Are there too many nonprofits?

Posted on December 18, 2011 by

The question often asked and seldom answered is this, “are there too many nonprofits?” The answered is yes. In the Chronicle of Philanthropy, Nov. 18, 2011, issue the article titled Calling All Boomers: Don’t Start More Nonprofits by Mark Rosenman referenced a study that 12 million baby boomers want to start their own nonprofit or socially oriented business over the next decade.

There are way too many nonprofits that are so small they have no paid staff or maybe one and not much money. These nonprofits are challenged to advance their mission and serve the community.

What the nonprofit sector should be focusing on is growing small organizations so they are better positioned to offer services. This might mean collaboration, partnership and mergers, or it might mean some nonprofits should dissolve. Rather too many nonprofits struggle and just barely get by. It is unfortunate.

Chronicle of Philanthropy article

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Thank yous matter

Posted on December 18, 2011 by

During the Colorado Gives Day on Dec. 6, 2011, I donated, albeit in small amounts, to 8 different nonprofits in Colorado. Of course I received a computer-generated thank you from the Colorado Gives Day website; but what I was most interested in receiving was the direct thank yous from these nonprofits.

According to Robert Dickeson during his fundraising workshop in Oct 2011, thank yous go a long way with donors. He is correct. I have received grateful acknowledgements from 6 of 8 nonprofits and I am fairly certain the two that I have not heard from are unlikely candidates to receive a donation from me in the future.

The most impressive was the Rocky Mountain MicroFinance Institute: a board member called me to personally thank me for my “generous” donation. In my opinion the donation was very small but this personal thank you made me feel special. They clearly have my support in the future besides the fact they are a great organization. They wowed me.

Four of the 5 nonprofits that thanked me did so by email messages and of these 3 were personal. Only one sent a letter and this included a personal note written on it. Of the 8 nonprofits, I have relationships with 7 through my work with the Estes Park Nonprofit Resource Center or my consulting, C2 Strategies. Email is a perfectly acceptable way to receive a thank you.

Thanking donors is important. Think about how you feel when you are acknowledged and then think about the ways you are thanked. Do this for your donors and make it matter.

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Is charity status becoming irrelevant?

Posted on October 1, 2011 by

It is a risk in the nonprofit sector to state that there are too many nonprofit organizations but I believe there is. I am taking classes at Regis University and it is common to hear new students state they want to start their own nonprofit. There seems to be little regard to collaboration, and researching existing organizations with similar missions.

Some people think they can do the work better than others so refuse to combine efforts to meet with need. It is less about meeting the need than it is about self-orientation (this is all about me doing the good work).

The IRS approves tax exempt status for organizations that some people question. For example an article in Chronicles of Philanthropy, June 1, 2011, by Doug White, wanted to know how a nonprofit was approved who employed Harold Camping, the California radio host who predicted the end of the world.

According to Blue Avocado, there are not enough GOOD nonprofits, http://www.blueavocado.org/content/too-many-nonprofits-no-there-arent-enough-good-nonprofits

The life cycle of nonprofits often begins with good people wanting to meet a need and the solution is starting a nonprofit. It is all volunteers and the first test is getting funds to support your organization.
http://postcards.typepad.com/white_telephone/2007/04/are_there_too_m.html

I do believe that collaborating is what is important and not another nonprofit.

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Time to fold

Posted on October 1, 2011 by

Time to fold

John Elway left on the top of his game. Jerry Sienfeld called it quits when his show was wildly successful. And Opah Winfrey threw in the towel when her show had record viewers to move on to other ventures.

This is about knowing when it is time to step down, gracefully. As Jim Collins references in his Good to Great and the Social Sector, 2005, are you [still] on the right bus in the right seat. If not, maybe it is time to move on. This is much easier said than done. We are invested in the organization we started or have served for many years and it is hard to let go. We often think others do not have the commitment we do to carry on or cannot do the work as well as us. However, hanging is not good. Know when it is time to leave and make sure you are leaving your nonprofit in good hands, this is your legacy.

I have been diagnosed with founder’s syndrome but I learned to let go, let the new people take the lead and grow the organization. When this realization came for me it was a relief. I wish for others the same actualization.

Standford University’s Entrepreneurship Center, http://ecorner.stanford.edu/authorMaterialInfo.html?mid=2233

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A free lunch is what you get

Posted on October 1, 2011 by

There is a prevailing attitude that some people involved with nonprofits should get everything for free. Please do not get me wrong as I appreciate it when a professional offers their services at no charge, or a business provides a product for free. However, I never expect this rather appreciate it when it happens. Too often those of us in nonprofits expect most everything for free and when this does not happen we complain and worse, bad-mouth the person or business that did not give us whatever we wanted for free.

Nonprofits are businesses and I think we could do a better job of budgeting and working with others on establishing nonprofit discounts. Maybe we could find ways to partner and collaborate so those who are giving us complementary services and products or discounting these also get something from us. How well do we promote and market the businesses who support our nonprofit? Are we doing word-of-mouth marketing for those who support our cause? Or do we complain about them because what they provide is not free, or discounted enough?

 

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Please give me your list of donors

Posted on October 1, 2011 by

Those of us who work and volunteer for nonprofits we talk about the importance of community, collaboration, coordination and partnerships, but when it comes to our donors there is simply no sharing. When the Estes Park Nonprofit Resource Center hosted the National Philanthropy Day in Estes Park (Nov. 2010) I asked nonprofits for their donors list so they could be invited to the non-fundraising event. That did not go over well. So I encouraged nonprofits to invite their “contacts” to this event and still there was resistance.

During a recent conversation with a nonprofit colleague, we talked about donors and this is a very sensitive topic. If this were about keeping personal information private I would agree; however, this is about protecting our donors from others who might take them away. Really? Are we so insecure with the support from our donors that we must keep them from other nonprofits?

Donors give for many reasons and among these are because of the mission and work the nonprofit does. Some donors follow the person and give to an organization because they have connected with those doing the good work. If a donor believes in supporting programs for children and are committed to this, they are not likely to support the Estes Park Nonprofit Resource Center. It simply does not fit for them. If a donor’s interest is nature and is committed to this they are not likely to support senior activities. This is especially the case for donors who budget their gifting dollars or those who have limited resources.

The donor relationship is reciprocal and should be mutual. They support our programs and we keep them informed and continue to do the good work they expect. However, too often we treat our relationships with donors as fragile, tenuous and temporary. If our donors are not committed and interested maybe they should move on (did I just say this?).

So work on improving donor relations, getting them more involved, engaged and committed to your cause.

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It only takes 10% to change the world

Posted on July 31, 2011 by

According to scientists at the Rensselaer Polytechnic Institute (New York) it only takes 10 percent of the population who have an unshakable belief to influence a majority. Wow. This quite literally is the tipping point. The findings were published in July 22, 2011, in the journal, Physical Review E in an article titled “Social consensus through the influence of committed minorities.”

A minority belief becomes a majority opinion. And the type of network did not significantly change this formula. The key words are committed, unshakable, set in their views, unflappable in modifying beliefs, true believers and agents of change. All of these traits are hard to measure but we know them when we feel this way or when we see it in others.

Implications? Those of us in the nonprofit sector have passion so could we influence just 10% of others to change the world (at least our worlds)? Something to think about.

http://www.sciencedaily.com/releases/2011/07/110725190044.htm

 

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The Future of Nonprofits

Posted on July 27, 2011 by

It was brought to my attention that there is a new book that is gaining ground in the nonprofit sector, The Future of Nonprofits – Innovate and Thrive in the Digital Age. So of course I contacted the authors and asked if they wanted to come to paradise (i.e., Estes Park). They are interested. So are we interested as a community to learn from the two authors, David Neff and Randal Moss? Or are there a few nonprofits that would like to learn more from them? I want to hear from you. Christy

For more information check out their website at http://www.thefutureofnonprofits.com/.

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We are in this together

Posted on July 27, 2011 by

“Not sure I want to share with others how I raise funds because then they could use this and it could hurt my organization.” Really?

This assumes that donors have only one interest. Donors give for many reasons and among these is because they believe in a cause, “I want to support a recreation center so children have a place to go” and because of a connection, “My dad had a heart attack so I support the American Heart Association.”

In fundraising it is about finding those who believe in your mission and want to support it because of the good work you do. It takes time to learn about what people believe in but it is worth it when you connect.

The EPNRC is sponsoring a workshop on fundraising, Wed., Oct. 12, 2011, Fundraising Principles and Practices. Registration is through the Estes Valley Library, http://www.estesvalleylibrary.org/default.asp.

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“Noble Lying”

Posted on July 27, 2011 by

Recruitment of board members has its challenges and all too frequently we beg for board members and engage in what Bob Dickeson refers to as “noble lying”, by saying, “It won’t take much time at all.” Or “You do not need to attend any meetings.” Or “You do not have to donate because you are volunteering.” As Bob says, “We should not therefore be surprised when board members are not fully committed. Engagement to the organization includes participation in meetings and supporting the organization’s purposes fully.”

The approach of noble lying as a way to recruit new members is wrong and does not serve the nonprofit or the community. There is a better way.

Does your organization have a written job description for board members? If not draft this and include realistic time expectations, attendance at board meetings is mandatory and a cash contribution is expected annually. People appreciate honesty and if they are interested in your mission they want to be engaged and expected to perform. .

Learn about the passion and interests of others to see if there is a match with your organization and if there is, then first introduce this person to the good work you do before asking them to serve.

If you would like to see samples of board member job descriptions or learn more about recruiting techniques, contact the EPNRC, info@epnonprofit.org.

 

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