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No nonprofit intentionally
sets out to lose the
plot of its mission. But
sometimes, after an
opportunity arises, a new
focus comes up, or a new
funding source is available,
many organizations are
surprised to find themselves
operating beyond their
original mission.
This problem, commonly referred to as“ mission creep,” is most always well-intentioned, but it can be draining for your resources, confusing for your stakeholders and devastating to the long-term viability of your nonprofit.
Fortunately, the two key ways to protect against mission creep go hand-in-hand:
Align your spending with
your mission
Align your funding with
your mission
ALIGNING YOUR SPENDING WITH YOUR MISSION
To ensure your nonprofit remains mission-driven and financially sound, begin tracking expenses by clearly defined programs. It’ s essential to align every dollar spent with
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at least one of your nonprofit’ s strategic goals to best allocate your resources.
Red flags to watch for include expenses that are hard to categorize or sudden cost spikes in unrelated programs. These can all be early financial indicators of mission creep.
It’ s also helpful to involve your finance team in program decision-making, so you can consistently consider financial sustainability along with mission impact. And of course, avoid expenses that don’ t directly support your core purpose.
This disciplined approach not only strengthens accountability and transparency, but it empowers you to make smarter, mission-aligned and financially sound decisions.
ALIGNING YOUR FUNDING WITH YOUR MISSION
Many nonprofit organizations find themselves off-mission because they have accepted grants for activities that don’ t fit neatly within their programs— so they create another. Ironically, in an attempt to secure more funding for the mission, the reality is that more resources are being diverted from it.
Turning down off-mission grants and revenue tied to off-mission activities is essential.
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While there may be short-term growth, it can lead to long-term problems for your programs that matter most.
Practically, track your revenue and funding by program, and develop a grant acceptance policy with clear criteria for evaluating funding sources so that you’ re confident that every grant will support your mission.
This doesn’ t mean you can’ t explore new opportunities for funding! Work with your board members to help vet new funding sources so that you can keep your organization effective and on-mission without inflating your operations unnecessarily.
Sustainable growth doesn’ t happen by chance; it requires intentional alignment among your mission, your funding and your spending. When you consistently direct both revenue and expenses toward welldefined and data-driven mission programs, you create a solid foundation for meaningful, long-term impact.
Strong financial practices aren’ t just about keeping your nonprofit in compliance with regulations. They’ re powerful tools for gaining strategic clarity, making informed decisions and ensuring every dollar contributes to the difference your organization exists to make.
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Jeri Groce is a Member in
the firm’ s Audit Division
and is a part of the firm’ s
Public Sector Industry
Group, specializing in
nonprofit organizations.
She joined the firm in
2004 and has more than
20 years of experience in
public accounting.
Contact JERI GROCE
334.260.2324
Jeri. Groce @ warrenaverett. com |
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58 CentrAL Inc! |