FORT LAUDERDALE, Fla.--(BUSINESS WIRE)--Aug. 4, 2006-- The following are conclusions based upon an informal, nationwide survey conducted by Dr. Stephen L. Goldstein of The Nonprofit Institute/Educational Marketing Services and author of 30 Days to Successful Fundraising:

Even though the more than 1.8 million nonprofits in America hold about $2 trillion in assets and generate about $1 trillion in annual revenue, like Rodney Dangerfield, they "don't get no respect." In a capitalist society, where being in business and competing to make money is admired, many people think nonprofits are second-rate because they ask for contributions.

Some nonprofit executives even think of themselves as paupers. The head of one told me that "a nonprofit is an organization that, because of what it does, cannot make money." Another confessed to thinking that fundraising is begging.

I estimate that only about 1 in 10 people understands that nonprofits can and should make money above expenses. They just call their extra dollars "surplus" and reinvest them in their organization, instead of distributing them, like businesses, as shareholder dividends.

So, we need to turn the negative image and culture of nonprofits positive by renaming them "Community Investment Organizations" or CIOs.

First, like public companies, CIOs would publish annual reports, showing that they produce a financial, not just a "feel good" result--a return-on-investment of dollars donated to them. For example, besides any dollar surplus a program for teen substance abusers might generate, it could estimate the cost to society of lifetime drug users, track successful graduates, and tally the money it saves the public long-term.

Second, renaming nonprofits could invigorate fundraising. CIOs could make a case to donors to give major money to efforts they can show pay dividends to society. Donors who see their money multiply will contribute more, more often.

Obviously, the IRS is not going to officially change nonprofit to CIO soon. Nonprofits may even resist redefining. But those that explain how they are community investment organizations will raise more money. A rose by any other name might smell as sweet, but a nonprofit that accentuates its CIO positives will blossom.

(Dr. Stephen Goldstein's 7 POWERS Fundraising Success System shows nonprofits how to market themselves as Community Investment Organizations.)

Copyright Business Wire 2006

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