In an ideal world, one of the things a nonprofit board of directors does is annually evaluate the performance of the executive director. But let’s be honest, how often does that actually happen?
I once had an executive director so desperate for feedback about her job performance from a board who refused to evaluate her that she hired me to interview board and staff and write her performance review.
Perhaps boards are uncomfortable with reviewing the CEO, or they don’t know how to manage it, or they are simply unaware that it’s their responsibility. Whatever the reasons, effective evaluation of nonprofit CEO performance doesn’t happen enough in the sector.
But for a nonprofit to be effective and sustainable there must be a system in place for regularly evaluating it’s chief staff member (not to mention the rest of the staff and the board of directors itself, but those are for another day).
As I’ve said before, the head staff member (CEO or executive director) is the most important position in a nonprofit organization. She affects the level of engagement of the board, the financial sustainability of the organization, the productivity of the staff, and ultimately the organization’s ability to achieve it’s mission. She is the chief spokesperson, chief fundraiser, chief cheerleader and so much more. At the very least, she deserves to know, on an annual basis, how well her board and staff think she is doing.
The CEO evaluation is an opportunity for the board to discuss the performance of their lead staff person, whether the organization is going in the right direction, and what, if any, adjustments need to be made. The discussion can offer a real point of organizational self-reflection that can re-energize and re-orient all involved.
So in order to inspire your nonprofit to create an annual system for evaluating the performance of your CEO or executive director, I’d like to offer some suggested questions to guide your board’s process. Ideally the board’s Governance or Board Affairs committee would be charged with managing the CEO evaluation each year. These are the types of questions they would want to answer (by surveying, compiling and analyzing staff and board feedback):
- What does the CEO do really well? What are his/her strengths as the leader of our nonprofit?
- Where is there room for improvement? What are his/her weaknesses as a leader of our nonprofit?
- How well does she/he recruit, manage and develop the board?
- How well does she/he recruit, manage, and develop the staff?
- How well does she/he guide the overall strategy of our nonprofit?
- How well does she/he serve as a spokesperson and external relationship builder for our nonprofit?
- How well does she/he ensure the financial sustainability of our organization?
It is critical to mention that the data gathered in the review process should be kept anonymous. You want board and staff to feel free to be honest in their responses and not fear reprisal or embarrassment for their candor. And when the board delivers the final evaluation to the CEO, they should do it in a way in which the CEO feels appreciated for the things she does well and supported in addressing any areas of concern. Ideally both board and CEO come away from the process feeling that the CEO has a clear path for the coming year and the tools and support she needs to get there.
If you need help getting your board moving forward on this process, or help coaching your leader to become more effective, check out the Leadership Coaching services I provide.
Photo Credit: Packer, poster artist, U.S. National Archives and Records Administration
The other day I was talking with a nonprofit leader and was suddenly struck by how much his story echoed so many of the stories I hear from nonprofit leaders.
See if your nonprofit fits some or all aspects of the scenario he faces:
- His board is passionate about the mission and wants to be helpful, but they don’t really contribute much to the financial model.
- His staff and board want to expand services, but they can’t grow their budget past where it has been for years.
- Their funding is fairly dependent on just a couple of sources.
- Their funders support specific projects, rather than the organization or mission as a whole.
- Their strategic plan hasn’t been updated in 5 years.
- The board worries whether some of what the nonprofit does duplicates other efforts out there.
- Board and staff don’t have a common way to articulate what the nonprofit is and does.
- Their nonprofit is just barely getting by and has no cash reserves.
They, like so many nonprofits, are stuck in a rut.
They want to accomplish something much bigger and better but continue to spin their wheels against what they have always done. It’s really a chicken or the egg scenario. A nonprofit is unable to grow their services, their board, and their supporters because the organization has limited resources. And so they keep soldiering on, same as it ever was.
But let’s face it folks, in times like these, the status quo just isn’t going to work anymore.
Luckily, there is a way out.
When I encounter a nonprofit leader like the one above who has a real desire to break out of this pattern, I suggest a Financial Model Assessment. A Financial Model Assessment analyzes every aspect of the organization (Mission, Vision, Strategy, Program Delivery and Impact, Staffing, Board, Marketing, External Partnerships) in order to understand how each element helps or hurts their financial sustainability and their ability to achieve results. It then analyzes all current and potential revenue streams to find opportunities for sustainable growth. Finally, the Assessment gives very detailed recommendations for creating a more effective and sustainable organization.
