What Does Non Profit Management Company Do?
The majority of the work done by nonprofits is truly heroic and of a high quality. And they’re also raising awareness for good causes, just as large foundations do. Yet when you read stories about big foundations or others, their specific philanthropic or corporate strategies rarely make the cut.
“How do we get our specific areas of focus on our own foundation’s performance?” This is actually a good question and one that I want to get into. The answer is fairly simple: they hire people with specific skills.
In other words, the reason you won’t hear much about most foundations is that the members of the board are trained in nonprofit’s area of focus and position themselves accordingly. Let me explain. You see, I recently had the opportunity to speak with one of the world’s top “patron” firms.
You see, this particular firm brings its expertise in understanding, targeting and training staff to help develop an entire organization, and a specific issue in one specific country. One of their greatest strengths, I was told, is their ability to construct an organizational structure that provides what they call the “seed funding”. By that, they mean they understand exactly where you are in your problem, how to navigate through the weeds, and how to develop a relationship based on trust and confidence. These are all areas that may have been ignored and forgotten by a small firm.
Not everyone has unique challenges, and not everyone has the same amount of money. That’s why the best philanthropic work often comes from those who understand the unique challenges of their target audience. And this is the problem, I hope you’ll take away from today’s article.
If you’re a philanthropist, you need to keep an eye out for how non profits are using their resources and building relationships with the people and organizations they support. If you’re a CEO or industry leader, you need to pay attention to how your customers are responding to your specific services.
So what do I mean by “target audience”? This is the key to understanding how each of the foundation owners on my advisory team could make a great deal of difference in their company.
Every one of the nonprofit advisory management consulting firms I’ve worked with has used different tactics in reaching their customers. Some build relationships with local and regional leaders, while others get their contacts in the business community. But some strategies are effective at creating some impact, some “kicking the tires”.
Others “find” clients, pursue strategic partnerships and apply organizational resources, wherever possible. Those are the strategies I focus on. I simply provide the intelligence and then help them design the strategy.
A great example of how smaller nonprofits can leverage their wealth and power is described in my book “The Good Profit: A Winning Strategy For Investors”. My former boss at my consulting firm was trying to create an image for a community health organization. He contacted a think tank group in the region and “fired” them up to help.
By doing so, he opened up new opportunities for nonprofit entrepreneurs to target a larger audience. And it turns out that his efforts didn’t come cheap! Those independent nonprofits gave money because they thought they were doing good, not because they wanted to be part of a bigger project.
If you’re thinking about starting a non profit, and you want to do more good in the world than merely produce more profit, I’d urge you to look at their strategy and consider it seriously. You may find that the profits will be there one day, but not if you don’t have a plan.