How is your nonprofit doing compared to the top 1% of all nonprofits?
The top 1% is doing well. Most are becoming stronger.
Most of the top 1% built strong relationship with donors, referral sources, advocates, clients, and collaborators. Because they put effort into being well connected, they do better than most, regardless of the economy. In an economy that is very modestly improving, like our current economy, they do well.
Their success is typical of the top 1% of any group. It explains why most years, the gap between the top 1% and the other 99% widens.
Many in the bottom 99% of the nonprofit sector are becoming smaller. Some of them are likely to become so small they will disappear. We hope not. Their services are important. If they disappear, those who need the services will suffer.
The criteria for being in one group or another should include more than a financial analysis. The criteria should include the number of clients served, effectiveness of the services, growth in clients served, donor loyalty, change in donor generosity, the community’s perception of the nonprofit, and the strength of the nonprofit’s relationships.
What does the trend line look like for your nonprofit? Is your nonprofit:
Matching the performance of the top 1%?
Holding its own but not expanding?
Becoming smaller?
How does your community relationship compare with the top 1%?
Relationships are critical to buffering the impact of adverse events and maximizing the benefit of good opportunities. The loyalty of the people we are in relationship with is one reason. Another equally important reason is that our friends provide us with trend alerts. Their alerts help us know when things are changing for better or worse. Forewarning allows us to prepare for the change.
Next Step:
Review all of the relationships your nonprofit currently has
Decide which ones need to be stronger or dropped and what new relationships are needed
Create a plan to cultivate the critical relationships
It is important to remember that a while back, every one of the top 1% were the same size as your organization. They became large, strong, and vital to all of us by building and maintaining strong relationships. When we look at the top 1%, we realize how important relationships are to sustainability.
The development office is the home of the best relationship managers in the nonprofit sector. What is your plan to make your development office one of the top 1%?
