More Mission Than Money
Creating a realistic budget that generates revenue and provides mission-related programming can be challenging for nonprofit organizations. As organizational leaders, you rely on special events or grants to fill the gap each year while staff carry the ongoing stress of balancing the budget. But what role does the board of directors play in this equation?
In the spring and fall of 2024, Foellinger Foundation engaged Tamela Spicer, Chief Changemaker and Principal at The Intentional Catalyst, to lead nonprofit executives and board members through an interactive workshop about the roles and responsibilities for ensuring adequate and sustainable revenue that supports mission-related programming.
Justin Clupper, Executive Director of CTN, and Pastor Thomas McArthur, President & CEO of The Rescue Mission, attended the spring event and shared some thoughts on their experience below!
What were some key takeaways from the More Mission than Money workshop you attended last Spring that resonated with you?
Justin Clupper, CTN
At CTN, we pride ourselves on a diversified revenue stream. Philanthropy, government contracts, insurance payments, charter services, and rider fees all support our work. But sometimes, our eyes are bigger than our stomachs, and the workshop reminded us of the importance of asking, “What is the probability of hitting that revenue line?” Sometimes, the dreamers in us want to believe philanthropy will always come through. But what if it doesn’t? Revenue probability ratios are a tool we’ll implement with every budget process going forward—and our board will determine how certain we should be for the funds to be in the budget.
Another takeaway was in the budget process itself. Instead of starting with service goals, we start with revenue. Then, our goals are set based on the expenses that fit within the revenue.
The third takeaway was the way we discussed the budget with the board. It isn’t just about scrutinizing the line items. It’s about asking, “Are we satisfied with this budget and its implications for our service outputs?”
Pastor Thomas McArthur, The Rescue Mission
Several key takeaways from this workshop impacted me. First was the ability to be together with other nonprofit organizations in my community in a learning environment to grow in our effective leadership.
Second, the practical insights for budgeting, revenue generation aligned to our mission and ministry, and team exercises to foster creative application were spot on. Additionally, the insights of board development and health have provided valuable insights that we are utilizing immediately.
How have you applied them in your organization?
Justin Clupper, CTN
Foellinger Foundation gave me a bit of a primer on the concept when the workshop was first announced in February 2024—which also happens to be when we start budget planning. So, we started using some of the abovementioned takeaways in the budget process early on. We knew revenue would be tight this year, as we had a couple of long-time family foundations sunset. Vehicle-related expenses have skyrocketed in recent years and are not usually at an anticipated/budgeted pace. With that in mind, my leadership team and our finance committee wanted to operate with a conservative revenue probability. Unfortunately, that meant eliminating seven open positions. We reduced our original goals for impact, but now those goals are aligned with revenue realities.
During our May board meeting, the board was asked, “Are we satisfied with this budget and its implications for our service outputs?” They agreed any new, unbudgeted revenue could be used to expand service beyond our budgeted goals.
Pastor Thomas McArthur, The Rescue Mission
One key tool we utilized immediately was the revenue generation budgeting projection worksheet. This timely and effective tool helped us better forecast our grant and foundation opportunities and identify relationship opportunities for future growth.
A second key application was the educational development of our board of trustees. In our missional work every day, we can forget the educational and training gap between our staff and board. This workshop provided simple, relevant, and timely tools to provide additional board education that focuses on our missional drive and leadership effectiveness.
Why do you think training opportunities like this are important?
Justin Clupper, CTN
We are a staff and board of lifelong learners. We recognize the value that comes from new training and new perspectives. Our world is changing, and we need to change with it. I don’t always have the capacity to seek out new training; when they’re brought to us, my team jumps at the chance. We don’t often implement everything we learn—we view the training through the lens of our mission and scope of service. And we add what will bring value to our riders, our staff, and/or our donors.
Pastor Thomas McArthur, The Rescue Mission
We are blessed in our community with organizations like Foellinger Foundation that invest in our nonprofit organization, boards, and leaders. We constantly need to be equipped, sharpened, and reminded of these important areas of leadership. I walked away with practical ideas linked with missional axioms to impact my team, our mission, and our community.
About Tamela Spicer
Having worked in the philanthropic sector for over 30 years, Tamela Spicer, M.A. seeks to guide sector leaders and organizations on a path to discover how they can work within their own ecosystems to catalyze change grounded in justice and belonging. Tamela serves as the principal of The Intentional Catalyst, LLC, a boutique philanthropic consulting practice specializing in strategic doing and thinking, storytelling, and change management. After several years in the business sector, she pursued her passion for community impact and justice as a regional development director for The Salvation Army, regional director for the Arthritis Foundation, and as senior program manager at the Dorothy A. Johnson Center for Philanthropy at Grand Valley State University where she also taught in the master’s program.