Episode 52: A Nontraditional Approach to Sustainability - The Succession Plan
No one lives forever. A responsible, forward-thinking Founder is going to have a Succession Plan and fill the pipeline with the next generation of leaders to ensure the longevity of the organization. Learn how to powerfully position your organization for stability, growth and sustainability with a Nonprofit Succession Plan.
LINKS:
NONPROFIT SPOTLIGHT: Boys and Girls Club of America
Podcast Transcript
Speaker 1 (00:03):
Welcome to On Air with Amber Wynn, where nonprofit leaders learned to fuse passion and commitment with proven business strategies to create long-term funding, impact, and sustainability. And now here's your host and resident Philanthrepreneur, Amber Wynn.
Speaker 2 (00:29):
Hey fam. It's your girl live and On Air. And today we are winding down our a Nontraditional Approach to, and our focus today is sustainability. I believe in sustainability because people put in so much time and effort and work into their nonprofits, and a lot of times the nonprofit dies out after the founder dies or after the founder moves on or the founder can't figure out what to do. So it ends up just petering out. So today we are going to talk about a key factor in a nonprofits’ sustainability, and that's creating a succession plan. Now, I have so many nonprofit leaders who start their nonprofits not thinking about who they're going to pass that on to, and it is the most egregious mistake that you can possibly make. When you start your nonprofit you should always think about How is this organization going to thrive 10 years after I've moved on? Whether you make the choice to bring in a new leader or God calls you home like you want what you do to not be about you, but to be about the impact that you're making in the community. And the only way that you can really, truly impact your community is to make sure that those resources are there. So today I am going to talk to you about a Nontraditional Approach to Sustainability, and that focus is Succession Plan. So when we come back, we're going to jump into sustainability and succession planning.
Speaker 3 (02:15):
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Speaker 2 (02:46):
Welcome back to On Air with Amber. Today's episode is a Nontraditional Approach to Sustainability, the Succession Plan, and I really want you to listen to me because a lot of times people start their nonprofits for the absolute wrong reasons. They think they're starting their own company, they think they're starting an organization that they're going to pass down to their children, and that's not the purpose and function of a nonprofit. You can't pass your nonprofit down to your child because you don't own it. I have seen so many instances when a person started the nonprofit. One instance in particular, a gentleman started a nonprofit and he died and his son was in the role as executive director, and it had been in the family since he started it. And then guess what? The board voted out the son. Why? Because that nonprofit was not owned. The IRS has established the purpose, the function of a nonprofit, and the board has the authority to vote out the Executive Director.
Speaker 2 (03:58):
And what typically happens is that a Founder tries to do whatever he or she can to shore up the board. So that doesn't happen. And what I'm here to tell you today is the focus should not be on how do I prevent somebody from firing me from the nonprofit that I started? The focus should be on how do I strengthen this organization so that it is here in the community for decades? That should be the focus, right? Long-term sustainability has to be intentional. And starting a nonprofit for the right reason should be the reason or the undergirding of the reason why you do everything that you do. So, if you're starting a nonprofit because you think it's easy, number one, let me tell you, it's not. If you're starting a nonprofit because you think you're starting your own business, let me tell you that it's not.
Speaker 2 (04:48):
If you are starting a nonprofit because you want to be in control and you want things to go your way, well, you can do that, but you can also strangle your organization. When we talk about sustainability, we're talking about long term longevity, right?. So I'm going to suggest to you that even if you're not in that position where you're getting consistent funding, keep in the forefront of your mind, how am I going to make sure that what my vision is, my big vision for my community to fill the gap, the missing? How am I going to make sure that this continues long after me? What is my legacy going to be? And I'm suggesting that it should start with succession planning. When you hire people into your organization, maybe they start off as 1099. Check them out, see if they have what it takes for you to nurture and mentor them into a leader, right?
Speaker 2 (05:43):
Because here's what we want. We want the organization to continue. We want new blood. A lot of times in our communities, these institutions, churches, organizations, you name it, they become irrelevant because the leaders hold onto the power, right?. As we age, we have a lot to share. We have a lot to share with the generations beneath us, coming behind us, but we've got to let go. We've got to let them learn from us, but do things in new and more relevant ways; innovate. And a lot of times leaders won't do that. And so you'll see these organizations, you'll see these churches filled with older people, and as they die out the church, the organizations die out too. It's because we have not intentionally put in place succession planning. Succession planning is when you groom the next generation to take over when you're not there. And so sustainability, being around for a long time, means that different things are put into place.
Speaker 2 (06:46):
Listen, I do not like technology. Y'all know that. I say it all the time, but I integrate technology into my business because I understand the value. I understand that if I don't, then I'm not going to be relevant, right? And so that is a part of sustainability in a nonprofit. What you want to do is grow your organization and the way you grow your organization is by having new ideas. The way you grow your organization is by making sure that the people who work for you feel valued and appreciated. And if you are mentoring them to be leaders, you may not even groom them to take over your organization. You may be grooming them to start their own organization. Sustainability, to me, is a community effort. I have mentored so many young adults who have the talent and skill, but maybe I don't have the opportunity for them.
