Unique Nature and Struggles
of Traditional Small Nonprofits
The Heart of the Matter: Leadership and Management
“At the heart of any successful
nonprofit is an effective chief executive and board of directors.”
At the heart of any successful nonprofit is an effective chief
executive and board of directors. These leaders must work as a team
with vision, skill, and sufficient resources to accomplish the organization's
mission. While leadership is shared, critical management skills
must rest with the chief executive. However, the board must be sufficiently
skilled in management to assess the work of this director and assist
in strategic decision making.
“Values are the driving force
in a nonprofit.”
Values as the Bottom Line
Values are the driving force in a nonprofit. The bottom line is
the realization of a social mission, not profits. This poses complex
problems for the leadership team. How are programs agreed upon,
progress monitored, and success measured? How are priorities set
and consensus reached? How are staff rewarded and what control systems
are applicable? Skilled consultants may be needed from time to time
to assist the team in answering these qualitative, value-laden questions
and to focus on appropriate management systems.
“Nonprofit personnel must
ensure they cultivate and remain open to the various values
and perspectives.”
Nonprofit Personnel are Often Highly Diverse
Diversity is reflected, not only by different races and ethnic groups,
but ultimately by different values and perspectives. This strong
diversity is a major benefit to the nonprofit because input from
a wide variety of perspectives usually ensures complete consideration
of situations and new ideas. Nonprofit personnel must ensure they
cultivate and remain open to the various values and perspectives.
Problems are Especially Complex for the Small Nonprofit
The majority of nonprofits have small staffs and small budgets,
e.g., less than $500,000, which compounds the leadership and management
problems they face, especially given their charters and the magnitude
of community needs with which they deal. Those new to nonprofits
may react that, because nonprofits tend to be small in size, issues
in nonprofits should be simple in nature. On the contrary, the vast
majority of organizations (regardless of size) experience similar
issues, e.g., challenges in planning, organizing, motivating and
guiding. However, when these issues are focused in a small organization,
the nature of the organization becomes very dynamic and complex.
“With lack of sufficient moneys,
attracting and retaining paid management also can be problematic.”
Sufficient Resources to Pay Leadership May Be Lacking
With lack of sufficient moneys, attracting and retaining paid management
also can be problematic. Hard work with little career development
opportunity encourages turnover of chief executives and staff. This
can stall the organization's work. Expertise that is brought in
to advise the management may be lost once that leadership leaves.
Lack of Managerial Training is Problematic for the Small Nonprofit
Many nonprofit managers have been promoted primarily out of non-management
disciplines and do not have the managerial skills that are needed
to run a nonprofit organization. Training and consultation can do
much to help these new leaders/managers gain the skills they seek
and help them up a myriad of learning curves that rainbow out in
front of them.
Chief Executives Wear Too Many Hats
A nonprofit chief executive is expected to be an expert in planning,
marketing, information management, telecommunications, property
management, personnel, finance, systems design, fundraising and
program evaluation. Obviously this is not possible, regardless of
size. A larger organization may be able to hire some internal experts,
but this is certainly not the case for the smaller organization.
Furthermore, the technology of management progresses today too rapidly
for the non-specialist to keep abreast of new thinking and expertise,
whatever the size. Outside expertise therefore is often a must for
both the large and small organization.
“Low-cost, volunteer-based
assistance often is an appropriate solution.”
Too Small to Justify or Pay for Expensive Outside Advice
Most nonprofits, even larger ones, often hesitate to spend money
on administrative "overhead" such as consultants or other
outside experts because this is seen as diverting valuable dollars
from direct service. Of course, most nonprofits have no choice.
They don't have enough money to even consider hiring consultants
at for-profit rates. Low-cost, volunteer-based assistance often
is an appropriate solution.
“Sequential calls assistance
therefore is not a sign of failure but of a sign of motivation
to grow - a new need to know has surfaced.”
One-shot Assistance Often is Not Enough
While most consultant organizations want to teach managers "how
to fish" rather than give them a "fish," "fishing"
(management skills) is not something that often can be learned in
one consultation. Especially in more technical arenas such as information
management learning comes while grappling with an issue over a period
of time. Building internal management capacity takes more time than
a one-shot consultation. Sequential calls assistance therefore is
not a sign of failure but of a sign of motivation to grow--a new
need to know has surfaced.
“Most nonprofit directors
run a second business - raising money to support the first.”
Networks are Lacking
Everyone outside the nonprofit sector observes, "Why don't
those chief executives get together more, share more ideas, undertake
cooperative ventures?" There are many reasons. First of all,
running a successful organization (delivering the quality service
that fulfills the organization's mission) isn't enough. Most nonprofit
directors run a second business -- raising money to support the
first. Both are complex and very time-consuming activities, especially
when the director wears all the management hats. Second, developing
networks or researching joint ventures is time-consuming, expensive
and risky.
Nonprofits Usually Have Little Time and Money
Funders do not seem to think research and development activity justifies
new expenditures; at least many are hesitant to fund what might
not succeed. While nonprofits may be more entrepreneurial than funders,
they have little capital to risk. Collaborative planning will be
enhanced by computerization and telecommunications, but these investments
also are difficult to fund. In some ways, affordable consultants
can substitute for expensive, up-front research and development
costs, at least at the feasibility level. In many cases, they can
carry an organization through the needed planning to actually develop
a new system of collaboration, merger, or automation.
“What is well done is based
on what is well run.”
Nonprofits Need Low-Cost Management and Technical Assistance
Nonprofits are valuable community assets that must be effectively
managed. The need to provide affordable, accessible management and
technical assistance to nonprofit organizations is clear for all
the reasons stated above: the complexity of the task, the lack of
board and internal expertise, the lack of time and money, changing
needs, the learning curve, and, finally the importance of the results
to the community. What is well done is based on what is well run.
Typical Nature of Planning in Nonprofits
For most nonprofits, they don't have sufficient time, money, or
resources for sophisticated, comprehensive strategic planning. The
focus is usually on the major issues facing the nonprofit and quickly
addressing them. Typical major challenges for the facilitator are:
basic training of personnel about planning concepts and process;
helping the nonprofit to focus and sustain its limited resources
on planning; ensuring strategies are really strategic rather than
operational/efficiency measures; and helping design small and focused
planning meetings that produce realistic plans that become implemented.
In sum, the executive director, volunteer leaders, consultants,
and funders must recognize the particular challenges small nonprofits
face and find creative, sensitive and cost effective ways to achieve
their goals.
Contact Information
Sandra Larson Consulting |
11472 Fairfield Rd. West, Suite 302
Minnetonka, MN 55305
952-595-0432 | 612-964-4389 (Mobile)
