The future of Nashville’s nonprofits

I have had the opportunity for the past 12 years to look at the Middle Tennessee nonprofit sector from a unique perch. The Center for Nonprofit Management works with more than 800 agencies, helping them improve their ability to serve their constituents.

What have I seen and what is the future for our sector?

Our many nonprofits have survived the recession, the flood, government funding reductions, and the influx of new agencies competing for scarce philanthropic dollars. They survive because of passionate, dedicated, and even stubborn managers, and equally dedicated board members and volunteers. And, they continue to make a positive difference in our communities.

Nashville would not work – would not be the 'it' city – without them. They account for 15 percent of our employment and more than $20 billion injected into our economy every year. They cover virtually every field of activity in our city, from the arts, to education, to health care, to the environment, to economic development leadership, to human services for newborns, children, adults, and seniors, to animal welfare.

Many of our nonprofits are faith-based, either aligned directly with churches or independent and non-denominational.  In our part of the country, this is as it should be – we revel in our faith-based solutions to problems.

Like our world generally, the nonprofit’s environment is changing. For example:

• In the past, it was sufficient to record a nonprofit’s activities – “we fed 500 people.”  Now it is essential to record that agency’s outcomes – “Of those 500, 150 are no longer dependent on our food, while another 200 are being fed and nourished and counseled and our goal is for them to be self-sufficient in two months.” 
• Younger adults connect to nonprofits in very different ways from baby boomers. They move in quickly, want to make an immediate difference, and then possibly move on to another interest. Nonprofits are trying to understand this phenomenon. 
• We are also seeing a generational shift in our philanthropists.  For decades, a cadre of individuals have provided the core funding for many of our local agencies. These individuals are aging will soon not be in the nonprofit picture.
• As government programs are reduced, particularly at the state and federal levels, nonprofits are being asked to fill in the gaps. But the scale of the government and of the independent agencies are quite different. Nonprofits can help, but will never replace public dollars.
• The lines between for-profits and nonprofits are blurring. New social enterprises are bubbling up, many from the Entrepreneur Center and its affiliates. A number of these companies want to do good for Nashville as they do well for their investors. And others are nonprofits, but their leaders think and operate like venture business executives.

Yet, another change is the way in which nonprofits work together and with other sectors. For many years, each nonprofit pursued its own mission in a near-vacuum.

This narrow perspective is fortunately becoming quite passé. Agencies now commonly collaborate on service delivery, as well as sharing the costs of doing business. But we are in our infancy in addressing complex community needs through multiple collaborations.

A new model called “collective impact” has evolved to attack community problems.

Indeed, the future of a successful local nonprofit sector lies in mega-collaborations. Nonprofits will need to work in teams with others in their field, with nonprofits providing different services, with government, and with the for-profit sector.

The HCA Foundation is currently leading an effort to encourage the success of local collective projects.  Other philanthropists and foundations will have the opportunity to participate. Our mayor fully understands this concept and will be conducting her administration through a number of collaborative initiatives.

Our nonprofits will have a bright future and will navigate through the many changes they must accept – if their leaders set their sights on addressing large community problems through joint activities and shared problem-solving.

Lewis Lavine is the president of the Center for Nonprofit Management.