Nonprofit organizations rely on the generosity of donors for their sustainability, allowing them to solve real-world problems for those who need help. They often receive financial support from the government, private entities and philanthropic organizations, but the majority of giving comes from individual donors. Donating to these organizations allows people to pay their wealth forward. To make them even more successful in serving one of the four basic missions, financial advisors for nonprofits, like Carnegie Investment Counsel, can help.
A podcast episode of Business Made Simple (titled “Vik Harrison -- What You Really Need to Grow Your Nonprofit”) breaks down the four different categories of nonprofits, based on their mission. Hosts Koula Callahan and Dr. J.J. Peterson discusses how nonprofit organizations should approach their development the same way for-profit companies do via marketing and messaging. Vik Harrison, founder of Charity Water, advises how nonprofits can shift their thinking this way. Both Peterson and Callahan are part of StoryBrand, a marketing consultant company that helps brands and businesses clarify and transform their messaging.
In the Business Made Simple episode, Peterson and Callahan use the following quote as a frame of reference for describing the four different nonprofits: “Give a man a fish, and you feed him for a day. Teach a man to fish, and you feed him for a lifetime.” Here’s how each of those organizations differs from one another.
Relief: “Give a man a fish.”
These nonprofits provide short-term, immediate relief in life-or-death situations. Examples include emergency aid after natural disasters, like a hurricane or the tsunami in Southeast Asia. These organizations are time-bound in their response to major events, wherein the stakes are incredibly high.
Development: “Teach a man to fish.”
Organizations like these help people think about solving their own problems. These can include nonprofits that help build businesses, homes and community gardens, and focus on providing long-term, sustainable work. Rather than being time-bound in their immediacy, they take a more holistic approach to developing solutions that last beyond immediate need.
Empowerment: “Teach a man to think about fishing.”
Similarly, nonprofits that are empowerment-oriented in their mission, are more dedicated to success and sustainability. They don’t necessarily focus on emergency situations in which the stakes are life-or-death. Instead, they focus on education and sustainable assistance in their problem-solving of issues.
Justice: “Tear down the fence around the pond.”
These organizations call for equality and access related to the issues at hand. The solutions for problems relate to access and ensuring that anyone who needs to fish, so to speak, has the same ability and resources to access the pond.
Tapping the Resource of Financial Advisors for Nonprofits
Whatever category your mission falls under, we understand you have a lot on your plate. You and your team wear a lot of hats, while financial resources are always in demand. Managing the finances of a nonprofit can be tedious and stressful. Plus, operational costs, capital campaigns, spending reports, and endowment management can be a lot to manage internally. A financial advisor at Carnegie Investment Counsel can help lighten your workload by being a financial and investment guide to your organization.
We come alongside you as a fiduciary to manage your assets with a long-view approach. Having an active investment team dedicated to your endowment can make a meaningful impact on your nonprofit's sustainability, meet your programmatic needs and help you achieve your mission.
In some cases, we may replace an investment advisor, and other times, we assist organizations from the very beginning. If you are ready for endowment management and don't know where to start, we can help. From Investment Policy Statement (IPS) creation to investment plan design, implementation and reporting - we'll guide you through each step. Contact Carnegie today to speak with an advisor about your organization's investing and endowment management needs.
Looking for a Financial Advisor for Your Nonprofit?
If you are currently looking for help with financial planning, contact us. We are happy to schedule an introductory meeting at your convenience.