There are 1.5 million nonprofits in the United States. Washington State alone is home to more than 50,000 nonprofits. They are tackling problems we all want addressed like hunger, youth suicide, and domestic violence; economic development, water policy, or emergency services; drop-out prevention, stronger reading skills, and college access. The staff, boards, and volunteers in these organizations are working hard but there is tremendous untapped potential in our nonprofits.
Because most of the funding available to nonprofits can only be used for programs, even large nonprofits have extremely limited budgets for planning, board development, operational improvement, and basic HR, technology, and financial systems. How can we unleash their potential to make the world a better place unless we provide nonprofits with affordable access to the skills and tools necessary to overcome operational and governance barriers and grow effective programs?
In Washington State, individuals, foundations, corporations, and government have come together to surmount this problem by supporting 501 Commons. 501 Commons is a "management support organization" or MSO. We are one of the largest MSO's in the U.S. and provide the most comprehensive consulting, contracted services, and resources available.
Some of our services are primarily focused on Washington State, while others like the Resource Directory, staff climate survey, and Data Solutions services are provided to organizations throughout the country - and, in the case of the online resources, throughout the world.
Recognition from others
In 2014 501 Commons was chosen by Seattle Business Magazine as Nonprofit of the Year (shared with our partner City Club.) We were also honored twice by America's State Commissions for our Emergency Planning program for low-income housing sites and our Executive Service Corps program. 501 Commons has also received the Evergreen Award, an annual award recognizing outstanding commitment, innovation and contribution to the sector and a partnership award from the Minority Executive Directors Association.
One Gift Impacts More the 1000 Washington Nonprofits Each Year
Over 75% of nonprofits have annual expenditures below $1 million. Government and private funders usually provide funding only for direct services and programs, with no allocation for overhead or support costs and no way to build retained earnings. This means organizations doing the most important work in our society do not have access to the tools for organizational effectiveness: HR systems, technology, solid financial management, planning,…and coaching and leadership development.
Our business model is a fairly equal mix of revenue generated from fees paid by nonprofits for our services, $1.3 million per year of donated time from the skilled professionals in our Executive Service Corps, and contributions from individuals, companies, and foundations.Without the contributions of our volunteers, our funders, and donors, we would not be able to keep the other services we provide affordable to nonprofits.
A Partner for Philanthropy
501 Commons helps individuals, governmental agencies, and philanthropic organizations accomplish their goals. A gift to 501 Commons impacts more than 1000 nonprofits each year. Our innovative capacity building programs, make 501 Commons one of the most cost-effective and high-impact investments you can make to enhance the effectiveness of nonprofits and help people and communities flourish.
We are lucky to have the support of nearly 40 foundations andthat understand the challenges that nonprofits face in accessing professional expertise, administrative support, and leadership development opportunities. Many of these funding relationships have included active partnerships that go beyond a funding relationship:
- The Boeing Company provided early support to start 501 Commons, originally the Executive Service Corps of Washington, and has provides more than $500,000 in support throughout the history of the organization, including support for the Springboard and Catalyst programs.
- Seattle Foundation, Bill and Melinda Gates Foundation, and the Satterberg Foundation have provided significant levels of ongoing general operating support over the last 8 years, allowing 501 Commons services to reach thousands of nonprofits.
- The Seattle Office of Arts and Culture, and 4 Culture have supported the Springboard for the Arts program since since its inception in 2010. Join them, the Boeing Company and the in sustaining this proven program that preserves the cultural diversity of our community.
- In addition to providing continuing general operating support, the Medina Foundation is underwriting the Pathways program for five of their rural grantees.
- Northwest Fund for the Environment contracts with 501 Commons to provide executive advisors and people with specialized expertise for their grantees.
- The Bullitt Foundation provided funding for executive directors from five grantee organizations to work with a leadership coach. The yearlong Compasspoint Coaching Study found that significant benefits in leadership and management resulted from coaching nonprofit leaders.
- We are working with the Campion Foundation to encourage nonprofit boards to be advocates for their organization's mission by becoming engaged in public policy and in shaping public opinion.
- The Murdock Trust gave us the capital to start our Human Resources program which is now creating positive impact on the workplaces of thousand of nonprofit employees each year.
- The City of Seattle has partnered with 501 Commons to provide a broad range of support services to its contracted early childhood education programs.
- Google and Microsoft supported the development of our Plan IT! technology planning program, which is now funded by individuals and companies, including First Tech Federal Credit Union, REI Co-op, Columbia Bank, Avanade, Deloitte, Accenture, Mutual of Enumclaw, and continuing support from Google.
United Way of King County's Volunteer Impact Partnership
One of our most enduring partnerships with with United Way of King County. Since 2010 the United Way’s Volunteer Impact Partnership (VIP) has increased organizational capacity to help nonprofits more effectively meet their missions through recruiting, engaging, and retaining high-value volunteers.
"VIP helped us to amplify our volunteer program. We are witnessing the results of a solid structure, enhanced coordination, and stronger leadership. Thank you for bringing these new skills and higher impact to Kindering." - Mimi Siegel, Executive Director, Kindering Center
95 organizations have participated in United Way's VIP 360 program between 2010 and 2015, each receiving an estimated $15,000 worth of services that enhanced their volunteer efforts at no cost to them. This is a great example of the value of our Executive Service Corps model, which leverages grant funds and professional volunteers to maximized services provided to nonprofit organizations.
See the impact of VIP 360 at Real Change.
Currently, VIP Volunteer Manager Corps is mobilizing volunteers to help organizations develop the systems and processes needed to effectively engage, recruit and retain high-value volunteers. 68 organizations have taken advantage of this offering to date!
The following are some past examples of our partnerships with philanthropy
Volunteer Generation Fund
For seven years Serve Washington, our state's commission for national and community service had a federal grant to expand volunteerism across the state. 501 Commons worked with Serve Washington and the Volunteer Centers of Washington to increase the number of people who volunteer, improve their volunteer experience, and help nonprofits do a better job of engaging volunteers, especially those with specialized and professional skills.
With the support of this fund, 501 Commons
- Developed emergency plans for low-income housing facilities housing thousands of low-income people, often with the support of veterans and active-duty military personnel.
- Increased the capacity of organizations to effectively recruit, engage and retain high-value volunteers.
Supporters of the I&R Program and Resource Directory
Nonprofits of all types have access to the first-in-the-nation directory of vetted consultants and nonprofit specialists who have been recommended by nonprofits. The Nonprofit Resource Directory also provides access to tools and best practices, "Best of the Web" links, training and networking events, a map of venues for nonprofits, and more. Plus, nonprofits can get free phone and email support from our Information & Referral (I&R) Program Manager. 501 Commons' website is visited by over 8,000 individuals (unique users) monthly, with many accessing resources and referrals found in the Resource Directory.
Our thanks to the following foundations who supported the the I&R Program, including the Resource Directory, as well as the 115+ consultants, capacity builders, and other service providers featured in the Directory: