Non-Profits are drowning! Crowdsourcing ideas for social change
Yes, this is not a clickbait, but empirical evidence suggests a concerning dichotomy between the non-profit and donor alignment.
I seek your help, not with a donation, but your insight and wisdom in how we can collectively change the dynamics and our engagement with the non-profits—an attempt to crowdsource some possible solutions for a complex social and business problem.
According to The Fundraising Effectiveness Project, non-profits lose more than half of their donors each year, with 76% of new donors never giving again. This data point is significant as non-profits typically spend $1.25 to bring in the first dollar from new donors. More than 50% of the donors do not renew their pledges each year. On a positive note, COVID has influenced donor behavior in a surprising favorable change this year with a small positive change, but we need to affirm if this change is sustainable and systemic.
Non-profits play a critical role in democratically shaping the world.?There are over 1.5 million (as of spring 2021) registered non-profits (total population around 330 million) - there is a non-profit for every 220 people. Over 100 million people participate (employee of non-profits, board members, donors, etc.) in the non-profit economy with over $470B (around 2% of the US GDP) of charitable contributions in different sectors.
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Non Profit Impact Matters, an advocacy group, has compiled helpful information that is worthy of note.?Non-profits are economic engines. There is an inner altruistic intent in most people wanting to do good. However, there are strange conflicting forces in play that get in the way of optimum utilization of resources. Non-profits spend a lot of their resources attracting new donors, and most donors do not actively engage. So, the non-profits are investing more time and energy in surviving rather than focusing on their mission.?
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In another ongoing survey to which some of you have provided inputs, more characteristics of cognitive dissonance emerge.??
Is there a difference in how a for-profit organization would address these problems over how a non-profit would do? Non-profits are resource-constrained and are playing the high-wire balancing act. Most non-profits operate from the position of scarcity.?
A wealth advisor who works with high-net-worth donors suggested that donors have minimum expectations of the non-profits - a simple thank you goes a long way. Most non-profits do not have the process or infrastructure to acknowledge.?Significant decisions are influenced by simple emotional needs. Another consultant opined that there are hundreds of books written, and thousands of people make a living by advising non-profits. If the non-profits can implement a fraction of what is written and recommended, the impact on the world will be significant.
Please engage - we need your intellect. What do you think are some ways to address the challenges of this complex but vital social infrastructure? If you have not already provided your input to our survey on non-profit engagement, we request your inputs here. Donor Engagement Survey
How would a for-profit organization solve for these? What are some amazing non-profit experiences you have experienced? How can we magnify those? Please share your most interesting non-profit engagement stories. We appreciate your views here.
Senior Vice President - Senior HR Business Partner & HR Business Consulting Leader
3 年Rama, this is a great problem that needs solved and of course my opinion it does start with budget and infrastructure. Two things that non-profits are not blessed with. Many times they have to rely on volunteers who are not experts in this area but are helping because they have passion for the org. It is a tough problem for communities that rely on these organizations.
Executive Director and Co-founder of Whitney/Strong Organization
3 年Completed my survey!