What happens when a nonprofit that is organized for the purpose of helping others and making a difference in their community, needs help themselves?
Lack of surplus (profit) margins, rising costs, competition for labor, and the decline in Federal and State funding is making it increasingly difficult for nonprofits to sustain themselves financially. There is even the question of whether the government will be able to continue their support of nonprofit organizations.
This is where Philanthropy and the evolution of philanthropic giving can help.
Unlike for-profits, nonprofits do not carry margins large enough to fund growth and they lack access to capital markets, venture capital, or equity/ownership options. Nonprofits need resources to fund investments in growth, change capital, build capacity, acquire necessary talent, support consolidation, and to make improvements in technology infrastructure. Many organizations are in need of one-time investments to bring them into a competitive or viable position, while others require larger, on-going funding.
Foundations and donors are beginning to realize this need and the importance of investing differently but it is critical that the pace and geographic reach of this evolution increases.
Philanthropic giving is positioned to become the new funding source for those nonprofit organizations that would otherwise be forced to close their doors due to the decline in government funding. This will allow countless capable organizations the ability to continue to add value to our towns, communities, and country.
Start the conversation today and let’s help those that are helping others.