As nonprofit leaders, we’re paranoid that our funding will suddenly dissipate. We obsess about the grants that won’t fund and the donors that will move away.

The bread-and-butter funding that enables our work may dissipate due to any number of external factors. An election cycle, a bad day for the stock market, a poorly attended gala, and even an extended vacation by a wealthy donor can raise our blood pressure and force programmatic cutbacks.

So why do we think we’re different from anyone else?

Most families and businesses are one bad month away from crisis. Nonprofits are no exception. The difference is that nonprofits have learned the incorrect lesson that more money is always available so long as we do more fundraisers. Nonprofits have learned to diversify revenue largely as a response to mid-20th century funding patterns. Our paranoia about losing our funding has led us down a bad path toward over-diversification as a fiscal strategy.

Herein lies the problem. Diversification is not a strategy - it’s an investment. And investments are risks.

Revenue diversification is just not affordable for every organization. In theory, an organization can resist economic shocks by spreading out its income sources from a mixture of grants, donations, fees, corporate gifts, social enterprise, and special events.

Most nonprofits can’t manage all those different funding sources. When nonprofits…

Welcome to a new ASU Lodestar Center Blog series, “Get to Know the Lodestar Center!” We’d like to provide our readers with a peek into what we do each day to accomplish our mission by introducing members of the faculty and staff via short interviews and conversations. Meet the folks who are here to help you and your nonprofit succeed!

Elsbeth Pollack is a Program Manager for Public Allies Arizona (PAAZ), an AmeriCorps program that engages service-minded young individuals in 10 months of paid leadership training, apprenticeships, and service opportunities in collaboration with local nonprofit partner organizations.

PAAZ's mission is to create a just and equitable society and the diverse leadership to sustain it. Public Allies' citizen-centered, values-based approach to leadership has created pathways for young people to engage in their communities, and has helped communities and organizations tap the energy, passion, and perspectives of a new generation. The leadership development programming challenges and supports Allies to become leaders who connect across social boundaries, facilitate collaborative action, recognize and mobilize community assets, commit to continuous learning and self-development, and are accountable for creating impact.

Meet Elsbeth...

How would you describe yourself in 5-10 words?

A community-focused listener, connector, and advocate.

…

How will investing in nonprofit Human Resource infrastructure promote stronger leadership, quality staff retention, and sustainable community support?

It is no question that the nonprofit sector lacks the internal infrastructure that the government and for-profit sectors have built. Most of the time nonprofit agencies are looked down upon if their program ratio does not show extremely low overhead costs. Many donors view funds spent in the areas of administration as wasteful and taking away from the mission.

“It's time to stop obsessing about overhead and start focusing on progress. Change charity, and charity can change the world.” -Dan Pallotta

The truth is, by not accommodating internal growth in areas such as Human Resources, the agency will suffer more in the long term and be unable to serve the mission as effectively. I argue that small investments in strategic areas of nonprofit Human Resource Departments will assist agencies in being more supported by their communities, receiving higher funding, and attracting higher quality staff members.

The four recommendations to implement Human Resource Best Practices are as follows:

• Recommendation 1- Nonprofit HR and finance departments should accurately report on program and overhead costs annually on the 990 forms. This ensures an accurate picture of all organizational required costs…

Welcome to a new ASU Lodestar Center Blog series, “Get to Know the Lodestar Center!” We’d like to provide our readers with a peek into what we do each day to accomplish our mission by introducing members of the faculty and staff via short interviews and conversations. Meet the folks who are here to help you and your nonprofit succeed!

Lili Wang, Ph.D., is an Associate Professor of Nonprofit Leadership and Management in ASU's School of Community Resources and Development. She has taught undergraduate and graduate courses on such diverse subjects as Program Evaluation & Information Management, International NGOs, and Philanthropy. Her work on nonprofit studies has appeared in Nonprofit and Voluntary Sector Quarterly, Nonprofit Management & Leadership, Voluntas: International Journal of Voluntary and Nonprofit Organizations, and Public Management Review. We're thrilled to have such accomplished faculty on board to help our nonprofit management students reach their full potential!

Meet Dr. Wang...

How would you describe yourself in 5-10 words?

I am a faculty (associate professor) of ASU.

What is your main area of interest?

My main research interest is in individual and institutional philanthropy.

Any secondary interests?…

The weekend of September 17th-18th, the Nonprofit Leadership Alliance Student Association (NLASA) held its annual retreat at R-C Scout Ranch in in Payson, AZ. 32 students attended to discuss and identify goals for the upcoming year, build community, and eat s’mores around the bonfire!

The students, all ASU undergraduates interested in nonprofit sector careers, worked together to develop their vision for the Nonprofit Leadership Alliance at ASU and grow together as members of the local and national NLA community.

Amy Schwabenlender, Vice President of Community Impact for Valley of the Sun United Way, presented this year's theme: Innovate, and shared her experience in the nonprofit field. The group was also joined by an NLA (formerly American…