KISS

Nearly 30 years ago, I was a high school physics instructor teaching my students how to convert a 1985 Ford Escort into an electric race car. It was an incredible, life-changing project for both me and my students (and the subject of a wonderfully written book, Electric Dreams).

One afternoon I was helping them think through a problem: how to cover a 4-inch diameter vent within the wheel well. The challenge was to cover it so that water from the roadway couldn’t come in but air could exit. My students thought that installing an oversized plastic flap seemed like the best solution. I agreed. 

My fellow instructor Harold Miller – the veteran auto shop teacher – caught the end of the conversation. He then went to his supply room and returned a moment later carrying an empty plastic ½-gallon milk jug and a pair of scissors. 

“Here y’all go,” Harold cheerily said as he put the milk jug and scissors on the workbench. “You can make your flap out of this.” 

“An old milk jug?” I asked with a tone that clearly indicated that I thought that a milk jug was too pedestrian of a plastic source for a high-tech electric car. 

“You need to kiss, Mr. Ryan,” Harold responded. My students and I looked at each other with quizzical looks. 

“Kiss?” I responded. 

Harold smiled broadly. “Yes, KISS. As in Keep It Simple Stupid!” 

The lightness of the moment eroded my protest and the students set about with the task. 

The milk jug flap worked like a charm and was never replaced. 

That was my first introduction to the wonderful wisdom of the KISS Principle. Since that time I’ve been reminded hundreds — if not thousands — of times in my consulting work how keeping it simple with strategic planning is often the best approach. 

Simple strategic plans are easier to communicate. Simple processes are easier to follow. Simple goals are easier to understand. And, as I wrote about in a recent blog, keeping it simple will help you and your team take action. 

All of that makes sense. But isn’t simplicity also a sign of simple-mindedness? That’s what I thought until I read Steve Jobs quoting Leonardo da Vinci: “Simplicity is the ultimate sophistication.”

So, if simplicity is good enough for geniuses like Jobs and da Vinci, well, I can get behind that. 

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At Mission Met, simplicity is a cornerstone of all of our programs/services. Specifically, our START strategic planning course provides organizations with a practical strategic plan that they can successfully achieve. Learn more about how START can transform your organization.

Choosing a Nonprofit CRM

When you consider the most valuable aspect of your nonprofit organization, what comes to mind? You probably immediately think about the organization's big-picture objectives and mission statements, what they mean to you personally, and how achieving them can positively impact others in various ways.

Of course, you know that to achieve these objectives, you are heavily reliant on all of those supporting your nonprofit, your "constituents" in which you place your trust, confidence, and respect to help you build and sustain your organization's forward momentum. Depending on your organization, these constituents can be made up of donors, funders, volunteers, board members, staff, and other organizations or individuals who help support your nonprofit's financial and operational needs.

But establishing and maintaining these critical relationships requires keen attention and follow-through, both of which are easy to lose sight of as your nonprofit grows, as does your list of active constituents. This is where the value of CRM comes into play.

What is A CRM SysteM?

The acronym CRM can mean different things for nonprofit and for-profit organizations. While CRM stands for Customer Relationship Manager in traditional business spaces, the term refers to Constituent Relationship Management in nonprofit organizations.

A Constituent Relationship Management system or solution is a tool that nonprofit organizations can use to track, monitor, and improve engagements with all their relevant contacts. This is achieved by providing an on-premise or cloud-based database solution for collecting and storing your constituent information, streamlining targeted and personalized communications, optimizing fundraising capabilities, and automating various workflows and processes.

Should Your Nonprofit Invest in A CRM?

Whether or not you choose to invest in a CRM tool is entirely up to you, the size of your nonprofit, and the organization's goals when it comes to scale and sustainability. However, for many nonprofits, CRMs have become less of an option and more necessary, especially when improving engagement, maximizing fundraising efforts, and improving organizational efficiencies.

Maintaining relevant and impactful relationships should be one of your primary goals when growing your nonprofit. While keeping yourself organized through email clients, social media platforms, and digital calendars might get you to a certain point with this initiative, new opportunities will quickly dissolve without using the right tools and systems.

CRM solutions allow you to manage all of your constituent relationships in one unified platform, eliminating manual and repetitive processes while being able to focus on establishing closer relationships with supporters.

How to Choose the Right Nonprofit CRM

If you've been considering investing in a CRM platform for your nonprofit, it's important to note that there is no shortage of options to choose from that range in all types of sizes, feature sets, and price points.

