The Power of a Good Organizational Assessment
Many times, nonprofits reach out for professional assistance with capacity building, technology upgrades, fundraising and more. The executive and board leadership generally have an idea of what they may need, but often lack clear insight about what is, or isn’t, working within their organizations.
It is great to hear from nonprofits that are willing to consider a fractional staffing model when the going gets tough. Fractional team members are easily on- and off-boarded and can be deployed with exceptional flexibility. Fractional professionals can fill a gap or staff absences and can fortify areas that aren’t performing well. They are not, however, a cure-all for an organization that is experiencing deeper problems.
A fractional approach to human resources may be just the thing to get an organization back on track. But what if problems persist?
This is why, more often than not, we suggest that nonprofits undergo an organizational assessment to ensure that our recommended staffing teams have the right combination of skills and expertise to support the path to success.
What does an assessment entail?
An assessment is a lot like the initial stages of a strategic planning or feasibility study process. Materials review, stakeholder interviews, discussions with leadership and analysis of technology and databases will add up to a deep dive into the inner workings of the organization.
For instance, a fundraising assessment will involve a comprehensive review of current fundraising strategies, operations, and outcomes to help establish a baseline of successful practices while identifying where modifications or improvements are needed. An assessment team will:
Review the annual development plan – goals, strategies, tools, and results of campaigns, appeals, solicitations, proposals, grants, etc.
Assess development policies and procedures to include review of fundraising cycle of identification, cultivation, qualification, solicitation, and recognition.
Meet and interview staff and volunteer leaders about current fundraising and capacity building.
Assess current staff/volunteer roles and responsibilities related to fundraising, including the role of the board.
Evaluate current fundraising communication/marketing messages and assets, including donor communications, cultivation capability, and use of social media.
Assess development systems and practices for donor outreach and management, gift acknowledgement, CRM, etc.
Review donor giving history and trend reporting for the last three to five years by category, demographics (where available), and intent for annual gifts, major gifts, planned gifts, corporate and foundation gifts, grants, special events, and earned revenue.
Examine the fundraising department’s categorized revenue and expense financial reports for the past five years (budget to actual).
In the case of an operational assessment, a review and analysis of the organization’s operating procedures would include mission, purpose, and execution of basic operational practices. In addition, the team might review:
Adherence to articles and bylaws governing the organization.
Strategic plans and any documents measuring progress.
Governance structures, position descriptions, roles and responsibilities.
Operating policies and procedures, and documentation of operational functions.
Financial reports showing percentages of revenue and expenses allocated by category and source.
All record keeping systems, practices, and policies including those specific to the donor database.
Print and digital communications tools and assets.
What do you gain from an assessment?
There is nothing like a fresh set of expert eyes to take a look at your nonprofit. Free of organizational history, personal relationships and office politics, an assessment professional will be free to ask the right questions, and the tough questions, about operations, programming, administration, tech, communications, marketing, and fundraising.
An assessment will gather feedback from your most important stakeholders – board members, executive team, key staff members, major donors, and others – about what they feel is going well, and what perhaps is not. You might be surprised at what you learn.
A hard look at the technology you are using and how you are using it will also be helpful. So many organizations are needlessly struggling with their tech tools. Is yours one of them? A technology expert can unravel the mysteries surrounding the technology you have vs. what you really need.
Are your goals realistic? Are you basing future revenue goals on an analysis of your current database? An assessment will align your ambitions to your capacity. With the right targets in view, everyone on the team will be better able to contribute to momentum.
An evaluation of governance will point out any issues that are impacting operations and strategic growth. This is especially pertinent for organizations that are outgrowing old models of leadership.
How does the assessment position you for next steps?
It is hard – some might even say impossible – to look at your own organization with full objectivity. And that’s okay. We should have emotional attachment to the work we do, and to the people we work with. But we also need to take the blinders off from time to time so that we can do what it takes to move forward.
An assessment is an opportunity to better understand where a nonprofit’s strengths and weaknesses are, making it clear how to make the most of the former and shore up the latter. The assessment team becomes a partner in identifying where the organization’s greatest opportunities lie as well as uncovering the root causes of its struggles.
The assessment report will include strong recommendations and a plan of action. It is an excellent tool for inspiring board and executive leadership to improve infrastructure, and to make informed decisions regarding everything from staffing to technology.
Is it worth the additional time and expense?
I would answer that question with another question: How is the trial-and-error method of capacity building going for you? An in-depth assessment is money well spent, especially if the challenges you are facing have become chronic and (seemingly) intractable. A professional assessment will ask the right questions and provide the answers you need to level up your organization.
Schedule a call to discuss how The More Than Giving Company can support your nonprofit with an organizational assessment.