TrendsPrepared for Michael Perry and Board

Table of ContentsThe 8 Trends

The 8 Trends……..…………………………………………………………….3Advocacy……………………………………………………………………….4Financial Ethics and Transparency……………………………………….....5Global…………………………………………………………………………...8Leadership…………………………………………………………………….10Parenting………………………………………………………………………12Redefining NPO………………….…………………………………………...15Religious………………….…………………………………………..............16Technological………………………..………………………………………..19Works Cited……………………………………………………………………

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Advocacy• Government budget cuts and policies and the economic environment

Fewer resources and an increase in needs that seek alleviation through NPOs

• Advocacy Progress– NPOs must raise funds elsewhere (the government is diverting resources from

NPOs through taxes, fees, and PILOTS) since more people are turning to NPOs for help

Advancing Missions Through Advocacy

National Council of Nonprofits

Good Governance• IRS 990 form provided before filing• Maintained minutes• Policies: conflict of interest, whistleblower, retention/destruction,

written gift acceptance, prohibited private benefit• Board review of CEO compensation and benefits

Sound Internal Controls• Financial Accountability

– Disclosed, divided responsibilities, protect assets

• Steps to prevent fraud and embezzlement• Dashboard for Data

National Council of Nonprofits and Overhead Myth

Financial Ethics and Transparency

• IRS 990 and IRS public disclosure• Board approved CEO compensation policy, whistleblower policy,

expense reimbursement policy• Honest solicitation• Code of ethics• Be transparent about OUTCOMES

Finance and Policy Disclosure

• Insurance, retirement, housing, car• CEO contract• Salary and benefit reviews of other NPO employees

– Are you able to retain talent?– Offer bonuses?

Compensation

National Council of Nonprofits and Overhead Myth

Indirect Costs• Know the importance of recovering indirect costs

– Charities should spend more on overhead to:• Extend efficiency• Effectiveness • Sustain services

Ethical and Accountable Fundraising Practices• Not paying fundraising professionals based on commission• Donor Bill of Rights• IRS documentation

State Registration Requirements• Fundraising state registration and licenses• Disclosure Statement• Filed revenue sharing• Background checks and screening

National Council of Nonprofits, Overhead Myth, and Investing for Impact

Global• Emerging markets in parts of world not traditionally served

– More complex marketing and networking will be required (p. 13, Global)

• Business and Social Impact– Solve social problems that impede business, such as connecting large scale markets

to local markets

• City Planet– New consumers are urban and prosperous (p. 14)

More Wealth and Urban Markets

Social Business, Global Business• Social media is connecting and maintaining “balance between local

intimacy and global reach” • A mature level of social media is customer collaboration; NOT a

milestone to reach but a way of doing business– Ex: General Electric Business Trends 2014

Innovation (No longer just in the West)• What’s Needed:

– Intellect, incentives, infrastructure, and infusions of capital

• Platform– “Many small operating systems loosely connected” (60)

• Consumer data sharing– Breadth of distribution and multiple means of sharing

• Product value expands by consumer’s freedom to recreate and customize(53-54, 60)Anticipatory Supply Chains

• Flexible, predictable, regionalized connected to strategy• “Cooperative core” and “Resilience built from trust” – Kurt James, VP

of supply chain, McDonald’s Japan– Infrequent contract use and open protocol policy; open two-way street of

transparency; relational rather than contractual Business Trends 2014

Leadership• Baby Boomers’ retirement and GenX/Millenials entering the workforce

– Shortage of experienced board members– Increase in stressed staff leaders

• High expectations for NPO staff to be:– Good with people, donors, technology, social media, legal issues, and fundraising

Multigenerational

Global• China, Brazil, India• Emerging and developed markets will compete on a more level

playing field• Emerging markets tend to partner more with NPOs and local orgs

than developed markets (p. 92 Business Trends)Business Trends 2014 and National Council of Nonprofits

• Identify cross-border opportunities• Identify customer base, new product offerings, project needed growth

and whether infrastructure can support it• Know how to take advantage of lower costs and taxes• Realize financial operations are no longer just controls, but influence;

assume a wider strategic rule (106-107)

CFO Chief Frontier Officer

Influential• Curiosity: ask why and welcome new ideas• Challenge one’s preconceived notions• Courage: deliver difficult news and take risks• Character: integrity• Collaboration: Listen Business Trends 2014

ParentingDr. Harley Rotbart’s (Professor and Vice Chairof Pediatrics at Children's Hospital

Colorado, and the author of No Regrets Parenting) advice on identifying kids’ needs and providing for them:

• Security (basic needs to survive)• Stability (family unit and a community)• Consistency (no value changes or “good cop, bad cop”)• Emotional Support• Love (let them know it)• Education (school and life lessons)• Positive Role Models (walk the talk)• Structure (boundaries and limits; mutual respect)

What Children Need:

