COVER STORY
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O.C. nonprofits, continued ...Published: October 01, 2011
Despite the soaring demand and the need for services, there are signs
that three years after the Wall Street meltdown, Orange County’s
nonprofit community has come to grips with the “new norm.” Donors and
nonprofit operators alike say there is an honesty and urgency to their
actions that portend good things for the county’s ability in the long
term to take better care of its homeless, disenfranchised and
unemployed.
From “donor” to “investor”
Donors
are still giving, though more selectively and not as much. They are
asking more questions about what they are contributing to, whether it’s
cash or in-kind goods and services. The Google age has changed the
giving game, and donors now know more about a nonprofit then ever
before. Because of the Internet and social media, prospective donors
often have made up their minds before they are even asked to give or
volunteer. Donors today also want a different return for their
“investment.” Particularly younger donors, regardless of the amount of
their contributions, want assurances that their giving will make a
qualitative difference in the lives of the end recipients.
“It’s
not about how many syringes will my donation buy, but whether that
medicine will truly improve the health and happiness of that individual
or targeted population,” says Freeman, senior managing director of First
Foundation Advisors. “That’s what donors are increasingly asking for.
They want a stake in the outcome; they view themselves as more than just
donors. They see themselves as change agents.”
Daniel McQuaid, CEO and president of OneOC,
a major umbrella organization training, assisting and connecting
individual nonprofit agencies in Orange County, agrees: “The most
significant phenomenon is donor savviness. Donors are asking more
specific, often tough, questions. ‘Giving’ is moving much more toward
‘investing.’”
The changing “business” model
Nonprofits
are scrambling to adapt. Taking a page from the for-profit playbook,
nonprofit executives and boards have dramatically overhauled their
vocabulary and business models. Listen, and you hear words such as
“efficiency,” “consolidation,” “collaboration,” “mission focus” and
“priority setting.” And nonprofit chiefs have added new ones like
“return on investment,” “social media” and “relationship
reconstruction.” These concepts are not new. But many nonprofits
acknowledge that they have not always embraced or been faithful to these
strategies as road maps to grow and sustain their organizations. In the
face of today’s economic turbulence, many have no choice but to change
operations.
Shelley Hoss, a 24-year veteran of non-profit
work, believes growing numbers of Orange County nonprofits “get it” and
should be applauded for rising to the challenge.
“Our local
nonprofit community has responded with such resilience and intellect to
the extraordinary challenges of the last three years that we should be
standing and cheering every time they walk into the room,” says Hoss,
whose foundation oversees more than $29 million in annual private
contributions. “Nonprofits took this challenge very personally. In many
ways, they are stronger already.”
The hard look into the
mirror, as donations were frozen or evaporated altogether in the
deepening recession, changed behavior among nonprofits large and small.
Irvine-based Human Options
laid off nearly 14 percent of its staff, a move that reduced some
programs but financially stabilized the 30-year-old domestic violence
agency. In Costa Mesa, Share Our Selves
(SOS) took over a similar, but smaller group to streamline and
strengthen its delivery of “safety net” services to poor and low-income
clients.
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10 Questions for Max Gardner
President & CEO, United Way Orange County
| O.C. nonprofits, continued ...Published: October 01, 2011 |
From “donor” to “investor”
Donors are still giving, though more selectively and not as much. They are asking more questions about what they are contributing to, whether it’s cash or in-kind goods and services. The Google age has changed the giving game, and donors now know more about a nonprofit then ever before. Because of the Internet and social media, prospective donors often have made up their minds before they are even asked to give or volunteer. Donors today also want a different return for their “investment.” Particularly younger donors, regardless of the amount of their contributions, want assurances that their giving will make a qualitative difference in the lives of the end recipients.
“It’s not about how many syringes will my donation buy, but whether that medicine will truly improve the health and happiness of that individual or targeted population,” says Freeman, senior managing director of First Foundation Advisors. “That’s what donors are increasingly asking for. They want a stake in the outcome; they view themselves as more than just donors. They see themselves as change agents.”
Daniel McQuaid, CEO and president of OneOC, a major umbrella organization training, assisting and connecting individual nonprofit agencies in Orange County, agrees: “The most significant phenomenon is donor savviness. Donors are asking more specific, often tough, questions. ‘Giving’ is moving much more toward ‘investing.’”
The changing “business” model
Nonprofits are scrambling to adapt. Taking a page from the for-profit playbook, nonprofit executives and boards have dramatically overhauled their vocabulary and business models. Listen, and you hear words such as “efficiency,” “consolidation,” “collaboration,” “mission focus” and “priority setting.” And nonprofit chiefs have added new ones like “return on investment,” “social media” and “relationship reconstruction.” These concepts are not new. But many nonprofits acknowledge that they have not always embraced or been faithful to these strategies as road maps to grow and sustain their organizations. In the face of today’s economic turbulence, many have no choice but to change operations.
Shelley Hoss, a 24-year veteran of non-profit work, believes growing numbers of Orange County nonprofits “get it” and should be applauded for rising to the challenge.
“Our local nonprofit community has responded with such resilience and intellect to the extraordinary challenges of the last three years that we should be standing and cheering every time they walk into the room,” says Hoss, whose foundation oversees more than $29 million in annual private contributions. “Nonprofits took this challenge very personally. In many ways, they are stronger already.”
The hard look into the mirror, as donations were frozen or evaporated altogether in the deepening recession, changed behavior among nonprofits large and small. Irvine-based Human Options laid off nearly 14 percent of its staff, a move that reduced some programs but financially stabilized the 30-year-old domestic violence agency. In Costa Mesa, Share Our Selves (SOS) took over a similar, but smaller group to streamline and strengthen its delivery of “safety net” services to poor and low-income clients.
1 | 2 | 3 | 4 | 5 | 6
10 Questions for Max Gardner
President & CEO, United Way Orange County
