Sustainability?

Sustainability has become a common word and may have you ask, what is sustainability? Sustainability means meeting your current needs without compromising the ability to meet your needs in the future. We often hear about environmental sustainability. While that is important for the earth and your eco-friendly audience, this blog will examine financial sustainability. Financial sustainability specifically refers to the ability to maintain financial capacity over time, meeting needs now and in the future. Regardless of an organization's for-profit or nonprofit status, establishing a strong capacity for financial sustainability is central to an organization’s long-term viability.

Why is sustainability essential?

Maybe you can pay for something with the cash on hand, but if you lack a revenue stream or savings that can replace the expended cash, you’re going to find your organization sinking quickly. Luckily, sustainable practices can be implemented from the first day of operation and gain momentum on their own. For example, building and incentivizing a robust membership program into your museum, even if visitor rates are high on their own, can provide more stability. Additionally, 2020 showed everyone why sustainability is essential. Cultural attractions are often pillars of the community and were especially susceptible to damage by the pandemic. Long-term planning can help organizations weather unexpected challenges and continue serving their communities.

Crafting long-term financial stability

Pursuing long-term financial stability from the start is key for cultural attractions. It seems like a common-sense practice, but between the pressures of start-up costs and the excitement of immediate growth, many organizations fail to integrate long-term financial planning into their plan from the start. Starting a year or two late is still better than not starting at all, but the earlier the better. By building plans for long-term financial stability into your strategic plan, your organization will be saved from many headaches in the years to come.

Expressing long-term financial stability

One step toward creating a sustainable financial structure is to demonstrate that your organization values and focuses on financial sustainability. Efforts to create financial sustainability possess the ability to compound upon themselves. Donors want to know that their gifts are being used to their maximal potential and responsibly. If the organization is spending its donations in a way that will put them out of business in a year, donors will steer clear. They want to give to organizations that express their longevity and responsibility. By demonstrating that your organization focuses on long-term stability and efficient use of resources, donors will be reassured that their money is reaching its full potential.

You can accomplish this by explaining your plan for sustainability in reports to donors. Additionally, when seeking gifts, make it clear to donors that your organization works to create a stable financial foundation in order to achieve your mission in the immediate and long-term future. Don’t be afraid to show off how your organization is responsibly using its money and plans to use future donations.

In that light, here are some great programs that create and express sustainability.

Examples of programs supporting sustainability

1. Youth programs

Kids are the future. It’s a common saying, and it holds true when it comes to education. Cultural attractions have a distinct role as educators, so it is essential that they support young people through their mission. By educating the young people who will be your future leaders and visitor, you are investing in their future as well as the future of your institution. Additionally, these are programs that donors are always prepared to support.

2. Member preview

Often found in the context of museums, memberships can provide large amounts of consistent funding. In order to maximize the number of memberships and acquire them as early as possible, offer a member preview of the cultural attraction. For the super fans, getting to see behind the scenes at a museum or historical site at the cost of a membership is incredibly desirable. This is a sure-fire way to boost your membership right from the start and build sustainability into the structure of your organization

3. Alignment

Fully aligning all aspects of your organization is essential. Telling the same story across the community, brand, collection, staff, and anyone else involved in your organization is a great way to express stability and planning. This story can even build in sustainability by demonstrating how your organization prioritizes the proper use of resources, planning, and strategic fundraising to continue to tell your story in the future.

Let’s Recap

Sustainability may not be the first topic on the mind of museums that are finally approaching their opening date after a decade or more of hard work and planning. There are many immediate expenses and incredible excitement for the moment at hand, but looking to the long term is essential to celebrating many more years of being open. A focus on sustainability will ensure your hard work does not go to waste. Always work to lay a financial foundation for your organization’s future. Use the tips in this blog, and don’t wait to get started.

Does your museum value financial sustainability? We do. NMBL Strategies offers our clients strategic plans that not only help at the moment but also sustain funding in the long term. Learn how we can help your organization secure your future.

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