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ASU Lodestar Center Blog

Research and recommendations for effective, day-to-day nonprofit practice from ASU faculty, staff, students, and the nonprofit and philanthropic community.


Wednesday, September 11, 2024

Director Executive Relations

The foundational relationship between nonprofit executive leadership and the board of directors provides the groundwork for success, acting as the pillars for organizational operations and goals. A robust working relationship between these two parties must be in place to work efficiently towards achieving the organization's mission, vision, and goals. This is not always easy to reach. A 2009 study highlights that all organizations are unique entities with different needs, resources, and staffing situations, meaning that no solution will ever be one size fits all. Despite this, the same 2009 study recognizes there are several core features that can be implemented to promote success in the relationship between executive leadership and the board of directors within a nonprofit organization. 

So what can be done? 

Create an understanding of roles and expectations

Whether your board of directors or executive leadership are new to their role or have years of experience, all nonprofit organizations differ. Both the board and leadership should ensure one another is appropriately set up to perform their role best, and the best way to do this is through a deep understanding of what is required. Ensure that there is a proper onboarding period for all new members that allows them to familiarize themselves with existing or new protocols, active and past projects, and,…

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Tuesday, September 3, 2024

employee happiness

Nonprofits play a crucial role in addressing social and environmental issues and improving the welfare of communities. However, these organizations' success heavily relies on their employees' capabilities and dedication. In the nonprofit sector, employees are responsible for implementing  programs, delivering services, and engaging with stakeholders. Therefore, nonprofits must invest in their employees' well-being to ensure they are motivated, productive, and committed to their mission.

Employee well-being refers to an individual's physical, mental, and emotional health. In the nonprofit sector, employees often face multiple challenges, including high workload, limited resources, and exposure to traumatic situations. These challenges can lead to burnout, a widespread problem that affects the nonprofit sector.

Burnout is a state of emotional, mental, and physical exhaustion caused by chronic stress or prolonged exposure to stressful situations, which can lead to reduced productivity, increased absenteeism, and turnover, ultimately affecting the organization's performance and mission. To prevent burnout and promote employee well-being, nonprofits must prioritize their employee's needs and invest in resources and support systems that promote physical and mental health. Here are some of the ways nonprofits can invest in employee well-being.

Provide competitive compensation and benefits

Nonprofit employees are often passionate…

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Wednesday, August 28, 2024

volunteer value

In the world of nonprofits, the concept of "value" is often closely tied to monetary figures. Budgets, donations, and financial reports dominate discussions about sustainability and impact. However, there's an invaluable resource that often gets overlooked in these conversations: volunteers. While their contributions may not be measured in dollars, their worth extends far beyond monetary value. In this blog post, we'll explore the multifaceted nature of volunteerism and why it's essential for nonprofits to rethink how they measure the worth of their volunteers.

The heartbeat of nonprofits

Volunteers are the lifeblood of many nonprofit organizations. They bring passion, dedication, and a diverse range of skills to the table, all of which are essential for driving the mission forward. From serving meals at a homeless shelter to tutoring disadvantaged youth, volunteers play a crucial role in addressing social issues and fostering positive change in communities.

Beyond the balance sheet

While it's easy to quantify the value of monetary donations, the contributions of volunteers are often more challenging to measure. However,…

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Wednesday, August 21, 2024

disruption

Periods of disruption occur with regularity throughout recent history. These disruptions can cause severe stress for nonprofit organizations. Examples include the Financial Crisis of 2008/2009 and the COVID-19 pandemic.  

Major events can create significant challenges in several areas:

  • Fundraising: Competition for funds can increase when economic disruptions occur.  Companies and foundations can restrict their giving when investments are performing poorly.
  • Human Resources: Stress outside the workplace can undermine staff cohesion.  Available resources may be limited by other factors. 
  • Service Demands: In times of disruption many social service demands increase, which creates further challenges toward fulfilling the organizational mission.

Being adequately prepared when these events occur can be the difference between surviving and thriving. The framework to create the tools to succeed during disruption are grouped into three “imperatives”: preparation, action, and recovery.

Preparation

  • Operating budget with positive bottom line that includes emergency savings line item.
  • Build savings to reach 180 days of operating expenses.
  • Negotiate all contracts to include escape clauses with manageable break fees.
  • Rigorously adhere to budget, making expense decisions to match any revenue shortfalls.
  • Develop an emergency budget…
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Wednesday, August 14, 2024

resource development

Nonprofits are teetering on the edge. Chronic underfunding and underinvestment in capacity building have stunted growth and put effectiveness at risk. While organizations consume more capacity than they have, the demand for their services continues to surge. Additionally, disruptive events have impacted donor behavior, causing global giving to decline. To survive, nonprofits need to strengthen resource development capacities.

Many, however, think these efforts are costly, complicated, and disruptive. The model below highlights the foundations and steps for capacity-building success.

Leadership, culture, and communication are the foundations for success in capacity building. Excellent leaders know their organization, accurately analyze trends, and anticipate future needs. Using these insights, they determine which initiatives can deliver the greatest impact, enabling them to make cost-efficient decisions. 

Since capacity building involves effecting change, it is critical that leaders manage potential disruptions and encourage cooperation. One way is to model the desired new behavior. When leaders act consistently with the reforms, they promote and sustain the change. 

An organization’s culture also plays a role. It can either be a catalyst or an obstacle. Make sure that the organization’s culture is ready. By helping people understand that change is the norm, not the exception, leaders become instrumental in developing a culture that is…

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