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Trends in the Nonprofit Sector March 6, 2020 Trends in the Nonprofit Sector March 6, 2020 1 Trends in the Nonprofit Sector The Nonprofit Sector is in a Difficult Spot Shortfalls in New York State Funding is causing budget cuts to nonprofit organizations. Furthermore, other government municipalities are feeling the pinch which is creating further cutbacks and funding delays With the change in the tax law, donations are down 1.1% (3.4% adjusted for inflation). The 10% drop in the market last week didn’t help either. The need for nonprofit services is on the rise, as changing regulations and government pull-backs are creating more need within the populations nonprofits serve Government agencies have admitted that they are looking for consolidation in the nonprofit marketplace Movement to managed care is going to result in the need for enhanced collaboration and consolidation in the marketplace Government audits are on the rise, with an eye towards recovery Closer scrutiny and limitations on administrative spending 2 Trends in the Nonprofit Sector Technology Trends Using Technology to Increase Efficiency and Effectiveness More reliance on software over manual processing Integration of software applications Look at all of your processes and determine how you can integrate technology Service delivery and tracking Case work Volunteer management Consider the cloud for wider access Enhanced Mobile Apps (increase access to services) Human augmentation/Augmented reality 3 Trends in the Nonprofit Sector Technology Trends Increased consumer-oriented services Where and when needed Telemedicine, on-line learning, casework through texting, etc Increased use of virtual assistance Personalized music libraries for dementia patients Call for emergency for seniors Enhanced need for cyber security 4 Trends in the Nonprofit Sector Fundraising Trends New fundraising products hitting the market for the nonprofit sector Stratus Live (Stratuslive.com) – A complete nonprofit donor engagement and constituent relationship management solution Microsoft – Dynamics 365 Nonprofit Accelerator & Common Data Model for Nonprofits In November, GoFundMe launched GoFundMe Charity Donate button that can be integrated into websites Heavier Reliance on virtual assistance By the end of 2020, 50% of all on-line searches will be performed with a voice search Hundreds of nonprofits offer Alexa Donations (pay.amazon.com/alexadonations) Alexa, make a donation to Salvation Army, USA Organization needs to be voice search ready (go.everyaction.com) 5 Trends in the Nonprofit Sector Forget Charity Navigator – Impact matters Impactmatters.org Helps donors find the most cost-effective nonprofits in 8 areas (Veterans, Clean Water, Homelessness, Health, Poverty, Hunger, Education, and Climate Change) Does impact really equal cost Need to create social partnerships with the for-profit sector Take time to see what makes them tick Two-way street Donate the change Citizen Philanthropy Automatic giving (up 18.37%) Convey impact of donated dollars Facebook events (average gift in 2019 was $31) 81% of the US population is on Facebook Instagram – in 2019 enabled nonprofits to add a donate button to their profile TikTok for good https://www.tiktok.com/forgood 6 Trends in the Nonprofit Sector Increased smart phone giving (24% of all giving) 42% of all e-mails are opened on mobile or tablets – is your messaging mobile friendly Inspired Gifts https://www.unicef.org.au/give-a-gift Blockchain Allows nonprofits to accept cryptocurrency donations (look into crypto donation platforms) Digital Collectibles (Auctioning) –e.g. CryptoKitty Utilizing computer downtime (Major corps) to mine cryptocurrencies for charity https://www.cudodonate.com/ Could be used to track dollars allowing donors to get automated messages as to how their funds are being used within an organization. “I just wanted to once again thank you, today $10,000 of your donation helped feed 60,000 hungry Long Islanders.” 