Companies like Salesforce, DotDrives, Bloomerang, Neon CRM, and Little Green Light are only a few of the many CRM companies with a strong reputation for helping nonprofits improve their donor management and constituent engagement strategies. But while these and other similar solutions may look like they're the best option for your organization, there are some important considerations you should make when choosing the right CRM for your nonprofit.

Profile Tracking

Most CRM platforms will have some type of relationship-tracking functionality. However, you'll want to ensure that the system you choose allows you to create custom profiles and fields relevant to your constituent types. While having the ability to store basic information on board members, donors, funders, clients, etc., is necessary, the platform you choose should be flexible enough to be customized to your nonprofit's unique relationship profiles.

Donation Management

An invaluable feature of certain nonprofit CRM systems is the ability to simplify the donor management process. This includes proactive outreach campaigns, auto-generated donation tax receipts, document generation and storage capabilities, and other relevant features useful for managing close relationships with current and potential donors or funders.

Event Planning and Coordination

Certain CRM platforms have given organizations the ability to plan and execute fundraising events and other critical nonprofit functions. Having all of your constituents managed in one place is more efficient when sending invitations, managing RSVPs, and scheduling follow-ups.

Reporting and Analytics

Part of improving your strategic planning process has to do with extracting relevant data from your relationship history and creating actionable insights that can help you make informed decisions for your nonprofit. You want to find a CRM platform that can provide you with these deep insights through transparent donor reports, donation trends, and transaction and payment tracking.

Simplicity

An often overlooked feature is how simple the CRM is to use. If you get a souped-up platform at your fingertips but you’re only using 5% of the functionality, you and your team are less likely to actually use it. Make sure your CRM makes often-used functions simple and straightforward to use and get value from.

Automation

One great feature of many CRM systems is the ability to automate many daily workflows and processes through useful native integrations. Every CRM differs, so find the one that streamlines as many third-party services and solutions as possible, giving you the ability to use one source of truth when driving communications with your constituents.

Affordability

Of course, we couldn't talk about how to find the CRM platform that's right for you without talking about cost. As with all tools and technology, CRM solutions can vary considerably in affordability; find one that offers you a sustainable pricing model.

Pricing models for CRM platforms can be formatted and tiered in several ways, including by user count, the number of emails sent per month, required database size, or the level of integration you're needing. Again, it's vital that you consider your organization's needs now and in the future and choose a platform that you're able to get the highest return on investment.

Setting Yourself Up For Success

While finding the right CRM tool is important, sourcing the right onboarding partners that can help you get the most value out of it is vital.

CRM platforms can be an invaluable tool for any nonprofit, especially as you begin to grow your number of constituents and focus on creating more automation in your day-to-day routine. However, remember that CRM tools are simply that — "tools." In order to get the most value from these solutions, invest the necessary time and effort into adequate training and customization.

Finding the right CRM solution for your nonprofit, and teaming up with the right partners who can help you extract the most value out of the solution, will maximize constituent relationships and create a sustainable path for your nonprofit's success.

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We just launched our online strategic planning course called START! START provides organizations with a practical strategic plan that they can successfully achieve. Learn more about how START can transform your organization.

Simplicity Helps Your Team Take Action

One of my favorite articles that I’ve shared with our customers over the years is Dan and Chip Heath’s piece in Fast Company called “Analysis of Paralysis.” 

The two basic points of their article are:

1. Too many choices can paralyze you, and

2. Simplicity helps you take action.

Although this seems intuitive, the Heaths back it up with some interesting research:

(Researchers) gave doctors the medical history of a 67-year-old man who’d been suffering chronic hip pain from osteoarthritis. He’d been given drugs to treat his pain, but they had been ineffective, so there was only one viable option: hip-replacement surgery, which would involve a long and painful recovery. Then a final check with the pharmacy uncovered one medication that hadn’t been tried. Would the doctors like to give the drug a shot? 47% of doctors chose to try the medication in a final attempt to keep the patient from going under the knife.

Another group of doctors saw the same facts, except they were told that the pharmacy had discovered two medications that hadn’t been tried. If you were the patient with the bum hip, you’d be thrilled -- two nonsurgical options are better than one. But when the doctors were presented with two nonsurgical options, only 28% chose to try either one.

What happened here is decision paralysis. More options, even good ones, can freeze us, leading us to stick with the ‘default’ plan, which in this case was slicing open someone’s hip. This clearly is not rational behavior, but it is human behavior. Similar tests with different groups have revealed consistent results.