Speaker 2 (07:40):
So I do the best that I can to get them to a place where I say, okay, and now you need to fly because I'm not at a financial situation where I can give you a position that is worthy of the talent and skill that you have. But I've contributed to community because now they're going to go start their own organization or they're going to go work for another organization where what I've taught them, can now be realized. So, I'm going to implore you not to be afraid of somebody coming in and taking over your organization. Young people are grateful, right? Young people are excited to learn. Give them your knowledge so that then they can grow our communities. Ideally, it would be yours, but it may not be. Sustainability in your organization is going to stem from new ideas, new leadership. If everything comes from you and everything is yours, when you die, when you leave, so will your organization.
Speaker 2 (08:40):
And guess what? That is a disservice to your community. I have seen it. I have seen it so much so that I said, let me focus on this. When we talk about sustainability, we need to grow new leaders. We need to teach them everything we know and then let them bring in their little spice. Let them bring in their little twist and then make it even better. Okay? So, if you're unsure about what that means, what that looks like, I have of course a succession planning toolkit, and it maps out for you exactly what you can do to, number one, grow new leaders. Number two, create a space for succession planning, opportunities and promises. If you are hiring somebody, you can say, for example, listen, I can see you as the next executive director. However, I'm not at that place where we can pay two executive directors, but I want to train you.
Speaker 2 (09:39):
So how about I bring you in as a program manager and teach you everything that I know? You may not get the salary, but I'm going to mentor you. I'm going to introduce you to people so that you can then be ready. So all of that is included in the succession planning toolkit, what you should do, how you can look at it, how you can approach the different aspects of bringing in new leadership to make sure that your organization is around generations after you're gone. Or even if you transition, you may decide, I've taken this organization to the highest place that I can take it. I need to bring in somebody to take it to that next level. That is succession planning. That's you looking at your limitations or you saying, I've been doing this for 20 years and I'm tired. I'm ready to transition out. So check that out. I'm going to put the link of course in the bio. This is the succession planning toolkit, and it's going to help you to create long-term sustainability in your organization and ultimately in your community. All right, so now we're going to pause for a second, but when we come back, we have a question out of Culver City about sustainability, a sustainability plan. When we come back.
Speaker 4 (10:59):
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Speaker 2 (12:20):
Welcome back. You're On Air with Amber, and today we're talking about a Nontraditional Approach to Sustainability. Now it's time for Ask Amber. This is the opportunity for you to ask me your specific questions. I have over 30 years of nonprofit experience, so feel free to pick my brain. Today's question comes from Kendra, and she's from Culver City. She says, Hi, Amber. This is Kendra from Culver City. I've seen this question a lot on grant applications. What is your sustainability plan? What answer is a funder looking for when they ask that? That is a really good question. A lot of people get stumped with that. The bottom line is, a funder wants to know, how will you continue this program or project after I stop funding you? I've had people say, well, I'm going to ask you for more money, that's not the right answer.
Speaker 2 (13:23):
A Funder doesn't want to invest money in a project that's just going to die after their funding stops. That's a waste of their investment. They see their investment as contributing to the longevity of the project. But if you are banking on them to continuously fund this project, then nine times out of 10, they're not going to fund it, right?. So what they're looking for is that the organization has multiple streams of revenue, and you may say, well, that's what I'm asking them for money for. Right, but they want to see your effort. So my response is always, they're like, what's your sustainability plan? Well, I have five grants out to specifically fund this organization. If I know what those are, I'm going to list them. I have Disney, I have Sony. I let them know so that they know that I am being forthright with my efforts of continuously funding this organization.
Speaker 2 (14:27):
So you list the grants, and then the second thing you want to do is say that you're also fundraising. So if you say, in the fall, we have a gala and 70% of whatever the revenues that we generate from that gala is going to be designated to continuously fund this program. And then finally, you want to say, my board is committed to this program so much so, that you know they're going to fundraise to continue the program as well. They've included it in their fund development strategy. They are committed to continuing to fund this program. So you don't have to say that you have the money, but you do need to say that you are constantly fundraising for it and that it's going to be integrated into your budget. And so then it becomes a priority of the board. So that's what they're looking for. If you say, I don't know how I'm going to sustain it, then they're okay.
Speaker 2 (15:26):
Got it. And we won't be funding you, but that was an excellent question. Thank you, Kendra. And if you have a question for me, feel free to reach out to any of my social media handles. I'm on Facebook, I'm on Instagram. You can email me if you're on Anchor, you can leave me an audio message. I'm here to serve and I'm here to answer all of your questions. Now is the time of the episode where I get to spotlight the most amazing people in the industry, nonprofits, and today we're focusing on Boys and Girls Club of America. Last episode, we focused on Big Brothers Big Sisters and their counterpart, Boys and Girls Club of America, they've been around for quite some time, more than 150 years, and they've produced some superstars who've come out of Boys and Girls. You've got Magic Johnson, you've got Ashanti, you've got J Lo. There's so many amazing leaders who've come out of Boys and Girls Clubs of America. Let's take a look.
