The rapid growth of small, private philanthropies has created a burgeoning market of businesses providing “back-office” services that larger foundations are able to perform themselves, says Reuters.
The number of new foundations, many of them family-based, has doubled to nearly 80,000 in the past decade. Most have assets of less than $1-million, according to the Foundation Center.
Many such groups are ill-equipped to handle accounting, administrative, and infrastructure issues so turn to outside companies for support services, providers say.
“Smaller nonprofits are so overwhelmed with the need to raise money, support their programs, increase awareness of their cause, and handle their back-office stuff,” said Jeff Russell of Easy Office, a Boise, Idaho, outsourcing firm. “So for them, their main goal is for the administration headache to be taken away from them.”