Over the years at Mission Met, we’ve seen these same types of results as it relates to strategic planning. Plans that are long and complex tend to get shelved. Why? Because, just like the doctors, the people responsible for executing the plans are super busy. For them, it’s much easier to blow off a complex plan than trying to sit down and work through all of the plan’s details and decisions.

The lesson? Simplicity will help your team take action.

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At Mission Met, simplicity is a cornerstone of all of our programs/services. Specifically, our START strategic planning course provides organizations with a practical strategic plan that they can successfully achieve. Learn more about how START can transform your organization.

How To Address Challenging Nonprofit Board Members

Have you ever had the feeling that no matter how hard you try, it’s a mathematical impossibility to get all of your board members to agree on a specific strategy or direction? If you answered "yes," you're in good company.

Nonprofit boards are almost always made up of incredibly passionate and driven individuals who want to see the organization succeed. But with this passion often comes tension in the form of different viewpoints regarding how the organization can and should meet its mission and goals.

Applied in the right setting, healthy amounts of tension between board members or yourself shouldn't immediately raise cause for concern. After all, before a train can get rolling, there needs to be a certain level of friction between the tracks and the wheels. However, what do you do when it appears that one of your board members is becoming more challenging? More importantly, how do you handle board members whose differing opinions have turned disruptive and are starting to distract from the organization's purpose?

Below we'll discuss five areas to explore when proactively addressing a challenging board member and how to encourage a passionate but productive nonprofit board.

Establish Meeting Agendas

Even before you've identified that you have a difficult issue to navigate with one of your board members, establishing agendas before every board meeting is a great way to avoid unproductive conversation. If there is an underlying tension between one or two board members and you allow too much time for "open forum" debates, your board meetings can quickly turn from strategic planning sessions into the airing of grievances.

Rather than applying a "wing it" approach to board discussion, come prepared with a list of clear outcomes you want to achieve in the meeting and agenda items to discuss, who will be leading each portion of the discussion, and the times allotted between each topic. Suppose you already know that a particular board member is prone to lead conversations into unproductive territory. In that case, a well-constructed meeting agenda that board members have reviewed and agreed to ahead of time will allow you to limit anyone going off-topic while avoiding unnecessary tension.

Review Board Requirements for All Members

Taking the time to carefully construct your nonprofit bylaws is a critical step to take to help streamline conflict resolution within your board as the need arises.

Your nonprofit bylaws play a vital part in acquiring and retaining the right individuals that will make your organization a success. Review guidelines and standards regularly as the nonprofit begins to grow. Another way to help facilitate this is by creating one-page summaries of board roles (similar to a job description), that provide a clear overview of the board member’s expectations and any commitments that have been made to the organization.

If a particular board member starts to deviate from the principles set out in the bylaws, or board meetings start to feel disjointed, reviewing requirements for all members is a great way to get the board back on track and remind everyone of the unified vision they should maintain as the organization progresses. Many times these subtle reminders are enough to avoid larger disruptions from your board members down the road.

Isolate Challenging Members When Necessary

Sometimes sticking to meeting agendas and reminding the board as a collective of your nonprofit's bylaws may not be enough to bring certain board members back into proper alignment with your organization's needs. When this occurs, it's appropriate to take more direct action by confronting the individual(s) directly.

The board chair and possibly the executive committee should address the handling of board members that are particularly challenging. This should be done tactfully and in a way that avoids embarrassment while quickly addressing the issues at hand. It's essential to be specific about certain types of behavior or actions that you feel are challenging the organization's forward momentum with recommendations of how they can be resolved. Regardless of the resolutions necessary to move forward, it's essential that the board member understands these criticisms do not come from personal viewpoints or perspectives. Rather, realignment is necessary for the betterment of the nonprofit.

Identify When It's Time To Plan An Exit

Unfortunately, try as you may to do everything in your power to keep all of your board members on the same page, at times, it's in the best interest of the nonprofit to plan an exit for a board member who is no longer a good fit. This can be an incredibly challenging decision but one you'll need to carefully consider if all other actions to resolve ongoing challenges with a board member have been unsuccessful.

Depending on how your nonprofit is constructed, taking steps to plan an exit of a board member could contain certain organizational hurdles. Your nonprofit bylaws should be a go-to source for how to deal with all of this. Properly documented and formatted bylaws should state how to bring on a board member, how to orient them, what their roles and responsibilities are, and ultimately, how to offboard them if the need arises. In most cases, however, the best practice is to be open and transparent about your need to form an exit and allow the board member an opportunity to leave the organization professionally and of their own free will.