7 Trends in the Nonprofit Sector Marketing Personalize your Marketing Efforts Integrated social media Integrate messaging and branding Coordinated efforts between development, marketing, and program Need to use storytelling to connect with your supporters Make supporters feel like they are building a personal relationship Pull them into your organization’s programs Targeted e-mails Videos Make them feel part of your mission Create nonprofit podcasts 8 Trends in the Nonprofit Sector The Election Effect Election years create lots of discussion surrounding various important issues. If these are your issues, use the press about these issues to get your organization press and followers Open up communication with your politicians – more willing to talk in an election year 9 Trends in the Nonprofit Sector Employment Issues Highly competitive marketplace Unemployment is anticipated to stay low Increase in flexible work environments Number one item employees are looking for Telecommuting/work from home Understanding employee satisfaction PEO’s Outsourced services Shared services through collaboration 10 Thanks! Ken Cerini, CPA, CFP, FABFA [email protected] 631-582-1600 x203 11 ADAM J.BRIER SALES EXECUTIVE | LI |Westchester |CT 14 $1.1 Billion ERISA Fines – 76% Increase 76% 15% Business Time Cut Costs Owner Strategic 70% EEs unengaged CFO Trends 2017 CFO Magazine 11/2016 Top CFO concerns have historically Although they might not like to admit it, been challenges like consolidating nine in ten finance departments say finances, dealingCFOs with the saycosts of having they’rethe still ability using Excel to as part of their regulation, and containing costs financial planning and budgeting overall, accordingpull to Cohen. data Now, from multiplesystem. “Resource sources constraints” is the respondents say they are number one reason for inefficiencies, according to the survey respondents, looking for waysinto to a access single reportfollowed would by “outdated processes,” and data from across the “insufficient tools.” company. greatly increase productivity, along with better90% processes of CFOs surveyed say theyto should be doing more with the financial and operations mine data and improveddata they have at hand. dashboards and visualizations “Each quarter we ask CFOs to rank their top concerns. The No.1 concern this quarter is hiring and retaining qualified employees. We’ve been doing the surveys 21 years…That’s the first time that’s been the No.1 concern. How CFOs Are Feeling About the Economy John Graham, Duke University, 6/19/2017 HR Center of Excellence Our Research (Over 2,700 Organizations Researched) Paycor Survey 3rd Party Survey Aggregated Interviews Industry (Paycor Commissioned) Customer Data Experts 19 FOCUS IMPACT Compromise ✓ Hire The Right Talent ✓ Optimize Benefit Plans Recruiting Speed To Hire Benefits Employee Retention ✓ Decrease Turnover ✓ Engagement Reducing Overall Labor 70% Unengaged Costs – OT + Benefits Labor Costs Min Wage Increase Six Pillars of HR Excellence 21 HR MORE than Admin ✓ No longer considered “just an admin position.” ✓ Strong HR team will actually protect an organization's bottom line Recruiting HR’s most important and toughest challenge. 23 Recruiting Key Metrics Average Time to Fill Average Cost per Hire Employee Referral Rate Total # of Days Job is Open Total Internal/External Total # of Jobs Open % Hired from Referrals Costs All Candidates Hired Total Candidates Hired Average = 42 Days* *(SHRM) Average = $4,129 24 *(SHRM) Recruiting HR’s most important and toughest challenge. • • • • • • • • • • • • • • • • • • • Paycor Applicant Tracking | Recruiting 26 The candidate experience plays a major role in whether a job seeker will complete an Companies with >45 screening questions lose 88.7% of applicants application. during the process Nearly half of all respondents reported never receiving an update Less than 5 on the status of their application mins to apply = 365% more 27% of applicants with bad applicants experiences said they’d discourage people from applying to that employer. Sources: 1. Newton Software via Talent Board Low Candidate Experience Rates Prevalent Amongst Job Applicants Benefits What (really) motivates your employees? 28 Benefits Advisor 29 Labor Costs How are you managing your company’s greatest expense? 30 31 People Management HR’s biggest challenges come from managing people. 32 People Management Four Key Areas of Focus Key Metric = Turnover Performance Learning & Day-to-day Manager & Onboarding Management Development Employee Interactions 34 Employee Experience 35 THANK YOU.
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