September 6, 2001 | Read Time: 2 minutes
The Five Life Stages of Nonprofit Organizations: Where You Are, Where You’re Going, and What to Expect When You Get There
by Judith Sharken Simon with J. Terence Donovan
Like other types of businesses, nonprofit organizations can more effectively “plan for the future, put problems in context, and manage transitions” by tracking and planning stages in their growth, write Judith Sharken Simon, an organizational-development consultant at the Wilder Center for Communities, and J. Terence Donovan, a management consultant.
The authors describe five stages in a nonprofit organization’s growth. In the first stage, “imagine and inspire,” the group has not yet been formalized and ideas and enthusiasm abound. In stage two, “found and frame,” the organization receives its official nonprofit status, and excited staff members worry about whether or not they will be able to pull off their dream projects. In the third stage, “ground and grow,” the organization considers what must be done to build the strength, viability, and accountability of the group. Stage four, “produce and sustain,” is the “mature” phase, characterized by producing work that supports the organization’s mission. Finally, in stage five, “review and renew,” the organization reinvents itself in some way, re-examining how it fits into a changing economy or world.
Some organizations also face the “decline and dissolution” phase—when the “organization is forced or chooses to shut its doors.” But the authors say that phase is not inevitable and can take place during any of the previous stages.
The book is designed for executive directors, managers, board members, consultants, and grant makers, to help them either better manage their organizations or better communicate with the charities with which they work.
After explaining the stages, the authors offer a case study of how one organization progressed through them. They also provide tips on how to manage each stage, including key activities in seven areas that may be affected: governance, leadership, financing, administration, employment, products and services, and marketing.
Other chapters contain a test to help groups determine their “life stage” and pinpoint strengths and weaknesses; case studies that illustrate particular problems in each stage and ways to solve them; and a guide for consultants who work with nonprofit groups. The book also has resource lists and notes on how the authors developed and tested the five-stage assessment tool.
Publisher: Amherst H. Wilder Foundation, 919 Lafond Avenue, St. Paul, Minn. 55104-2108; (651) 659-6024 or (800) 274-6024; fax (651) 642-2061; books@wilder.org; http://www.wilder.org; 103 pages; $28; I.S.B.N. 0-940069-22-9.
