Non-Profit Shouldn't Mean "No Money" - 15 Ways Non Profits Can Create Economic Sustainability

These aren’t easy times for non-profits. External pressures from the economy are compromising the philanthropic sector and most non-profit leaders report that there just isn’t as much money to go around anymore.

Like the small businesses that are weathering this economy, non-profits are saying yes to projects but not necessarily yes to more staff. Small business owners and non-profit leaders alike are rightly nervous about adding more fixed costs, but one essential difference between non-profits and small businesses is that even in good economic times, most non-profits revenue sources are inherently break-even, or worse, losses. How many small businesses could stay in business by providing a product or service, which routinely cost them more than they were paid to deliver? Not many, yet this hand to mouth existence is the norm for many non-profits. No wonder their leaders are also dealing with the internal pressures–such as burn out and high turnover–that come with trying to do too much with too little, especially when community needs are higher than ever.

Being funder/donor driven means most non-profits have historically had a lack of agency over what they could say no to. It’s hard to stop doing things with expenses to worry about, even when there’s a huge amount of work involved in getting a donation or grant. One Executive Director I know wryly notes that there is often an inverse relationship between the size of an award and the amount of staff time that has to go into getting it. But the old screen of: “Is it on mission?” “Is it funded?” doesn’t work anymore. Just because a project has a funder attached to it, doesn’t mean it’s sustainable.

Not surprisingly, there’s going to be a dearth of non-profit leaders in the next 5-10 years. It’s tough out there, but the good news is that times like these present opportunities for non-profits to rethink how they do business.Whether funding is restricted versus unrestricted isn’t really the question or the issue anymore – now it’s about working to get beyond break-even and aiming for modest profitability.

Granted, it’s hard to report a cash reserve to funders without them saying, “you obviously don’t need our money”, but struggling to get by no longer works – there needs to be change in how business is thought about and conducted in this sector so it can thrive. This will happen when non-profits start evaluating the opportunity cost of every project and say “no thank you” when it’s appropriate. What does this change look like? Here’s some ideas to take back to your organization: 

1. Understand that foundations are trying harder than ever to spread the wealth.
   Mobilize around this and decide to agree not to take on any projects that will pay less than the time you have to put into securing them. 
2. Realize that profit is not a dirty word.
   Think about the language you’re using. Are you really about no profit? Is that inherently sustainable? What alternative terms would be more powerful and accurate for you and your funders? 
3. Get better at saying no, by not making decisions alone.
   Listen to your staff; not just through financial metrics but also in how the delivery of service is going. 
4. Discard the notion that saying no means resources will go away, (but be ready if it does).
   Foundations might have been pulling you along because you’ve been in their portfolio. Re-shifting is happening with everyone right now. 
5. Look at the bad habits/ assumptions you need to eradicate going forward.
   Don’t be afraid to sit down and talk about what’s not working. 
6. Abolish financial illiteracy.
   There are four or five things about a non-profit balance sheet that you should know. CompassPoint has excellent fiscal literacy classes for non-profits. 
7. Embed economics into your strategic plan.
   What kind of stuff did you say yes to this year that hasn’t taken your organization where you want it to go financially 
8. Build clear revenue goals into your operational plan.
   If you haven’t hit your revenue goals for May, re-evaluate your budget and plan for the rest of the year. 
9. Create 3 budgets – optimal, maintenance and contingency.
   Use values-based decision-making in your approach to budget cuts. If you don’t have the cash it takes to do the work, and be modestly profitable, it’s not sustainable.
10. Stop thinking of your organization as a pass-through for other people’s resources.
    If grants require you to be break even, round things out with donations or earned income. A hybrid business model is key.
11. Make financial surplus a line item in the budget.
    Talk to funders transparently about wanting to have a surplus to be sustainable. Economic sustainability means you can be around for longer to do the work. 
12. Work towards modest profitability.
    Aim for at least 3 months reserve in the ban 
13. Understand which funders see you as being core to their strategy.
    Deeply understand how they think about their impact and whether you are central to that impact in their eyes. 
14. Stop writing grant proposals, start interviewing clients.
    Share your client’s stories with funders. It’s not about your organization and what it can do; it’s about the impact you’re having. 
15. Be clear about your purpose and be passionate about it.
    People naturally support leaders. If you’re engaged, excited and not burnt out, or worse yet, bored, they are more likely to support the cause you’re stomping for.

In good times or bad, social change and economics shouldn’t be at odds in this sector – they’re intrinsically connected and critical to its success and sustainability. 

Natalie Zensius is a marketing communications strategist with experience in both the for-profit and non-profit sectors. Learn more about Natalie at http:www.linkedin.com/in/nzensius.

Management Lessons From Healthcare

Image: Ezra Klein

I just finished reading Letting Go, the latest treatise by surgeon-cum-writer Atul Gawande, which explores the ambiguities of end-of-life care. There is a lot to be learned from the study of healthcare. It helps us gain “insider” information that can not only empower us as healthcare consumers, it can also be instructive as we think about our own work.

As Drs. Leonard Berry and Kent Seltman point out in their book, healthcare customers are unique in that they are usually sick or injured and under considerable stress; medicine requires them to bare themselves–emotionally and physically–to doctors and caregivers to a far greater degree than any other industry. Healthcare providers must continually perform well together in the face of vulnerable customers, known human error, system failure and vast amounts of technology to provide the intangible service called health and well-being. It goes without saying then, that there's much to be gleaned from the individuals that serve us in this unique–and often life altering–way.

More than 70% of Americans now earn a living in the service sector, which encompasses everything from health, law, telecommunications and entertainment to retail, finance and beyond. The chances are high that we will all work in a service job at some point in our career. And the notion of service has applications for all industries. Management guru Tom Peters believes the concept of "servant-leadership" is critical for success no matter what business you're in. At its core, service is inherently about performance so medicine is a great place for management to look for insight about how to improve service for both their internal and external customers.

Gawande has found a theme in trying to understand human failure and imperfection and studying how individuals, teamwork and process can be improved against a backdrop of dizzying technology and massive amounts of information. What he also shows us along the way is that excellence isn’t innate; it is an ingrained practice borne out of learning from mistakes.

In his first book, Complications, Gawande recognizes that medicine, even with all of the latest technology, is imperfect and asks how we become even remotely competent at something that’s inherently flawed. What he discovers time and time again, is a powerful truth applicable to all of our jobs: excellence in anything is never just about the science; and even with “perfect” science, or well-established process, or advanced levels of education and experience, fallibility is a constant. Excellence in service, whether it's for our customers, colleagues or business partners is about accepting failure when it happens and moving on from it quickly to improve. In Letting Go he teaches us that it’s also about artistry–the human touch, collaboration, generous acts, personal courage and core values that guide decision-making and inspire extra effort.

He is arguably one of the best healthcare essayists for the medical layperson to read.

Natalie Zensius is a marketing communications strategist with experience in both the for-profit and non-profit sectors. Learn more about Natalie at http:www.linkedin.com/in/nzensius. 

How To Impress Me In An Interview

Image: Alex France

I've been reviewing resumes and conducting interviews for graphic designers and marketers lately. Unlike most of my colleagues, I enjoy doing it; I honestly love to learn about people and talk about the things I am passionate about. (One of my top five career choices as a kid was to be a talk-show host. To this day, my friends will sic me on people when they want to find out something about them – they claim I ask the most penetrating questions.)

It can be a dreary process though. It never ceases to amaze me why some people do not follow simple instructions regarding submitting their materials or cover letter. Haven't they realized that this is the first part of the evaluation process?

As communications professionals, we're in the daily business of delighting people so it goes without saying that our public personas should attempt to do just that. Candidates don't cut it as marketing communications professionals in today's business world without active accounts on LinkedIn and Twitter. Having a blog or website has become increasingly important too, and will immediately elevate applicants to the top of the  candidate pile. It shows me who is serious about their craft and is constantly working to become a better writer and or designer. Striving for self-improvement and a higher quality work-product is a critical component of successful marketing communications. Creating and maintaining that robust online presence is key– if candidates can't do it well for themselves, why would I think that they could do it well for me?

There are many people who are good at what they do and have a passion for communications outside of the daily grind; a passion they bring to their work. To get an interview with me candidates have to differentiate themselves and delight me so that I get a sense that working with them would be enjoyable; we would be sharing a common interest, ideas and enthusiasm, etc.

There's always a few that get through to the interview. For them, if they are looking me up on Google, and have found this page, I offer up a few pointers on the things that will make me feel all fuzzy inside when I am doing an interview:

Doing your homework
You should know about me and the organization I am representing, especially if we've already talked on the phone. Use search engines to find out something about me that could make for interesting conversation. It shows me that you care and that you've got the basic internet skills to do some simple background research. A good rule of thumb is to try and know more about me than I do about you.

