I was recently asked this question.
There are many possible answers: cuts in public funding, ineffective boards, turnover
in leadership. My answer was “public distrust and competing for limited
resources”.
Nationwide,
public distrust has been heightened by
reports of fraud, abuse and other scandals. A simple Google news search of nonprofit
and fraud, revealed over 12,000 results.
Abrupt shutdowns and frequent turnovers in leadership perpetuate uncertainty
among the general public. Even the most effective and most transparent organizations are affected when public confidence in the nonprofit sector is weakened by news reports of mismanagement and criminal behavior at other charitable organizations. Donors question if their gifts will be used as intended and the long-term health of the benefiting charity.
Individual, private and public donors want to see documented, measurable impact from the charities they support. Nonprofits must see
their donors as investors and treat them as such by demonstrating and communicating
their impact, and by making it easy for the public to access information about how donations they receive are used.
As demand for charitable services
increases along with the number of charities, a nonprofit's
long-term sustainability hinges on its ability to effectively compete for limited resources—securing support from various
sources. As organizations experience cuts or total loss of support from public
and other sources, they will seek to win the support of donors who have
historically given elsewhere. Nonprofits must expand their base of
individual donors while being equally dedicated to maintaining their current
supporters.
Nonprofits must make relationship management a
priority.
No comments:
Post a Comment