Non-profits as we know them are dying a slow, painful death
March 25th, 2008 · Filed Under: change · fund raising · fundraising · non-profits · planning · professional development
When you think about non-profit organizations, the United Way, Red Cross and Salvation Army usually come to mind. These are the giants who you have come to accept will get their hands in your pockets, for a good cause, at some point during the year. They work in your community. You may volunteer with them now and then. You may even serve as a board member.
There are other non-profits in your community as well, some who are not doing so well during this economic crunch. When the general public has to tighten its belt, the first thing to cut out is giving. In my own community, this means less cash and corporate donations to our local food bank, which results in smaller monthly packages being distributed to an increasing number of families in crisis. On a larger scale just as an example, this means less money invested in affordable housing when so many are losing their homes and need apartments to rent. It also means staff working in the non-profit sector are being let go, working longer hours and stretching each dollar as far as it can go.
Now there are some non-profits that are continuing business as usual. For the past 30 years, non-profits have been beholden to the government process of grants and low-interest loans to provide a diverse range of programs. This system of entitlement, of expecting to continue to receive the same dollars to do the same work, year after year, is very shortly coming to an end. Corporate donors and foundations have been more active to institute “measurement outcomes,” requirements attached to funding that provide a clear “return on investment” picture that’s transparent for both the funder and the non-profit. Creating benchmarks that demonstrate successful use of dollars invested that make a positive difference in the lives of those served is just good business. And therein lies the key, good business.
The non-profit business model has been suffering in recent years, with old systems slow to change and young, educated leaders hard to entice into the field. When you add to that the financial challenges facing all business sectors today, you begin to see a shift in practice, a new light emerging in the non-profit community.
The 21st Century non-profit is proactive, ready, willing and able to make change, be fluid, listen to their market, the people they serve, the funders who support their work and the community that surrounds them. Only the strong will survive in these tough times, which may be painful to watch but ultimately a cleansing process for the non-profit industry. Making non-profits accept the fact that they are businesses, with a bottom line that either supports their work or drains them of their ability to serve.
Now you may think these are harsh words. As someone who has worked in the field for more than 15 years, I’m speaking from personal experience with good programs, great people and deplorable systems. The non-profit sector has all the tools to succeed, yet wants to stay in the comfort zone of what and who it knows, and continue to say “we’ve always done it this way.” Good Luck! The rug is about to be pulled, and the choice is to fly into the future and the unknown, or land on your ass!
So, what to do? Over the next several weeks you’ll find some solid advice posted here specifically to help non-profits begin to make some positive changes. If you are interested in learning more, leave your name and email. If you know of anyone who needs to read this, please pass it on. This is not a hopeless situation, but it requires education and action to correct.
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