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Seizing the moment to change and grow organizational capacity February 1, 2010
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From the CCCC Bulletin -- Issue 1, 2010
by Mark Petersen
Charities have been hit over the past year with a challenging fundraising environment. According to the CCCC member survey of March 23, 2009, the majority of members did not seem to be immediately impacted by the recession.1 This was a common theme back in the Spring of 2009 as charities held their collective breath pending the impact of the recession on their donation revenue. But lately, as I’m speaking with executive directors of Canadian Christian charities, they are making contingency plans for possible shortfalls. With a significant chunk of charitable giving occurring in the last quarter of the calendar year, many have had to scale back their giving noticeably. These realities directly impact the health of charities.
I hear the agonizing dilemmas charities find themselves in. One organization president told me her board shrewdly instructed her to begin last year by cutting all expenses by 25% in preparation for a tough year. Another leader sat with staff to brainstorm together how they could reorganize their back office by cutting staff hours, and yet still allow for the same rate of program delivery. Another just sent out a mass mailing to his database, urging deliberate sacrifice by donors in order to fill in the gap in annual giving that was becoming painfully obvious as the year drew to a close. Frequently, it is not the program, but back office support that is cut in times like these. However, over time the lack of infrastructure support will negatively impact program quality.
Given these conditions, the dawn of a new year allows us a window to re-imagine effective ministry outreach. Globalization and widespread technological innovation causes a reordering of our world which impacts even charitable work. This new environment demands creative solutions, not paralysis. Smart capacity building can reposition your organization for more productive ministry even within this new climate.Capacity building is defined as the “process of strengthening an organization in order to improve its performance and impact.”2 It honestly assesses the current realities facing one’s organization, developing ways to improve the effectiveness of achieving an organization’s mission. When you build capacity you work smarter so your program is delivered better.
Building your charity’s capacity can come in all sorts of shapes and sizes – it doesn’t have to be an expensive solution, though it will inevitably require an intentional outlay of expenses. Sometimes the best solutions are not expensive. Other options require considerable planning and expense. Let’s review a few possibilities below:
Information technology
Leveraging the power of the internet and computer technology is a great place to begin building capacity. IT solutions to help your organization expand its presence can range from simple to complex, from free to expensive. Give your organization an online voice with social media strategies using blogs, Twitter, Facebook, Flickr and YouTube. For a nominal amount, sign up for Constant Contact and disseminate your organization news via e-newsletter. Churches can take advantage of Advanced Ministry’s web platform which is free for small communities, with expanded options available for a fee.3 Online platforms for managing a donor database are also available for small monthly amounts.
At the other end are more expensive options to enhance effectiveness. Developing integrated websites is often a painstaking process that will prove productive in the long run. Other solutions could include updating needed software or hardware, acquiring a smartphone, or developing an online store. More complex solutions for managing donor databases are profiled in the October 2008 CCCC bulletin.
Support staffing
Where would any of our organizations be without the valuable support of those who administrate, fundraise, and communicate? An executive director who finds himself licking stamps and printing labels for mailouts may need to hire an administrative assistant so he can be more fully deployed into a strategic leadership role. Larger organizations may have matured to the stage of needing qualified fundraisers or grantwriters. Creating meaningful platforms for volunteers to offer their capabilities is important for any size of charity.
Fundraising solutions
An organization can multiply its potential through the development of new fundraising strategies. Many charities use annual banquets or golf tournaments – but organizations need to dispassionately assess whether the outlay of funds, time and effort is worth the net benefit. More creative and productive fundraising is now happening through inviting potential donors to view your work in the developing world, launching a cyclathon, climbing the CN Tower, and in the case of Prostate Cancer Canada, growing moustaches. Having a large donor underwrite the initial outlay of expenses is one way to increase the net benefit to the organization.
Strategic planning
It may be that the new economic realities require your organization to revamp its agenda, or perhaps it has been several years since a strategic visioning process has informed your board and senior management. Your organization will be stronger and the team remotivated through sharpening one’s focus in a planning exercise.
Research
Paying for a feasibility study seems to be a luxury that charities don’t often contemplate. Yet even Jesus counseled to estimate the costs before constructing a tower. Expanding into a new market, developing a new product, or even building a tower benefit from an expert’s analysis. Another way to acquire insight could be through the use of surveys: as inexpensively as Survey Monkey or Zoomerang4, or as costly as a professional survey firm.
Consulting
Consultants get a bad rap because some have unfortunate stories to tell. However, an outside set of eyes and ears can provide your organization with invaluable perspective when attempting to improve organizational performance. Seek those whom you trust, and who come with references you will contact for a confi dential assessment of the value that they would add to your organization. Many consultants specialize in specific areas; fundraising, executive search, and governance are examples. Another approach is through coaching where a mentor offers regular input into one’s professional life.
Professional development
Expanding your staff’s capability is a valuable way to reward loyalty and enhance ongoing performance. Take advantage of the CCCC webinars, or other training from sources such as the CRA or for grantseekers, Foundation Center.5 Invest in obtaining the CFRE designation for your fundraisers.6 Explore leadership development opportunities for younger staff with future potential.
Bricks-and-mortar
Capacity can be extended through physical means as well. Perhaps the time has come to invest in expanded facilities – classrooms, offices, meeting rooms. As these are costly solutions, ensure you move ahead with a solid plan to ensure future sustainability.
Spiritual care
Don’t ignore the potential for spiritual care to provide your organization a way to be a stronger, healthier environment. From hiring a chaplain to hosting a prayer retreat, the options for addressing spiritual needs of staff are open to one’s imagination.
Partnership
A final way to strengthen an organization with limited resources is by teaming up with another to share the back office. One charity opens its doors for another to move in. Others share a bookkeeper or a receptionist. Others pool computer servers and photocopiers. The best partnerships result if dissimilar organizations cooperate, allowing the strengths of each to be appreciated and savings to accrue to both.
When a charity builds its capacity, it does so to improve the bottom line – serving one’s clients in a more effective fashion. Organizations that are becoming stronger should be ready to demonstrate that their clients will be positively impacted by the internal improvement. While challenging contexts can paralyze us, they also provide an opportunity to tackle need with new approaches and an inspired imagination.7
End Notes
1. http://www.cccc.org/releases/2009-03-24-CCCC_Economic_Survey.pdf
2. Paul Connolly and Carol Lukas, Strengthening Nonprofit Performance: A Funder’s Guide to Capacity Building, (Saint Paul MN: Wilder Foundation, 2002), p. 7.
3. http://www.advancedministry.com
4. http://www.surveymonkey.com and http://www.zoomerang.com
5. http://foundationcenter.org
6. http://www.cfre.org
7. A list of capacity building tools and other resources is found at www.bridgewayfoundation.ca/links.
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