Nonprofit funding that balances organizational sustainability and meeting the needs of clients is a complex and nuanced process that nonprofits undertake to advance the public good.

In a series of focus groups that we conducted here at Capacity Building and Policy Experts, LLC in conjunction with Rider University support, we found that nonprofit funding is assessed by managers through formal and informal processes beforehand. The full findings of our focus groups are featured in chapter three of the book Political Corruption in a World in Transition.

Nonprofit Funding Environmental Analysis

With respect to nonprofit funding, administrators engage in a short-term-and-long-term environmental analysis that considers the limitations of the nonprofit funding opportunity, the impact on organizational sustainability, and its impact on clients. The pros and cons of the organizational sustainability and meeting the client needs are assessed through the anticipated impact on the following:

Organizational Sustainability:

* The administrative, financial, staff and reputational impact are assessed.

Meeting Client Needs:

* The potential impact on the clients, meeting their needs, and the impact on the mission are also simultaneously assessed. 

For a full and downloadable chart that describes the steps that nonprofits use to ensure a balance between the organization’s sustainability and meeting the needs of the clients, please subscribe to the newsletter on our website.  

When to Apply or Hold Off On Applying for Nonprofit Funding

If at any point a funding opportunity is viewed as harmful to the client and is not sustainable, nonprofits opt not to apply. If the nonprofit funding is not values-aligned, or the requirements detract from the mission of the organization, it is not pursued. Thus, nonprofit managers are not primarily motivated by the pursuit of “the contract,” but rather by the pursuit of services that benefit the client. However, when there is no viable funding alternative for a needed service that clients need, nonprofits are more willing to accept the limitations of imperfect funding opportunities.

Our Newsletter is Back!

We are back after a brief sabbatical. Although we have been away, we have been very busy! During this time we’ve been working on a series of new projects that we will roll out throughout the end of the year. Some of the things that you can look forward to including the following:

• An updated nonprofit infrastructure checklist
• Lessons learned from a series of research projects
• Tools for more effective and ethical nonprofit management
• Professional development workshops that aim to improve your nonprofits management capacity and overcome challenging situations

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Please subscribe to Third Sector News, which will also provide resources and toolkits for managing real-life situations that those working in the nonprofit field experience.