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ASU Lodestar Center Blog

Research and recommendations for effective, day-to-day nonprofit practice from ASU faculty, staff, students, and the nonprofit and philanthropic community.


Thursday, October 8, 2020

Illustration of a woman on her laptop

In the Journal of Nonprofit Management and Leadership, Seung-Chul Yoo and Minette Drumwright provided data from 2017 indicating that “…86 percent of U.S. nonprofits used some form of online fundraising and 61 percent of donors worldwide reported that they prefer to give online.”  While the majority of nonprofits are using technology to increase donations, it is not always being utilized efficiently and successfully.

Technology, in all facets, is ever changing and will continue to grow as an influencer on nonprofit fundraising efforts. This is primarily due to younger generations continued utilization of digital platforms. The amplified use will continue to benefit nonprofits as one of the most cost-effective fundraising mechanisms.

Organizations can better leverage technology through first recognizing three notions. The first is that social media is a small donor platform. Meaning that donations are not large in dollar amount, but they are large in quantity of donations obtained. The second is that motivations of donors that prefer to utilize technology to donate varies from other subsets. Primarily, those that donate via digital platforms do so because they are influenced by their social network, not by what an organization accomplishes. Lastly, the social network effect will impact success in a positive way. The more messages an organization puts on social…

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Monday, October 5, 2020

Illustration of a giant magnet above a group of millenials

As of 2016, Millennials (those born between 1981-1996) are the largest generation in the U.S. workforce and will comprise 75 percent of the global workforce by 2025. Millennials are often referred to as the “job hopping generation” due to their tendency to change jobs more frequently than previous generations. This high turnover can drain financial resources since replacing employees is costly. 

Nonprofits that want to close the revolving millennial door should look to the 5 C’s of millennial retention:

  1. Coaching: Millennials don’t want a boss but rather a coach. Much like the guiding parents that raised them, millennials want praise, feedback, nurture and support. A high supportive, low directive leadership style is most likely to be effective with millennials. Millennials crave feedback and all good coaches provide plenty of it, in real time with specific and clear details about performance.
  2. Collaboration: Millennials want a sense of belonging. There is evidence that millennials thrive in flatter organizational structures with shared governance and peer to peer collaboration. When this is not possible, leaders should look for opportunities to involve millennials in key decision making on topics of value to them. Mentorship programs have also been identified as a strategy to engage millennials. Assigning millennials to mentor senior employees in a reverse or mutual mentorship program can…
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Wednesday, September 23, 2020

Nonprofits in Arizona are facing some terrifying scenarios when it comes to maintaining funding amid COVID-19. News stories continue to report on the loss of revenue to date throughout a variety of sectors, with some reports say as much as nearly $53 million. Nonprofits in Arizona are looking at a potential annual loss of over a quarter of a billion dollars, with over 90 percent of groups reporting a decrease in revenue, three quarters seeing a disruption of services and volunteers pulling back on their commitments. According to the ASU Lodestar Center, only 5 percent of nonprofits reported normal operations as the pandemic first unfolded.

All of the above points are concerning, and as Kristen Merrifield, the CEO of Alliance of Arizona Nonprofits said, “it is just the tip of the iceberg.” This statement is as foreboding as it is accurate.

The reasons for financial distress are simple; nonprofits traditionally run tight margins around their organizations to make sure their programs are funded. It is not easy to run surpluses. I have spent nearly 15 years in the…

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Thursday, September 17, 2020

Illustration of four hands bringing puzzle pieces together

Illustration by Jocelyn Ruiz

Entering the nonprofit world as a young man was challenging. I did not expect to enter a field that was just as competitive as the for-profit sector, nor did I expect that the nonprofit world would be challenging. It’s not easy to work in this field, yet many of us do for numerous different reasons. No factor more important than the feeling we get when we help people. Helping people and serving the community can feel like an uphill battle, yet it becomes so much easier when we have someone by our side, helping and motivating us as we climb the hill.

While the world braces for the changes that occur daily with COVID-19, there is one constant that remains: teamwork. Teamwork is essential for us because it enhances our ability to communicate with our peers, our partners and our teammates. Professionals use it daily, whether it is athletes sharing roles in sports or managers sharing responsibilities with their teammates. For us to be efficient, we need to depend on our teammates so that we can amplify our organization’s ability to deliver quality services. When we can deliver quality services, our community prospers and we create opportunities for organization to get funding options, as well as free marketing that many deserve but most cannot afford.

Now more than ever, working together is critical for the nonprofit world, both internally and externally. COVID-19 has restricted us from working face-to-…

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Tuesday, August 11, 2020

For the general public, the designation “nonprofit” is often correlated with donations. The thought of a nonprofit entity earning revenue and having customers can appear contradictory. However, these entities can earn revenue and have customers, so long as these transactions serve their mission and purpose.

Why, suddenly, is earning revenue and having customers an important topic for nonprofits?

As part of its convergence project to remove inconsistencies and weaknesses in existing revenue requirements, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). This new revenue recognition standard is intended to improve the comparability of revenue recognition practices across entities, industries, jurisdictions, and capital markets, including nonprofits.

How can a nonprofit earn revenue and have customers?

Many nonprofit entities have contracts with government agencies that request the performance of specific services and are paid by the government for those services. Often time these transactions occur when government agencies elect to outsource certain services. These arrangements may be in the form of fee-for-service contracts. Nonprofit entities will now be required to review the terms of all their contracts to determine whether they need to apply the new revenue recognition standard.

Under fee-for-service contracts, the nonprofit entity…

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ASU Lodestar Center Blog