An organization with global reach, infinite funds, and no end of expert employees. It’s the nonprofit dream, isn’t it? We can’t guarantee astronomic growth, but if you follow the tips below you can give your NFP a good shot at sustainable growth, while improving your performance and increasing your impact,
That’ll do for a start, won’t it?
Defining Mission and Vision
You have to know where you come from to know where you’re going. For nonprofits that’s the driving force and credo – the objectives and core values. They must be clear, clear enough to engage stakeholders who share your vision.
More than that, you must have a compelling narrative that tells your organization’s story. One that paints a picture of your impact on the community and is strong enough to get stakeholders on board.
Conducting Strategic Analysis
Strategic or SWOT analysis is necessary if you want your NFP to grow and increase its impact. It’s an objective look at your internal Strengths and Weaknesses and external Opportunities and Threats.
Software with data analytics provides invaluable insights into donor behavior, program effectiveness, and resource allocation.
Sage Intacct industry-specific software has features to identify opportunities for innovation and improvement, making it easy for NFPs to take action based on analytics results.
Setting SMART Goals
After SWOT comes SMART: Specific, measurable, achievable, relevant, and time-bound goals. The idea is to give your goals direction and the kick you need to work towards them.
Once you’ve got an action plan you can set your key performance indicators (KPIs) that will measure your progress and give you momentum to stay true to your long-term strategy.
Some nonprofits need a map to stay focused and optimize their resources, SMART is that map.
Identifying Target Markets
Vision, mission, goals … all necessary for success. But you have to know who you’re aiming for. Obviously, you know who you’re targeting, otherwise, what are we doing here? However, you have to really nail it down.
This includes demographics and behavior. Don’t panic. Much research is available online for free or a small fee. You still must research your specific market to better understand its needs.
This is important to tailor your initiatives for maximum impact.
Financial Planning and Management
Budgeting is a bit of a soapbox for us. It’s crucial for current and future financial resilience. So, the first step is to create a comprehensive budget that aligns with your strategic goals and operational needs.
Use software automation to track revenue and expenses and manage cash flow. Sage Intacct’s automation simplifies these aspects of financial management.
With that taken care of, you can focus on diversifying your revenue streams for greater financial stability.
Investing in Technology
In tech, there are two types of people; early adopters and those who wait and see. The risk of early adoption is bugs in the system that go phut. But, operational efficiency can be the difference between streamlined cost-saving processes and clunky processes that create bottlenecks and delays.
Implement advanced CRM systems that take donor relations, engagement, and retention to the next level and leverage software analytics functions for greater insight into fundraising and program delivery.
Building a Strong Team
To paraphrase, the customer always comes first. But, do they really? Staff should really come first because dissatisfied employees can scuttle an organization faster than you can say, “Release the Kraken!”
To start, you need a strategic recruitment plan to ensure new employees’ values align with yours. To retain skilled employees, you need a supportive work environment that encourages collaboration, innovation, and training.
Providing development opportunities empowers employees and demonstrates their value to the organization.
Continuous Review and Adaptation
You want your nonprofit to grow, improve services, extend its reach, and have a greater impact on the community. You can only improve your performance if you know the current state of affairs. This requires regular internal and external reviews and feedback from stakeholders (donors, volunteers, beneficiaries).
It also requires responsiveness. Accept that you must take action and adapt your strategic plan to accommodate external changes (industry regulations, demographic shifts) and internal changes (flexitime, health plan).
Outsourcing for Expertise
Unless you’re part of a big charitable organization, you’re unlikely to employ full-time professionals, like accountants. Outsourcing is an excellent way to benefit from expert services without incurring any of the expenses.
Look for partners with experience specific to nonprofits. They know about regulatory requirements and intricate program development and can apply them to your unique situation. Also, take advantage of your connections to share knowledge and resources, like best practices and innovative strategies.
Take Advantage of Assistance
Nonprofits share a broad mission: To have the biggest positive impact on their target audience. It doesn’t happen on its own. It needs strategic planning and, typically, professional assistance to kick off.
Tapping into resources that include outsourcing to experts and implementing sophisticated nonprofit accounting software like Sage Intacct, provides a sound basis for your organization to grow.
