Leaders from family foundations across Orange County recently gathered for an engaging discussion on the future of philanthropy at the Orange County Community Foundation’s Family Foundation Alliance quarterly meeting. The program–Innovative Philanthropy: Building a Resilient Nonprofit Sector in Orange County–featured insights from Lindsey Spindle, President of Samueli Family Philanthropies, and Efrain Escobedo, President & CEO of the Center for Nonprofit Management. Together, they explored the challenges nonprofits face, and the bold solutions philanthropy can help drive forward.
Lindsey Spindle opened the conversation by sharing findings from the “Orange County Nonprofit Needs and Capacity Assessment,” which surveyed over 400 organizations and 600 nonprofit leaders to better understand the pressures nonprofits face in carrying out their vital missions. The results were striking, with 70% of respondents indicating that staff members are juggling multiple roles, leading to burnout and inefficiency.
Financial instability is also a pressing concern, with more than half of nonprofits lacking access to adequate financial tools such as lines of credit or loans. Collaboration, while recognized as a powerful tool for impact, remains underfunded and difficult to sustain. Most critically, the assessment found that 82% of nonprofits struggle to secure multi-year, unrestricted funding, limiting their ability to plan for the future, invest in their teams, and build the infrastructure needed to create lasting change.
Click to read the full report.
Spindle emphasized the urgent need for funders to rethink their approach to philanthropy, explaining that the study was conducted to uncover the realities nonprofits face and help funders identify critical gaps. “We wanted to give nonprofits an opportunity to tell the truth about the sector because we have big blind spots as funders, and we need to find the gaps,” she stated.
The study revealed that many funders prioritize launching new initiatives rather than sustaining and strengthening what is already working. She cautioned against this short-term thinking, highlighting that nonprofits are struggling with limited resources and underfunded operations. “We love lean teams, but there’s a huge difference between lean and anorexic……our social sector is a starved sector,” she said. Spindle also stressed the importance of trust in philanthropy, urging funders to engage nonprofits as true partners by listening to their needs rather than imposing external solutions.
Efrain Escobedo built upon this theme, challenging attendees to rethink the way philanthropy interacts with the nonprofit sector. He claimed that nonprofits must move beyond the expectation of mere survival and instead be supported in ways that allow them to thrive. He proposed a bold idea — to recognize the social impact sector as a vital industry cluster of the economy, one that is measured, valued, and supported just as other major industries are. Without this recognition, he warned, philanthropy risks continuing a cycle where nonprofits are expected to operate with minimal resources while delivering ever-increasing impact.
Click to view the presentation.
Escobedo also highlighted the potential for nonprofits to explore social entrepreneurship, generating revenue through innovative business models rather than relying solely on charitable contributions. He pointed out that many funders encourage nonprofits to adopt for-profit principles, but without investment in capacity building, these expectations are unrealistic. “Nonprofits are tired of constantly being asked to be resilient and they are taking a beating,” he said. “They need and deserve to thrive.”
The conversation extended into a lively Q&A session, where funders were urged to think beyond traditional grantmaking and explore how they can use their full balance sheet of assets for impact. A compelling example of this approach is the Gonzalez family, owners of Northgate Markets, who have transformed their markets into community gathering spaces to serve as hubs for education, workforce development, and social support. Their model exemplifies what it means for philanthropy to go beyond transactional giving and embrace holistic, community-driven solutions.
As the discussion ended, a powerful takeaway emerged: the return on investment in nonprofit funding should not be measured solely by the number of people served, but by the overall strength and sustainability of the organization itself. Funders must recognize that their role is not just to support causes but to invest in the long-term health of the organizations driving impact in their communities.
The event left attendees with a call to action: How will philanthropy evolve to create lasting change in Orange County? The challenges facing nonprofits are significant, but with intentional shifts in funding strategy, deeper collaboration, and a commitment to treating the sector as a vital part of the economy, philanthropy can play a transformative role in building a thriving nonprofit sector.
For those unable to attend, the conversation is just the beginning. The Family Foundation Alliance calls on funders to step forward, unite, and take action. By collaborating, we can move Orange County’s social sector from struggling to thriving, transforming dialogue into real, lasting impact. Join us in driving meaningful change that reshapes our community for the better. To learn more or join about the Family Foundation Alliance, please visit: https://oc-cf.org/ffa.
