The Global Center for Nonprofit Excellence® is an orchestrated network helping nonprofits, funders and industry experts work better together for greater impact through increased operational effectiveness and strategic introductions. With scores of weekly encounters with nonprofit leaders from all corners of the community, obvious trends have emerged.
#1 . CHARITABLE GIVING REBOUNDS
The trend-line for donations and number of individual donors will continue strong in 2021, relative to sector. This is playing out in more new donors, larger average gift size and increased frequency of giving for services considered essential.
#2. NONPROFITS DIVERSIFY REVENUE STREAMS
Nonprofits are identifying new sources of income to supplement donations. Nonprofits are exploring everything from monetizing their intellectual property to accepting Bitcoin. Nonprofits are now selling their products and services as well as opening or partnering on new ventures.
#3. MERGERS AND STRATEGIC PARTNERSHIPS
Mergers are being used strategically by nonprofits to either survive COVID-19 or increase impact or both. In a recent study, 88% of post-merger organizations believed they were better off than prior to the merger. It's all about mission and match.
#4. OUTSOURCING OF ALL NON-CRITICAL FUNCTIONS
Nonprofits are continuing to implement creative belt tightening in all six areas of nonprofit operations. From Fractional CFOs and outsourced back offices to contracted marketing departments, managers are looking to cut costs through outsourcing "important but not critical functions" across the board
#5. BOARD MAKEOVERS
Nonprofits are looking for new board members but actually, they are looking for a different kind of new board member... a smarter, specialized and more diverse version. Board members are being asked to step up or step out.
#6. CORPORATE PHILANTHROPY EXPANDS
Not long along, only a few enlightened businesses actively promoted social issues as part of their marketing and branding. Today, corporate philanthropy and corporate social responsibility are integral parts of most every serious business plan.
#7. ACCOUNTABILITY AND TRANSPARENCY REDEFINED
Nonprofits are being pressed for greater accountability and transparency from all sides. For example, larger funders and Millennials are both pushing nonprofits beyond 990s, Audited Financial Statements, and Impact or Annual Reports before making funding decisions.
#8. LARGE NONPROFITS GET LARGER
As Millionaire DAFs and Billionaire foundations continue to grow, their donations will continue to disproportionately go to larger, more established nonprofits. It’s about capacity, capability and being able to use the funds for the greatest impact.
#9. BEST PRACTICES BECOME VALIDATION STANDARD
Nonprofits, Funders and Industry Experts are independently finding that surveying operational competence against Best Practices or prescribed industry standards can be learned and improved. Smart tools, like OpX360®, offer the greatest value for the least amount of time and money invested.
#10. TECHNOLOGY ADVANCES
Funders and Industry Experts are leading Nonprofits into the 21st Century. From small tools to fundraising apps to integrated digital platforms, Nonprofits are leveraging technology to increase revenues, improve communications and decrease expenses.
About the Authors
BOB LIPPS, ATTORNEY AND CPA
Bob Lipps is Co-Founder and Principal Advisor at The Global Center for Nonprofit Excellence® and Co-Inventor of OpX360®. Bob serves on the boards of CCM and SIM. His previous roles include Managing Partner of Ten Talents Partners, Executive Director and Practice Leader of Lockton Insurance Brokers, Chairman of Stewardship Insurance Ltd., and General Counsel, CFO and Board Member for Wycliffe Bible Translators. Bob holds degrees from Arizona State University and Texas A&M University School of Law and is a member of the TX and FL Bars and the TX State Board of Public Accountancy.
MARC STEIN, MBA
Marc Stein is Co-Founder and Principal Advisor at The Global Center for Nonprofit Excellence® and Co-Inventor of OpX360®. His previous roles include Vice President and Executive Team Member of Joni and Friends International Disability Ministry, President of Gospel Light Worldwide, and National Director of the International Bible League and various other roles within the professional services arena. Marc holds degrees from California Coast University and is the author of Referral Rainmaking, How to Build Your Business Through Professional and Client Referrals. He currently serves on two boards.
About THE GLOBAL CENTER FOR NONPROFIT EXCELLENCE
The Global Center for Nonprofit Excellence® is an orchestrated network helping nonprofits, funders and industry experts work better together for greater impact through increased operational effectiveness and strategic introductions where:
- We Make Nonprofits Better.
- Nonprofits can know their operational levels and the three most important things to do next; Funders can gain greater confidence in nonprofits and the confidence to give more;
- and Industry Experts can have a dynamic, focused connection to better serve both nonprofits and funders.
By combining nonprofit best practices and the simple use of artificial intelligence, you can now measure 60 operational practices in all six areas of nonprofit operations and know the three most important things that you can do to improve your operational competency fast in each of those areas.
Any of the OpX360® assessments can be taken individually or together, depending on the needs of your organization.
HOW I T 'S BUIL T
Statements are grouped into sets of related Best Practice statements called Key Elements and each individual statement is categorized into one of three Competency Levels.
Those levels of competency are:
- Level 1: Core operational practices necessary to perform effectively.
- Level 2: Sophisticated practices that enhance overall performance.
- Level 3: Leading edge practices that enable an organization to deliver the highest level of operational performance.