I enjoy working with nonprofits. I want to see them thrive and their missions advance. Here are a few common but avoidable pitfalls I have seen as I’ve worked with nonprofits over the years.
1. Not focusing on one problem at a time.
So many things need fixing. So many people need help. There always has been and always will be problems to be addressed and darkness to be pushed back. Organizations that win are those that focus on one particular issue that needs to be addressed, the one they are uniquely equipped to address in that time and place. When any organization with its scarce and precious resources becomes unfocused or multi-focused, it usually does not gain much traction in any area. Instead focus on eradicating one problem at a time.
2. Not investing money in capable people.
I often hear from nonprofits, “We can’t hire capable people because they cost too much.” While that is understandable since most nonprofits rely on donations, which are unpredictable, and they want to be good stewards of the money they receive, they still must hire quality, capable people if they want their mission to grow. They need people who are passionate about what the organization does and how it gets done. These individuals are always worth 20 times whatever they are getting paid. Invest money in capable people.
3. Thinking board members are the most important leaders for the organization.
As a rule, nonprofit board members are not paid and have other primary jobs and commitments. Boards also meet infrequently so members usually don’t have current or detailed knowledge of the workings of the organization. While having a board that can engage with implementing the mission is helpful and wonderful, it is not critical. The board’s most important responsibility is to hire an effective leader to be the Executive Director who will then be in charge of the particulars of executing the mission. Organizations can survive without strong board members, but they cannot survive without strong executive leadership. Make sure you have strong executive leadership.