Nonprofits Grow Up: Partnering with Professionals for Bigger Results

With an improving economy and the benefits of evolving technology driving prosperity at the turn of the financial year, nonprofits could be forgiven for thinking that they were about to enter an period of unprecedented growth. Indeed, the Nonprofit Research Collaborative suggest that 7 out of 10 nonprofits are expecting to exceed their fundraising exploits of the previous year, as disposable income rises and integrated marketing campaigns reach out to a wider audience of potential donors.

While many nonprofits are expecting to raise an increased level of funding, however, there are question marks over their ability to maximize this revenue. A recent study by the The Center on Philanthropy at Indiana University revealed that just 6.9 percent of nonprofit financial management professionals considered themselves to be experts in their field, while a further 75 percent of charitable organizations admitted to neglecting the need to plan or make long term forecasts based on external economic factors.

Now, while nonprofits are usually measured on their fundraising proficiency, it is how this capital is used that determines the success of a specific cause or project. This has been recognized by both the federal government and firms within the private sector, with leading professional services group Deloitte LLP recently pledging $60 million in pro bono services to various nonprofit organizations. Announced at the White House forum on women and the economy, the investment will help nonprofits to address their most significant business challenges and help them to develop a more efficient and transparent operational model.

In assisting nonprofits such as the Women’s Initiative to develop strategic planning skills and greater financial structure, Deloitte LLP has now invested more than $100 million into maximizing charitable ventures and the impact of their causes. It is also plays a part in the Billion + Change project, which is a national campaign driven towards utilizing professional services and skills in order to effect social change. By placing a focus on developing infrastructure and profitable business models, nonprofits can strive to have a greater impact within their local communities and on society as a whole.

In terms of adopting professional services and techniques to maximize their revenue, Save the Children stands as an example to all aspiring nonprofits. Not only did it record a turnover of more than $445 million during 2010, but the organization is also renowned for its efficient distribution of donor funds and resources. To achieve this, it releases independently audited financial statements that reveal exactly how their funds have been spent, so that contributors can rest assured that their money is being invested in ground level programs rather than management salaries or administration costs.

National nonprofit research organization The Brookings Institution has itself benefited from professional guidance and partnership, and its alliance with Wall Street giant J.P Morgan Chase created the $10 million Global Cities Initiative. The project was developed to assist more than 100 community leaders throughout the U.S. in maximizing their resources and driving regional growth, with a view to creating jobs and transferring professional expertise into local ventures. By introducing nonprofit and civic leaders to innovative business practices, thousands of charitable organizations now have the potential to develop more sustainable long term projects.

In many ways, the contemporary worlds of technology and business are geared towards the development of professional nonprofits. When you consider how social media and open source  technology have narrowed the gap between nonprofits and for-profit businesses, in conjunction with the enhanced level of social responsibility being showcased by leading brands, then it stands to reason that charitable organizations should benefit from professional services and knowledge. This combination of nonprofit causes and for-profit methods is key to the success of charities in 2012, both in terms of effecting sustainable social change and investing their donors money efficiently.