Part 1: Nonprofit Organizational Lifecycle Assessment Grid
START-UP
(to begin)
ADAPTIVE CAPACITY
Needs Assessment  Organization has
ADOLESCENT
(to grow)
 Organization develops
informal, hands-on
moderately broad and deep
ways to identify
connections with community
constituent needs, such
leaders, funders, and
as by talking
constituents and learns about
extensively to a
needs through these
network of community
relationships.
leaders and potential
 Organization conducts
clients.
moderately comprehensive
needs assessment using
some market research
methods.
MATURE
(to sustain)
STAGNANT
(to renew)
DEFUNCT
(to dissolve)
 Organization establishes
 Organization re Organization assesses
very broad and deep
establishes connections
needs of remaining
connections with
among community
clients and refers them
community leaders, funders,
leaders, funders, and
to other programs and
and constituents and learns
constituents and
discusses the
about changing needs
reassesses needs among
possibility of handing
through these relationships.
constituents.
off any residual
programs to other
 Organization conducts
 Organization conducts
organizations.
comprehensive needs
comprehensive needs
assessments using market
assessments using market
research methods.
research methods.
Check box that best fits
your organization:
Comments on rationale for
choice and how much this
matters:
Organizational
Assessment
 Organizational leaders  Organization undertakes a
have periodic reflective
formal self-assessment
conversations about
process annually (perhaps
how the organization is
using an organizational selfperforming and
assessment instrument),
identifies basic ways to
identifies needs for
improve the
improving the management
management and
and governance of the
governance of the
organization, and
organization.
incorporates this thinking
into a strategic planning
process.
 On an ongoing basis,
 Organization candidly
 Organization assesses
organization assesses itself
assesses itself, recognizes
itself and recognizes
(perhaps using an outside
the need for
that it needs to shut
consultant to facilitate the
organizational renewal,
down.
process), identifies
identifies critical areas for  Organization identifies
comprehensive needs for
organizational
resources, assets, and
improving the management
improvement, and
programs that other
and governance of the
incorporates this thinking
nonprofits in the
organization, and incorporates
into a renewal process.
community might be
this thinking into a strategic
able to use or acquire.
planning process.
Check box that best fits
your organization:
Comments on rationale for
choice and how much this
matters:
© 2006 BoardSource / Navigating the Organizational Lifecycle / Appendix 2
Page 2
START-UP
(to begin)
ADAPTIVE CAPACITY
 Program volunteers
Program
and staff have periodic
Evaluation
reflective discussions
ADOLESCENT
(to grow)
 Program staff develop
simple systems for
gathering and using data
about what seems to be
about programmatic
working with the
outcomes.
programs and why, and
keep track of anecdotes
and stories that relate
to outcomes.
MATURE
(to sustain)
STAGNANT
(to renew)
DEFUNCT
(to dissolve)
 Organization develops
formal system for regularly
evaluating programs.
 Program model is
documented so that it
becomes more transferable.
 Organization conducts
program evaluation and
uses the results to inform
and revise programs as
part of renewal effort.
 Organization stops
investing in program
evaluation, documents
what it has learned, and
shares this information
with key constituents.
 Organization shares
evaluation tools and
processes with other
nonprofits in the
community.
 Staff and board develop
formal systems for
integrating and using data
from needs assessment,
organizational assessment,
program evaluation, and
other sources, and how it
relates to organizational
improvement.
 Staff and board revamp
 Organization reflects
and improve systems for
on what it has learned
integrating and using data
and shares this
from needs assessment,
information with key
organizational
constituents.
assessment, program
evaluation, and other
sources, and relating it to
the organizational
renewal effort.
Check box that best fits
your organization:
Comments on rationale for
choice and how much this
matters:
Knowledge
Management
 Staff and board have
periodic reflective
conversations about
what was learned
during informal needs
assessment,
organizational
assessment, program
evaluation, and other
sources, and how it
relates to possible
organizational
improvements.
 Organization develops
simple systems for
storing, organizing,
disseminating, and
using its knowledge.
