There are some fundamental shifts happening in the nonprofit and philanthropy sector that will be important to watch.

1. The Future
of the
Nonprofit
Sector
© 2016 Social Velocity

2. More Competition

3. 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

4. More Focus on
Results

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

6. 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

7. Ratings Went From... ...To
Overhead Expense Ratio
(20%+ is unacceptable)
Financial Health
Accountability &
Transparency
Results Reporting

9. More Focus on
Social Change

10. Beside vs.
Baked Into the Economy
Symptoms vs.
Systems
Pennies vs.
Investment
“Social Change”
“Charity”

11. Theory of Change
Target
Population
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

12. More Advocacy

13. “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

14. More Networked Nonprofits

15. 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:

16. Less Nonprofit Starvation

17. The Starvation
Cycle
Funders
Demand
More for
Less
Nonprofit
Skimps on
Staff,
Systems
Nonprofit
Is Less
Effective
Fewer
People
Served,
Changed

18. % of Dollars Spent on Admin & Fundraising
Focuses on inputs, not results
Ignores business model distinctions
Forces nonprofits to “hide” operating costs
Is crippling and destructive

19. Revenue
Ongoing
Supports day-to-day
BUYS services (beds for a homeless shelter)
vs. Capital
One time
Supports infrastructure
BUILDS organization (evaluation system)
Two Kinds
of Money

20. A one-time infusion of
significant money to fund:
Technology
Systems
Planning
Development staff
Training
Leadership development
Capacity Capital

21. Less Fundraising,
More Financing

22. Fundraising
doesn’t work
anymore…

23. Nonprofit’s
Financial Engine
Nonprofit’s
Core
Competencies
Nonprofit’s
Mission
Connect Money
& Mission
Nonprofits
will be most
successful in
this sweet
spot

24. 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?”

25. Learn More…
sociavelocity.net/tools

26. Other
Nonprofit Tools
Books
Bundles
Guides
socialvelocity.net/tools

27. Nonprofit Strategic
Planning
Create momentum
Attract deeper funding
Filter future decisions
Create a management tool
Realize more change
More info at
socialvelocity.net/consulting

28. © 2016 Social Velocity
www.socialvelocity.net
(512) 694-7235
Twitter: @nedgington
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