Nonprofits made tremendous strides in the 20th century, and faced significant challenges. The landscape of the nonprofit sector has been fundamentally reshaped by decades of federal and state policy changes, budget cuts and privatization. During the same time, nonprofits saw additional challenges from information technology, evaluation and data reporting, marketing and pressures to leverage and collaborate.

So what is different about a 21st century nonprofit? You will find a range of answers from different nonprofit leaders. Here are some of my thoughts.

I believe that, by and large, nonprofits do good work, and don't need to be "fixed." Often, however, nonprofits are greatly stressed by changes in the external environment as well as their own developmental challenges. Many nonprofits could expand their capacity, especially with additional resources and technical assistance.

Moving forward in the 21st century, nonprofits will probably find continuing challenges. There is a need to leverage more often, and with new resources and partners. Ongoing external pressures will require nonprofits to collaborate more strategically, to impact and improve community services and the service delivery system. Hopefully, nonprofits will move more to the center of our communities, leading, convening and guiding dialogue about civil society. Public policy work will become increasingly important, and nonprofits will need to take the lead on key issues to ensure that the sector is better represented in local and state decision-making. Building diversity will become increasingly central to all aspects of work.

It will be good if nonprofits can build more streamlined, practical program evaluation systems. That will require both advocacy to change government funder data reporting requirements, and capacity building around evaluation. Can nonprofits build evaluation capacity, and work to have funders coordinate more on data, evaluation and reporting? The sector may need to advocate for more realistic requirements. Nonprofits may also advocate for more funding for evaluation and operations.

After decades of discussing the importance of clients, consumers and customers, nonprofits may be able to integrate customers into planning and evaluation. Strategic partnerships will increase: with other nonprofits, grant makers, community groups, business and government. Nonprofits will continue to seek to diversify funding by increasing donor income. And they will utilize technology much more often for communications, in order to reduce meeting and travel time and costs. Making progress in these areas will build nonprofit sustainability.

21st century foundations will become increasingly strategic in grant making, seeking to leverage resources. People will talk more about investment, and the return on investment. Government funders will be pressured to streamline their data and reporting requirements, and to coordinate between governmental agencies. Otherwise, those states that continue with unduly harsh requirements may find the effectiveness of government entities and nonprofits is compromised.

We will shape that 21st century future together - by the priorities we set with public policy, community building, collaboration, leveraging, funding, programs and other factors.