Lean for non-profits makes perfect sense

During one of my introductory non-profit management classes, it occurred to me that Lean methods hold amazing potential for organizations that exist for social good above profitability. When these organizations depend on a budget of grants, fundraisers, and donations, it is of the utmost importance that their resources are used efficiently and effectively so the mission is carried out to serve the broadest possible population. The potential for Lean benefit is limitless.

Let's be honest. No one wants their charity donation to be used for anything other than forwarding the cause, right? When we make a $20 donation to the animal shelter, we certainly expect that almost all of that will go directly to helping animals. If we were told that half of that money would go toward overhead (administrative costs and general operating expenses), we would certainly be less likely to donate. Never mind that without these basic needs, the animal shelter could not exist. Somehow, we feel that that money needs to come from somewhere else. What if we knew that another $6 of that $20 would be spent on soliciting more donations? That would leave only $4 to pay for care and supplies for the shelter pets. Wait just a minute! This is unacceptable, right?

But....think about this: do we ever really get upset about, or even think of the overhead and operating expenses of a for-profit business? When we see a full page ad in the Sunday newspaper promoting an upcoming sale at a department store, do we scrutinize that store's ethics for trying to lure us in to buy their products or do we look at all the "good deals" and run right out to buy new things that make the store profitable? Right. So, why the double standard and how can we change this?

I propose that if people knew that their donations were being stretched as far as possible to generate the greatest good, they would certainly be more inclined to donate. Lean offers the tools to do this and if properly implemented and publicized, the act of continuous improvement within the org creates a PR opportunity like no other! Take a look at this video that highlights a food charity that increased their community impact with the help of the Toyota Production System.

Not only does this look like a great cause to donate to, but they also had the ingenuity to create this video and post it online, offering the incentive of a donated meal for each viewing. Creative solutions like this can revive a staff that is suffering from burnout, kick-start a fundraising campaign, and provide a greater sense of efficacy for volunteers. When you are working with a shoestring budget, its so important to make the most of it.