Tag Archives: philanthropy

Part three of three

Dr. Jan Young

In our last two posts, we’ve shared with you the wisdom of Dr. Jan Young, executive director of the Assisi Foundation of Memphis, about the development of business plans for non-profits. Here, we asked her to provide examples of how a business plan can impact an organization’s success.

Jan told us the story of an organization that “was limited in spite of successful outcomes serving individuals with significant needs in a challenging environment. Although they have a charismatic leader, diligent board and a clear focus on their mission, it was difficult to inspire donors to make the substantial investments necessary for growth.”

So, the group decided to create a business plan. “After completing their plan and being able to explain their various programs and services with greater clarity, they were able to get some seed funds for an ambitious effort to expand their services,” she said. “After demonstrating their ability to implement the initial phases of their business plan, they have successfully attracted other funders and have been able to leverage investments made in their collaborative partnerships.”

Jan also shared how the absence of a business plan contributed to the demise of another organization, which had “lost sight of its mission, started chasing money even when grant conditions conflicted and created costs beyond what the grants and fundraising would cover. Funds were inappropriately allocated, they lost credibility with funders, deceived board members, and they no longer exist,” she said.

“Although there were obviously things other than the absence of a business plan that led to this outcome, a review of the plan with the budget may have alerted board members earlier about the obvious discrepancies between what they were being told and what was actually happening at the organization,” she said.

Jan, who received a doctorate of nursing science from the University of Tennessee, has enjoyed a distinguished career in education, health care, the military and philanthropy, and she offers a unique perspective on some of the challenges facing non-profits. “One of the nuns I worked with in the past used to say, ‘No margin, no mission,’” she said.

In other words, “Passion and sheer force of will is rarely sustainable over time. Finite resources are a reality. Sometimes we must make tough choices about a priority. If something has value only to one person or a small group but is not perceived to have equivalent value by others or even the people being served, that becomes a situation of service to self rather than service to others,” she said.

Jan recommends several resources, including the Alliance for NonProfit Excellence, the National Council of Nonprofits,  the Free Management Library, and BridgeSpan.

To learn more about the Assisi Foundation of Memphis, visit www.assisifoundation.org.

© Copyright Mel and Pearl Shaw.

Mel and Pearl Shaw are the owners of Saad & Shaw. They help non-profit organizations and institutions rethink revenue sources. They are the authors of How to Solicit a Gift: Turning Prospects into Donors. Visit them at www.saadandshaw.com or call (901) 522-8727.

Part two of three

Dr. Jan Young

Previously, Dr. Jan Young explained how creating a business plan can help non-profit organizations assess their capacity, strategy and potential funding sources. Here she discusses the basics of creating a plan.

In her role as executive director of the Assisi Foundation of Memphis, Jan oversees philanthropic activities, management, community relations, and strategic direction, and has reviewed countless grant applications. She revealed that one component of a successful application is a budget that matches with an organization’s objectives and capacity. A well-developed business plan can help organizations achieve such cohesion.

According to Jan, a business plan should be the work of an organization’s executive team and board. It should include input from internal stakeholders across the organization. The plan may cover any period of time the organization chooses, but “it should be reviewed on an ongoing basis and revised as necessary. Most cover three to five years. The plan should be a dynamic tool that informs and guides their work and progress,” she said.

We know that the process of creating a business plan can feel overwhelming in light of all the responsibilities an organization faces each day. The amount of time it takes for a non-profit to create a plan depends on how long it takes to complete an assessment of the organization’s ability to deliver services and raise funds, its current and future role in the community, and its overall goals.

“The number of pages depends on the scope and complexity of the organization’s mission,” said Jan. “Keep it simple. One size does not fit all. There are actually one-page templates that some have found helpful, and a book written on one-page business plans for non-profits. The length is less important than the quality. And the quality is sometimes less important than the conscious, deliberate use of the plan.”

We also wanted to learn Jan’s thoughts on the role of the board when it comes to implementation. For example, does the board take on a different role when an organization is working from a business plan?

“The board is accountable for governance, counsel, and has a key fundraising role. When operating from a business plan (properly written), they can more easily help the executive director and staff revise strategies and make the decisions necessary to assure the mission can be supported,” said Jan. “Sometimes the discussions can become more objective in nature. While passion for the work is important, emotional support alone cannot sustain the organization’s staff to effectively accomplish the mission.”

Next, Dr. Jan Young discusses the benefits of using a business plan.

© Copyright Mel and Pearl Shaw.

Mel and Pearl Shaw are the owners of Saad & Shaw. They help non-profit organizations and institutions rethink revenue sources. They are the authors of How to Solicit a Gift: Turning Prospects into Donors. Visit them at www.saadandshaw.com or call (901) 522-8727.

Part one of three

Dr. Jan Young

One of the prerequisites for fundraising success is a fund development or fundraising plan that is tied to an organization’s strategic plan. While strategic planning has a long history within the non-profit sector, some organizations are now choosing to work from a business plan. Wanting to learn more, we reached out to Dr. Jan Young, executive director of the Assisi Foundation of Memphis, a health care legacy foundation that has awarded more than $150 million in grants.

A strong advocate of working from a business plan, Jan believes that “strategy without resources is a wish.” When reviewing grant applications, she has found many budgets incongruent with the goals, objectives or capacity of the organizations. “In basic terms, the math doesn’t work,” she said.

Working from a business plan can help an organization focus its resources, build toward sustainability and support successful fundraising. A business plan requires an organization to engage in the important task of assessing its capacity to deliver services (and raise funds!), as well as assessing the environment in which it works and the extent to which the services (or advocacy) it offers are needed.

But, we tend to hear more about strategic planning in the non-profit sector, and business planning for the private sector. Asked about the difference between the two, Jan explained, “Here’s what we typically see: Strategic plans have a greater focus on direction and tactics, and business plans have a greater focus on specific necessary resources, primarily sources and uses of funds, and sustainability.”

Over the years we have noticed that many strategic plans do not take into consideration where the money for the work will come from. Often we are brought in to help secure funds for priorities that have not been vetted by the appropriate individuals, foundations or granting agencies.

Jan recommended a correctly done assessment as one way to evaluate potential funding. Ask questions such as: What is the need? Who else is providing the same or similar services? What are the opportunities and challenges? To whom does it matter? (What is your value proposition?) If the non-profit ceased to exist tomorrow, would anyone notice?

Jan also suggested taking the time to address basic organizational questions. “In the simplest terms: Can the organization clearly state what it wants to do?” she asked. “What strategies does it wish to implement to achieve what it wants to do? Does it have the resources and assets such as people, time, facilities or equipment, partnerships and funding to implement the strategies? Can the organization define how it will know if it is making progress toward its goals? What will success look like?”

Next, Dr. Jan Young discusses how to create a business plan.

© Copyright Mel and Pearl Shaw.

Mel and Pearl Shaw are the owners of Saad & Shaw. They help non-profit organizations and institutions rethink revenue sources. They are the authors of How to Solicit a Gift: Turning Prospects into Donors. Visit them at www.saadandshaw.com or call (901) 522-8727.