Vaitilingam and De Preux

New Parenting Styles

Boateng, Emmanuel and Brent Cleveland

• Helicopter: constant interaction• Instinctive: parent as you were parented• Gentle: kindness and respect with “natural”

emphasis• Free Range: autonomy with its responsibilities• Faith-base: rely on religion and parent-based

moralities• American Dreamer: optimistic opportunists and

hope to be their child’s “best friend”

• Authoritative: high in demand and response

• Authoritarian: low response, high demand

• Permissive: high response, low demand

• Rejecting-neglecting: low response and low demand

Diana Baumrind-psychologist famous for her parenting style research

Research Findings on Parenting Styles and the Child’s Wellbeing

• Punishing or ignoring bad behavior increases the negative behavior, while reasoning with a child produces no adverse effects

• There is not a particular parenting style that is better or worse for children• More beneficial environments are created by parents from higher socio-

economic classes Vaitilingam and De Preux

Parents are spending more time with their kids• “The amount of time parents spend with their children

continues to go up. Fathers have nearly tripled their time with children since 1965. Mothers’ time with children has also increased, and today’s mothers spend more time with their children than mothers did in the 1960s” (Parker and Wang, Pew Research).

Redefining NPOs• There is current experimentation with corporate structure to deliver

social good– For-profit investments with social benefit objectives may be legally recognized by

states– Social impact bond financing (Funds from investors social service provider with

working capital services provided)– “Pay-for-performance” (providers are rewarded for meeting pre-established service

delivery targets)

What is a NPO?

National Council of Nonprofits

Religious

These are some of the key findings of the Pew Forum's U.S. Religious Landscape Survey, which draws primarily on a new nationwide survey conducted from May 8 to Aug. 13, 2007, among a representative sample of more than 35,000 adults in the U.S. This and the next three slides are from “Report 1: Religious Affiliation.”

“Based on interviews with more than 35,000 Americans age 18 and older, the U.S. Religious Landscape Survey finds that religious affiliation in the U.S. is both very diverse and extremely fluid.” –Pew Research Religion and Public Life Project, Religious Landscape Survey, 2007•Every major religious group is gaining and losing members.

-Those growing are gaining new members faster than they are losing members.-Those shrinking are not gaining enough new members to offset the number lost

As Dickerson says, so says Pew: • Protestantism (51%) “The Landscape Survey confirms that the United States is on the

verge of becoming a minority Protestant country; the number of Americans who report that they are members of Protestant denominations now stands at barely 51%. Moreover, the Protestant population is characterized by significant internal diversity and fragmentation, encompassing hundreds of different denominations loosely grouped around three fairly distinct religious traditions - evangelical Protestant churches (26.3% of the overall adult population), mainline Protestant churches (18.1%) and historically black Protestant churches (6.9%).”•Catholic (23.9%)

Experienced the greatest net losses from people changing religious affiliation.-Offset by immigration-Latinos account for nearly half of all Catholics ages 18-29 (45%)

• Other Religions (4.7%)– Jewish (1.7%)– Buddhist (.7%)– Muslim (.6%)– Hindu (.4%)– Unitarian, New Age, Liberal (1.2%)

• Unaffiliated (16.1%): The religious group growing the fastest as a result of religious change. However:

– More than half of adults who grew up unaffiliated with a religion are now affiliated.

– The Unaffiliated have the lowest retention rate.• ¼ of this group are atheist or agnostic• ¾ are “nothing in particular”

Age-Based• Age 70+

– 62% Protestant– 8% Unaffiliated

• Age18-29– 43% Protestant– 25% Unaffiliated

“If these generational patterns persist, recent declines in the number of Protestants and growth in the size of the

unaffiliated population may continue.” -Pew Children: Mormons and Muslims are the groups with the largest families; more than one-in-five Mormon adults and 15% of Muslim adults in the U.S. have three or more children living at homeRegional: The Midwest most closely resembles the religious makeup of the overall population. The South, by a wide margin, has the heaviest concentration of members of evangelical Protestant churches. The Northeast has the greatest concentration of Catholics, and the West has the largest proportion of unaffiliated people, including the largest proportion of atheists and agnostics.

Worth Considering: • Most Americans have a non-dogmatic approach to faith.• A strong majority of those who are affiliated with a religion do not

believe their religion is the only way to salvation. • Almost the same number believes that there is more than one

true way to interpret the teachings of their religion.• More than half of Americans rank the importance of religion

very highly in their lives, attend religious services regularly and pray daily.

• A plurality of adults who are affiliated with a religion want their religion to preserve its traditional beliefs and practices rather than either adjust to new circumstances or adopt modern beliefs and practices

• Significant minorities across nearly all religious traditions see a conflict between being a devout person and living in a modern society.

• Six-in-ten adults believe that God is a person with whom people can have a relationship.

