NPO Sustainability Trends
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(1) Donor fatigue is occurring as donor expectations rise while NGO performance is falling. Initially, donors had naive and trusting expectations but now impose more reporting and proof requirements. (2) Donors are holding back funds when NGOs cannot demonstrate visibility and impact of past funds. Richer NGOs market themselves better to maintain donor relationships. (3) Donors now prefer NGOs that can promise visibility and show impact, so funding is shifting to richer NGOs that can better market themselves.
NPO Sustainability Trends
- 1. Understanding Sustainability Trends Errol Goetsch errol@xe4.org www.xmentors.us
- 2. Key trends in development . (1) Donor Fatigue Donor expectations rising when NPO performance is falling Donor Expectations Falling NGO Rising donor Initially na誰ve, capacity expectations trusting NPOs will deliver; impose few reporting and proof requirements. Sullivan Code made CSI cosmetic; no investment in back-office design, funding Increasing donor field-office delivery instead. frustration and NPO Performance NGO anxiety at Initially well-run, cross-over in regulated environment, then heavily funded from abroad with weak auditing, with little investment in institutional capacity, loss of talent and diversion Rising social Falling NGO of money since 1994 needs performance 70s 80s 90s 00s 2
- 3. Key trends in development . (2) Downspend Donors hold back when NGOs cant deliver Richer NGOs Richer NGOs Have the resources to market market themselves and themselves well maintain relationships with donors. Income Donors struggle to see visibility and NPO Performance impact for their Initially well-run, funds in regulated environment, then heavily funded from abroad with weak auditing, with little investment in institutional capacity, loss of talent and diversion Poorer NGOs market of money since 1994 themselves poorly Number 3
- 4. Key trends in development . (3) Flight to Quality Donors prefer NGOs who promise visibility and show impact Richer NGOs Richer NGOs Have the resources to market market themselves and themselves well maintain relationships with donors. Income Donors shift to richer NGOs NPO Performance Initially well-run, in regulated environment, then heavily funded from abroad with weak auditing, with little investment in institutional capacity, loss of talent and diversion Poorer NGOs market of money since 1994 themselves poorly Number 4