Sean Hale

Leaders from the for-profit sector can have a wonderful impact on nonprofits. The most effective ones ones proceed with care. That includes keeping the Entrepreneurial Spirit in the “Goldilocks Zone:” not too little and not too much. “Too much” can take many forms, especially in small to mid-sized nonprofits: * Profit over mission. For nonprofiteers, the mission always comes first. * Profit over people. * Vocabulary. Like calling the organization a “business” instead of “nonprofit.” * Culture. Listen, learn, and adapt. * Biz ‘splaining. Because once people think you're condescending, they tune you out. But please don't bury your entrepreneurial spirit. The nonprofit sector needs it (in the right amount).

When facing budget cuts, keep long-term mission impact front and center. Nonprofits that do this will emerge from hard economic times stronger while those that don't could close their doors forever. Across the board cuts, for example, will unnecessarily weaken your nonprofit in key areas. Instead, look at how much each major activity contributes to the mission and how much money it makes or loses. Then strategically design your budget cuts with positive mission impact and positive budget impact top of mind. Similarly, continue making strategic technology investments. A $10,000 investment in equipment or software could end up making up for the productivity or impact loss of laying off a $50k/year staff position.

Seek out nonprofit technology investments that can pay for themselves. With a little analysis, you can identify and prioritize them. For example, new computers for staff versus sticking with the computers that are held together with duct tape and a prayer. Start by estimating the time wasted while staff twiddle their thumbs waiting for a computer to boot up, reboot, perform a basic function. Even with conservative estimates, we can usually get to a cost of $1,500 per year per employee of wasted time. (To say nothing of the morale impact of shoddy equipment.) Compare that to $750 for a nice new computer, and it becomes easy to make the case that the new computer will enhance staff productivity and pay for itself in just 6 months!

Your path to building strong professional relationships may look different from other people's. So experiment and discern to figure out what feels authentic and brings joy to you. For example, I've learned that as an introvert I simply can't attend a dozen or more events each month and be effective. More than two or three will leave me feeling like a zombie. Instead, I lean more into 1:1 meetings and small group gatherings. I find these to be funner, more aligned with my personal style, and they leave me feeling fulfilled. I've also learned to use social media, blogging, podcasts, and similar tools to identify like-minded colleagues and potential collaborators. These tools also help me to stay top of mind with folks.

Don't be a miser when it comes to basic technology for your staff. Good computers, a strong internet connection, and managed IT services are investments that quickly pay for themselves because they allow your staff to do their best work and be highly productive. Do the math: the loss of even 10-15 minutes per day due to slow or glitchy technology can add up to well over $1,000 worth of time for each person who ends up twiddling their thumbs. Also keep in mind the morale impact: crummy technology sends a message to staff that their work quality and productivity aren't high priorities. People who take pride in a job well done will suffer and eventually leave your organization.

When it comes to fraud in nonprofits, an ounce of prevention is worth a pound of cure. Probably even more. The annual external audit does little to identify or prevent fraud (despite myths to the contrary). Instead, engage a professional to help you design, implement, and follow up on things like: * A whistleblower protection policy * An internal audit committee * Appropriate internal controls, including: * Criminal background checks before hiring anyone who will touch money * The bookkeeper shouldn't have bank access * Someone else, not the regular bookkeeper, should pay bills and run payroll at least 2x yearly Bottom line: reduce the opportunity for fraud while increasing the likelihood that it will get detected early.