The freedom to adapt: creating a better nonprofit sector
by Geoff Braun
“How do we collectively govern toward community outcomes?” — Geoff Braun
There is a growing consensus that Alberta may be settling into a new economic reality; that this time around it’s not simply a matter of making it through to the next oil boom. When Alberta’s fortunes fall, the demands placed on many nonprofits rise. So how do we adapt? How do we build a smarter, more effective nonprofit sector?
We can begin by understanding the sector is not somehow apart from us. Nonprofits are simply citizens availing themselves of a legal means of association, whether it’s to operate a theatre, care for the elderly, or protect a watershed. We create them, we work and volunteer for them, and we govern them. Each of Alberta’s 25,000 nonprofits is supported by a volunteer board of directors. And it is here at the governance level where we find much potential to adapt. If we can elevate governance, we can create a better nonprofit sector. There are a variety of ways this can be done.
At CCVO we’re frequently asked whether there should be more consolidation within the sector in the form of mergers or acquisitions. This is a loaded question. There is no ‘right’ number of nonprofits. Nor is the current composition the natural order of things. It just is. It’s what we, as citizens, have created. But that doesn’t mean we can’t challenge the status quo.
We all know of nonprofits that are great conceptually and fulfill an important role, but they struggle organizationally. They are never quite able to get administrative systems in place or to get ahead of cash flow problems. Unfortunately, a great idea does not a great nonprofit make. Some of these initiatives would be far better off nested within a stable, established organization, freed up to do the work that matters. This requires boards of directors that can rise above organizational interest and ask a very simple question: “What’s the best way to get this done?”
Likewise, this question needs to be asked at the front end when we’re looking to start up a nonprofit. Sometimes this is entirely the right thing to do, but other times it may be more effective to get involved in what already exists. The measure of a flourishing society isn’t the number of nonprofits we create. What’s important is the value they contribute to our communities. The same applies at the back end. There’s no shame in winding an organization down when it’s no longer needed or has accomplished its goal. Quite likely a celebration is in order.
Nonprofit governance is largely fashioned after corporate governance. We tend to govern down, through the CEO and into the organization; and not out, across organizations and into the community. This doesn’t mesh well with the contemporary thrust toward addressing complex problems using collective impact models. We need to have more conversations across organizations where we ask, “How do we collectively govern toward community outcomes?”
Finally, a word on safeguarding mission. For years we’ve been telling nonprofits to be more business-like, more entrepreneurial. Yet when a nonprofit applies their know-how and resources to a new problem or population, we’re quick to accuse them of mission drift, which apparently is a bad thing. Decisions to expand or otherwise shift the mission of a nonprofit shouldn’t be taken lightly and may require some legal work, but there is nothing morally wrong with altering an organization’s mission when it’s a sensible way to solve a problem or meet a need.
Nonprofit organizations serve as a means to an end; they are subordinate to the cause. When we adopt this perspective, we immediately elevate governance and create the freedom to adapt.
Geoff Braun is director of policy and research at Calgary Chamber of Voluntary Organizations. He has 25 years of experience in Alberta’s nonprofit sector. His previous roles included CEO of Prospect Human Services and executive director of Green Calgary.
