With the release of the Vermont Community Foundation’s new report, Vermont’s Nonprofit Sector, we asked Stuart Comstock-Gay, VCF President about the findings. Watch a recent interview with Stuart.

VCF President Stuart Comstock-Gay

What do Vermonters really think of the state’s nonprofit sector?

In Vermont our nonprofits are well-known and well-respected for their services, two big advantages over their national counterparts. This bodes well for their future, since Vermonters with higher levels of awareness and confidence are also more likely to donate to nonprofits. However, how organizations use their money to deliver those services, and whether they operate efficiently, seem to be questions in many people’s minds.

Transparency is rarely an issue. Vermonters know they generally have access to financial statements and other organizational information. However, strengthening systems of accountability (such as outcomes measurement) might be one area in which philanthropy can help boost the public’s confidence to those higher levels. The findings also indicate a need for nonprofits to focus their communications on “how” they do things as much as on “what” they do.

It is surprising to see that even those who express relatively low levels of confidence in how nonprofits handle funds still tended to give them money. This probably reflects the general sense of goodwill towards the sector. But it’s clear that Vermonters with more confidence gave at even higher percentages. Today’s potential donors want to know their money isn’t just making a difference, but is returning the biggest “bang for the buck.”

For some organizations, these tools are already at hand.  For many however, it will mark a new way of gathering and analyzing service data. It will be up to the philanthropic community to provide leadership support in these areas to assure the sector has the expertise and the capacity to get these systems in place.

How are nonprofits adapting to the growing needs of our communities?

The trend in funding shows traditional sources like foundation grants, corporate gifts, and government contracts pegged to specific initiatives are dropping off. Organizations are turning more to special events, membership dues, and fee for services to meet their budgets. While this shift in the nonprofit “funding marketplace” offers organizations more flexibility, it also raises the question of whether they have the capacity to succeed in these new directions.

Everyone will need to work smarter.  Keeping these skill-building opportunities affordable and timely is the second area where foundations, philanthropists, and corporate giving can have a big impact.

What is the role of the Vermont Community Foundation in nurturing a more effective nonprofit sector?

A more effective nonprofit sector not only delivers services more efficiently, but also attracts greater giving, and our communities benefit from both.

Vermont’s Nonprofit Sector highlights the importance of building the capacity of nonprofits – whether through management training, consultation with experts, or opportunities to connect with one another and share ideas and strategies. Especially now, as nonprofits think about doing things differently and making do with less, these kinds of resources will be more critical than ever. The Foundation is committed to providing support wherever it can, through support of organizations like Common Good Vermont and programs like Marlboro College’s certificate training program for nonprofit executives.

The Foundation will also continue to engage donors, grantmakers, and nonprofit leaders around the report’s findings to help them understand the data and adjust their strategies in ways that benefit Vermont communities.

Watch Stuart’s interview on the report with Common Good Vermont.

You can read more about Vermont’s Nonprofit Sector or find out “What’s Stu-ing?” at the Vermont Community Foundation website.