KeyWords

Stewardship

Stewardship is a fundamental principle of managing and guardianship of resources entrusted to an individual or institution. It implies a strong sense of responsibility and accountability beyond control or possession, including the moral and social implications of using resources. Based on feudal and theological notions in the past, stewardship has developed into a more general idea of social responsibility and the interdependence of organizational and individual well-being.

Stewardship, as it is applied to nonprofit organizations, is an essential relationship management technique that goes well beyond the boundaries of just the solicitation of a financial gift. It entails showing a dedication to accountability, transparency, and ethical decision-making in the utilization of resources while at the same time building and nurturing relationships with volunteers, donors, and other stakeholders. Nonprofit organizations must disclose in-depth information regarding their financial health, governance, and program outcomes (Hon and Grunig 1999). This involves making their IRS Form 990 accessible to the public and periodic progress reports on their efforts to fulfill their mission. Nonprofits need to do more than report what they are doing; they need to show how their actions impact those they serve (Pressgrove 2017). This can be done through compelling storytelling, highlighting success stories, and demonstrating proof of impact. Nonprofits must also engage their supporters as individuals rather than simply as donors. This involves thanking them for their gifts, recognizing their particular interests and motivations, and making them feel respected partners in the organization's mission. Nonprofits ought to publicly acknowledge their donors' contributions, big and small. This can be achieved through donor walls, newsletters, social media, and other methods of public recognition.

Nonprofits need to develop long-term stewardship with stakeholders rather than transactional ones. This encompasses regular communication, asking for feedback, and inviting stakeholders to participate in events and activities. Stewardship relies on a range of critical theoretical foundations, such as resource dependency theory, which calls for coordinating relationships with external stakeholders, especially those controlling vital resources (Kelly 1998). It acknowledges that organizations rely on external resources and must develop relationships with those who control them. Nonprofits are highly susceptible to resource dependence because they usually depend highly on external funding sources. Stewardship is necessary to sustain those relationships positively and ensure the organization's long-term viability. Stewardship is also one of the underlying elements of excellence theory, which focuses on creating win-win relationships with stakeholders, i.e., donors (Hon and Grunig 1999). It suggests that organizations attempt to develop a sense of common purpose and value with stakeholders, generating a feeling of commitment and trust. Lastly, stewardship is an expression of social responsibility theory, which demands that organizations be accountable for the effect of their actions on society (Kelly 1998). It recommends that organizations go beyond the immediate impact of their activities and try to contribute to society positively.

Works Cited:

Kelly, K. S. Effective fund-raising management. Mahwah, NJ: Lawrence Erlbaum, 1998.

Hon, L. C., & Grunig, J. E. Guidelines for measuring relationships in public relations. Gainesville, FL: Institute for Public Relations, 1999.

Pressgrove, G. “Development of a Scale to Measure Perceptions of Stewardship Strategies for Nonprofit Organizations.” Journalism & Mass Communication Quarterly, vol. 94, no. 1, 2017, pp. 102–123.

Cultivation

Cultivation is a complex and dynamic process that goes far beyond just interactions with donors. It is a subtle process of relationship development, strategic communication, and resource development that has been intentionally designed across numerous domains. Cultivation, based on a farming metaphor of the effort in cultivation, has developed into one of the essential frameworks through which we can make sense of organizational, primarily nonprofit stakeholder relationship establishment and maintenance and how it is something that requires effort (Leonhardt 2011). This is not just an issue of securing Donors but really about establishing deep-rooted and significant relationships that allow organizations to develop and thrive in the long term and retain donors, volunteers, and clients long-term. Successful cultivation takes purpose, patience, and a long-term commitment to thoughtful interaction and presence within their communities.

Unlike superficial networking, which involves establishing contacts for the first time, cultivation is a procedure and an ever-changing process depending on an organization's mission. It is a sequence of strategic behaviors that engage and foster possible stakeholders interested in the organizational cause. In Polivy's (2014) study, cultivation is a six-phase lifecycle process: initiation, building relations, enhancing commitment, deepening involvement, strategic alignment, and long-term partnership. The phases cover how cultivation evolves and deepens, and activities must be ongoing to build relationships and respond to each stakeholder's changing needs. Those that do not come to an understanding of the lifecycle process will not create long-term, solid partnerships. This is why it is so essential for organizations to practice thoughtful cultivation when building community partnerships. 

