The Case for Operational Support

The initiation of a new program or project is always an exciting point in the lifecycle of an organization - specifically, the opportunity to grow or expand adds potential in reaching new recipients or areas of need. While these new programs are often positioned to donors as compelling areas for funding, they can also take away from an organization’s ability to continue fulfilling its mission. Major donors should be wary of funding new programs rather than providing general operating support, especially if they are intrigued  by a particular project or program. Without a strong foundation in place, the organization will not be able to achieve its goals.

When the Mayberg Foundation was recently approached for a major programmatic gift to Aish, we considered the various “exciting” programs and projects. We resolved, however, to build up the core infrastructure to support such a big effort first.

Below, Amanda Mizrahi, the program officer for Aish from the Mayberg Foundation, and Dan Hazony, Chief Information Officer of Aish, discuss why this framework for giving is so important:

What are the aspects of growing an organization that don’t get the time and attention they need?

Amanda Mizrahi: The Mayberg Foundation, like many other foundations, likes the idea of expanding or creating something new, especially at an organization we care about like Aish (where our Trustee Louis Mayberg has been a member of the board of trustees since 2010). However, expansion requires a strong operational base from which to work, including data management infrastructure, building a strong donor base at every level, and good fiscal management. Without these pieces, along with strong management, oversight, and the ability to communicate successes and failures well, an organization can’t reach beyond its mission.

Dan Hazony: When a supporter gives their dollars towards a non-profit’s cause, it is expected that those dollars affect the programs and services provided as quickly as possible. The desire to satisfy the donor often leads to organizational functions such as technology, integrated systems, professional development, and operations to be overlooked. All of these ultimately lead to a healthier organization, which leads to a more productive workforce and stronger outcomes. Especially with the case of technology and integrated systems, the barrier to entry for these solutions has drastically decreased over the past decade as cloud-based solutions have become the norm. No longer do organizations need large IT teams and hardware costs in order to be digitally advanced. The relatively low-cost to entry has lowered barriers in the for-profit world, but is yet to fully be embraced by the nonprofit sector.

How has the Mayberg Foundation’s and Aish’s work together utilized this shared understanding of the importance of core operational items?

 Amanda Mizrahi: The first thing I think of is how we give of our time. Helping people hold themselves accountable can be a strong show of support. For us, that includes both our trustees and staff. Louis Mayberg sits on the board, providing hands-on accountability at the highest level of the organization. Additionally, as their program officer, I meet with them regularly to check-in on how things are going and visit the items we know need focus and attention. Sometimes the way to get things done is to set a meeting by when it needs to be done and then hold everyone to it. Finally, when the Mayberg Foundation was asked for a growth-oriented gift, we focused on areas we knew other donors would ignore, like building their “middle-tier” donor base and expanding their data management infrastructure. By shining light on the places that need continuous support, we’re able to help them grow by contributing to their strong foundation.

Dan Hazony: The most important aspect is the fact that we have long-time partners rooting us on for things that an organization does not like to typically focus their attention on. The ability to work with Mr. Mayberg, the Mayberg Foundation’s Executive Director, Todd Sukol, Amanda, and the whole foundation team is refreshing, because they care about this infrastructure as much as we do. They understand that our long-term success as we work towards our goal of meaningfully reaching 3 million Jews by 2030 is an audacious task, and the only way that we are going to succeed is by building up our core operation in areas such as data-driven decision making.
 

What would you like others to know about this way of working together?

Amanda Mizrahi: Outward signs of an organization’s major growth, like a new building or starting a new program, are flashy and fun but only work if they continue to stand on a strong foundation, which has to grow with the organization. I would think that anyone who cares about the success of any nonprofit would want to understand the base’s stability before adding onto it. A new program that aligns with an organization and donors’ mission is exciting, but only if that success is sustainable because the organization’s baseline operations (fundraising, data, and communications) are all in good shape. 

Dan Hazony: Building out internal expertise in areas like data, communications, marketing, and other behind-the-scenes operational needs is not something that is very attractive to supporters. Those are the types of activities that one focuses on at work, and philanthropic support is often reserved for what one wishes they could do to help make the world a better place. Although counterintuitive, a supporter’s expertise and resources directed towards running a more sustainable organization will ultimately yield a much higher impact on making the world a better place. We always strive to partner with those types of supporters.