1 WELCOME! ORGANIZATIONAL SUSTAINABILITY cohort program

2 PROGRAM OVERVIEW Identity and Purpose: What is core? Problems and Possibilities: What is the context? Gathering Commitment: How do we need to engage and align? Getting Real: How will we steward the change? IN PERSON SEMINARS HOMEWORK PEER GROUP ORGANIZATIONAL COACHING RESOURCES AND TECHNICAL SUPPORT

3 SESSION ONE: IDENTITY AND PURPOSE What is Core? Today’s objectives: Understand what a sustainability mindset is, and begin to consider what it requires – of leaders and of organizations Begin to identify what is core for your organization Identify your organization’s current revenue model and begin to explore the implications of that model Begin to define your organization’s mission-specific and fund development programs for the matrix map analysis

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5 EXERCISE: REFLECTED BEST ORGANIZATION What’s Your Organization’s Core? Unique approaches to the work Organizational values and principles Positive attributes of organizational culture Ingrained talents and strengths

6 NONPROFIT SUSTAINABILITY “ Sustainability encompasses both financial sustainability (the ability to generate resources to meet the needs of the present without jeopardizing the future) and programmatic sustainability (the ability to develop, mature, and cycle out programs to be responsive to constituencies over time).” - Nonprofit Sustainability: Making Strategic Decisions for Financial Viability

DUAL BOTTOM LINE

8 Identifying Your Revenue Model EXERCISE: REVENUE STREAM ANALYSIS

9 Donors do not give to your organization. They give through your organization to achieve their own desires… to fulfill their own aspirations…to live out their own values. —Simone Joyaux

10 REVENUE MODEL ANALYSIS

MATRIX MAP EXAMPLE

12 WHAT’S CORE? Defining your program portfolio

MATRIX MAP EXAMPLE: ALL PROGRAMS 13

MATRIX MAP EXAMPLE: BY SITE 14

MATRIX MAP EXAMPLE: BY METHOD 15

16 MATRIX MAP EXAMPLE: BY APPROACH

17 REVENUE STREAMSMATRIX MAP ANALYSIS Earned IncomeBlue Bubble Membership IncomeBlue Bubble Corporate Donations/SponsorshipBlue Bubble (usually) Government ContractsBlue Bubble Foundations-RestrictedBlue Bubble Foundations-UnrestrictedGreen Bubble Individual Contributions (unrestricted)Green Bubble Special EventsGreen Bubble In-KindGreen or Blue Bubble * Zero profitability * Expense affects size of bubble

18 HOMEWORK: Setting up for the Financial Analysis How will you define your organization’s set of mission-specific and fund development programs for the matrix map analysis? Before session 2: Finalize your definition of mission-specific and fund development programs (Sustainability Mindset, Chapter 4) Complete the financial analysis for matrix map (Sustainability Mindset, Chapter 6) Optional Reading: Sustainability Mindset: Chapters 4-6

DETERMINING PROFITABILITY

REVENUE  Restricted and earned revenue is assigned to the mission-specific program that generates it  Unrestricted contributed revenue (including general operating support) is assigned to the fundraising program that generates it EXPENSE  Staff time allocation is critical for an effective analysis and may be “off book”  Administrative / M&G expenses should be allocated across programs to capture the “full cost” of each program activity (including fundraising) HOMEWORK: FINANCIAL ANALYSIS

HOMEWORK: STAFFING PLAN Organization Staffing Plan Actuals 2015 ProgramsFundraising Position% FTE Admin.SharedTotal Executive Director100%10%20%30%20% 100% Position A100%20%30%50%100% Position B50%25% 50% Position C25%10%15%25% Position D0% Position E0% Position F0% Position G0% Position H0% Position I0% Position J0% Position K0% Total

HOMEWORK: SALARY PLAN 22 Organization Salary Plan Budget 2015 ProgramsFundraising Position Annual Salary Admin.SharedTotal Executive Director 75,000 7,500 15,00022,500 15, ,000 Position A 60, , ,000 30,000 - Position B 50,000 25, ,000 Position C 50,000 20,000 30, ,000 Position D Position E -#DIV/0! Position F -#DIV/0! Position G -#DIV/0! Position H -#DIV/0! Position I -#DIV/0! Position J -#DIV/0! Total 175,000#DIV/0!

DETERMINING PROFITABILITY

24 DISCUSSION QUESTIONS In Organizational Teams Planning next steps: What do we need to do to complete the homework? Who needs to be involved? When will we work on it? Reflection: What were your most important insights from today’s conversation? As you begin this process, how ready do you think your organizational systems and culture are to support and foster the changes you will be introducing? What strengths will you draw on and what barriers will you face?