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Articles From Lumsden McCormick

Why Longstanding Nonprofits Can’t Afford to Stand Still

Well-established nonprofits often enjoy a solid reputation, stable operations and a loyal base of supporters. But longevity brings its own set of challenges. With ever-shifting donor expectations, increased competition for talent and rapid technological change, even longstanding organizations must remain intentional about their growth and direction. Here are key issues mature nonprofits should watch out for to keep their organizations on target.

Where Stability Can Turn Into Risk

Established nonprofits are often skilled at maintaining healthy operating reserves and ensuring sufficient cash flow to support day-to-day activities. Many also benefit from planned giving programs and endowments that provide long-term financial support.

However, with that stability can come vulnerability to “mission creep.” This occurs when a nonprofit organization gradually takes on new initiatives — often to attract funding or remain relevant — without fully aligning them with its core purpose. For instance, expanding programming into new areas may dilute focus and leave foundational services under-resourced.

Another common issue is “founder’s syndrome.” As nonprofits grow, leadership needs evolve. Yet founders and other long-tenured leaders may struggle to relinquish control or adapt to changing organizational needs. Addressing this requires open dialogue, clear governance policies and a willingness to prioritize the organization’s future over individual roles.

Partnerships and collaborations with other organizations are also more common among mature nonprofits. While these alliances can amplify impact, they can also stretch staff and resources too thin if not carefully managed. Regular evaluation is essential to ensure each alliance continues to deliver value.

Financial Health and Leadership Capacity

Sustaining long-term effectiveness requires ongoing attention to financial health. One strategy is to expand and diversify your board. Established nonprofits are often able to attract experienced, well-connected individuals who can contribute more than just financial support — including strategic insight, industry expertise and valuable networks.

As staff focus on executing programs and managing operations, the board should take a more active role in setting strategic direction and policy. That said, mature boards can sometimes become resistant to change. Encouraging fresh perspectives and periodic board refreshment can help maintain adaptability and forward momentum.

Make Sure Stable Doesn’t Become Stale

Enduring success depends on a willingness to evolve. Regularly review your programs and initiatives to ensure they align with your mission and deliver measurable impact. Be prepared to sunset efforts that no longer serve your goals. And invest in opportunities to expand your capacity for the future. A forward-looking strategic plan — grounded in clarity and purpose — will help ensure your nonprofit continues to thrive in the years ahead.

Why Longstanding Nonprofits Can’t Afford to Stand Still

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Bob has considerable expertise in auditing and accounting of exempt organizations, specifically educational institutions, arts and entertainment organizations, and other nonprofit organizations, as well as employee benefit plans, auto dealerships, and other commercial entities, where he manages and oversees the all services to these organizations. Additionally, he has significant experience in grant compliance, audits in accordance with Government Auditing Standards and the Uniform Guidance, financial reporting, and taxation of exempt organizations. Bob is a member of the Firm’s Accounting and Auditing Technical Committee and is the chairperson of the Financial Accounting Standards Board Subcommittee. He was named partner in 2024.

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