1. Trends Report
August2014
Executive Summary
The poor economy, disappearing middle class, and new governmental policies increase needs that are no longer
alleviated by the government. Consequently, NPOs (nonprofit organizations) are redefining themselves
specifically through advocacy, seeking to raise funds through relationships outside of the government. This
calls for financial transparency and ethical consistency both for the public as well as internally for the
organization. The timing of reorganization and restructuring happens in a multigenerational workforce, where
conflicting experiences and expertise and a lack of leaders place stress on the small number of current leaders,
pushing for a more flexible work environment and fluid communication. Technology advances marketing and
communications with flat design, data visualization, social media, and fundraising applications. Technology is
globalizing business on a local, national, and worldwide level, becoming more relational than contractual, and
thus requiring innovations in company platforms, consumer data sharing, product value, and anticipatory supply
chains to compete to reach emerging urban markets not traditionally served. Parenting styles range from free
and autonomous, gentle and instinctive, to faith based and American Dreamer, while time parents spend with
their children continues to increase. America’s religious affiliations are diverse, fluid, and non-dogmatic, but
over half of Americans consider religion to be highly important in their lives.
Overview
The following categories were researched for trends: Redefining NPOs, Advocacy, Financial Ethics and
Transparency, Leadership, Technological, Global, Parenting, and Religious. The PowerPoint presentation lists
them in alphabetical order to easily jump to various topics, but in the report they will be explored in the order
that makes the most sense for the information to unfold.
Findings
NPOs are being redefined as various nonprofit organizations experiment with a corporate structure and for-
profit companies see how they can profit through delivering social goods. For example, if an investment that
will make profit for the company offers social benefits, that company/service may be legally recognized by the
state as a form of a nonprofit. This can specifically happen through social impact bond financing, where an
investor provides a social service provider with working capital for a provided social good, or through “pay-for-
performance” where providers are rewarded for meeting service delivery targets on time. (National Council of
Nonprofits)
Many reasons NPOs are being redefined are because of government budget cuts and policies and the overall
economy. The government is diverting resources from NPOs through taxes, fees, and PILOTS (payments in lieu
of taxes). With fewer resources but an increase in need, many people seek NPOs to alleviate their needs. This
has led NPOs to advance much of their mission through advocacy. Consequently, NPOs have begun to raise
funds elsewhere. (National Council of Nonprofits)
The following are some trends that can make an organization financially transparent and ethical: sound
internal controls, good governance, indirect costs, and ethical and accountable fundraising practices (National
Council for Nonprofits and Overhead Myth). Those that require more explanation will be explored. Sound

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internal controls consist of the following: financial accountability through disclosure, divided financial
responsibilities, and protected assets; steps in place to prevent fraud and embezzlement; and an online
dashboard for financial data. Good governance provides the IRS 990 form to the company before it is filed,
maintains board minutes, provides easily accessible employee and company policies (conflict of interest,
whistleblower, retention/destruction, written gift acceptance, prohibited private benefit), and reviews the CEO’s
compensation and benefits (board approved). An organization that is financially transparent discloses or is
willing to disclose the following financial information due to sound internal controls and good governance:
IRS 990, CEO compensation, outcomes of financial donations, salary and benefit reviews of other NPO
employees in the organization’s ability to retain talent or offer incentives/rewards such as bonuses. An
organization that is financially transparent and ethical publicly provides the following policies and contracts:
board approved CEO compensation policy, CEO contract, whistleblower policy, an expense reimbursement
policy, company insurance, retirement, housing, and car policies, and a code of ethics. Ethical fundraising
practices do not pay fundraising professionals based on commission, and provide a Donor Bill of Rights as well
as IRS documentation. Organizations that are ethical and transparent should be up-to-date with state
regulations: fundraising state registration and licenses, disclosure statements, filed revenue sharing, and
background checks and screening (National Council for Nonprofits and Overhead Myth). Ethical charities
spend more on overhead to extend efficiency and effectiveness and to sustain services (Investing for Impact,
1).
Leadership in the workplace is multigenerational (Business Trends 2014 and National Council of Nonprofits).
As Baby Boomers retire and GenerationX and the Millennials begin to enter the workforce, there is a decrease
in experienced staff members and an increase in stress placed on the few leaders left. Consequently, there is
high expectation for NPO staff to be good with people, donors, technology, social media, legal issues, and
fundraising. Leadership in the marketplace shows emerging and developed markets competing on a more
level playing field (Business Trends 2014 and National Council of Nonprofits). However, for the benefit of
NPOs, emerging markets tend to partner more with NPOs and local organizations than with developed markets
(Business Trends 92). With a multigenerational workforce competing with larger, more developed companies,
come new responsibilities for the CFO: identify cross-border opportunities; identify customer base, new
product offerings, project needed growth and whether the current infrastructure can support the growth; know
how to take advantage of lower costs and taxes; realize financial operations are no longer just forms of control,
but forms of influence; and assume a wider rule of strategy (Business Trends106-107). Influential leaders do
the following: ask why and welcome new ideas, challenge one’s preconceived notions, deliver difficult news
and take risks, collaborate by listening, and have integrity.
Business and marketing technology is changing in the areas of design, social media, and applications and
servers (“5 Nonprofit Technology Trends to Watch in 2014” and National Council of Nonprofits). There has
been mass adoption of responsive and flat design (see www.adirondackcamp.com). Flat design is minimalist in
its design elements which means faster loading and resizing to the device accessing the website
(mobile/computer/tablet). Flat design streamlines information to make website, email, and blog access and
responsiveness more efficient on multiple devices, making things like online giving easier and more widely
accessible. Because people connect so well with images before words, more marketing happens through