Bringing samples, printed and digital, even when I didn't ask for them
I want to see what kind of work you've been doing lately, both in the online and offline space. I'm looking for fresh work that reflects the changing world of marketing communications. If it's print, it should be crisp and clean and well-executed. If you can't produce anything newer than five years ago and it was a college project to boot, know that I'll be rethinking whether you are a fit for this project.

Asking me questions throughout the interview
Don't wait until the end of our conversation to ask me questions. You should be interviewing me as much as I am you to find out if we are a mutual fit. Some of the best people I've hired have hit me with questions during an interview that I had to stop and think about before answering. I always want this kind of person on my team as it indicates to me that they are a thinker and will keep me on my toes.

Not being afraid to say that you can't answer my questions with the information you've been given (but telling me what information you would need.)
I don’t expect you to know exactly how to solve the problems I'm throwing out to you after a few short minutes together (and I’ll be sure to throw in at least one real zinger to see how you handle it.) Indeed it's often a good idea to show me that you know how to take stock of a situation and figure out the best way to get what you'll need to make an informed decision later. Knowing how to push back is sometimes more important than having the right answer immediately.

Having pursuits to talk about that on the face of it, have nothing to do with the job
This is always a great indication of someone's initiative. To make the effort to get involved in something without being told to is awesome. In particular, if you're doing something communications related this is a great sign. Examples include: writing your own blog, being involved in volunteer opportunities, or writing and getting published on a subject that interest you. If you can bring in something to your interview–perhaps it's an example of something you've written or a website you've built–that's excellent.

Demonstrating confidence and/or poise without arrogance
This is sometimes a fine line but one that is crucial to being a great communicator. You've got to believe in yourself enough to be respected by others but also know your weaknesses and when to ask for help. You don't have to do a full on salesman's routine to sell yourself but if you don't believe in your own abilities then neither will I. 

Being articulate
Thankfully the stereotype of the geek with no social or communication skills is less common than it used to be. As more people enter the profession so do the variety of individuals you come across. However, those who can clearly articulate ideas and thoughts are going to be far more successful in communications than those who prefer the company of computers to people

Smiling!
Need I say more? Work can often be stressful and demanding. It's important during those times to have a sense of humor and a positive attitude. If I can see you smiling and appearing somewhat relaxed during an interview–a situation I know is stressful for you– then it gives me an idea of how you will perform under the gun once I've hired you.

Natalie Zensius is a marketing communications strategist with experience in both the for-profit and non-profit sectors. Learn more about Natalie at http:www.linkedin.com/in/nzensius.

Guidelines For Writing Non-Profit Board Of Director Bios

Written well, bios make a targeted, persuasive argument about what to think about someone without being unsupported self-praise or too salesy. Sometimes I write bios from scratch for people. When that's the case, I keep the finished bio to one page or less and write the biography in the third person. Mostly though I have to take disparate bios and rework them to create consistency in length, tone and voice.

In either case, I always ask people to make sure their bios contain these essential elements:
 
Description of their business in brief.
Not only do website visitors want to know what people do, they also want to know who people have worked with. I ask them to include a sentence or two about their business niche (or niches) as well as the types of clients they serve. Sometimes a modified version of their 30-second elevator pitch works perfectly.
 
A list of any awards they have received.
 
Names of the organizations, clubs, or associations to which they belong.
 
Any professional certifications and designations they hold.
I have them make sure they write out their names in full, rather than use abbreviations. Not everyone might know what an acronym stands for and in a different discipline, it might represent something else. If they no longer hold a particular designation, but it has played a major role in who they are and what they do, I make a reference to it. I don't include abbreviations of college degrees, like MBAs as it looks unprofessional. The only exception to this would be for a Ph.D. designation.
 
Places they've been published.
Self-published or not, their works add to their level of professionalism and credibility. If they've written any articles, books, e-courses or e-books I showcase them.
 
Media mentions.
Have they been a guest on talk radio or television? Were they or their business featured or even mentioned in a newspaper article? If so, I include it. Again, these types of "mentions" add to their credibility and presence.
 
A sentence or two at the end about their personal passions and their relationship to the organization.
This may or not make it into the final bio, depending on the organization, but it's always useful to have on hand.
 
Two headshots.
One professional, and one casual (which should still be a headshot and be a good picture). I ask them to make sure the headshots are as hi-res as possible.

Am I missing anything?