The Future of the

Nonprofit Sector

© 2016 Social Velocity

More Competition

1.5 million nonprofits in US, up 15% since 2003

From 2001 to 2011, number of nonprofits up 25%, but businesses up only 0.5%

More B Corps, public benefit corps, social businesses

More Focus on Results

In 2016, 41% of donors gave based on a nonprofit’s results (only 16% in 2011)

Give based on values

Want to be engaged

Focus on impact

Pave their own way

Source: www.nextgen.org Johnson Center for Philanthropy and 21/64

Ratings Went From... ...ToOverhead Expense Ratio

(20%+ is unacceptable)Financial Health

Accountability & Transparency

Results Reporting

More Focus on Social Change

Beside vs. Baked Into the Economy

Symptoms vs. Systems

Pennies vs. Investment

“Social Change”“Charity”

Theory of Change

Target Populatio

n

External Context

Activities Short/Long Term Outcomes

Assump-tions

What people or groups are you

seeking to benefit or influence?

What relevant

trends in or changes to the external environment

are occurring?

How and where are your core

competencies employed?

What changed

conditions do you

believe will result from

these activities?

What evidence do

you have that this

theory will actually result in change?

The results of your programs

More Advocacy

“Advocacy is not just a right for nonprofits that is protected by the First Amendment; it’s a profound responsibility and effective tool to advance nonprofit missions.”

- Tim Delaney, CEO, National Council of Nonprofits

More Networked Nonprofits

Forges long-term partnerships

Thinks of their nonprofit as a node within a broad constellation

Achieves their mission more effectively

Source: “The Networked Nonprofit,” Jane Wei-Skillern & Sonia Marciano, SSIR 2008

A networked nonprofit:

Less Nonprofit Starvation

The Starvation Cycle

Funders Demand More for

Less

Nonprofit Skimps on

Staff, Systems

Nonprofit Is Less

Effective

Fewer People Served,

Changed

% of Dollars Spent on Admin & Fundraising

Focuses on inputs, not resultsIgnores business model distinctionsForces nonprofits to “hide” operating costsIs crippling and destructive

RevenueOngoingSupports day-to-day BUYS services (beds for a homeless shelter)

vs. CapitalOne timeSupports infrastructureBUILDS organization (evaluation system)

Two Kinds of Money

A one-time infusion of significant money to fund:

TechnologySystemsPlanningDevelopment staffTrainingLeadership development

Capacity Capital

Less Fundraising,More Financing

Fundraising doesn’t work anymore…

Nonprofit’s Financial Engine

Nonprofit’s Core CompetenciesNonprofit’s Mission

Connect Money & Mission

Nonprofits will be most successful

in this sweet spot

Financing is...A long-term strategy for bringing enough

money in the door to achieve your mission.

“How much should we raise to accomplish our goals?”

“How much can we accomplish with what we can raise?”

Learn More…

sociavelocity.net/tools

OtherNonprofit Tools

BooksBundlesGuides

socialvelocity.net/tools

Nonprofit Strategic Planning

Create momentumAttract deeper fundingFilter future decisionsCreate a management toolRealize more change

More info at socialvelocity.net/consulting

© 2016 Social Velocity

www.socialvelocity.net(512) 694-7235

Twitter: @nedgingtonFacebook: Social

Velocity