The number of nonprofit organizations in the United States has grown significantly, about 30% in the past decade alone. That number includes only those required to file the IRS990, with income exceeding $25,000 annually. We hear the pundits suggesting we’ve reached the “saturation point.” Perhaps we have—or haven’t. The worth and relevance of these organizations will determine whether they survive.
Yes, it is the relevance and value of the organization that should determine its survival. But, say nonprofit leadership, what we do is essential, critical to society’s well-being. That may well be, or not. Americans are exceedingly generous, yet practical people. Those who are generous can and will make a judgment as to a particular organization’s worth or value to society.
That’s why it’s incumbent for the nonprofit organization to focus on demonstrating effectiveness and relevance to potential investors rather than simply issuing continual cries for help and apocalyptic predictions if their programs aren’t funded.
We always seem to find the money to fund the things that matter most. Focus on that.
Larry C. Johnson
Principal
M. E. Grace & Associates
