What Nonprofits Need from Funders to Continue to Grow

“Nonprofit Must Haves” Blog Series: What Nonprofits Need from Funders to Continue to Grow

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According to the Stanford Social Innovation Review’s Nonprofit Finance Fund’s State of the Sector Survey, more than half – 52% of organizations around the United States have reported being unable to meet demand. This number is substantially worse for nonprofits serving poor communities with over 2/3 of that sector being unable to keep up. At this point, we are unable to maintain the social safety net for the communities that need it most because our nation’s organizations do not have the support they need to fulfill their mission.

“3 Must Haves” for Nonprofits.


In the first few years, it’s widely known that nonprofits do not break even, or come anywhere close to it. Instead, as time passes, they keep trying to grow and accomplish more with less resources and less man power. Organizations around the nation are struggling to achieve their missions, missions that are crucial for the sustainability of our nation. Without the proper funding support, nonprofit organizations cannot successfully make changes and do what they are designed to do. As the nonprofit industry is changing, nonprofits are changing the way they spend money and are raising money in order to meet the demands of their communities with fewer resources.


As we continue to see that donor support is harder to come by, it’s more crucial than ever that nonprofits are focusing on donor relationship management. Once a nonprofit has obtained donor support, donor retention is a big issue for organizations. Keeping up engagement and the conversation with donors is difficult to do for organizations that do not have the necessary communication tools to automate and personalize that relationship. Limited staff and budgets make it difficult for nonprofits to keep donors happy, which means they lower the chances of creating ongoing financial support from their one-time donors.


It’s no secret that nonprofits are working to stay afloat each month. Half of nonprofits do not have enough money to cover more than 30 days of operation. While nonprofits are often dissuaded to keep too much on reserve because it might make donors suspicious of an organization’s motives, in the end this is detrimental thinking. Proper financial health for organizations is critical, and that includes keeping money on reserve.


source: Stanford Social Innovation Review