Nonprofit Management - McKinsey Quarterly

The McKinsey Quaterly has two interesting articles related to non-profit resource needs.

In the 'Gift that keeps on giving', the authors reflect on the challanges faced by the majority of the small nonprofit organizations - many lack adequate organizational support, compete for the same funds, duplicate the efforts of others and can't expand or replicate successful programs. The article's take-away is that nonprofit managers and funders alike must take a new, long-term perspective. By developing transparent performance metrics focusing on outcomes and outputs, nonprofits can demonstrate their effectiveness. They will then attract more sustained funding, which in turn will allow organizations to invest in information technology systems and in management and staff-development capacity—and thereby achieve long-term results.

In 'For nonprofits, time is money', the authors conclude that it would be in society's best interest for the managers of foundations and endowments to put this money to work sooner rather than later. Donors can help by giving gifts that are not restricted to specified uses and by asking when, as well as how, their money will be used.