Improve Your Board Member Recruitment Process

One of the most effective ways to limit challenges or disruptions between board members is to position the "right" individuals on your board. The board member recruitment process is key to getting the right board member in the first place. Ensure that the board member aligns with the organization's mission, vision, and values.

Board members are driven by their passion and the emotional investment they have in the organization. However, by taking the time to build the right board culture and encouraging a collaborative and productive level of engagement, you'll be sure to minimize potential conflicts that can disrupt the execution of short- and long-term goals.

In Summary

No nonprofit board is perfect. Interpersonal disagreements and conflicting viewpoints are often par for the course when working with individuals driven by their passion for the nonprofits they support. However, this doesn't mean you should allow certain attitudes or behavior to distract from the mission your organization is trying to achieve. By taking these five steps to course-correct your board as the need arises, you'll foster the right culture for your nonprofit and its leadership.

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We just launched our online strategic planning course called START! START provides organizations with a practical strategic plan that they can successfully achieve. Learn more about how START can transform your organization.

How I Lost a $500 Bet

Many years ago a good friend of mine, Merrilee, and I were talking about some of our struggles to hit our personal and professional goals. We had no problem setting goals. We simply had problems hitting them.

Perhaps that sounds familiar to you.

Well, during our conversation, we decided to create some real accountability to our goals. We created an experiment whereby we would have to pay the other person $500 if we didn't hit our monthly goals. And, on top of that, we would have to meet at a café and hand the $500 to the other person in twenty-dollar bills, one-by-one, just to feel the pain a little more.

It was quite an experience.

At the end of the very first month, Merrilee missed her goals. We met at a café, and she handed over the 25 $20 bills. I definitely felt a little weird about taking her money, but a deal was a deal and she clearly needed some accountability to her goals.

Merrilee never missed her goals for the rest of our experiment.

For me, I hit my goals month after month. The $500 deterrent — plus my basic competitiveness — was working for me.

Until the ninth month. I simply got careless and messed up, so off I went to the café where Merrilee happily took my $500. Or, depending on how you look at it, she took her $500 back.

We decided at that point to terminate the experiment. Even though it was successful in helping us hit our goals, neither one of us liked the negative accountability. Frankly, we simply wanted to hit our goals because we said we would, not because we'd lose $500.

Just like me, I bet that you’ve wondered how to best hit your goals. Thankfully, I’ve found many online tools that help me stay motivated and track progress. One app, Stickk, is something that I've successfully used. I’ve found Stickk’s combination of group accountability and reminders to be super helpful. 

At Mission Met, Ricky (my business partner) and I use our software, Causey, to keep us on track with our team’s goals. We meet monthly and quarterly to review progress and take advantage of the email reminders that the software provides. Both the software and our mutual accountability help us hit our goals. It’s a great system. 

What do you do to help you hit your goals? Or your team’s goals? Reply to this post and let us know.

5 Fundraising Mistakes You May Be Making

As the leader of a nonprofit organization, you have no shortage of responsibilities on your plate. Whether helping to structure your teams, establish new organizational processes, or continuously drive your nonprofit's vision, it can be challenging to stay on top of it all.

When juggling all of these responsibilities, the idea of fundraising can sometimes feel like a daunting task. Do you struggle when thinking about how to approach new donors? Are you finding that your fundraising efforts have become less effective over the years? If so, you're not alone.

Below we'll address some common fundraising mistakes that you may be making and progressive steps you can take to improve your nonprofit's financial position.

Not Fostering Relationships With Current Donors

One of the first questions you should ask yourself when assessing the effectiveness of your fundraising strategy is, "how is your relationship with your current donors?"

While this may seem like an easy question (I mean, they've already donated funds to the organization, so how bad could the relationship be – right?), you'd be surprised how often nonprofit organizations can get this wrong. Not unlike any other personal relationship, fostering the right relationships with your donors takes time, consideration, and good communication regardless of their contribution.

Your current donors are one of the most dependable sources of revenue your organization has. Fostering your long-term relationships helps ensure they continue to feel inspired about what the organization supports and the individual(s) leading it. Stay in touch with them often, help them feel involved where applicable, and of course, appreciate them regularly for any gifts or contributions they make. Doing so will go a long way in any of your future fundraising efforts.

Lack of a Documented Fund Development Plan and Process

Fundraising for your nonprofit isn't something that you can execute on a whim without careful planning. Effective fundraising is an art form and can take several years to master. However, by taking a systematic approach to organizing and documenting a fund development plan, you'll be much better positioned to bring in new donors and keep your revenue streams flowing.

