perspectives on what makes a good nonprofit great

1. What makes a good organisation… GREAT?
A PRESENTATION TO THE TONIC CONFERENCE, TAURANGA, NEW ZEALAND
B Y K A T E F R Y K B E R G , T H I N K T A N K C O N S U L T I N G
K A T E @ T H I N K T A N K . C O . N Z
1 0 N O V E M B E R 2 0 1 6
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2. Outline
1. Definitions of GREAT
2. Expert opinions on what makes a non-profit great
3. My thoughts on what makes a non-profit great
◦ What helps to effectively enable positive social change?
◦ How does GOOD compare to GREAT?
◦ How to fund great organisations
4. Six useful questions
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3. What does GREAT mean for non-profits?
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Peter Drucker:
 “The bottom line for a non-profit organisation
is changed lives”
My definition:
 “A great non-profit effectively enables positive
social change”
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4. What others say
on what makes a good organisation great
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5. What the experts say:
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Peter Drucker – the management school
approach:
 Mission comes first
 A great strategy
 Managing for performance
 The right people and relationships
 Great leadership
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6. What the experts say:
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Charity rating sites – it’s all about metrics:
 Givewell:
 Evidence-based programmes
 Cost effectiveness
 Transparency
Charity Watch
 Programme costs vs overhead costs
 Efficiency of fund-raising
Not really measures of changed lives!
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7. What the experts say:
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Forces for Good: Analysing what helps impact:
 Both advocate and serve
 Harness market forces
 Engage supporters, donors and volunteers
 Work as allies not competitors
 Be nimble and innovative
 Share leadership and empower others
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8. My personal perspectives
on what makes a good organisation great
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9. What helps enable positive social change?
 Working at “kitchen table and
legislative chamber”
 Working together
 Environments where people help
themselves and each other
 Challenging power structures
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10. Good compared to Great: Vision
A GOOD organisation:
 has a clearly articulated
vision / kaupapa
A GREAT organisation:
 uses their vision for
everyday decision making
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11. Good compared to Great: Community
A GOOD organisation:
 Consults with & serves
their communities
A GREAT organisation:
 Actively involves the
communities they serve
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12. Good compared to Great: Approach
A GOOD organisation:
 Provides effective, evidence-
based services
A GREAT organisation:
 Supports people to help
themselves and each other
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13. Good compared to Great: Leadership
A GOOD organisation:
 Has good leadership and
strong teams
A GREAT organisation:
 The whole is greater than
the sum of the parts
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14. Good compared to Great: Money
A GOOD organisation:
 Has well managed finances
A GREAT organisation:
 Has fit-for-purpose finances
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15. Good compared to Great: Impact
A GOOD organisation:
 Evaluates their impact
A GREAT organisation:
 Constantly learns and adapts
what they do
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16. Good compared to Great: Collaboration
A GOOD organisation:
 Networks well and has
MOUs in place
A GREAT organisation:
 Works collectively for the
good of communities
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17. Good compared to Great: Relationships
A GOOD organisation:
 Has good relationships with
everyone
A GREAT organisation:
 Has open, honest and brave
relationships
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18. Funding a great org - where philanthropy fits in
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Income Source Philanthropy?
Contracts for Services
Traditional fund-raising activities (eg events)
Earned income (social enterprise)
Membership
Sponsorship
Grants Y
Donations (including bequests and regular giving) Y
Crowd-funding Y
Social finance (eg social loans) Sometimes
Adapted from Exult - Helping Non-Profits Grow www.exult.co.nz

19. Helpful Hints for philanthropic funding
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 Look for a close fit between what you do and
what they fund
 Try to have a conversation before applying
 Look at who they have funded & how much
 Write applications for an audience who:
 Don’t have much time (keep in succinct!)
 Are not experts in your field (keep it simple and clear)
 Calculate your “net grant” ($ received – your time)
Build honest, reciprocal relationships with funders
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20. Six useful questions
1. Do we use our vision as a touchstone for
decision making?
2. Does our board and team reflect our
community?
3. Do we put our community first? (Even, if
necessary, ahead of our own survival?)
4. Can we articulate why we do what we do?
5. Are we a learning organisation?
6. Do we have robust relationships within our
organisation and with our stakeholders?
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21. Final thoughts
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 “Changed lives” and effectively enabling
positive social change is hard, important
work
 The road is long, slow and full of potholes
and things beyond our control
 What matters is the journey
 The most important thing is relationships
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