As a nonprofit organization, you have been successful for many years. You have raised millions of dollars from an array of sources. You are well respected in the community and are doing wonderful things to help many people in need. Then, in 2008, the recession hits and the game changes. Grant funds from government and private funders begin to dwindle. Individual donors become reluctant to give because their own investment portfolios have suffered and dropped significantly. Your income drops by 50% in a one-year period. The demand for your services increases by 150% due to the recession. This is your new reality.
You are not alone; nonprofits throughout the country are faced with this new reality. It is the start of a tornado of events. First, there is panic. You start calling funders and begging for an exception to the grants process and try to convince them of the urgency of your situation. They are sympathetic but cannot change their processes just for you. You frantically search for other funding sources at the federal and state level. There are a few options but the timing is not good and the competition fierce. It is a long shot for you. You call current and past donors to convince them of your urgent situation but their resources are limited and they are not much help, if help at all. You meet with big businesses and corporations to try and get support but they too are strapped. This is your new reality.
The fact of the matter is today’s new reality means less money for all. It also means you must operate your nonprofit with maximum efficiency by cutting costs, reducing services, using more volunteers and, if necessary, downsizing your operation. This is not good news but it is the truth. There are no quick fixes or easy solutions for today’s nonprofit leaders. One thing is clear though, business as usual is a recipe for failure. You must be creative, strategic and malleable if you want to survive today. This goes for small and large nonprofits. Better times may lie ahead but you have to get to those better times to be able to benefit from them.
Today’s new reality is not the end of the world. It is seeing the world in another way and figuring out how to utilize your skills and the tools available to you to find better ways to be successful. Anything is possible if you can find your niche and focus your efforts differently. Be willing to try new things and create new relationships. Nonprofit leaders are resilient and they are warriors. Go fight the tough battles of today’s new reality and come back a winner. After all, that is why we are in this business in the first place; to fight for the benefit of others in need, even if we have to reinvent ourselves to get there.
You are not alone; nonprofits throughout the country are faced with this new reality. It is the start of a tornado of events. First, there is panic. You start calling funders and begging for an exception to the grants process and try to convince them of the urgency of your situation. They are sympathetic but cannot change their processes just for you. You frantically search for other funding sources at the federal and state level. There are a few options but the timing is not good and the competition fierce. It is a long shot for you. You call current and past donors to convince them of your urgent situation but their resources are limited and they are not much help, if help at all. You meet with big businesses and corporations to try and get support but they too are strapped. This is your new reality.
The fact of the matter is today’s new reality means less money for all. It also means you must operate your nonprofit with maximum efficiency by cutting costs, reducing services, using more volunteers and, if necessary, downsizing your operation. This is not good news but it is the truth. There are no quick fixes or easy solutions for today’s nonprofit leaders. One thing is clear though, business as usual is a recipe for failure. You must be creative, strategic and malleable if you want to survive today. This goes for small and large nonprofits. Better times may lie ahead but you have to get to those better times to be able to benefit from them.
Today’s new reality is not the end of the world. It is seeing the world in another way and figuring out how to utilize your skills and the tools available to you to find better ways to be successful. Anything is possible if you can find your niche and focus your efforts differently. Be willing to try new things and create new relationships. Nonprofit leaders are resilient and they are warriors. Go fight the tough battles of today’s new reality and come back a winner. After all, that is why we are in this business in the first place; to fight for the benefit of others in need, even if we have to reinvent ourselves to get there.
Tom Keith is the president of the Sisters of Charity Foundation of South Carolina
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