[News] Nonprofit Sector Running at a Deficit for 10 Years

news-roundupDo you find it as troubling as I do that the nonprofit sector has been running at an overall deficit ranging from 4 – 8% for the past several years? Perhaps some of this was just a result of dipping into a rainy day fund that had been built up previously. Regardless, it’s not sustainable for the long run. The referenced report (from The Urban Institute) in the article from The Nonprofit Times (included below) also covers staffing costs and financial trends. It doesn’t look like the 2016 version is live yet on The Urban Institute site, but here’s a link to the 2015 information page: http://www.urban.org/research/publication/nonprofit-sector-brief-2015-public-charities-giving-and-volunteering

Happy reading!


Leadership and Nonprofit News Roundup


canstockphoto7867487Organizations Can’t Change If Leaders Can’t Change with Them
When it comes to organizational change, failure continues to be more common than success. In a survey of nearly 3,000 executives about the success of their enterprise transformation efforts, McKinsey discovered the failure rate to be higher than 60%, while Harvard Business Review conducted a study that suggested more than 70% of transformation efforts fail.

Make Your Strategy More Agile | Harvard Business Review
As strategy is becoming more fluid — more like software that needs constant upgrading — two alternative concepts are emerging: vision and improvisation. Vision incorporates the long-term, if not permanent, purpose and principles of an organization, which serve as the north star for all its actions. Improvisation suggests a fundamental openness and flexibility at the tactical level — the willingness to explore, experiment, and iterate.


canstockphoto17662095 (1)Nonprofits Paid Staff $634 Billion, Running Deficits | The NonProfit Times
…while nonprofit revenue and outlays show increases from 2004 to 2014, average annual growth rates pre-recession and post-recessions reveal lingering effects of the recession. “A more concerning issue for the sector, though, is a gap” between total revenues and outlays. Since 2008, the sector has been running deficits between 4 and 8 percent of its total revenue each year…

Catalytic Collaboration | Stanford Social Innovation Review
…an emerging approach to social change may be able to help nonprofits work together to create something far greater than the sum of their parts. We call this approach “catalytic collaboration,” and we “discovered” it through talking to the leaders of a diverse set of 30 nonprofits about the ways they work and the potential they see for seeding unprecedented, sweeping change. All of the organizations we studied are committed to collaboration, but only a handful, we realized are emerging as truly catalytic collaborators. These organizations are exemplary in displaying four essential behaviors…


FPImprove Donor Stewardship with These 5 Proven Strategies | FundraisingCoach.com
To successfully retain donors, nonprofits need to invest time into cultivating and maintaining long-lasting relationships, from the first donation onward. With a concrete donor stewardship plan in place, donors will feel more valued and invested in your nonprofit. While you may understand the importance of donor stewardship, it’s not always clear how to take the best course of action. Here are five strategies to improve your donor stewardship…

The Key to Grabbing and Keeping a Donor’s Attention | Get Fully Funded
Messaging is key to fundraising. When people understand what you’re saying, they feel something, then decide whether to act. If they don’t understand, they won’t give, simple as that. Good messaging: Resonates. Motivates. Harmonizes. On the other hand, bad messaging bores people. It’s what causes them to stop reading your newsletter or appeal. It’s what starts their exit from your donor family. Most bad messaging is very ego centric…

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