I was recently talking to somebody about an organization that from all outward appearances was thriving.
They had expanded their programs and had gained recognition for having a real impact.
Yet, it turns out appearances were deceiving.
The Executive Director was doing it all without delegating. The board was overly dependent on a board chair who was carrying their water.
The director was so focused on programs, that institutional systems weren’t being developed and relationships weren’t being generated to prime future fundraising.
So sure enough when the board chair burned out, the Executive Director was faced with huge hurdles, to the point they are potentially going to move on. The organization faces a huge leadership void. It’s definitely not thriving.
The reality is it’s very hard for any outsider to evaluate whether a seemingly thriving organization is doing so in a way that builds its long-term capacity, or if it’s generating lots of activity by effectively spending down its assets. And by assets, I don’t mean money.
I mean its relationships, its institutional systems, its brand, its staff morale, and a dozen of other assets that go into determining an organization’s long-term vitality.
You can build a really big paper house, but it won’t stand up when push comes to shove.
As a donor, I struggle to determine which organizations are building for the long haul.
As a consultant, I’m trying to figure out how I can help boards and executive directors find the right balance between spending time and resources on program and spending time and resources on institution building.
I’d welcome hearing from others if you have tools or guideposts to help answer those questions.
Thanks for your postings Jonathan. As a major donor I am surprised that some organizations just send me their regular funding appeal every year and don’t invite me to make a gift on an annual basis–let alone ask me to increase my gift. If they’re not asking me to maintain or increase my giving they’re probably not asking other major donors either–which makes me wonder if they have an effective fundraising plan that will serve the organization’s needs in the future.
In some cases I’ve stopped funding organizations that don’t seem to really care whether I give each year or not and directed that money to organizations that are actively engaged in fundraising.
Comment by Allen Hancock — March 24, 2011 @ 9:56 am