I am a firm believer in a holistic approach. You simply cannot bemoan a lack of financial resources and call it a day. You must dig deep and figure out how everything you do contributes to or detracts from your current reality.
But because nonprofit leaders are usually consumed by putting out fires and worrying when the next check will come, they don’t have the ability to take a big step back and figure out how all of the pieces can and should fit together. So a Financial Model Assessment allows a nonprofit board and staff to understand what is holding their organization back from becoming financially sustainable AND achieving more mission-related results.
Once I’ve written my final Assessment, I lead a change discussion among board and staff. We delve into the Assessment and discuss how and why I came to the conclusions I did. This is often a galvanizing moment for the nonprofit — a moment when board and staff finally understand together a way forward that can allow them to be smarter, more strategic, more sustainable and ultimately achieve more results.
If you are interested in big change and need help navigating how to get there, download the Financial Model Assessment Benefit Sheet that describes the process in more detail. And if you’d like to read about other nonprofits who undertook a change process, check out these case studies.
Photo Credit: Public domain via Wikimedia
One thing that most nonprofit leaders have in common is that they often have at least one (or more than one) challenging board member. You know — the one who doesn’t show up for board meetings, or doesn’t do what she says she’ll do, or never makes a contribution, or derails meetings with his own agenda.
But do you ever kick them off? I doubt it.
Of the many taboos in the nonprofit sector, the taboo against asking bad board members to resign is one of the most destructive. Instead of encouraging ineffective or meddling board members to move on, nonprofit leaders often show misplaced gratitude for those errant board members continuing to take up space.
But the real risk in keeping a troublesome board member is that his presence will put a cloud over the rest of the board, hampering your higher performing members.
So instead of letting the sickness spread, you must address it. And here’s how:
Be Clear on Your Expectations
You can’t ask someone to resign if you’ve never explicitly told them what you expect of them, so make sure that you have each board member sign a roles and responsibilities document at the beginning of each fiscal year. This spells out exactly what you are expecting from them (in terms of meeting attendance, committee service, fundraising, etc.). The act of having each board member (even those returning from the previous year) sign this annually cements in everyone’s mind exactly what is expected. Better yet, have them sign it as part of your annual one-on-one meetings with each board member.
Tell Them They Aren’t Performing
Managing a board is very similar to managing a staff (or managing your children, let’s be honest). Once you set very clear expectations, then update them along the way about whether or not they are performing effectively. When a board member isn’t showing up for meetings, or is meddling where they shouldn’t, or isn’t meeting their give/get requirement, or is taking committee discussions in unhelpful directions, sit down with that board member (and your board chair and/or your board governance chair) to explain the situation from your perspective and ask them to explain their side.
Give Them One Last Chance
Once you’ve told them they aren’t performing the way you would like, agree on a path to improvement. Decide together what an improved performance looks like (attend all upcoming board meetings, meet the give/get requirement) and the deadline (3 months from now) to get there. It is your job to hold them accountable, so as that deadline approaches, analyze their performance to see if they did what they said they would.
Ask Them to Go
If the deadline comes and they still haven’t performed adequately, sit down with the errant board member and your board chair and explain that while you would love for them to stay on as an informal advisor and supporter, you are asking them to resign to make room for a board member who can fulfill their commitment to the organization. Explain the importance of the work your organization does and how critical it is that you have fully committed and contributing board members. Describe how this is probably best for them as well because it frees them up to focus more energy on the things that are taking them away. If you are truly allergic to confrontation, and this still seems too hard, read Crucial Conversations.
Contain Any Fallout
When asked to resign, not all board members will go quietly into the night. As soon as you’ve asked your troublesome board member to leave, tell the rest of the board what you all have done and why. Help them to understand how this is a positive step for the organization and how it will help further your larger mission. Ask for their support in seeing this decision through, and most importantly, tell them what the next step is.
Find a Replacement
And that next step is to find that board member’s replacement. Beyond the fear of confrontation, many nonprofit leaders are hesitant to ask a board member to resign because they fear they won’t find another warm body to replace that member. But board recruitment should be an ongoing and strategic exercise. Your board governance committee should be constantly analyzing the board matrix of skills, experience, and networks in order to see where holes lie and identifying and vetting new potential candidates. Then when a board member leaves (or is asked to leave) you have several great new candidates in mind.
