State of the Nonprofit Sector: Remainder of 2013

Good morning, DonorDreams blog subscribers. I thought I’d give you a day off from my random non-profit and fundraising thoughts by offering you an awesome guest post by Ashley Halligan. She is a managing editor at Austin-based Software Advice and a very talented freelance features writer. Check out her book project on Facebook:  Enjoy!

State of the Nonprofit Sector: Remainder of 2013
By: Ashley Halligan

state ofSix weeks into the new year and last year’s reports are coming to surface helping shape the expectations for the remainder of this year in the nonprofit sector.

With the beginning of President Obama’s second term, a recovering economy, and a fiscal cliff, nonprofits have – well – a lot to discuss and anticipate in 2013.

Several reports have been released in the past month that indicate 2012’s performance and trends, offering insight as to what to expect this year. Among those things are hiring trends, succession planning, adoption of mobile technology, social giving campaigns, and, most predictably, differing opinions on the impact of tax reform and proposals on the missions of nonprofits.

More Hiring & Succession Strategizing

The Improve Group and Nonprofit HR Solutions released a report that showed 44 percent of the nation’s nonprofits planned to create new positions this year. Positions in direct services in fundraising were at the forefront of organizations’ plans to hire.

According to the same study, 70 percent of nonprofits lacked a formal succession plan, though those who had implemented a strategy reported that it brought their organization peace of mind, developed talent, and retained staff. Experts expect focus in this area to become a primary area of focus this year.

Deploying More Technology & Social Giving Campaigns

Another main area experts and reports agree on is the increase of technology deployment in the nonprofit sector. In particular, a Blackbaud report shows that mobile technology will be significant this year with more than two-thirds of surveyed NPOs planning to utilize more mobile tech this year.

Additionally, more and more nonprofit technology companies are emerging giving organizations in this sector far more options, ranging from fully integrated suites to specialized programs for basic needs like fundraising or donor management.

This year a bigger emphasis is expected to be seen on social giving campaigns as well. The 2012 Nonprofit Social Network Benchmark Report says to expect three things:

  1. The monetization of Facebook
  2. More usage of Google+
  3. Increased fundraising efforts through Twitter

Some are Weary of Tax Uncertainties, Others See Promise

Tax promises and concerns, however, are still at the top of mind in the nonprofit sector. Till months pass and charitable giving trends can be analyzed, long-term impacts of the American Taxpayer Relief Act can’t be certain. Some think the act could positively impact giving by $3.3 billion, while others still fear proposed tax ceilings fearing a negative impact of the same amount.

This is a big year for nonprofits. A lot is yet to be determined. What is your take on the state of nonprofits for the remainder of 2013? Feel free to leave your comments below or reach out to us directly.

ashley sig