Friday, March 29, 2024

Build stronger and better not-for-profits

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Organisations commission report detailing high-performance model.
Agri-Women’s Development Trust general manager Lisa Sims says the AWDT is proud to bring the report to life as a framework that can be applied in a practical way.
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Not-for-profit organisations in the New Zealand (NZ) primary sector are being asked to do more for less, with demand up but funding and volunteering down.

There is a need for not-for-profits (NFPs) to use a high-performance model for effectiveness and sustainability, learning from best-practice organisations, according to a report commissioned from KPMG by the Agri-Women’s Development Trust (AWDT), with the support of AGMARDT.

The report is available as a resource for NFPs in the primary sector, accessed through the websites of AWDT, AGMARDT and KPMG. AWDT general manager Lisa Sims said the project was designed so that the findings could be shared with those organisations continuing to adapt and maintain their impact in a period of accelerating change.

“AWDT, in conjunction with KPMG, is proud to bring this work to life as a toolkit and framework that can be applied in a practical and informative way,” Sims said.

The report provides an opportunity to review and benchmark performance and apply valuable insights to build future resilience.

The insights and tools in the report are due to the collective contribution of a range of organisations committed to delivering ongoing impact, to ensure the success of the food and fibre sector. 

“We also look forward to quality conversations and collaborations between entities of all stripes, committed to making a difference,” Sims said.

The first part of the report lists eight key traits of high-performing NFPs and the second part offers business model options.

The report says the high-performance NFP model has been refined and validated through research and interviews with leaders, government and business stakeholders.

The eight key traits are: pivotal leaders, capable people, a strategic anchor, ambition and attitude, investment and resource allocation, connection and collaboration, funder intimacy, and deployment discipline.

“Without pivotal leaders, the chances of successfully linking the other high-performance attributes are remote at best,” the report says.

Therefore, there has to be a leadership pipeline through proactive succession.

Under the heading “Strategic anchor”, the report says successful NFPs have a core distinctive and strategic purpose, which is never compromised.

Nevertheless, in the struggle for funding, which is often short term and specific, some NFPs compromise their identity and blur their mission.

Collaboration among organisations in the sector is essential to avoid silos and duplicated wastage.

“Not-for-profits need to realise that they are competing if they are not collaborating,” the report said.

A common theme throughout research is NFPs feeling they are “too unique” or better equipped than others to invest time in collaboration efforts.

Future resilience and sustainability rely on assessment and innovation in the business model.

Founded on a do-good idea, initiative, or initial pool of funding, many NFPs do well at first.

But then they falter as funding dwindles and they struggle to reach new heights.

“Each not-for-profit needs to consider its vision, ambition, value proposition and strategy in determining the appropriate business model that will enable it to be successful,” the report says.

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