Spinning Straw into Gold: the Tenuous Strategy, Funding, and Financial Performance Linkage

Abstract

This study investigates relationships between strategic process elements, sources of funding, and the growth and financial strategies pursued by 31 nonprofit social service organizations. Organizations were categorized on the basis of their achievement of a balanced budget and targeted funding goals. Based on these criteria, the most successful firms (a) maintained or developed a strong relatedness in program offerings; (b) were financially oriented, with a diverse funding base, and with fund-raising efforts targeting a specific source category for increase; (c) emphasized marketing; and (d) principally sought growth through increased client usage of current offerings. Less successful organizations appeared to lack key strategic management attributes regarding direction or execution.