This increasing focus on nonprofit outcomes is leading to the four other trends.
2. Decreasing emphasis on nonprofit 'overhead'
The bane of the nonprofit sector is the meaningless and destructive public perception that you can separate nonprofit programs from the administrative costs (staff, technology, systems, materials, fundraising) to make those programs happen. This separation is so destructive because it forces nonprofits into a misalignment of money, mission and competence, which sets them up for failure. A nonprofit cannot succeed if it doesn’t integrate its operations and moneymaking efforts into its mission. But the good news is more and more people realize you can’t just invest in programs without the staff, infrastructure and fundraising to make those programs happen.
3. More advocacy for the sector as a whole
The nonprofit sector has long been a fractured grouping of organizations of various sizes, business models and issue areas. It has been almost impossible to organize the disparate sector to fight for better government regulations, improved public perception and more funding. But that tide is starting to turn. With the advent of groups like CForward and a growing discussion about how best to advocate for the sector as a whole, I believe that we will start to see the sector organize, mobilize and build the confidence necessary to claim its rightful place.
- Companies:
- Charity Navigator
Nell Edgington is president of Social Velocity.