by Dr. Kevin Dean, President & CEO, Tennessee Nonprofit Network
Ok, y’all, we have to talk: the nonprofit sector has an addiction. We need to talk about the deep-seated, institutionalized obsession with two metrics: fundraising goals met and operating budget size. Lately, I’ve heard boards and staff justifying their belief that they will successfully navigate the chaos of 2025 because they met their fundraising goals and they are not scaling back. WRONG! We clutch these numbers like security blankets, convinced they are the ultimate arbitors of success. After two decades immersed in this world, I can confidently declare: they are not. They are the equivalent of judging a five-star restaurant solely on the volume of napkins they order. Growth and size are outputs, not indicators of true impact or, more importantly, long-term survival. You can be a fundraising titan and still be a hot mess behind the scenes. Some folks, bless their hearts, could sell a turd and convince you it’s a diamond.
What I’ve discovered is that there are three deceptively simple questions. Their answers, when truly unpacked, can swiftly illuminate the hidden vulnerabilities in a nonprofit’s culture, strategy, and leadership. Forget “blind spots”—these questions expose the vast, unacknowledged caverns of organizational vulnerability. If these answers aren’t shining bright, consider it a red flag—or perhaps a whole parade of them, complete with a marching band playing a funeral dirge for the organization’s future.
Granted, these are not the only questions nor is this an exhaustive list, but they are probably the most revealing in unearthing the truth behind the facade of successful fundraising and our obsession with “growth.”
Question 1: How Do You Train Your Board Members?
Our boards are the revered, often enigmatic, collective that supposedly steers the ship. Many nonprofits treat their board members like precious, delicate orchids—to be admired from afar, perhaps watered occasionally, but certainly not trained. The prevailing wisdom seems to be: “They’re smart, they’ll figure it out.” Or, worse, “They’re busy, we don’t want to burden them.” This laissez-faire approach is, frankly, organizational quicksand.
Untrained board members are like a ship’s compass pointing north-ish. They might have good intentions, but without proper orientation, they can veer wildly off course. Imagine a board where members don’t understand their fiduciary duties, the organization’s strategic plan, or even the basic legal compliance requirements. This isn’t just a hypothetical nightmare; it’s a recurring drama in many nonprofits. A board that isn’t regularly trained on governance, fundraising, program oversight, and their legal and ethical responsibilities is a bad board. Full stop. They become a liability rather than an asset, capable of making decisions that, while well-intentioned, could ultimately sink the ship.
Addressing the Elephant in the Boardroom:
This isn’t about rote memorization or endless PowerPoint presentations. Effective board training is dynamic and ongoing.
- Onboarding that Doesn’t Bore: Beyond the binder of doom (you know the one, filled with articles no one reads), create an interactive onboarding experience. Pair new board members with seasoned mentors, schedule one-on-one meetings with key staff, and perhaps even arrange a “day in the life” experience where they shadow a program director. Make them feel like part of the team, not just a name on a letterhead.
- Continuous Learning, Not Just Crisis Management: Don’t wait for a crisis to educate your board. Integrate regular, short training sessions into every board meeting. Bring in experts for deep dives on specific topics—say, risk management, ethical fundraising, or diversity, equity, and inclusion (DEI) best practices.
- Board Retreats with Purpose: Instead of a glorified golf outing (unless that’s truly strategic!), make board retreats focused on strategic planning, skill-building, and strengthening board cohesion. Use this time to address skill gaps and reinforce their roles.
- Leverage External Resources: Organizations like BoardSource offer invaluable resources, templates, and training programs specifically designed for nonprofit boards. Don’t reinvent the wheel!
Question 2: What Benefits Do You Offer Your Staff?
If the board is the brain, the staff is the beating heart, the hardworking limbs, and often, the very soul of a nonprofit. And yet, so many organizations treat their staff benefits package like an afterthought, a grudging concession to “market rates.” If a nonprofit can’t (or won’t) offer competitive benefits—and by that, I mean health insurance, retirement plans, paid time off, and professional development—it’s not just a sign of tight budgets. It’s a gaping wound in its culture and a flashing neon sign for retention issues.
