nonprofit turn-arounds: the road to recovery when your organization is in the red
TRANSCRIPT
Nonprofit Turn-‐Arounds: The Road to Recovery
When Your Organization Is in the Red
5/26/16 1pm Eastern
The presentation will begin shortly.
3
This presentation is being recorded! The recording and slides will be emailed to you.
Please chat in any questions for our guest. We will answer them in the formal Q&A session
at the end of the presentation.
Follow along on Twitter with #Bloomerang @BloomerangTech.
For best audio quality, dial in by phone. (check your email for dial-‐in info from ReadyTalk)
Before we get started »
3
Our guest presenter »Rebecca Davis, PhD, CFRE @rebeccadavisphd
President and Co-‐Founder of Davis Nonprofit Consulting, LLC.
Master Trainer, graduate of the AFP Faculty Training Academy
CFRE since 2007
Nonprofit Turn-Arounds: The Road to Recovery When Your Organization is in the RedRebecca H. Davis, PhD, CFRE
•70% of all turn-around initiatives fail
•Typical corporate turn-around 2 – 3 years
•Each turn-around is unique
What is a “turn-around situation”?
Non-Profit Life Cycle
Recognizing the Problem
• Confront the Brutal Truths (Jim Collins)
• Assessment Tool: http://www.jimcollins.com/tools/diagnostic-tool.pdf (page 9)
• Gather evidence
• Bring facts to light
• Discuss information without finger-pointing or blaming
• Take things off auto-pilot
• Interrupt old plans, events, & strategies
All Turn AroundsFor-Profit and Nonprofit
• Control Costs
• Reduce Spending
• Closely manage cash flow
• Increase revenue
NON-PROFIT Turn Arounds
• What works for corporate turn arounds (like bankruptcy) might not be appropriate for non-profit organizations
Dual Bottom Line: Mission & Money
Nonprofit Sustainability
Image Source: Blackbaud
See free resources and templates at
http://www.nonprofitsustainability.org/templates-by-chapter
Overview of Nonprofit Sustainability and using the Matrix
Map at
https://nonprofitquarterly.org/2014/04/01/the-matrix-map-a-
Nonprofit Sustainability: Strategic Imperatives
Image Source: Nonprofit Quarterly:https://nonprofitquarterly.org/2014/04/01/the-matrix-map-a-powerful-tool-for-mission-focused-nonprofits/
Stars:
Nurture & Grow
Involve Board
Hearts:
Keep & Contain Costs
Stop Signs:
Give Program Away
Money Tree:
Increase Impact
Benchmarking
• Know what’s possible (or likely)
• Identify best-practices
• Determine where you have “runway”
NON-PROFIT Turn Arounds
Dual Markets: “Customers” = Clients + Donors
Donor Stewardship
• Appreciation
• Recognition
• Care of donations, funds, and assets
• Reporting
Create a Plan
“Money doesn’t just walk in and surrender itself.”
Face-to-Face Fundraising
Professional Fundraising Staff
Issue Focus of Organization
Membership Organization?
Annual Survey
One Factor that Matters:
Whether or Not an Organization
Creates a Development Plan
Each goal and strategy needs to be specific and measurable
◦ Grow email list 10%
◦ Make 5 phone calls each month to prospective planned giving donors
◦ Recruit 10 new team captains before April 1st.
Means to an End
Not an End in and of Itself
Not a fundraising technique or strategy – helps, but won’t raise funds without some other
strategy.
Restoration of Confidence
• Internal (Staff and Board Members) and External
Replace With
Secrecy & DenialDialogue
Avoidance & Turf
Protection Collaboration
Passivity &
HelplessnessInitiative
Source: Rosabeth Moss Kanter. 2003. “Leadership and
the Psychology of Turnarounds,” Harvard Business
Review.
Community Members
• Band Wagon Effect
• Invest in Winners
• Need to Know Donation Has Impact
• Want to Invest in Well-Managed Organizations
A Turn Around Case Study
Restoring External Confidence
Re-introduction (to Community):
• Briefing Breakfasts
• Update Website & Other Communication Channels
• Re-Brand
• Face to Face Meetings
Results of Turn Around
• Turned multi-year operational deficit into operational surplus in first year.
• In first two years, increased fundraising support through special events by 126% and contributions by 52%
• Went from brink of insolvency to having 3.5 months of operational reserves during a recession
• Recruited more than 200 new volunteers and managed more than 5,000 volunteer hours.
Build Your Revenue Strategies by Creating a Culture of Philanthropy
• Make fundraising everyone’s job
• Provide training for all staff (and board)
• Provide tools like talking points
• Talk about the mission alignment of fundraising
Exit Strategies
•Mergers
•Collaborations
•Cohabitation
•Giving Away the Mission
Nonprofit Turn-Around Process
• Face the brutal truths
• Disrupt
• Fiscal management (cost cutting, etc.)
• Evaluate business lines with attention to the “dual bottom line” (Mission & Money) of Nonprofits
• Benchmark Against Similar Nonprofits
• Take Care of “Dual Customers” – Client & Donor
• Donor Stewardship
• Create a Development Plan
• Restore Confidence
• Develop a Culture of Philanthropy
Success
Has written many Development
plans in her nearly 20 years of
fundraising experience.
Master Trainer for the Association of
Fundraising Professionals
Has been a Certified Fundraising
Executive since 2007
Has served on the marketing
faculties of both the Georgia Center
for Nonprofits and Anderson
University’s School of Business (SC)
as well as the Political Science
faculty at Virginia Tech
Rebecca works as the Chief
Development Officer for the Girl
Scouts of Historic Georgia –
Questions?
https://bloomerang.co/resources
•Nonprofit Wrap-‐Up •Bloomerang TV •Bloomies
•Daily blog post •Weekly webinars •Downloadables
Our next free webinar »
What’s Wrong With Major Gifts?
Thursday, June 2nd – 2:00pm Eastern
Larry Johnson
https://bloomerang.co/resources/webinars