SUSTAINABILITY
Sustaining a Nonprofit Organization
Florene Stewart Poyadue, Founder of PHP, Inc.
INTRODUCTION
Some reading this will already know most, if not all, that is written here, but may not be putting it into
practice. Others may be putting it into practice but may be lacking the little nuances that can be
preventing the agency from becoming all you want it to be and/or all that it can be. If you ‘know it all’
and are doing it in ‘just the most perfect manner’ – congratulations and continue the good work toward
success.
Other readers of this article may be getting acquainted with this information for the first time. Welcome
to excellence in nonprofit growth, management and, of course, sustainability. I am hoping that the
presentation of the information is such that it can be easily digested by all and helpful to the different
experience levels of readers. Here is a chance for those in the know to review, revise and recommit to best
practices for starting and sustaining a nonprofit organization. And, here is a chance for the neophyte to
learn, question, and discover better ways of starting and sustaining an agency.
It is a beginning. I hope you will continue to seek and find better and easier ways to success. Be very
assured that doing this is definitely possible; is very much in your grasp. Thousands have done it before.
There is a short list of books at the end of this article to further stimulate your ongoing pursuit of
knowledge, enhance your skills, boost your confidence, and refine your leadership abilities.
Defining Sustainability:
Nurturing and positioning an organization to be available for future generations by building a solid
and flexible infrastructure, diversifying operational and reserve funds, and maintaining relevant
change and growth through the effective use of people, planning & preparation, publicity/public
relations, place, programs, policies/procedures, persistence and positive passion.
Whether you are listening to the leaders of Fortune 500 companies or neighborhood associations, the
same words of the italicized p’s above surface when the conversation leads to sustainability. Please note
the very important phrase “effective use of” in the definition before we take a closer look at the “p’s”.
I.
PEOPLE
(It’s almost, “The more – The merrier”…BUT) It is key that you have the right person in the right
place. As time goes by, the right person may change. In most nonprofit organizations there is often
a place for everyone who is interested in helping; even volunteers must be directed to the
appropriate place that can best utilize what they bring (time, skills, energy, knowledge, contacts,
money, enthusiasm for the mission, etc.). A mismatch of any of the persons and any of the positions
listed below can be disastrous for an organization. Often times people who are program-oriented
start nonprofit services. They may need to remain as Director of Program Services instead of CEO
as the organization grows because of their lack of interest in running a business. The following is a
list of some of the key people needed for successful sustainability.
A. Executive Director (CEO, Chief Executive Officer) – As Dr. Earl Brewer of Houston, Texas
would say, “This person should be a monomaniac with a mission (a person singularly
focused on accomplishing the agency’s goals, not self promotion.” This is not an egomaniac
(thinking mainly of oneself, with selfish interest.) This should be a dynamic person who is
not afraid to make a cold call and who works not only hard, but smart and collaboratively
with staff, boards, partners and the community. The CEO should have what I call
“Energized Calm” – physical and mental power to get the job done, while at the same
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time exuding peace that instills confidence in others to accomplish tasks which they felt
were beyond them. This person should work with the board’s Nominating Committee to
create a proper & active Board of Directors.
B. Other Executive Staff - If the organization is to survive and grow it needs a line of other
executive staff beneath the chief executive. That line includes, first and foremost, a
Director of Fund Development/Marketing. It also includes a Director of Administration &
Finance, and a Director of Program Services. As the organization grows a Director of
Technology may be needed. Organizations that want to be alive and well in the future
do not want to be a “one woman band.” Capacity building grants will often fund that
vital Director of Fund Development so necessary for the accomplishment of the rest.
Starting part-time positions at this level is fine. A 10% Fund Developer is better than none.
Just a note: I do not believe in giving the Fund Developer a percentage of funds or a
bonus for a job well done. I believe that it can cause disgruntled feelings among the other
staff who do not get such perks when they are working their buts off.
C. Boards – Why not have one of each (Directing, Advisory, Community Associates and an
Honorary Board)? The cost is minimal to free.
