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7 tips to augment the performance of your not-for-profit

Rob Butterworth

April 04, 2008

When you read about innovation and management practices, most of the news and business press center on for-profit corporations. Yet, non-profits make up a huge segment of our economy. According to the Urban Institute's National Center for Charitable Statistics, just the public charity sector alone accounts for over $1 trillion in aggregate revenue. There are close to one million public nonprofits and private foundations registered with the Internal Revenue Service.

Despite these impressive statistics, many nonprofits struggle to effectively manage. This article shares 7 insights from the trenches of nonprofit management.

Leverage technology prudently

Recent developments in Internet and phone technology are making it increasingly easy for nonprofit organizations to save on travel expenses and increase collaboration. Desktop sharing applications are becoming more functional and allow nonprofit managers to instantly create virtual meetings across geographically dispersed teams. Also free conference calling companies such as Rondee.com are helping nonprofit organizations to reduce their telephone expenses and create better team innerworkings as well as improve coordination with other nonprofit organizations.

Keep focused

The most effectively managed nonprofit organizations are ones that stay tightly focused on their mission and do not allow their staff and leadership to get sidetracked by peripheral goals. Most nonprofit organizations operate under substantial resource constraints. Tackling three goals with 100% effort will generally yield superior results compared to tackling six goals at half effort.

Use data based decision-making

One of the most significant trends in the last several years affecting nonprofit organizations has been the escalating reliance on evidence based decision-making. Nonprofit practitioners can apply the same practices to determine what works and what does not work. Increasingly, the hurdle for quality decision-making is rising and therefore reliance on conjecture and theory is being systematically replaced by empirical evidence to justify decisions.

Grow your network

The most successful nonprofit practitioners create networks of supporters who share their philosophy and goals. While the word "networking" frequently gets a bad rap, the fact is that these networks can provide more than just financial support. Crucially, associations also provide the emotional support which is so critical to maintaining energy amongst leaders as well as volunteers.

Learn how to lobby

Many nonprofit organizations believe that lobbying is the province of for-profit companies. While that may be the reality in some situations, many successful nonprofit organizations have developed a real advantage through succeeding in the art of lobbying. Whether to secure desired changes in public policy or the backing of public leaders, lobbying can be an effective means for nonprofit organizations to accelerate traction.

Keep fundraising focused

Most of the nonprofit organizations that have grown dramatically in the past few decades have done so by concentrating their development on a single type of funding source. The strategy usually employed requires developing messaging and programs tailored to the needs of their primary funding channel. Not only is this practice generally more effective than the shotgun method, it enables deeper relationships between the funding channel and the nonprofit.

Multiply through matching

Multiply your fund raising dollars through matching gifts. Most people know that some employers will match gifts to qualified nonprofit organizations. Less well known is the multiplier effect of getting promises from givers to match the donations of smaller contributers.

The good news is that these methods are not costly. Whether its leveraging free teleconference solutions or starting to lobby, nonprofit organizations can ratchet up their performance through these seven tips.

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