Ally 360 Blog

A Look into the Crystal Ball: 5 Predictions for Nonprofits

The only way to predict the future of the nonprofit industry is with a magical crystal ball. Unfortunately, they don't exist.

Niels Bohr, Nobel laureate in Physics, once quipped that, “Prediction is very difficult, especially if it’s about the future.”

Forecasting the future has always been a chancy endeavor. To do so, one must take into account huge numbers of ever-changing variables that can render a prediction completely inaccurate. For example, it’s probably impossible to predict what the future holds for humankind in 10,000 years, assuming human beings will still be around. There are simply too many variables at play to make even a semi-accurate prediction.

But some things are easier to predict than others, because there aren’t as many variables involved. It so happens it’s possible to get a fairly accurate prediction about the future of the nonprofit industry. 

Prediction is very difficult, especially if it’s about the future.

– Neils Bohr, Nobel laureate in Physics.

It's possible to get a fairly accurate prediction about the future of the nonprofit industry. Click To Tweet

Why is that?

It’s because the vast majority of nonprofits have missions that will always be relevant. For example, the scourge of poverty and all it entails will never be eradicated in our lifetime (sadly). Nonprofits that fight poverty are here to stay. Nonprofit organizations like zoos, museums and other cultural institutions will continue to persist because they entertain and educate millions of people each year, and have always been popular with the public at large.

A look into the crystal ball

Some of the challenges facing nonprofits have mostly remained the same, because of the relative stability of the sector. That said, ever-changing times will present nonprofits with new challenges. Furthermore, the rapid advancement of digital communications technologies means nonprofits must be early adapters in order to keep up with the times.

Prediction #1

The sector will continue to experience unexpected financial challenges during economic downturns, when people have less disposable income. Nonprofits must prepare for tough times by strengthening their endowment funds to help ride out future economic storms. Plans should also be drawn up to determine what parts of a nonprofit, if any, can be put on hold to reduce costs until times get better.

Prediction #2

Money from large donors will continue to pour into the sector. On the surface this appears to be a good thing—and in most cases, it is—but it can be problematic if big philanthropists put conditions on their support.

Admittedly, there is no easy solution; it’s a judgment call. Nonprofits need donations—period. And while naming buildings and exhibits after big donors is rather innocuous, a nonprofit has to think long and hard if it wants to accept a donation that comes with strings attached.

Prediction #3

Seasoned professionals with a lot of experience are increasingly leaving nonprofits as they reach retirement age. Oftentimes, the replacements are younger and have less experience in the nonprofit sector. Turn to the board of the nonprofit for solutions. In most cases, board members have strong connections with the private sector. They can be very helpful in searching for suitable replacements.

Prediction #4

Nonprofits are always concerned about their overhead, but at the same time most realize they can’t invest in more programs without the staff, infrastructure and fundraising to make all that possible. More and more nonprofits are turning to digital automation solutions, which enables them to do more with less funds.

Prediction #5

Nonprofits will have to stay on top of all the latest technologies that can enhance the visitor experience. This means developing cutting-edge apps, using augmented reality, beacon communication and other technologies coming down the pike.

Predictive modeling, data insights, analyses and more. Data mining with results.

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