Nonprofit Thoughts

Entrepreneurs and Nonprofits

2012-01-16T06:07:00.000-08:00

I believe that our economy is built on the backs of entrepreneurs. I also believe that it is society's responsibility to care for society. That being said, I believe that nonprofits are the entrepreneurial solution to fulfilling that responsibility. It is not surprising then, to find that many who desire to start nonprofits are really entrepreneurs at heart.

It sometimes surprises them, since they have not always thought of themselves in those terms. It seems there is something about being a for-profit that scares people. The thoughts of losing investment, organizational accountability, business plans and even hiring staff seem intimidating. The truth is, you have those same concerns with a nonprofit!

Nonprofits would be more successful if they thought of themselves in the same terms as a for-profit venture. Have a plan, have a budget that you follow, be accountable to your mission, your donors, and your federal and state reporting agencies. Familiarize yourself with the best practices of operating a successful organization and get good at them!

Non-Profit Board Cooperation

2010-08-06T10:02:00.000-07:00

What did you do when you were a child and the kids you were playing with just wouldn’t behave? Or maybe they wouldn’t take your suggestion on what game to play? Did they sometimes bully you into doing exactly what they wanted? Did it make you want to “pick up your ball and go home”?

Have you ever found yourself in exactly the same situation as an adult? Let’s talk specifically about non-profit boards. Have you, or are you now serving on a board that cannot get along? Nothing beats down the purpose of a non-profit board quicker than members who are more concerned about personal acclaim or notice than they are about the good of the organization. There may be no “I” in team, but there is a “Me” somewhere in there and that’s what some board members focus on.

One of the great things about non-profit boards is the individuality that comes together for one good purpose. This individuality can also be a hurdle that must be crossed to accomplish the purpose of the board, if it cannot be integrated into the individuality of others. Just like children, we do not like to work with people who “can’t play well together.” Unfortunately, picking up and going home seldom serves the organization.

A better solution is to choose your playmates, I mean board members, more judiciously. Rather than selecting a board member based on an immediate perception of passion, resources or capability, look deeper at what that individual will bring to the job the board has of working together to govern the organization. But how can you be sure?

First, advisory boards are great to give candidates a place to show how they work together in a team environment. Working on events or activities can also give an indication of how invested a candidate will be in the mission. Provide opportunities to see a board candidate in action before offering them a position. I promise you that if they do not work well in those other areas, they will not change in a board environment.

Second, put a process in place that will protect the board against poor selections. A good process for vetting and installing new members can also prevent board members from being placed in the awkward position of explaining to someone they have asked to serve why the board has decided it wouldn’t be a good idea. Standardizing the process will make everyone more comfortable that decisions are made fairly and with thought.

Just like on the playground, we can find ourselves interacting with people who have never learned to “play well” with others. But we can protect ourselves and our organizations against some of that by choosing wisely who we put on our team.

Elevator Speech

2009-10-10T06:02:00.000-07:00

Most salesmen understand they need to have a 90-second "elevator speech" that accurately and succinctly describes their product. As non-profit managers, board members and volunteers we should be able to do the same thing with the organization we support. We should be able to anser the questions "What is (your organization)?" "How did you get involved?" and "Why is this important to you?" briefly, yet in such a way that additional questions are welcomed.

I suggest starting by developing your thoughts around the following three ideas:

1) Know the compelling reason the organization exists
2) Be able to share the reason you are involved with the organization
3) Be able to tie together your involvement with the goals of the organization

Know how to express how you feel about these three thoughts and you can take a conversation as far as the listener will allow you to go, without feeling awkward about your answers. Remember, this may be the listener's only opportunity to hear about your organization - make it good! Know how you feel and be able to say it briefly (i.e. 90-second elevator speech).

Communicate to Connect

2009-09-10T07:13:00.000-07:00

I once spoke with a legislator from Arkansas during the Whitewater scandal involving the Clintons. He told me Bill Clinton would never be convicted of wrong-doing connected with the pursuit of money. He commented that money didn't matter enough to President Clinton and he was always more concerned that people like and support him. He continued, "If Bill Clinton walked into a room of 500 people and there was one person in the room that did not like him, that is who he would immediately seek out in an effort to connect with and "win over" that person."

While I did not respect President Clinton for much of who he was, he did understand the importance of connection. It paved his way for political success and kept him surrounded by supporters even during times of personal and professional upheaval.

There's an old saying that points out, "It's a lot easier to hate someone you don't know." It's all about connection. If you are a non-profit looking for support, think about how you can connect with the community and communicate your message at every opportunity.

Passion - Good or Bad?

