An important factor that several nonprofits fail to initially consider is how they can sustain programming beyond the initial stages. It should be a high priority for any nonprofit to build itself into a stable entity before trying to save the world. Without stability, the organization will not be around long enough to continually realize its mission.

“For the social enterprise movement to realize its potential, organizations will need to invest in the recruitment, development, and growth of their future leaders, just as for-profits do. People provide the real growth capital for any enterprise — and make it possible for them to have an impact,” writes Gerald Chertavian in the Harvard Business Review. Leaders who wish to successfully run a nonprofit and continue to positively impact society in the future will need to focus their energy in three key areas: staff recruitment, fundraising, and donor and staff retention.

Recruiting

An essential part of creating an effective and sustainable nonprofit is recruiting the right people. Top talent is difficult to find and even more difficult to hire. “Managers across the public, private, and nonprofit sectors are increasingly recognizing that employees are their organization’s most important assets and that the most significant source of competitive advantage comes from having the best systems in place for…

Increasingly, leaders of nonprofit organizations manage and drive their missions forward in a more complex and less certain world. Factors including lingering COVID-19 disruptions and widening socioeconomic disparities continue to challenge nonprofits’ budgets, resulting in revenue concerns that keep CEOs, executive directors and other nonprofit leaders up at night.

Fundraisers and the revenue they generate make mission fulfillment possible (while also helping leaders get more restful sleep!). Society depends on nonprofits, nonprofits require sustainable revenue, sustainable revenue comes in large part from fundraising professionals, and fundraising professionals need more support and appreciation. The compromising of these interconnected pieces has led fundraiser retention to become a growing issue for missions.

According to Independent Sector, increased competition among nonprofits and a perceived increase in the scarcity of donors and available funding make it difficult to raise money consistently. The connection between fundraisers’ longevity at an institution to revenue is undeniable; those with four to seven years at the same organization raised 50% more, and those with eight years raised 83% more than their newly hired colleagues. Prioritizing these professionals’ development, wellness and growth increases job satisfaction; as a result, they stay with the organization and do their best work…

While the COVID-19 pandemic may be unprecedented, it is not the only disruption nonprofit leadership will face. Perhaps we will never again see such simultaneous disruption to every aspect of business and personal life, but this is the perfect time to examine strengths and weaknesses specific to organizational resilience. Instead of viewing resilience as an outcome, it is important to understand approaches that generate positive results.

“Incorporating [resilience] qualities into an organizational system equips it to systematically adapt to disruptive challenges. Using resilience as a process, nonprofit organizations can have the capacity to continuously respond to challenges and provide uninterrupted and valuable services,” write Hope Witmer and Marcela Sarmiento Mellinger.

Witmer & Mellinger’s qualities for a resilient organization include: commitment to mission, improvisation, community reciprocity, servant and transformational leadership, hope and optimism, and fiscal transparency. Many of the challenges through the pandemic were not new and will exist long after. Strategically adopting organizational resilience principles will lead to prepared, capable and more sustainable organizations. The following recommendations are based upon present dynamics with expected future significance.

Objective: Intentionally develop organizational resilience attributes…

The Trust Barometer 2021 Global Report reports that businesses are now the only institution trusted by the public, not nonprofits. Reading Tory Martin’s ideas for rebuilding public trust through participation and transparency led me to explore how nonprofits can rebuild public trust through accountability to beneficiaries. Accountability to beneficiaries and their communities, or downward accountability, involves voluntarily opening your organization up to scrutiny by those you serve.

The use of downward accountability mechanisms is growing. Similarly, the concept of empowering beneficiaries and a rights-based approach to development have become more widely used and accepted. Many in the sector may agree with the concept of downward accountability but struggle to effectively put it into practice. Nonprofit leaders frequently named beneficiaries as stakeholders that their organizations are accountable to, but lacked accountability mechanisms that matched their verbal commitments.

Here are a few practical recommendations to implement downward mechanisms (utilizing an ombudsperson, social auditing, participation, etc.) well, and build public…

The nonprofit sector is not the first or last entity shifting through the issue of impactful diversity, inclusion, and equity within its organizations. However, the role that leadership plays in ensuring the success of creating lasting impact to its beneficiaries and stakeholders through accurate representation of demographics is still to be seen. Board diversity is an essential tool in broadening the impact of DEI in the nonprofit sector.

Board representation

Nonprofit boards currently hold an average of 80% of members representing white men. Looking at the overall demographics of the United States, which has grown considerably over the past ten years in diversity, accurate representation between nonprofit boards and the rest of the United States does not match. As nonprofits are in the business of seeking change within various populations, diversification within leadership in order to ensure the best outcomes of goals for all population demographics comes with the need for additional characteristics within its members.

A diverse board provides additional expertise

Having board members who are able to provide expertise on the issues and needs of the organization's beneficiaries will create a better depiction of the best practices needed to fill those needs. Board members who have shared experiences as beneficiaries provides an added element of knowledge on how to best serve said population…