Nonprofit Business Case Study: Jumpstart

Overview

By some standards, Jumpstart could be deemed a successful non-profit. This is more so the case given that it has gradually morphed into a national organization and has managed to transition from a founder-led organization into a professionally managed entity. The latter was an uphill task for the organization. However, despite remaining true to its mission, expanding nationally, and embracing a more professional approach in the management of its affairs, the organization has encountered a number of challenges that could get in the way of future success. Some of the said challenges will be highlighted in this write-up and proposals to address them floated.

Main Issue

From the onset, it would be prudent to note that one of the main issues that Jumpstart grapples with at the moment is access to capital to support its growth. At present, the organization is largely dependent upon five funding streams, i.e. the government, foundations, corporations, individuals, and other sources. Data availed in the case study indicates that Jumpstart is overly dependent on government and foundation funding. Indeed, 30% of its funding comes from the government. Foundations account for 28% of the organizations funding. Overreliance on government and foundation funding has several downsides. As a matter of fact, as has been pointed out in the case study, reliance on the government as a funding source has significant tradeoffs, and managing the process takes creativity and persistence. This is more so the case when it comes to the constraints placed upon such funding. This, as has been the case with Jumpstart, could affect certain aspects of operations. It is also important to note that government funding could fluctuate from one year to the other. This is particularly the case given that the availability of such funding could be affected by a wide range of factors including, but not limited to the political environment. There are also numerous claims on the very same funding from multiple organizations and entities. All these factors conspire to indicate that this is not an ideal source of funding to heavily rely upon. Similarly, foundation funding could also have significant and somewhat complex constraints. It therefore follows that Jumpstart should reign in its overdependence on these two sources of funding.

Yet another issue that Jumpstart grapples with is a significantly high employee turnover rate. It should be noted that a high employee turnover rate could jeopardize organizational operations and negatively impact the efficiency by which it delivers on its mandate. This is more so the case given that as Tyson (2012) points out, with a high employee turnover rate, an organization loses more talented, skilled, and experienced employees that it can replace. The high rate of employee turnover could in this case be attributed to a number of factors. Some of the factors that could be gleaned from the present case study are inclusive of lack of growth opportunities, poorly designed career tracks, as well...…individual private donors. This is more so the case given that unlike government grants, this source of funding is associated with less restrictions and happens to be more flexible. Thus, this would in effect make it possible for the organization to secure capital to support growth which is presently the single-biggest challenge that the organization faces. Jumpstart could also seek to grow its corporate funding.

I would also advise that the organization sets up a dedicated fundraising department or unit within the organization. In essence, such a unit would be charged with the formulation of a fundraising strategy for Jumpstart. It could be headed by a fundraising director and be staffed with employees skilled in donor development as well as management, and grant writing. The said department would also take charge of fundraising research and volunteer recruitment (if need arises).

In seeking to address the high employee turnover issue, Jumpstart could deploy a number of tested and tried strategies. One such strategy is employee engagement. The said engagement could take the form of gathering the insights of employees on multiple issues of relevance to their performance. Further, the organization should ensure that employees are both recognized for their efforts and encouraged/supported. There could also be need for the organization to sponsor employees for various training opportunities and seminars of relevance to their roles and functions. In effect, when employees are able to perform better in their roles, they are likely to be more motivated and…