2009-08-25T05:30:00.000-07:00

It seems that everyone is looking for passion. Employers want passion from their employees, coaches want their teams to be passionate, speakers, preachers, and salesman all seek to motivate and create passion in their audiences. New non-profits often exist because someone is passionate about a particular cause. But how important is passion to the overall success of our business, team, church, or non-profit?

Having been a coach for several years and a sports fan forever, I have witnessed many "upsets" of favored teams by a "passionate" opponent. Most of us can pick out one or two of these instances when the underdog fought off the odds and exceded their potential - coming away with a victory even they did not expect. The real question, however, is how did those teams do after that victory?

While a single passionate victory can do a lot to motivate or inspire greater successes, they seldom change overall outcomes, if that victory is built on passion alone. Passion built on knowledge and understanding, however, can sustain you. A team that is passionate because it understands what is necessary to win, will win more often. A business whose employees are passionate because they know their company is a quality company with a good plan to be successful will be passionate for the long-haul.

Most important, a person whose faith is built on knowledge and understanding will be sustained through the good times and bad because their faith is not dependent upon passion alone. Likewise, a non-profit that involves people who are passionate only, but not willing to invest themselves in the mission, will someday find itself struggling to survive.

The bottom line is that passion without understanding is shallow at best and seldom sustains. As a leader of your business, church, or team do not hang your future on passionate people without providing them with the tools they need to support their passion. If you do, when the down times come (and we all know they will) you will find the dip in enthusiasm will be less prominent and easier to reclaim.

The Elevator Speech

2009-08-21T05:45:00.000-07:00

Businesses know about the "elevator speech" a salesman should be prepared to give at any place or time. It is the 30 seconds a salesman has to tell someone who he (she) is and what he sells in such a way that it provokes additional interest in him (her) and the product. The term comes from the approximate time you have on an elevator to visit with those on the elevator with you.

Non-profits should take a lesson from business (again). Every non-profit has a mission statement, but is it something that can be articulated in the course of that elevator ride? I think one of the biggest mistake that can be made is developing a mission statement that is too long, covers too much information, and is difficult to remember - much less communicate quickly and easily.

Every executive director, fundraiser, and board member should be able to articulate in 30 seconds the purpose of their organization to anyone who might ask. Start this process by using a mission statement that is short and easy to remember. If you can't make it your mission statement, at least come up with a comment that can answer the question "Really, what is (your organization) about?"

One rule of thumb has always been to make your statement something you can print on a t-shirt. It is sort of a "twitter" approach to advertising. You only have 140 characters to say what you want to say. Being able to quickly and decisively tell someone what your organization is about tells them 1) You know the service it provides 2) You are engaged enough to be able to communicate it to others 3) You are willing to put yourself in the position of going further with the conversation.

Don't assume this will happen. Be intentional about giving your people what they need to quickly and easily communicate the purpose of your organization to others. You have a product and it must be sold - sometimes in the time it takes to ride the elevator.

If you have to ask who's leading, they're not

2009-07-28T10:37:00.000-07:00

Leadership is something that every organization, team, business or social faction requires to be successful. Without leadership the group will flutter aimelessly; unable to achieve goals or destinations. John Maxwell is one of the premier authorities on leadership. His "21 Laws of Irrefutable Leadership" is a classic work outlining who and what a leader looks like. You think you are a leader or want to be one - read it. But for the purpose of brevity in this blog, I will concentrate on one particular quality of a leader.

As simple as it sounds, a leader can only lead if someone is willing to follow. When looking for leaders, don't waste time trying to manufacture them. I once coached high school football and without fail, every time we tried to force an athlete to lead, we did - fail, I mean. Save yourself some time and look to the people who already have a following. Think cultivating leaders rather than planting them.

I have already blogged recently about our inability to grow leaders in non-profit organizations. Look around and see who draws people to them and try bringing them to leadership positions in your organizations. Be careful not to make them fit your mold of leadership (vocal, demanding, etc.). Help them learn to use the talents they already have that attracts others to them for the purpose of leading the organization.

It is much easier to teach a leader how to lead more effectively than it is to teach a non-leader to lead.

Faith-Based Non-Profits

2009-07-19T20:41:00.000-07:00

A lot of the non-profits I work with are actually ministries. While they are serving the needs of a community, they are also working on behalf of a greater desire to save souls. Faith-based non-profits often present the issue of its leadership feeling "called" to the mission of the organization. As a consultant, how do I tell a faith-based non-profit that it is not prepared to be successful?

The answer - very carefully. I would never tell a person who felt called by God to minister that he or she would not be successful. As my good friend Boyd Bailey says, "God sometimes blesses a mess!" But he also blesses organization and hard work. While it is not my job to predict failure for kingdom work, I do feel that I can with good intentions point out areas that need growth, accountability or attention.