1. Directing Board – Remember this board is really the “owner” of the organization. As my
son Dean used to say, “Mom, you don’t own PHP, do you?” “No, Dean. I don’t.” The
Directing Board’s major jobs are to: hire, evaluate, and if necessary fire that dynamic
CEO; work with the CEO to create Long Range Strategic Plans; approve budget &
broad policies; raise funds and oversee/monitor their use including monthly financial
reviews and an annual outside audit This board should include people who are MIP’s or
have the 4 W’s. MIP’s have money, influence and/or power; the 4W’s represent
wealth, wallop, wisdom and a willingness to work for the mission. The Directing Board is
“about the business” of the organization and people on the board should be
knowledgeable about and interested in the business side of things. Those who are very
client or program focused should serve on those committees or volunteer in those areas.
Give board members a break—don’t wear them out. Have a sensible rotation plan.
They can return. No one board member has to have all 4 W’s. I prefer 12 to 24
members. You need enough to set up major committees to get the work done.
2. Advisory Board – Usually comprised of professionals in fields that relate to the mission
and also an attorney or two. This board can be an invaluable addition. It is easy to
create, costs nothing, and provides vital answers, information, and direction for the chair
of the Directing Board and the CEO. It does not have to hold meetings. Individuals can
remain on the Advisory Board for a long period of time. This board impresses the
community and provides increased trust in the organization, etc. etc. It also provides
more contacts and connections for the organization in the community. Be sure to invite
them to the Annual Report Dinner.
3. Community Associates Board – This was one of my creations when unable as a young
organization to get all the MIPs needed on my Directing Board. I invited them to
become a CAB—a vehicle for speeding the accomplishment of the strategic goals set by
the Directing Board. I asked about 14 MIPs to join my CAB, hoping to get at least 5.
These were mostly cold calls for me—meaning we did not know each other or have a
past relationship. My final count was 16 CAB members because two of them asked me if
their young adult children could join also. They wanted their offspring to begin
understanding philanthropy. The CAB only meets twice a year—after the Directing
Board’s long range planning retreat so that they can give input on how best to
accomplish the Directing Board’s goals & objectives. Six months later they meet again to
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get an evaluation of how well their input worked and to give further suggestions for
next steps. A funny thing happened on the way to the CAB fair – this group became
one of the biggest groups of donors our agency ever had. One member allowed me
to go to an auction and bid up to $1,000,000 on a building. If no one out bid me, it
was ours. Someone did over bid me, so the CAB member volunteered to pay a large
percentage of our rent cost for about 10 years. Try it; you’ll like the ride with a CAB.
4. Honorary Board – Here stand more people to help you position your organization to be
available for clients in the future. Free. Easy to create. Just ask a few sports heroes,
movie stars, local politicians (especially mayors), models, astronauts, famous doctors,
professors, etc. etc. Just having their names printed on marketing materials can help sell
tickets to fundraisers and more. What is magic, once listed on your materials and
increasing their knowledge about your mission, leads them to get further involved. For
example, for about 10 years a major music idol and his entire family came and hosted
our Children’s Holiday Musical Fundraiser every Christmas.
D. Mentors –From the Chair of the Board, through the CEO and on to the staff – all should
take advantage of the wonderful worth of mentors. Again – people helping you
accomplish your mission and grow and sustain your organization without costs to the
organization.
E. Consultants – Generous use of free consultants such as the Retired Executive
Volunteers, RSVP (Retired Senior Volunteer Program). When you are ready, you may
want to judiciously choose a paid consultant for a specific job for a limited period of time.
F.
Volunteers – Utilize volunteers at all levels of the agency. As soon as possible have a
paid Coordinator of Volunteers. This is an important position for bringing all of these
great assets (people) to your agency and having a plan for welcoming, and using them
as soon as possible after they voice an interest in helping. The coordinator will have job
descriptions, and lines of communication and supervision, and of course celebrations for
the wonderful work of the volunteers. Isn’t this how most nonprofits got started in the first
place?
G. Partners – Reach out and collaborate with likely and unlikely partners. I never dreamed
that I would have an interest in and benefit from collaborating with the NFL (National
Football League). Collaborate with your customers and your competitors. Collaborate
with community leaders and community boards, hospitals, schools, and corporations. As
they say on Sesame Street, “Just look around, there are people everywhere. We are all
Earthlings, spinning around together on a planet of the sun.”
H. Paid Staff – Committed to the mission, not just their paycheck. Provide them with good job
descriptions. Hire, evaluate and fire when necessary. See them as very capable people,
able to provide input and answers. Keep them well informed and provide the necessary
resources for them to do the job without your micromanaging them. They acquire further
important buy-in into the mission and vision when allowed to put their creative juices into
the annual action plans to accomplish the CEO’s and Board’s strategic goals. Again, have
the right person in the right position; keep mismatching of person and position to the very,
very minimum if at all. Celebrate with them.
