Our society is
an ever-changing system; the US population and its institutions are
increasingly influx, and the leaders of the non-profit sector must be
responsive to these changes to ensure the continued health of their organizations.
As we learned
at the beginning of our course, the state, the market and the non-profit sector
are becoming increasingly similar in the roles they play in our society. The
state is calling upon non-profits to help with service delivery and accomplishing
missions of public good. There is also a proliferation in the number of non-profits,
and the competition between these organizations is mirroring the competition seen
in the for-profit sector. Non-profits are providing services without the stable
tax-base enjoyed by the state, or without the income level of for-profit
organizations, and are depending upon donor contributions to fund their work (Dobkin
Hall).
Economic shifts
are also occurring. In the United States, the middle class is shrinking and
wealth is being concentrated among fewer individuals in society (Temin). There
are drastic changes in the age demographics of the United States, as well as
increases in the racial diversity of the country (Thomas; Robinson). Members of
the largest generation – the Baby Boomers – are reaching retirement age, and
the younger Generations X, Y and Z are moving into the labor force (Williamson).
The internet is also expanding our focus beyond local concerns, and
organizations are learning how to use new technologies to reach their
stakeholders.
These economic
shifts, changes in racial and age demographics, and the rise of globalizing
technologies pose additional challenges for the non-profit sector. Tax-incentives
may have been a motivator for past non-profit contributions, but lower earning
members of society have less to give and are less likely to receive the same
benefits for donating to non-profits. Younger generations are suffering from
the changes in the economy more than older generations (Temin). Because of
their widespread use of technology, these generations may think more nationally
and globally, and overlook the benefits and the needs of local non-profits. With
the demographic changes in the donor base and the increased number of
non-profits, we may see that a shrinking number of contributions are being
divided among more and more organizations.
It is the
responsibility of a non-profit's leadership to be mindful of these demographic
and societal shifts to guide their organization in the increasingly strained non-profit
environment. A useful tool for mindfully addressing obstacles is engaging in a SWOT
analysis for the organization (United Way). Some leadership responses that may
help ameliorate the shifts I have mentions above include increasing the diversity
of staff, and collaborating with other non-profits to resist the additional
pressures being place upon the sector.
Leaders should
also be innovative about how to reach younger generations that have less to
give and that are harder to reach because of the rise of the internet and the
increase in globalization. In order to gain insights into these groups of
potential donors, organizations should focus on increasing the racial and
generational diversity of their staff, hiring younger and racially diverse staff members (Thomas, Robinson). Including diverse perspectives with staff benefits the organization’s effectiveness
(Thomas). Diversity requires a long-term investment of valuing diverse
perspectives, and must be treated like any other business investment (Robinson,
237-238).
In order to
combat the additional pressures being place upon the sector by the state, leaders
my need to create partnerships with other complementary non-profit organizations
to help with the survival of both organizations. If the expectations for
service delivery are increasing, non-profits should cooperate rather than
compete to draw a bottom line in order to create some stability for their funding and workforce within
the sector. If a stand is not made for
stability, then the expectations may become too great and the non-profit sector
may buckle under the pressure.
Work Cited
Dobkin Hall P. “Historical
Perspectives on Nonprofit Organizations in the United States.” The Jossey-Bass
handbook of nonprofit leadership and management. John Wiley & Sons, 2016.
Pg. 3-42.
Robinson, G., Dechant, K.
“Building a Business for Diversity”. Understanding and Managing Diversity.
Prentice Hall. Pg. 228-240.
Temin, P. 2017. “The Vanishing
Middle Class: Prejudice and Power in a Dual Economy.” (https://economics.barnard.edu/sites/default/files/american_dual_economy_intro.pdf)
Thomas D., Ely R. “Making
Differences Matter: A New Paradigm for Managing Diversity”. Understanding
and Managing Diversity. Prentice Hall. Pg.
United Way Dane Country
“Strategic Planning Process.” Provided by Leslie Ann Howard. Pg. 1-7.
Williamson, J.B. and D.M. Watts-Roy. (2009).
Aging boomers, generational equity, and framing the debate over social
security. In Boomer Bust? Economic and Political Issues of the Graying Society,
edited by Robert B. Hudson. Westport,
CT: Greenwood Publishing Group. 153-169.
