By Callais Team
What does the future of Nonprofit look like?
Venture funding has typically been limited in the nonprofit sector, but it has nearly doubled in the last five years. Still, 40% of nonprofits have only 1 – 6 months of cash reserves. Accelerated by the pandemic, a rise in corporate social responsibility (CSR), and socially conscious buyers, the industry has had to mold to the changing of times. No longer is it sustainable to be in a state of flux, constantly fundraising to continue your mission. Savvy nonprofits are becoming tech-forward entrepreneurs to adjust to the newest landscape; moving away from a fundraising model to a more structured growth strategy. Grantors are beginning to focus their attention on an organizations financial strength to scale impact.
Helpful resources are available to support this new platform structure and improve future success rates. One in particular is Resilia, a venture-backed company supporting nonprofits with tools, trainings, and resources to help nonprofits raise funds, maximize impact, and build capacity.
Capacity building is a holistic, collaborative approach to the nonprofit world. And it works. Studies have shown that there is “clear evidence that capacity-building efforts increase capacity in each of five critical areas.”: (1) nonprofit leadership, (2) programs, (3) organization, (4) revenue, and (5) community engagement.
What is capacity building? Simply put, it’s making nonprofits more viable over the long term through collaboration, accountability, and support from grantors. Rather than just providing monetary assistance, grantors proactively track performance, strategize, collaborate, and support operations. Capacity-building initiatives improve the chances that nonprofits are in a sound financial position to scale their long-term mission goals.
Nonprofits need to be prepared for the unpredictable future. With the rise in social activism, it is clear that nonprofits and grantors fuel our recovery initiatives in communities. Collective action between nonprofits around shared interests can have a larger impact on supporting communities than we know. By collaborating on shared efforts, organizations can have a stronger impact in their community while grantors serve as support structures and connectors.
Resilia’s philanthropy report covers these nonprofit trends in depth.
Are you a startup founder in the Gulf Coast? It’s never too early to reach out to us, even if it’s early in your fundraising process. We know that companies take time to turn a profit and find their product market fit. But we would love to hear from you.