Amid growing competition, decreased funding sources, and more and increasingly complex social challenges, nonprofit leaders must reinvent themselves. They must unlock the charity shackles, embrace strategy and impact, use money as a tool, refuse to play nice and demand real help. We need a new kind of nonprofit leader.

1. Reinventing
the
Nonprofit
Leader
© 2015 Social Velocity

2. More Competition
1.4 million nonprofits in US, up 19% since 1999
More for-profit social change orgs
Less Funding
Private donations level over last 30+ years
Government spending cuts at every level
More Complex Social Challenges
Crumbling institutions
Growing wealth disparity
Shrinking civil discourse and participation
Struggling Leaders
Limited resources for building leadership skills

3. It’s time to
Reinvent the
Nonprofit Leader

4. 1. Unlocks the Charity Shackles
2. Moves to Impact
3. Embraces Strategy
4. Uses Money as a Tool
5. Refuses to Play Nice
6. Breaks Down The Walls
7. Demands Real Help
8. Remembers The Dream
The Reinvented Nonprofit Leader

5. 1. Unlock the
Charity Shackles

6. Baked Into vs. Beside the Economy
Systems vs. Symptoms
Experts vs. Volunteers
Demand vs. Apology
Investment vs. Pennies
“Social Change”
“Charity”

7. The number of nonprofits grew 50x faster
than businesses over the last 10 years
Nonprofit revenues grew at double GDP
growth rate
Millennials bake social change into work
and life
Source: The Urban Institute
Social Change
has Value

8. 2. Move to Impact

9. In the past,
nonprofits were rated
on...
...And now
nonprofits are
rated on…
Amount spent on “overhead”
(20%+ was unacceptable)
Financial Health
Financial ratings tables
Fundraising efficiency
Working capital ratio
Revenue & expense growth
Accountability & Transparency
Independent board
Audited financials
Policies/procedures
Information sharing
Results Reporting
Align mission and $
Results logic & measures
Validators
Client voice
Evaluations

10. Growing Ratings Market

11. Give based on values
Want to be engaged
Focus on impact
Pave their own way
Source: www.nextgen.org Johnson Center for Philanthropy and 21/64

12. Target
Population
Tier Two K-
2nd grade
children in
AISD
External
Context
High school
drop out rate
increasing
Activities
Provide
daily,
targeted
literacy
intervention
Short &
Long-Term
Outcomes
Students get
to grade level
in reading,
improve
academics
Assumption
s
Literacy level
at 3rd grade
predicts
future
success
The Theory of
Change

13. 3. Embrace Strategy

14. Financial Crisis
$ for Mission Creep
Program Development
Board
Uncertainty
Decision Making
Reactive Vs. Strategic
Stay Afloat Fix the Problem
“Yes” “No”
Status Quo Constant Improvement
Rubber Stamp
Fear
Unique Assets
Data and ReasonEgo
Opportunity

15. Competitors/Colla
borators
Community
Problem
Nonprofit’s
Core
Competencies
A nonprofit
is most
effective
here

16. Attracts more, longer-term funding
Directs activity
Filters future opportunities
Engages board & staff
Puts resources to highest/best use
Creates financial sustainability
Achieves more impact
Benefits of
Great Strategy

17. Clients, Board,
Staff, $,
Volunteers
Great
Strategy
Change to a
Social
Problem

18. 5 Key Strategic
Questions
1. What is our end goal?
2. What are our core competencies?
3. What is our strategy for getting to our end goal?
4. What is the sustainable model to get there?
5. What people and networks do we need with us?

19. 4. Use Money as a Tool

20. Financing is...
A long-term strategy for bringing enough
money in the door to achieve your mission.
How much should we raise to
accomplish our goals?
How much can we accomplish
with what we can raise?

21. Board, Staff, Donors
Money Strategy
Infrastructure
Sustainability
Funding Sources
Programs
Message
Fundraising Financing
Worn out Excited, engaged
Annual, programs Long-term, all costs
Inadequate Fully funded
Weak
Few
Strong
GrowingFlat or declining
Diverse, Robust
Community changeNeed

22. Assess Your
Money Function
1. Organizational Strategy
Does it integrate money & programs?
Does it create measurable value?
2. Mission & Vision
Is the vision a compelling beacon?
Does the mission work toward it?
3. Board & Staff Leadership
Does board have the right skills, experience, networks?
Do we have the right staff and structure?

