Top 5 Mistakes Non-Profits Make

Non-profit organizations often serve a valuable purpose in the world. Their founders are passionate about a cause and see a need that can be filled, which drives them to start an organization, full of hope and promise that they can do all sorts of wonderful things in the world.

Until….

They can’t.

The founders, organizers, volunteers, and employees get burned out, lose their way, and everything fizzles. Or worse, it all blows up into a fireball of conflict, complaints to the attorney general, and a flood of tears that marks the death knell for all those rosy dreams.

But it doesn’t have to happen that way. There are common mistakes many organizations make that can easily be avoided with a bit of planning and the right mindset. While they may not apply to YOUR organization, being aware of how things can easily go sideways may help you maintain good health in your group so it can grow, thrive, and survive even long after you’re gone. Building something that lasts forever – or at least a really, really long time – doesn’t happen in a day, but it can happen if you want it to and plan for it properly.

Here are my top 5 mistakes I see frequently:

1) Not getting clear on the “why.” I recently met someone who had just started a great organization “helping people prevent addiction problems.” That sounds great, right? Nobody likes addiction, many people have been touched by it personally or through family members, and it seems like it should be a no-brainer to have people supporting addiction prevention, right? I mean, everyone’s against addiction!

But the organization was floundering because there were too many other addiction-fighting organizations in the area seeking the same donation dollars. Those organizations were more established and had more name recognition. She was late to the party. And even though she had enough early support to feel confident leaving her day job to pursue her passion, the early support dried up fast. And that meant the founder couldn’t pay her salary, much less support the cause she so championed. She was about to throw in the towel. The missing piece for her was that she wasn’t communicating her why effectively….

Her why was unique in that she had worked in a dental surgery practice and came to the conclusion that many teens were first being exposed to opioids following wisdom tooth surgery and that was fueling the addiction problem for teens. She had defined strategies to help teach parents and kids about pain management, including alternative treatments like acupuncture, that could help with pain relief. Once she made that tweak to her messaging, it was like a lightbulb came on. Her why was clear and people wanted to rally behind it. It made sense. She eventually expanded her mission to teach teens how to feel good in general, not just in response to pain, and now can pay her salary, as well as the costs of running the programming she developed.

2) Wasting people’s most valuable resource – time. Most non-profits live and die by the contributions of volunteers – lots of them – who give their time selflessly. I have so often seen volunteers show up to work, offer a service, or try to contribute in some meaningful way after they feel enough of a connection to want to help your cause, only to be left standing around with nothing to do. They feel like their time has been wasted or their offer is not valued.

Guess what? They don’t come back.

How do you keep this from happening? Make sure volunteers who show up have a job. Don’t ask for more people than you really need for a task, project, or event.

Treat their time at meetings and presentations with respect. If you have someone in the group who hogs the floor and goes on and on to make the same point or about things that aren’t relevant to the business at hand, nip it in the bud. Everyone in the room gave up something to be there, so honor their commitment to your group and the choice they made to show up by making your meetings efficient.

3) Asking for money without a plan. Fundraising…. The bane of many non-profits’ existence. I can’t tell you how many groups I see raising money without telling people what it’s for or even knowing what they plan to do with the money once they get it. And those same groups then wonder why they didn’t get enough money to pay for the thing for which they were raising money.

Set goals and ask for what you want and let people know how it ties into your why. If you want a pizza shop to support your team dinner and you need 40 pizzas, ask for 40 pizzas. Or ask 4 shops for 10 each. If you just ask for a donation in general and leave it open ended, you may end up driving around to 40 different shops for 1 pizza each. If you’re raising a million dollars for a new state of the art facility, then let people know what you’re up to. It may seem obvious, but it’s such a common mistake.

Another problem that comes from fundraising without a plan is groups do too many "fun" fundraisers that... waste people's time. Be intentional with fundraising, go for the biggest bang for the buck and stop scrounging for pennies in the couch cushions.

4) Failing to take a break from operations to do strategic long-term vision planning. The best non-profits understand that their work today is building a foundation upon which tomorrow, next year, and the next decade’s work will rise. Getting clear on an overall financial picture is essential for the long-term success of any organization and looking at not just day to day expenses, but long term goals to realize your group’s full potential should be part of the regular agenda and built into your weekly and monthly routine.

One group I am personally involved with has carved out an entire day to do long term strategy in a retreat format and I can't convey how excited I am about the opportunities that lie ahead. It wasn't easy - it's a busy group and everyone involved has day jobs and all the things to do in life, but we also see the value and importance of taking a breather and making sure we reach consensus on our objective as a group, rather than just treading water and barely getting by. It's going to be amazing!

5) Thinking non-profit means no-money. Non-profits by definition have certain limitations on the money they can accumulate and the purposes for which they can use it. They are also expected to honor their mission statement. But that does not mean they cannot make money. Having employees who provide valuable services and get paid accordingly is 100% ok. Now, I am not talking about highly compensated non-profit board members (that’s a hot button issue in most states) who do little to support the organization beyond allowing their name to be on the masthead.

But working for an organization that has a mission of adding value to the world, not making profits for shareholders, is also an ok way to make a living.

Now, if you see any of these things happening with your non-profit, or if are thinking about starting one up and want to talk more about all the things, not just the nitty gritty how to set it up, reach out. We may be able to help you find your vision with just a few minutes on the phone.

Have a great day and treasure the work you do. The world needs you and your special skills, passion, and value!