The Non Profit Sector and Big Change Trends

Mark Holmgren | May 2011

the Non-Profit Sector & Big

Change Drivers

Web site: www.markholmgren.com

Blog: www.markholmgren.wordpress.com

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www.twitter.com/mjholmgren

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The Usual View

ALBERTA$10 billion in revenue20,000 organizations175,000 employees2.5 million volunteers449 million volunteer hours9 million membersMark Holmgren Consulting 2 Building Capacities for New Visions

Mark Holmgren Consulting 3

A Little Different View

GDP in 2008 was $291.7 Billion

Non Profit Revenues: $10 Billion 0r 3.4%

Building Capacities for New Visions


So, What is the Sector?

o Non-Profit is a defining characteristic.

o 13 to 18 subsectors that share legal status.

o It represents a small percentage of Alberta’s GDP.



Heard this Before?

There’s too many of you duplicating services and wasting money and competing for volunteers and other forms of support.



Would we ever say…

… There’s too many for-profit businesses?

… We only should have one grocery story to shop at?

… Competition is a bad thing?Building Capacities for New Visions


Doesn’t the economy and

community life REQUIRE

DUPLICATION?

Think about it…



Are there too many?

728 Albertans per Sports Groups1,894 Albertans per Arts & Culture

2,105 Albertans per Social Service Group

2,380 Albertans per Gas Station331 Albertans per Liquor Store

600 Albertans per VLT498 Albertans per Lawyer



10,800

Another View

NO PAID STAFF

of the 20,000

54%Building Capacities for New Visions


Who has all the staff & the money?

200 Hospitals, Universities, and Colleges

70,00 staff 11% of the money

990 Large NPOs

67,200 staff 69% of the money

8,010 NPOs 37,800 staff

10,800 NPOs No Staff

18,810 NPOs generate 20% of the money



The Large-Small Picture

1190 NPOs

$8.0 billion in revenue

18,810 NPOs$2.0 billion in revenueBuilding Capacities for New Visions


REVENUESFrom GOVERNMENT

Excluding Hospitals, Universities, Colleges

Type Contracts Grants

AB CAN AB CAN

GoA 17% 11%

5% 13%

Federal 1% 2% 5% 7%Municipal 1% 1% 1% 1%



REVENUESEARNED INCOME


Type Alberta Canada

Gaming 3% 2%Membership

13% 16%

Fees (non gov’t)

30% 21%

Investment $

3% 4%Building Capacities for New Visions


REVENUESFUNDRAISING


Type Alberta Canada

Individuals 11% 11%

Corporations 4% 3%

Grants 3% 3%


Mark Holmgren Consulting 15 Building Capacities for New Visions


Observations & Challenges

Simplistic, aggregate descriptions of the sector are not helpful.

57% of sector revenue comes from individual Albertans in the form of donations, membership fees, fee for service and gaming.




There are around 1,200 non profits in Alberta that• make most the money • have most of the

employees• are more likely to delivery

mandated services• are major employers



Key QuestionsWhere do you fit in the profile?

What’s YOUR funding market like?

What are the prospects going forward?

How will you need to change to generate revenue?



BIG CHANGE DRIVERS

AGING, IMMIGRATION,WORK AND INCOME,

PHILANTHROPY



A PICTURE IS WORTH…

SENIORS POPULATION GROWTH 2006-2031 IN CANADA

65-69

70-74

75-79

80-84

85-89

65-89

0.00%

40.00%

80.00%

120.00%

160.00%

FROM STATS CANADA PROJECTIONS



FROM STATS CANADA PROJECTIONS

CHILDREN/YOUTH POPULATION GROWTH2006-2031 IN CANADA

0-4 5-9 10-14

15-19

20-24

0-24

-25.00%

-20.00%

-15.00%

-10.00%

-5.00%

0.00%



Alberta’s Workforce

LabourForce Up

ParticipationDown

In 20 years the participation rate in the Alberta workforce will fall from 72% to 63%.



2031One Senior

2 Workers

SENIOR TO WORKER RATIO IN CANADA

1981One Senior

5 Workers

2005One Senior

4 Workers



Poverty & Wealth

IN EDMONTON100,000 people40% of Aboriginal People40% of Lone Parent Families1 in 6 Children27% of people w/disabilities

LIVE IN POVERTY

5% of Canadians have 25% of the money.



Immigration

In Canada, from 2001-2017, visible minorities will grow as much as 113%.

The rest of the population will grow up to 6.7%




Will the Boomers really retire?

Will poverty get worse?

Is there a tipping point in a Have-Have Not Society?



Observations & ChallengesWill a lower participation rate lead to higher taxes?

Will increased ethno-cultural diversity result in more cohesion or fragmentation?