23. 4. Program Delivery & Impact
Does our program portfolio balance social/financial impact?
Do we measure results?
5. Marketing
Are we making a case for investment?
Are we using the right channels?
6. External Partnerships
Do we have the right strategic alliances?
7. Financial Model
Does money align with mission & competencies?
Are all revenue-generating activities profitable?

24. 5. Refuse to Play Nice

25. NonprofitVolunteers
Staff
Board Funders
Clients
Policymakers
So many demands push on a nonprofit…

26. Say “No” To…
Mediocre strategy
Hiding your full costs
Asking for permission
“Mission creep” donors
Underperforming staff
Absent board members

27. Lead Real
Conversations
1. Gather Data
2. Set Goals
3. Manage Politics
4. Be Transparent
5. Lead

28. 6. Break Down the Walls

29. Staff
Executive
Director
Board
Stakeholders
Marketplace
Continuous
360°
Analysis

30. Strategy
Board
direction
Executive
Director
leadership
Staff
action
Stakeholder
feedback
Create a 4-legged strategy

31. 7. Demand Real Help

32. Nonprofit Leaders
Need Help
73% of nonprofit leaders say they lack
resources to build leadership skills
Biggest challenges are:
Fundraising
Staff management
Board management
Sources: Center for Effective Philanthropy and Meyer Foundation

33. “Nonprofits that build robust
infrastructure (like sturdy IT and
financial systems, fundraising
processes, and other essential
overhead) are more likely
to succeed than
those that do not.”
- Ann Goggins Gregory & Don Howard,
“The Nonprofit Starvation Cycle”

34. The Starvation
Cycle
Funders
Demand
More for
Less
Nonprofit
Skimps on
Staff,
Systems
Nonprofit
Is Less
Effective
Fewer
People
Served,
Changed

35. Overhead is NOT
a Dirty Word
% of Dollars Spent on Programs
Focuses on inputs, rather than impact
Compares apples to oranges
Forces nonprofits to “hide” infrastructure costs
Distinction is meaningless and destructive

36. Revenue
Ongoing
Supports day-to-day
BUYS services (beds for a homeless shelter)
vs. Capital
One time
Supports infrastructure
BUILDS organization (evaluation system)
Two Kinds
of Money

37. Capacity Capital
BUILDS a Nonprofit
Technology
Systems
Evaluation
Planning
Development staff
Training
Leadership coaching

38. Nonprofit
lacks
infrastructure
Capacity
capital
strengthens
the nonprofit
Nonprofit
achieves
more
outcomes,
impact

39. 1. List Your Needs
What is holding your org back?
2. Add a Plan and Price Tag
What is your plan and what will it cost?
3. Identify Current Major Donors or Board
Who could be convinced of the need?
4. Make the Pitch
Capacity investments = more mission
Build Your
Capacity Capital Pitch

40. Before
Tutoring 800 students/year
Small, disengaged board
Lack of management expertise
Limited individual & school district dollars
Raised $60K+ in capacity capital for
planning & leadership coaching
After
3X growth in students (800 to 2,400)
Larger, more engaged board
Significant financial commitment from school district
Growing donor base

41. 8. Remember the Dream

42. Keep Your True North
Get Brutally Honest
Find Inspiration
Share War Stories
Become a Cheerleader
Forgive Yourself

43. 1. Unlocks the Charity Shackles
2. Moves to Impact
3. Embraces Strategy
4. Uses Money as a Tool
5. Refuses to Play Nice
6. Breaks Down The Walls
7. Demands Real Help
8. Remembers The Dream
The Reinvented Nonprofit Leader

44. Learn More…
Reinventing The
Nonprofit Leader Book
Download Now

45. Other
Nonprofit Tools
Books
Bundles
Webinars
Guides
socialvelocity.net/tools

46. Nonprofit Leader
Coaching
More engaged board
Clearer strategic thinking
More productive staff
Greater financial sustainability
Higher performance
More info at
socialvelocity.net/consulting

47. © 2015 Social Velocity
www.socialvelocity.net
(512) 694-7235
Twitter: @nedgington
Facebook: Social Velocity