I have been approached by leaders of nonprofit start-ups requesting guidance and input into their funding strategy and plan. I always let them know that I can easily give them advice about their strategy for raising money and plan for execution, but the first step is determining if they are viable and then if they are sustainable.
I receive strange looks because most people would not start a non-profit if it was not viable, or so we think. Viable is not the same as valuable. Almost every non-profit is valuable. If you are going to exert your energy to meet an unmet need in your community, that mission is valuable. But is it viable?
Viable by definition is "capable of working, functioning, or developing adequately." In my opinion, almost any non-profit can be viable for one to three years. If you have some financial resources to invest in the initial costs and a few people to volunteer to get the mission off the ground, you can have a non-profit that is capable of working, functioning, or developing adequately.
But long-term or sustainable is the goal. Sustain by definition is "to lengthen in extent, scope, or range." Can your non-profit stand the test of time? You will know the answer to this question by the third year. Here are the benchmarks of a sustainable non-profit.
1--Volunteers serve and give financially to support the non-profit (funding)
2--Revenue streams are diversified (funding)
3--Effective leadership team and/or board of directors (leadership)
4--You and the leadership team fulfill the mission each year (programming)
5--You serve or will serve a growing demographic (programming)
6--Costs for programs and services are covered, leaving nonprofit in the black annually (funding)
7--Leadership has a succession plan (leadership)