Non-Profit Sustainability

Non-Profit Sustainability, Originally Published on LinkedIn on Feb 9, 2016

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Non-profits, foundations, donors and government agencies, are in a battle of over what defines sustainability.  Foundations, donors, and government agencies require non-profit grant applicants to state in their proposals how the project or initiative they are seeking funding for is sustainable.  At the same time, non-profit applicants are given a list of cost restrictions that, if included, would preclude them from funding. 

Upon funding, grantor-reporting requirements often include funding updates, initiative progress reports and could include metrics and feedback.  What is left out of the pre-funding proposals are the true back office operational funds necessary to execute the funded initiative and reporting.  These costs could include: computers, upgrading obsolete or unsupported software, internal computer networks and maintenance, support staff to promote/brand/market the initiative, program registration support, preparation of program materials, etc..  Each item or task just listed has associated costs and, with stable funding, provide operational efficiencies.  Non-profits use back-office workers and equipment for multiple initiatives to deliver quality programming, grant reporting, and mission work.  Not being able to properly fund these functions trap non-profits in a cycle of inefficiency.  Vital functions, to any organization, cannot be funded in fits-and-starts if true sustainability is the goal.

Sustainability implies stability and efficiency.  If the goal is sustainability, then investment in these areas is critical for the funder and the community that the grant was funded to serve.

Please visit www.tierneydevelopmentgroup.com for the full text of our Position Paper:  Non-Profit Funding Quagmire: Sustainability.  The barrier to sustainability.  What is true sustainability and how to get it?  January 2016, Kristen Tierney.

(c) 2016 All rights reserved.  Kristen Tierney, The Tierney Development Group.