Think about it. If you’re asking someone to dedicate their passion, energy, and expertise to a cause, but you can’t even ensure they can see a doctor without financial ruin, what message are you sending? “We value your dedication, but not your well-being.” This is both a moral failing and a strategic blunder of epic proportions. Burnout runs rampant in the nonprofit sector, and a lack of benefits exacerbates it. Staff leave, institutional knowledge walks out the door, and the cycle of recruiting and retraining becomes an exhausting, expensive merry-go-round.
Investing in the Heartbeat of the Organization:
Prioritizing staff benefits isn’t just “nice to have”; it’s a fundamental requirement for a thriving, sustainable organization.
- Holistic Wellness, Not Just Healthcare: While health insurance is critical, think beyond. Consider mental health support, employee assistance programs (EAPs), wellness stipends for gym memberships or healthy activities, and flexible work arrangements. True benefits address the whole person.
- Retirement Readiness: Many nonprofit workers sacrifice higher salaries for mission-driven work. Offering a robust retirement plan (even if it’s a modest 401k match) demonstrates a commitment to their long-term financial security. It’s a powerful retention tool.
- Professional Development as a Benefit: This isn’t just good for the employee; it’s essential for organizational growth. Fund conferences, certifications, online courses, and mentorship programs. Show your staff you’re invested in their careers, not just their current output.
- Transparent Communication: If you can’t offer everything right away, be honest and transparent about your plans. Perhaps you’re building towards a 401k match, or exploring better healthcare options. Showing a clear path forward can build trust and retention.
- Creative Perks: Beyond the big-ticket items, consider smaller, but impactful, perks. Think subsidized public transportation, discounted childcare referrals, or even a robust recognition program that celebrates achievements.
Question 3: How Do You Engage the Communities You Serve in the Decision-Making Process?
This is perhaps the most profound question, and often the most overlooked. Too many nonprofits operate on a “we know best” model, designing programs and making decisions in a vacuum, then parachuting them into the communities they purport to serve. This paternalistic approach is as ineffective as it is disrespectful and unsustainable. If an organization isn’t actively, meaningfully engaging its beneficiaries and community members in the decision-making process, it’s not truly representing their needs or aspirations. It’s building a house without consulting the people who will live in it.
This lack of genuine engagement creates a disconnect. Programs fail to resonate, services go underutilized, and the organization becomes an external entity rather than an integral part of the community fabric. It’s like trying to bake a cake for a party without asking anyone if they like cake, or even if they’re coming to the party. The result? A lot of wasted ingredients and a very lonely dessert.
Building Bridges, Not Walls:
Genuine community engagement is a cornerstone of impact and longevity. It moves beyond tokenistic surveys to true co-creation.
- Beyond the Advisory Committee: While advisory committees can be a start, true engagement involves deeper power-sharing. Consider creating community-led steering committees that have real decision-making authority over programs and initiatives that directly affect them.
- Participatory Budgeting: Empower community members to have a say in how funds are allocated for programs that serve them. This builds trust, ownership, and ensures resources are directed where they are most needed.
- Co-Design and Co-Creation: Instead of designing programs for the community, design them with the community. Host workshops, focus groups, and ongoing dialogues where community members are active participants in identifying needs, brainstorming solutions, and shaping program delivery.
- Listen More, Talk Less: This sounds simple, but it’s incredibly hard for many organizations. Create formal and informal channels for feedback that are easily accessible and genuinely anonymous when needed. And critically, demonstrate that you are acting on that feedback.
- Diverse Representation at All Levels: Ensure your board, leadership, and staff reflect the diversity of the communities you serve. This isn’t just good optics; it brings invaluable lived experience and perspective to the table.
- Community-Led Data Collection and Evaluation: Train and empower community members to collect data, conduct surveys, and participate in evaluating program effectiveness. This builds capacity within the community and ensures that success is defined by those who are directly impacted.
So, the next time you’re sizing up a nonprofit—whether you’re a potential donor, a prospective employee, or just a curious observer—look beyond the glossy annual report and the impressive fundraising thermometer. Ask these three questions. Dig into the answers. Because the truth is, an organization’s ability to train its board, invest in its staff, and genuinely engage its community isn’t just about good practice. It’s about survival. It’s about building a foundation so strong, so rooted in integrity and true service, that it can weather any storm, outlast any trend, and truly make a lasting difference in the world. And that, my friends, is worth more than all the fundraising goals combined.