bottom line for non-profits

Have you ever been in a fundraising meeting and the funder has asked you what your bottom line is? Most funders expect you to answer in financial terms because to the corporate sector, bottom line means net profit or net surplus (some use the expression to force you to get to the point, but we will save that for another discussion).

I would like to challenge you to think about what the bottom line equivalent really should be in the non-profit sector. Businesses are typically in business to make money; otherwise, why would you be in business? We won't get into tax havens or write-offs here!

So, the bottom line for the corporate or for-profit sector is whether or not you did. Excuse the pun, but that makes sense. If your goal is to make money, then your bottom-line should be showing whether you have or not.

In the not-for-profit sector, what is the goal? Since most agencies deal with people, I think the end goal for most agencies is to have as many clients succeed or meet the purpose of your agency. So, I think the bottom line for non-profit agencies should be based upon how many clients have succeeded. This is also be known as the organizational outcome.

Since most non-profit agencies are established based upon meeting some kind of societal need, would not the bottom line be whether or not you have come closer to solving that need? If your mission states that you will find jobs for homeless youth, then shouldn't your bottom line be whether or not you have?

I am not saying that financial stability is not important. It certainly is, but I believe it is a means to the end, not the end. If you agree with my thinking, then think about how much time you devote to client success versus how much time you spend towards raising or cutting funds.

Many agencies that I have worked with over the past eight years have not really figured out their end goal in terms of client success. They are unsure of how to define it. They can tell me how many clients are currently using or have used their services, but they can't tell me what kind of success they expect from clients as a result of using their services or programs.

Consequently, it becomes easier to define the bottom line as financial stability.

Something to think about!!

Labels: bottom line, client success, non-profit, outcomes

posted by Brenda Northey @ 1:25 PM