Episode 131: The Future of the Nonprofit Pipeline (Succession Planning in This Current Climate)
Quiet resignation by a generation that turns down 6-figure salaries + health benefits, retirement, and bonuses. What's the future of the nonprofit sector when it can barely provide their staff with part time positions at minimum wage. The impact for the nonprofit pipeline is dim. Learn what drastic steps need to happen to ensure the future and sustainability of the nonprofit sector.
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🔦 NONPROFIT SPOTLIGHT 🙌🏿
Kiasi Tech Solutions Pt. 3
👉🏿https://www.kiasitechsolutions.com/
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🚀 RESOURCES TO HELP YOU RUN A SUCCESSFUL NONPROFIT
The Nonprofit Volunteer Program
https://www.amazon.com/Nonprofit-Volunteer-Program-Structured-Convince/dp/1733367861/
How To Price Your Programs for Profit
https://fusion.amberwynn.net/product/how-to-price-programs-for-profit/
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Podcast Transcript
Speaker 1 (00:00):
Welcome to On Air with Amber Wynn, where nonprofit leaders learn 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 (00:22):
Welcome to On Air. It's your girl Amber Wynn. And today I want to talk about something that has been riding me for a couple of weeks. I kind of alluded to it a couple of episodes ago, but I want to talk about the future of the nonprofit pipeline, specifically succession planning. In this current climate. In my opening, I talk about long-term impact and sustainability. And so this episode, I want to focus on what it's going to take for us as a sector to ensure that your nonprofit can get to a place of long-term impact and sustainability. We're going to dive deep when we come back. If you're just starting out and have limited resources, you may be tempted to use a volunteer based model for your nonprofit funders prefer paid staff because there's more accountability and consistency. But if you want your proposal to be competitive, then having more than just volunteers who come and go is essential.
(01:32):
Check out my building and effective nonprofit volunteer program toolkit. It provides all the essential elements of an effective nonprofit volunteer program. Things that demonstrate standardization, consistency and continuity. Learn how to develop a nonprofit volunteer program funders. Feel comfortable with funding. Order your copy today. Welcome back. You're on air with Amber Wynn. And today I'm going to go deep, y'all. I'm going to get a little bit serious because this is a serious situation. We're talking about the future of the nonprofit pipeline, and it's important that we understand in this climate in particular what that means. A pipeline is something that's filled, right? It's filled, and you see the evolution, the nonprofit pipeline in terms of its leadership is going to dry up. It's going to dry up if we don't make some drastic changes. Right now, we're experiencing a generation where, and I ain't mad at 'em, if a company does not put their needs first, if they don't even take into consideration, then they're out.
(02:46):
You know what I mean? I mean, generation X baby boomers, we talk about this generation, but I think there's something to be said. Are we to work ourselves to the bone only for us to drop dead for them to step over our bodies and keep moving? They're saying, no, this doesn't work for me. And this is the industry, the corporate industry where they are receiving benefits, living wages, even sometimes bonuses. They're saying, no, the way that this is structured, it does not serve me well. And if they're saying no to an industry that can provide them with benefits, that's paying them a living wage. What are they saying to the nonprofit sector who expects them to work with no benefits to work part-time based on if they get a grant? So there may be a hiatus of a month or two before another grant comes in. They don't get benefits, they don't get vacations. What can we expect? There's such a small percentage of nonprofits who are thriving, who are paying themselves and paying their staff living wages. This is a small percentage between 10 and 20%. That's small. And so I'm saying to you, if we don't turn our organizations around, if we don't create succession plans whereby our current nonprofit leaders hand off the torch to the younger nonprofit leaders, guess what's going to happen? What's been happening for over 200 years?
(04:31):
I've been thinking for 200 years. There's this thing called philanthropy. Why have we not solved for the world's most pressing challenges? We haven't solved for them? Because the formula doesn't work. Philanthropy as it has been designed is ineffective. It's broken, it doesn't work, and it's getting worse. Philanthropy now is about wealthy people preserving their legacy. It's about them saving money. It's a tax deduction. And so they only have to give out 5% and then they're growing their wealth and they're growing their wealth, and they decide when they give it out. But for those of us receiving on the receiving end, it hasn't gotten any better. And it's because we continue with this nonprofit poverty cycle and it has to end. Otherwise, there will be no nonprofit sector. The leaders right now started their nonprofits because they have passion in their heart and they saw a missing in their community and they wanted to make a difference.
