![]() In other words, for generations, there's been an idea that nonprofits were all about charity, which meant they shouldn't use business principles. Through the years, many fundraisers have complained that people never understood the idea of investing in a nonprofit. The combination of donor expectations and rising costs has pressured organizations to find new ways to supplement fundraising efforts. That means younger generations will continue to drive change, and nonprofits will have to adapt or perish. And although cryptocurrency has its ups and downs as it relates to its worth, the blockchain that underpins cryptocurrency isn't going anywhere. As we know, in the last decade, there’s been a shift away from checks to online giving. Regardless, the changing landscape of fundraising impacts the types of donors that organizations tend to attract. Moreover, organizations must have the agility to meet anything that happens head-on, including a nonprofit crash, which I believe will arrive at some point. These new costs increase the marketing and fundraising budgets, so the times of starving a nonprofit, thankfully, are ending. Organizations are now expected to maintain a robust online presence, have an expert and qualified team, and comply with ever-changing regulations. The knowledge age may bring more funding opportunities, but it is also bringing higher costs associated with doing business. The Changing Landscape and Rising Costs of Fundraising Further, donors are also more likely to have a critical view of organizations that can't keep up with the new pace of the times. As a result, knowledge makes donors more discriminating about the causes and places those that don't toe the line hang on the precipice of failure. Let's face it, donors don't have to be technology savvy to understand that nonprofits must demonstrate what they need to contribute (e.g., impact, outcomes, quantitative reporting). Today, donors expect an online presence and concrete information about the impact and how their donations will be used. Previously, a donor with a philanthropic bent was satisfied with receiving a glossy report from the nonprofit they supported. However, at the same time, donors also act more strategically and with more intent. ![]() The ability of donors to instantly access information on their favorite causes is a boon to nonprofits and philanthropists alike. That economy refers to a system where success is measured by the creation and sharing of knowledge rather than the ownership of it. Information is the gold of the knowledge economy. Ultimately, it results in more power for consumers and donors in the case of nonprofits. New technologies that facilitate information sharing and exchange lead to greater transparency, collaboration and the democratization of information. In other words, it goes beyond the information age. The knowledge age is when organizations and individuals increasingly are empowered by knowledge. Donors today, from major donors to general gift contributors, have immense power over nonprofits - and they're using it. Moreover, all of it happens at lightning speed. For example, there has never been a time when data could be analyzed with predictive analytics and you know exactly who to ask, when and how much. The reality is that new technologies quickly come to market, and old solutions rapidly fall out of favor. If the nonprofit sector is the same old one that existed through the 20th century, the knowledge age is bringing about furious change. But the reality is that, as with anything else, it will change on its own, or another force will make it change. One time I heard someone say that the nonprofit sector doesn't change.
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