Pew Forum's U.S. Religious Landscape Survey, “Report 2: Religious Beliefs & Practices / Social & Political Views”

Technological

• Mobilize online communications and fundraising– Costly but necessary (see Adirondack Camp for data visualization, flat design, and

social media links)

• Flat Design makes websites, emails, and blogs responsive and commonplace for:

– Mobile/tablet use• Minimal design elements means faster loading and resizing to device

– Streamline efficiency– Online Giving

Mass Adoption of Responsive and Flat Design

Telling Stories Through Pictures• 2013, infographic incorporated• 2014, data visualization

Design

“5 Nonprofit Technology Trends to Watch in 2014” and National Council of Nonprofits

Increased Employment in Social Media• 2013, # of NPOs that increased social media budgets quadrupled

– For social media to be effective on a business level, time spent on it is needed

Digital Wallets in Social Networks• Facebook and Twitter are launching social network fundraising

– Card data in FB/Twitter accounts– Funds distributed by third party (ex: PayPal)– Google Wallet is the payment system to watch for partnering with social networks

(they are already on YouTube)

Social Media

Increased Surface Area Touchpoints• Personal, authentic, timely what people like about social media

shows how they want to connect in other ways… business• Social media is just the beginning

“5 Nonprofit Technology Trends to Watch in 2014” and National Council of Nonprofits

Mobile Fundraising Apps

The Cloud• Money Saver in the long term

– Less expensive than a new server– More protection from data loss– More efficient

Apps and ServerLive TV Reporting

– Internet TV– Apps– Broadcast during news conferences/events

“5 Nonprofit Technology Trends to Watch in 2014” and National Council of Nonprofits

Works CitedBoateng, Emmanuel and Brent Cleveland.“Traditional Parenting Styles: Tried and

True? Or Dated? An Analysis Baumrind’s Parenting Styles and Modern Parenting Advice.” Developmental Psychology at Vanderbilt.

Vanderbilt University, 29 May 2014. https://my.vanderbilt.edu.Business Trends 2014: Navigating the next wave of globalization. Deloitte

University Press. 2014.Investing for Impact: Indirect Costs Are Essential for Success. September 2013.

National Council of Nonprofits. http://www.govtcontracting.org/sites/default/files/investing-for-impact.pdf.“5 Nonprofit Technology Trends to Watch in 2014.” Nonprofit Tech for Good. http://www.nptechforgood.com/2014/01/11/five-nonprofit-technology-trends-to-watch-in-

....“2014 Nonprofit Trends to Watch: What are the implications for nonprofit staff,

board members, donors, and community leaders?” National Council of Nonprofits, 2013. www.councilofnonprofits.org

Works CitedOverhead Myth by Better Business Bureau Wise Giving Alliance, Charity

Navigator, and Guidestar, 2013. http://overheadmyth.com.Parker, Kim and Wendy Wang. “Modern Parenthood: Roles of Moms and Dads

Converge as They Balance Work and Family.” Pew Research and Social Demographic Trends, 14 March 2013.

“Religious Landscape Survey: Report 1: Religious Affiliation.” Religion and Public Life Project. 2007, Pew Research. http://religions.pewforum.org/reports#

“Religious Landscape Survey.Report 2: Religious Beliefs and Practices/Social and Political Views.” Religion and Public Life Project. Pew Research. http://religions.pewforum.org/reports#

Rotbart, Dr. Harley. “The Top 8 Things Every Child Needs.” Children’s Hospital Colorado. <http://www.childrenscolorado.org/wellness-safety/parent-resources/kids-teens/what-kids-really-need>.

Vaitilingam, Romesh, Dr. Leure de Preux. “How parenting style influences children’s wellbeing.” The London School of Economics and Political Science. <http://www.lse.ac.uk/newsAndMedia/news/archives/2014/04/ShoutingParents.aspx

Other Resources of InterestDigitalVollmer, Christopher, Matthew Egol, and Naseem Sayani. Reimagine Your Enterprise. 14 April 2014. Strategy+Business. [Make

human-centered design (HCD) the heart of your digital agenda.]2014 Non-profit Digital Teams Report- Influence and Impact. Digitalteams.org

[Designed to help digital leaders at NPOs strengthen the buseiness case and increase their impact of their digital programs.]LeadershipBain and Company articles worth checking out:

“Building a winning culture” by Rogers, Meehan, and Tanner. 2006. “Four paths to a focused organization” by Gottfredson and Mankins. 11 December 2013. http://bain.com/publications/articles/four-paths-to-a-focused-organization.aspx.“How group dynamics affect decisions” by Rogers and Senturia. 03 December 2013. http://bain.com/publications/articles/how-group-dynamics-affect-decisions.aspx.“Kick-start your talent machine” by Bird, DiPaola, and Flees. 06 February 2009. http://bain.com/publications/articles/kick-start-your-talent-machine-bain-brief.aspx.“Using employee segmentation to bring out the best in your workforce.” http://bain.com/publications/articles/using-employee-segmentation-to-bring-out -the-best-in-your-workforce.aspx.

Oliver Wyman article worth looking at: “Culture Clash: diagnosing the Strengths and weaknesses of your most important element for change” by Prentice and Gouel. 2012. Oliver Wyman: enterprise Transformation.

Organizational Design Ideas From Consulting Agency Oliver WymanThe Strategic Enterprise: Rethinking the Design of Complex Organizations. 2003. Oliver Wyman: Delta Organization and Leadership.

Oliverwyman.com