Innovations in the Nonprofit Sector

Economic impact of just 6 npos (Boston Globe)

This article in the Boston Globe reports that six cultural institutions in Framingham, a suburb of Boston, "generate nearly double their budgets in local spending annually, creating scores of jobs along the way." Combined, these arts and history centers, a public garden and library—spend about of $6.3 million annually create some 87 full-time equivalent jobs. And here is the most important element to the region's economic development - these organizations generate nearly double their own budgets annually—or $11.4 million—in local spending.

New survey of nonprofits

Most nonprofits responded to the troubled economy and heightened scrutiny in 2009 by cutting costs and taking steps to be more accountable, a new survey says.

Among 465 nonprofits:

• 87 percent reduced expenses
• 57 percent reduced personnel
• 53 percent delayed capital projects
• 56 percent revised their strategic plans to reflect the economic downturn
• 58 percent rebalanced their investment portfolios
• 39 percent changing their investment policies

Do events work? (Philanthropy Journal)

When nonprofits accept that net proceeds from fundraising events should not be a primary funding source, they are freed up to truly analyze the value of special events. Read this quick analysis here.

Nonprofit Fundraising Trends 2010 (Retriever Development Counsel)

Reports on a survey of nonprofits on fundraising challenges, strategies, and results in 2009, by organization size and compared with 2008. Explores factors behind better fundraising results and lower staff morale as well as 2010 goals. Encourages more spending on development - perhaps not surprising since from a development consulting group! But of interst - the findings that 45% of the nonprofits they surveyed had higher fundraising results, 37% lower result in 2009 than 2008.

New coaching guide (Grantmakers for Effective Orgs)

Coaching and Philanthropy: An Action Guide for Nonprofits

This new resource explains the benefits of coaching for nonprofit leaders and their organizations and lays out questions to consider from the nonprofits' perspective, including on the costs and duration of coaching and confidentiality issues. Includes quotes from coachees.

Merging Weisely (Stanford Social Innovation Review)

A new article in Stanford Social Innovation Review by consultant David LaPiana  reads in part:

"Mergers are risky business. They sometimes fail, although not so frequently as in the corporate world. They usually cost more than anticipated. They sometimes create more problems than they solve. And the problems that they allegedly solve—too many nonprofits, too small in size—may not be problems after all.

Instead of reflexively pulling out the biggest gun in the partnership arsenal, nonprofits should consider a variety of ways of working together. After facilitating some 200 nonprofit restructurings (including mergers, administrative consolidations, and other partnerships), my colleagues and I have developed a few rules of thumb for when nonprofits should merge, when they should remain fully independent, and when they should undertake unions that lie between these two poles. We've also identified how funders can help—or hurt—the formation of nonprofit partnerships."

Read the fiull piece here

Using location based services to raise money

Interesting blog from Mashable

"What started as a highly addictive pastime for early adopters to alert their friends of their whereabouts and compete for virtual mayorship of their corner coffee shop, is steadily evolving into a global vehicle for individuals and businesses to garner social capital. With tech evangelists and small businesses exploring the potential power of Foursquare and other location enabled services, it was only a matter of time before change makers in the non-profit and social enterprise ecosystem "checked-in" and began finding innovative methods to rally support for their causes."

Check out the list here.

Executive Compensation, Charities, and the Curse of Proximity (HBS)

Compelling article from Harvard Business Review describing backlash for high paid nonprofit executives.

"What all this reveals is a curse of proximity. A market approach is allowed within the nonprofit sector when the emotional sympathy for the needy is absent; high salaries can be paid to entertain high society without a question. But the moment the thought of a starving child or a struggling mother is introduced, all the rules change. The needy's own images work against them."

Outsouring back office ( Management Assistance Group)

This easy to access handbook looks at the benefits and risks of sharing or outsourcing back office services in Small Nonprofits. It looks specifically at administrative, finance, and other office support needs; reasons and conditions for outsourcing as well as barriers; methods for evaluating options; and guiding principles and gives examples of 3 models.

Microfinancing in the U.S.? (Time)

is it time to bring a tool for developing nations to ours? Read the article in Time Magazine here.

