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How do you communicate and justify your resource allocation process to your stakeholders and the public?

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Resource allocation is a crucial aspect of nonprofit management, as it involves deciding how to use your limited funds, staff, and time to achieve your mission and goals. However, it is not enough to make these decisions internally; you also need to communicate and justify them to your stakeholders and the public, who may have different expectations, opinions, and interests. In this article, we will discuss some strategies and tips on how to do this effectively and transparently.

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Tim Lockie

I transform the tech culture of nonprofits. By changing minds before changing tech. | Reached 5,000+ nonprofits |…

1 Understand your stakeholders

The first step in communicating and justifying your resource allocation process is to identify and understand your stakeholders, which are the individuals or groups that have a stake or interest in your nonprofit's work. These may include donors, beneficiaries, partners, board members, volunteers, staff, regulators, media, and the general public. You need to know who they are, what they care about, what they expect from you, and how they prefer to receive information. This will help you tailor your messages, channels, and methods to their needs and preferences.

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Tim Lockie

I transform the tech culture of nonprofits. By changing minds before changing tech. | Reached 5,000+ nonprofits | Book a call to get started
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You are your most Key Stakeholder. Always start with yourself and your reasons for resource allocation. This allows you to create internal alignment around the strategic plan and the ways that you're supporting that strategic plan through resource allocation. Yes all stakeholders matter but until you can center the plan internally you'll be focused on their inputs before you're clear yourself. Don't skip this step.

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2 Explain your process

The second step is to explain your resource allocation process, which is the set of criteria, methods, and tools that you use to decide how to allocate your resources. You need to show how your process is aligned with your mission, vision, values, and strategic plan, and how it reflects your nonprofit's impact, efficiency, and accountability. You also need to demonstrate how your process is informed by data, evidence, and feedback, and how it involves consultation and participation from your stakeholders. This will help you build trust, credibility, and legitimacy for your decisions.

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3 Share your results

The third step is to share your results, which are the outcomes and outputs that you achieve with your allocated resources. You need to show how your results contribute to your mission and goals, and how they address the needs and challenges of your beneficiaries and communities. You also need to highlight your successes, challenges, and lessons learned, and how you use them to improve your performance and impact. This will help you showcase your value, relevance, and effectiveness for your stakeholders and the public.

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4 Solicit feedback

The fourth step is to solicit feedback, which is the input and opinions that you seek from your stakeholders and the public on your resource allocation process and results. You need to create opportunities and platforms for dialogue, engagement, and collaboration with your stakeholders and the public, and invite them to share their views, questions, concerns, and suggestions. You also need to listen actively, respectfully, and openly to their feedback, and acknowledge and address it appropriately. This will help you foster relationships, loyalty, and support for your nonprofit.

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Tim Lockie

I transform the tech culture of nonprofits. By changing minds before changing tech. | Reached 5,000+ nonprofits | Book a call to get started
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5 Steps to creating a culture of complaining because complaining is a sign of hope. Complaining is momentum, you can't fix what you don't know isn't working. Step 1: Get people to complain by making it easy (less than 30 seconds). Step 2: Thank them and track all complaints. Step 3: Encourage complaining, end whining. Complaining is constructive, whining is a dead end. Step 4: Fix all fixable things. Step 5: Report back to the original source what got fixed. Why don't teams complain? Because it feels rude. It's commenting on someone else's work. It's highlighting failure.

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5 Report transparently

The fifth step is to report transparently, which is the act of disclosing and publishing your resource allocation process and results to your stakeholders and the public. You need to use clear, accurate, and consistent formats and language to present your information, and avoid jargon, technicalities, and ambiguity. You also need to use various channels and media to disseminate your information, such as websites, newsletters, social media, reports, events, and press releases. This will help you comply with ethical and legal standards, and enhance your reputation and visibility.

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6 Adapt continuously

The sixth step is to adapt continuously, which is the process of reviewing and adjusting your resource allocation process and results based on your feedback, learning, and changing context. You need to monitor and evaluate your resource allocation process and results regularly, and identify what works well and what needs improvement. You also need to communicate and justify any changes or adjustments that you make to your stakeholders and the public, and explain how they benefit your nonprofit's mission and goals. This will help you maintain your relevance, responsiveness, and sustainability.

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7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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Tim Lockie

I transform the tech culture of nonprofits. By changing minds before changing tech. | Reached 5,000+ nonprofits | Book a call to get started
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Organizations need a Technology Roadmap to align strategic initiatives to tech resources. All strategic initiatives will need financial (budget) and technology (how do we measure it) succeed. Budget can be quick (hopefully) but tech is a different story. Executing the technology side is frequently assumed to be fast since technology is fast. Check with your tech staff to get a realistic timeline as a part of resourcing. Using tech is fast, setting it up is slow, getting users to adjust and use it is very slow.

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How do you communicate and justify your resource allocation process to your stakeholders and the public?

1

2

3

4

5

6

7

1 Understand your stakeholders

2 Explain your process

3 Share your results

4 Solicit feedback

5 Report transparently

6 Adapt continuously

7 Here’s what else to consider

Nonprofit Management

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How do you communicate and justify your resource allocation process to your stakeholders and the public?

1

2

3

4

5

6

7

1 Understand your stakeholders

2 Explain your process

3 Share your results

4 Solicit feedback

5 Report transparently

6 Adapt continuously

7 Here’s what else to consider

Nonprofit Management

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