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