NPL 273 Introduction to Nonprofit Leadership

Juran & Moody’s Indicators of Good Nonprofit Management (2003)

1. An administration that includes a mix of relatively new individuals with fresh perspective and veteran individuals with institutional knowledge and standing

2. A president who understands and can articulate not only the mission, but also the market niche and financial situation of the institution.

3. Appropriate balance between centralized versus decentralized control over administration and finances, with appropriate budget incentives for departments, schools or colleges that might compose the components of the institution.

4. An in-depth knowledge of the institution’s competitive environment for students, research grants, faculty and donors, including benchmarking a a management tool for understanding the organization’s relative position

5. Recognition of the challenges gracing the institution with a clear plan for addressing those challenges

6. Integrated strategic, capital and financial plans that are actively reviewed and based on realistic assumptions and measurable goals

7. Three to five year financial/budget plans that can be supported by audited financial statements

8. Conservative budgeting, including contingencies and coverage of depreciation expense or a similar metric of capital renewal

9. Prudent endowment management and spending policies, with an asset allocation mix that is appropriate for the financial strength and liquidity needs of the organization

10. A clear capital plan with an identified mix of funding sources (debt, gifts, reserves, cash flow) for new capital projects, consistent budgeting for renewal and replacement of facilities, and an articulated debt strategy with an understanding of the impact of debt structure on an institution’s financial strength

MSU