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theory of change

How an Assessment Propels a Nonprofit Forward

nonprofitSometimes I work with nonprofits that are really stuck.

They have been spinning their wheels for months (maybe years) and can’t seem to get out of a vicious cycle that might include insufficient funding, a disengaged board of directors, struggling programs, or an inability to articulate their value to outsiders. They continue to have the same conversations month after month, wanting to do more and be more, but unable to figure out what’s holding them back.

When that is the case, a Financial Model Assessment can be really instrumental in moving the nonprofit forward.

Last week, I led the culminating meeting of a Financial Model Assessment for one of my clients. In this meeting I bring board and staff together to discuss my findings after a 3-4 month assessment of how every aspect of their nonprofit (strategy, vision and mission, board and staff structure, marketing, etc.) contributes to (or detracts from) their ability to bring sustainable money in the door.

This meeting is always my favorite part of the process because it starts to move a nonprofit forward in several ways:

Taboo Topics Are Uncovered and Discussed
Let me be clear, this is a challenging meeting. Through the course of the Assessment, I often uncover one or two things that are happening at a nonprofit that everyone knows about (and may even be discussing privately) but no one is willing or able to address as an organization. Perhaps the nonprofit is running a program that drags the organization down, or the board is not pulling their weight, or the staff is not structured effectively. In this meeting, nothing is sacred. Anything that holds the nonprofit back is fair game. It can be incredibly helpful to have someone finally put everything out in the open for the organization as a whole to discuss. Because if you don’t articulate and analyze the problems, you have no hope of overcoming them.

Board and Staff Are Energized
Once those problems are out in the open, there is often a palpable energy that begins sparking around the room as individual board and staff members begin to realize that there is a better way. It may not be easy, and it may push them and the organization in new, challenging ways, but it is exciting and hopeful and energizing. Every single time I have led one of these Assessment meetings a noticeable energy beings to build. It’s the acknowledgement among board and staff that they don’t have to be stuck anymore.

A Clear Path Emerges
And the reason they don’t have to be stuck anymore is because the Assessment lays out a path forward that frees the nonprofit from the spinning wheels. Suddenly board and staff have a set of steps and a strategy that they can discuss, analyze, and execute. They may not agree with or integrate every recommendation I make, but they at least have a future path around which they can mobilize.

Change Begins
This meeting, and the Financial Model Assessment that instigates it, can often be the first step in a new direction. It can be the inflection point at which board and staff finally recognize together, as a critical mass, that the status quo just won’t work anymore, and they must come together to chart a smarter, more strategic future course. It is the place where everyone acknowledges that change — true change — is necessary and possible.

If you want to learn more about the Financial Model Assessment I conduct for nonprofits, check out the Financial Model Assessment page here, or download the benefit sheet here.

Photo Credit: Till Krech


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3 Signs of a Bad Nonprofit Strategic Plan

nonprofit planningI’ve been leading several strategic planning processes lately, and as we wrapped up the last planning meeting for one of my clients (who had been encouraged to create a strategic plan by a funder) my client announced:

“I have to confess that when we started this process 6 months ago I inwardly rolled my eyes because I thought it would be a pointless process, full of silly buzzwords and with little value. I have completely changed my mind. I can already see how this new plan is making us smarter, more effective and more sustainable.”

Yep, I completely get it.

Strategic planning, when poorly done, is just a joke. But, when strategic planning is done well, it can completely transform an organization.

And there are three key places where a bad strategic plan falls short:

  1. Your Strategy Isn’t Big Enough
    To create an effective strategic plan you have to start with the big picture. You must analyze and articulate who your target audience(s) are and your theory of change. Then you must look externally to understand the needs, the competitive landscape, the funding, the changing factors in the marketplace in which you operate. Nonprofit leaders sometimes mistakenly think they are creating an effective strategic plan when they sit in a room, look around at their fellow board and staff members, and ask each other what they think they should do. It is also a mistake to think that in such a rapidly changing world you can simply develop a status quo strategy. In order to stay relevant and sustainable you have to understand how you interact with the forces outside your walls and outside your control. And here’s a little secret: the more you think about the bigger world out there, the more excited your board and funders will be by the plan. Your nonprofit doesn’t exist in a vacuum, neither should your plan for the future.

