Slaying Sacred Cows: When Nonprofits Need to Cut Losses
One of the most challenging decisions a nonprofit can make is closing a beloved program or activity. While it’s tempting to cling to the familiar, sometimes the most strategic move is to let go. This post explores why sacrificing sacred cows is essential for nonprofits to thrive and achieve their missions.
Why Sacrificing Sacred Cows Is Necessary
Steps to Closing Beloved Program
Two sides exist: the logical and the emotional.
A. The Logical Process of Deciding to Close a Beloved Nonprofit Program
1. Establish Criteria
Here are some key areas to consider when developing evaluation criteria. (By the way, these can be used to evaluate all your programs. See the book Nonprofit Sustainability for more.)
- Alignment with vision, mission, and strategy
- Effectiveness and outcomes
- Financial sustainability
- Innovation and relevance
- Stakeholder satisfaction
- Any ethical or legal challenges
- Staffing considerations
2. Bi-Annual Review
Review your activities, including programs, events, fundraisers, etc., each other year against your criteria. You might, for example, think “firecracker” and make it your organization’s annual July 4th Freedom Ritual during the summer when you are less busy. Assess their performance and identify areas for improvement or closure. Important: If you have several beloved programs that you expect to close in the following years, establishing a regular review of your activities will plant the seed that the program must perform.
3. (Optional) Seek External Input
Create an advisory group of creative, outside-the-box thinkers to provide fresh perspectives and challenge the status quo. Ask them for advice on mediocre performers. How might each so-so activity be tweaked, changed, and or closed?
4. (Optional, but Recommended) Post-Mortem Analysis
Conduct a post-mortem analysis to understand the reasons for the program’s decline and identify lessons learned. This can help prevent similar issues in the future.
B. The Emotional Process of Deciding to Close a Beloved Nonprofit Program
1. Conduct Open and Honest Conversations
Engage in open and honest conversations with donors, staff, or board members about the reasons for considering closing the program. Explain how the decision aligns with the organization’s mission and strategic goals. For staff, share what transition steps are anticipated.
2. Seek Ways to Save a Remnant.
Consider if program elements can be salvaged or integrated into other initiatives. This might involve:
- Merging with another program
- Scaling down
- Creating a 2.0
- Partnering with another organization
3. Generate a closure experience that honors the effort.
Express gratitude for the donors’ and others’ support and acknowledge their contributions to the program. This can help maintain a positive relationship, even if the program is closed. Take the Marie Kondo. Honor your beloved program before discarding it.
Benefits of Closing Out Programs and Activities
By creating a nonprofit that evaluates its programs, you:
You have more time, energy, and resources to focus on your top performers.
- Gain time to pilot solutions for weak cows before it’s too late. (Click here to discover the dangers of downward spirals.)
- Inspire accountability and innovation. People who love a sacred cow find ways to tweak it.
- Support bottom-line growth, including community, money, and mission.
Is Your Nonprofit Struggling to Determine the Future of a Specific Program?
Let’s work together to conduct a comprehensive program assessment. We’ll evaluate its alignment with your mission, assess its impact, and explore alternative options. Need help developing a strategic plan first? We can do that too! Contact Karen today to discuss your needs
