The last three years have produced a shakeup in the non-profit sector. At the height of the economy before 2008, I was contacted by at least two non-profit start-ups per month. Since then, I’ve heard only from a couple over three years. I’ve personally seen several non-profit organizations go out of business or take a hiatus. There has also been some consolidation, as non-profits combine to eliminate mission redundancy and increase operational efficiency.

So what is the non-profit market forecast? Based on trends and studies (such as from Guidestar, Blackbaud, and the recent Nonprofit Research Collaborative report), I expect non-profits will have the opportunity to realize revenue increases throughout 2011 and into 2012.

Taking the prevailing economic climate into consideration, here are five areas of strategic focus for the remainder of 2011 and 2012.

1. Clarify your messaging.
Clarity and consistency in messaging are more important than ever. Organizations that are well understood by key audiences stand the best chance of remaining top-of-mind when spending decisions are made.

2. Build affinity into community.
A non-profit that wants to be preferred need to capitalize on like-mindedness by finding ways to welcome the audience into its mind and heart. Successful non-profits create communities by consistently engaging the audience in ways that are both intellectually and emotionally satisfying.

3. Improve online marketing skills.
Online marketing/fundraising continues to grow. Social media is a big part of that trend, but it must be used properly. A recent study from Idealware shows that Facebook holds great potential for non-profits in many areas. However, only about 30% of organizations who use Facebook have successfully increased donation revenue through its use.

4. Get the right people on board.
No compassionate executive likes to lay off people in a difficult economy. But non-profits should view this economy as a buyer’s market and look for position upgrades that will advance the organization’s capabilities. Many non-profits face increased demand for services, so increasing capability/capacity where possible is very important.

5. Align systems for optimal efficiency.
Many non-profit organizations have poorly aligned systems, such as constituent/donor relationship management and online marketing tools. Select the right system, make sure it is properly integrated, and get the training necessary for all staff to fully exploit available capabilities.

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