Nonprofit Sustainability presentation for BBBS FL Annual Conference
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July 17, 2014 Nonprofit Sustainability Georgette E. Dumont, MPA, PhD
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Transcript of Nonprofit Sustainability presentation for BBBS FL Annual Conference
July 17, 2014
Nonprofit Sustainability Georgette E. Dumont, MPA, PhD
Presentation Goals
✤ Broad understanding of important shifts in the nonprofit sector
✤ Nonprofit leadership & strategic decisions
✤ Introduction to the Matrix Map
✤ Using the Matrix Map for long-term sustainability
Agenda
✤ Introduction
✤ Changes in the sector’s operating environment
✤ Call for professional development
✤ Role of nonprofit leaders
✤ Staying sustainable in this dynamic environment (Matrix Map)
✤ Q&A
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
Environmental Changes
✤ Demographic shifts
✤ Technological advance
✤ Increased competition (resources and clients/customers)
✤ Blurring of sector lines
✤ Calls for more professionalization
Nonprofit Management
First steps
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?
Leadership’s Role
✤ Use the organization’s business model for:
✤ Strategic planning/thinking
✤ SWOT analysis
✤ Make connections for sustainability
Sustainability
✤ An orientation, not a destination
✤ Dynamic Environment = Continual Change
✤ Focus:
✤ Money (financial sustainability)
✤ Mission (programmatic sustainability)
✤ Tool: The Matrix Map
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
The Map
Impact
Profitability
High impact,High profitability
High impact,Low profitability
Low impact,Low profitability
Low impact,High profitability
Source: Bell, et al., 2010
The Mapping Process
Collect data
Program (Likert scale 1-5) Financial
Mission alignment Income
Scale or volumeGrants, other restricted
funds
Depth Unrestricted funds
Filling an important gap Full costs
Community building Direct
Execution/implementation Indirect
Use to…
✤ Understand programs
✤ Improve programs
✤ Move programs
✤ Cycle out programs
Matrix MapExample, Time A
$45,000
Matrix Map Example, Time B
$100,000
Matrix Map Comparison(Time A, darker)
Strategic Imperatives of the Map
Impact
Profitability
Invest and growKeep, but contain costs
Close or give away Nurture, increase impact
Source: Bell, et al., 2010
Matrix Map Comparison(Time B, darker)
Difficulties
✤ Time
✤ Honesty
✤ Agreement on mission impact
✤ Calculating ‘full cost’ of programs
✤ Egos, fear, resistance
✤ Cycling out business lines
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
Best uses
✤ Understand different business lines in a nonprofit
✤ See the interconnection between mission and money
✤ See how business lines change over time
✤ Initial dialogue for difficult conversations
Recap
✤ Nonprofit sector undergoing unique challenges
✤ Professional development becoming increasingly important
✤ 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
“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?
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.
Thank you
Georgette E. Dumont, MPA, PhD
email: [email protected]
Blog: www.getteinjax.com
Facebook: www.facebook.com/getteinjax
Twitter: GetteInJax
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