Article at a glance:
Organization matters to nonprofit organizations as much as it does to profit-making ones. But while nonprofit leaders zealously build programs and raise money, they often neglect the organizational structures and management processes that help institutions endure. The near-demise and dramatic turnaround of Teach For America (TFA) illustrates these perils—and the way out. Founded in 1990 by a 22-year-old Princeton University graduate, the organization recruits graduates of top colleges to spend two years teaching in low-income communities before pursuing their careers. At its inception, TFA got off to a quick start, raising millions of dollars and placing 500 “corps members” in classrooms in just one year. Yet five years later, it was on the verge of collapse. Despite all the idealism and passion, TFA’s leaders had ignored the nuts and bolts of good management.
The take-away
For nonprofit organizations, pursuing the mission and building organizational capacity go hand in hand. At Teach For America, this meant diversifying the financial base, ending “mission creep,” implementing sound management processes and a workable organizational design, and developing a positive, energetic culture. Its experience shows other nonprofits how to build a stable, thriving organization.