The Business of Nonprofits

This is a lengthy article, but well worth the time to read.   Please check it out over at the Philanthropy News Digest.

The Nonprofit Starvation Cycle

by Don Howard, Ann Goggins Gregory A vicious cycle is leaving nonprofits so hungry for decent infrastructure that they can barely function as organizations — let alone serve their beneficiaries. The cycle starts with funders’ unrealistic expectations about how much running a nonprofit costs, and results in nonprofits misrepresenting their costs while skimping on vital systems — acts that feed funders’ skewed beliefs. To break the nonprofit starvation cycle, funders must take the lead.

The Big Picture: A National Teleconference with Two Nonprofit Sector Leaders

via Philanthropy Front and Center – Cleveland

National Teleconference
Turning Crisis Into Opportunity:
A Conversation With Two Nonprofit Sector Leaders
Wednesday, July 22, 2009
2:00 – 3:00 pm Eastern Time

“Please join us as Bradford K. Smith, president of the Foundation Center, and Robert G. Ottenhoff, president and chief executive officer of GuideStar, jointly address one of the most critical issues in the nonprofit sector today: the impact of the economic crisis on nonprofit organizations and on the foundations that support their work.”

Image is Everything

The May 2009 edition of Successful Fundraising has short little gem of an article called, “Build Image Worthy of Major Gift Support.”  The article says, “To attract sizable gifts, your nonprofit needs to be perceived as worthy of such gifts.”

Really think about that for a minute. “To attract sizable gifts, your nonprofit needs to be perceived as worthy of such gifts.”  Does your nonprofit project an image of worthiness?   Or does your nonprofit look like it is struggling? No one wants to invest in a sinking ship, especially in this economy.  

• Is your organization financially stable?
  
• Has your organization had a balanced budget for a few years in a row?
• Does your organization have a financially capable and supportive board?
• Are your facilities well maintained?
• Are your clients satisfied?
• Does your organization have an adequate operating reserve?

Nonprofits: News on the Economy

The Foundation Center has a new page on their website called “Focus on the Economic Crisis.”  Here is what the New York Foundation Center director, Charlotte Dion, has to say about it:

“We know that many of you are very concerned about the impact of the current recession on giving. To help you track what’s going on, and to give you some historical perspective, the Foundation Center has created a new web feature that brings together headlines from Philanthropy News Digest, Foundation Center research, interviews with leaders in the field, podcasts, and other resources on the topic.”

-  from the Philanthropy Front and Center – Cleveland blog

Useful, or just depressing? Let me know what you think in the comments.