  2. Your Strategy Isn’t Small Enough
    But the other danger is to get too big and neglect the small part — the execution and monitoring of the plan. It’s great to have a bold vision and ambitious goals for the future that flow from an exciting theory of change. But that’s not enough. How will you implement it? How will you break down tasks, and responsibilities? What’s the timeline? And what is your process for determining, on a regular basis, whether the plan is actually coming to fruition? A good strategic plan, one that will actually transform your organization, requires operational detail and a process for monitoring it over time.

  3. Your Strategy Ignores Money
    There is no effective strategic plan that neglects to answer how you will finance it. That’s why a good strategic plan devotes one of its goals to money. How much will it cost to deliver on all of the goals of your plan? How will revenue (and capital if you need it) flow to meet (or exceed) those expenses? A good strategic plan forces nonprofit leadership to become financially savvy (when they may not have been before) and begin to use money as an integral management tool.

How does your nonprofit’s strategic plan stack up? Is it big enough, small enough, and well financed? If you want to learn more about what a strategic planning process looks like, check out my Strategic Planning page or download the Strategic Planning benefit sheet.

Photo Credit: ESO/H. Dahle

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Well-Designed and Implemented Nonprofit Programs: Pillar 3

First Place for YouthThis year on the blog I have been highlighting the Performance Imperative, a detailed definition of a high-performing nonprofit released by the Leap Ambassador community (of which I am a member) in March. Today I continue the ongoing blog series describing each of the 7 Pillars of the Performance Imperative with Pillar 3: Well-Designed and Implemented Programs and Strategies.

You can also read about Pillar 1: Courageous, Adaptive Leadership, and Pillar 2: Disciplined, People-Focused Nonprofit Management.

Pillar 3 describes being crystal clear about what your nonprofit exists to do, how you fit into the external environment, and how you develop and execute smart programs that result in your desired social change. This Pillar is essentially about creating and executing a Theory of Change.

The most important part, in my mind, of Pillar 3 is encouraging nonprofits to define the target population(s) they aim to serve. I have seen too many nonprofit organizations so focused on doing good that they don’t define who they are best positioned to serve and how that relates to who else may be serving them. Nonprofits must get clear about their place amid other services and interventions and, very specifically, who they are hoping to benefit or influence.

As always, you can read a larger description of Pillar 3 in the Performance Imperative (and I strongly encourage you to do so), but, in summary, a nonprofit that exhibits Well-Designed and Implemented Programs and Strategies:

  • Is clear on the target population they serve.
  • Bases the design of their programs on evidence informed assumptions about how the organization’s activities can lead to the desired change (a“theory of change”).
  • Designs programs with careful attention to the larger ecosystem in which they operate.
  • Implements their programs in a consistently high-quality manner and views collecting and using data as part of implementing high-quality programs.
  • Guards against the temptation to veer off course in search of numbers that look good in marketing or funder materials.

Because I think case studies are so critical to understanding what high performance really looks like in a nonprofit, I asked Sam Cobbs, CEO of First Place for Youth, to explain how he led his organization to become a national model for helping foster kids to thrive.

Here is his story:

First Place went through an intensive theory of change process in 2008 where we explored what impact we wanted to make with youth and what type of activities and interactions it would take to achieve that impact. In addition, because the activities and interactions needed to be intensive (and therefore costly) we made the decision to focus our services on the most vulnerable youth. This was measured by how at risk a youth was using a risk assessment scale that took into account, among other factors:

  • number of foster care placements
  • years or days of homelessness
  • job history
  • education level, and
  • the number and quality of support systems, including positive adult role models.

