Real estate value is driven by the strength and stability of the community.  Nonprofits (“NP”) can be the glue which holds together society.  

The “glue” needs our help!

GOVERNMENT

The biggest NP – and most invasive – collects taxes, controls bank lending rates, provides (significant) protections from enemies foreign and domestic, creates and enforced regulations on what we can do when, where, and how.  

Nevertheless, certain issues are never fully addressed by government,  as we prefer to elect those who promise what we want and as we collective ignore tougher need issues (e.g., global warming, nuclear proliferation, massive budget deficit, and social security trust fund collapse).

AI IMPACT ON JOBS

The potential “reduction in force” (“RIF”) by (local) government, by application of AI powered “virtual co-workers”,  is projected in the Wall Street Journal to be in the 10%  – 20% by the end of this decade. 

Aromal Jayaraj Shikky, founder of Memmoo.com (a client of Chess Law Firm), has developed over 500 “virtual co-workers” in the USA, Europe and India, and has generally found that 70% of current work is handled well by AI and 30% requires some oversight by a human (so one human can manage the work once done by up to three people). 

EDUCATION

Public and private educational institution NPs continue to produce graduates, many of whom will remain at home with their parents due to reduced career employment opportunities. Marriage, kids, house purchase are delayed / skipped. 

ORGANIZED RELIGION

Many, though not all, organized faiths are facing aging members, reduce donations, underutilized facilities, and disconnection with prospective members under 40 years old.

MUSEUMS

Many, though not all, are facing less donations and support from government, and a disconnection with prospects under 40 years old, along with being asset heavy (e.g., buildings and collections). 

PRO SOCIAL

The need for social services increases with aging populations and more people without a job (and health insurance). Government and donation funding have (generally) reduced for social service NPs. Many individuals with funds to donate tend to favor “hard assets” – where the funds buy or build something (maybe with their name plate attached) – versus funding of services.

POLITICS

We have the smarts  to lean into AI for the betterment of society.  Do we have the personal commitment to step away from our screens and engage our neighbors, nonprofits and businesses? 

“…The democratic process ultimately depends on a shared witnessing. It requires bodies, minds and souls that are present, can see each other, read each other, join together.” Peggy Noonan, Wall Street Journal, 20 Jun 26, page A13. 

QUESTIONS NEEDING YOUR INPUT

1. What NP is applying AI to provide more cost-effective services?
2. Which local government is serving as a catalyst to improving an existing NP?
3. How has an NP adjusted their governance to be nimbler in recognition of and taking timely action in response to  opportunities and threats?
4.  Which organized religion has effectively pivoted to serve those under 40?

BOTTOM LINE

The NPs serving the most vulnerable tend to be the NPs which are the more vulnerable to swings in funding and increasing need for services.

Some NPs remain asset-heavy (e.g., buildings and land) when nimble is required for survival. 

We in business are needed to provide our insight and experience to helps NPs adapt, to go from survival to thriving.

NOTE – We begin this week holding quarterly seminars for nonprofits, focusing on their challenges and developing solutions to address now what is coming soon from application of AI. We will record these sessions and post for your review short videos and articles.

To discuss how these shifts may affect your organization or strategy, contact Rick Chess at 804-241-9999 or rick@chesslawfirm.com