The problem with the community sector

The problem with the community sector, according to a local grant-maker, is that "half the charities are out of business and just don't know it yet."

It's true. Not-for-profits, like individuals, go through predictable stages of development. Unless they are continually renewing themselves, there is inevitable decline. Like people themselves, some not-for-profits work hard to stave off the effects of old age. Though not all organizations may move along the same path, on this page is a list of "passages" not-for-profits typically make:

Start up: Organization is formed in response to community need and powered by the passion of its founders. Its purpose is relevant and strong. It's largely volunteer-driven and cost-effective.

Mainstream: The bureaucracy — and the paperwork needed to support it — grows. Limits are put on who is served and under what conditions. Organizational competency is defined.

Professionalization: Passionate founders are out; professional staff are in. Action is not immediate. Categorical funding streams [funding which is directed to particular programs of not-for-profit services] may trigger shifts in the type of clientele served.

Show Me the Money: Organizational priorities change, from advocacy to preserving funding.

Renewal: The organization renews itself to meet evolving needs.

(Condensed from a talk by Carl Milofsky, Bucknell University, professor of sociology and anthropology at the 7th Annual Northwest Spring Symposium, Institute for Nonprofit Management, Portland State University, Portland, Oregon, May, 1996).