Based on this criteria, youth who had a higher risk factor score were given priority over youth with lower scores.

After establishing our target population, we began to collect data on what activities and interactions youth were having with the organization and started to analyze these trends. We were looking to understand what our population had in common so that we could understand who we were effective with and who we needed to create better interventions for.

Through this work we determined that we had 8 participant types at baseline and figured out which types we worked better with and what interventions were best used with these sub-populations. We then trained staff to deliver the interventions that were shown to work better with certain sub-populations.

We also began to understand that our sweet spot was kids who had multiple foster care placements, had experienced homelessness at some point, and had a high school diploma or GED. We also learned that we needed to get better with youth who had low risk factor scores because they had an extensive support network, had never experienced homelessness, and were somewhat stable while in foster care. This may go against what we naturally think — that a person with extensive support would do better, but our data showed the opposite. We were also not very good at working with single parents who did not have a high school degree. In the coming year we are going to redo this process using algorithms to see if we get the same results and trends.

If we see that we are not doing well in an area, we research the best practices to deal with that area and direct resources and time to delivering that intervention. For example, because of the data we realized that a portion of our youth had very high trauma scores. Therefore we said we needed to become better at working with youth who have had complex trauma at high rates. We then created an initiative to insure that everyone in the organization understood trauma and its impact on our youth and the best ways to address it. We will see at the end of this year if this investment in trauma informed training has paid off by increasing our outcomes and impact with the youth that we serve.

We are consistently looking at the data to understand where we are doing well and where we need to improve. Its the data, the data, the data.

Photo Credit: First Place for Youth

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Guest Post: An Emergent Approach to Philanthropic Strategy

Kelly Born 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 Kelly Born, program officer at the Hewlett Foundation working on their Madison Initiative, which focuses on reducing today’s politically polarized environment. Kelly also writes for the always thoughtful Hewlett Foundation blog. Here is her guest post…

In March of 2014, the William and Flora Hewlett Foundation launched a new initiative focused on US democracy reform, The Madison Initiative. The overarching goal is to “help create the conditions in which Congress and its members can deliberate, negotiate, and compromise in ways that work for more Americans.”

Our mandate is for a 3-year, exploratory initiative to assess whether and how the Foundation might be able to make a difference here. During this period, we are focused on three central questions:

  1. Are there solutions and approaches that are worth pursuing?
  2. Is there ample grantee capacity to pursue these ideas (or can we help build it)?
  3. Are there funding partners we can work with to make it happen?

In exploring this problem of congressional dysfunction we realized early on that, unfortunately, there don’t appear to be any silver-bullets that will solve this problem – it’s not as if campaign finance reform, nonpartisan redistricting, or increased voter turnout, taken on their own, would resolve our current democratic ails (even setting aside for the moment how hard it would be to actually achieve these changes!).

Regrettably, there is no clear consensus on what to do to improve the system, much less on how to do it. This may be, in part, why Inside Philanthropy awarded The Madison Initiative with 2014’s Big Foundation Bet Most Likely to Fail. Given this, our view has been that current congressional dysfunction is occurring in a system of systems (and sub-systems) that are interacting in complicated ways.

Early on we decided to develop a systems map rather than a theory of change to guide our work (working in close partnership with the Center for Evaluation Innovation and Kumu, collaborations we’ve written a bit about here). Theories of change typically outline desired (social or environmental) outcomes and then map backwards, linearly, to the activities and inputs necessary to achieve those outcomes. Systems maps are perhaps better suited for more complex, uncertain environments like democracy reform, where cause-and-effect relationships can be entangled and mutually reinforcing, rather than unidirectional.

Version 1.0 of our map includes more than 35 variables we believe are contributing to the problem, distributed across three key domains: Congress, Campaigns and Elections, and Citizens. In light of this complexity, rather than making an initial set of big bets on a few key variables, we have instead spread a series of smaller bets within these systems to see where grantees might gain traction, and what this reveals about the system’s more confounding parts.

