Sustainable and Sound Management Practices

In this section the National Council has collected some helpful resources on sound practices in nonprofit management. We also recommend that nonprofits become familiar with the principles, practices, and standards  developed by many state nonprofit associations, and by other national umbrella groups, that offer guideposts for operating a nonprofit in a legal, ethical, and prudent manner.

Sustainability of programs and operations in a nonprofit: In an environmental context, sustainability generally means finding a way to use resources in a manner that prevents their depletion. In the nonprofit sector the phrase “financial sustainability” is commonly used to suggest that the nonprofit will be able to sustain itself over the long term, perpetuating its ability to fulfill its mission. For some organizations, finding a way to diversify income streams can be one avenue towards sustainability.

Measuring performance: Funders and others expect nonprofits to be able to demonstrate that the mission is being accomplished, and that the nonprofit is making a difference in individuals’ lives or in a community. In order to demonstrate the difference you are making, your nonprofit will need a process to evaluate results. Whether your process is called "performance measurement" or "outcomes evaluation," the goal is that the process will yield data that will make a case for support for your nonprofit objectively and persuasively.

Tools for sound management practices: Dashboards. Dashboards sound great, but what are they, and how do you actually use them? One example is to chart your nonprofit’s progress in implementing various policies or keep track of progress in updating the nonprofit’s procedures. A dashboard can chart not only the priorities for implementing various goals and give you a snapshot of the progress being made, but also illustrate who is accountable for which projects.

Learn about the important governance policies that the IRS expects all charitable nonprofits will adopt and about transparent practices that increase the public’s trust in nonprofits.

Also visit the section on Business Planning/Sustainability in the National Council's online bookstore.