TCC Group and the Weingart Foundation are pleased to release a comprehensive study of the capacity-building needs and resources available to nonprofits in Los Angeles County.

There are over 30,000 nonprofit organizations in L.A. County, more than any other county in the nation and more than most states. Through our research, we heard from over 1,600 leaders, who participated in surveys, interviews, and focus groups.  More than 250 nonprofits completed the Core Capacity Assessment Tool (CCAT), which provides confidential, individual organizational diagnoses, as well as rich aggregate data for sector-wide research. The nonprofits also completed a supplemental survey that assesses their experience with and access to capacity-building service providers.

The study found that nonprofits in the region are strong in visionary leadership and understanding community needs, but weak in strategic learning, board development, and human resource management.  Further, there were interesting sub-sector variations in organizational development needs. The research also revealed a shortage of high-quality coaching, peer exchange opportunities, and culturally-competent capacity-building services -- and found that nonprofits are not well-informed consumers of consulting and training services.

We heard from a broad range of stakeholders who wanted the philanthropic community to play a greater role in facilitating, coordinating, and strengthening  the regional nonprofit capacity-building 'ecosystem,' without being overly prescriptive.  The report is being shared widely with nonprofit, capacity-building, and philanthropic leaders to begin a candid discussion about next steps.  A series of forums will be held to reflect on the findings and co-create a capacity-building strategy for the region.

Funders and nonprofit networks in other regions -- who also depend on nonprofit organizations to provide critical services, spur innovation, contribute to the economy, and advocate for change -- can also learn from this study. Many nonprofits are struggling with leadership, management, operations, and program delivery as demand for their services increases, revenues decline, and they are being asked to do more with less.   Some funders have conducted this type of study, only to have it fall short because it did not adequately involve key stakeholders. This study may provide some helpful "food for thought" about effectively applying assessment tools and frameworks in ways that are beneficial for both individual nonprofits and the entire field.  It may fuel discussion about how funders can modify their own behavior to support nonprofit management and governance, and how capacity-builders can strengthen their own organizations.

TCC Group President and CEO Richard Mittenthal talked with The Wealth Manager about how philanthropists are changing the way they interact with nonprofit organizations or established foundations. "Twenty five years ago," says Mittenthal, "philanthropists would give money to museums, the opera, or the United Way.  Now, the number of nonprofits has exploded, with 1.6 million nonprofits in the U.S. alone.  Whether philanthropists intend to build enduring institutions that last beyond generations of family involvement or to give away all of their wealth within a shorter timeframe, adopting business strategies and modeling can provide a clear path and help achieve their goals." Read more.

On November 11, join Senior Vice President Paul Connolly in San Francisco, where he will present TCC Group's research on nonprofit sustainability at the BoardSource Leadership Forum.