Cultivation is not just a matter of engagement but actually the establishment of trust, credibility, and loyalty. Waters (2009) speaks about how to practice good cultivation involving an active application of access, positivity, openness, assurances, networking, and problem-solving approaches to cooperation. These conditions explain why cultivation requires organizations to proactively act and communicate with their partners, continually showing stakeholders the value and dedication of not only their relationship but also the mission everyone is there to support. Without these deliberate efforts, relationships are not going to be as profound and cannot be maintained, which will significantly impact an organization's achievement of goals as well as reputation and trust within its community. The same foundations also reside in the idea of stewardship since organizations need to nurture relationships carefully for long-term achievement. Cultivation and stewardship are partners because they are centered on relationship-building, openness, and thoughtful involvement. Nonprofits depend on these processes to maintain donor loyalty, engage volunteers, and provide accountability to their constituents. By viewing cultivation as an essential, multi-faceted effort instead of a transactional process, organizations can build more authentic, lasting relationships to ensure their overall success and viability.

Works Cited:

Leonhardt, Thomas. “The New World of Philanthropy.” The New York Times, 2011.

Polivy, John. “The Cultivation Lifecycle: A Framework for Building Sustainable Stakeholder Relationships.” Journal of Nonprofit Management, vol. 53, no. 2, 2014, pp. 123-145.

Waters, Richard D. “Increasing Fundraising Efficiency Through Evaluation: Applying Communication Theory to the Nonprofit Organization-Donor Relationship.” Nonprofit and Voluntary Sector Quarterly, vol. 40, no. 3, 2011, pp. 458-475.

Philanthropy 

Philanthropy, in its simplest definition, is giving that is motivated by a desire deeply rooted in some kind of motivation to want to do something for someone or something other than oneself or to advance a cause bigger than one's self-interest but still in areas one is passionate about. The idea of philanthropy in nonprofit organizations covers a broad range of motivations, from enlightened self-interest and personal gain to pure altruism and an extreme sense of social responsibility. Philanthropy can take a wide range of forms, such as donations of money, time such as volunteering, talent, such as offering one's skills to further a mission, and activism for social causes, such as voting for legislation that supports the organization's mission, although these are just some examples. Historically, philanthropy has been inextricably linked to religious and social values that stress the obligation to give to others and advance the common good. Nevertheless, philanthropy has become increasingly entangled with market forces; some examples are charitable giving and economic interests and how they now coexist to further organizational success.

Nonprofits working to recruit and retain donors need to understand the motives of their partners. The research shows us that giving is "U-shaped" along the income spectrum, with the lower and higher end giving more income to charity (Andreoni 2006). Tax codes, including charitable deductions, influence incentives to give significantly for some. Such policies can impose difficult trade-offs on donors, especially high-income donors, who have to balance the usefulness of charitable giving with the after-tax yield of other investment options (Kumar and Chakrabarti 2021). Nonprofits utilize numerous fundraising techniques to solicit gifts, such as direct solicitation, donor recognition programs, capital campaigns, and special events. Their effectiveness can be impacted by the organization's mission, reputation in their community, and shifting donor behavior landscape due to factors such as the economy or politics. The impact of Philanthropy on market forces is significant. It creates questions regarding the ability to disrupt current power dynamics and advocate for social change to create more equitable giving experiences. The beginning of social entrepreneurship and impact investing, which also aim to produce both social and financial returns, echoes the diversity of what philanthropy can look like as well as the market (Van Steenburg et al., 2022). To have successful philanthropy frameworks, organizations also need to practice cultivation and stewardship because these things go hand in hand with making organizations successful and long-lasting within their communities.

Works Cited:

Andreoni, James. “Philanthropy.” Handbook of the Economics of Giving, Altruism and Reciprocity, vol. 2, edited by Serge-Christophe Kolm and Jean Mercier Ythier, Elsevier B.V., 2006, pp. 1201–1270.

