Does Your Nonprofit Suffer
From "Mission Creep"?

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Often, a nonprofit's mission is more clear on the day of its founding than it ever will be again. When first established, the founders knew why they had raised funds and sweated out the 501(c)(3) process. At that time, they could describe the work the organization was intended to do and the difference it would make.

Over time, however, new programs are added. Perhaps because of the lure of new efforts and new needs, earlier programs may wither. The original, stated mission may become de-emphasized, while new, unstated missions take over. When assets and resources are allocated to efforts not related to the organization's mission – as well-intentioned as these efforts may be – the original mission of the nonprofit may be obscured.

For example, a nonprofit with a mission to feed the hungry, may, over time, find itself spending staff time, facility space and other resources on career counseling and education. The shift may have started with the realization that people who have jobs – or the skills to get those jobs – can feed themselves. Now the organization finds most of its revenue being spent on teachers, student computers and classroom space rather than on food, food preparation and food transport.

This is a case of "mission creep," and it is eclipsing the nonprofit's original reason for existence. The degree of mission creep can be quantified by comparing direct program revenues, expenses and assets. Indirect program costs can be assessed by prorating all indirect costs by the percentage of revenue generated by each program. In agencies where revenue is not an appropriate comparison (many programs produce little or no revenue), client hours or some other common denominator may be substituted.

Mission creep isn't necessarily all bad. It's possible that market forces have shifted or that the original mission has been accomplished. In the above example, perhaps another organization is feeding the hungry, or economic conditions are such that those who needed food when the agency was founded are now employed.

Even if the mission creep is to be celebrated, it is important for a nonprofit to recognize it and to take action. Grantors – even those funding subordinate programs – often review an applicant's stated objective and make grant decisions accordingly. The original mission statement may be part of an IRS audit to determine if the agency is meeting the purpose under which the 501(c)(3) status was awarded. And, donors may become uncomfortable if an agency says its mission is one thing but is doing a half dozen other things instead.

There are several ways to correct mission creep. The easy way is to change the mission statement to reflect the actual efforts of the agency. This, however, may have implications with long-term funders, contract service partners and the community the agency serves.

Another way to mitigate mission creep is to spin off the non-mission programs to another organization or form a new agency to perform these services. Certainly, this will have an impact on the size and scope of the original agency, but it ensures that the agency remains true to its original mission.

Decisions about the core services of any nonprofit organization should be done objectively and professionally. Consult your professional business advisers for help in assessing mission creep in your organization.

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Tandem Partners is an organizational consulting firm specializing in people strategies that drive business results. We help nonprofits manage change, develop leaders and teams, improve productivity and maximize performance through people. For more information on strategic planning for nonprofits please contact Margaret Wilson at 443-589-1152 or via email: margaret@tandem-partners.com .

Copyright 2008 Tandem Partners

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