Brinkerhoff in his book on the subject talks about the concept of stewardship as a concept of leadership. He reminds us:” …in the not for profit sector, organizations actually belong to the communities they serve, the leaders have temporary stewardship over their assets.” He goes on to describe:” The key concept here is this: as a steward your job is to manage your not-for-profit with the same care , the same attention to detail, the same level of responsibility that you would give to someone else’s property- because that’s the reality.” Your” not-for-profit is not, in actuality yours; it really belongs to the community and you are the temporary steward of its resources.” What is really exciting is Brinckerhoff goes on to describe nine characteristics of nonprofit organizations that allow you to be successful, attending to these characteristics will enable your leadership to be good stewards and maximize your fulfillment of your mission. Here are Brinckerhoff’s nine characteristics of successful nonprofit organizations:
A viable mission
A business like board
As strong well educated staff
A bias for marketing
A compelling vision
Before I go on to describe these characteristics a little, I would suggest if you are on the board or an executive in a nonprofit organization, Brinckerhoff’s book is worth a read. Actually all his books are worth a read and a re-read. Brinckerhoff has done quite a bit of work for the Global RMHC organization, and as a result the Ronald McDonald House leaders have had more than a few opportunities to listen to Brinckerhoff speak on a number of topics important to nonprofit leadership.
Having a viable mission is pretty straight forward. We are all involved in our organizations because we want to carry out our mission. Most of us are not interested in building one more widget ,we want to make a difference for people and we want to change our world. Your mission and your mission statement need to describe in an achievable way how you will make a difference for people and how will you change your world. Brinckerhoff reminds us the statement itself must be : “ short, easily memorized and quickly (and often) quoted.”
A business like board
I would like to think I am an expert at all aspects of running an organization or nonprofit, but the reality is I rely on other peoples expertise and advice. Some of this I get from my staff who are experts in their own areas, but a great deal of this I rely on from members and past members of our board. Nonprofit organizations need to populate their board with the best and broadest skill set they can achieve. This is necessary both for the advice, counsel and decision making they bring to the organization as well as the new relationships they will bring to the nonprofit. Brinckerhoff suggests:” Business people are individuals who understand cash flow, feasibility studies, budgeting, human resources, and marketing. These people keep you true to the second rule of not-for-profits which is “No money-no mission.”
I worked with our sister House in Northern Alberta as their Executive Director for about four years. When the two boards started “sharing” me I meet a board member who had been on the board almost 20 years (there were no limits on their board terms in their bi-laws- this is a topic for a whole different post). He used to describe to new board members when he was asking them to join RMHNA. “It is the greatest board in the world, you don’t have to do any fundraising, or make donations, you don’t have to do anything just come to a meeting once a month and have a free dinner”. If you have someone like this on your board and you are the CEO- you need to have some provocative conversations with your president and the board member.
A strong well educated staff
As nonprofit organizations our human capital is our most important asset. For many NGOs it is the resource we spend most or a great proportion of our revenue on, in terms of salary and benefit expenses. However for small nonprofits we can be tempted to spend less on competitive wages and as a result have less qualified employees than other charities in the sector. Additionally it can be hard to invest in staff training and development as these investments are exactly that “investments” and the benefits and outcomes for direct service are not always or immediately observable.
Most of the RMHs in Canada were built and started in the 80’s. For decades most were run like little mom and pop shops with little focus on hiring staff with any specific education or training. Most didn’t have a lot of staff and their employees seemed to be selected from the local bridge club. Most don’t operate this way anymore, we can’t not only if we want to deliver our mission but also if we want to remain completive with our charities in our market. You could write endlessly on this topic, but if you want to be a great organization you need to hire people with the right degrees to do the right job, and you need to continuously invest in on-going staff development.
Brinckerhoff (2004) tells us;” Intelligent use of technology can increase productivity resulting in much better stewardship of the communities resources.” If you have read any of my previous posts you will know that I am a fan of using new on-line tools to enhance your marketing and fundraising. The good thing about new technology is that it is always improving and changing which in general means it gets cheaper and becomes more accessible and affordable for smaller charities. This however is also the down side of new technology as well; you have to determine when the right time to jump into a new technology or tool is. Sometimes being an early adopter can give you an advantage over other charities in your marketplace, sometimes early adoption just means you pay more for “glitchy” technology. Marketing and Fundraising are not the only areas to be technologically savvy. Charities should consider if new technologies can offer them improvements in their direct service delivery, the accounting, volunteer management and outcome measurement.
In my next post I will talk about the remaining characteristics of a successful nonprofit
Brinckerhoff, P.C (2004) Nonprofit Stewardship: A better way to lead your mission-based organization:
New York: Fieldstone Alliance