New Jersey Nonprofits: Driving and Surviving Change

Linda Czipo is executive director of the Center for Non-Profits. Jo Ann Dow-Breslin is manager of community affairs for PSEG Services Corporation and a Center trustee.

This year marks the Center for Non-Profits’ 25th anniversary of service to New Jersey’s nonprofit community. The sector’s explosive growth, coupled with an ever-rising demand for services and more calls for measurable impact, are fueling much discussion about changes that may take place during this economic crisis. At the same time, the sector’s dramatic evolution over the past quarter-century has created opportunities for unified action that hold great promise for the future.

In 1983, nonprofits numbered an estimated 4,000.Today, the IRS lists more than 28,000 New Jersey 501(c)(3) organizations employing an estimated 288,000 people – more than 7% of the state’s workforce.This growth demonstrates potential for significant economic and programmatic impact, but it has also subjected the sector to increasing regulatory scrutiny and public skepticism. In addition, adding in the steadily rising demand for services and increasingly complex and sometimes intractable nature of pressing social problems, it has created significant pressures for funders that continue to grapple with how best to assess the impact of their dollars.

The field of evaluation and impact assessment is still evolving, but it is clear that nonprofits that can show convincing evidence of positive impact greatly increase their chances for continued, and maybe even increased, funding. Conversely, especially in times of economic uncertainty, newer organizations with unproven ideas face even greater challenges breaking into the field. Perhaps now more than ever, government and private funders are looking for collaboration and avoidance of duplication among nonprofits with similar missions, and nonprofits recognize the benefits of working collaboratively to stretch resources and encourage innovation. Beyond these efforts, pressure for nonprofits to join forces more formally, up to and including mergers, is likely to continue to grow.

Opportunities for Unified Action
These trends, combined with the development of powerful new technologies, have provided increased urgency for collective action at the national, state, and local levels. Efforts such as the national Nonprofit Congress, initiated by the National Council for Nonprofits, encourage the pooling of talents and resources toward shared goals such as improved accountability and effectiveness, increased public awareness and support for the nonprofit community, and increased advocacy and grassroots activities. As we look ahead to the next 25 years, nonprofits, businesses, grantmakers, and government have an opportunity to restructure the dialogue and framework in which we work collectively to ensure a strong society and renewed commitment to the ideals we share.