One way you can start building a fund development plan "the right way" is by teaming up with a nonprofit strategic planning consultant. Planning consultants take the time to understand your unique needs as a nonprofit while giving you the tools, solutions, and organizational direction to help you succeed in your fundraising efforts. Not only do strategic planning consultants help you draft a long-term plan for success, but they also help you implement the suitable systems and procedures to help you get there.

Failing To Explain The "Why" In Your Organization

Having a clear vision for your nonprofit organization and being able to clearly articulate it to new donors is the winning combination when raising funds.

Maybe you've gone through a few rounds of fundraising and saw a measure of success. But, over time, you're finding it harder and harder to attract new donors. Why is this the case?

Well, while there could be several variables to consider in your outreach strategy, one thing you'll want to ensure is that you're always explaining the "why" behind your fundraising efforts. 

One way to do this is by ensuring that you have an effective strategic plan to justify your “why”. In fact, in research that we conducted, we showed that having and executing your strategic plan is strongly correlated to significantly increased fundraising success.

It can be easy to fall into the trap of asking for donations without fully explaining how and why the funds are needed. While the purpose and vision may be clear to you, donors need to know that the resources they're providing will be put to good use. One way this can be achieved is by creating a theme around fundraising initiatives. Before the launch of a campaign, ensure your funding goals are clearly documented and that they remain transparent to both current and future donor candidates.

Not Diversifying Your Funding Resources

While it can feel a bit intimidating to look for new funding sources, only relying on your current list of donors is a risky and ultimately unsustainable approach. To create a more viable fundraising strategy, it's vital that you start expanding your reach beyond your current network.

One way to start diversifying your funding resources is by investing more time into establishing and updating your social media presence. Social media sites like Linkedin and Facebook are great outlets to start expanding your network. But to start attracting qualified donors to your nonprofit organization, you must showcase the vital work you're doing. Spending time to build your social media presence and participate in more relevant events and conferences are some of the many steps you can take to start building credibility in your fundraising efforts.

Having No Specific Funding Asks

So this one happens more than you'd think...

You've taken the time to engage with a qualified potential donor. After several weeks of getting to know the individual, describing the organization's vision, and sharing relevant documentation, it's now time to make the ask. But rather than proposing a specific donation amount, you leave it to the donor to decide if and what they'd like to contribute.

Now, while this approach may be a discreet way to discuss (or not discuss) financial capacities between one donor to the next, more than not, this is an ineffective way to raise enough funds for your organization.

A better way to engage with potential donors is by having a specific ask in mind. But in order to know an appropriate amount to ask for, thoroughly researching your donors and finding those in alignment with your funding goals is essential. By approaching a potential donor with a specific ask in mind, it will actually showcase the confidence in your vision that many donors are looking for, and you'll be surprised at how much more successful you'll be.

Final Thoughts

If you've been struggling when finding the right approach for your fundraising efforts, understand you're not alone with this dilemma. However, by avoiding these common fundraising pitfalls and working with the right nonprofit strategic planning consultants to simplify your fundraising efforts, you'll be on your way to building long-term viability for your nonprofit organization.

Bottoms Up: The Strategic Planning Cocktail

Summer is upon us! The trees are green, the bugs are buzzing, and the sun is shining. And nothing goes better with summertime than a refreshing cocktail. With Covid-19 vaccines rolling out and the high hopes for a continued decrease in Covid’s impact, it seemed like the right time to blow the dust off of this blog article from several years ago to celebrate where we’ve come since last year. 

I enjoy reading a very irreverent and entertaining blog called Nonprofit AF. The author, Vu Le, is based in the Seattle area and blogs regularly about all things nonprofit. For example, his blog post from a while back tell you how to make nonprofit cocktails such as:

• The Executive Director

• The Founder

• Cultural Competency

• The Retreat

• The College Intern

• And, my favorite, the Strategic Plan. (See below)

If you end up making one of these cocktails, then be sure to share with us how it goes. Bottoms up!

Choosing a Nonprofit Strategic Planning Consultant: 7 Factors You Should Consider

If you and your nonprofit are considering creating a strategic plan, you may be wondering whether or not to bring on a strategic planning consultant. The role of a nonprofit strategic planning consultant is to help analyze your organization's position, discover new strategies and improvements for success, and assist with implementing best operational practices.

Selecting an individual or a team who can serve your organization in this way is incredibly advantageous, but there are several factors you should consider before you do so. Let's get started.

