Nonprofit Sustainability Is Important to U.S. Economy

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As an essential part of the U.S. Economy, nonprofits are being hit hard by the current recession. Consider these facts. Nonprofits...

• Employ 7 percent of the American workforce or 14 million people
• Provide essential services so that individuals in need rely less on government assistance
• Contribute 5 percent of the nation's Gross Domestic Product

According to GuideStar's economic survey entitled, "The Effect of the Economy on the Nonprofit Sector: A June 2010 Survey", nonprofits have experienced the following results and more for the first five months of 2010:

• Eight percent of respondents indicated that their organizations were in imminent danger of closing.
• In order to balance budgets, 17 percent of respondents reduced program services, and 11 percent laid off employees.
• More than 60 percent of participants reporting decreased contributions attributed the drop to a decline in both the number of individual donors and the size of their donations.

Nonprofit sustainability is necessary to the health of our nation. Fortunately, help is on the way! Faith and Philanthropy Institute is offering assistance to nonprofits on November 10, 2010. The new $ustain•ability training offers ministry and nonprofit leaders a step-by-step process to examine the ins and outs of understanding development and building a sustainable nonprofit ministry/organization.

To find out more and/or to register for this important training session, click here.

Too Much Good Even For A Do-Gooder?

I have been accused of being a do-gooder. I fully agree. I believe that we can make a profit and make a difference. Yet, Panera Bread's (aka St. Louis Bread Company) new nonprofit restaurant may be too much good even for me.

I wrote in a previous post that I love the atmosphere at Panera Bread. I generally go when I need a change of work scenery with my laptop in tow. The food is delicious. They also donate unsold food to local charities and food banks. I like that, too. But I'm not sure I agree with their new nonprofit restaurant experiment. 

Patrons are allowed to donate what they want for meals. The suggested prices are listed, but you are not required to pay it. How can an organization budget to ensure it has operating cash flow using this model? I guess that Panera Bread doesn't have to worry too much about that because profits are up 48 per cent in the first quarter of 2010 over first quarter last year. Other restaurants might not be able to take the risk, especially in this economy.

What's the point really? Ron Shaich, the company's former CEO and current chairman of the board indicated that it is not really charity, but a test in human responsibility. I suppose if the concept elevates individual character and true community, it will be well worth it.

I will probably frequent my favorite Panera Bread even more because I like the spirit of the organization. However, this do-gooder believes that Panera Bread could do more good teaching nonprofits how to create sustainable and profitable social ventures that employ people in their respective communities than to become one themselves. What do you think?

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New Service Connects Donors, Nonprofits, and Foundations in Dallas

Communities Foundation of Texas is launching a new service that bridges donors to nonprofits and nonprofits to foundations in Dallas, Texas. It is called Donor Bridge. The official site will be available on May 20, 2009. You can read more about it here.

Twitter and Nonprofits

Business Write Now! began tweeting last week. After I signed up, I tried to convince Allison Whitehead, Founder and Executive Director of Alley's House to do the same. I thought it would be a great micro-blogging tool that could be used to tell the world about the wonderful work being done with teen mothers in Dallas.

I believe that nonprofits should embrace Twitter because it is a great marketing tool. In addition, nonproifts should explore fundraising opportunities on Twitter. Here is a great blog post about Twitter and fundraising.

Be sure to follow Business Write Now on Twitter!

Update on Wednesday, May 13, 2009 at 07:38AM by Audrey Wyatt, Startup Strategist

I found a simple tool called Tipjoy for fundraising via twitter. Grab a twitter widget and goal thermometer to put on your site.  Then, use your blog and twitter to promote your campaign. Check Tipjoy out now!