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Midsized and small nonprofits need sustainable funding to make a stronger impact, which can be achieved through well developed major gift strategies and proper grant compliance/management. Our latest video emphasizes the following key points regarding this issue: 1) small and midsized nonprofits cannot afford to do business as usual becuase the nonprofit climate is changing. The Urban Institute reported that the number of nonprofit organizations rose twenty-five percent (25%) between 2001 and 2011, from 1,259,764 to 1,574,674. There are more nonprofit organizations today than ever, which means there is stronger competition for limited funding; 2) Small and midsized nonprofits must diversify their funding mix to include sustainable and variable funding. Variable funding is funding that is uncertain, whereas sustainable funding resulting from a well-executed planned giving program is predicable and stable. Nonprofit organizations need both types of funding to be successful and grow; 3) By implementing the right funding strategies and engaging in proper grant management/compliance smaller nonprofit could make even a stronger impact.
Watch our new video and send us your comments at firstname.lastname@example.org.
There are various perceived motives that form the basis of charitable intent. Three prominent economic models that explore altruism include 1) the public goods model, 2) the warm-glow model and 3) impact philanthropy. Many of our strategies focus on theories discussed in Brian Duncan’s “A theory of impact philanthropy”. The impact philanthropy model states that donors who give primarily to make a difference receive utility when their gift causes a direct change or impact on a social condition. These donors enjoy knowing how their gift directly benefited the cause of their concern. A nonprofit organization can increase its level of contributions by focusing its attention to impact donors. Although there are varying motives for giving, impact donors greatly enjoy the opportunity to target their donation because they appreciate seeing the impact of their giving. Conversely, these same donors do not like funding general operations because the use of their donation does not achieve a “direct” impact. For similar reasons, direct impact donors also prefer donating to smaller nonprofit organizations versus larger organizations because they perceive their donation can make a stronger impact. Nonprofit organizations who wish to target impact donors can create sponsoring agreements that showcase specific areas of need, but at the same time reinforce the general needs of the organization. The time and resources spent on attracting impact donors can be extremely beneficial for a nonprofit. Satisfied impact donors are more likely to remain involved with the organization. With the right approach, a nonprofit can also optimize the relationship, generating a charitable lifecycle of giving. For more information on our donor cultivation strategies, contact email@example.com.