PEOPLE, PEOPLE WHO USE PEOPLE ARE POSITIONING THEIR ORGANIZATIONS FOR SUSTAINABILITY!!!
II.
PLANNING & PREPARATION
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If an organization or agency wants to be sustained as a nonprofit entity, it will certainly take
the time to prepare and complete the necessary paperwork to become a 501©3 nonprofit,
State and Federal tax-exempt agency. Two very good reasons is that philanthropists,
foundations and corporations fund 501C3 nonprofits, and you save money by not having to
pay State or Federal taxes.
This ‘p’ is about 3 to 5 years Long Range Strategic Planning which the Board of Directors and
CEO must accomplish. “So let it be written, so let it be done.” Of course I always add that,
“Not everything that is written gets done, but little if anything gets done if it isn’t written.”
Long Range Strategic Plans are your focus on what you want the agency to be in 3 to 5
years and how you intend to get there. In most small or beginning nonprofits one long range
goal should be created for these priority areas: the Board of Directors, the funding/budget,
programs, marketing, fiscal/administration, staff (paid and volunteer), and facilities/space. It
is often wise to hire, if you can’t get someone to volunteer, an experienced long range
strategic planning facilitator to assist with this process. Have enough detailed objectives
attached to each goal so that what you plan to accomplish does not get fuzzy, blurred or lost
over the years. Divide the objectives over the 3 to 5 years, so that you have a clear sense of
what’s to be done first, second and third, etc.
These plans can end up just sitting on the shelf if they are not activated by board committees
(with staff liaisons) creating One Year Annual Action Work Plans for the accomplishment of
the specific objectives written in the plan for each year. These Annual Action Work Plans state
the objective, what is to be done, how it is to be done, and who is responsible to see that it
gets done, and has milestone evaluation steps (when) outlined along the way to let you know
if you are staying on track for accomplishing the objective. For example, if you are planning a
fundraiser for December 10th and you have not gotten the entertainment secured by Sept.
10th, or the publicity printed by October 10th, nor in the mail by certain dates (milestone
evaluations), you have a pretty good idea whether or not you are going to accomplish that
fundraiser. Each year the board holds an Annual Planning Retreat at which it and the CEO
review the accomplishment of the objectives of the immediate past year’s Annual Action Work
Plans; monitor/review the other segments of the Long Range Plan; and begin work on the next
year’s Annual Work Plans.
Long Range Strategic Plans should include a mission statement, long range goals, long range
objectives attached to each goal, a list of the agency’s core values, its vision, philosophy,
and by all means a long range organizational chart. It should contain a summary of your
review of current trends, assumptions, and your internal evaluation of the agency’s
strength’s and weaknesses and your external evaluation of local, state and national
opportunities and threats to the agency. Create an Executive Summary of your Long Range
Strategic Plan. Give copies to your staff. This summary will often be the document that you
share with outside entities. The full plan will be used by the Directing Board, CEO and the
other executive staff (be sure each has a copy.)
Being clear about the difference between vision, mission, goals and objectives, though it seems
trivial, can keep you focused in the right direction and performing contemporary functions
needed by the client not just repeating an activity or service to keep the agency alive. So, a
nutshell quick review:
Vision – The ideal overall picture of the agency, its customers and programs.
Mission – A brief, very broad, global statement (often seems undoable) about who ultimately
benefits from what you do, what they gain or benefit, and how you uniquely cause that to
happen. (Do not make “what you do” as your mission. Otherwise, you can keep doing
something because it is your mission, but may not be needed anymore.) For example – What
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you may do is train families. I hope that is not your mission. Your mission may well be:
Helping children with disabilities (the who) get the health care services (the what they gain)
they require by providing them informed families (your unique how.) It would be a totally
different agency if any one of the three key mission ingredients were changed. For example:
Helping children with disabilities get the health care services they require by providing them
insurance coverage. The “who” and the “what” remain the same, but the “how” it is uniquely
done is different and therefore produces a totally different agency. Be sure that you have all
three parts in your mission statement.
Goals – Goals are also broad statements, but they consist of what it is you want to have if all
is as you wish it to be. Goals are “to have” statements, not “to do” statements. Doing belongs
to the objectives, which will be covered shortly. Examples of goals:
To have well-informed, knowledgeable parents.
