Reducing Reliance on Government Funding in the Nonprofit Sector

Reducing Reliance on Government Funding in the Nonprofit Sector by Bryan K. Kieler MS, Walsh College, 2011 MBA, Oakland University, 2007 BA, Oakland University, 2002 Consulting Capstone Study Submitted in Partial Fulfillment of the Requirements for the Degree of Doctor of Business Administration Walden University August 2019 Abstract Many leaders of nonprofit organizations are challenged by limited and declining financial resources from government grants, while being asked by funders and their constituent base to provide better quality services to a larger population. Nonprofit leaders are exploring strategies to reduce their reliance on government grants by diversifying and growing alternative funding sources. The purpose of this single case study was toMany leaders of nonprofit organizations are challenged by limited and declining financial resources from government grants, while being asked by funders and their constituent base to provide better quality services to a larger population. Nonprofit leaders are exploring strategies to reduce their reliance on government grants by diversifying and growing alternative funding sources. The purpose of this single case study was to explore, through the conceptual lens of the balanced scorecard theory, strategies used by 4 leaders of a nonprofit organization in southern California who have experience managing and growing alternative revenue sources by creating a social enterprise. Semistructured interviews were used to collect data and organizational documents were reviewed. The data were manually coded, and mind mapping was used to identify common themes. Thematic data analysis showed 5 themes: lack of a systematic approach to processes, lack of defined SMART processes, lack of integrating results into the organization’s key performance indicators (KPI), lack of defined measurable goals and objectives related to the KPIs in the business models of these organizations, and lack of defined sustainability plan. Nonprofit leaders may benefit from a systematic strategic approach to guide their organization. Nonprofit leaders need to understand how these systematic strategic approaches may impact their organization and how to integrate such opportunities into their organization. The implications for positive social change include the potential to fulfill the missions, strengthen the overall funding sources, and serve the local communities of nonprofit organizations by learning how to use the strategic planning processes. Reducing Reliance on Government Funding in the Nonprofit Sector by Bryan K. Kieler MS, Walsh College, 2011 MBA, Oakland University, 2007 BA, Oakland University, 2002 Consulting Capstone Study Submitted in Partial Fulfillment of the Requirements for the Degree of Doctor of Business Administration Walden University August 2019 Dedication I dedicate this work to both my family and to the nonprofit leaders who continuously work to better the lives of those who have been underserved. First, I would like to thank my parents and the rest of my family that has served as a rock during this challenging journey. My family has made many sacrifices and been supportive of my commitment to my academic journey. I would also like to personally thank my dad, who served to be my dad when he had no obligations. Thank you, dad, for your continued push and motivation to encourage me to challenge myself and become the best version of myself. Next, I want to dedicate this work to the vast number of great nonprofit leaders that continue to work to better the lives of so many. My hope was the findings in this study will help guide the decision of nonprofit leaders on their journey of continuous improvement and improving the overall sustainability of their organizations. The nonprofit service sector serves as the lifeline for so many underserved individuals. I applaud the work of both you and your staff in continuing to improve the lives of those you and your team serve. Acknowledgments I want to thank my friends, peer scholars, and the individuals who have gifted their time to help educate me on many challenges faced by leaders of nonprofit organizations that work endlessly to help improve the lives of the underserved. I am appreciative to have been selected into the Doctorate of Business Administration (DBA) Consulting Capstone program at Walden University under the guidance and mentorship of my committee chair Dr. Pete Anthony and Dr. Janice Garfield. Both Dr. Anthony and Dr. Garfield helped to foster my learning, guide my interactions, and helped me find my scholarly voice. Additionally, I would like to thank both Dr. Steve Roussas and Dr. Mohamad S. Hammoud for their guidance and feedback during my academic journey. Next, I want to thank the leadership team of my client organization and their team members who served as participants for this study. This study would not be possible without the dedication and commitment to sharing their respective experiences. I am appreciative that each participant took their time and energy to share their experiences of exploring strategies to reduce their reliance on government grants by growing alternative funding sources. I hope that this research provides leaders of nonprofit organizations further knowledge and strategies to use as they explore how to reduce the concentration of government grants by growing alternative funding sources to improve the overall financial sustainability of their respective organizations. I want to thank all of you for both inspiring and encouraging me as I help nonprofit leaders create strong learning cultures and improved sustainability of their organization. Simply, thank you!