Stages of Nonprofit Growth and Development

(Adaptation of The 5 Life Stages of Nonprofit Organizations by Judith Sharken Simon) Stage/ Arenas Characteristics Tips

Imagine & Inspire Can this dream be realized? The Work Extremely informal

Consider different product or service options Develop concept paper to flesh out program ideas Identify results you want to achieve Scout potential funding sources Develop a business plan that outlines costs & revenue needed Develop a fundraising plan Find someone who has the time, energy, & skills to accomplish the necessary tasks to formalize the organization Identify short-term & long-term staffing needs Generate alternate scenarios for filling staffing needs (volunteers, interns, part-time staff, contracted personnel) Create name and test it Identify initial marketing & promotional needs Use concept paper to help sell the ideas Identify needs, include in business plan Decide where you will be housed Locate accounting expertise Locate people who will serve on the board Review info on how to start a nonprofit Draft articles of incorporation & bylaws

Fundraising/ Not yet a concern Resource Development Human Entrepreneurial, visionary, no positional Resources: leader, often volunteer Leadership, Paid and Volunteer Staff

Marketing and Not yet a concern Communications

Systems and Not yet a concern Processes Governance Not yet a concern

Obstacles: Fear of formalizing, lack of funding, no outside support Opportunities: Creative & energy of the dream, attracting new people to the dream Approach: Decide whether its worthwhile to pursue the dream

Found & Frame How are we going to pull this off? The Work One primary activity or mix of varied, loosely related activities

Assess and improve the quality of products and services Begin to define criteria for which activities to pursue and which to table Expand funding base Institute standard accounting practices and procedures Strategize for future financial needs Use volunteers effectively Recognize the dedication of volunteers Anticipate staffing needs Hire administrative support Consider contract or part-time staff Provide a mentor or coach for lead staff person Address staff / leadership weaknesses through skill building or hiring of additional staff Develop fact sheet Develop contacts with volunteer recruiting sources Develop an organization identity: logo, mission, vision, values, slogan or tagline Establish an office Formalize record keeping & filing Create a formal governance structure Expand the board Offer board training on basic roles & responsibilities

Fundraising / Start-up funding granted, limited funds, Resource no accounting systems, in-kind donations Development of expertise Human Dedicated group of volunteers, no paid Resources: staff. Leadership is single-minded, Leadership, Paid driven, visionary, charismatic and Volunteer Staff Marketing and Word of mouth, no formal marketing Communications Systems and Few formal systems, a home office, Processes small & agile Governance Formal governance structure created, homogenous, small, passionate board of directors, working board

Obstacles: Fear of formalizing; reactive leadership Opportunities: Excitement of funders, people wanting to join the organization, charismatic leadership Approach: Prioritize a few key organizational items on which to focus. Most likely to need attention are resource development, basic administrative procedures, and development of quality programs or services.

Ground & Grow How can we build this to be viable? The Work One primary activity, refinement in program delivery, need to say no to program ideas due to lack of resources

Develop strategic plan to clarify where org is going with products & services & how they are interrelated Identify outcomes and methods for measuring and evaluating them Develop a multiyear budget Create a fundraising plan

Fundraising / Greater need for financial resources, a few Resource funder relationships established, proficient Development use of in-kind resources, discussion of
revenue-generating schemes

Human Resources: Leadership, Paid and Volunteer Staff

Paid staff hired, volunteers still a critical part of staffing strategy, lack of job descriptions First paid executive director, who is directive, unavailable, high energy, needed both internally & externally

Hire program staff Expand volunteer base Refine volunteer management functions Develop job descriptions and organization charts Clarify executive directors primary roles, responsibilities, and accountabilitites Ease the executive directors responsibilities through delegation and addition of staff Develop an organization image & promotional tools Hire administrative support staff Develop administrative & financial policies & procedures Incorporate automated data management systems including admin, financial, and client data Systematize the board recruitment process Offer board training Initiate annual board retreats to build the boards effectiveness in its role Develop board policies and train the board to focus on its policy/governance role

Marketing and Fact sheet or first brochure developed, word Communications of mouth still primary marketing avenue Systems and High need for administrative systems, first Processes office space rented, first administrative staff
hired, systems of accountability developed, technology & equipment purchased

Governance Expansion of the board, first outsider on

board, reactive rather than strategic

Obstacles: Absence of systems of accountability, overwhelmed with new elements entering the organizational system, danger in remaining isolated system, initial funding ending Opportunities: Sense of accomplishment, creating a flexible, innovative organization receptive to change, diversification of the agency Approach: Focus on actions that will prepare the organization for a stable & secure future

Produce & Sustain The Work

How can we sustain the momentum? Programs well-designed & functioning at high level; long-range program planning, core programs secure but new programs being tried, many opportunities for expansion Stable funding, development of an operating reserve, need for exploration of new and expanded funding sources, fundraiser position added Organization size is at its peak, program managers hired, volunteer structure selfperpetuating, volunteer coordinator hired, first staff firing may occur Founders syndrome may be present Well-rounded executive director, needs good delegation skills, assistant director in place, complemented by good program managers

Develop long-range plan Try out new program models & approaches Develop internal system for assessing and responding to new opportunities Develop an operating reserve Review fundraising plan and look for areas to expand Consider hiring or contracting the fund development function Increase management personnel Actively address issues arising from diversity Ensure that volunteer recruitment & retention are tended to Hire a volunteer coordinator Implement & follow-up on ED performance review to highlight areas of concern and opportunities for professional development Clarify the EDs primary roles, responsibilities, accountabilities, especially in regard to management of staff Develop marketing plan Define or reassess organization logo & image.

Fundraising/ Resource Development Human Resources: Leadership, Paid and Volunteer Staff

Sophisticated marketing efforts, professional image, marketing plan developed, organization expands beyond word-of-mouth promotion Systems and Policies & procedures are well-developed, Upgrade hardware and software Processes multiple support staff, revamping of Ensure administrative staffing levels are adequate hardware & software Governance Governing role is in its prime, few founding Formalize an executive director review process board members remain, well-developed Initiate annual board self-assessment committees, board role is to ensure well Develop or revise the board committee structure being & longevity of the organization, boardstaff roles clearly defined, diverse composition Obstacles: Lack of control OR too much control by leadership, lack of risk-taking, organizational stagnation, board focuses too much on day-to-day operations Opportunities: Feeling of security, adequate human and financial resources, new staff, volunteers, board bring fresh ideas Approaches: Take steps to stabilize the organization in the present, address any areas of conflict that are emerging

Marketing and Communications