Your organization isn’t getting older, it’s getting better

Not-for-profits go through many stages. Although the initial startup and growth stages present challenges, many opportunities and obstacles can arise even as a nonprofit matures. What areas should you focus on when your organization is more established? Let’s take a closer look.

Middle age has its benefits …

Generally, when a nonprofit organization has been operating for five to ten years, it has reached maturity in its life cycle. It’s probably well known in the community, not only by the consumers of the services it provides, but also by local and industry funders, community leaders, and other agencies.

Moreover, the early passion and cheerleading mentality of the founder, initial board and volunteers may give way to a more stable — though often less creative — environment. A mature organization has developed processes and systems, is fairly set in its program activities, and has a leadership that may have been involved in developing the current culture.

Opportunities abound for organizations in this stage to continue to provide superior levels of service in an efficient manner for many years and to greatly benefit the community being served.

… but also some drawbacks

Some of the same mature traits that lead to new opportunities may create their own set of challenges. These challenges can be grouped into five areas:

1. Decision making. While always an important part of the daily operations, decision making may become solely the executive director’s responsibility. This may lead to little involvement from the board — even in strategic areas.

2. Fundraising. Although identifying potential donors is a necessity in the early years, it may reach a plateau as the organization matures.

3. Infrastructure. Although the infrastructure may do a good job of supporting current operations, there may be no process in place to review and revise systems as they become outdated.

4. Leadership. The leadership — both management and board members — who had the skills to start up the organization may not have what it takes to move it to the next stage in its development.

5. Making changes. Where a startup is willing to take risks, a mature organization may be more comfortable and cautious in making changes.

If your not-for-profit is encountering these issues, don’t throw in the towel! Instead, it may be time to redesign your core elements, including your mission and vision, the products or services you provide, and the structure that governs your organization.

Changes ahead

To overcome the challenges in each of these areas, take a fresh look at them:

Decision making. Explore the levels of decision making appropriate at both management and board levels. In the startup phase your board may have been much more involved in daily operational issues, where, as a mature nonprofit, the board should focus on developing strategy and representing your organization in the community.

Fundraising. Explore new funding sources to fit with any new program direction. For example, if you decide to implement a job-training program for the homeless, certain foundation grants and government funds may be available for this purpose that wouldn’t have supported an effort to provide housing. Add a development officer who can help you restructure and grow your development office to support your new efforts. Make sure that your leadership is skilled in community and donor relations.

Infrastructure. Evaluate centralizing activities, such as bringing your volunteer management or fundraising event coordination under one person’s control to standardize your processes. Look at technology that will meet the nonprofit’s needs into the future. Review your organization chart and restructure if needed. Develop a succession plan for all key positions. Update written policies and procedures, and establish a process for regular review.

Leadership. Clarify the roles and responsibilities of both board members and your internal management team and make sure your leadership team embraces change. Evaluate the skills needed to take your organization to the next level. Encourage diversity in experience and profession on the board.

Making changes. Take another look at unmet community needs. Develop or update a long-range strategic plan that may result in changes to existing programs. Where years ago you may have provided the only homeless shelter in your area, for example, your assessment may indicate that job training or mental health services should top your priority list for serving the homeless population today. Also work with other community organizations and leaders to evaluate your services. This may mean eliminating some of your long-standing programs and changing your culture. But, be open to their feedback. Measure your success by comparing your progress to your nonprofit’s strategic plan.

Embrace the change

Can you make change happen? This may be the determining factor as to whether you continue as a successful, mature nonprofit organization. The choice — although difficult — is yours to make. •