Kumar, A., and S. Chakrabarti. “Charity Donor Behavior: A Systematic Literature Review and Research Agenda.” Journal of Nonprofit & Public Sector Marketing, 2021, pp. 1–46.

Van Steenburg, Erin, et al. “The New World of Philanthropy: How Changing Financial Behavior, Public Policies, and COVID-19 Affect Nonprofit Fundraising and Marketing.” Journal of Consumer Affairs, vol. 56, no. 3, 2022, pp. 1079–1105.

Community:

In nonprofit development, community refers to the collective body of individuals, organizations, and institutions that engage with and contribute to a nonprofit’s mission. It is both a social structure and an ongoing process, encompassing relationships, shared values, and mutual investment in social change. Unlike a static or geographical concept of community, the nonprofit sector understands it as something constructed through participation, trust-building, and collective action. A nonprofit’s community includes donors, volunteers, beneficiaries, advocacy groups, and local or global networks that form an ecosystem of support and collaboration. These individuals and groups are not merely passive recipients of services but active contributors who shape the organization’s identity and impact.

From a social science perspective, community is often conceptualized as both imagined and material—a term rooted in the work of Benedict Anderson. In nonprofit development, this means that communities exist through tangible interactions, such as volunteer engagement and donor contributions, but also through the narratives that unite individuals under a common cause. These narratives shape identity, belonging, and the perceived legitimacy of an organization’s mission. A well-established community does not merely support a nonprofit; it actively co-creates its impact through advocacy, fundraising, and program participation.

A community is also a dynamic and evolving entity rather than a fixed set of stakeholders. Nonprofit professionals must recognize that communities are diverse, intersectional, and embedded in power structures. Different groups within a community experience systemic inequities, and nonprofit engagement must be intentional about inclusivity, accessibility, and representation. Theories of social capital, particularly those articulated by Pierre Bourdieu and Robert Putnam, highlight how different types of community relationships—bonding, bridging, and linking social capital—shape an organization’s ability to mobilize resources and influence policy. A nonprofit that fosters strong bridging capital, or connections between diverse groups, is more resilient and adaptable than one that relies solely on a homogenous supporter base.

Furthermore, the community in nonprofit development is not just an audience to be served but a co-creator of solutions. Effective nonprofits move beyond top-down service delivery and instead engage communities in participatory decision-making, advocacy, and leadership roles. This aligns with Paulo Freire’s concept of critical consciousness, where individuals within a community become active agents of change rather than passive recipients of aid. When nonprofits foster meaningful community participation, they ensure that their work is responsive to real needs rather than imposed solutions.

Ultimately, community in nonprofit development is a foundation for sustainability, legitimacy, and impact. It requires constant investment in relationships, trust, and shared ownership of the mission. A nonprofit with a strong, engaged community is not only more effective in achieving its goals but also more resilient in times of financial or political uncertainty. Building a community is not simply a matter of outreach; it is a strategic and ethical commitment to partnership, equity, and collective action.

Works Cited: 

  Carlson, Erin Brock. “‘Who Am I Fighting For? Who Am I Accountable To?’: Comradeship as a Frame for Nonprofit Community Work in Technical Communication.” Technical Communication Quarterly, vol. 32, no. 2, 2023, pp. 165–80, https://doi.org/10.1080/10572252.2022.2085810.

  Lim, Sungdae, et al. “The Nonprofit Role in Building Community Social Capital: A Moderated Mediation Model of Organizational Learning, Innovation, and Shared Mission for Social Capital Creation.” Nonprofit and Voluntary Sector Quarterly, vol. 53, no. 1, 2024, pp. 210–35, https://doi.org/10.1177/08997640221146965.

  Shaw, Sally, and Justine B. Allen. “‘To Be a Business and to Keep Our Humanity’ A Critical Management Studies Analysis of the Relationship Between a Funder and Nonprofit Community Organizations.” Nonprofit Management & Leadership, vol. 20, no. 1, 2009, pp. 83–96, https://doi.org/10.1002/nml.242.

