Recession Forces Nonprofits to Consolidate - WSJ.com

The story is the same across the country. The once-booming nonprofit sector is in the midst of a shakeout, leaving many Americans without services and culling weak groups from the strong. Hit by a drop in donations and government funding in the wake of a deep recession, nonprofits—from arts councils to food banks—are undergoing a painful restructuring, including mergers, acquisitions, collaborations, cutbacks and closings.

via online.wsj.com

Clearly, the economic forces are mandating that nonprofits no longer continue with business as usual, but rather must reflect and innovate -- reflect on mission and purpose and innovate on finding new sources of revenue in a world that increasingly demands accountability and performance.

More than ever, the nonprofit world is looking for business practices -- accounting, HR, marketing -- that deliver the outcomes promised. Otherwise the limited funds will be directed elsewhere.

There are so many good causes in the world. The ones that make good on their mission will survive and prosper. That is the message of today's economy. And there is very little indication that this mentality will change any time in the foreseeable future.