 Staff and board develop
simple systems for
integrating and using data
from needs assessment,
organizational assessment,
program evaluation, and
other sources, and how it
relates to organizational
improvements.
 Organization develops
simple systems for storing,
organizing, disseminating,
and using its knowledge.
Check box that best fits
your organization:
Comments on rationale for
choice and how much this
matters:
© 2006 BoardSource / Navigating the Organizational Lifecycle / Appendix 2
Page 3
START-UP
(to begin)
ADAPTIVE CAPACITY
Strategic Planning  Organizational leaders
ADOLESCENT
(to grow)
MATURE
(to sustain)
STAGNANT
(to renew)
 Organization articulates
 Organization creates a
 Organization affirms or
create a strategic
a clear theory of change.
detailed updated theory of
revises a theory of
thinking piece with a
change.
change.
 Organization creates a
2-year horizon that
strategic plan with a 3-5 Organization creates a
 Organization creates a
explains how it will
year horizon that has clear
strategic plan with a 3-5turnaround plan that has
start up the
goals and annual objectives,
year horizon that has clear
clear goals and objectives
organization.
and develops annual
goals and annual objectives,
and creates an annual
 Organization has a
operating plans and program
and develops annual
operating plan based on it.
simple plan for
plans based on it.
operating plans and program  Organization has a plan
generating revenues
plans based on it.
 Organization has a plan for
for restoring the
from at least one major
generating revenues from at  Organization has a plan for
confidence of dedicated
funding source.
least two or three main
securing diverse and stable
funders and enlisting the
sources to enable the
revenue sources, possibly
support of new ones so
organization to grow.
including business plans for
that the organization
earned income and
stabilizes financially.
fundraising campaigns for
capital projects.
 Organization considers
developing or creates a plan
to develop a cash reserve or
endowment.
Check box that best fits
your organization:
Comments on rationale for
choice and how much this
matters:
© 2006 BoardSource / Navigating the Organizational Lifecycle / Appendix 2
Page 4
DEFUNCT
(to dissolve)
 Organization creates a
plan to dissolve itself
in a responsible and
orderly manner.
START-UP
(to begin)
ADAPTIVE CAPACITY
 Organization forms
Collaborations
relationships with other
and Partnerships
groups and begins
ADOLESCENT
(to grow)
 Organization develops
connections with other
organizations and forges
informally cooperating
more formal collaborations
with some of them,
with some of them, such as
such as by sharing
by coordinating program
information and
delivery and sharing
making cross-referrals.
resources.
MATURE
(to sustain)
STAGNANT
(to renew)
DEFUNCT
(to dissolve)
 Organization develops
strong connections with
other organizations and
considers developing or
does develop such formal
collaborations as joint
ventures or shared backoffice space and functions.
 Organization maintains
relationships with other
organizations, develops
new relationships, and
considers collaborations
and partnerships as a part
of its renewal effort.
 Organization ends any
collaborations with
other organizations and
considers handing off
some programs to other
groups and referring
clients to them.
 Organization meets
with other nonprofit
leaders and funders to
discuss ways to address
client needs in an
ongoing manner.
Check box that best fits
your organization:
Comments on rationale for
choice and how much this
matters:
© 2006 BoardSource / Navigating the Organizational Lifecycle / Appendix 2
Page 5
START-UP
(to begin)
LEADERSHIP CAPACITY
 Organization
Board
establishes a small
Development
homogenous board.
ADOLESCENT
(to grow)
 Organization expands the
size of the board.
 Board’s role is formalized
 Board develops a clear
and there are job
purpose and vision that
descriptions for board
is understood by itself,
members.
staff, and volunteers.
 Board articulates a clear
 Board plays a hands-on
mission, vision, and set of
role in overseeing and
values and they are well
managing the
understood by board, staff,
organization.
and volunteers.
 Board conducts an
 Board clarifies its role in
informal performance
relation to chief executive,
review of the chief
increases its planning
executive.
function, and develops a
deliberate decision-making
process.
 Board conducts a formal
annual evaluation of the
chief executive and talks
about a succession plan.
