 Melarbit Partners, Inc
Unleash the Power of Philanthropy
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Greetings!
Melarbit Partners is sending you this communication in an ongoing effort to keep you informed about the broader developments in the world of philanthropy and to support your fundraising efforts. As always, please share comments and inquiries at bruce@melarbit.com. |
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The New Normal
Much attention has been given to the economic downturn and the difficult operating environment for nonprofits, social enterprises and philanthropic organizations.
In addition to the decline in giving widely reported in Giving USA last month, the Center for Wealth and Philanthropy at Boston College reports a 5% decrease in household charitable giving in 2009. The report's findings are based on estimates produced quarterly by the Center's Individual Giving Model, the nation's first model designed to estimate future and real-time charitable giving by households on a quarterly basis.
The economic crisis has highlighted a longstanding problem in the nonprofit sector, the need for more sustainable, flexible sources of funding. This issue was addressed head-on several weeks ago at the Social Impact Exchange, a first-of-its-kind conference focused entirely on innovative methods to support scaling and replication of high-impact programs.
As we know, change is often disruptive. A recent summit on philanthropy, Disrupting Philanthropy: Changing the Rules hosted by Stanford Alumni Association and the Center on Philanthropy and Civil Society, moderated by Steve Gunderson, President and CEO, Council on Foundations, focused on the sea-change underway in the social sector and the myriad of innovative possibilities for change and donor involvement.
However, as the summit revealed and many of us already know, change also can be a catalyst for growth. In fact, it is often when change is forced upon us that we open to making difficult choices. By taking the time to ask ourselves questions and challenge assumptions we can begin to generate ideas that can help to create new opportunities to become stronger and build more impactful organizations and enterprises.
'The greatest danger in times of turbulence is not the turbulence; it is to act with yesterday's logic.' Peter Drucker
One of the untold truths in the current dialogue is that the changes we are experiencing represent less of a one-time disruption and more of a new reality for the social sector and indeed much of our economy. If we are willing to accept this premise, then the discussion becomes more about how we can strengthen organizations to position them for the challenges and funding opportunities ahead.
First and foremost, organizations need to reaffirm that beyond the dollars raised, fundraising is the critical vehicle that advances the mission, and sustains the life of the organization. This perspective helps to properly frame the fundraising function and position it in a way that allows your organization to engage leadership and financial support.
Second, build on core strengths. This is a time for clarity of mission and being willing to 'put a stake in the ground' in terms of what your organization will hold itself accountable for. Successful fundraising begins with a clear value proposition often articulated in a business plan. A few questions that may help you get started in developing your organization's value proposition: What is the critical need you are addressing? What are you doing to address this need (within the context of what others in your industry may already be doing)? What is success?
Third, capitalize on transitions. While painful, new leadership, layoffs and even a decline in traditional sources of revenue all present new possibilities. In fact, there is a 'movement' in the philanthropic world to broaden the resources brought to address social and environmental causes. The CEO of The Robert Wood Johnson Foundation referenced this when she spoke about the need to 'recalibrate' funding agendas in her keynote address at the Social Impact Exchange.
And, finally, seize opportunities. Yes, even in (especially in) this challenging environment there are opportunities to communicate, motivate and build relationships. In 2008, arguably one of the worst fundraising environments Melarbit worked with a national healthcare organization to launch a major capacity building campaign. Building upon key organizational strengths, namely a small but loyal base of corporate supporters, the campaign was used to reaffirm these strategic relationships and broaden the base of support. (Click here to read more about this campaign.) Do you know who your most committed supporters are and how you can engage them in broadening your base of support? |
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In Closing
We all know this is one of the worst fundraising environments in decades. We also know that while there are certainly more changes underway and the next chapter of American philanthropy will indeed be different, we can take comfort in the enduring tradition of people caring for others that philanthropy represents.
Stay tuned for additional communications that help you prepare and position your organization for fundraising success. Meanwhile, for more information about Melarbit Partners and its work to unleash the power of philanthropy, please contact bruce@melarbit.com, (646) 701-3778 or visit our website. |
 Sincerely,
Bruce Arbit
Principal, Melarbit Partners, Inc Unleash the Power of Philanthropy
(646) 701 - 3778
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Melarbit Partners, Inc. and its network of established partners and strategic alliances unleash the power of philanthropy to help growth-oriented notprofit organizations, social enterprises and philanthropic individuals/institutions leverage an innovative mix of funding sources to support an organization's goals.
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