Today’s New Reality

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.

Tom Keith is the president of the Sisters of Charity Foundation of South Carolina

Advice that May Help Achieve Nonprofit Success in the Remainder of 2009

In speaking with several nonprofit executives over the past few months, it is evident that nonprofit organizations, as are others, are still struggling. Money is really tight and fund raising is down. As we hit the halfway point for the year, many organizations are facing the reality that this is not going to be a successful year and certain changes are going to be necessary. Some of these changes may include staff layoffs, downsizing of office space, reducing or eradicating projects that involve printing and mailing costs and eliminating travel, conferences, training and other opportunities that would enhance the organization. I will share what I believe are important elements for surviving these difficult economic times.

• Go back to your core annual donors (both present and lapsed) and ask them to support you again. If the ask was made through an annual donor letter campaign in the past, you may want to make a personal phone call this time. Who knows, a $100 gift might turn into a larger gift if you have an opportunity to explain your circumstances.

• You should already have personal contact with your major gift donors, but I would use the same approach. If they gave $5000 last year or in previous years, have a frank conversation with them about your situation. It may help shore up the same amount of the previous gift or even secure a larger gift. But you need to walk away with something from these core supporters.

• Explore partnerships that may involve government dollars. There are a lot of funds are out there through the federal government and they are from a variety of sources. There is stimulus money, faith-based funds and other sources through various governmental agencies. Learn about these opportunities and see if there is a good fit for your organization. Do your homework and find a partner if that is what it takes.

• Build relationships with foundations whose mission coincides with your mission. Let them hear from you and learn about you. Communicate throughout the year and not only when you are seeking funding. A foundation feels much more comfortable providing funds to an organization it knows and trusts.

• Push your board and other internal stakeholders to give and to help obtain funds. They are as close as anybody to your mission. Fund raising should never be a complete staff function, but staff can facilitate ways for others to find donors. I would start with your board.

The economic climate is troublesome and there are many external factors that are affecting success, but make sure you are doing everything you can with your organization’s internal decisions and strategies. The year is only half over and there is still time to have some successes in the second half of the year. Good luck with your efforts.

Tom Keith is the president of the Sisters of Charity Foundation of South Carolina.