 Board discusses how it is
performing and how it
needs to improve.
MATURE
(to sustain)
 Organization has a formal
nominating process and
adds people to the board
who represent the
community that the
organization serves and
have skills that the
organization requires, such
as program, financial, and
legal expertise.
 Organization affirms or
revises its mission, vision,
and values, and they are
well understood by board,
staff, and volunteers.
 Board clarifies its role in
relation to the chief
executive, reduces its
operational role, and
increases its policy and
fundraising function.
 Board has committees, work
groups, or task forces and,
possibly, advisory councils.
 Board conducts a formal
annual evaluation of the
chief executive and creates
a succession plan.
 Board formally assesses
itself and creates a board
development plan.
STAGNANT
(to renew)
 Organization retires some  Board ensures that
veteran board members
the organization’s
who are not engaged and
dissolution process
adds new board members
is responsible and
who support the renewal
orderly.
effort.
 Board dissolves itself.
 Organization affirms or
revises its mission,
vision, and values, and
they are well understood
by board, staff, and
volunteers.
 The board plays a handson role during the
renewal effort and
ensures the financial
viability of the
organization.
 The board reviews the
performance of the chief
executive and, if
necessary, terminates the
person and hires a new
one to lead the renewal
effort.
Check box that best fits
your organization:
Comments on rationale for
choice and how much this
matters:
© 2006 BoardSource / Navigating the Organizational Lifecycle / Appendix 2
Page 6
DEFUNCT
(to dissolve)
START-UP
(to begin)
LEADERSHIP CAPACITY
 Volunteer or staff
Executive
person founds
Leadership
organization or board
Development
hires staff leader.
 Staff leader is
entrepreneurial and
adept at establishing
and growing the
organization.
ADOLESCENT
(to grow)
MATURE
(to sustain)
 Chief executive’s role is
 The chief executive and
distinct in relation to the
board have distinct roles
board.
and they hold each other
accountable.
 Chief executive disconnects
personal and organizational  Chief executive is adept at
needs as the organization
managing a large staff and
ages and expands.
complex finances and
sustaining the organization.
 Chief executive has the
ability to manage the
 Chief executive forms a
growth of the organization.
strong senior management
team, including possibly a
chief operating officer.
STAGNANT
(to renew)
DEFUNCT
(to dissolve)
 Chief executive is adept
 Chief executive
at managing a turnaround
completes his or her
process.
duties and leaves the
organization.
Check box that best fits
your organization:
Comments on rationale for
choice and how much this
matters:
Leadership
Transitions
 Board hires chief
executive.
 Board appoints board
chair.
 Board ensures that chief
executive has the ability to
manage the growth of the
organization, and, if
necessary, hires a new chief
executive who is more able
to do so.
 Succession plans exist for
staff and board leadership.
 Board ensures that chief
 Board determines if chief  Chief executive leaves
executive has the ability to
executive is able to renew
job and board dissolves
sustain the organization and,
the organization and, if
itself in an orderly
if necessary, hires a new
necessary, hires a new
manner.
chief executive who is more
chief executive who is
able to do so.
more able to do so.
 Succession plans exist for
executive and staff
leadership.
Check box that best fits
your organization:
Comments on rationale for
choice and how much this
matters:
© 2006 BoardSource / Navigating the Organizational Lifecycle / Appendix 2
Page 7
START-UP
(to begin)
MANAGEMENT CAPACITY
Human-Resource  Organization has a
small number of
Development and
volunteers or staff and
Management
there is little or no




ADOLESCENT
(to grow)
MATURE
(to sustain)
STAGNANT
(to renew)
 Organizational leaders
 Organization hires
 Organizational leaders
develop recruitment and
additional staff, including
revise staff job
hiring plan, write job
program specialists and
descriptions and
descriptions for volunteers
professional managers, and
restructure staff to reflect
organizational
and staff, recruit and hire
creates a more centralized
plan to renew the
hierarchy.
them, and establish a simple
and hierarchical
organization.
organizational hierarchy.
organizational structure that
Organizational leaders
has a clear division of labor
establish roles for staff  Staff orientation and
and reporting relationships.
and volunteers and
training becomes more
recruit and hire people.
formal and annual staff
 Organization has a formal
evaluations are established.
staff orientation, training,
Volunteers and staff
and evaluation process.
are informally oriented,  Staff decision-making
trained, and evaluated.
process becomes more
 Well-developed personnel
formal.
policies exist.
