LIVINGSTON, NJ - Livingston-based accounting firm, Sobel & Co. recently released a report on the results of its biennial survey, which collected data on the level of infrastructure (business operations, finance, marketing and management) typically embraced by nonprofit organizations across the tri-state area.
“It is critical to note that many of the nonprofits that responded are thriving, well managed, and consistently executing strong business practices. These successful organizations--regardless of size, scope and budget--have placed a priority on adopting formal processes and procedures in an effort to be more efficient and more effective,” commented Ron Matan, Partner in Charge of the Nonprofit Practice Group.
“It is equally as important to recognize that, in contrast to these organizations, there still remain many groups that rely on the power of their mission and the loyalty of their supporters to sustain them, without investing as much effort into creating a business-centric framework around which they can grow and thrive,” he concluded.
Overall, the survey revealed that while most nonprofits acknowledge the importance and the power of assuming a more ‘corporate attitude, they do not have the resources to implement best practices that have been identified in the nonprofit community. According to Sally Glick, Sobel’s chief growth strategist, “local and regional organizations are often led by visionaries and founders who understand and are deeply committed to the mission but who come to the table with little previous business experience. This creates a “gap” that nonprofits must eventually overcome.”
Emily Vanderberg, who founded Livingston-based E & Co., in the fall of 2012, and has been using a for-profit business model to fund several ministries to benefit the poor in India, agrees with Glick and explains what she has been working to do as the “visionary” of her own business, “It’s important to create a team that can work well with you and who not only understands your vision but believes in it. It’s also important to bring on a person that can be passionate about the business end of things for you. This will help bridge that ‘gap’.”.
“This survey is important because it addresses an emerging trend in the nonprofit sector as leaders and donors and volunteers grow more knowledgeable. Aided by technology and limitless quantifiable information about the measurable success of an organization, donors’ standards and questions will increase and nonprofit leaders will need to be able to react and respond in a meaningful way,” concludes Bridget Hartnett, Partner in the Nonprofit Practice Group at Sobel & Co.
To download a copy of the survey results, visit Sobel’s website at www.sobel-cpa.com and click on ‘Niches/Nonprofit.’ In addition, Sally Glick, Chief Growth Strategist can be contacted at 973-994-9494.