Strategic Inflection?
February 12th, 2009
The Aspen Institute reports that the non profit sector grew 54% in revenues between 1995 and 2005…a period when GDP growth was 34%. That’s a rise in revenues of nearly 160% of the GDP…governmental sources, charitable contributions, fees or charges and other earned income. So here we are in what looks a lot like 1929; and all sources of funds are under duress. Makes me wonder if the decline is likely to be as comparatively more robust than the climb, and in any event, what kind of “demand bid” this places on the sector’s leadership. Any thoughts? I have some but hey…this is a conversation, right?
February 16th, 2009 at 5:26 pm
I think the answer is “likely.” Given that much funding of the nonprofit sector comes from the “surplus” of society the hit to the nonprofit sector in the near term is going to be intense.
That said, many nonprofits (the better ones anyway) I am working with are seeing this downturn as a great opportunity to clarify scope of their work product(s) and also address personnel issues that would not have been addressed otherwise. Opportunity in the crisis.
A bumpy road to say the least though.