The document summarizes a discussion between organizational leaders about building capacity in the not-for-profit sector. Key points discussed included exploring more partnerships with other non-profits, focusing on revenue growth over just cost cutting, and standardizing metrics for measuring performance. Suggestions for action included clarifying board member roles and responsibilities, strengthening relationships with government and private funders, and promoting a better understanding of the not-for-profit sector.

1. Building capacity in not-for-profit sector: Insights and ideas for action
In a ‘kitchen-table’ conversation held on December 15, 2010, seven organizational were invited
leaders to discuss how, in times when funding becomes more challenging, NFPs can grow their
capabilities to meet the demands of their communities.
The seven main participants
• Stephen Faul, Executive Director, Second Harvest
• Robin Cardozo, Chief Executive Officer, Ontario Trillium Foundation
• Deborah Gardner, Executive Director, Volunteer Toronto
• Fred Winegust, Business Value Animator, Zerofootprint and Ron Dembo’s Zero Footprint
Foundation
• Jeff Melanson, Executive Director and Co-CEO of Canada's National Ballet School, and
Special Advisor to Toronto Mayor Rob Ford on Arts and Culture
• Michael Coteau, Executive Director, AlphaPlus
• Richard Knudson, Principal, Knudson Consulting Group; former president and CEO, Sleeman
Breweries
Initial observations to the topic
• Explore partnerships not just with the private sector, but also with other non-profits.
• Capacity-building and sustainability are challenging because there may be too many not-for-
profit organizations. Especially for well-established NFPs, there may be other organizations
who could do a better job, or at least be collaborative partners.
• During this recession, there has been much more responsibility and maturity among NFPs, who
are saying, “Yes, we need government help, but we need to do things differently ourselves.”
• Volunteering isn’t free.
• We need to find a way to defray the costs, to volunteers and foundations, of doing good by
doing right.
• We need to fix the perception that business is the enemy of NFPs.
• Foster growth and capability within NPF boards by getting young people with fresh ideas onto
the board.
• NFPs should reach out to business and create opportunities to engage.
Best practice suggestions
Foster collaboration: First understand the attributes or raison d’être of your organization and its
relevance to all stakeholders, then search for those attributes in other not-for-profits to see if they can
be brought together into a stronger whole. Try not to automatically assume that collaboration is some
kind of ‘efficiency play.’ Instead, view collaboration more aspirationally, looking at the institution’s
mission and vision and trying to figure out who else is doing similar things. Ego can be a big obstacle,
since some founders of organizations will be threatened if some other organization offers a better
vehicle to achieve the same values. “The NFP sector is very open to collaboration, but not to shotgun
weddings.”
Beware of the allure of ‘efficiency’: Combining two inefficient organizations doesn’t necessarily
generate one more efficient organization. The corporate model of efficiency doesn’t necessarily apply
December 2010 Roundtable moderation by: The Glasgow Group Report by: Glue 1