Understand Their Knowledge and Expertise Level

Strategic planning consultants are helpful to your organization because of their wealth of knowledge and experience. They've worked with other nonprofit organizations in the past and can help lead your team through the strategic planning process.

However, before choosing just any consultant, make sure you ask the right questions about their expertise. For example, they may be able to help you with your strategy but not be able to effectively assist with process definition and implementation. Further, you’ll want to make sure that they have experience working with organizations like yours; strategic planning at a large nonprofit is significantly different than at a small organization. Bottom line, you'll want to make sure you're choosing someone that has a strong understanding of the unique needs of your nonprofit.

Do They Have Testimonials?

The world runs on reviews, testimonials, and client success stories. Strategic planning consultants are not exempt from this rule. Check to see if your consultant has reviews, testimonials, and information on LinkedIn, Google, or other platforms. Look at them as an investment of your time, money, and resources. It's vital to find the right fit.

If reviews or testimonials are not readily available online, don’t hesitate to request your candidate consultants to provide you with some to review. This is a common request and shouldn't be avoided when vetting the relevancy and overall skillsets of the consultants you are reviewing.

Do They Have a Methodology or Process They Adhere To?

Each nonprofit strategic planning consultant will operate differently. As the saying goes, “if you gather 10 consultants in a room, you’ll get 11 opinions on what to do.” Taking this into consideration, during your selection process, ask prospective candidates what their methodology or approach is for getting your organization from Point A to Point B. Hopefully, they'll be able to provide you with some type of project outline or roadmap that can demonstrate a clear illustration of their process.

After this is provided, be sure to ask questions! If you're worried that part of their process won't mesh with structures your organization currently has in place, don't be afraid to voice that. Your nonprofit consultant should be committed to working with your organization and finding new, innovative ways to accomplish the goals you have.

How Well Do They Communicate?

Because your planning consultant will be guiding your organization through the process that will lead it to success, they should have strong communication and facilitation skills. Having good verbal communication skills allows them to collaborate with others and build a good rapport. Facilitation skills are also essential in this context because it helps to identify personality types and comfort levels within the group that they're working with. This enables them to adjust the discussion flow to ensure that all perspectives are heard.

Good communicators and facilitators know how to empower the clients they work with to drive certain elements themselves and when they should step into the picture. This balanced approach to leadership comes with time and experience and is one of the signs of a great nonprofit strategic planning consultant. Don’t feel like you need to compromise in this area. While finding the right nonprofit consultant who truly understands your unique needs and understands your vision takes time, you’ll be in a much better position if you don’t settle for a partnership lacking in clear communication.

Can They Work Within Your Budget?

Not all strategic planning consultants are the right fit for your budget. Don't be afraid to shop around.

Your strategic planning consultant should be given a pretty good picture of the budget you're looking to work within and the scope of the work being done. This will help them to better understand your organization's financial position and the level of commitment they will need to give.

Defining and discussing your budget openly with your consultant is a great way to help them draft a realistic vision of what you can expect out of the partnership, along with relevant timelines, milestones, and organizational objectives they'll be looking to help you achieve.

Are They a Long-Term Partner?

Nonprofit strategic planning consultants often have experience working with a variety of organizational types. This makes them great objective third parties who can bring fresh perspectives and approaches into your organization. Because consultants have established methods for how to create strategic plans, the process often moves much faster than if your nonprofit starts from scratch.

While this may sound great, you'll want to be clear on their level of engagement when deciding if they're the right fit for your organization. Are they looking to give you and your team some direction and then walk away? Or will they be there to support your organization down the road and help to implement new processes?

Get A FREE eBook on Selecting the right nonprofit strategic planning consultant for your organization

For most organizations, especially smaller nonprofits or those just getting on their feet, sourcing a long-term partner is the ideal scenario. In this case, it's important that you factor your strategic planning consultant's commitment levels into your selection criteria. This will ensure you find the right fit for your strategic planning and execution needs.

What is Your Commitment Level?

Before bringing on a planning consultant, reflect on your own level of commitment. While a consultant is there to guide you, it's important you're ready to be actively engaged. Consultants are there to keep everyone on track, but your organization should be committed to making the partnership work.

• Is our executive director committed to the strategic planning process?

• Will our board of directors and other key stakeholders be supportive of this effort?

• Are we willing to make the time for the meetings required to not only create the plan, but also implement it over the next year and beyond?

• Are we willing to regularly track and measure progress on our plan?