Staff decision-making
process is informal.
 Simple personnel policies
are established.
There are few or no
formal personnel
policies.
DEFUNCT
(to dissolve)
 Organizational leaders
terminate staff
respectfully.
Check box that best fits
your organization:
Comments on rationale for
choice and how much this
matters:
Internal
Communications
 Organization
communicates
informally among
staff, such as by
having sporadic
conversations and
meetings.
 Organization develops more  Organization has formal
 Organizational leaders
formal methods for
methods for communicating
freely share information
communicating, such as by
among staff, such as by
with all staff about the
holding regular staff
having a management
organizational renewal
meetings and documenting
reporting system, staff
efforts.
and disseminating what is
meetings at the
discussed at them.
departmental and
organizational levels, and a
regular staff newsletter.
Check box that best fits
your organization:
Comments on rationale for
choice and how much this
matters:
© 2006 BoardSource / Navigating the Organizational Lifecycle / Appendix 2
Page 8
 Organizational leaders
clearly communicate
with staff about
dissolution plans.
START-UP
(to begin)
MANAGEMENT CAPACITY
 Organizational leaders
Financial
create a basic annual
Management
budget and meet
ADOLESCENT
(to grow)
MATURE
(to sustain)
 Organizational leaders
create a multiyear budget
and meet regularly to
regularly to discuss
discuss how to allocate
how to allocate
financial resources, manage
financial resources.
cash flow, and live within
its means.
 Organization
 Organization develops an
establishes a basic
accounting system,
accrual accounting system
which may be cashand creates quarterly
based, and creates
financial reports (which
annual financial
show budget vs. actual
statements that are
figures) and an annual
audited internally and
financial statement that is
approved by the board.
audited by an outside
Certified Public Accountant
 Organization has
and approved by the board.
adequate human
resources, such as a
 Organization has adequate
part-time bookkeeper,
human resources, such as a
to handle the financial
full-time financial manager,
management function.
to handle the financial
management function.
STAGNANT
(to renew)
DEFUNCT
(to dissolve)
 Organizational leaders
 Organizational leaders
 Organizational leaders
create a multiyear budget
assess the financial
distribute any
and discuss how to allocate
situation frequently,
remaining assets and
financial resources and live
strengthen financial
fulfill any outstanding
within its means.
controls, and ensure that
financial obligations.
the organization is living
 Organization maintains a
within its means.
well-developed accrual
 Organization continues to
accounting system, creates
quarterly financial reports
maintain a wellthat include projections, and
developed accrual
produces an annual financial
accounting system and
statement that is audited by
creates quarterly financial
an outside Certified Public
reports and annual
Accountant and approved
audited financial
the board.
statements.
 Organization creates
 Organization has
monthly cash flow
adequate human
projections and manages its
resources to handle the
cash flow well.
financial management
function during the
 If necessary, organization
renewal effort and may
has ability to manage a
need to hire a new staff
capital budget, cash reserve,
person to handle the
and/or an endowment.
financial management
 Organization has adequate
function and/or replace
human resources, such as a
the outside auditor.
chief financial officer or
comptroller, to handle the
financial management
function.
Check box that best fits
your organization:
Comments on rationale for
choice and how much this
matters:
© 2006 BoardSource / Navigating the Organizational Lifecycle / Appendix 2
Page 9
START-UP
(to begin)
TECHNICAL CAPACITY
 Organization
Service Delivery
establishes basic skills
Skills
to effectively provide
simple programs that
meet the needs that it
identifies.
