10 Things I’ve Learned Working With Nonprofits

*Originally published by the Post Bulletin in the Pulse Magazine.

1)     Running a nonprofit is stressful. Most of the time the need is greater than the organization’s capacity to serve. Further, building that capacity is limited less by commitment to the mission and more by effectiveness at raising funds.

2)     That said, becoming a nonprofit should not be a default choice for a mission-driven organization. All organizations require revenue, generated either through sales or fundraising. There are mission-driven organizations that would be better off as a social enterprise than a nonprofit. Learning which model is best before launching is vital to the success of the organization.

3)    If you do decide to launch a nonprofit, remember that it needs to run just like any other  business to survive. The healthiest nonprofits have a diversified income base that includes donations, grant income, and revenue they generate from sales or membership fees. Pull out one of those parts from the base and it creates a danger of collapse.

4)    The best nonprofits make sure to consult with experts, especially when it comes to financial and legal matters. While it is natural to leverage board talent in these areas, make sure they are willing to donate their time, otherwise it is better to seek outside assistance.

5)     The great news is that we have some incredible talent running our local nonprofits. We need to pay them what they are worth. Of course there is a balance, as the organization needs to be a good steward of their finances, but let’s not treat them as less worthy than their for-profit counterparts. Reward the talent.

6)    Next, be curious. Each person brings their own experience to the table (both as a board member and nonprofit leader) and often what they have seen in one organization becomes their standard for the next. Yet, that experience may not be the best option in the new environment. Be open to new ways of operating.

7)    Remember that boards need education. When someone agrees to be on a board, they can only operate at full capacity if they know their roles and responsibilities, how the governance of the board operates, and the role of the board versus the role of the staff. Then they need to be well informed in order to be an effective ambassador for the organization.

8)     Passion can create strong voices. There is good and bad in that, since we want passionate people in leadership roles, yet sometimes it can be hard to speak up when there are already several strong voices at the table. Be mindful as a board to hear all voices.

9)     The board’s role is to support and advise the person serving as leader of the nonprofit. Support does not necessarily mean affirming or second guessing their actions. Support means providing them with the resources and then advising them based on your knowledge and experience. That is why you are asked to be on the board.

10) There is strength in community. Locally, the Rochester Nonprofit Consortium works hard to create that community. If you are a nonprofit leader of any kind, consider joining the consortium and gathering with your peers.