The benefits of this approach are many – in fact, I cannot imagine effectively tackling this particular problem any other way. But employing this spread betting approach also involves a few challenges for us at Hewlett, and for our partners and grantees. The trade-offs are worth considering:

  • We are acknowledging and respecting complexity, but this can sow seeds of confusion for our partners. Our approach has the essential benefit of taking into account the systemic complexity and interdependency of what we are trying to help change. We are avoiding over-simplifying and thereby misconstruing our reality (a good thing). But we are exploring more than 35 variables (ranging from deteriorating bipartisan relationships to the proliferation of partisan news media), with more than 60 active grantees. This approach can be hard to manage, and harder still to convey to others – especially anyone accustomed to a more linear and readily understandable theory of change.

  • Our course correcting helps us learn, but has a real impact on partners. As we diversify our investments to learn more about what works, we will continue to learn more about which efforts are having the most impact on congressional dysfunction, and which are less germane to the problem. As we do, we will necessarily converge (and double down) on a few core interventions, while discontinuing others. This will mean disappointing organizations that we respect and had supported at the outset – an inevitable byproduct of this approach, but unpleasant for all involved.

  • Our evidence-based approach risks coming off as overly academic. We are determined to avoid investing in solutions where there is not solid evidence to support their viability vis-à-vis our goals. This helps us avoid squandering funds on interventions that won’t, ultimately, work. But this approach also runs the risk of coming across as standoffish, academic, and idiosyncratic in the eyes of a practitioner-driven field that in some instances may be pursuing work that is harder to (or has yet to be) substantiated by solid research.

We’ve certainly got our work cut out for us. But we deeply believe that the social sector shouldn’t shy away from complex problems. We also believe that the benefits of this approach far outweigh the costs. It enables broad-based learning, and truly forces us to constantly re-think the grants we are making. Building in these tough choices, rather than forging ahead with a pre-defined strategy, requires that we not just learn, but that we act on what we discover. And fast.

In short, while beset by a few real challenges, we’re convinced that an emergent path is the best path forward. Surely we will place some wrong bets along the way. But, as a favorite colleague of mine often says, “it’s not like we’re selling cigarettes to children.” All of our grantees are doing great work – ultimately it will (not so simply) be a question of which of these lines of work is most likely to improve Congress.

In 2017, we will go back to our Board of Directors to discuss whether and how The Madison Initiative’s work will continue. In the meantime, we would love to hear how other funders have approached emergent problems like this – and how nonprofits might advise that we manage these inherent challenges as we progress?

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Building Demand For Impact Measurement: An Interview with Tris Lumley

Tris LumleyIn today’s Social Velocity interview, I’m talking with Tris Lumley.

Tris is Director of Development for New Philanthropy Capital (NPC), a U.K. think tank and consultancy that works with both nonprofits and funders. Tris focuses on both the demand and supply sides of innovation around social impact. His particular interest is putting impact at the heart of the social sector, including shared measurement, open data and systems thinking. He helped initiate, and now coordinates, the Inspiring Impact program which aims to embed impact measurement across the UK charity sector by 2022. He is also a trustee of the Social Impact Analysts Association, a member of the EU GECES subgroup on impact measurement in social enterprise, and the Leap of Reason Ambassadors Community.

Nell: A big focus of your work at NPC is making impact measurement ubiquitous in the UK’s nonprofit sector. How far is there to go and how does the UK compare to the US in impact measurement being a norm?

