| Nonprofit Organization Survival Tips: | | | | Install a thermostat timer and zoned heat/air |
| Surviving and Thriving in Tough Economic Times | | | | conditioning. Install light switches with motion sensors, |
| Seth Bloom, Bloom Consulting, Inc. | | | | programmed to turn lights on when someone enters a |
| Recession, inflation, deflation, correction, etc., whatever | | | | room and turn them off after not sensing any motion in |
| you want to call what we’re going through the | | | | the room after a few minutes. These are particularly |
| simple fact is that many of us have already made | | | | cost-effective in bathrooms! |
| adjustments at home and in our businesses, and most | | | | Educate your staff about your monthly utility bills and, |
| of us may need to consider further belt-tightening in | | | | where practical, challenge them to help reduce the |
| the near future. As community leaders, many of us are | | | | bottom line. For example, encourage everyone to |
| also wrestling with the impact this economy is having | | | | wear a sweater in cooler months and turn off their |
| on our nonprofit organizations. As consultants | | | | computers at the end of the day. Communicate |
| specializing in nonprofit fundraising, strategic planning, | | | | monthly results. |
| marketing and leadership development, Bloom | | | | If a vacant position can be left unfilled for the time |
| Consulting has had extensive experience with the | | | | being without adverse consequences, consider |
| financial challenges that all nonprofits face from time to | | | | delaying the hiring. In extreme cases, you may need to |
| time, and we recognize the difficulties that the current | | | | consider a temporary salary/hiring freeze and/or |
| situation poses. Fortunately, we believe there are | | | | layoffs. Consider using an intern and/or volunteers |
| ways to reduce its impact and insure that your | | | | rather than hiring a new staff member. Inform your |
| nonprofit not only survives, but thrives, in the days | | | | staff about volunteer opportunities that may otherwise |
| ahead. | | | | require hiring someone ... office personnel, lawn |
| This list is for anyone with a common sense approach | | | | maintenance, etc. There may be recently unemployed |
| to surviving and thriving in tough economic times. While | | | | individuals associated with your organization who |
| nonprofit organizations should consider many of these | | | | would welcome the opportunity for meaningful |
| initiatives, they may not all apply to every nonprofit. | | | | volunteer work. |
| Yours may have already adopted some, while others | | | | Consolidation and collaboration can produce significant |
| may seem too simple or too difficult. Chances are | | | | cost savings. For example, a small class could become |
| you’ll find a few here to consider, and | | | | one class. Co-sponsoring events will enable your |
| undoubtedly others will stimulate your own creative | | | | organization to share expenses while increasing your |
| ideas. | | | | exposure to a new constituency. |
| The Big Picture | | | | Consider bulk purchasing of staples such as cleaning |
| Don’t panic! The good news is that nonprofits | | | | and office supplies. Band together with other nonprofit |
| have weathered economic storms before. That being | | | | organizations in order to negotiate lower fees. |
| said, we all realize this will be a challenging period. | | | | Establish a co-op program offering all affiliates |
| Many of the recommendations translate into cutting | | | | opportunities to serve the organization through service |
| back, or asking more of others. Fortunately, not | | | | or to pay a nominal fee. Service can include |
| everyone is being as adversely affected by the | | | | committee work or actual hands-on cost savings |
| economy as others, and some may even be doing | | | | services, but ultimately, your supporters will be more |
| quite well. Keep in mind that some people can and will | | | | engaged – and committed. |
| respond by doing more. | | | | Evaluate every program ... question everything. If only a |
| Communicate! Keep your supporters and staff | | | | handful of people are coming to a particular program, |
| informed about actions you’re taking and how | | | | perhaps it’s time to eliminate, modify, or at least |
| they can be part of the solution, whether through their | | | | to readjust the number of times the program is |
| increased financial support, or simple things such as | | | | offered. |
| turning off lights when they walk out of a room or | | | | Take advantage of every store program offered to |
| wearing a sweater inside the building since the heat is | | | | nonprofits ... supermarket scrip, free credit card |
| turned down a few degrees. | | | | programs, etc. Establish a committee of your thriftiest |
| Ask your staff and volunteers to offer suggestions of | | | | shoppers to manage this effort. |
| ways to save money or raise funds. Instill a sense that | | | | Increase income: |
| the organization is theirs... and that its challenges are | | | | Identify and prioritize, distinguishing real needs from |
| theirs to meet. . | | | | things that would be nice to have or do. Secure |
| Don’t be penny wise but dollar foolish. If the roof | | | | funding for these needs, whether it be through a |
| needs fixing and neglecting it will only cost you more in | | | | “quiet campaign” among supporters or |
| the long run. Bite the bullet. Compelling needs will be | | | | through an organization wide campaign. |
| supported. | | | | Your board should be the best informed group |
| Mindset/Behavior Changes: | | | | regarding the impact of the downturn, and board |
| Ask a volunteer (or a few) to host or underwrite a | | | | members may be among the most inclined to make |
| social reception for distinct groups such as | | | | additional elective contributions. Consider asking board |
| long-standing contributors, seniors, young families, etc. | | | | members to make a contribution toward a defined |
| Doing so can shift some of the financial burden off of | | | | goal, as if there were a mini-campaign. The goal could |
| the organization budget, and you’re offering | | | | correspond to a budget shortfall or the amount |
| these groups something for nothing – a great | | | | needed to preserve an important program, as long as |
| way to demonstrate appreciation, increase | | | | the things to be paid for are among your identified |