2. to NFPs, many of which are well-managed and fiscally responsible since they’ve dealt with flat-lined
budgets for years yet continued to deliver necessary services. Achieving a savings of three percent in
the budget isn’t really going to solve the problem. A better way to view the quest for efficiency may be
in terms of ‘productivity,’ since it speaks to the overlaps that occur when different organizations do the
same thing. It’s tough to capitalize on all the synergies in a merger, since synergies are, at best,
forecasts of the future and no one gets that 100 percent right. But you ought to at least think about how
you can perhaps improve things, or else nothing will change.
Focus on revenue growth, too: Most NFPs are service industries that incur a cost for delivering their
service. Rather than exclusively trying to pare away at administrative overhead, seek to grow the
revenues from the organization, but do not sacrifice the core business to save money. Examine if there
are opportunities to increase your funding from either corporate, foundation or individual donors. If
you’re an event-driven organization, look into other ways to connect with donors, such as direct-mail.
Standardize metrics: Government-funded organizations spend too much time filling out reports on
performance measures. The NFP sector already values accountability and transparency as one of its
core operational values. Funders may not always understand the most suitable metrics. Having
standardized metrics would mean less time spent reporting and more time doing the work. Finally, the
work of many NFPs can’t be measured by a bottom line of figures – how do you quantify changing the
direction of someone’s life?
Exploit a loss of funding: One organization that lost half its government funding used the opportunity
to take a step back and do some strategic planning and further define the organization.
Pursue new supporters when they’re young: High-school students must do 40 hours of volunteer work
to graduate. Reaching out to them can instill an appreciation for the value of giving back to the
community, while also creating opportunities for networking. Take advantage of the shift from what
used to be ‘hands and heart’ volunteering to more of ‘head’ volunteering using one’s professional
skills.
Make fundraising a board requirement: Many NFP boards dislike being told their job is to fundraise.
It’s not helpful to recruit board members who have lots of good ideas but are unable to raise money. Be
disciplined in determining exactly what skills you require on the board.
Ideas for action from group breakout sessions
The board’s role in building capacity
• Be clear on what the organization expects of board members and vice versa (e.g., fundraising, or
professional expertise in a particular business area).
• Ensure the Board is an advocate for change, including helping with government relations activities.
• Looking back from 2012: Roles are clearer and all board members are functioning well in those
roles. There may be turnover because of this process, but more money is being raised and there’s
more sectoral training among board members.
The executive director’s role in building capacity
• Recognize the vitally important relationship between the ED and the board chair.
• Know when to ‘say no’ to money. Ensure you remain aligned with your mission, and if an offer
looks too good to be true, maybe it is. Have an established process for making such decisions that
the board and staff both support.
December 2010 Roundtable moderation by: The Glasgow Group Report by: Glue 2

3. • Don’t forget about training for EDs!
The relationship with government funders in building capacity
• Recognize that governments are looking for cross-sector collaboration and a holistic approach.
Demonstrate how your NFP fits in the continuum of improving communities.
• Rather than approaching government and saying ‘please help us out,’ work with bureaucrats so that
they can help you solve your problem rather than expecting them to solve them for you.
• As a large organization, recognize your responsibility to mentor smaller organizations, which
builds an ecology for the whole sector.
The relationship with private funders in building capacity
• Strategy is essential; you don’t have time not to have a strong strategy. You must know who you
are, what you want, where you’re going, who your target audience is.
• Understand the return on investment you’re seeking; it’s not always money. Know the WIIFM
(What’s in it for me?) for the both the private funder you’re approaching and for the not-for-profit.
• Build your board wisely. Are these board members who simply want the position on their bio, or
are they people who will make things happen?
The one action you can take now to make a difference
• Help people who aren’t involved in NFP better understand what it’s all about; that’s an impediment
to everything we do.
• Provide time and facilities for organizations for think about their medium to long-term strategy.
• Ensure everyone understands that an hour of volunteering can make a difference and change a life.
• Help find a way to ensure that people who contribute money to charity should not have an tax
advantage over those who contribute time.
• Help ensure that board members have the right skills and experience for board governance.
• Encourage everyone to be more optimistic about what can and is happening. Attracting dollars is
much more effective when you have a smile on your face and a great story to tell.
• Every day, celebrate where we’re achieving success and making progress.
• Help train people who receive services from NFPs to serve on boards.
• Demonstrate to NFPs that business is not the enemy, it’s an opportunity. More and more businesses
are recognizing the importance of social responsibility and sustainability.
• Do fewer things, but better. Stay focused on the end goal.
The session’s observer participants
• Alexis Mantell, Communications Department, Ontario Trillium Foundation
• Tim Morawetz, Writer and Strategist, Glue Inc.
• Lori Willcox, 3 Guineas Business Solutions Inc.
• Anthony Alfred, Director of Communications, ABC Life Literacy Canada
• Dave Lukey, Program Manager, Allstream
• John Gill, Broadcast media consultant
• Marion Plunkett, Plunkett Communications Inc.
• Jo-Ann McArthur, Chief Strategist & Partner, fisheye corporation
• Bob Ramsay, President, Ramsay Inc.
• Sanjay Shahani, Program Manager, Ontario Trillium Foundation
December 2010 Roundtable moderation by: The Glasgow Group Report by: Glue 3

4. Roundtable moderation by Alan Kay of:
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Report by Tim Morawetz of:
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December 2010 Roundtable moderation by: The Glasgow Group Report by: Glue 4