CEO

This is the fourth and final post looking at how we can take the resource allocation checklist of  The Outsiders by William Thorndike and translate it to the nonprofit world. The first three posts can be seen by clicking on the links at the bottom of the page.

8. Retain cash in the business only if you can generate returns above your goals.

A couple decades ago a large relief and development nonprofit invited leaders from smaller organizations to visit for a half day consultation. I was lucky enough to be invited. At one point the CEO said, “We’re fortunate …

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This is the third post looking at how we can take the resource allocation checklist of  The Outsiders by William Thorndike and translate it to the nonprofit world. Below are the next three on the list. Click here and here to see the other posts.

5. Focus on after-tax returns.

Obviously nonprofits do not have to pay taxes. So what can nonprofits learn from this advice?

Some corporations allocate resources toward investments that make a high profit but leaves them exposed to high taxes, which reduces their overall return on investment. So the wise corporations might take a slightly smaller …

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This is the second post looking at how we can take the resource allocation checklist of  The Outsiders by William Thorndike and translate it to the nonprofit world. Below are the next two on the list. Click here to see the first post.

3. Calculate what the return would be on all other opportunities and rank them according to the inherent risk.

Once you have defined what “profit” is for your nonprofit, then figured out a way to measure it, and finally decided what a minimal return on investment of your time, treasure and talent should be (all of which …

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As I wrote last week, one of the things I appreciated about The Outsiders by William Thorndike was the checklist of ten things every CEO should follow when deciding where to allocate resources. But several people who read my blog — many in some kind of ministry work — said the corporate language doesn’t easily transfer to the nonprofit world. So what can a nonprofit leader learn from the list?

Below are the the first two on the list with my own perspective on how nonprofit leaders must handle resource allocation.

1. The allocation process should be CEO led.

Resource …

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