Aug 11
2
Image: scottchan / FreeDigitalPhotos.net
I was reading an article by Paul Connolly, in the Stanford Social Innovation Review. In the article, Connolly discusses how some people propose that the best thing you can fund in a nonprofit is the fundraising arm of the organization. Connolly suggests that tactic is short-sighted:
This evidence is consistent with other research on nonprofit organizational performance that TCC Group has conducted over the past few years. When we analyzed the results of almost 700 nonprofits nationwide that had taken the Core Capacity Assessment Tool survey, and then, through regression analysis, identified the key drivers for those that scored highest on financial sustainability, we determined that fundraising capacity was indeed a substantial factor—but predominantly when combined with robust internal leadership and programmatic learning (see “The Sustainability Formula” report). Likewise, our study last year of 263 nonprofits in Los Angeles County for the Weingart Foundation (see “Fortifying L.A.’s Nonprofit Organizations”) found that fund-development capacity-building tended to lead more to individual knowledge and motivation, while organizational assessment, strategic planning, and board leadership development were more likely to result in institutional change. Fundraising capacity is essential—even a nonprofit with the highest impact programs will not last without it—yet it needs to happen in conjunction with solid leadership and organizational learning.
I think he is completely right. I will continue to preach that, first and foremost, Boards and Funders need to hold their nonprofit leaders accountable. You should demand greatness from your Chief Executive. If you do not – and do not have measures in place to evaluate his or her greatness – then you are doing a disservice to your mission.
So, what should you expect and how should you measure it? You should look for 5 things:
- Program outcomes – how effective is your program? Is your organization fulfilling your mission and are you achieving your service goals?
- Budget results – Is your organization growing in its revenue capacity, do you have at least 6 months operating reserves? Are you comfortable with the financial management of the organization? What are other investors saying about your service?
- Organizational culture – What is the real culture inside the organization? Are employees engaged and doing what they do best EVERY day?
- Strategic Direction – is your leader a visionary? Is he/she constantly evaluating the environment and responding without being distracted by the latest idea and losing focus? Is he/she ambitious, yet reasonable?
- Leadership Development – is your leader investing in his/her own continued learning and professional development as well as that of the board and staff? What is your chief executive doing to continue to learn and grow as a leader? How specifically is your leader professionally developing the leadership team and staff. What great board development is your chief executive bringing to the table?
I have worked with a lot of nonprofit executives over the years, and I am sorry to say that too few are great chief executives, some are very good and too many are not good. There are many executives that I have really liked and truly believe their heart is in the right place but are not meant to be the Chief. There are others I have met who could be really good and move to great if they were evaluated properly, told the truth, given the proper professional development they need and then held accountable.
So, are you holding your Chief Executive accountable?
