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The Nonprofit Sector Continues To Grow… So Does The Competition For Charitable Dollars

On March 31, the Chronicle of Philanthropy reported that the IRS granted 501 (c) (3) designations to 79,545 religious and charitable organizations last year.  Also in 2016 there were 1.8 million tax-exempt organizations, which is up from 1.7 million the previous year according to the IRS.

The nonprofit sector is long overdue for some consolidation, but as we know, most of these charities are small.  At some point we have to look at economies of scale and find ways to work together.  Last year one of our clients merged with a larger organization, thus increasing their capacity while reducing overall operating costs.  That is good for those they serve.  It also gave clarity to a lot of donors who were being asked to support both organizations.

Every year the competition for the charitable dollar continues to increase.  If you are a fundraiser out in the community talking to donors, they will tell you how many requests they are getting.  This creates donor fatigue.  There is great wealth in this country; however, all across the country — wherever I go — the same people and entities are being asked to do more and more.

Be cognizant in talking with your donors that there are a lot of people who would like to get their support.  What makes your organization stand out above everyone else?  What is compelling about your story?

Written by Paul D’Alessandro

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