3 Reasons Nonprofits are Struggling

The old ways of the nonprofit world pose a very real threat to the future success of many organizations. The competition for donation dollars has never been fiercer, and the traditional approach of fundraising through emotional appeals no longer works. Every day there are more organizations being formed to make their mark on the world. The good news is that this is a sign that good humans still exist, despite what social media and the news media tells us. The not-so-good news is that many of these folks face major obstacles when it comes to the impact they want to have.

There are 3 big obstacles to success:

NO RECIPROCITY OF VALUE

It’s rare to meet an Executive Director or development professional that does not greet you with their hand out. The assumption has always been that anyone with a pulse and a sense of humanity would automatically become a stakeholder in the success of their organization. Their intentions are sincere, but the problem is that the “ask” is always one-way. Potential donors, volunteers or board member prospects are never asked what they would like to get out of their involvement. It usually doesn’t occur to the nonprofit professional, and the person being asked feels too guilty or selfish to ask for anything in return. Emotional pitches can work, but they are like trying to catch fish with a spear instead of a net. Savvy nonprofit leadership understands the value of their stakeholder’s time and treasure, and they make sure that the organization is committed to and intentional about ensuring that the exchange of value is mutual.

WINDOW DRESSING BOARD ROSTERS

Too many board members join an organization for either the prestige or because they are pressured into it by their firms, families or communities. Having one’s name on the stationery does not a stakeholder make.

Nonprofit leadership must take a strategic and thoughtful approach to populating their board, one that considers the specific skills/talents required to fulfill fiduciary duties, not just the writing of a big check. A common complaint among nonprofit leadership is apathy among board members. This can be rectified if the board selection process is reworked with an eye on prospects whose concept of impact is totally aligned with the organization for which they serve.

NO AMBASSADOR TRAINING FOR STAFF

The most effective and efficient marketing strategy for any organization is usually overlooked and underestimated. I’m talking about empowering those that work tirelessly, often behind the scenes, on behalf of their nonprofit employer. Other than those on the development team, staff members of nonprofits are passionate about the cause, but either afraid or ill-equipped to promote the organization in public. Instead of spending a fortune on outside marketing campaigns, nonprofits should start investing on the inside, by providing all team members with training in business development, branding and leadership. They must feel confident in their ability to promote the organization in the community and with friends.

As we come to the end of the year, the nonprofit hunting season is underway. The organizations that are dedicated to rethinking their approach to growth by carefully overcoming these 3 challenges are the ones that will lock in 2020 as a year of impact.

Wendy Merrill is the Founder & Chief Rainmaker of StrategyHorse Consulting Group. She is committed to helping impact-oriented Rising Leaders to steward their organizations into the future. StrategyHorse provides workshops, coaching and retreat facilitation for growth-oriented nonprofits of all sizes.

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