(05:39):
And so this is why they get up day in and day out and serve their community when they're not making a living wage, when they don't have a retirement. And guess what happens? Because they don't have a retirement. That means they have to continue to work so that they can pay their bills. And so they end up dying at their nonprofit. And when they die, that institutional knowledge dies with them. And then the person who steps into that role has to start all over. So we have this lack of continuity in the community, right? The program start, the program stops. If that person dies, so does the relationships with the people in the community. So this new leader has to establish new relationships. They have to establish new programs. And so we never, ever really solve for the problem. If we can bring in new blood, teach them what we know as seasoned executive directors, teach them what we know, then they bring in what they know, right?
(06:39):
Their technology, their views of the world, how to streamline processes. Then that means that the programs are going to get better and stronger because we have the foundation of our knowledge, the seasoned nonprofits, and then the benefit of their knowledge with all of their technology, how to do things smarter, more efficient. And now we can solve for the problem. But if we continue to have break in services, break in programs, new leadership, we can never solve for the problems. And so that's what's been happening. We don't have enough nonprofits that the leaders are making a living wage, that the leaders get to rest. They don't get to take vacation, they don't get to retire. They die at their nonprofits or their nonprofits go away. That is what's going to happen to the pipeline of the nonprofit sector if we don't make some drastic changes. And guess what?
(07:36):
In this world right now, we need all of our nonprofits to be viable. We need our nonprofits to be in the community, shoring up all of those individuals who need your services. So if we don't do something drastic, it's going to be a very, very dark day for this country. So what am I saying? I'm putting out a call to all of my seasoned nonprofit leaders who are like, I'm getting tired. You should be tired. You're doing all of the work. But before we tap out, we got to make sure that this next generation is excited about tapping in. So one of the last things that we need to do is to create a different infrastructure for how our nonprofits are funded. We have to make sure that this next generation, that they're not burnt out at 54%. We have to make sure that they are making a living wage, that they have vacation and sick time, that they have life insurance and that they have retirement.
(08:41):
Because if they don't have those incentives to step into the space, they are not going to. And people are saying, I'd like to have that. And I'm saying to you, you can have it. You can have it, but you've got to step back and stop doing things the way you've been doing. You've got to stop hustling. You've got to stop making ends meet, and you've got to create an organization that is a viable nonprofit. The way that the IRS has said, it should run. That's what you need to do. You need to make that shift. Build out your infrastructure, create a funder ready budget, need to make sure you have measurable goals and objectives. The roadmap is there for you. I have it for you. Go to my website, www.amberwynn.net, and download the dashboard. It tells you everything that you need to have in place in order to look the part, in order to be a viable nonprofit where nonprofit leaders and individual supporters feel comfortable with donating to you because your infrastructure is tight, because your organization looks like a bonafide business.
(09:48):
People aren't going to just write you a check because you're a 501(c)(3). That's their investment. How will they know that they're going to get a return on their investment? Because you have the infrastructure that says it. You can provide them with financial statements. You can provide them with impact reports. You can provide them with a list of your board who are professional leaders, who according to the IRS, because that's their fiduciary responsibility, is going to lead the organization ethically. All of these things matter. If you've been struggling with funding your nonprofit, you need to look inside. And I'm saying to the whole lot of us, we need to look inside. The sector needs to look inside so we can reshape the way that our nonprofits are functioning because that pipeline is going to dry up. Our next generations are saying, no, sir, no ma'am, not me.
(10:43):
I'm not going to walk around here starving. I'm not going to take my savings, my itty bitty savings, and to run a nonprofit, it's not going to happen. So my call for us today is to really think about the nonprofit sector and where it's going to be in another 10, 15 years. If we don't make that drastic change, I'm down for the cause. I have the solution. I just need everybody to get on the same page so that we can make sure that we can provide communities that need them the most with the resources that they need.
(11:16):
That's what I'm saying. Alright, so the future of the nonprofit pipeline is making sure that we put in place a succession plan that is going to incentivize next generations to come into the nonprofit sector. And that's what I'm in partnership with you to do. Now, we're going to pause, but when we come back, it's your time to ask me your questions with Ask Amber when we come back. Not sure how to price your programs or how to cover salaries. Are you scared to increase your program fees? If you're struggling to fully cover the cost of running program, then you need how to price your programs for profit. This workbook provides step-by-step instructions for how to develop programs funders love to fund, determine the cost to charge for your programs and present salary costs in a way that funders will approve. Learn the secret formula I use as an executive director for how to fully cover program costs.
