published on February 5 and 8, 2010.

Entropy threatens to bring the motion of the mission to a grinding halt. What are you talking about? Well, entropy is energy that is wasted in doing work. In a previous post, I compared it to the loss of energy that a pendulum experiences in the friction of the pivot point that over time will cause the pendulum to stop swinging and come to rest.

Is the motion of your mission about to be stopped by entropy? Is there wasted energy and resources that are causing friction? Are wasted resources becoming an issue that is reducing your credibility with donors or your ability to provide services?

The motion of the mission can be caused by various sources or kinds of entropy:

  1. Spending too much money on administration – Loss of motion in the mission is caused by confusion or reductions in services. As important as good administration is to the completion of your mission, it can’t become more important than the mission itself. 
  2. Lacking clarity on what the mission is – Loss of motion in the mission is caused by confused action among volunteers and staff as they pull in different directions producing strife among them when it becomes unclear about what “should” be done. 
  3. Operating without effective governance – Loss of motion in the mission is caused by confusion in leadership, poor communication, confused mission, lack of accountability, and lower confidence among the donor base.
  4. Mismanagement of finances – Loss of motion in the mission is caused by poor budgeting, disorganized fund raising, and inaccurate targeting of resources, or by missed opportunities, poor communication, and a lack of fiscal controls.

These are just a few examples of how the motion to the mission can be lost, slowed, and eventually come to rest.There is no such thing as a perpetual motion machine; it takes work to get the motion to the mission going, and it will take continual application of force to keep it in motion.

Published by Creative Resources & Research http://grantgoddess.com