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pictures. In 2013, many companies began using the infographic. In 2014, it’s data visualization, so however a
company can visually present data to consumers (see www.adirondackcamp.com). In addition to the increase in
image-use is an increase in social media use and employment. For social media to be effective on a business
level, someone needs to be working with it. People like to connect personally, authentically, and in a timely
manner, and now they can with businesses; relationship. This way of connecting found through social media is
just the beginning. In 2013, the number of NPOs that increased social media budgets to increase social media
employment quadrupled. Consequently, social media companies like Facebook and Twitter are launching
online fundraising for organizations through social media. Additional technological trends are live online TV
reports, mobile fundraising apps, and the Cloud server system (more protection and efficiency, and less
long-term expense). Social media is not a milestone to reach but a form of customer collaboration that can go
global.
Globally, social media is capable of connecting a business or businesses locally and globally, while also
creating connections between various businesses (large and small) and customers separated by distance
(Business Trends 2014). This connection can help solve social problems that impede business. New consumers
are more prosperous and urban, wealth is developing in emerging urban markets in areas of the world not
traditionally served, meaning a need for more complex networking (Business Trends 2014, “Global” 13-14).
Consequently, innovation is no longer just in the West. The following company-based needs are addressed
for areas of innovation: intellect, incentives, infrastructure, and infusions of capital. Company platforms are
becoming more flexible, “many small operating systems loosely connected” (60). The breadth and means of
consumer data sharing are being expanded and multiplied. Product value is developing according to
consumer’s freedom to recreate and customize (53-54, 60). Anticipatory supply chains are strategically
flexible, predictable, and regionalized. Like so much of what business is becoming, it is more “relational than
contractual,” “cooperative and built from trust” (Business Trends 2014, Kurt James, VP of supply chain,
McDonald’s Japan).
A recent study by Dr. de Preux, a research officer at the London School of Economics, shows there is not a
particular parenting style that is better for a child, but environments more beneficial to children are created by
parents from higher socio-economic classes (Vaitilingam and de Preux). According to Dr. Harley Rotbart,
Professor and Vice Chair of Pediatrics at Children's Hospital Colorado, children need security, stability,
consistency, emotional support, love, education, positive role models, and structure (Vaitilingam and De Preux).
Dr. Rotbart’s research could explain Dr. de Preux’s research. Diana Baumrind, a psychologist famous for her
parenting style research, found four styles of parenting: Authoritative-high in demand and response;
Authoritarian-low response, high demand; Permissive-high response, low demand; and Rejecting-neglecting, or
low response and low demand (Boateng, Emmanuel and Brent Cleveland). In addition to these typical
parenting styles is the development of six new styles: helicopter, instinctive, gentle, free range, faith-base,
and American Dreamer (Boateng, Emmanuel and Brent Cleveland). Helicopter parents need constant
interaction of their children and their children’s whereabouts. Instinctive parents parent as they were parented;
they make decisions based on instincts and what their parents did. Gentle parents parent with kindness and
respect and take a natural approach to parenting, especially in matters such as breastfeeding. Free range
parents allow their children complete autonomy, as well as the responsibilities and consequences that come with

