The myth that nonprofits are not a business

Cause to Communicate is located in Florida so we thought it might be interesting to examine the nonprofit sector in our state. With the help of The Florida Philanthropic Network’s 2008 study on the Florida Nonprofit Sector, we’re going to make the case that this is a vital business industry to the economic well-being of our state.

The nonprofit industry is the state’s fourth largest employer. In 2005 there were 17,814 nonprofits including 4,128 private foundations. In 2005, the nonprofits of Florida employed nearly 630,000 workers which represents one out of every 20 workers in the state. Also as of 2005, the industry generated $48.1 billion in revenues, spent $44.5 billion including over $14.6 billion in wages and compensation and generated at least $300 million of sales tax revenues for Florida governments.

Florida does lag behind the rest of the U.S. in average charitable contribution per $1000 of income as well as volunteering rate. It is not clear if this is a function of the fact that the state has a disproportionately high number of senior citizens or that its median wage is 8% below the U.S. average even though the cost of living is higher than the U.S. average.

Whatever you believe, the nonprofit industry is one of the fastest growing employment sectors in the state and contributes to the quality of life through both good works and financial value.

So what do they really think?

I’m working on a project for a nonprofit that involves research. YEAH! So many nonprofits don’t do research. They say they can’t afford it. But the reality is that nonprofits can’t afford NOT to do it. Research allows the client to be more focused in its marketing efforts and to use language and talking points that resonate with the target audience. Plus, it means the client isn’t focused on their opinion but the opinion of those they are trying to influence.

What’s interesting to me, and I hope, ultimately to my nonprofit client, is that a lot of people don’t really hear the message. Yes, they know somewhere in the back of their minds that nonprofits do good work, but they are often too busy to care. Only when they are personally in need of a service will they pay attention to the message.

The other issue also seems to be that nonprofits don’t realize the value of good marketing/public relations. That’s another service nonprofits say is unaffordable but it seems imperative that if you want to get your message out so people will pay attention you need professionals to do it.

Tardy for the party cont.

Glad to see you stopped by again. Obviously you need to brush up on proper party etiquette or you think I’m a genius. Either way, I like the way you’re thinking.

#2: “Plus one” does not mean “bring your entire family.”

Free food or open bar does not constitute reasons for sucking the host dry. This isn’t revenge against Goldilocks; you don’t get to bring Papa Bear, Mama Bear and Baby Bear to eat all the porridge. The only exception is when otherwise specified by the host or event organizer. Know your limits. If the event is a fundraiser, by all means buy tickets for the entire family including Grandpa and Grandma Bear… the more the merrier! However, if the event is closed to the public and you have been one of the few to receive an invite, don’t get overzealous and assume the invite was for you and the whole Bear clan. Chances are the event organizers have a certain number of expected attendees based on the guest list and throwing an extra 2-3 people in the mix might not jive with the plan, especially if other guests commit the same party foul.

Tune in tomorrow for tip #3: The early bird gets the worm and cheaper tickets!

Leveraging dollars

The current economic downturn has affected everything from government revenues to nonprofit donations. With demand for services on all fronts up but revenues down, what’s an organization to do? Actually, there may be a solution in governments and nonprofits working together to leverage dollars and provide services.

An example of a great public-private partnership is the work of LISC (Local Initiative Support Corporation). LISC works nationally to garner funding from foundations, individual philanthropists and through government grants. It then sends that money to its local LISC organizations, such as LISC Jacksonville. LISC Jacksonville in turn raises funds through grants, individual philanthropy and city government support. So, what was a local $500,000 donation is leveraged to create a pot of over $12 million to help neighbors create sustainable communities in underserved neighborhoods. Wow, any nonprofit would love to “grow” money like that.

So while money doesn’t grow on trees, it can be made to grow into a substantial pot that will have a better chance of achieving goals through leveraging a public-private partnership.