2017-12-05 00:00:00 Nonprofit Organizations English Discover how your non-profit organization can benefit from a sustainability plan that covers both finances and leadership. https://quickbooks.intuit.com/ca/resources/ca_qrc/uploads/2017/12/nonprofit-board-discusses-organization-sustainability.jpg https://quickbooks.intuit.com/ca/resources/nonprofit-organizations/nonprofit-sustainability-plan/ Is a Sustainability Plan Part of Your Non-Profit Business Plan

Is a Sustainability Plan Part of Your Non-Profit Business Plan

2 min read

A sustainability plan is a description of how your non-profit plans to stay open over the long-term. The plan usually covers your organization’s financial health, but it might also touch on how to handle leadership changes and significant external events, such as a new competitor or a sudden lack of volunteers. A succession plan should be part of your non-profit’s business plan you might also write mini-versions for large projects or grants to convince donors that you can carry on the work after the initial funding runs out.

Life Without a Sustainability Plan

Non-profits are often cash-strapped and lacking in crucial resources. If that sounds familiar, you might find that your staff are constantly hunting for new grants, donations, and membership fees rather than devoting their time to creating an impact in the community. In this desperate struggle for funds, it’s all too easy to stray from your original mission the thing that motivates employees and bonds them to the organization. This constant worry and hustle can create an atmosphere of despair that leads to stress and burnout.

Benefits of a Sustainability Plan

A sustainability plan can help you avoid this stress. It creates a sense of calm about your finances, which can take away the gnawing worry and a perpetual lack of funds. This confidence can have a big impact on your culture; since staff members don’t need to question job security, they can focus on making a difference, which leads to a more effective organization and happier atmosphere. A strong, positive culture makes it easier to attract and retain employees.

When your organization is sustainable, it’s easier to stick to your mission. Rather than running in all directions at once, you can focus on creating programs and initiatives that serve your audience. This is true for financial sustainability, but it also applies to leadership; when you know that staff can cover the gap while you search for a new director, there’s no need to scramble or panic when someone quits.

A sustainability plan makes it easier to create a stable funding environment. It helps ensure that your programs can continue running, even when donations drop or a non-profit funding source ends unexpectedly. That way, you don’t need to depend on unpredictable funding sources. This stability has a circular effect when donors and funding organizations see that you have an effective plan in place, they can give with more confidence, boosting your bottom line and creating additional financial security.

Perhaps one of the most important benefits of a sustainability plan is the ability to think big when it comes to opportunities. Instead of worrying about how to cover staff salaries next month, you can go after bigger grants and endowments. You have the freedom to take risks and dedicate time to dream projects that have big benefits for the people you serve.

Parts of a Sustainability Plan

Sustainability plans vary based on your organization’s current situation. They might detail how your organization plans to:

  • Build an operating reserve that totals six months of operating costs
  • Expand your individual donor base
  • Create an annual giving membership program
  • Seek multiple grants simultaneously
  • Partner with local corporations
  • Establish an online giving portal
  • Hire a consultant to help you with long-term planning

The plan should also cover leadership succession; at a minimum, list the short-term responsibilities for each senior leader, and assign them to specific staff members so that you don’t miss important tasks in case of an unexpected departure. With a comprehensive plan, you can focus less on immediate emergency needs and adopt a big-picture, long-term mindset to guarantee your organization’s longevity.

Information may be abridged and therefore incomplete. This document/information does not constitute, and should not be considered a substitute for, legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.

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