Speaker 5 (16:57):
These are more than just the sounds of a safe place to go after school. These are the sounds of interest being ignited and of mentors making an impact, the sounds of tutoring and tech and health and fitness and arts and music. At Boys and Girls Clubs we don't do just one thing, we do whatever it takes to meet the needs of every kid who comes through those doors. Because whatever it takes is what it takes to build great futures. Great futures. Start here.
Speaker 2 (17:32):
Hey, thank you Boys and Girls Clubs of America. My boys attended the Boys and Girls Club here in LA Challengers right off of Vermont. And 50, I said 51st, 51st. So I am an advocate of Boys and Girls Clubs as a single mom, Challengers was a lifesaver. As a matter of fact, they had transportation and they would go and pick up the boys, which saved my life because I was working in Monterey Park, and then I didn't have to try and just jet across the city to pick them up. So thank you for all you do. If you are interested in supporting a Boys and Girls Club in your neighborhood, visit www.greatfutures.org and yeah, support them. All right, so now as we wind down, we're moving into the mindset minute. It's where I share with you some of my musings about what I'm thinking about in the nonprofit sector.
Speaker 2 (18:34):
And today I want to tell you something that's really important in terms of growth in an organization. So I teach workshops and webinars, and I have a course. And the first thing that I ask a nonprofit leader to do is to stage their organization. What stage of development is your organization in? Today's topic is longevity does not equal readiness. Longevity does not equal readiness. So when you're staging your organization, there's certain things that you should have. So stage zero is like I'm thinking about starting a nonprofit. Do you have a concept, right? Have you vetted that concept? So you check the boxes, and a lot of times I'll have people coming into my space, their nonprofit has been around for nine years and in 15 years and 20 years. And so of course they think that they're going to go to stage seven. They think that they're ready to scale.
Speaker 2 (19:40):
But when I look at their organization, the infrastructure doesn't exist. The board is Moki, Pooky, and Chikamim. They don't even have an annual budget. So if I were to stage them, I would literally put them at stage one because they don't have an infrastructure, And without an infrastructure, you're not going to get consistent funding. How do I know? Because they've been around for nine years and 15 years and 20 years, and they're still self-funding their organization. So, people can bootstrap their nonprofit for years, they can self fund, but just because they've been around for that long, it doesn't mean that they're grant ready. It doesn't mean that they have a solid infrastructure. So what I want to encourage you to do right now, and this is you in the comfort of your home, but if you're serious about transforming your organization so that you can transform your community, you have to be honest.
Speaker 2 (20:42):
You have to be honest and look at yourself and say, What I've been doing for the past two, five, 10, 20 years has not produced the results that I want and that my community needs. If you can come from that place of truth, then I can work with you. I can help you transform your organization into a money magnet. I kid you not. But if saying, oh yeah, I'm at stage seven, or I'm at stage five, when in actuality you are in stage one, there's absolutely nothing I can do with you because you're not being honest. You're checking off boxes. Here's the thing, if you're checking off a box that says, oh, I have a mission. Your mission is six sentences long, that's googly Glock, that's not saying anything, then you can't check off that you have a mission. If it's not working for you, if it hasn't been producing for you, then be honest with yourself and say, this isn't working.
Speaker 2 (21:37):
I need to start from scratch. I need to powerfully position myself, or maybe not even start from scratch. I need to tweak some things so that I can get to that next stage. So I'm saying all of this because I have people come into my space and I get it. You've been humping for five, 10, 20 years, and who wants to go back to the end of the line? But if you're serious about making a change in your organization, some things have got to change because what you've been doing has not been working. So longevity does not equal readiness. Be truthful with yourself. Be honest with yourself. Make the decision that you're going to change your organization and the way that you're going to change your organization so that you can generate consistent revenue is to be honest with where you are as an organization. And if you can do that, then we can take you to the next level, which is getting your house in order, which is making sure you have a strong infrastructure, making sure you have strong governance and leadership so that you can then qualify for the funds that you need to strengthen your organization.
Speaker 2 (22:49):
Yes, I say that with so much love because I've been there and I know just because you've been around and just because you're not ready doesn't mean you haven't been doing the work you have. I'm saying in order for you to get what you deserve, which is consistent funding, you've got to shift and be real about where you are. If you are one person, stop saying, we, oh, we do this, we do that. If you don't have a full program, stop saying, oh, we got five programs. You do not be honest. Ground yourself in truth, because once you're there, then we can move. That's all I got for you today. Thank you for your time. Thank you for being with me. And if you got anything out of this podcast, I'd like for you to subscribe. I'd like for you to, but most importantly, I'd like for you to share if there's somebody in your space who could use this information, share love, share the love, it's free. All right? And yeah, I want you to take care of yourself, like you take care of your community because you give a lot. And I'll see you next time.
Speaker 1 (23:59):
Thanks for listening. If you enjoyed this episode, subscribe and leave a review on iTunes. Head over to www.amberwynn.net/podcast for the links and resources mentioned in today's podcast. See you next time.
