NON-PROFIT BUSINESS MANAGEMENT PROGRAM

Helping non-profit organizations succeed through improved business management

NON-PROFITSUSTAINABILITY

MODULE 3

GETTING ALL YOUR DUCKS IN A ROW

SUSTAINABILITY MODEL

There is not a “one size fits all” business strategy.

Look at each program and service critically and rate its importance to your mission.

HOW TO BE INVESTMENT READY

Understand your needs Have plans you can act on Understand and factor in outside influences Grow your leadership capacity Build your financial capacity Generate community support Assess the impact of your programs and

services Be willing to readjust as needed

WHAT FUNDERS WANT TO KNOW

What your mission and approach is.

How you achieve your mission.

What leadership qualities your organization has.

Your place in the community you serve.

What resources you have now.

MISSION & APPROACH

Why, when and how did your non-profit start?

What is your “story”? Why were you founded?

What and where is the community you serve?

What are your organizational values?

What does your organization want to achieve?

DIRECTION

How do you achieve your purpose?

What are your major programs?

How do these programs contribute to your mission?

What is your accomplishment history?

What is your future – your strategic plan?

LEADERSHIP

Describe your board – skills, strengths, affiliations.

Describe your volunteers – number, hours, jobs.

Describe key staff and volunteers – skills, strengths.

Describe how the community you serve is involved.

PLACE IN THE COMMUNITY

How do you respond to community needs?

Who else does similar work and how do you compare?

What makes your organization valuable?

How do you work with other groups?

RESOURCES

Do you have a detailed budget?

How are you spending your money?

What are your non-financial resources?

What is your current capacity?

What are your limitations?

Organizational Assessment

Two Key Factors

Mission – how important and relevant an activity is for your organization and the community you serve.

Financial – how an activity impacts your financial success and well being.

ACTIVITY ASSESSMENT

IMPACT

PROFITABILITY

HIGH IMPACTHIGH

PROFITABILITY

LOW IMPACTLOW PROFITABILITY

ACTIVITY ASSESSMENT

IMPACT

PROFITABILITY

HIGH IMPACTHIGH

PROFITABILITY

LOW IMPACTLOW PROFITABILITY

ACTIVITY STARS

IMPACT

PROFITABILITY

HIGH IMPACTHIGH

PROFITABILITY

LOW IMPACTLOW PROFITABILITY

HIGH IMPACT ANDHIGH PROFITABILITY

Primary foundation-funded mission activity.

Fee-for-service program that makes money.

Annual fundraising appeal.

Other?

ACTIVITY ASSESSMENT

IMPACT

PROFITABILITY

HIGH IMPACTHIGH

PROFITABILITY

LOW IMPACTLOW PROFITABILITY

ACTIVITY DUDS

IMPACT

PROFITABILITY

HIGH IMPACTHIGH

PROFITABILITY

LOW IMPACTLOW PROFITABILITY

LOW IMPACT ANDLOW PROFITABILITY

Little-used resource library.

Program that has lost funding.

Fundraising golf tournament.

Other?

ACTIVITY ASSESSMENT

IMPACT

PROFITABILITY

HIGH IMPACTHIGH

PROFITABILITY

LOW IMPACTLOW PROFITABILITY

ACTIVITY MONEY TREES

IMPACT

PROFITABILITY

HIGH IMPACTHIGH

PROFITABILITY

LOW IMPACTLOW PROFITABILITY

LOW MISSION IMPACTBUTHIGH PROFITABILITY

Annual silent auction.

Raffle tickets.

5000K run.

Other?

ACTIVITY ASSESSMENT

IMPACT

PROFITABILITY

HIGH IMPACTHIGH

PROFITABILITY

LOW IMPACTLOW PROFITABILITY

ACTIVITY HEARTS

IMPACT

PROFITABILITY

HIGH IMPACTHIGH

PROFITABILITY

LOW IMPACTLOW PROFITABILITY

HIGH MISSION IMPACTBUTLOW PROFITABILITY

State-wide advocacy program.

Mentoring program.

Show of new artists.

Other?

ACTIVITY ASSESSMENT MATRIX

IMPACT

PROFITABILITY

HIGH IMPACTHIGH PROFITABILITY

LOW IMPACTLOW PROFITABILITY

HIGH IMPACTLOW PROFITABILITY

LOW IMPACTHIGH PROFITABILITY

BE INVESTMENT READY

Understand the relative value of a program or service to your mission.

Know the true cost of each program or service.

Consider the impact of change on the organization.

Involve the board in the assessment.

THE “DASHBOARD” APPROACH

PROFITABILITY

IMPACT

0

1

2

3

4

($200,000) ($150,000) ($100,000) ($50,000) $50,000 $100,000 $150,000

RAPTOR RESCUE

PROFITABILITY

IMPACT

0

1

2

3

4

($200,000) ($150,000) ($100,000) ($50,000) $50,000 $100,000 $150,000

RESCUE & REHAB

COMMUNITY EDUCATION

RESOURCE LIBRARY

EVENTS

MAJOR DONORS

DIRECT MAIL

PLUSH ANIMAL SALES

A DETAILED LOOK

Criteria

Core mission How well does

activity align with our core mission?

