Financing, not fundraising has become something of a battle cry for many in the nonprofit world. Developing alternative ways of financing nonprofit work is important to the future health of the sector. And that has become even more obvious as a result of the Great Recession.
Recently, a report from the Nonprofit Finance Fund (NFF) revealed that nonprofits that raise growth capital were able to increase services to their communities by almost four times and increase organizational revenue by 170%.
I asked Nell Edgington, an expert on philanthropic equity at Social Velocity, to analyze the report and comment. She did that and even more.
Comments
Love this concept! Am sharing it with a number of clients, and couldn’t agree more about the “Catch 22″ nonprofits find themselves in when all they can raise is program funds but nothing to build the capacity to raise those funds. New programs pull existing staff — including the E.D. — away from fundraising. At the end of the grant/gift, the nonprofits has no resources to continue the program, nor have they spent any time to develop them. So, they’re back to square one. This is no way to grow or to build a sustainable organization.
Thanks so much for this post.