The Giving Mindset

As a sector, we want to make a difference, to do good. However, we currently define success by our activities—what we donate, how we serve, and the ways in which we provide. As a result, the majority of funders and nonprofits use thinking or behavior that undermines their ability to be high-performing, results-oriented givers and service providers. We have an enormous opportunity to shift our mindset to define success in terms of impact, or the change we can effect in our communities.

A Fragmented Landscape

Utah’s social sector is fragmented, driven by a pervasive do-it-yourself (DIY) approach and a dearth of information about what others are doing. The dynamic manifests in the rate of growth in number of nonprofit organizations in the state, and in how nonprofits and funders alike typically operate in an isolated, siloed fashion. While innovation and individual efforts are valuable in achieving impact, our go-it-alone, DIY mentality is not conducive to maximizing the impact we can have.

Approaches to Funding

At a high level, we see a mismatch between projected nonprofit budget needs and funder budget availability over the next three years, and questions around availability of federal funding further fuel uncertainty for nonprofits as they look ahead. In addition, among many funders there is a heavy and unhealthy emphasis on restricted giving, which limits nonprofits’ ability to invest in their organizations to deliver results. Finally, there is a strong tradition of relationship-driven decision-making amongst funders. We have an opportunity to rethink the funding paradigm in ways that will provide stability in coming years.

Effective Communication

Nonprofits are not shy, nor should they be, about clamoring for what they need, which typically involves more resources to pursue their mission. However, funders repeatedly report that they struggle to understand the basics of who the nonprofit serves, how the money or other resources will create an impact, and why a proposed approach is an appropriate solution to a community challenge. At the same time, nonprofit leaders note how difficult it often is to understand a funder’s priorities and how to effectively engage with the funder.

Understanding the Evidence

Measurement that aids in understanding progress toward outcomes is a stated priority for nonprofits and funders. However, there is a gap between stated priorities and actual practice, representing a valuable opportunity for funders and the organizations they support to more effectively track and use data. Barriers to effective use of data include limited staff time and expertise, inadequate tools, and lack of support from leadership.

Nailing the Fundamentals

As in the private and public sectors, capable leadership and management, effective use of data, standard operating procedures and specialized skills and experience are essential for success in the social sector. In Utah, as elsewhere, money and time devoted to implementing systems, gathering data, building capacity, or hiring expertise is too often frowned upon. With nonprofits often operating on a shoestring budget and a heavy reliance on passionate but inexperienced volunteers, investments in fundamental capabilities and systems are typically not priorities. We have an opportunity to solidify the foundation of Utah’s social sector to enable us to achieve the results we collectively seek.