Numerous local, national and international charitable organizations operate very much like corporations — with strategic and tactical goals along with robust performance and financial monitoring systems in place. Most importantly, they build, cultivate and maintain a strong culture composed of a dedicated and talented team of leaders and volunteers. Here are some of the key ways successful philanthropies are run like businesses:

1. LESSONS
PHILANTHROPIES
CAN LEARN FROM
BUSINESSES
JEFF GREENSTEIN
5

2. Numerous local, national and
international charitable organizations
operate very much like corporations —
with strategic and tactical goals along
with robust performance and financial
monitoring systems and expectations.

3. Here are some of the key ways successful
philanthropies are run like businesses:

4. CULTIVATING TALENT AND CULTURE1
Just as a corporation will take the time and
effort to recruit the best leadership and
management talent possible, a philanthropic
organization can follow a similar path to
build its board and internal team.

5. 1 An early stage philanthropy needs
talent that can rapidly grow whereas a
complex existing organization may
require an entirely different skill set.
It is critical that the leaders of any
organization first assess their talent needs
and then devote the energy and discipline
towards attracting that expertise.

6. 1 A passionate and talented team will
elevate all aspects of the organization
and the people with whom they
interact. When philanthropic
organizations thrive, it’s largely due
to a shared sense of purpose and
commitment. Passion attracts,
retains and motivates talent.

7. HAVE A PLAN2
A philanthropic organization of any size will have
lists of tasks and projects that need to be
prioritized and completed within a certain time
frame. Determining a priority requires an
organization to know where they are going.

8. 2 Developing a plan for an organization,
business or charity, begins with defining its
longer term strategic objectives.
A philanthropy that operates smartly based on a
plan builds credibility and trust from those it
interacts with – donors and beneficiaries.

9. 2 Using both a strategic and tactical plan as a
baseline enables for the measuring and
monitoring of activities in order to highlight
those areas requiring a course correction,
greater attention or an expansion opportunity.
Relentless planning, focused attention and
discipline are critical components to the
success of any organization.

10. PRUDENT FINANCIAL MANAGEMENT3
The financial resources for a philanthropy are
precious regardless of whether they are raised
through fundraising efforts or were received
when the organization was established. The
more capital the organization has the more it
can allocate to achieving its objectives.

11. 3
1. prudently managing the resources
or assets of the organization,and
2. efficiently managing operations.
Smart financial management
should include two key aspects:

12. 3Just like businesses, philanthropic organizations
need to have a system in place to manage, analyze
and monitor expenses and capital expenditures.
Regardless of size, organizations must be responsible
for generating and providing financial reports that
highlight their activities and create accountability.
Paramount is knowing efficiency- how much of each
dollar makes it to the beneficiaries.

13. CREATING SCALABLE SYSTEMS4
Philanthropic efforts at the local level are
valuable to the community but the
organization doesn’t necessarily need to limit
its efforts to a certain neighborhood or city.
Most charities and the people associated with
them aspire to maximize the ability to do good.

14. 4 This drive requires creating a
scalable system that can be
replicated or expanded to benefit
similar neighborhoods or groups.
A well thought-out plan can address these
issues so that the programs and protocols are
in place to leverage resources in order to
pursue new and broader beneficiaries.

15. 4
The organization and its programs can be
contemplated and built to scale if the
prospect presents itself. It is far easier to
expand when issues have been considered
in advance as opposed to scrambling to
respond to current opportunities.

16. DEVELOPING STRATEGIC PARTNERSHIPS5
No matter how large or small an organization
may be, there is tremendous value in forming
strategic partnerships with businesses or
other charities that are interested in
supporting the mission of the philanthropy.

17. 5 A strategic partnership in some cases
allows a philanthropy to focus its own
efforts and resources more effectively
by “outsourcing” roles such as
marketing, accounting or technology to
those more experienced or efficient.
The right, strategic partnership facilitates the
classic “one plus one equals three” scenario.

18. 5 A strategic partnership may involve two
or more charities partnering to jointly
promote and manage their individual
goals to accomplish more together than
they could separately.
There can be meaningful opportunities when a
corporation’s efforts are aligned by working
with or supporting a specific charitable cause.

19. Applying the activities and thinking of
enduring businesses can be pivotal to
building and managing a successful
long-term philanthropy.

20. Read full article at:
WWW.GREENSTEINFAMILYFOUNDATION.ORG