Home > Uncategorized > The Nonprofit Funding Model Is Broken, At Least From Government Funding Sources . . .

The Nonprofit Funding Model Is Broken, At Least From Government Funding Sources . . .

December 13, 2011

I saw this in The Chronicle of Philanthropy, December 8, 2011: “State Budget Losses Expected to Cause Problems for Nonprofits Through 2013. . . . Despite signs the economy is improving, nonprofits that rely on state money should brace for at least two more years of tough times, a new report warns.” The article also provided suggestions to help nonprofits handle this financial crisis and to be better prepared for the next.

In a recent post on the Linkedin group 10,000 Partnerships: For the sake of others, I posted the following comment:

“David Tate, Esq. • Bruce, your reference to “increasing services to the underserved” caught my attention for two reasons: (1) I haven’t heard much lately about “increasing” services – more like doing everything to keep services at current levels or not decrease; and (2) the traditional nonprofit charity funding model doesn’t seem to make sense in an economic downturn – where government and private resource budgets have decreased, and the numbers of people who really need help have increased. A sustainable model needs to be developed, for good times and bad, and, it seems to me, there is need for a platform or resource where people can go to more easily match resources with nonprofit needs. And, have you ever heard of a forum where people in-the-know discuss workable, sustainable models for funding services to the poor now and in the future – is there anything like that?”

As a nonprofit board member, I am also looking for better answers to reliable funding sustainability.

Dave Tate

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