Stop selling your nonprofit short by letting disengaged, uncommitted, or meddlesome board members get in your way. By setting clear expectations, measuring performance, being honest, and constantly identifying new candidates, you can build a much stronger, more effective and engaged board of directors.
If you want to learn more about building a great board, download the 10 Traits of a Groundbreaking Board book.
Photo Credit: Jane Davees
One of my favorite parts of my job is the time I spend working one-on-one to coach nonprofit leaders. One of my clients jokingly refers to our coaching sessions as “nonprofit therapy.”
While we certainly don’t delve into psychology when we meet, it is, I think often cathartic for nonprofit leaders to have an impartial third party who can listen to their frustrations with a disengaged board, understand the loneliness of leadership, appreciate their dismay with funders who are pulling them in too many directions, empathize with their fear that fundraising goals won’t be met.
We all — every single one of us — need someone in our lives who understands the challenges we are facing and can offer some guidance, new ideas, insights that can move us from a rut to a more productive path.
When I start a coaching session with a nonprofit leader, I often ask some key questions to get us moving forward:
What is the biggest thing bothering you right now?
Sometimes nonprofit leaders are so stuck in the weeds, so overwhelmed, so exhausted, or so alone that they cannot pinpoint one issue, let alone figure out a way forward. So I start by encouraging them to just unpack everything. This will often result in a venting session, and that’s completely fine. Letting off steam is absolutely crucial. And nonprofit leaders have very few confidants with whom they can share those struggles. Since a nonprofit leader always needs to put on a brave face to her staff, her board and her funders, she has very few people she can tell the bitter truth, so that’s a big part of my role.
How can we prioritize these challenges?
While it might be tempting, we cannot stop with venting. Once we’ve made a list of the challenges, frustrations and concerns a nonprofit leader is facing, I help her to prioritize those challenges in terms of the biggest threats and their dependence on other things to be resolved. So for example, a nonprofit leader who is struggling to meet her fundraising goals, is frustrated by an ineffective board, and lacks enough staff must analyze how large a threat each of those issues is related to the others, and which are dependent on the others to solve. It may be that kicking the board into gear might help alleviate the other two problems because if the board can start helping bring money in the door, she can better address her fundraising goals which leads to her ability to add additional staff.
Where can we tap into your existing assets?
But how do you do that? As I’ve said, nonprofit leaders are often very isolated and think it is all up to them. But if a nonprofit leader can think strategically about who might be able to help, he can move forward more effectively. A nonprofit leader who is struggling without enough staff and is challenged by his ineffective board could potentially find an ally or two among his board and/or funders. I help a nonprofit leader to think through potential allies who can help overcome a hurdle. A one-on-one conversation with a quiet, but well-respected board member about the specific challenge a nonprofit leader faces may yield that board member’s support and voice toward bringing the rest of the board around. Similarly, identifying one or two funders who could be convinced of the need to invest in capacity-building could yield additional staff and infrastructure to overcome those challenges.
I firmly believe that there is a solution to every challenge a nonprofit leader faces. But in order to get to that solution, a nonprofit leader must be willing to analyze the problem and think strategically and creatively about how she can solve it.
If you want to learn more about the nonprofit leader coaching I provide, download my Coaching benefit sheet. And if you want to learn more about being a strong nonprofit leader, download the Reinventing the Nonprofit Leader book.
Photo Credit: Vinoth Chandar
The Evelyn and Walter Haas, Jr. Fund, a foundation on the forefront of investing in nonprofit capacity and one of the few foundations funding nonprofit leadership development, released a new report this week Beyond Fundraising: What Does It Mean to Build a Culture of Philanthropy?.
While I applaud the Haas Fund for taking a pioneering interest in, as they put it, “understanding how to break out of the nonprofit sector’s chronic fundraising challenges,” unfortunately I don’t think that this report will move the needle on the sector’s money woes.
Their landmark 2013 report published with CompassPoint, UnderDeveloped: A National Study of Challenges Facing Nonprofit Fundraising (of which the Beyond Fundraising report is a follow up) uncovered a real crisis in fundraising staffing in the nonprofit sector. And last year Haas announced a multi-year effort to “to identify gaps that may need to be filled when it comes to helping nonprofits break out of chronic fundraising challenges.”
A sector-wide conversation about money is so incredibly needed that I really appreciate the Haas Fund’s efforts to start it, especially when philanthropists are loathe to talk about the sector’s money challenges, let alone invest in solving them.
