What are markers of effective nonprofits?
A checklist and an intro to a new recurring feature: case studies
The other week I wrote about the difference between “efficient” and “effective” organizations in the social service sector. My argument—not a new idea, but one that’s of the moment—is that we should be striving to be more effective.
As a follow-up, I got to thinking about what constitutes an effective organization because the markers are less visible. It may not look like data we include in an annual report; you can’t find it in a 990. Yet, if these aims are important, we need to make them more visible and defensible. To that end, I made a checklist of ten markers.
How did I come up with them?
They’re born from 20 years in philanthropy and nonprofits, and nearly as many years studying coaching, positive intelligence, and relationship and systems coaching. Then, the pandemic gave me the time and space to observe myself, and others, with a fresh perspective. I began to see more clearly how the sector creates feedback loops that pull us away from leading transformational change.
We’re at the mercy of high performance expectations, coupled with impassioned beliefs about our individual calling to effect change. It’s easy to see how these dependent mindsets prod each other. Externally, there’s a prevailing belief that we can always do more with less. The sector is scrappy and self-reliant like that—look at all we’ve done with practically nothing! With even less! Meanwhile, personally, we’re willing to make sacrifices of time, mental wellness, or reward, out of a dedication to the mission. The work is often personal to us, satisfying and meaningful in ways money can’t buy.
We can do more with less; there’s always more to do. But at what cost? At the invitation of burnout, fragile systems, and a focus on short-term gains over depth. One solution is to take more time to envision and explore what effective, sustainable work might look like. To that end, here’s my list.
What are the markers of effective nonprofits?
1. There’s a clarity of purpose
There’s a deep understanding of the mission and vision, why it matters, and how the work gets done. Meaning-making is nurtured through the system at various levels: it looks like clarity in the self (who are you? why are you involved?); clarity in leadership (how does your voice educate and inspire others?); and clarity in decision-making (are decisions vetted with purpose in mind—with democratic, open-minded, and considerate interrogation—and not just for ease, speed, or optics?)
2. They prioritize positive, trust-based relationships
There’s an awareness that all work gets done through relationships, so they work on them. This looks like building a culture of psychological safety—one that prioritizes skilled conflict resolution and communication, shared frameworks for decision-making, planning, and providing meaningful feedback. Stakeholders, including communities, partners, funders, and clients, are treated as true collaborators. (Often this doesn’t happen organically: it develops through skilled, trained facilitation.)
3. They’re nimble and responsive to context
There’s an openness to adjusting, evolving, and learning. Effectiveness is contextual, not a default to “best practices”—a phrase that, I believe, can be a bid for power and control. “Best practices” strips systems of their knowledge, intuition, agency, defaulting to an abstract, omniscient authority. They’re often stories we tell ourselves. Reclaiming a responsiveness to context centers the organization’s truth.
4. They value depth over speed
In defense of work that may not scale; that may be slow, or repetitive; that is not measured by volume, or speed, but by lasting impact. Quick wins don’t overshadow long-term change, and these organizations aren’t beholden to mysterious ideas of what the work “should” cost. (What should it cost? According to whom? How did we come up with numbers for what it takes to save a life, to turn a tide, to change a narrative … let’s interrogate this.)
5. People are transformed, not just served
Human beings transform. Simply, we do. It’s a feature of being alive. It’s up to each of us to determine how. Effective organizations know this, and know how to foster transformation in their clients, communities, and staff, instilling increased confidence, agency, and well-being. Another point—when these organizations tell stories about change, they tie them to systems, relationships, and behaviors—not just transactions.
6. The internal culture matches external values
This is what authenticity looks like. These organization treat all people with dignity and respect. Internal processes reflect the same care and justice the organization seeks externally—and there’s alignment between values, strategy, and everyday behavior.
7. Learning is baked in
Learning isn’t supplemental to the mission—it’s central to it. This goes for the organization as a whole, and the individuals within it. There’s time and space for reflection, experimentation, and growth. Failure is seen as part of the process, not something to hide or fear. Metrics are used to learn, not to prove, punish, or please.
8. Thinking is expansive
Thinking that transcends the bounds of an instance or individual organization—beyond the confines of a strategic plan. Maybe it looks like coalition or relationship building, participating in broader dialogue and engagement. It’s also planning that includes sustainability, succession, and future community needs. It’s an investment in systems, infrastructure, and leadership development—even if it’s not “urgent.”
9. Equity and inclusion are lived values
They’re a practice—not a policy or a well-intentioned aspiration. People closest to the problem have power in shaping the solutions. Diverse voices are part of decision-making, and resources and opportunities are distributed with fairness and intention.
10. They leave a legacy
The other day, a friend whose job is to counsel people newly diagnosed with HIV said, “stigma can end with me.” That’s such a powerful way to understand the agency each of us has to shift narratives, beliefs, or practices beyond our walls—and it’s true. Legacy looks like an influence that ripples outward, even if quietly. The work becomes something larger than itself: effective organizations recognize and respect their narrative power at all levels.
You might be thinking, “Fine, but we’re just trying to stay afloat. How is systemic change our responsibility, too? Don’t we have to be practical and responsive to our constituents and funders?”
I understand. There is no one answer or right way. Here’s a personal story to close out. Once, as executive director, I got an introduction to a program officer of a big-deal funder—a funder that had the capacity to give our organization a huge boost in a rocky time. (Truly, it was an accomplishment to even be considered for support, and we were optimistic because we believed in our theory of change.) But in the end, the program officer declined to move us forward because our work, which focused on depth and quality of impact, wasn’t built to scale. Replicate, yes; scale, no.
After this phone call, we couldn’t help but to question our efficacy and approaches, too. Funders hold tremendous power in the ecosystem, and yet, effective work is effective work. It deserves a voice, a bold defense, and as much protection and love as we can wrap around it.
Love? Yes, I think so.
It’s really easy to fall into the trap of believing that what we do is more important than what we are. Of course, it’s the opposite that’s true: What we are ultimately determines what we do! — Fred Rogers
Your feedback, insight, and collaboration mean everything to me, and I want to begin recognizing you for it. Not everyone leaves a ❤️ or comments publicly, but with their permission to share, thanks to Zoie, Jenny, John, Greg, Matt, and Lainie.
The silver lining in an email hack is the opportunity to reconnect with people you haven’t heard from in a while. (Also, I am sorry to those of you who received that message. I’m so sorry.)
April is National Poetry Month. I hope you’re celebrating with writing or reading.
Vegas Breakfast Club is relaunching April 17. Please come!
I would not have come to find my way to this worldview without the support of my coach. Having a voice of reason, of love and support, is essential for change agents. If you want to speak about coaching for yourself, please reach out. If I’m not the right coach for you, I have wonderful colleagues and am happy to make an introduction.