“Good management is the art of making problems so interesting and their solutions so constructive that everyone wants to get to work and deal with them.” – Paul Hawken
Greetings, fellow change champion. Today, I want to talk about a topic that I believe is crucial for the success of nonprofit organizations: investing in administrative support.
Nonprofits face unique challenges that for-profit organizations do not. They operate in a constantly changing environment, have limited resources, and often have to rely on volunteers. In such a dynamic environment, administrative support may seem like a luxury. However, investing in administrative support is not only necessary but can also bring significant benefits to nonprofit organizations.
First, let’s define what administrative support means in the context of nonprofits. Administrative support includes tasks such as financial management, grant writing, donor relations, database management, and general office management. These tasks may seem mundane, but they are essential for the smooth functioning of a nonprofit organization.
One of the most significant benefits of investing in administrative support is increased efficiency. Nonprofit organizations have limited resources, and every dollar and minute counts. By having administrative staff who can focus on tasks such as database management and financial reporting, nonprofit leaders can free up their time to focus on strategic planning and fundraising. This, in turn, can help the organization achieve its goals more efficiently and effectively.
In addition, investing in administrative support can help nonprofits build capacity. Nonprofit organizations often struggle to attract and retain talented staff because they cannot offer competitive salaries. However, by investing in administrative support, nonprofits can offer staff members opportunities for growth and development. For example, an administrative assistant who manages a donor database may develop skills in data analysis and fundraising. This, in turn, can lead to career advancement within the organization or in the nonprofit sector as a whole.
Furthermore, investing in administrative support can help nonprofit organizations build a strong foundation for growth. Many nonprofits start as volunteer-run organizations, but as they grow, they need to transition to a more professionalized structure. By investing in administrative support early on, nonprofit leaders can ensure that their organizations have the capacity to manage growth effectively. This includes developing policies and procedures, creating job descriptions, and establishing performance metrics.
However, many nonprofit leaders may be hesitant to invest in administrative support because they fear that it will take away from their core mission. This is a valid concern, but it is important to remember that administrative support is not a distraction from the mission; it is a means to achieving it. By having efficient and effective administrative support, nonprofit leaders can focus on the core mission of their organizations.
Now, let’s look at some data to support these arguments. A study by the Bridgespan Group found that high-performing nonprofit organizations typically spend more on administrative support than their lower-performing counterparts. Specifically, high-performing nonprofits spend an average of 15.4% of their budget on administration, while low-performing nonprofits spend only 11.6%. This suggests that investing in administrative support can be a key factor in nonprofit success.
Moreover, a report by the National Council of Nonprofits found that nonprofits with professionalized administrative systems are more likely to receive funding from foundations and corporations. This is because funders want to ensure that their investments will be used effectively and efficiently. By investing in administrative support, nonprofits can demonstrate to funders that they have the capacity to manage their resources effectively.
Investing in administrative support is crucial for the success of nonprofit organizations. It can increase efficiency, build capacity, and provide a strong foundation for growth. Nonprofit leaders should not view administrative support as a luxury but as a necessary means to achieving their mission. By investing in administrative support, nonprofits can increase their chances of success and achieve their goals more effectively.
Thank you for reading, and as always, I welcome your comments and feedback. Let’s work together to build a better world.
If you want to go deeper and learn more about administrative support and nonprofit management, here’s an article and some books that I recommend:
“The Nonprofit Starvation Cycle” (Stanford Social Innovation Review): https://ssir.org/articles/entry/the_nonprofit_starvation_cycle
“The Nonprofit Handbook: Everything You Need to Know to Start and Run Your Nonprofit Organization” by Gary M. Grobman. This book provides a comprehensive guide to nonprofit management, including topics such as fundraising, board development, and financial management.
“Managing the Non-Profit Organization: Principles and Practices” by Peter F. Drucker. This classic book by renowned management expert Peter Drucker provides valuable insights into nonprofit management, including the role of leadership and the importance of performance metrics.
“The Only Grant-Writing Book You’ll Ever Need” by Ellen Karsh and Arlen Sue Fox. This book provides a step-by-step guide to grant writing, which is a crucial skill for nonprofit leaders who want to secure funding for their organizations.
“Database Management for Nonprofits: A QuickStart Guide” by Kristin A. Sharpe. This book provides practical tips and advice for managing donor databases, which is a key administrative task for nonprofit organizations.
“The Ultimate Board Member’s Book: A 1-Hour Guide to Understanding and Fulfilling Your Role and Responsibilities” by Kay Sprinkel Grace. This book provides a concise yet comprehensive guide to board development, which is a crucial aspect of nonprofit management.
Foundations): https://www.cof.org/blogs/re-philanthropy/2019-07-11/why-investing-nonprofit-administrative-support-matters