But in the hope that debate spurs greater change, and because of Haas’ expressed desire to open a conversation so that they can “learn out loud,” I offer my concerns about the Beyond Fundraising report.
As Linda Wood, Senior Director of Leadership Initiatives at the Haas Fund (and past interviewee on this blog), describes in the beginning of the Beyond Fundraising report, there must be a fundamental change in how nonprofits approach fundraising. As she writes: “Without a deeper shift in how organizations hold the work of fund development, simply adopting new tools and techniques may not be enough.”
The Beyond Fundraising report, authored by philanthropy consultant Cynthia Gibson (also a past interviewee on this blog), starts from where the 2013 UnderDeveloped report left off: that the lack of a culture of philanthropy is the most important issue holding nonprofits back from fundraising success:
By framing the issue as a talent pool problem alone, we neglect to focus more critically upon entrenched organizational factors that contribute to the inability to establish development as a shared function and nurture an organizational culture to sustain it. The right development director hire alone will never break the cycle, but the right person inside an organization that has a culture of philanthropy, can.
The Beyond Fundraising report is an attempt to understand what a culture of philanthropy is and how to encourage its growth. The report defines a “culture of philanthropy” as a situation in a nonprofit where:
Most people in the organization (across positions) act as ambassadors and engage in relationship-building. Everyone
promotes philanthropy and can articulate a case for giving. Fund development is viewed and valued as a missionaligned program of the organization. Organizational systems are established to support donors. The executive director is committed and personally involved in fundraising.
The report delineates four necessary components to a culture of philanthropy:
- Shared responsibility for development
- Integration and alignment with mission
- A focus on fundraising as engagement
- Strong donor relationships
It then provides a list of indicators for nonprofit leaders to use to assess whether or not they possess a culture of philanthropy, a list of “guiding questions” nonprofit leadership can ask in order to build a culture of philanthropy, and a list of roles that development staff and funders can play in bringing a culture of philanthropy to fruition.
While I don’t disagree with any of the indicators, questions, or roles the report describes, I don’t think that any of them, or even their sum total, will solve the lack of financial sustainability at a particular nonprofit, let alone in the nonprofit sector overall.
And this is because I think that only looking at fundraising — the pursuit of philanthropic dollars, which only make up 13% of all the money flowing to the nonprofit sector — is a fundamentally flawed approach to understanding money in the sector. My bias has always been to move the sector from a broken fundraising approach to a more strategic and holistic financing approach.
And while I agree that individual nonprofit leaders are part of the problem, they are just one part. Often their troubled approach to money is simply a reaction to a dysfunctional system. Certainly we need to move away from some ineffective money practices that nonprofit leaders embrace (being reactive rather than strategic about money, not calculating the return on investment of fundraising activities, not aligning money and mission, allowing a board to dismiss their money-raising responsibilities…).
But I worry that by scapegoating the problem to the shortcomings of individual nonprofits we are ignoring the larger financial dysfunctions of the sector. Rather than pull back the curtain on the systemic hurdles causing the nonprofit sector’s money woes, I fear that this report lays much of the blame for financial dysfunction at the feet of individual nonprofit leaders.
Because in my mind, the real problem is not the approach of individual nonprofit leaders, although that is important. I think the financial problems of the nonprofit sector run much deeper. If we truly want to address those problems we must have bigger conversations, and ask harder questions, like:
- Why is there a lack of financial acumen (how to effectively attract and employ money) throughout the sector (present among both nonprofits and their funders), and how do we solve that?
- Why is long-term organizational and financial planning not encouraged and supported throughout the sector?
- Why is there not enough investment in the financial function of nonprofit organizations (the staffing, systems, technology, planning, and marketing necessary to build sustainable financial models)?
- Why aren’t there many, many more funders like The Haas Fund discussing and investing in solutions to the sector’s money problems?
- Why are we still focusing on philanthropic dollars alone when we need to understand and integrate money as a whole into social change efforts?
And that’s just a start.
My fear is that if we place the full weight of nonprofit financial dysfunction on the shoulders of an individual nonprofit’s culture, or if we look only at fundraising, we shirk our duty to dig deeper and remedy larger, structural dysfunctions in the sector.
I applaud the Haas Fund for their determination and courage to create a space, through their capacity investments and on-going research, for the incredibly important conversation about money in the nonprofit sector. But I would love to see this effort grow to become a bigger conversation about how we solve the endemic financial challenges nonprofits face.
