Boeing, Walgreens, the Speh Foundation, Crowe Horwath LLP, the MacArthur Foundation, Easter Seals, the American Cancer Society—and Mission Measurement were among the corporations and organizations that lined the tables in the Grand Ballroom of the Hilton Hotel. 

What could draw such an impressive roster? The Donors Forum Luncheon. 

On Wednesday, June 29th the Donors Forum held their 37th annual luncheon which offered nonprofit leaders, grantmakers, corporations, consultants, and civil servants the opportunity to discuss and learn about critical issues currently facing the nation, particularly in the nonprofit sector.  Noted columnist

Jonathan Alter delivered a poignant keynote speech regarding incivility in our political and cultural discourse.  

At first the topic seemed tangential to the long list of (seemingly more germane) challenges besetting the nonprofit sector. With a default on the national debt  still a possibility, it seems like the nonprofit sector has much bigger fish to fry than mudslinging by media pundits.  On the contrary, Mr. Alter used the theme of incivility to argue for a cultural shift in the nonprofit industry towards utilizing commercial practices to overcome five impending challenges they will face this year:

Challenge 1: Tighter Budget. 

As the nation continues to struggle with the best path to confront its financial woes, something that both Democrats and Republicans can agree on is the fact that they must erase a $4 trillion deficit over the next 10 years.  Whether taxes are increased or spending is cut, the relevancy of this area is that there will be less money to go around, and nonprofit budgets will be the first to suffer. Organizations like the Catholic Charities and the Fayette Companies rely on the state for over 50% of their budgets—these grants could (and should) only be protected if the organizations they were supporting proved themselves to be effective. 

Challenge 2: Management. 

Alter believes that in the nonprofit industry, egos can be worse that those in business. There has been a great deal of buddy-buddy favoritism going on (not to say that this is not widespread in business) that stagnates a well-functioning organization. Rather than concentrating on politics, nonprofits should be looking for avenues to increase pathways to success, which in this case includes adopting better management techniques. Though there seems to be an inherent friction between nonprofit and corporate management styles, the core goal is to seek out management techniques that enable the organization – whether in the private or nonprofit sector – to compete more effectively within their industry— something beneficial to all stakeholders.  To reduce the infighting that may occur, nonprofits should concentrate on better performance metrics. 

Challenge 3: The Internet.

The web is filled with information and various forms of social media that is an open market for nonprofits. The challenge is how to effectively harness online power to promote and support your cause. Alter provided an example where Amazon was used to collect donations and the patron was given the opportunity to donate money that would go to overhead.  Usually, when people are given the option, they do not opt to donate an extra percentage for overhead. However, when approached properly – online – the strategy worked.  Framing matters.  The organization was able to capture 90% of their online donors to contribute an extra 10-15% for overhead. Alter’s takeaway: utilize the web and social media to build a support system.  

Challenge 4: Poisonous Dialogue. 

As we grow nearer to the impending elections, the tone of the candidates and their portrayal by the media is sure to become increasingly divisive. This attention-seeking tactic is counterproductive and actually works to turn off a majority of independent voters.  Alter explained that the Citizens United decision, in which the Supreme Court ruled that corporate financing of independent political ads could not be restricted, will do nothing to help the situation. This becomes a problem when organizations categorized as 501(c)(4)s can be actively involved in political contests, spending an unlimited amount of money, sending inflammatory messages, and polluting the political atmosphere. 

This challenge, can be overcome by simultaneously accomplishing the fifth challenge…

Challenge 5: Staying Positive. 

In all of the challenges that the nonprofit sector faces, Alter’s main message is to take the moral high ground and concentrate on fulfilling the mission.  Rather than exacerbating an already difficult situation, concentrate on what works.  Concentrate on what actually helps your nonprofit. Concentrate on metrics and measurement.  

In honor of the theme of the talk, a final (cutting) quote from Jonathan Alter is appropriate:

 “For nonprofits that don’t get with the program (metrics )—they will be roadkill in the 21st century.”