| involvement, strengthen retention, etc. | | | | needs. Depending on magnitude of the needs, consider |
| Everyone should have a will and everyone can include | | | | approaching select major donors. If the goal is |
| something for their favorite nonprofit organization, even | | | | substantial enough to require universal support, publicize |
| if it’s contingent upon any money being left after | | | | after 50% or 60% of the goal is reached, and state |
| other bequests have been made. Leadership should | | | | the challenge to make contributions toward reaching |
| set the example by signing Letters of Intent. Just | | | | the total goal. |
| imagine how much easier this tough economic period | | | | Have leadership – officers, board, staff – |
| would be if generations before had established a | | | | identify 1 – 3 people perceived to have |
| sufficient endowment fund generating supplemental | | | | significant wealth and/or access in order to nurture |
| income. This is our obligation for generations to come. | | | | establish a relationship, identify areas of interest, and |
| Maximize all recognition opportunities, whether for | | | | ultimately ask for their support. |
| financial contributions, in-kind services or volunteer time. | | | | Identify potential new donors by considering people |
| While public recognition – honor roll lists, plaques, | | | | formerly affiliated with your organization, relatives of |
| etc., – is very effective, it’s not the only | | | | current supporters, donors to similar organizations, etc. |
| option and other ways are also greatly appreciated. | | | | Consider a single, annual ask for your potential major |
| Sometimes a handwritten note or phone call to say | | | | donors to help support operations of the organization |
| “thank you” will go a long way. Inspire | | | | rather than solicitations for every event/initiative. Price it |
| others and positively reinforce desired behaviors | | | | high enough to cover the cumulative of top categories |
| through lists, stories, announcements, etc. | | | | of every event. Don’t solicit these people again, |
| You may need to use your line of credit from the bank | | | | but invite them to attend and recognize their support. |
| to get through some rough periods. If you don’t | | | | Rater higher-end prospects and pre-solicit them in |
| have a line of credit, don’t assume it’s | | | | advance of fundraising events in order for you |
| impossible to obtain one now. While credit has been | | | | prospective donors to have a sense of a specific gift |
| extremely tight and lines of credit may generally be | | | | to consider. |
| less available than they were prior to the downturn, if | | | | Offer sponsorship opportunities of events, your |
| your nonprofit has a good relationship with its bank, | | | | website, etc., to local businesses. Such sponsorships |
| you should be able to obtain one. If your credit | | | | create win-win partnerships with businesses by |
| worthiness is shaky, consider asking individual financial | | | | providing visibility to the community. For businesses, |
| supporters to co-sign on your behalf. | | | | donations are often considered a marketing expense. |
| Consider “borrowing from yourself.” Your | | | | If your nonprofit is considering dues or other fee |
| organization’s rainy day may be here, so | | | | increases, make modest annual adjustments rather |
| it’s OK to access endowment/reserve funds, | | | | than hitting people with a significant increase all at once. |
| ideally with a plan to repay the borrowed amount for a | | | | Offer free estate planning seminars highlighting tax |
| future rainy day. | | | | savings options, including planned giving. |
| Remember, not everyone is being adversely affected | | | | Maximize use of your building by renting available |
| by the economy. Form a Task Force to identify real | | | | space to outside groups (bingo, dance clubs, etc.). |
| needs and identify potential sources of funding. | | | | Charge outside vendors a fee to be eligible for use in |
| Develop a menu of programs to address the identified | | | | your facility ... caterers, florists, etc. All vendors should |
| needs and make them available to select prospects | | | | be asked for their financial contributions. |
| for funding. For example, the need for program | | | | Offer babysitting on site for a nominal fee during |
| expansion or facility enhancement may resonate | | | | events, business hours, and programs. Not only will this |
| particularly well with potential donors. | | | | be an appreciated service, it’s conceivable you |
| Don’t apologize for asking for support or for | | | | can secure volunteers to provide the service and/or |
| considering cost savings. To the contrary, supporters | | | | receive enough income to make a modest profit for |
| will want to know you’re being good stewards | | | | the organization. |
| of their support. | | | | Constantly urge supporters to consider matching gifts |
| Keep in mind, if you don’t ask, the answer is | | | | programs available through their employer. Often |
| always “no.” | | | | schools or programs open to the community are |
| Cost savings: | | | | eligible for corporate matches. |
| Where possible, renegotiate terms on longstanding | | | | Conclusion: |
| contracts as they come up for renewal. Shop around. | | | | Chances are at some point the current economy will |
| Minimize postage. Consolidate mailings and ask | | | | challenge your nonprofit organization to consider |
| supporters and members to receive information such | | | | creative strategies for minimizing the impact on your |
| as your newsletter, membership directory and | | | | delivery of service. This cannot be a period of |
| program announcements through e-mail. | | | | “business as usual.” While there are many |
| If your organization doesn’t do so already, | | | | external factors beyond your control, there are many |
| require reservations in advance for events where | | | | initiatives to consider to enable nonprofits continue to |
| food will be served so excess food won’t be | | | | fulfill their mission. The organizations that embrace this |
| ordered. Consider rescheduling/canceling programs | | | | challenge will be the organizations that will survive the |
| with limited interest. Charge people who register but | | | | current situation and thrive in the long-run. |
| don’t show up. | | | | |