ADOLESCENT
(to grow)
MATURE
(to sustain)
STAGNANT
(to renew)
DEFUNCT
(to dissolve)
 Organization has skills to
expand responsive and
credible programs that
respond to changing needs
and maintain their quality.
 Organization has skills to
refine comprehensive
programs based on changing
needs.
 Organization has skills to
establish and implement
simple systems for program
evaluation.
 Organization has skills to
 Organization has skills to  Organization has skills
evaluate programs regularly,
evaluate programs to
to document outcomes
systematically, and
inform decisions about
and lessons learned,
formally, and document the
program revisions.
and communicate this
program model.
information to
stakeholders.
 Organization has skills  Organization has skills
to revise programs to be
to responsibly end
responsive to needs as
programs and refer
part of organizational
clients elsewhere.
renewal effort.
Check box that best fits
your organization:
Comments on rationale for
choice and how much this
matters:
Evaluation Skills
 Organization has
fundamental skills to
have reflective
conversations about
program outcomes
and informally
evaluate programs.
Check box that best fits
your organization:
Comments on rationale for
choice and how much this
matters:
Outreach and
Advocacy Skills
 Organization builds
basic skills to develop
strong connections
with constituents and
effectively perform
outreach and advocacy.
 Organization builds strong
 Organization maintains and  Organization has skills to  Organization has skills
skills to develop and
further improves skills to
effectively maintain and
to responsibly end
maintain solid connections
develop strong connections
develop strong
outreach and advocacy
with constituents and
with constituents and
connections with
efforts.
effectively perform outreach
effectively perform outreach
constituents, and revise
and advocacy.
and advocacy.
outreach and advocacy
efforts as part of
organizational renewal
effort.
Check box that best fits
your organization:
Comments on rationale for
choice and how much this
matters:
© 2006 BoardSource / Navigating the Organizational Lifecycle / Appendix 2
Page 10
START-UP
(to begin)
TECHNICAL CAPACITY
 Organization has
Marketing and
adequate ability to
Communication
market its programs
Skills
and services and
communicate about its
activities in simple
ways, such as through
word-of-mouth and
written program
descriptions.
ADOLESCENT
(to grow)
MATURE
(to sustain)
STAGNANT
(to renew)
DEFUNCT
(to dissolve)
 Organization has ability to
market its programs and
services and communicate
about its activities in
moderately advanced ways,
such as by creating simple
brochures.
 Organization has ability to
market its programs and
services and communicate
about its activities in
advanced ways, such as
through a Web site,
newsletter, and annual
report.
 Organization has ability
to market its revised
programs and services
and communicate
honestly and clearly with
constituents about the
renewal effort.
 Organization has ability
to communicate with
stakeholders about its
accomplishments and
dissolution.
Check box that best fits
your organization:
Comments on rationale for
choice and how much this
matters:
Legal Skills
 Organization has
legal skills necessary
for the organization,
such as for creating
bylaws and articles of
incorporation and
obtaining tax-exempt
status.
 Organization has legal skills  Organization has advanced  Organization has legal
 Organization has
necessary for the
legal skills necessary for the
skills necessary for the
access to basic legal
organization, such as for
organization, such as for
organization, such as for
skills necessary for the
employment, leases, and
joint ventures, trademark
renegotiating debt with
organization, such as
insurance.
and licensing issues, and
creditors, restructuring, or
for terminating leases
construction contracts.
terminating contracts.
and bankruptcy.
Check box that best fits
your organization:
Comments on rationale for
choice and how much this
matters:
© 2006 BoardSource / Navigating the Organizational Lifecycle / Appendix 2
Page 11
START-UP
(to begin)
TECHNICAL CAPACITY
Fundraising Skills  Organization has skills
to secure contributed
revenue from at least
one main source.
ADOLESCENT
(to grow)
MATURE
(to sustain)
STAGNANT
(to renew)
DEFUNCT
(to dissolve)
 Organization has skills to
secure contributed revenues
from several main sources.
 Organization has skills to
secure contributed revenues
from diverse sources and, if
necessary, effectively
conduct a capital campaign
for a capital project, cash
reserve, or endowment.
