4. Savvier donors
Because nonprofits are getting more savvy, donors are as well. In addition to an increasing demand for proof of outcomes, donors are slowly starting to understand the difference between two kinds of money in the sector: revenue and capital. They are starting to recognize that nonprofits cannot exist on revenue alone. Nonprofits must have infusions of capital every now and then to strengthen and grow their staff, technology, systems and fundraising. Call me crazy, but I truly believe that donors are becoming more open to making capacity capital investments in the nonprofits they love. That’s because donors are realizing that in such a stark economic environment nonprofits that don’t have adequate infrastructure simply will not survive, let alone be able to adequately address the social problems they were organized to solve.
- Companies:
- Charity Navigator
Nell Edgington is president of Social Velocity.