Over the last 10 years, the nonprofit sector has grown steadily —its GDP is 5.9%—but it has also declined steadily. According to the National Center on Charitable Statistics, more than 12% of new organizations fail to survive past their fifth year, and about 30% fail to survive the past 10 years. These findings are confusing, leading one to ascertain the reason for the decline. Nonprofit leaders started their organizations because they believed that, beyond government, a particular issue needs public and private support and resources. The early journey is driven by optimization to make immutable changes. This potency to make change has fume community enlightenment. The question goes back to why organizations are failing. Some say they are losing focus on the organization's core values. That could be it. I want to go much deeper, back to the one reason, which is the umbrella of why nonprofit leaders decided to start their organizations. To do the work! In my last blog, I talk about overemphasizing branding rather than strategy. We will take a deep look at the “work” that is being done. The influx of grants and funding opportunities has turned a meaningful sector - nonprofits- into capitalism. And how we can turn things around. Despite the challenges, there is always potential for change in the nonprofit sector, and this is where our hope lies.
Money, Money, Money
Standford Social Innovation Review posed the great question: “How do US Nonprofits get real big?” In 2007, they published research analyzing how nonprofits with more than $50 million in annual revenue were funded. On June 20, 2024, the article was revised to ask if anything had changed since 2007. Quoting the publication, “The data showed that over 90 percent of these “really big” nonprofits “raised the bulk of their money from a single category of funder such as corporations or government—and not, as conventional wisdom would recommend, by going after diverse types of funding.” What one can deduce from the article is in search of revenue, you find organizations battling for funding. This 'funding battle' can lead to a shift in focus from the core mission to the pursuit of funds, thereby corrupting one core belief of the nonprofit sector. Before I continue, I am not saying you do not go after the funding. Without a shadow of a doubt, the funding expediates your organization’s effort. However, it is crucial to avoid getting entangled in this 'battle' and maintain the nonprofit sector's core belief and mission. I am for organizations that have an internal business model. That leaves them self-sufficient without any red tape to be swayed by donors on how to run their organization and what to focus on.
Lights Camera Action
My purpose in writing this blog is to urge leaders to pause and ask the right questions to their board and executive team, particularly about the alignment with our core values. Let's visualize this: we gather in the meeting room with all the best intentions, strategize, strategize, strategize. But at the end of it all, do we ask a simple yet profound question: 'Is this still in line with our core value? Are we still serving the community, or are we merely competing for funding to get paid?' The work is not for show; the work is not a LinkedIn post. The work is not a big announcement of a new partnership to get more partnerships. The work is not to figure out how to be funded-ready, and the size of the organization is growing. The work solution is how we intentionally solve problems we initially committed to doing. It always worries me that so many people have organizations; Washington DC has 13,500, Maryland has 31,000, and my county (Prince George's) has over 4,300 registered organizations. Are we selling empty promises to our community like politicians? This blog does not provide the solution but a moment of reflection so nonprofit leaders do not become perfidious in their mission. Nonprofits are in the business of integrity and not capitalism. Your community needs you, your strategy, your leadership, and, most importantly, your support. Reaffirm your commitment to your mission and the values that guide your work. The purpose of this blog is to encourage leaders to pause and examine the alignment of their goals and activities with their core values. In meetings, leaders often strategize with the best intentions but may overlook the critical question: "Is this still in line with our core values? Are we serving the community, or are we simply competing for funding?"
The focus of nonprofit work should not be on surface-level achievements, such as promoting partnerships for visibility or preparing for funding opportunities. Instead, it is essential to concentrate on solving the problems that organizations originally committed to addressing. The nonprofit landscape is vast, with over 13,500 organizations in Washington DC, around 31,000 in Maryland, and over 4,300 registered in Prince George's County. This raises concerns about whether the services provided genuinely fulfill community needs or simply represent unfulfilled promises.
Takeaway
This blog should serve as a moment of reflection for nonprofit leaders, underlining the significant role of their support. Nonprofits operate with a focus on integrity rather than a capitalistic mindset. Leaders should reaffirm their commitment to their mission and the values that guide their work, prioritizing the community's needs and the effectiveness of their strategies. We are calling for ingenuity leaders to set themselves apart and protect the future of their organizations. Despite the current trend, one will describe it as dilapidated. With that being said, believing in our WHYs will lead to innovation and serve our communities with greater intent and commitment.
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