To have a $1,000,000 annual budget with at least 25% reserve.
To have a 5,000 sq.ft. facility rented, leased or owned.
My grandson’s goal is to have a Masters Degree, not to attend college. His objectives are to attend
college and get good grades so as to accomplish the goal. If his goal was “attending college” his dad
might never finish paying.
Objectives – Objectives are those timed, measurable, doable statements that are attached to
each goal to speed its accomplishment. For example:
Goal: To have well-informed, knowledgeable parents.
Objectives: To train at least 200 parents in advocacy skills by June 30, 2006.
To provide mentors to 25%of families seeking services by 6/2007.
To hold monthly group discussion sessions for families by 6/2008.
Preparation is the other half of this ‘p’ section. There are probably many people in our great
state of California who have plans for what to do if an Earthquake occurs, but how many of
them have prepared for the event by actually securing tall pieces of furniture and the water
heater. How many have purchased the emergency supplies written about in their plan? They
have planned, but not prepared. In regards to your agency, you might be planning to raise a
certain amount of funds, but have you prepared by taking a fundraising class, by training
your board in how to do the “big ask?”
Don’t forget to prepare yourself, your staff and your boards for their positions or tasks at
hand.
III.
PUBLICITY/PUBLIC RELATIONS
Too often nonprofit organizations have a great product (their services) but they fail to do
appropriate marketing activities. They also create wonderful fundraisers and then go limp on the
marketing aspects. Some agencies do not advertise because they are afraid it will increase their
customer load. It is true it will increase your customers, but it will also bring the other necessary people
to help you care for those customers. You can’t run and stand still at the same time. Talk to some
people in the marketing business. Nonprofits must remember to keep the quality of their printed
materials looking like the agency is not so rich that it does not need donations, and it is not so poor
that others might question the quality of the work it does. It not only saves the agency money, but it
always looks great to potential funders when “The printing of these materials was donated by XYZ
corporation” appears on the products. Create a marketing plan. Get free help from volunteers, United
Way, college or university students, RSVP, etc. Do have a simple, neat press kit about your agency.
Lapel pins and ballpoint pens with your name and logo don’t hurt. Everyone, all boards, CEO, staff,
and customers can and should get on the publicity/public relations bandwagon. By the way, how
great is your logo and tagline?
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IV.
PLACE
Each agency must decide its facility or space needs. That need usually expands as the agency
grows. Thanks to computers, agencies can be housed in any number of or kinds of locations.
Working from one’s home, sharing space with another agency, finishing the lease of an
agency that had to move on because the space was too small for them (you utilize the space,
they pay the lease); bargaining with a developer to let you use space free in one of their
empty buildings, etc. are all potential answers for space problems. Some questions you might
ask – Where do our clients need us to be? Can we utilize training space in a school or senior
citizen center? Can we use the local churches’ fireside rooms for our group discussions? Will
the facility facilitate our getting funding more easily? Do you use ongoing tours of your
facility, at least once a week, to help market your agency and secure volunteers and much
more? If you have a place, is it family friendly? Is it culturally competent with all kinds of
photos and paintings? Hanging a mirror in the lobby can immediately reflect a cultural group,
as they see themselves reflected there.
V.
PROGRAMS
Programs must be relevant to the needs of customers and not just relevant to what someone is
willing to fund at a particular time. Programs must relate to the mission of the agency. If
programs do not flow forth from the mission, the CEO and Board of Directors need to review
and revise them. Programs should reflect the word “quality,” and that quality is often
maintained by programs being evaluated periodically—at least every two years. Client
satisfaction evaluations can be as simple as a post card with about five relevant questions and
a return address and stamp already applied. Don’t be discouraged if you only get back as
little as 10% of the surveys you send; statisticians would assure you that even ten out of one
hundred will give you a very valid clue as to how you are doing. Be sure to ask yourself if
your programs are being offered at the time and place best suited for your customer. Have a
Board Program Committee. Be sure that there is a staff person attached to each Board
Committee including this one.
VI.
POLICIES/PROCEDURES
Managing an agency without policies and procedures is like driving a car without having rules
or not knowing the rules of the road. Chaos ensues. Broad policies must be approved by the
Board of Directors. Be sure the staff is aware of your policies and procedures. If you have
policies and do not follow them it is almost worst than not having them at all. People become
confused and angry when they adhere to a policy and see someone else get away with
breaking the same rule. Be very clear on the lines of communication – who talks to whom.