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that autonomy. Faith-base parents rely on religion and morals from their faith and their parents’ faith.
American Dreamer parents are opportunists when it comes to their children and the potential of their children;
they hope to one day be their child’s “best friend.” Naturally, many of these can overlap. Despite the many
daily distractions of our modern age, Pew research has found:
The amount of time parents spend with their children continues to go up. Fathers have nearly tripled
their time with children since 1965. Mothers’ time with children has also increased, and today’s mothers
spend more time with their children than mothers did in the 1960s. Parker, Kim and Wendy Wang, Pew
Research and Social Demographic Trends
“Based on interviews with more than 35,000 Americans age 18 and older, the U.S. Religious Landscape Survey
finds that religious affiliation in the U.S. is both very diverse and extremely fluid.” (Pew Research Religion
and Public Life Project, Religious Landscape Survey, 2007). At 51%, Protestants are near becoming the
minority in the United States due to internal fragmentation as well as diverse denominations. Additionally,
there is a steady decline in the number of Protestants with each passing generation. However, “six-in-ten adults
believe that God is a person with whom people can have a relationship” (Pew Research Religion and Public
Life Project, Religious Landscape Survey, 2007). Catholics have the greatest net loss of people, but the loss is
offset by immigration. Most Americans believe there is more than one way to salvation and that their religion
can be interpreted in multiple ways; they are non-dogmatic. However, “more than half of Americans rank the
importance of religion very highly in their lives, attend religious services regularly, and pray daily” (Pew
Research Religion and Public Life Project, Religious Landscape Survey, 2007). Many desire to see their
religion stay true to its values and preserve its traditions and some find modern society and devotion to one’s
faith to be in conflict with one another (Pew Research Religion and Public Life Project, Religious Landscape
Survey, 2007).
Works Cited
Boateng, Emmanuel and Brent Cleveland.“Traditional Parenting Styles: Tried and True? Or Dated? An Analysis Baumrind’s Parenting
Styles and Modern Parenting Advice.” Developmental Psychology at Vanderbilt. Vanderbilt University, 29 May 2014.
https://my.vanderbilt.edu.
Business Trends 2014: Navigating the next wave of globalization. Deloitte University Press. 2014.
Investing for Impact: Indirect Costs Are Essential for Success. September 2013. National Council of Nonprofits.
http://www.govtcontracting.org/sites/default/files/investing-for-impact.pdf.
“5 Nonprofit Technology Trends to Watch in 2014.” Nonprofit Tech for Good.
http://www.nptechforgood.com/2014/01/11/five-nonprofit-technology-trends-to-watch-in-....
“2014 Nonprofit Trends to Watch: What are theimplications for nonprofit staff, board members, donors, and
community leaders?” National Council of Nonprofits. 2013. www.councilofnonprofits.org
Overhead Myth by Better Business Bureau Wise Giving Alliance, Charity Navigator, and Guidestar (2013).
http://overheadmyth.com.

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Parker, Kim and Wendy Wang. “Modern Parenthood: Roles of Moms and Dads Converge as They Balance Work and Family.” Pew
Research and Social Demographic Trends, 14 March 2013.
“Religious Landscape Survey: Report 1: Religious Affiliation.” Religion and Public Life Project. 2007, Pew Research.
http://religions.pewforum.org/reports#
“Religious Landscape Survey.Report 2: Religious Beliefs and Practices/Social and Political Views.” Religion and Public Life Project.
Pew Research. http://religions.pewforum.org/reports#
Rotbart, Dr. Harley. “TheTop 8 Things Every Child Needs.” Children’s Hospital Colorado.
<http://www.childrenscolorado.org/wellness-safety/parent-resources/kids-teens/what-kids-really-need>.
Vaitilingam, Romesh, Dr. Leure de Preux. “How parenting styleinfluences children’s wellbeing.” The London School of Economics and
Political Science. <http://www.lse.ac.uk/newsAndMedia/news/archives/2014/04/ShoutingParents.aspx>.
Other Resources of Interest
Digital
Vollmer, Christopher, Matthew Egol, and Naseem Sayani. Reimagine Your Enterprise. 14 April 2014. Strategy+Business. [Make
human-centered design (HCD) the heart of your digital agenda.]
2014 Non-profit Digital Teams Report- Influence and Impact. Digitalteams.org
[Designed to help digital leaders at NPOs strengthen the buseiness case and increase their impact of their digital programs.]
Leadership
Bain and Company articles worth checking out:
“Building a winning culture” by Rogers, Meehan,and Tanner. 2006.
“Four paths to a focused organization” by Gottfredson and Mankins. 11 December 2013.
http://bain.com/publications/articles/four-paths-to-a-focused-organization.aspx.
“How group dynamics affect decisions” by Rogers and Senturia. 03 December 2013.
http://bain.com/publications/articles/how-group-dynamics-affect-decisions.aspx.
“Kick-start yourtalent machine” by Bird, DiPaola, and Flees. 06 February 2009.
http://bain.com/publications/articles/kick-start-your-talent-machine-bain-brief.aspx.
“Using employee segmentation to bring out the best in yourworkforce.”
http://bain.com/publications/articles/using-employee-segmentation-to-bring-out -the-best-in-your-workforce.aspx.
Oliver Wyman article worth looking at:
“Culture Clash: diagnosing the Strengths and weaknesses of yourmost important element for change” by Prentice and Gouel.
2012. Oliver Wyman: enterprise Transformation.

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Organizational Design Ideas From Consulting Agency Oliver Wyman
The Strategic Enterprise: Rethinking the Design of Complex Organizations.2003. Oliver Wyman: Delta Organization and
Leadership.
Oliverwyman.com