Posted by: endithinks | October 21, 2010

Guest Post on The SocioCapitalist

This is a repost of an article I wrote that was published by

Why Nonprofits are Failing

Nonprofits rely on the philanthropy of others to sustain their viability.  In economic downturns they see shrinkage of their budgets as less people are able or willing to give funds and grants become more fiercely competitive.  Nonprofits that do not adjust their financial plans to overcome the tightening of belts will lose their valuable staff, services and will fail in their missions.  Nonprofits need to look to the business world as a model for financial security.

The business world has a model of financial security that is independent from the emotional attachments that fuel most of philanthropic giving.  The business model includes branding, marketing, and providing a service or product that is either demanded or has had demand created.  The nonprofit world has a financial system that is based on giving, grants and providing services.  Non Profits need to change their financial plans upside down.

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