How the numbers stack-up for the community-based charity

Dr. Robert Penna wrote the Nonprofit Outcomes Toolbox for small-to-medium size nonprofits that "...do not have access to the capacity-building grants, those that can’t afford to attend the national conferences, those that can’t afford the high-priced consultancies that have helped and are helping the Big Boys demonstrate their performance." 

Dr. Penna found that there are 1.7 million nonprofits in the U.S. with annual revenues of about $1.5 trillion. However, 94% of this revenue goes to only about 6% of these charities; 85% goes to 1.3%; and 60% goes to .02% of the charities. 

The community-based charity still must compete for what money they do receive. They must prove their effectiveness as much or more than the needs of their beneficiaries. It’s difficult and expensive to prove effectiveness. His book is an inexpensive way to become conversant enough in the use of these outcome measuring tools to demonstrate your charity's value to the community.

As a charity’s strategies and aspirations evolve, so does the interplay between funds raised and promises made to donors. 

Dependent as human service organizations have become on now diminishing government funding, there is an urgent need for these charities to better understand the changing landscape of the nonprofit world and where the major private dollars are flowing.

In 1962, education received only about 5% of total philanthropy while “other” charities received some 35% and religion received 60%. Today, according to the Urban Institute, human service charities receive less than 10% of private giving, and education (almost 15%) is now second only to religion (still first, but at 35%). 

While “philanthropy” still remains synonymous with caring for those most in need, today even the wealthy making gifts to their own foundations surpass gifts to human services.

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