As more and more journals and blogs are publishing about the need for more collaboration between funders and nonprofits, it’s no surprise to see those social good organizations join the movement to champion measurable long-term social impact.
The call for increased collaboration is more than a trend; it's a fundamental shift in how we view and achieve success in the nonprofit sector.
This shift is beautifully encapsulated in a recent article by Matt Stephenson, CEO and Co-Founder of Code2College, published on the Center for Effective Philanthropy (CEP) blog. His article "Four ‘T’s for Better Funding Relationships and Healthier Nonprofits" highlights the critical areas where funders can create better relationships with their nonprofit grantees: Time, Talent, Treasure, and Testimony.
Here, we will explore these Four Ts, Stephenson’s suggested solutions, and discuss how impact management software like SureImpact can empower both funders and nonprofits to address these areas effectively, driving long-term change and achieving transformational impact.
Time: An Irreplaceable Resource
Problem: Nonprofits are often understaffed, and current grant reporting processes can be incredibly time-consuming.
Solution from Stephenson: Lower funding requirements for returning grantees.
Time is one of the most valuable assets for nonprofit leaders. The administrative and logistical challenges associated with fundraising—such as grant writing, submission, and follow-up—consume a significant amount of time. According to GrantStation's "2024 State of Grantseeking Key Findings," the largest grant award took up to six months for nearly 60% of respondents. This lengthy process is a heavy burden on nonprofits, especially when recurring grants account for a significant portion of their funding.
CEP suggests that funders can better support their grantees by reducing the administrative burden and lowering application and grant requirements for returning grantees. This approach has shown positive results, with many nonprofit leaders reporting increased trust from their funders and easier application processes. However, to truly optimize this process, funders and nonprofits need to leverage technology.
SureImpact's Solution: Automate and streamline the reporting process.
SureImpact offers a real-time data collection and reporting infrastructure that greatly simplifies grant reporting requirements. By automating these processes, SureImpact saves nonprofits valuable time, allowing them to focus more on their mission and less on administrative tasks. This not only reduces burnout but also enhances the overall efficiency of the organization. Funders benefit from having immediate access to grantees' data through a real-time dashboard, making the reporting process seamless and less time-consuming.
Talent: Feedback is a Gift, as is Expertise
Problem: Nonprofits are often understaffed and lacking in key skill sets.
Solution from Stephenson: Provide feedback and offer expertise to address grantee skills gaps.
Nonprofit leaders face significant challenges in the labor market, including difficulties in filling staff vacancies and addressing skills gaps. This is especially true for organizations involved in direct service delivery, which often struggle more with staffing issues. The CEP report highlights the importance of funders providing feedback and offering expertise to help address these gaps. While feedback and expertise are invaluable, building the capacity of grantees is even more critical.
SureImpact's Solution: Enhance capacity building through technology.
SureImpact simplifies the grant reporting process and provides nonprofits with tools to manage their data effectively. This technology empowers nonprofits by saving time and effort, allowing them to focus on building their capacity and addressing skills gaps. Additionally, SureImpact's user-friendly platform makes it easy for direct service providers to work with their clients and collect the necessary data for grant reporting. Funders benefit from having a clear, real-time view of their grantees' progress and challenges, enabling them to provide targeted support and expertise where it is most needed.
Treasure: Show Me the Money
Problem: Nonprofits often lack sufficient funding for their operations because most funding is tied to specific programs.
Solution from Stephenson: Provide greater unrestricted support to grantee organizations.
Unrestricted funding is crucial for nonprofits to operate effectively and sustainably. It allows organizations to allocate resources where they are most needed and respond flexibly to emerging challenges and opportunities. The CEP report emphasizes the importance of providing greater unrestricted support to grantee organizations.
SureImpact's Solution: Empower nonprofits with technology to enhance operations and fundraising.
SureImpact supports nonprofits by providing the technology they need to improve their operations and raise more funds. By leveraging SureImpact's platform, nonprofits can demonstrate their impact more effectively, attract more funding, and win more grants. The ability to share data-driven success stories with stakeholders is a powerful tool for nonprofits to secure the unrestricted support they need to thrive. For philanthropists, scalability is about achieving transformational systems change at a national, continental, or global level. SureImpact can play a crucial role in this by providing tools that help organizations measure their impact effectively and share their results with stakeholders. This approach ensures that philanthropic activities are not only impactful but also sustainable and scalable.
Testimony: Believe Us that Burnout is Real
Problem: Nonprofit leaders are often exhausted and under-resourced.
Suggested Solution from Stephenson: Make direct introductions to other funders and share grantee success stories to amplify their work.
Nonprofit leaders frequently experience burnout due to the pressures of managing their organizations with limited resources. The CEP report notes that a significant percentage of nonprofit leaders are concerned about their own burnout and that of their staff. Making referrals to other prospective funders can help mitigate these issues by opening up new sources of funding.
SureImpact's Solution: Get serious about the first Three T’S
It’s no surprise that a lack of time, talent and treasure leads to burnout. Just ask anyone who has ever worked for a nonprofit.
It’s certainly commendable that Stephenson recommends that funders recognize burnout; in fact, it’s vital.
And while we would never dissuade anyone from making introductions to other funders on behalf of grantees in their network, we’re wondering if “testimony” is the most expedient solution.
At the end of the day, more time, talent and treasure is the best burnout remedy. Higher pay and increased headcount to spread work around a bigger team is what will ultimately keep people in the field.
By leveraging technology like SureImpact that automates tasks and generates more revenue for nonprofits, nonprofits can create and maintain a high-performing culture by increasing efficiency and supporting capacity building. This, in turn, reduces the risk of burnout among nonprofit leaders and staff.
Conclusion
There are many key areas where funders can enhance their relationships with nonprofits and support their success.
However, addressing these areas effectively requires the right tools and technology.
SureImpact provides a comprehensive solution that connects funders and grantees, streamlines processes, and enables data-driven decision-making. By leveraging SureImpact, funders and nonprofits can work together to achieve long-term, transformational impact.
As the impact measurement movement continues to gain momentum, the role of technology in driving social change becomes increasingly important. SureImpact stands at the forefront of this movement, offering innovative solutions that empower organizations to measure their impact, share their successes, and achieve their goals. Together, funders and nonprofits can create a more sustainable and impactful future.
For philanthropists, scalability is about achieving transformational systems change at a national, continental, or global level. SureImpact can play a crucial role in this by providing tools that help organizations measure their impact effectively and share their results with stakeholders. This approach ensures that philanthropic activities are not only impactful but also sustainable and scalable.
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