Not-for-profit organizations are seeking to expand their impact and grow revenue by strategically investing resources in key markets with long-term potential. One such organization, Be The Match, entered three new cities to gain access to more potential donors and volunteers. They focus on broadening ethnic diversity of donors to better serve underrepresented groups. Creativity and partnerships can also help further missions - for example, Boeing transports toys for orphans in Iraq when delivering planes, and Samuel Adams partners with Accion to provide coaching to entrepreneurs. Not-for-profits are also quantifying outcomes to demonstrate true value and impact to donors through transparency.
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Resourcefulness, creativity can help further your nonprofit's mission
1. Invest in key strategic markets
With growing emphasis on the efficient use of resources, not-
for-profit organizations are seeking to expand their impact
and grow revenue by deploying resources toward “highest
and best use” areas. Some are venturing into new territories
to increase engagement with constituents, prospective donors
and local communities. Beyond simply replicating existing
operational models in new geographies, these not-for-profits
are performing sophisticated market analyses to determine
which territories maintain the potential to deliver long-term
strategic value.
One organization expanding beyond its traditional footprint
is Minneapolis-based Be The Match, a not-for-profit that
operates the world’s largest and most diverse marrow
registry. The organization recently entered three new cities,
anticipating greater access and proximity to potential donors
in those locations, and utilizing walk-run events to build
awareness and raise funds. Furthermore, since the core mission
relies on volunteers — those who join the registry and are
willing to donate either bone marrow or peripheral blood
stem cells — recruitment of registry participants is a key
objective. In addition to increasing the number of people on
the registry, Be The Match is keenly focused on broadening
the level of ethnic diversity of registered individuals to better
serve underrepresented populations. Expansion enables the
organization to get closer to populations demographically
aligned with these recruitment objectives.
Resourcefulness, creativity can help further your mission
1
Joseph Mulligan, Business Advisory Services Manager, Not-for-Profit and
Higher Education Practices
Adam Day, Business Advisory Services Senior Consultant, Not-for-Profit and
Higher Education Practices
If there’s one lesson that not-for-profit organizations have
learned in recent years, it’s that resources are finite and must be
allocated prudently. In its 2014 annual survey, the Nonprofit
Finance Fund examined the financial state of more than 5,000
not-for-profit organizations. The survey found that the vast
majority (80%) of not-for-profits are experiencing increased
need, but a record 56% of organizations were unable to meet
that demand in 20131
.
In this uncertain operating climate, organizations are concerned
not only with generating additional revenue, but also with how
to deploy limited resources to further the mission and ensure
long-term sustainability. They are also deciding how to satisfy
increased constituent expectations for program growth and
service delivery. Not-for-profits must quickly adapt to find new
and creative ways to respond.
1
McCambridge, Ruth. “Nonprofit Finance Fund Survey Points to Tough Road Ahead,” Nonprofit Quarterly, April 7, 2014. See www.nonprofitquarterly.org/policysocial-context/23976-nonprofit-
finance-fund-survey-shows-troublesome-landscape.html for more details.
2. Resourcefulness, creativity can help further your mission
2
Creatively collaborate with for-profit partners
A twist on the traditional relationship between donors and
not-for-profit organizations is the increasing popularity
of providing support in nonmonetary ways. For-profit
corporations and their leaders are increasingly aware of their
social responsibility and are seeking to align philanthropic
pursuits with their core business, to give back beyond funding,
and to establish employee community service programs. While
not-for-profits stand to greatly benefit from this heightened
enthusiasm, it’s up to not-for-profit leaders to help identify
how these partnerships should be designed and to cultivate
relationships with strong win-win potential. In the end, such
outcomes could far outweigh those that could otherwise be
generated by an unrestricted cash gift.
An example is Boeing’s collaboration with Iraqi Airways and
Another Joy Foundation, a Las Vegas-based not-for-profit
whose mission is to deliver joy, hope and humanitarian aid
to children and families in need. When Boeing delivers a new
plane to Baghdad-based Iraqi Airways, it transports a shipment
of toys from the not-for-profit to orphaned children in Iraq2
.
With virtually no cost to the for-profit partner, corporate social
responsibility is achieved and the foundation’s cash resources
are preserved for other priorities.
The power of creativity is also evident in Accion U.S. Network’s
collaboration with The Boston Beer Company. Accion,
a not-for-profit small business lending and micro-lending
network, has partnered with the owner of the Samuel Adams
brand as part of its Brewing the American Dream program3
.
In addition to providing funding, The Boston Beer Company
asks its employees to provide coaching and industry advice
to entrepreneurial food, beverage and brewing industries
within Accion’s network. This expertise not only provides
entrepreneurs a better chance of succeeding, but also enables
The Boston Beer Company to enhance employee commitment
and engagement while demonstrating strong corporate citizenship.
2
PR Newswire. “Boeing, Iraqi Airways Partner with Non-Profit Organization to Bring Smiles to Children in Iraq,” MarketWatch Inc., March 25, 2014. See www.marketwatch.com/story/boeing-iraqi-
airways-partner-with-non-profit-organization-to-bring-smiles-to-children-in-iraq-2014-03-25?reflink=MW_news_stmp for more details.
3
See btad.samueladams.com/OurPartners.aspx for more details.
3. 3
Quantify and clarify productivity, outcomes and social impact
Knowing exactly how donated funds are utilized is the cause
for increasing demands by institutional and individual donors
for greater transparency and accountability. To demonstrate
the true value of their programs and services, many not-for-
profits are going beyond the traditional direct measures of
impact, which have included simply quantifying the number of
individuals served or providing an example of what donation
dollars can buy. Instead, they are highlighting outcomes that
may not be immediately obvious, making a proactive effort
to describe their societal contributions to ensure that donors
understand how the organization operates and are motivated to
continue giving.
For example, in its periodic report, Catholic Impact4
, the
Archdiocese of Washington describes its key contributions in
the areas of education, social services and health care, such as
how many children it educates in its schools and how many
low-income patients are treated at its health care facilities. It
also quantifies how these services generate direct financial
savings to taxpayers and local communities. The report sheds
light on programmatic details that may not align with donors’
and society’s preconceived notions, such as the fact that an
estimated 85% of the individuals receiving social services
provided by the Archdiocese of Washington’s Catholic
Charities are not Catholic. Through this effort to explain
outcomes and, where necessary, to dispel misconceptions, the
archdiocese is not only communicating a clear value proposition
and demonstrating accountability, but also helping to manage
public perception and broaden support.
Plan proactively for continued mission success
Today’s not-for-profit leaders must employ strategic and
creative approaches in response to financial realities and
growing demands for services. In most cases, it is no longer
enough to build on past success. Rather, leaders need to
examine and be prepared to alter their operating models
even if they are currently working well. While change can be
daunting for an industry that is already resource-constrained,
it can also bring exciting new opportunities to expand impact
and maximize value creation. As mission-driven organizations
become more willing to change outmoded industry practices,
they will be better equipped to increase the scope and scale of
their services.
4
See site.adw.org/pdfs/Catholic-Impact-2012.pdf for more details.
Resourcefulness, creativity can help further your mission