Nonprofit Sustainability
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Transcript of Nonprofit Sustainability
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June 28, 2016
Nonprofit Sustainability Georgette E. Dumont, MPA, PhD
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Presentation Goals
✤ Nonprofit leadership & strategic decisions
✤ Introduction to the Matrix Map
✤ Using the Matrix Map for long-term sustainability
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Agenda
✤ Introduction
✤ The business model
✤ Role of nonprofit leaders
✤ Staying sustainable in this dynamic environment (Matrix Map)
✤ Q&A
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Introduction
✤ Georgette E. Dumont, MPA, PhD (Gette)
✤ Assistant Professor, University of North Florida
✤ Specializations: Nonprofit Management, ICTs, Accountability, Strategic Planning and Leadership
✤ Past: Chamber of Commerce, School-to-Work, United Way, American Farmland Trust
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First Steps
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The Business Model
• Done at very beginning, and revisited often • Need to answer• What will you offer (value)? • Who are your customers (constituents)?• How will you reach them?• What are the revenue streams (grants, donations,
fees, etc.)?• What is your delivery of services?• How will you measure success?
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Leadership’s Role
✤ Use the organization’s business model for:
✤ Strategic planning/thinking
✤ SWOT analysis
✤ Make connections for sustainability
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Sustainability
✤ An orientation, not a destination
✤ Dynamic Environment = Continual Change
✤ Focus:
✤ Money (financial sustainability)
✤ Mission (programmatic sustainability)
✤ Tool: The Matrix Map
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The Matrix Map
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Matrix Map✤ Visual tool for nonprofit’s business model
✤ Understand how all business lines (core activities) fit together
✤ Need to:✤ Identify impact strategies (external effects of business
lines)✤ Identify revenue strategies (how particular business lines
are financed)• Assesses each activity’s:•Financial impact•Mission alignment• Implementation•Scale
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The Map
Impa
ct
Profitability
High impact,High profitability
High impact,Low profitability
Low impact,Low profitability
Low impact,High profitability
Source: Bell, et al., 2010
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The Mapping ProcessCollect data (qualitative and quanititative)
Program (Likert scale 1-5) Financial
Mission alignment Income
Scale or volume Grants, other restricted funds
Depth Unrestricted funds
Filling an important gap Full costs
Community building Direct
Execution/implementation Indirect
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Use to…
✤ Understand programs
✤ Improve programs
✤ Move programs
✤ Cycle out programs
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Matrix MapExample, Time A
$45,000
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Matrix Map Example, Time B
$100,000
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Matrix Map Comparison(Time A, darker)
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Matrix Map Comparison(Time B, darker)
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Strategic Imperatives of the Map
Impa
ctProfitability
Invest and growKeep, but contain costs
Close or give away Nurture, increase impact
Source: Bell, et al., 2010
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Difficulties
✤ Time
✤ Honesty
✤ Agreement on mission impact
✤ Calculating ‘full cost’ of programs
✤ Egos, fear, resistance
✤ Cycling out business lines
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Cautions✤ Strategic Imperatives are not the final word,
just suggestions
✤ Does not visualize diversification of revenue streams
✤ Matrix Map is a point in time
✤ Data may be bad
✤ Need strong leadership
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Best uses
✤ Understand different business lines in a nonprofit
✤ See the interconnection between mission and money
✤ See how business lines change over time
✤ Initiate dialogue for difficult conversations
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Recap
✤ Nonprofit’ need to understand their business model.
✤ Nonprofit leadership needs to continually assess environment and continually adjust to keep organization relevant and sustainable.
✤ Matrix map is a visual tool to help make strategic decisions.
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“Greatness is not a function of circumstance. Greatness, it tuns out, is largely a matter of conscious choice, and
discipline”
–Jim Collins
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Questions?
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Resources
✤ Bell, J., Masaoka, J., and Zimmerman, S. (2010) Nonprofit Sustainability: Making Strategic Decisions for Financial Viability. San Fransisco: Jossey-Bass.
✤ Collins, J. (2005). Good to Great and the Social Sectors: A Monograph to Accompany Good to Great. Harper Collins.
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Thank youGeorgette E. Dumont, MPA, PhDemail: [email protected]: www.getteinjax.comFacebook: www.facebook.com/getteinjax Twitter: GetteInJax