Strategy:

In nonprofit development, strategy refers to the intentional planning, implementation, and adaptation of actions that enable an organization to fulfill its mission effectively and sustainably. It is both a structured framework and an evolving process, requiring nonprofits to balance short-term operational needs with long-term impact and growth. Unlike tactics, which focus on specific actions, strategy is a higher-level approach that integrates fundraising, stakeholder engagement, advocacy, and program development into a cohesive vision. A strong strategy ensures that a nonprofit’s resources, efforts, and messaging are aligned with its mission, maximizing its ability to create meaningful change.

A nonprofit’s strategy is shaped by internal priorities, external constraints, and the broader social and political landscape. Drawing from strategic management theories, nonprofits operate within an ecosystem of funding structures, policy regulations, and power dynamics. Scholars like Henry Mintzberg describe strategy as both deliberate and emergent, meaning that while nonprofits must develop structured plans, they must also remain adaptive to new opportunities and challenges. A well-developed nonprofit strategy includes mission alignment, resource development, stakeholder engagement, impact measurement, and scalability. Each of these elements plays a critical role in ensuring that a nonprofit remains financially viable while staying true to its core objectives.

From a sociological perspective, nonprofit strategy also involves navigating power structures and influencing social change. Bourdieu’s theory of capital and field suggests that nonprofits operate within networks of economic, social, and cultural power, requiring them to strategically position themselves for funding, influence, and legitimacy. This means nonprofits must negotiate their relationships with foundations, governments, and corporations while staying accountable to the communities they serve. The balance of power between donors, policymakers, and program beneficiaries shapes how a nonprofit functions, making strategy an inherently political process.

A distinct feature of the nonprofit strategy is its mission-driven nature. Unlike corporate strategy, which prioritizes financial gain, nonprofit strategy centers on social impact, ethical considerations, and participatory governance. However, the increasing professionalization of the nonprofit sector has led to hybrid strategies, blending business acumen with advocacy and service delivery. The rise of social enterprises and impact investing further demonstrates how the strategy must evolve to meet financial sustainability while remaining values-driven. A successful nonprofit strategy does not simply focus on securing funding but considers how to leverage partnerships, policy influence, and grassroots organizing to create systemic change.

Moreover, strategy in nonprofit development requires systems thinking—a holistic approach to problem-solving that acknowledges the interconnectedness of economic, social, and environmental factors. Strategic nonprofit leaders do not just react to challenges; they anticipate and influence them through coalition-building, policy advocacy, and innovative funding models. The ability to adjust strategy in response to emerging trends, whether in philanthropy, technology, or community needs, is a hallmark of effective nonprofit leadership.

Ultimately, nonprofit strategy is not just about survival—it is about transformation. It enables organizations to mobilize resources, strengthen partnerships, and drive meaningful, systemic change. A nonprofit without a clear strategy risks fragmentation and inefficiency, whereas one with a strong, adaptive strategy can navigate complexity and create lasting social impact. Successful strategy requires vision, adaptability, and a deep understanding of the power dynamics that shape the nonprofit sector. It is not a static plan but a continuous process of learning, refining, and responding to the evolving needs of both the organization and the communities it serves.

Works Cited:

  Kim, Saerim. “Nonprofit Revenue Strategy and Downside Risk: Applying Portfolio Theory and Extreme Value Theory.” Nonprofit and Voluntary Sector Quarterly, vol. 53, no. 4, 2024, pp. 948–73, https://doi.org/10.1177/08997640231191792.

  Brusseel, Aaron, et al. “How Can Nonprofit Policy Advocacy Influence Policymakers? A Factorial Survey Experiment on the Effects of Nonprofit Advocacy Strategies on Policymakers’ Willingness to Act.” Nonprofit and Voluntary Sector Quarterly, vol. 54, no. 2, 2025, pp. 241–66, https://doi.org/10.1177/08997640241252616

  Pettey, Janice Gow. Nonprofit Fundraising Strategy: A Guide to Ethical Decision Making and Regulation for Nonprofit Organizations. 2nd edition., WILEY, 2013, https://doi.org/10.1002/9781118631324.