Economic Challenges Persist for Nonprofits: New Report Recommends Action for Organizations
It is unanimous that the recession was felt deeply and widely, and unfortunately we continue to feel those effects. There is no crystal ball that can tell us when our economy will return to a place where each of us feels secure again.
However, I am very proud to say that a new report will help you understand our economic downturn and its effects on the nonprofit sector. The Public Finance Crisis: Can Philanthropy Shoulder the Burden? not only explains in tremendous detail just how “deeply and widely” the effects were felt, but it provides solutions for you and your nonprofit. Released by our firm, Changing Our World, Inc., the report is the work of Susan Raymond, Ph.D., Sally Schiff Park and Jason Simons – and addresses the following questions; What to do now?, How to be ready next time?, and How to predict the next time?
A critical take away from this report is the lack of awareness of how much of our economic landscape is comprised of nonprofits. Nonprofits are responsible for 8% of our national employment, and in some states it is as high as 10%.
Having this responsibility puts pressure on nonprofits to remain successful, and ensure that they sustain their employment numbers for the benefit of our economy. It is vital that individuals understand how interrelated these two entities are – the economy and the nonprofit sector.
With this in mind, it is crucial for nonprofits to ensure that, at their foundation, the four pillars of fundraising – case, leadership, prospects and a diversified plan – are strongly in place. Leaders of these organizations must have a clear vision and development plan that is monitored, adjusted as necessary, and ultimately ensures the organization remains on track. The report consists of specific research and data that reiterate a message we at Changing Our World have been saying for years – now, more than ever, nonprofits need to diversify their revenue streams.
Something we have all learned as a result of this recession is that we cannot depend on one funding source to sustain our future. Public funding is changing dramatically, and nonprofits have no choice but to look to other sources for consistent funding. Personally, I view the findings and recommendations outlined in this report as an opportunity for nonprofits to distinguish themselves within this sector and become stronger, more efficient organizations. Thus, this report should not only serve to highlight the volatility of our economy and sector, but should also be seen as a tool for positioning your organization at the forefront of today’s unpredictable tomorrow.