Tipping Point in the Rearview

A number of articles have appeared in the mainstream and virtual press lately that indicate we have passed the tipping point in old-line philanthropy. While charity work itself is still largely grassroots, research, marketing and everything related to the process of bringing donors and doers together has irrevocably changed.

Philanthropy is definitely becoming more democratic. A “flatter” landscape is emerging due to the Internet and powerful tools available to bring donors and doers together. This can only be a good thing, as more “have-nots,” those who are not socially or financially connected, gain access to more of the inner sancta. As in the business world, the Internet and other digital tools have made it possible for a start-up or other small charity to establish an impressive presence via the Web, and leverage it to expand.

As in the past, those who are not connected (now, digitally) are probably falling even further behind. Even if a charity does not yet make great use of the digital tools available, it has become de rigueur to have an Internet presence just to be taken seriously by foundations, corporate donors and the public. Even the directory of non-profits published by the state of Michigan is barely available in printed form, and the CD is now the main form of distribution, with users clamoring for a searchable online version. Perhaps they will make it available on the Kindle.

We suspect that these new tools are also giving rise to many more non-profits than in the past, because the process and the tools for incorporating are also readily available online, often for free if they have the know-how available, or for a reasonable cost. Consequently, competition among nonprofits for donor funds has also increased, and likely to continue to grow.

In light of these trends, those charities that have grown to the point where they need help managing the next stage of growth must inevitably reach their own tipping point: deciding how many folks they reasonably and ultimately want to touch with their services, and finding the right kind of help to fit their unique situation. Ultimately, those charities that can generate steady sources of income, as well as multiple income sources to leverage that growth into sustainability, are the organizations that will do great things for their constituents. And isn’t that why most folks who work for non-profits go into it in the first place?