How ready is your workplace for what’s coming?



Philanthropy• Increased dependency on fewer donors who give large gifts.

• Growing influence of many donors giving very small gifts. Building Capacities for New Visions


Philanthropy• Celebrity-Influenced Giving• Unbranded philanthropy• Online Giving• Social Media Influence• Social Enterprise



Focuses on small gifts that add up!Cuts through “red tape”Choose your cause(s)Anyone can be a philanthropist!Clearly understand the impact.Raise money on your blog or on Twitter

or on Facebook

Micro-giving



EDMONTON DONORS199

7199

8199

9200

0200

1200

2200

3200

4200

5200

6200

7200

8

0-24 4% 4% 4% 4% 4% 4% 4% 4% 4% 5% 5% 5%

25-34

16%

15%

14%

14%

14%

14%

14%

14%

14%

15%

15%

15%

35-44

26%

26%

25%

24%

23%

22%

22%

21%

20%

20%

19%

19%

45-54

22%

22%

23%

24%

24%

24%

24%

24%

25%

24%

24%

24%

55-64

13%

13%

14%

14%

15%

15%

16%

16%

17%

17%

18%

18%

65-up

19%

19%

20%

20%

20%

20%

21%

20%

20%

20%

19%

19%

% OF TOTAL DONORSBuilding Capacities for New Visions


EDMONTON DONATIONS1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

0-24

1.5 1.5 1.5 1.6 1.6 1.5 1.4 1.5 1.3 1.7 1.6 1.6

25-34

8.% 8.0 7.6 7.7 8.1 7.8 8.1 7.9 7.8 9.1 8.9 9.2

35-44

23.0

22.8

21.7

20.5

19.3

18.6

17.5

17.6

15.9

16.9

15.6

15.1

45-54

22.7

24.3

23.4

25.4

26.2

26.0

26.4

27.0

27.8

25.2

26.1

25.7

55-64

14.9

14.6

15.9

16.5

18.0

16.5

19.1

18.2

21.4

20.1

23.2

24.4

65-up

30.1

29.4

30.5

28.9

27.3

30.0

28.0

28.5

26.2

27.7

25.2

24.6

% OF TOTAL DONATIONSBuilding Capacities for New Visions


o increasingly employee driven o a desire for more brand connectiono growing interest in involving customers in their CSR actions.o growing interest in providing goods and services, not just cash.

Corporate Social Responsibilityin Canada



Social Services, Health, Universities/Colleges, Arts and Culture Organizations

2/3rdsGet

of the money

24% of all charities

Large Corporations in Canada



o 84% of corporate giving goes to 7% of non-profit organizations with annual revenues of more than $1 million.

o 75% of large corporations believe there are too many charities asking for donations for the same cause.

Large Corporations in Canada



SOCIAL NETWORKING

500millionmembers

China: 1.3 billionIndia: 1.1 billionUSA: 309 millionCanada: 34 million



CHANGING HOW WE CONNECT

Nearly 20% of married couples met online

These three sites: 55 million users



HOW WE SPEND OUR TIME

WHERE HOURS PER WEEK

READING NEWSPAPERS AND MAGAZINES?

3.9

WATCHING TELEVISION

16.4

ON THE INTERNET 32.7



TOP SITES IN CANADA

GoogleFacebookYouTubeLive.comYahooMSNWikipedia

BloggerTwitterKijijiCraigslistEBAYSympaticoWordpressLinkedIn



COLLABORATIVE & COLLECTIVEINTELLIGENCE

Wiki SitesCollaborative NetworksMash upsCrowdsourcingFolksonomy



BLURRING LINES

What is “knowledge?” Work and Personal Life What is a relationship? What is “reality?”



Statistics Canada Imagine Canada Government of Alberta Centre for Public Policy Volunteer Alberta United Way Globe and Mail

Major Sources



Mark Holmgren has more than 25 years of experience working as a consultant or senior staff in the non profit sector. His consulting practice focuses on helping NPOs undertake strategic change.

His work includes trends analysis, strategic design, facilitation services, social media strategy, and communications. He also teaches in the Non Profit Executive Leadership program at McEwan University and is assisting the university with curriculum review and redesign.

Current or recent clients include: United Way, The Family Centre, Partners for Kids, Head Start, The Food Bank, The Support Network, Return to Rural, and the NPVS Table of ANVSI.

Mark is the former executive director of Operation Friendship and worked for two United Ways as a vice president and as a COO for a software development company.

Web site: www.markholmgren.com

Blog: www.markholmgren.wordpress.com

Twitter:

www.twitter.com/mjholmgren


http://www.markholmgren.com/



http://www.twitter.com/mjholmgren

The Non Profit Sector and Big Change Trends

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