Excellence To what degree does the activity reflect the best

work we do?

Meets a Need Is the activity

meeting a need in the community otherwise not

met?

Community Building

To what degree does the activity

increase our impact with our

community? Community education

Rescue and rehabilitation

Resource library Direct mail Major donors Plush animal sales Site rentals-events Rate activities on a numerical scale. One to four is sufficient.

You could also use a percentage scale.

RAPTOR RESCUE ACTIVITY EVALUATION

A DETAILED LOOK

RAPTOR RESCUE ACTIVITY EVALUATION

Criteria

Core mission How well does

activity align with our core mission?

Excellence To what degree does the activity reflect the best

work we do?

Meets a Need Is the activity

meeting a need in the community otherwise not

met?

Community Building

To what degree does the activity

increase our impact with our

community? Community education 4 4 3 2

Rescue and rehabilitation

4 3 1 4

Resource library 3 1 1 1 Direct mail 2 1 1 2 Major donors 2 3 1 3 Plush animal sales 1 2 1 2 Site rentals-events 2 2 1 1

DASHBOARD DETAILS

DASHBOARD DETAILS

DASHBOARD DETAILS

DASHBOARD DETAILS

RAPTOR RESCUE CURRENT MATRIX

PROFITABILITY

IMPACT

0

1

2

3

4

($200,000) ($150,000) ($100,000) ($50,000) $50,000 $100,000 $150,000

RESCUE & REHAB

COMMUNITY EDUCATION

RESOURCE LIBRARY

EVENTS

MAJOR DONORS

DIRECT MAIL

PLUSH ANIMAL SALES

RAPTOR RESCUE CURRENT MATRIX

PROFITABILITY

IMPACT

0

1

2

3

4

($200,000) ($150,000) ($100,000) ($50,000) $50,000 $100,000 $150,000

RESCUE & REHAB

COMMUNITY EDUCATION

RESOURCE LIBRARY

EVENTS

MAJOR DONORS

DIRECT MAIL

PLUSH ANIMAL SALES

Reason for most grantsand individuals donations

Improve because it helps Rescue & Rehab which increasesFunding opportunities

Change it or consider dropping it

Improve or increase efforts to grow activity

RAPTOR RESCUE NEW MATRIX

PROFITABILITY

IMPACT

0

1

2

3

4

($200,000) ($150,000) ($100,000) ($50,000) $50,000 $100,000 $150,000

RESCUE & REHABCOMMUNITY EDUCATION ANDRESOURCE LIBRARY MERGER

MAJOR DONORSDIRECT MAIL

PLUSH ANIMAL SALES

Merge Outreach and resource library & decrease cost of outreach

Eliminate events that requireEquipment rental or space fees

More focus on Stars

FUNDING

REVENUE SOURCES

REVENUE SOURCES

REVENUE SOURCES

REVENUE SOURCES

REVENUE SOURCES

REVENUE SOURCES

GOING AFTER GRANTS

HOMEWORK

What size grants do they make? How many grants did they make last year? What % were given to non-profits similar to

you? What was the average grant amount? Does anyone know people at the

foundation? Can you call them or contact them directly? Do you have a project that fits their profile? What do they want from you and when?

CRAFTING A PROPOSAL - 1

What is your specific request? Who are you and what is your history? What is the community need you will

meet? How does your project address this need? What are the measurable outcomes? What is your timeline and work plan? Who are the key staff & volunteers? How much of their time will be involved?

CRAFTING A PROPOSAL - 2

What are the projected costs and funding sources?

How will you sustain the project after the grant? Who else has this service & how do you

compare? How are you working with others in the

community? Why are you the best one to provide the

service? How and when will you evaluate the program? How many people or groups will benefit? What other kind of support to you have?

CHECKLIST - WHAT YOU NEED Organizational resume. Program description. 501(c)(3) letter from IRS. Board list – with or without affiliations. Financial statement. Recent & previous audit or financial review. Program budget. Program financial statement. Latest IRS Form 990. Bylaws Conflict of Interest and Whistleblower policies. Letters of support – very relevant only. Supporting materials – photos, brochures, newspaper

clippings, etc.

All opinions, conclusions or recommendations expressed are those of the author(s) and do not necessarily reflect the views of Lane Community College. Reasonable accommodations for persons with disabilities will be made if requested at least two weeks in advance. Contact Disabilities Resources at 541.463.5150 (voice) or 541.463.3079 (TTY), or stop by Building 1, Room 218 on the Lane main campus. This information is available in alternate format upon request.Lane is an Equal Opportunity/Affirmative Action Institution. Material subject to change without notice. © 2011-2012 Lane Small Business Development Center. 2011 Non Profit Brochure. indd

Small Business Development Center