These questions are just a few considerations, but it is worth knowing that creating a valued partnership involves effort on both sides. Planning consultants of any type are not a "set it and forget it" solution to strengthening your nonprofit. If you want to impact change within your organization then everyone involved must be ready to play an active role.

Final Thoughts

Whether you've just started your search for a nonprofit strategic planning consultant or have already shortlisted potential candidates, due diligence is key to realizing value. By understanding these seven factors discussed, you'll be sure to find a long-term partner who is the right fit for your organization now and in the future.

Want a One-member Board?

Note: This is an updated version of a popular blog entry written nearly a decade ago.

How would you like it if your nonprofit had a one-member board?

If you're an executive director that is struggling with your board then this may be a dream come true. The same may be true if you're a frustrated member of a large, slow-moving and fractious board.

As it turns out, this isn't necessarily a fantasy. In some states all you need to legally incorporate as a nonprofit is just one board member. One!

Now then, I've never actually come across a one-person board. And I definitely don't think it's a good idea in practice. Given that a board's core purpose is to provide governance and appropriate oversight, one person just isn't going to cut it.

But that begs the question: how large should your board be?

One board of an association that I work with has twenty-five members. It works great and has extremely strong committees. But, managing the board requires a significant amount of staff time and the board is slow to make decisions.

What I typically recommend for small organizations is to create a board of five to seven members. Yes, only five-to-seven.

A board of this size:

• Is flexible and can respond rapidly.

• Maximizes strong board engagement and accountability.

• Simplifies board communication.

• Can focus on its oversight responsibilities and not get sidetracked into micromanaging the organization.

• Doesn’t bog the staff down in board management tasks.

But, you may be wondering, what about all of the other ways that a board can assist: fundraising, program assistance, marketing, etc.? That's why I also recommend the creation of an advisory council to complement the small board. In this structure the board of directors focuses on overall governance while the advisory council serves as a body of interested stakeholders that assist in all sorts of other ways.

(Note that I use the term advisory “council”, not advisory “board”. This helps to maintain a distinction between with the board of directors.)

There is a lot of variability in how to run an advisory council. Some organizations create a set of operating procedures, have a chair, and hold regular meetings. Other councils never meet at all and don’t have designated roles; they are just happy to have their name listed on marketing collateral and serve as needed. You can set your council up to meet your particular needs.

One organization that I’m familiar with — that has extremely strong programs and always exceeds its fundraising goals — has this board and council structure. It can work exceptionally well.

Done well, you get the best of both worlds in this structure: a fast-moving governance board and a deep set of stakeholders that can assist with fundraising, programs, and myriad of other organizational needs.

Here are links to two organizations that have this type of board of director and advisory council structure: Vida Verde Nature Education and the Inter-American Foundation.

Here is a complementary article where we go into advisory councils in more detail:

A Fresh Approach for Your Nonprofit Advisory Council

Hopefully these ideas and resources stimulate some ideas for how you and your board can create the best structure that works for your needs.

How big is your organization’s board?

A Beginner's Guide to Nonprofit Financial Management

Let's be honest. While operating a nonprofit organization is meaningful and fulfilling in many ways, the unique challenges associated with long-term financial viability can quickly inject stress and frustration into the bigger picture.

"Am I spending in the right areas?"

"Do I get enough support from my donors?"

"How do I raise more funds?"

"Will the organization be operational a year from now?"

These are the questions that keep nonprofit leaders up at night, and you're not alone when feeling overwhelmed at the scope of it all. However, while balancing the financial and operational needs of a nonprofit organization can be a tricky one to get right, there are practical steps you can take to position yourself for success.

Below is a beginner's guide to nonprofit financial management that will touch on seven critical components to long-term financial viability when operating a nonprofit organization.

Prioritize Goal Setting

When establishing and/or growing a nonprofit organization, an invaluable practice that should be in every leader's toolbelt is process-oriented goal setting.

The creation and prioritization of short- and long-term financial goals is what continuously drives organizations to hit their targets and ultimately fulfill their mission statements. For nonprofit organizations especially, process-oriented goal setting helps address the "why" and the "how" of budgeting needs and donor engagement strategies that will significantly impact long-term solvency and viability.

The important thing to remember is that while having a collection of "pie in the sky" goals concerning your financials can help keep the organization on course, it is the shorter-term, highly actionable goal setting and execution that will truly drive results.

Process-oriented goals can be three times as effective as result-oriented goals when planning short- and long-term financial success.