Much like being a Christian, faith-based non-profits should not expect their "work" to make them successful. By the same token, they should prepare themselves to do work on the ministry as well as in it. God will still bless messes, but he will also honor our efforts to do ministry right.

Board Meetings or Bored Meetings?

2009-07-16T07:51:00.000-07:00

On several levels, board meetings are critical to the well-being of a non-protit organization. Most non-profits that fail, do so due to poor, uninspired, unequipped, and/or univolved boards. They usually start out with the greatest of intentions; passion is the order of the day. What happens that changes that positive vibe into a negative environment that hurts the organization?

Certainly there are multiple answers to this question, but one that I find is very prevalent is the long, boring board meeting. While board meetings that drag on and on while dealing with the minor problems of an organization may make some board members feel they "have a handle" on things, for others it is pure drudgery. The good news is this is a problem that can easily be fixed:

1) Start by selecting board members who have expertise in areas that would benefit the organization: Accounting, legal, fundraising, administration, public relations, volunteer service, etc.

2) Allow these board members to share their expertise through committees that work specifically on their area of experience and knowledge.

3) Empower these committees to work with the staff and address the specific needs of the organization.

4) Committees, made up of a board chairperson and non-board members with similar talents to share, make regular reports back to the board on their activity.

5) Questions about these reports that arise in board meetings and stretch into "discussion" mode may need to be tabled to a committee meeting with all interested board members invited to attend.

This process can dramatically shorten board meetings. Use them for discussing policy and procedure, identifying issues of concern, assigning board projects, and hearing staff and committee reports on the status of the organization. These things by themselves can take time. Add lengthy discussion about topics most board members have no real input on and you have the recipe for a "Bored Meeting". Make long, boring meetings the rule rather than the exception and keeping good board members will be harder than keeping cool in a Texas summer (you can do it but you have to work really hard).

Summary: Recruit good board members, allow them to work in their area of expertise and give them the authority to operate on behalf of the board. A happy board member is one who goes home from a meeting feeling fulfilled not empty.

What have we been thinking?

2009-07-12T18:10:00.000-07:00

We haven't. We have been content to operate our non-profit ministries with retired business people (not that there's anything wrong with that) or stolen managers from other non-profit ministries (I haven't decided about that one, yet).

If you wanted to replace a manager of your own business would you begin by thinking "I wonder who I could find that doesn't have the drive or energy he or she once had and would be willing to run my business for a few years?" or maybe "Who could I get to run my business that wouldn't cost me an arm and a leg?"

Well, too many ministries think just like that. And it is partly our fault. Who have we trained to take those positions? What have we done to stimulate a desire in the hearts of young business professionals to enter non-profit work? What's wrong with taking "Half-Time" (by Bob Buford)and making it "Full-Time"?

Don't expect to get something more until you change the way you play the game. I think it's time.

It's not what you know but who you know!

2009-07-12T07:28:00.000-07:00

We've all heard the saying, "It's not what you know but who you know!" Usually it's quoted as a negative thing, uttered when a someone else gets the job we we're after. "Well, they just got the job because they knew the boss's son from his first marriage that went to school with his sister," or some such excuse. Hey, I've been there and know first hand it happens.

Instead of complaining about it, make use of it.The thing most job hunters don't understand that those hiring usually do is that a known quantity is usually a better risk than one that is not. If someone I know and trust tells me Joe is capable of doing the job and will not be a difficult employee, Joe will automatically move to the top of the short list. It doesn't mean Joe will get the job, but the person who beats him out will have to be impressive. Especially in this work environment where former employers are afraid to tell the details of employment for fear of litigation, it is difficult to get really accurate reads on an applicant's work and personal history.

This make personal contacts all the more valuable. Everything can be improved through good relationships. Marriages work better, friends are more loyal, children have more respect for parental decisions - and jobs are easier to find. There is a reason networking is a critical part of every good business. It is about relationships.

Now, if that is true, why not use every relationship tool possible to enhance your chances to get a job? Use Facebook, Twitter, MySpace and other media options not just to tell everyone where you went last night, but tell them something about yourself. Rather than a Facebook post that says, "I went to the show last night to see 'Gran Torino' Wow! What a movie!" How about saying, "I went to see 'Gran Torino' last night and was so impressed with the social implications it had. I really identified with the situation and the impact it could have on community."

The difference in these two? One tells a potential employer what you did. One tells something about who your are. Employers are often searching these sites for the names of their applicants to get that inside picture they would like to have of their employees. Many, I repeat many, have lost opportunities because of what is written on social media sites. Use them, but use them to your advantage!

