As we welcome in the new year, Balance Point would like to offer a glimpse into the future to see what 2017 holds for the nonprofit industry.
Millennials and Technology Take Over the Philanthropic Landscape
The Baby Boomer generation is beginning to step down from leadership roles within not for profit organizations, leaving millennials officially in charge of the industry’s future.
How are millennials engaging with nonprofit leadership roles?
A Fortune article released in January of 2016 focuses on Marissa Sackler, founder of Beespace, who aims to “identify the next generation of innovative nonprofits” by “utilizing the tech incubator model to invest in genuine and bold organizations.” Big goals!
No doubt technology will continue playing a HUGE role in nonprofit recruiting and onboarding processes in 2017—but seeing technology used to spur new organizations to growth is both exciting and promising for the nonprofit industry.
FASB Will Change Nonprofit Accounting Rules
While the changes do not go into effect until December, 2017, the new Financial Accounting Standards Board (FASB) rule is designed to help nonprofits engage prospects by telling their story with increased transparency. The new financial reporting improves financial statements to provide more useful, and relevant, information to donors, creditors, and other stakeholders.
To simplify nonprofit financial reporting, the FASB “decreases the number of net assets from three to two,” as reported by the Journal of Accountancy.
For easier understanding, nonprofits as of now are required to disclose three types of assets: restricted (to a particular purpose or nonprofit project), temporarily restricted, and permanently restricted assets.
As of December 2017, there will be only two types: with donor restriction and without donor restriction. What was once a more complicated process will be made a little easier, hopefully drawing more interest to nonprofit organizations.
We’ll be sure to keep you updated with these changes as more information emerges.
A Trump Presidency May Show Charitable Increase
Yes, you read that right.
There’s little left to be said about the tumultuous election of 2016, but the fate of nonprofits in the hands of a President Trump appears to leave many unfazed.
Dr. Julian Maha, Founder of the autism nonprofit KultureCity, recently told Forbes that “[Trump’s] financial policies could set the stage for an increase in charitable giving that could result from limiting or eliminating other major deductions.”
In fact, organizations opposed to the intended policies of President Trump have shown an uptick in donations already. “At least a dozen nonprofits that oppose Mr. Trump’s policies or actions have reported, in some cases explosive surges in support since Nov. 8.,” the New York Times reports.
As the country cools its post-election jets, it’s possible these figures will decrease. However, intended or not, a Trump victory highlights the importance of the nonprofit industry and has ushered in many new donors—and hopefully continues to do so.
Digital Fundraising Will Show Increases for Nonprofits
As the Ice Bucket Challenge proved in 2013, the internet is a powerful tool for nonprofit organizations.
As more NFP organizations take the plunge into digital storytelling, it’s our due diligence to report that only 7.1% of donations in 2015 came through online means, according to Upleaf.
However, the Upleaf article also states that appeals directly from nonprofit organizations are proving most effective—and digital campaigns are the fastest method to reach potential donors. Also important to note is that while the initial statistic may seem like a small piece of the pie, small organizations are seeing their biggest growth in online giving.
Additionally, it’s safe to say that traditional fundraising methods (phone calls and mailers) are simply no longer enough.
As millennials take on their role as the largest purchasing force, online donations will likely continue to rise throughout 2017 and well-beyond.
Nonprofits Help Ease Rising Student Loan Debt and Retention Issues
Because of burdening student loan debts, the nonprofit industry has been severely affected by talent recruitment and retention (though you likely understand this problem by now).
Those who would make great additions to nonprofit organizations are taking on roles at larger for-profit organizations to pay off loans, however nonprofits can start combating dwindling numbers by attracting talent with the Public Service Loan Forgiveness.
The program forgives the remaining balance of student loans after 10 years of repayment while employed in the public service sector.
This proves a great recruitment tool for nonprofit organizations looking to find and retain top talent while helping employees restore financial security.
We’re excited to see how this plays out for nonprofit organizations, especially as the first applications for debt relief begin acceptance in October, 2017.