Tris: There’s undoubtedly been significant progress over the last decade on impact measurement in the UK, and NPC has been at the heart of that. There are several ways in which that progress is visible, as well as in the sector level surveys NPC has done to track change. For example, most charities say that they have invested more in impact measurement in the last five years, and as a result we see that it is increasingly the norm for charities to have a defined theory of change, a role within the organisation to lead on impact measurement, and to talk about their impact measurement efforts in their public reporting. Most institutional funders also say that they look for evidence of charities’ impact measurement efforts in their funding decisions. Demand for measurement advice is growing, and the impact measurement industry is growing in response – there are more consultants offering services in this area.

The growth of social (or impact) investing has also driven greater interest in impact measurement. The industry as a whole acknowledges the centrality of impact measurement and the need for social returns to be as well evidenced as financial returns. There have been a number of key developments to move the field forward here, from Big Society Capital’s outcomes matrix to the G8 Social Impact Investment Taskforce and European GECES reports and guidance on impact measurement – all of which NPC has helped to deliver.

What’s not as clear is how much progress there’s been on the use of impact measurement, rather than its mere existence. When NPC repeats our field level state of the sector research in 2016, we’ll be asking a number of questions to tease out whether impact measurement activity is leading to use of impact evidence in decision-making – whether it’s becoming embedded in practice.

My concern is that we don’t see the signs that impact measurement is driving learning, improvement, decision-making or wholesale shifts in allocating resources towards higher impact interventions, programmes and organisations. It feels like impact measurement is something that everyone acknowledges we need to do, but few have worked out how to use. With the result that it’s bolted on to the reality of organisations delivering services and raising funding, but not embedded at the core.

A few examples of what I mean: if impact measurement were driving learning, I’d expect to see lots of organisations sharing their insights on success and failure, and learning from each other. I’d expect to see common measurement frameworks which allow organisations to understand their relative performance. These are still very rare. I’d also expect to see investment by funders and investors in the infrastructure that we know is needed for learning – journals, online forums and repositories and practitioner networks. There are some emerging examples of these, like the What Works Centres, but they’re still mostly just getting off the drawing board.

Most importantly I’d expect to see charities adjusting strategies and programmes in response to their learning. Maybe I’m not looking in the right places, but the examples I do see are the exception, not the norm.

When it comes to comparing the UK and US, it’s really hard. We don’t have comparable field-level studies, and we need to work together more closely on these if we want robust insights. For example, if you compare the findings in NPC’s 2012 paper with a recent US study it looks like nonprofits are more likely to say the main purpose of impact measurement is learning and improvement. But actually we don’t know if this is the result of the questions we asked and how we asked them.

In both the US and the UK, it’s clear that the rhetoric on impact measurement has advanced over the last decade. What’s not yet clear is how the reality underlying that has shifted.

Nell: While there are many similarities between the US and UK nonprofit sectors there are some fundamental differences, in particular views about how much government (vs. private charity) should do for public welfare. How does the UK’s view of government’s role help or hurt the capacity building efforts of nonprofits?

Tris: The UK government has taken on a leading role in the social investment space, and it’s here that efforts to build capacity are most visible. Investment readiness programmes have been introduced over the past few years to build general capacity to access social investment. More recently, impact readiness programmes have arrived to do the same for impact measurement capacity. NPC has been working within these programmes to help a number of charities, and cohorts of charities, and it’s clear that they can play a major role in helping the sector to improve. But capacity-building in general has felt the effects of austerity just as much as any other area of government funding. Perhaps more so, as limited funds are increasingly focused on service delivery, not on efforts to improve services.

When NPC repeats its survey of the field, I am certain that we’ll find that limited funding to develop impact measurement capacity is still the major barrier cited by charities. It doesn’t look like anything’s going to change that any time soon.

Nell: NPC works at the nexus between nonprofits and funders, helping the two groups to understand and adopt impact measurement. In the US few funders will fund impact measurement systems, even though they want the data. How does NPC work to convince funders of the need for investments in measurement (among other capacity building investments)? What progress have you seen and what’s necessary for similar progress to happen in the US?