To tweet or not to tweet?

2009-07-11T17:45:00.001-07:00

I am still a little surprised with the negative reactions I have encountered to "Twitter media". Even some younger executives have expressed their objections. As a non-technical old guy, let me make some comments about the objections I tend to hear:

1) "I don't get anything out of those 140 character conversations."

I get the greatest good not from the conversations, but the posts that are passed on by the intelligient men and women who put themselves out there for others to gain from.

2) "I don't have time for that. My day is full enough as it is."

Hey, we all have full days. But when you realize that the time you spend twittering is not necessarily frivolous, but can be profitable as well, you may reconsider. (Remember that "profitable" does not always mean converts directly to your bottom line. It may mean you are personally or professionaly enriched by the time you spent.)

3) "I don't get it. Let someone else do that stuff."

I was selling computers to attorneys in the early '80s that said the same thing about PCs. They would buy one and put it on their desk just so clients would think they were technologically on the ball, but they didn't want anything to do with learning how it could be used. Think they know now?

Come on now, let's get passed the objections! I'll tweet you later.

Don't know what you don't know?

2009-07-10T15:46:00.000-07:00

"They don't know what they don't know." It almost sounds redundant, doesn't it? What it really means is how do you know you need something you've never heard of? It can be disasterous for a young business and a young non-profit. It's one thing to be aware you have needs that must be addressed, but it's something else entirely to be traveling along without the slightest indication you should be taking care of something.

"Knowledge doesn't mean you can lead, but you can't lead without knowledge." - John Maxwell. Not only can you not lead, but you can't even follow well without knowing what to do and how to do it. The best advice I can give a new non-profit organiztion is to seek the wisdom of those who know. Find advisors that can give input from experience. Have legal questions? A lawyer is great, but talk to one who has non-profit experience. Don't seek guidance from those who have never worn the shoes you're planning to walk in.

"Descretion will protect you and understanding will guard you." Proverbs 2:11. Do your best to understand your business/non-profit by seeking the wisdom of Christians who can share their own walk with you.

Communication is the Key

2009-07-08T06:42:00.000-07:00

Board members have the opportunity to voice their thoughts and help build a wise consesus of leadership (Board only speaks with ONE voice). Executive Directors have the responsibility of taking board guidance and developing it into a vialble business, managing that business, and fulfilling the mission.

To make this work, one of the most critical pieces to any board/director/employee relationship is often overlooked -communication. The director of a non-profit will spend a great deal of time listening to and guiding the board's thoughts, doing the same with employees, volunteers, and donors, then accurately communicating those thoughts to the other groups.

Remember that the board is responsible for governing the organization and the director is charged with managing it. However, the really successful non-profits have a director with the ability to communicate the thoughts, perceptions, ideas and issues of others - especially those of the board, leadership team, & staff. The key to any successful relationship begins with communication. It can also end there.

What's wrong with our organization?

2009-07-07T15:29:00.001-07:00

In my last twenty years of dealing with non-profit organizations, I have to say that one of the primary issues for most inaffective organizations is a poor board. This is not always the board's fault. Many board members are recruited because they have a "passion" for the mission. Which often times really means "you agree with me and will let me continue to do it my way". I even heard an Executive Director say recently, "I'll just fire the board if they don't agree!"

There in lies another of the problems: It still surpises me how many do not understand the way a non-profit organization is designed to work. Comments from employees that indicate displeasure and a "change or else" attitude directed at the board, Executive Directors who challenge the board regularily regarding board decisions, and board members who consider their personal opinion worthy of "speaking on behalf of the board...". Whether the opinions exressed are right or wrong is not the issue. What is at issue is an understanding of how a non-profit corporation functions.

Over the next several posts, I will try to take a few of the issues organizations deal with and clarify the root of the problem. I will also offer suggestions to take the organization to a better place. Feel free to let me know the issues your organization may be struggling with.

Social Media

2009-07-03T07:10:00.000-07:00

I just read a blog post that says non-profits are better at social media than most businesses. I tend to disagree. Due to their social awareness they should be, but I find they tend to be held back by a lack of technical knowledge and/or interest. Like everyone else, it's just something else they don't understand and don't have time to learn. Non-profits usually don't have the funds to hire an IT guy and even with a volunteer there is skepticism about turning everything over to someone who may not be around next week.

The bottom line is we had better get on board. Two things are certain: 1) Social Media is not going away, and 2) It is going to change. If you are waiting on it to become more common-place (i.e. understandable) you will always be too late. I suggest non-profits invest in social media because they can't afford not to. At the very least look to young employees who have an understanding of the tools and work with them to determine how to use those tools to the benefit of the organization.