Mission drift is common in non-profit organizations, especially those that have been operating for a long time. Your local community has most likely evolved, the needs surrounding your mission may have changed, and newer nonprofits may be also be addressing similar issues to those your organization targets. In such cases, it makes sense to refocus your efforts and allocate your funds where they will be most effective. But avoid proceeding too far without formalizing your changes. You must notify your stakeholders and the IRS of a significant mission shift.
Take a Long, Hard Look
Sometimes companies have no choice but to change their mission. For example, perhaps you championed a cause that was ultimately resolved. Perhaps the population you helped no longer exists in your neighborhood.
Sometimes, however, the decision isn’t so clear. Your board should consider your past and future goals. Members should inquire whether the services you now provide remain necessary, and if your mission has shifted, whether it is now focusing on the most pressing needs. Your board may decide to expand, contract, or change your nonprofit’s mission.
Draft a Fresh Mission Statement
501(c)(3) organizations can typically update their mission statements without causing significant disruption. You need to make sure your new mission is tax-exempt.
Your board should create a revised mission statement using a process similar to those employed at inception. The statement should be descriptive, but not so specific that it hinders your nonprofit’s growth. Once the board adopts the new mission statement, your bylaws and articles of incorporation should be amended in accordance with your current bylaws. Unless otherwise noted, bylaws can be modified by a two-thirds vote.
Notify Supporters and the IRS
You can notify the IRS immediately of any changes to your organization’s mission or bylaws, but there is no legal obligation to do so. You can alternatively wait until you submit your annual Form 990. The IRS will then contact you if it has any questions.
On the other hand, don’t wait to tell donors and grant makers. In principle, organizations must use donations for the purposes intended by the donors. If you accepted a substantial donation for a program that was discontinued after you changed your mission, contact the donor right away. After you explain the change, this supporter may enable you to use the money for another cause that aligns with your new mission. If not, you will have to return the funds.
Use your website, newsletter, and social media accounts to communicate with stakeholders and the community. Formal press releases are typically distributed by large nonprofit organizations with broad regional or national appeals. Smaller nonprofits may want to approach local media outlets. Finally, examine and, if necessary, edit all public communications to ensure they reflect your mission statement.
Avoid Outdated Attitudes
You’re not finished yet! Monitor your programs and activities to ensure they are in line with your new mission. To that end, you may want to arrange retraining for staff members to ensure that everyone understands the current focus and is carrying out your mission with a fresh perspective. If you have any questions regarding how changing your mission might impact your tax-exempt status, please contact us.
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