Nonprofit Organization

Life Cycle of the Nonprofit Organization

In their great book, Leaders Who Make a Difference (1999), Stephen Dobbs and Burt Nanus outline the four typical stages of the nonprofit lifecycle.  Here is a summary...

Phase One: Start-Up

An individual or a small group has a passion around a perceived need.
A small group (perhaps a charismatic leader with enthusiastic supporters) founds a new organization.
The founders gather resources.
The founders entice others to serve on a board of directors.
The founding board of directors establishes the legal entity.
Operations commence.

Phase Two: Growth

Leaders expand circle of support.
The organization extends its sphere of influence and visibility.
The size and/or scope of programs increases.

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