Social Innovation Podcast (SSIR)

Listen to a podcast with Sarah Brown is the CEO of the National Campaign to Prevent Teen and Unplanned Pregnancy. She then talks about the nuts and bolts of setting up and sustaining a nonprofit venture. Her advice covers areas such as choosing an issue to focus on, establishing a mission and goals, obtaining and sustaining funding, measuring performance, and managing controversy and other challenges. Click here to listen

New facts about the the size of the sector (IRS)

• The number of approved tax-exempt organizations in 2008 was 1.9 million, - not inncluing all religious organizations.
• This is a 50 percent increase since 1995. The IRS approved over 200,000 applications in the past 3 years -- or 182 organizations every day, Saturday, Sunday and federal holidays included.
• The recession has not slowed this growth
• Charities required to file returns with the Internal Revenue Service reported more than $2.2 trillion dollars in assets in 2005. This is equivalent to the combined assets of the retail trade sector, the transportation sector, and the non-exempt portion of the health care sector.
• On top of the $2.2 trillion, private foundations reported holding an additional $546 billion in assets.

WHOA.

Lessons from ACORN

ACORN's management review by the former Massachusetts Attorney General and former CEO of Common Cause, now Senior Counsel with the Proskauer Rose law firm found what might be expected - lax management and governance structures.

From the report: "[ACORN] Founder Wade Rathke and certain former leaders failed to understand the need for basic principles of organizational governance, accountability and compliance, in the drive to grow and succeed. ACORN's longstanding management weaknesses, including a lack of training, a lack of procedures, and a lack of on-site supervision."

Sounds like a classic case of chasing the money rather than focusing on core competencies. Like a lot of people, I received great community organizing training and experience through ACORN and PIRG. These grass roots organizations are at the front lines of eradicating poverty and giving people a voice and a fair shot at justice. Might be time for ACORN to get back to basics.

Nonprofits - $1.1 trillion in annual spending!

Nonprofits represent $1.1 trillion in annual economic spending, the third-largest portion of the economy after the wholesale and the retail trades. Nonprofits of all types represent about 10 percent of national employment, a portion that rises to 17.6 percent in the District of Columbia, 16.5 percent in Vermont, and even 15.6 percent in New York. Indeed, through 2006, nonprofit employment grew faster than overall employment in 46 of the 50 states. Read the report here

Managing volunteers for better impact

A task force of more than 20 nonprofit, government, and business leaders issued a report this week proposing ideas for better managing volunteers so they can have more impact. Read full text.

 

Sign Up for 'Enlightened Entprepreneurs'

On Tuesday, December 15, 2009, the Community Foundation of Utah is hosting "Enlightened Entrepreneurs," an event designed to facilitate communication between for-profit and nonprofit leaders. Our goal is to give nonprofits the opportunity to benefit from the expertise of the state's brightest entrepreneurial minds, and to increase entrepreneurs' exposure to and involvement with civically minded organizations.

Innovative thinking is the key to the success of both for and nonprofit business models, and increasing the flow of ideas between these two groups fosters greater creativity, cooperation, and success.

Engage Your Giving Mind

Join with us to build a new synergy between the public and private sectors, one that will that will make Utah an even better place to live, raise our families and grow our businesses.

• Sponsor the conference: Our sponsors demonstrate a commitment to Utah's entrepreneurs and to the organizations that make our state a great place to live and work.

• Be an entrepreneur mentor: Share your expertise with nonprofits. Experts are needed to share one-one one ‘speed mentoring' in marketing, branding, IT, evaluation, project management, leadership/management, accounting, business development, finance, bootstrapping, technology, building networks, etc. SIGN UP HERE
• Participate as a nonprofit: Bring your most perplexing challenges to the event! SIGN UP HERE

New Report Details Use of Web-based Technologies

A new report from the Hatcher Group outlines ways for nonprofits to use web-based technologies to meet their goals. The report shows "how some nonprofits are using those technologies to advance social change, and to provide resources and advice to aid organizations in such efforts". Click here to read an article detailing the report.

Scholars' Views on Nonprofit Independence

While some argue that the nonprofit sector has been losing some of its independence, Ray Madoff a professor at the Boston College School of Law has a different view. In a recent speech at the Hudson Institute Madoff asserts the "myth" that the assets of nonprofits are "public monies" and that therefore the sector should have less governmental regulation, not more. The Aspen Institute's Mark Rosenman also believes nonprofits have been losing their independence and are wrongly blamed for governmental failings. His piece "Independence: A Matter of Definition" suggests corrections. Read the speech here and the report here.

Principles to Improve Social Media

In a recent article five key principles towards improving social media are outlined. Nonprofits have been leading the way in this area for years, and these five guidelines published in the Harvard Business Review help others follow in their footsteps.

Study Shows Importance of Quality Websites

According to a new study, visitors who are satisfied with their online experience at a nonprofit website are more likely to donate money, volunteer, and use that website as a primary resource. Unfortunately too few nonprofits are taking advantage of this trend, and more work is needed to update nonprofit websites to the level of other industries.