(12:15):
Order your copy today and you're back with on Air with Amber Wynn. Today we're talking about the future of the nonprofit pipeline, and now it's time for you to ask me your question. If you have a pressing question, doesn't matter. Whatever it is, you can hit me up on any of my socials and ask your question. The question today is from Keith. Keith is out of Paramount. And his question, which is a common question, is, where do I find grants to start a nonprofit? Look at my face, Keith, and the rest of the world. There is no place where grants are to start a business. Funders do not provide funding to start a business. And a nonprofit is a business. A nonprofit is a 501(c)(3). That C stands for corporation. A nonprofit is a business. And when you start a for-profit business, you have to go through the process whereby you demonstrate to your potential funders that you have everything in place to run your business.
(13:24):
Not only do you do market research where you identify who your competitors are, but you talk about what it is that you're doing. So your product or your service, and you come with money, you come with 25, $50,000 to start your business. The same expectation is there for a nonprofit. When you start a nonprofit, you need to come with money to start your nonprofit because it is a business. You need to be able to pay for your website. You need to be able to pay for your logo. You need to be able to open a bank and put money in that bank so that you can pay for other business expenses. You need to be able to pay for salaries. That is your responsibility as a business, as a functioning entity in your state. There is no place, there is no funder that is going to give you money to start a nonprofit because what it says is you are not ready.
(14:28):
If I have to give you money to start a business, then you shouldn't be starting a business. The same goes for a nonprofit. So I know that's a long-winded answer, but I really want everyone to understand that if you have no money, then you should not start a nonprofit. It's only going to get progressively worse because not only are you starting business in the whole, but the longer that you run that business, you get deeper and deeper in the whole, and you think, oh, I'm just going to fund my nonprofit for a couple of months until the grants come in. But if you started with no money, that means you don't have the infrastructure. You didn't pay for your systems. You didn't pay to get your budget created the right way. You don't have what it takes. So you start in a deficit, and the longer you run your organization, the deeper and deeper you get in the hole.
(15:24):
So my answer to you is there are no grants to start a nonprofit after you've saved 25,000, $50,000. Come holler at your girl. I'll help you put the infrastructure in place so that you can start off on the right track. All right. Alright. Now we're going to shift to my favorite part of the episode. I know I say that every week, but it really is because I get to shine a light on the most amazing people on the planet that will be my nonprofit leaders. And we are on part three of our conversation with Dr. Simone Washington of Kiasi Tech Solutions. So let's jump right in.
Speaker 3 (16:14):
I really did start my business with the idea that I wanted to create a one-on-one customized computer and technology training service, because anyone can go on YouTube and follow a video. Anyone can take a course, a college course. But I understand that there are just certain bits and pieces that people want to learn. Instead of going through an entire four month course,
(16:46):
Let's just get down to what it is that you want to learn. What is the device that you have? What is it about your smartphone that's giving you trouble? And I just come alongside you to show you those things. So if your issue is, I don't know how to use my Google calendar and I need to use this for X, y, Z thing, well, that's what we're going to focus on. Oh, so now that I have gotten that under control, you brought up another point. I also wanted to learn how to do this. So this is not the structure that we have. It's not like anything else in the way that you tell me what it is that you want to learn, and that is what we focus on
Speaker 2 (17:54):
And we're back. That's part three of our conversation with founder Simone Washington, who, my goodness has a heart for seniors, who is a consultant who understands that bridging technology with the nonprofit sector can be challenging, but I think everybody has their own talent. Patience for some people, the ability to teach for other people. We all have our talents. And so I really respect those people in technology who can help us in the nonprofit sector to bridge that gap. So thank you, Dr. Simone. If you guys want to watch the interview in its totality, go check out my YouTube channel. Otherwise, we've got one more episode next week. Be sure to join me. So today's topic was the future of the nonprofit pipeline succession planning. In this current climate, I really want us as a collective to think about where we're going to be in another 10 years if we don't change drastically and start creating the type of infrastructure that the next generation will want to be a part of.
(19:16):
Because it's going to happen. And without intentionality, this sector is just going to dry up because those of us, with the passion and commitment doing it for free, we going to die, y'all. It's inevitable. And if there's not anyone there to pick up the baton, then the sector's going to dry out, and we just can't afford that. So let's get together, create a strategy, and let's make it happen. I'm here for it. As long as I've got air in my lungs, then I'm going to be here to support you on that journey. That's it for this week. If you found any value in anything that I said this week, be sure to subscribe and share with someone in the nonprofit space. And yeah, join me next week where we continue the conversation with Kiasi Tech Solutions. I'm here for you. That's what I'm here for. All right, fam. Until next week, take care of yourself like you take care of your community.
Speaker 1 (20:20):
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.