Photo Credit: The Evelyn & Walter Haas, Jr. Fund
It’s that time of year again — to put work away, enjoy friends and family, and give yourself a chance to take a breath. I will be taking the next two weeks off from writing the blog. But before I go, as is my tradition, I wanted to leave you with a list of the 10 most popular blog posts from this past year, in case you missed any of them.
I hope that you all will find some space over the next couple of weeks to relax, to get away, to regroup, and to ready yourselves for the next chapter. We need you social changemakers now more than ever, so please find some time to take care of yourself before you get back to taking care of the rest of the world.
Thank you for being part of the Social Velocity community and for all of your hard work making the world a better place. I wish you all a very happy New Year. I’ll see you in 2016!
- The Problem with Nonprofit Events
- How Scarcity Thinking Holds Nonprofits Back
- 7 Questions to Guide Your Nonprofit Strategy
- 5 Myths the Nonprofit Sector Must Overcome
- How to Build a Stellar Nonprofit Staff
- How to Create a Compelling Fundraising Ask
- 3 Signs of a Bad Nonprofit Strategic Plan
- 5 Fundraising Delusions Nonprofits Suffer
- What Do Your Programs Really Cost?
- The Network Approach to Social Change
Photo Credit: Ethan R
Although I already mentioned (in my September 10 Great Reads list) a really interesting article about “network entrepreneurs,” I want to further explore the concept because I think it could be a game changer for nonprofit leaders willing to embrace it.
Writing in the Stanford Social Innovation Review in September, Jane Wei-Skillern, David Ehrlichman, and David Sawyer describe a “network entrepreneur” as different from, and much more effective at creating social change than a typical nonprofit leader. As they put it:
A network entrepreneur’s approach expands far beyond the boundaries of their own organization, supporting peers and partners across sectors to solve the problem. Not surprisingly, the potential for impact increases exponentially when leaders leverage resources of all types—leadership, money, talent—across organizations and sectors toward a common goal.
And this mirrors Wei-Skillern’s earlier article from 2008, “The Networked Nonprofit” where she described how a “networked nonprofit” builds alliances far beyond its own walls and is thus much more effective at creating social change that a traditional nonprofit:
Many traditional nonprofits form short-term partnerships with superficially similar organizations to execute a single program, exchange a few resources, or attract funding. In contrast, networked nonprofits forge long-term partnerships with trusted peers to tackle their missions on multiple fronts. And unlike traditional nonprofit leaders who think of their organizations as hubs and their partners as spokes, networked nonprofit leaders think of their organizations as nodes within a broad constellation that revolves around shared missions and values.
In essence, the network approach to social change is one of true leadership — leadership writ large. Because a true leader leaves their ego, and the ego of their organization, aside in order to assemble all the required resources (individuals, institutions, networks, funding) to chart a path towards larger social change. Instead of leading an organization, a network entrepreneur is, in essence, leading a social change movement.
A network entrepreneur understands that social change lives beyond any single organization. It requires someone (or a set of someones) to marshall all the necessary resources, create a larger change vision and lead people towards that vision.
This concept is so critical to nonprofit leaders who are often working with such limited resources. If instead of working to build an institution, a nonprofit leader worked to build networks, she could be much more effective at creating long-term social change.
So what does this network approach look like in practice for a nonprofit leader?
Instead of thinking just about your organization, your staff, your mission, your board, your donors, you must analyze and connect with the larger marketplace outside your walls. You need to analyze the other people and entities working on similar challenges, and not just in the nonprofit space, but also in other sectors, geographies and time periods (yes, history matters!). Determine how other places, other people, other organizations, both past and present, addressed similar problems. You need to understand the points of leverage for attacking the problem on a much larger scale than your single organization can. Figure out who the influencers are in the space and how to connect your work with those other individuals, institutions, networks.
The network approach also requires that nonprofit leaders move away from the resource-constrained, scarcity approach that keeps them from forging alliances with other entities that might be competing for the same limited pool of funding. Instead leaders must take an abundance approach that leaves fears behind in favor of a bigger, bolder approach.
And the network approach involves having the confidence to think that there is potentially a larger solution and that you might be part of it. The dysfunctional power imbalance present for so long in the nonprofit sector has bred a crisis of confidence that keeps nonprofit leaders focused just on their own work, instead of seeing the larger picture and envisioning a larger solution or role in that solution.
The network approach to social change involves taking a big step back from the work you have always done. It requires asking a much larger set of questions. And having the faith, confidence and leadership to plug into the network for social change.
