Tuesday, March 15, 2011

A 150 to 1 Return On Nonprofit Investment

Note: This is a summary of an old NPTtv story about Nonpofit Investment.

Any gambler would be absolutely thrilled at the prospect of a 150 to 1 winning take. It just so happens that every dollar invested in advocacy of policies returned approximately $150 in related benefits and services within a four-state area of the Pacific Northwest. This is according to a study by the National Committee for Responsive Philanthropy, or NCRP. The study placed its focus on homelessness and housing, predatory lending, immigrant rights, healthcare access and a variety of other in Idaho, Montana, Oregon and Washington.
Donors contributed $23.9 million to the 20 organizations studied over a 5 year period, representing 69% of all engagement donations to the associated groups. The purpose of the study was to determine the best ways for building capacity within communities and to demonstrate the value and importance of multi-year funding to charitable organizations. The NCRP was surprised to discover the strong movement building approach amongst the four states in question across issues and constituencies, and the desire to create a brighter future that went beyond a narrow focus on the next event or campaign.
An increased need for partnering in challenging times

Nonprofit organizations have expressed a desire and preference for flexible, multi-year funding, but there is an education curve which still needs to progress during which funders understand to a greater degree the need for these kinds of partnerships, and the value derived from them. In a context where more organizations are competing for a limited amount of funding, the need for collaboration and coalition development between nonprofit groups is becoming increasingly apparent among many organizations. The most effective coalitions are the ones that grow organically from the ground up, as opposed to those that are donor driven.

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