Over the years, fundraising has become difficult and more challenging in the United States. The number of causes for which funds need to be raised have increased consistently and are continuing to increase while there is a regulatory control that needs to exist. Despite being a country that is home to some of the biggest corporate giants in the world, fundraising for charity continues to be one of the most challenging tasks in the country.
As per the 2016-2017 American philanthropy statistics, the non-profit sector accounts for a meager 5% of the country’s GDP. The total amount of resources that this 5% generates is only enough to fund the public goods for only 34 days. According to the statistics, a public school in New York spends more money in two weeks than what companies such as Coca-Cola and Ford spend on their marketing in a year. The volatility and uncertainty about the public-private partnership further triggered the insecurities when Donald Trump, who has been known for its anti-philanthropic views, took over the presidential office.
Implementing and switching towards Revenue Performance Management is very tricky, especially when it comes to non profit entities. Like profit maximizing corporate firms, nonprofit entities generate revenues too. These revenues are either in the form of donations or revenues generated from supporting communities. However, it is complicated to use revenues as performance management tool.
When a nonprofit entity is established, like any other organization it has a mission. However, unlike other organizations all income of nonprofit entities is not necessarily directly from mission related activities. There might be a number of support businesses that a nonprofit entity might be running. The revenue generated from those support businesses is incorporated in the nonprofit entities at large to scale up the organization, however, many of these support businesses might not be directly linked to the mission of the organization.
Over the years the demand of fundraising has been increasing exponentially. From natural disasters resulting from climate change and global warming to immigration and refugee crisis and war victims around the world to health and educational crisis in the counter, the demand for charitable funds has been rising consistently in the United States. Unfortunately, the fiscal tightness of the government budgets is making it difficult for the government to meet the demand and needs of the public goods. This is due to the consistent negative balance of payments and budget deficits. The government can set aside lesser funds for public funding. As a result, the pressures of charitable funds have been primarily shifted onto the nonprofit entities.