Helping to Build Nonprofits’ Capacity for Success

To address growing community needs such these, many of Virginia's 501(c)(3)s are doing much more than fulfilling their community-minded missions. Nonprofits in Virginia represent a $31 billion industry, second only to the retail sector.

There is much to celebrate with nonprofits' successes in the Richmond area and across Virginia, but as nonprofit leaders likely will agree, the needs for critical services and support resources only grow.

To better understand the unique factors and opportunities facing nonprofits, Johns Hopkins University recently completed a study called, "Virginia's Nonprofit Sector: A Major Economic Force."

The report details six findings:

(1)The private nonprofit 501(c)(3) sector is a major economic force in Virginia.

(2)Though sizable, Virginia's nonprofit sector is proportionally smaller than its counterparts nationally.

(3)Virginia's nonprofit sector is not only large, it is also highly diverse -- by field, location, and size.

(4)The revenue base of Virginia's nonprofits, like that of the nation's, differs significantly from what is widely believed.

(5)Though still smaller than its counterparts nationally, Virginia's nonprofit sector has been quite dynamic in recent years, growing at a rate that exceeds the national average. This is true, moreover, with respect to both expenditures and employment.

(6)While the overall average weekly wages of Virginia's nonprofit employees are lower than those of for-profit employees, in the fields in which nonprofits and for-profits are both involved, the average weekly wages of nonprofit workers often exceed those of for-profit workers.

We believe these findings reinforce that there is much to celebrate with nonprofits, but there is even more that businesses and individuals can do to support the nonprofit sector as it evolves to meet new challenges. In addition to providing financial support, individuals and businesses can work to contribute time and unique skills to build the capacity of nonprofit organizations.

In particular, we believe building the leadership and organizational capacity of nonprofits represents the greatest opportunity for these organizations to be an even more powerful engine of good. Businesses -- large and small -- need to rally behind nonprofits with capacity-building leadership, energy, and support.

We can never underestimate the importance of writing a check to a group in need or hosting a fundraiser to build awareness and financial support. However, capacity-building involves the sharing of resources and expertise through volunteer and board involvement -- such as strategic planning, leadership training, and organizational development -- to better ensure the long-term possibilities of nonprofits. Such support is invaluable to nonprofits, especially given today's rapid technological, economic, and demographic changes.

Given the reach and impact of the nonprofit sector, we also should encourage a stronger sense of inclusion of nonprofit leaders in discussions and decision-making in our communities.

Today's challenging environment requires nonprofits to do more with less through fresh thinking, innovative approaches, and creative ideas. As the challenges facing nonprofits evolve, those of us who support their efforts must evolve our thinking and actions as well.

If we strive for our community to embrace the excellence we demand in our companies, we need to reconsider how we in business support nonprofits. Together, we can be a powerful force in the future success of our nonprofits to ensure a better life for all Virginians.
Jim Ukrop is the chairman of First Market Bank and previously served as president, CEO, and chairman of Ukrop's Super Markets. Charlie Agee is director of corporate contributions at Altria Client Services Inc., a services subsidiary of Altria Group Inc., which owns Philip Morris USA. Ukrop's Super Markets Inc., First Market Bank, and Philip Morris USA in 2007 provided funding for the Johns Hopkins University study "Virginia's Nonprofit Sector: A Major Economic Force." The report is accessible on the Community Foundation's Web site (www.tcfrichmond.org).