Staff talks to the person who supervises them first before running to the CEO. Staff talks to
CEO. CEO talks to the Board of Directors and Board talks to CEO, not to the staff unless
invited by the CEO. Also remember that collectively, the Board has all the power it needs to
accomplish things. Individually, each Board Member has no power except as assigned by the
Board for a specific purpose. An individual board member cannot make a contract with
someone to paint the building unless the board has given him or her permission to seek such a
contract. Sometimes creating policies and procedure seem like nit-picking, but in the long run
that is exactly what it prevents. Visit a quality agency and take a look at their policies and
procedures. There is no need to reinvent the wheel from scratch. Some policies regarding time
paid, hiring and firing will relate directly to your State laws regarding employment. Is your
Employees Handbook current?
VII.
PERSISTENCE AND POSITIVE PASSION
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Persistence - The nursery rhyme about the race between the tortoise and the hare introduced
us early in life to the concept – To the persistent goes the prize. You don’t have to be as slow
as a turtle, but you do need to mirror or mimic its ability to hang in there. But, the turtle did
not just “hang in there,” she was constantly moving forward. Sustaining is a lot about the
forward movement of your agency.
Passion is about the enthusiasm that one exudes. Consistently, I have found that one’s passion
about one’s mission never fails to capture an audience of new clients, partners, potential
funders, volunteers, board members, and even other staff. Passion is brightening up and
being excited about what you are about. Passion almost never seems tired. People who are
passionate about their mission not only talk, but listen well as others talk and ask questions.
The information accompanying all of these p’s is just a glimpse and a guideline to help point
or aim you in the direction that will most likely assure your agency being sustained. Again,
continue to read (including the daily newspaper), attend conferences, listen, learn and grow
yourself and you will probably grow your agency as well.
There is one other ‘p’ that I used to embrace and it is called penury – an oppressive lack of
resources. Starting with nothing, no grant, no pot of gold was one of the best things that ever
happened to the agency I founded—Parents Helping Parents, Inc. San Jose, California. We
learned to do so much with so little for so long that we did begin to believe that we could do
everything with nothing. Our agency grew from $200 a year (1976) to almost $2 million
dollars a year budget (2005). I believe that it helped to prepare us to be good managers of
our money and other resources. It is okay if it hurts a little in the beginning.
CONCULSION: Are You In It For the Long Haul?
I hope, and I think you will like my answer to that question – Are you in it for the long haul?
You do not need to be in it for the long haul. You may only want to be the leader of the agency for three
to five years, or less. That is okay. The important thing is that you take the appropriate steps to position
the agency to be in it for the long haul –to be available for future generations. First and foremost, create
that Long Range Strategic Plan. Even if you just stay a year, the groundwork has been laid for the next
leader. Start building a dynamic Board of Directors – the next person can just continue that good work.
That is why it is so important to write it all down in plans and organizational charts etc. so that you can
leave if you so desire and the agency keeps staying and growing. I believe that some people cause an
agency not to grow because they are afraid the agency’s growth means they are hooked for life, or at
least a long time.
Relax, go ahead and nurture and position the agency to grow and sustain itself long after you are gone.
It is a mark of good leadership that your agency survives your leaving. I am proud that my PHP is alive
and well now eight years since I retired.
Suggested Readings
The Parent to Parent Handbook , Santelli, Poyadue, and Young, Brookes Publishing Co. Baltimore, MD, 2001
Note: Do not be fooled by the title, the last seven chapters are all about starting, building and sustaining
a nonprofit organization.
Profiles in Excellence (Achieving Success in the Nonprofit Sector), Knauft, Berger & Gray, Jossey-Bass
Publishing Co., (A Publication of Independent Sector) San Francisco
Contact: Independent Sector 1828 L Street, N.W. Washington, DC 20036 (202-223-8100)
Good to Great, Jim Collins (Co author of Built to Last), Harper Business, Harper/Collins Publishers, New
York, 2001
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Finding Your Voice, (Learning to Lead…Anywhere You Want to Make a Difference) Larraine R. Matusak,
Jossey-Bass Inc. Publishers, 350 Sansome Street, San Francisco, CA 94104, 1997.
Copyright 2005
Florene Stewart Poyadue
47 Maro Drive
San Jose, California 95127-2028
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