At a recent meeting of the Heartland AAGP, someone asked the presentor (who was from a funding agency) whether funders are concerned that there are too many nonprofits in existence currently. Her response: "Absolutely!"
This is not a comforting thought to people who are working with relatively new or start-up nonprofits. So, what can you do to combat what may be a negative perception of new organizations? The presentor gave a few clues: 1) develop some type of collaborative network with other orgs. that provide similar services, so a funder won't think you are operating in a vacuum; 2) gather and report statistics showing that the people you are serving are not also being served by another similar organization; 3) obtain genuine letters of commitment from at least one other organization, validating your services.