The nonprofit sector in the United States comprises 1.6 million organizations with an aggregate budget of about $820 billion. Ranging from grassroots groups run on $25,000 a year to multimillion-dollar charities that serve thousands of people, nonprofits are funded by government fees and grants, private-sector fees, and private giving by foundations, corporations and individual donors.

Three new trends have emerged in the nonprofit sector:

• A 5% annual rise in the number of organizations, which is outpacing the growth in funds and leading to intense competition for donor dollars
• A movement toward "venture philanthropy," in which donors view grant making as "investments" that reap "social returns"-an approach that reflects the mindset of venture capitalists
• Growing interest in adopting traditional business practices

Nonprofit leaders today are learning from the successes and failures of the business world.

Bain's Nonprofit & Public Sector experience

Since its inception, Bain & Company has provided pro bono strategy consulting services to more than 100 nonprofit organizations. Our efforts have been directed toward:

• Assisting arts and tourism organizations (such as the Toronto Symphony Orchestra and the John G. Shedd Aquarium in Chicago)
• Helping youth and social-service agencies (Boston's City Year program, the UCLA Johnson Cancer Center Foundation, America's Promise)
• Aiding municipalities (San Francisco's efforts to address homelessness)

Bain offices worldwide have long worked to strengthen their communities. In January 2000, the Bain partner group and a number of U.S. foundations funded the creation of The Bridgespan Group, an independent, 501(c)(3) nonprofit organization dedicated to applying leading-edge management strategies, tools and talent to help other nonprofits and foundations achieve greater social impact. The Bridgespan Group currently serves clients out of its Boston and San Francisco offices.

To find out more about Bain's work in this industry, please contact the practice.