The state of the nonprofit sector? Time for some changes.
- Thu, October 21 2010
- Filed under: Fundraising essentials
Blackbaud today released results of its The State of the Nonprofit Industry (SONI) Survey, a global report covering general operations, fundraising, technology and Internet usage, and accountability and stewardship. They highlighted four trends, which I paraphrase and reflect upon here. (Get the full report here.)
Trend 1: Online innovation is moving slowly.
Most charities are sticking largely to traditional outreach while trying to ramp up interactive channels with limited resources and infrastructure. This is a tough slog, and organizations need more integrated tools and database platforms (while this is a self-serving study finding, it’s likely true).
Trend 2: Donors are getting picky.
I completely agree with this finding - ROI and organizational effectiveness are more important than ever as more skeptical Boomers want proof their dollars are effecting real change. We need to stop whining about need and start showing impact.
Trend 3: Nonprofits are realizing their donors shouldn’t be treated like ATMs.
Boy, I hope this one is true. The study says “There is a new focus on the total supporter journey and… transitioning from transactional fundraising to a relationship-focused supporter journey.”
Trend 4: Fundraising skills are in demand.
The study says, “The vast majority of nonprofits around the world are expecting to increase their investment in fundraising staff… It is clear that fundraising is no longer someone’s “part-time” responsibility. Techniques and data are becoming more complex, and the rate of change is increasing. What was once mostly art is rapidly becoming science, requiring new tools and techniques, partnerships, and better skilled staff.” I agree skilled staff are essential - but I hope that the “science and technology” urged in the report don’t overshadow the other findings. Yes, crunch the numbers - but don’t forget to treat your supporters like real people. Because they are, and they expect more from us than ever.
Comments
Thanks for the summary of the main points! On the donors as ATM perception—- I certainly find that more of a problem in nonprofits where the development and “program” functions are in silos. It’s easy to tell the development department to send another appeal when you don’t understand what’s involved and what that means for donors who just got asked for money. Like with communications, we all have a stake in fundraising, no matter what our jobs.
Re Number 3: Hopefully this will make nonprofits think twice about voting competitions as well. Enough of the “Pepsi Refresh will pay our rent next month!” approach!
My question is this: If nonprofits are realizing the negative effects of an ATM approach *after* a failure, what is broken? One would think that this approach would be a bad one without having to test it out…
I wonder how the “ATM problem” varies within the sector. I have worked for a number of grassroots-based organizations, and I’m currently doing short term work for a major orchestra, and one thing they have in common is constant contact with supporters. Relationship building is, to a degree, more integral to these organizations than others where donors aren’t service recipients or involved with political organizing. That said, even these organizations vary greatly in how they work with supporters. Sometimes, certainly in Washington, DC, a certain arrogance can creep in - a sense of entitlement. I think the fundraising silo problem matters a lot, since there are so many missed opportunities to get donor buy-in via program work/staff.
I’d like to comment on #4.
I’d like to see fundraising skills be a requirement of ANY top level position at a nonprofit, not just specialized workers. FUNDRAISING needs to be woven into every interaction a nonprofit has with a member of the community (when not giving services).
This takes the pressure off of 1 person or a department, and puts the responsibility on everyone to make a good impression in the community, and learn that money doesn’t magically appear, you have to earn it day by day as an organization together.
Sincerely,
Mazarine