Put Up Your Dukes! Do Nonprofits Fight for Dollars?
+ Is it true that nonprofits compete
for donations?
+ This is an interesting question at an important time for nonprofit
organizations.
+ Like any business, nonprofits compete, but the game isn't that
clear cut. Instead of a competition between organizations it's an ongoing
challenge to secure a portion of the dedicated social capital available to
better the world around us.
+ Colorado has the most
nonprofits per capita of any state in the U.S. At the same time, Coloradans earn 8% more
income than the national average but contribute 8% less to charity. Colorado nonprofit
organizations have a uniquely competitive funding environment.
+ Government entities, foundations, and corporations typically
annually budget their investment in nonprofit organizations. The amount
of dollars varies from year to year but once the limit is set the reality is
that not all organizations will be funded.
+ Corporate America
takes a leading role in community philanthropy.
Amidst the drastic change in social mood, let's not forget that American companies contribute
billions of dollars year-in and year-out in support of our communities.
+ Corporate giving has and will continue to decrease in 2009.
Click here to read more about the void for a growing number of charities and service organizations.
+ Nonprofit organizations' other key partners, private and community
foundations, have had their assets greatly reduced and have been
forced to make tough decisions. However, some foundations have maintained or
even increased their giving!
Click here to read about Colorado foundations that are leading the way.
+ As the economy expands more dollars
make their way to the social bottom line, but when the economy contracts the
pool of fixed dollars decreases.
+ So, yes, to some extent there is competition for dollars in that
each pot of funds has a limit.
+ However, you also must factor in a few elements that make the
nonprofit sector unique and minimize competition.
+ Nonprofit organizations spend far less time competing over existing
resources than they spend developing new resources. While the existing
amount of social capital is finite, nonprofits are dedicated to reaching new
donors, forging new partnerships, and finding innovative means to fund their
work. Rather than competing for a slice of the pie, nonprofit
organizations are fantastic pie makers.
+ Nonprofit organizations also cannot
compete over one important resource - an inspired philanthropist. (aka YOU!)
If you have a clear sense of your giving priorities and goals, it is likely you
will increase giving by adding organizations rather than stopping gifts to one
group to give to another. Each year individuals make up roughly 80% of
the giving nationwide.
+ When social benefit is the goal, collaboration and
cooperation is to the advantage of all parties. Community Shares is a
great example of disparate organizations collaborating rather than competing.
In the nonprofit sector there are many opportunities to form collaborations
where everyone wins. (The nonprofit, funders, and clients.)
We will likely see more groups combining efforts as social capital decreases.
+ Keep in mind, if the U.S. nonprofit sector were a nation
it would be the
16th largest economy in the world! We have many strong business
minds running nonprofit organizations and any competition that does exist spurs
excellence and innovation. Organizations are stronger because of the need
to secure social capital.
+ In the end, the vast majority of nonprofit organizations
recognize our goals overlap and it is in our best interest to generate new
social capital and grow the collective culture of giving rather than compete
over what exists today.
Dear Friends,
