NFPs must plan for the future – today

Leadership consultant Rod Matthews and NFP marketing expert Martin Paul have analysed what they believe the future might hold for NFPs and the conditions that will affect their future fundraising efforts

They said their key insight is that “pre-emptive scenario mapping” is vital for NFPs who want to navigate challenging times, successfully seek out generosity in Australia and be future-ready in a rapidly changing world.

“Based on our experience, the mistake that many NFPs make when building a strategic plan is to assume that broader Australian society will remain unchanged,” said Mr Matthews.

“Recent experiences have taught us that this is not the case. Covid, inflation, cost of living … society’s level and type of generosity is constantly shifting.”

The comments came as the Productivity Commission delivered its final report into philanthropy to the federal government.

Canberra commissioned the report to explore ways to double philanthropic giving by 2030.

Mr Paul said research carried out by his company More Strategic suggested that Australians see society moving in a more individualistic and less trusting direction.

Macroeconomic and societal trends could also put pressure on Australians’ willingness to reach into their pockets for a good cause.

This in turn could have major implications for the way NFPs find, engage and stay connected with their supporter and donor base – and the way they set budgets for the year ahead.

“Organisations that engage their team in a conversation about possible futures are organisations that have greater engagement, are more adaptable and play a bigger role in shaping their industry,” said Mr Matthews.

Mr Paul said there was no way for NFPs to know for certain if donations would stay the same, diminish or grow in the future.

“NFPs that want to stay agile and responsive need to make an effort to keep their finger on the pulse when it comes to gauging the shifts in societal interests, beliefs and needs that can have an impact on their livelihoods.”

“Organisations that are unaware, unprepared and unable to quickly adapt risk becoming brittle and breaking when confronted with changes in the environment in which they operate,” Mr Matthews said.

“Tapping into what’s happening in the world and having a business model that can quickly adapt is vital for organisations who want to stay relevant and financially solvent.”

Megatrends

According to Mr Paul, a good starting point is to be aware of the many unfolding megatrends that are undercurrents in our society, including:

• Australia’s aging population
• the growing move towards sustainability
• the transfer of wealth between generations
• advances in technology and generative AI.

“All these megatrends combine in one way or another over time to influence our attitudes, desire and capacity to give to charities and not-for-profits in the future, how generous we are, which organisations people choose to be generous to, and the perceived role of each and every NFP,” said Mr Paul.

“One of the best ways for NFPs to be future-ready is to be strategically prepared for a range of potential scenarios.”

Mr Matthews said scenario mapping shifted the focus from planning for a specific future to preparing for multiple futures.

“Where a specific future assumes a stable and predictable world, the real world is unstable and unpredictable,” he said.

“Deep diving into all the potential scenarios encourages us to explore possibilities, read the signals and be ready to take advantage of the changing conditions.”