The annual report from Giving USA came out yesterday and it shows total charitable giving is up by 4.4% in 2013.  Nice!  Bequests are up over 8%, while corporate giving is down a tad.  Whether your nonprofit is looking for deeper corporate engagement, striving to attract committed board members, or launching a public relations campaign, I wonder how you know if you are worthy of such support?

When was the last time you took a good look at how your organization is functioning?   Evaluation can be tricky, and maybe raise conflicting emotions.  But it needs to be done so you can build on your strengths.   So what do you look at?

Some areas to consider for an organizational assessment:

  1. Mission and Vision – strong organizations have a clear reason for being in existence and a vision that shows what they aspire to be.  Their work is determined by the strategic initiatives that are outlined in the planning process.  Planning is intentional and success is defined by meaningful outcomes.  Is your vision compelling?  Is your strategic plan up to date and are you monitoring progress?
  2. Visionary Leadership – nonprofits boards that are most effective stay focused on the big picture, understanding their activity revolves around strategy, while respecting staff’s role of managing the operations.  Boards embrace the role of providing resources to fund the mission.  They are deliberate about developing a board of diverse members who are best positioned to meet strategic goals, and then structure their committees, calendar and numbers accordingly.  In addition, a board assessment occurs regularly.   Can you check off these items for your organization?
  3. Programs and Services – periodic needs assessments occur to ensure the services are still relevant and to identify the latest gaps.  New programs are developed as appropriate and current programs are evaluated against desired outcomes.  Taking some calculated risk in order to best serve the community is encouraged. Do you have a meaningful evaluation tool in your kit?
  4. Management team – you know that in order to execute the outlined initiatives, you need a talented and committed group of professionals.  In addition to subject matter expertise, most successful nonprofit leaders possess strong interpersonal skills, since relationship-building is the cornerstone of much of your work.  The best staff are able to connect their responsibilities back to the mission of the organization.  They also work well with the board and see them as partners in the work.  Where does your staff team rank?
  5. Fund Development – if you are rocking this category, it’s because you have a strategic development plan that emphasizes a diverse donor base and an organizational culture of philanthropy.  You have also invested in the infrastructure to support it and are tracking key data to make good decisions.  You have also developed earned revenue streams so your organization is not dependent solely on charitable giving.  How do you think you are doing?
  6. Fiscal Management – deficit spending is not good.   It would be awesome to have deep reserves, wouldn’t it?!  It’s possible to achieve with a focus on your strategic goals, revenue generation, and by having strong policies, systems and controls in place.  Thoughtful budgeting is a must and responsible reporting to inform decisions is critical.  Do you fully understand your fiscal position?  Where is the risk?

There are more things to consider when evaluating your organization’s effectiveness and strength – some include marketing, technology, and legal oversight.  The point is, sometimes we can’t see the trees for the forest, and it’s prudent to conduct a review.

Let me know if you would like help with an organizational assessment, and how to address gaps.

And if you’re interested, here is the link to the Giving USA report.

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