Brainstorming on the 21C NPO

Brainstorming on the 21st Century Nonprofit

Although there is some rhetorical overstatement surrounding the upcoming date change to the next century, we must admit that the November 1998 roundtable on the 21st century nonprofit was fascinating. A diverse group of executives from New York nonprofits brainstormed about future trends, their impact, and how nonprofits might respond. The discussion was facilitated by Paul Connolly, Senior Associate with The Conservation Company.

To frame the discussion, Connolly asked people to come up with a 5-10 year outlook on "big-picture" national trends and their impact—either negative or positive—on nonprofits in the social and demographic, political and regulatory, economic, and technological arenas. Connolly reminded the group that forecasting is both part art and part science and that no one would be held liable for their diagnosis, but he hoped that people would be able to learn from each other.

predictions of future trends

The following is a select and random report of participants' thoughts and ideas put forth during the roundtable. These are generalized, opinionated views and outlooks, and are not representative of all nonprofit organizations, their constituents or the facilitator. The impact of some of these projections is sometimes unclear — and they may in fact be either positive or negative depending on how an organization reacts to and accepts change.
•        A growing diversity in the ethnic make-up of America may lead toward different services being needed of nonprofits. This will change the face of both the workforce and of boards of nonprofits. The results of the 2000 census may change funding patterns, government programs, and other unforeseen areas.
•        As the baby-boomers age and this segment increases there will be larger gaps and a greater need for services for an elderly population. There is also an increase in deferred giving because people are living longer and postponing making donations, thinking that they'll get around to it later. Americans' decline in savings means less money for donations to nonprofits at the end of a person's life.
•        Many nonprofit organizations' inability to pay salaries as high as for-profit organizations makes it more difficult to attract a high-quality staff that is technologically literate. Organizations may need to devote additional resources to train staff.
•        Boundaries between the private and nonprofit sector are blurring. For-profit companies are providing more services similar to nonprofits while nonprofits are becoming more entrepreneurial.
•        Individual giving grows as an inter-generational transfer of wealth occurs and personal wealth increases. As a result, the potential for increased individual donations to nonprofits will grow.
•        There is an increase in the scrutiny and "accountability" of nonprofits. The public demands more value from nonprofits and policy-makers may increase regulation.
•        The devolution of Federal and state governments will not only change where nonprofits' funding comes from, but how nonprofits will be looked upon as innovators for solutions whereas government once was.
•        More working women results in a need for more child care, after-school programs and programs that address other family issues.
•        Many Gen-Xers have no tradition of philanthropy and need to be taught how to give. In order to appeal to the younger audience different approaches must be tried, and the messages must appeal to their mindset.
•        Information management services become easier to use and efficient, but top of the line technology and training is expensive. Nonprofits that don't have adequate technological capacity may struggle.
•        The growing gap between the rich and poor leads to restricted information, in that, those who are unable to purchase technology equipment are unable to access services. And nonprofits who are unable to get on board with technology will miss out on possible markets and constituents.

prepare for the future

Although some participants disagreed about what the future may hold, there was consensus that change is inevitable and that it creates both opportunities and constraints. Connolly reminded the group that the characteristics of a successful nonprofit are: a vital mission; high quality, well-regarded and relevant programs; capable and motivated leadership, management and staff; clear communications; a well organized board with able and involved members; efficient operations and strong management support systems; solid financing with reliable and diverse revenue streams; accountability. Below are some of the suggestions made during the roundtable. These broad-stroked solutions are not necessarily meant to be a required or recommended plan of action for all organizations.

Organizational & Program
If your organization has not recently undergone any comprehensive planning, consider some strategic planning in order to assess changes, strengths and weaknesses and to develop a blueprint for action. (See the May-June 1998 New York Nonprofits for some background on strategic planning and also see the September-October 1997 issue for Organizational Life Cycles to help determine where your organization is situated.)

Revisit and re-evaluate your organization's mission. Take a close look at the relevance of your mission and programs for your (possibly) changing population. Conversely, you may need to re-examine client needs and their relevance to your mission and programs. In other words, you need to keep close to the community served.

Improve program efficiency. Be creative and think "out of the box" when examining and attempting solutions — whether overall or when looking at individual programs. Consider collaborating, and if necessary, merge with another organization.

Nonprofits need to learn how to communicate better and educate the general public of what they do. They also need to carve out a niche, to find their unique "edge" and use it to their advantage. As a whole, the sector needs more and better public relations and communications strategies.

Management & Human Resources
Primarily because of the increase in technology, attendees felt that the demands on staff were increasing. If an organization is to be technologically adept, it also needs to attract quality staff who are multi-functional. There is a need for more staff training, development and expertise — and conversely the need for more money for a more technologically trained staff. Many organizations now must hire MIS personnel.

Management needs to make even more efficient use of their time. Stress management was suggested as a solution to help deal with the increases in workload and external pressures.

Finances & Fundraising
Organizations need a diverse funding base, both earned and contributed income. Individual giving is increasingly important as government and foundation sources become scarcer. Organizations may need to develop a broader constituency to help support their mission. Nonprofits also need to work harder to maintain individual connections as others become more savvy and move in on their market. Groups should lean to pass on to the donor a sense of ownership; learn to tell their story in a more compelling way.

There is a need to either increase income (to match an increasing outflow of money) or reallocate funds in order to adopt new technology (hardware, software, and training).

Board
Organizations must develop ethnically, sociologically and age-diverse boards to better reflect and to better understand the changing clientele/constituent base. Board members need to increase their skills and become more active. Board members must have a foot in both worlds: the organization's and the "outside" world (in order to cultivate donations).

Some organizations need to educate board members regarding technology issues. Many boards do not understand that an organization's lack of technological where-with-all will severely affect its survival. Likewise, many boards fear the issue because of the expense involved with what some view as superfluous to the mission.

The board and oversight function becomes more important as constituents expect more accountability.

Systems & Administrative Support
Make sure that your organization develops a technology plan; define your needs and consider what your limits are. Some nonprofits will need top-of-the-line technology in order to stay competitive with the for-profit sector.

Create an efficient infrastructure; automate administrative support; create and manage database(s), and be sure to support them with the necessary capital. Also, consider outsourcing systems and administrative support.

While technology increases proficiency, you need to be sure first and foremost that it enhances your mission.

Over the next ten years some nonprofits will thrive and some won't. In order to succeed, nonprofits need to embrace change and be willing to adapt. By planning for the future, nonprofits can address environmental challenges and capitalize on new opportunities.

The Conservation Company provides management consulting and planning services to nonprofits. They can be reached at 212/949-0990 or visit their web site at www.consco.com Thanks to Paul Connolly for his help in preparing this article