Tris: While a proportion of funders have for a long time supported evaluation, the majority still don’t. We’ve worked through programmes like Inspiring Impact (a sector-level collaborative programme to help embed impact measurement) with a group of funders to develop principles, and help them to embed support for impact measurement in their practice. These efforts can help those who already see the benefit of capacity-building to advance their work, but it’s tough to engage those who aren’t already thinking in this way. I think that the leap we need to make is to selling impact measurement through its benefits, by showing how organisations improve, and their impact increases, as a result. And because impact measurement isn’t yet typically embedded in organisations, those benefits aren’t as evident as they should be.

What does seem to work well is trying to get funders and charities to work together in a specific outcome area to make progress, rather than making a general case for impact measurement. Cohort capacity-building programmes, learning forums and shared measurement initiatives are all part of this. The key thing here is that then the funder is committed to the outcomes everyone’s working towards, and impact measurement becomes a tool for everyone to achieve those outcomes together.

Nell: You are part of the Leap Ambassador Community that recently released the Performance Imperative. Have you seen similar interest groups forming around these issues in the UK? And what role do you think interest groups like these play in a norm shift for the sector?

I have been privileged to be part of this amazing community of leaders, and one of a minority initially from outside the US. I’m convinced we need a similar movement here in the UK, and globally and have been discussing whether and how to approach this with the group from the start. And as co-Chair of Social Value International – a network of those working in the social impact field, I’m part of an effort to do this at the practitioner level too.

The Leap Ambassadors Community brings a human face to what is often seen as a technical subject. After 11 years of working in the social impact field, I am convinced that we cannot sell impact measurement just by increasing the supply of good technical solutions. We need a movement to build the demand for those solutions. We need the right frameworks to measure impact and manage performance. But we need the leaders to demand them, and to harness them to hold themselves accountable, learn and improve, and share what they find.

Photo Credit: NPC

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What’s Your Nonprofit’s Theory of Change?

Theory of Change GuideOver the past few years I’ve developed a Social Velocity library of books, step-by-step guides, and webinars. My hope is that these tools can make the concepts I use with my consulting clients accessible to smaller and start up nonprofits who aren’t ready for or interested in a customized approach.

The tools follow the methods I develop in my consulting practice (like creating a financing plan, growing the board of directors, designing a theory of change) so when my consulting approach changes over time, the tools must change as well.

Which brings me to the Design a Theory of Change Guide. I created this guide a couple of years ago, but I recently changed the Theory of Change framework I use with my clients. I used to follow a more traditional logic model approach, but over time I’ve come to realize that there are really five specific and complex questions that make up a Theory of Change.

And those are:

  1. What is the target population or populations you are seeking to benefit or influence?
  2. What relevant trends in or changes to the external environment are occurring?
  3. How and where are your core competencies employed?
  4. What changed conditions do you believe will result from your activities?
  5. What evidence do you have that this theory will actually result in change?

The completely revised Design a Theory of Change Guide walks you step-by-step through answering these questions and creating your nonprofit’s own Theory of Change.

A Theory of Change is a fundamental building block to everything that your nonprofit does. Because without a Theory of Change, you won’t know what you are trying to accomplish, how you will get there, or whether you are moving towards it, and you certainly won’t attract the funding necessary to get there.

A Theory of Change can strengthen your nonprofit in many ways:

  • Guides your strategic planning process. If you understand your nonprofit’s overall Theory of Change and what you exist to do, it is much easier to chart a future course.

  • Helps revise the vision and mission of your organization, making them stronger and more compelling.

  • Gives a framework to prove whether you are actually achieving results and creating real social change.

  • Provides a filter for new opportunities as they arise. Do new opportunities fit within your Theory of Change?

  • Engages board members and other volunteers, friends and supporters in your work. If people understand the bigger picture, they will be more inclined to give more time, energy, and other resources to the work.

  • Allows staff to understand how their individual roles and responsibilities fit into the larger vision of the organization. This can increase staff morale, productivity, communication and overall commitment to the organization.