 Organization has skills to
reassure current funders
and maintain their
support, and enlist new
ones to support the
renewal effort.
 Organization has skills
to responsibly end
relationships with
funders and donors.
 Organization has skills
to broker relationships
between other
nonprofits working
with the same clients
and their funders in
order to meet the
ongoing needs of their
clients.
 Organization has skills to
generate a moderate to high
amount of earned income.
 Organization has ability
 Organization has
to maintain or increase
ability to responsibly
any earned income during
end relationships with
renewal effort.
customers who
generated earned
income.
Check box that best fits
your organization:
Comments on rationale for
choice and how much this
matters:
Earned-Income
Generation Skills
 Organization has skills  Organization has skills to
to begin planning
generate a limited amount
possible earned-income
of earned income.
activities.
Check box that best fits
your organization:
Comments on rationale for
choice and how much this
matters:
© 2006 BoardSource / Navigating the Organizational Lifecycle / Appendix 2
Page 12
START-UP
(to begin)
TECHNICAL CAPACITY
Accounting Skills  Organization has
accounting and
financial management
skills needed to set up
payroll, create and
manage an annual
budget, establish and
implement a simple
accounting system, and
create annual financial
statements.
ADOLESCENT
(to grow)
MATURE
(to sustain)
STAGNANT
(to renew)
DEFUNCT
(to dissolve)
 Organization has accounting  Organization has accounting  Organization has
 Organization has
and financial management
and financial management
accounting and financial
accounting and
skills to create and manage
skills to create and manage
management skills to
financial management
a multiyear budget, manage
a multiyear budget, manage
strengthen financial
skills to distribute any
cash flow, implement a
cash flow, implement an
controls, manage a
remaining assets and
moderately advanced
advanced accrual
multiyear budget, manage
fulfill any outstanding
accrual accounting system,
accounting system, create
cash flow, implement an
financial obligations.
and create quarterly
quarterly financial reports
advanced accrual
financial reports and annual
and annual audited financial
accounting system, create
audited financial statements.
statements, and, if
quarterly financial reports
necessary, manage a capital
and annual audited
budget, cash reserve, and/or
financial statements, and
endowment.
anything else required to
support the organizational
renewal effort.
Check box that best fits
your organization:
Comments on rationale for
choice and how much this
matters:
Facilities
Management
Skills
 Organization has
fundamental skills to
manage, operate, and
maintain its facilities,
such as borrowing,
subleasing, leasing,
and maintaining office
and program space.
 Organization has skills to
manage, operate, and
maintain its facilities, such
as by leasing and
maintaining additional
space for expanding
programs.
 Organization has advanced  Organization has skills to  Organization has basic
skills to manage, operate,
manage, operate, and
skills to manage its
and maintain its facility,
maintain its facilities,
facilities, such as by
such as by purchasing,
such as by consolidating
terminating leases and
building, upgrading, leasing,
space, selling property, or
selling property.
and managing additional
subletting.
program and office space.
Check box that best fits
your organization:
Comments on rationale for
choice and how much this
matters:
© 2006 BoardSource / Navigating the Organizational Lifecycle / Appendix 2
Page 13
START-UP
(to begin)
TECHNICAL CAPACITY
Technology Skills  Organization has basic
skills to use and
manage technology,
such as telephone, fax,
and computer hardware
and software.
ADOLESCENT
(to grow)
MATURE
(to sustain)
STAGNANT
(to renew)
DEFUNCT
(to dissolve)
 Organization has
moderately advanced skills
to use and manage
technology, such as
telephone, fax, a networked
computer system, and basic
applications.
 Organization has advanced
skills to use and manage
technology, including
telephone, fax, a networked
computer system, and a wide
array of sophisticated
applications.
 Organization has skills to
use and manage
technology to support the
organization’s renewal
efforts.
 Organization has skills
to shut down and end
any technological
systems that the
organization has used.
Check box that best fits
your organization:
Comments on rationale for
choice and how much this
matters:
© 2006 BoardSource / Navigating the Organizational Lifecycle / Appendix 2
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