Photo Credit: Wikimedia
Note: As I mentioned earlier, I am taking a few weeks away from the blog to relax and reconnect with the world outside of social change. But I am leaving you in the incredibly capable hands of a rockstar set of guest bloggers. Next up is Kathy Reich. Kathy is Organizational Effectiveness and Philanthropy Director at the David and Lucile Packard Foundation where she helps grantees improve their strategy, leadership, and impact. Here is her guest post…
Philanthropy pundits often exhort nonprofits to “act more like businesses.” Usually I disagree; in fact, I think there’s a great deal that businesses could stand to learn from nonprofits.
In at least one area, though, I admit that all too frequently nonprofits lag their for-profit peers. Nonprofits simply do not invest enough time or money in talent assessment, development, and management.
Major national surveys provide a helpful snapshot of the nonprofit sector’s talent troubles. In the Bridgespan Group’s Nonprofit Management Tools and Trends 2014 survey, which polled almost 500 nonprofit organizations about their current management practices, nearly 60 percent of respondents agreed or strongly agreed that “hiring, training, and retaining staff is one of our greatest challenges.” Yet the survey found that only 40 percent reported using talent assessment and development tools, and just 38 percent said their organizations engage in leadership succession planning.
Similarly, in the Nonprofit Finance Fund’s 2015 State of the Nonprofit Sector survey, which included responses from more than 5,400 nonprofits nationwide, respondents were asked to name the top three challenges facing their organizations. “Ability to offer competitive staff pay and/or retain staff” was ranked in the top three by fully 25% of the respondents, behind only “achieving long-term financial sustainability” as one of the top three challenges facing nonprofits. Yet the same survey found that just 37 percent of respondents had invested money or time in staff professional development in the past year. Only 28 percent had given cost-of-living raises, and 18 percent had given raises beyond COLA.
At the Packard Foundation, program officers tell me that they see signs of this underinvestment almost every day. Some problems that our nonprofit grantee partners routinely report:
- Executive turnover is frequent, and often traumatic.
- Nonprofits have a hard time finding appropriate candidates for senior management roles, including CEO, program executives, development directors, and communications directors.
- The leadership many nonprofits have is not reflective of the leadership that they need, or the communities they serve. In most of the fields in which the Packard Foundation works, nonprofit leadership remains predominantly white, male, and middle-aged, even as our country becomes younger, more diverse, and hopefully, more committed to racial and gender equity.
- Emerging leaders under age 45 report high levels of career dissatisfaction, driven in part by lack of professional development and advancement opportunities. In a 2011 Young Nonprofit Professionals Network survey, only 36 percent of respondents said that their organization invested in “bench strength” to develop emerging leadership. Of that group, less than 47 percent said their organization implemented these investments effectively.
Nonprofits and foundations both have critical roles to play in ensuring that the nonprofit sector has a robust, diverse talent pipeline now and in the future. First, foundations need to step up their financial support for leadership. The private sector spends $12 billion annually, an average of $120 per employee, on developing leaders, investing in their management and technical skills so that they can move up the ranks or excel in their current jobs. In contrast, philanthropy’s investment in nonprofit leadership development totals an average of $29 per employee annually.
Foundations can do much more. Some concrete ways that they can help:
- Fund nonprofit overhead so that nonprofits have enough money to pay their people competitively and can have the operations in place necessary to support their staff and manage their talent. Depending on their size and talent needs, some nonprofits may need to hire a Chief Operating Officer, a Human Resources Director, or a Chief Talent Officer.
- Support nonprofits to develop “right-sized” performance assessment and management systems, as well as meaningful succession plans for key leaders.
- Include funds for staff professional and leadership development in project support grants.
- Incentivize nonprofits to develop cultural competency in hiring and management so that they can attract and retain diverse employees.
But foundations cannot tackle this issue alone. No matter what their size, nonprofit boards and executive leadership need to focus on talent issues and ensure they have appropriate plans in place to manage and develop staff for their organizations. They need to implement thoughtful, intentional strategies and process to ensure that they are identifying their own talent needs, assessing the strengths and growth areas of their staff, and providing ongoing development and feedback to all employees, particularly those with high growth potential. And they need to make the case for talent to their funders, along with concrete examples of how investing in leadership capacity will improve outcomes.
In the nonprofit sector, as in business, leadership matters. Let’s be sure we’re all investing our time, and our money, where it counts.