Nonprofit at a Crossroad

The Challenge:

An operating group within a major nonprofit had developed a large negative cash flow and a need for additional capital. There was little agreement on the causes or extent of the problem, or what strategic alternatives existed.  The organization sought advice on how their mission, management, operations and governance structure might need to change to achieve the desired financial and non-financial outcomes.

The Result:

  • We developed a clear view of the causes and magnitude of the problem, likely future results, and potential alternatives to the current strategy.
  • The leaders agreed to pursue a major change in direction.
  • The organization began discussions with a potential alliance partner.
  • New sources of funding were secured.
  • Because stakeholders were included in the process, acceptance of the new direction was high.

Setili & Associates expertly guided us in making a complex and important decision, which impacted diverse constituencies in our organization of 900 churches and over 350,000 members, and had been troubling us for years.  By crisply defining the alternatives, gathering stakeholder input, and assessing financial dimensions and risks, they were able to quickly develop consensus on the best course of action. We appreciated their exceptional creativity, judgment and insight. – Mike Watson, Bishop, North Georgia Conference of the United Methodist Church

How We Did It:

  • Assessed current performance on multiple metrics, including cost and revenue per user, financial returns, utilization, and impact.Interviewed representatives of each stakeholder group, including funding sources, the board, potential alliance partners, operating managers and users toUnderstand the appeal of the current mission, and how that mission could be altered to be more compelling and higher impact.
  • Identify and evaluate alternative strategies, which included changes in the target market, programming, pricing, and facilities.
  • Recognize and address likely hurdles and roadblocks.
  • Benchmarked with leading organizations in other geographies.
  • Projected required investment, risk, financial and mission-related outcomes under alternative scenarios.
  • Facilitated a series of meetings to gain agreement on a path forward.