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Understanding Sustainability Trends Errol Goetsch [email protected] www.xmentors.us

NPO Sustainability Trends

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Page 1: NPO Sustainability Trends

Understanding Sustainability Trends

Errol [email protected]

www.xmentors.us

Page 2: NPO Sustainability Trends

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NPO PerformanceInitially well-run, in regulated environment, then heavily funded from abroad with weak auditing, with little investment in institutional capacity, loss of talent and diversion of money since 1994

Donor ExpectationsInitially naïve, trusting NPO’s will deliver; impose few reporting and proof requirements. Sullivan Code made CSI cosmetic; no investment in “back-office” design, funding field-office delivery instead. Increasing donor

frustration and NGO anxiety at cross-over

Falling NGO performance

Rising donor expectations

Rising social needs

Falling NGO capacity

70’s 80’s 90’s 00’s

Key trends in development ….(1) Donor Fatigue Donor expectations rising when NPO performance is falling

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Key trends in development ….(2) Downspend Donors hold back when NGO’s can’t deliver

NPO PerformanceInitially well-run, in regulated environment, then heavily funded from abroad with weak auditing, with little investment in institutional capacity, loss of talent and diversion of money since 1994

Richer NGO’sHave the resources to market themselves and maintain relationships with donors.

Donors struggle to see visibility and impact for their funds

Poorer NGO’s market themselves poorly

Richer NGO’s market themselves well

Income

Number

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Key trends in development ….(3) Flight to Quality Donors prefer NGO’s who promise visibility and show impact

NPO PerformanceInitially well-run, in regulated environment, then heavily funded from abroad with weak auditing, with little investment in institutional capacity, loss of talent and diversion of money since 1994

Richer NGO’sHave the resources to market themselves and maintain relationships with donors.

Donors shift to richer NGO’s

Poorer NGO’s market themselves poorly

Richer NGO’s market themselves well

Income

Number