Establish a Balanced View of Expenses and Contributions

As a nonprofit organization, having a balanced view of financials throughout the year is critical. To do this properly, it's essential not to over- or under-estimate your operating costs as well as your incoming financial support.

If COVID-19 has taught us anything, it's that relying too heavily on historical financials to drive all decision-making comes with significant risks. To mitigate these risks effectively, nonprofit organizations should constantly have their fingers on the pulse of all contributions and expenses on a month-by-month basis.

All incoming revenue sources for nonprofits should have risk percentages associated with them. This will help to keep reasonable expectations in place as you balance your functional expenses like salaries, rent, utilities, supplies, etc., with your current financials.

One way organizations can achieve this is by grading each of their revenue sources throughout the year based on probability. This can be by assigned letters A, B, C, and so on, or simply by assigning probability percentages to each one (i.e., “There is a 50% chance we’ll receive this funding”). When reviewing all of your projected revenue sources over the course of the year, you’ll be able to see overall probabilities associated with them. When your revenue probabilities increase your overall risk percentages increase. This will help you prioritize fundraising and donor engagement strategies and timelines accordingly.

Create a Finance Committee

A vital step to take when building a solid foundation for your nonprofit organization is establishing a finance committee. Nonprofit finance committees are typically made up of a board treasurer, executive director, and bookkeeper.

Finance committees play an essential role in the organization and take on tasks associated with nonprofit bookkeeping, budgeting, financial planning, reporting, and internal compliance monitoring and control. Often, these committees are mandated by the organization's bylaws and help establish accountability policies that ensure the organization remains solvent.

While establishing a finance committee is a great first step, it's equally important to ensure it is formatted to be successful. This involves setting a clear outline on how the committee should function, establishing processes that need to be adhered to, and implementing a healthy cadence for quarterly or bi-annual meetings.

Keep Accurate Records

It should go without saying, but accurate recordkeeping is one of the defining qualities of highly successful nonprofit and for-profit organizations. Good recordkeeping takes discipline, consistency, and an organized approach to leadership and accountability. However, if appropriately mastered, it can provide a slew of benefits for growing nonprofits, including:

• improved operational efficiency

• reduced financial risks, especially when considering potential tax implications

• added transparency of accountability across the organization

• a clear understanding of bylaws and compliance expectations

Apply Budgeting Templates

Outside of having an extensive list of highly engaged donors, effective budgeting is another critical contributor to your organization’s financial health. Budgets are what keep your organization's financials trending where they should and mitigates the risk of having dangerously high expenses in relation to incoming revenues.

While annual budgets are usually managed by internal staff, board members representing the finance committee are typically responsible for regularly reviewing and approving budgets as the organization progresses. When managing this initiative, there are many steps nonprofit organizations can take to keep their budgets realistic and manageable long-term.

There are a variety of pre-established budget templates organizations can apply when balancing their single- and multi-year financials. Budgeting templates are categorized in various ways, including annual expenses and income, startup funding, fundraising, grant proposals, strategic plans, and many others to get you started along the right path.

Maintain an Operating Reserve

A common mistake that many nonprofit leaders make, especially at the lean stages of organizational development, is not establishing and maintaining a healthy operating reserve. While every organization is different, it's important to have money saved for a "rainy day" that will help absorb unexpected costs associated with building repairs, software or hardware needs, funding shortages, and anything else that impacts the bottom line.

As crucial as the reserve itself, however, is how it is managed. Operating reserves should be visible to all relevant stakeholders, and there should be very clear policies and procedures that govern how they should be used.

Team Up With a Consulting Group

As a nonprofit leader, it's vital that you balance the operational needs of your organization while ensuring it continuously stays in alignment with your vision. However, as the organization begins to grow and financial challenges continue to keep pace, tackling short- and long-term strategic planning on your own can be a struggle.

As a nonprofit leader, you can benefit from the specialized guidance of a financial management consultant. Our friends at Bookr and Metis can help you clarify all of your financial management strategies.

Of course, your financial management process should fit within an overall strategic plan. A strategic planning consultant can be an invaluable partner in developing your organization's overall strategy and capacity. Whether guiding you on fundraising options and approach, helping you establish an optimal organizational structure, or building a plan for long-term viability, strategic planning consultants can give you the focus to build and grow a successful nonprofit from the ground up.

As a nonprofit organization, planning your financial success isn't without certain sacrifices and a disciplined approach to organizational development. However, by following this beginner's guide to nonprofit finance, you'll be on your way to establishing a strong foundation of success conducive to long-term sustainability.