  • Provides the basic argument for a case for investment or other fundraising messaging. With a Theory of Change, you can articulate what you are working to achieve, in a compelling way.

A Theory of Change is so fundamental because you cannot chart a strategic direction if you don’t know what you are trying to change. And you can’t prove that you’ve changed something unless you have articulated what it is that you want to change in the first place. And you certainly can’t convince funders, volunteers, and key decision makers to support you if you can’t tell them what you are trying to change and whether you are actually doing it.

So to truly create long-term social change you must start with a Theory of Change, which is why I encourage every nonprofit engaged in social change to create one.

You can learn more about the Design a Theory of Change Guide and download a copy of it. If you downloaded the previous Theory of Change Guide and would like the newly revised version free of charge, let me know, and we’ll send it to you.

As always, you can see all of the Social Velocity books, guides and webinars available for download on the Social Velocity Tools page.

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The Strategy of Social Change [Podcast]

nonprofit podcastI’ve gotten a few requests lately to participate in social change podcast series (see my podcast with Panvisio). I love discussing the many issues in social change work, so I’ve really enjoyed being part of these discussions.

This month Greg Cherry of The Philanthropy Hour asked me to participate in a podcast conversation with him as part of his ongoing podcast series with social change leaders.

In the podcast, among many topics, we discuss:

  • How leadership is the best ingredient for social change effectiveness.
  • What true leadership means.
  • What a Theory of Change is and why it’s crucial to any social change organization.
  • How to develop a Message of Impact and create a Case For Investment.
  • The importance of moving from fundraising to financing and what that shift looks like.
  • Debunking the “overhead myth.”
  • And much more…

Below is the podcast, or you can click here to listen to it.


Photo Credit: Ilmicrofono Oggiono

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How Scarcity Thinking Holds Nonprofits Back

birdsThere are many things that hold the nonprofit sector back, not the least of which is a lack of money. But perhaps a bigger impediment is the scarcity thinking that may actually contribute to that lack of money.

Most nonprofit leaders, their staffs, board members, and even funders automatically think that resources will always be scarce. It is such a profound psychological impediment because if your assumption is constant deficiency, then you will never try for more.

But shifting this nonprofit mindset from never having enough (scarcity), to endless potential (abundance) could transform the sector.

MIndsetScarcity thinking is dangerous because it demonstrates a destructive fixed mindset. Carol Dweck’s pivotal 2006 book, Mindset: The New Psychology of Success, describes two ways that people view their abilities, a fixed and a growth mindset, and I think her approach holds great insight for the nonprofit sector.

A person with a fixed mindset believes “that your qualities are carved in stone,” whereas a person with a growth mindset believes “that your basic qualities are things you can cultivate through your efforts.”

Dweck describes the benefits of the growth mindset:

[In the growth mindset your] traits are not simply a hand you’re dealt and have to live with…In [the growth] mindset, the hand you’re dealt is just the starting point for development…People in a growth mindset don’t just seek challenge, they thrive in it. The bigger the challenge, the more they stretch…Sometimes people with the growth mindset stretch themselves so far that they do the impossible.

Isn’t that exactly what we need more of in the nonprofit sector, more seeing the hand you’re dealt as just a starting point, more doing of the impossible?

The growth mindset ultimately leads to “an ever-higher sense of achievement” and “a greater sense of free will.” Wouldn’t that improved sense of achievement and greater sense of free will be transformative to the nonprofit sector?

Nonprofit leaders can drive this shift by moving their organizations and supporters from a fixed to a growth mindset, in several areas:

And the list goes on. The point is that there is tremendous opportunity in the simple act of shifting your thinking. By removing the shackles of a fixed mindset you can set your nonprofit, your board, your staff, your funders and ultimately your social change goals on a path toward what you once thought was impossible. That’s powerful.

Photo Credit: astridle

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