Resources for Difficult Times (Part I)
Articles
Blog posting by Michael Seltzer, October 2008
A to Z Survival Guide for Uncertain Times
Michael Seltzer, a regular contributor to PhilanTopic, has compiled his past writings and strategy recommendations learned from grantees, clients, and fellow consultants. This is literally an alphabetic list of tips for things organizations need to think about or do in these economic hard times.
Global Policy Forum: Monitoring policy making at the UN
www.globalpolicy.org/ngos/fund/index.htm
See 2008 articles on NGOs and the economic crisis compiled from various sources, such as, “Why Fundraising May Flourish While Business Founders” (from Canadian Fundraiser), “Tight Belts, Tough Choices on Charities” (from Civicus) and a 2009 article, “Is the Economic Mess going to Kill 100,000 Nonprofits (Alternet)
NGO Pulse from Sangonet: A Development Information Portal for NGOs in South Africa
www.ngopulse.org/blogs/ngos-and-global-financial-crisis
A compilation of articles capturing the views and opinions expressed by various local and international commentators about the impact of the economic crisis on NGOs in South Africa and other parts of the world. Articles are pulled from a variety of sources, such as USA Today and The Chronicle of Philanthropy.
How Charities Cope With a Troubled Economy – from the Chronicle of Philanthropy
philanthropy.com/financial_crisis/
The financial crisis has many charities worried about how to manage their finances, raise money, and keep up with growing demand for services. To help readers navigate the challenges, The Chronicle has compiled recent stories, live discussions, and statistics about how charities deal with these economically uncertain times in these categories: Careers, Fundraising, Managing, Live Discussions. The following are the kinds of articles you will find on this site:
- “Charities think twice about using expensive executive-search firms”
- “How Board members can respond to investment turmoil”
- “Mergers and Alliances: Should More Charities Consolidate Operations?”
2009 Annual Letter from Bill Gates: The Economic Crisis
www.gatesfoundation.org/annual-letter/Pages/2009-economic-crisis.aspx
Slideshow: Bill Gates on the Economic Crisis
www.gatesfoundation.org/annual-letter/Pages/slideshow-bill-gates-economic-crisis.aspx
The 2009 Nonprofit Economic Climate: Managing through the Downturn
In December 2008, Fiscal Management Associates (FMA) and the Nonprofit Finance Fund (NFF) joined together to present a workshop that offered nonprofit leaders concrete tools to lead their organizations during this challenging time. The sponsors of the event, The Clark, Robin Hood, and Tiger Foundations, have agreed to allow the tools and presentation for public download.
Topics include:
- How the current market environment will affect nonprofits
- Practical scenario planning and modeling: how to develop smart, strategic responses
- Recognizing the hidden opportunities to strengthen your standing
- Revenue and expense considerations
- Cash Flow Management and managing credit
- Role of the Executive Director and Board in leading the organization through a downturn
See especially: Recession Checklist
Support Center for Nonprofit Management
The New York-based Support Center for Nonprofit Management sometimes features an article on its home page in a section called In The News and recently featured this article that appeared in the Journal for Nonprofit Management in 2003: Getting Down to the Details: Conceptualizing Organizational Sustainability in a Changing Economy by Marilyn Struthers. The article includes Case studies of Canadian NGOs highlighting Resourcing Practices that contribute to sustainable practices, as relevant in 2009 as they were in 2003. Key Resourcing Practices include, to name a few, Core Resourcing, Partnership Resourcing, Cost Recovery Practice, Cost Avoidance Practice, Fundraising.
Also read about four key capacities of financially vibrant organizations:
- Boards undertake the specific project of developing a model of resource sustainability;
- there is a congruence of resource models with an organization’s governance model and organizational culture;
- organizations are very clear about the niche they have chosen to occupy in their work;
- the governance of an organization includes oversight of the mission in relation to resourcing practices.
Surveys
- January 2009 InsideNGO and PANO survey. InsideNGO member Human Rights Watch conducted a survey among InsideNGO and PANO (nonprofit HR directors in New York City) members on response tactics such as hiring freezes, reduction in annual increases, etc. 100+ organizations responded.
- In November 2008 the Bridgespan Group conducted a survey of 800 nonprofit leaders. This article summarizes the main survey themes including this excerpted highlight: “Operations and finance professionals, along with colleagues in fundraising, are among the first to feel the effects of a weakening economy on an organization’s overall health. As such, they are frequently the first to create plans and to take action to help sustain their organizations. Here we share steps some of the organizations we’ve spoken to have taken, in an effort to learn more about managing successfully through tough times.” Here are the survey results.
- The American Society of Association Executives released two Surveys in February 2009. While targeted to associations you may find the results informative nonetheless:
- Associations are facing tough choices as they deal with the dire economy. Find out where association leaders think the vulnerabilities and opportunities are in this new survey
- ASAE and the Center’s Impact Study: What Association Members Think About the Economy
Organizations
Blue Avocado
www.blueavocado.org
is a nonprofit online magazine for community nonprofits publishing a free newsletter on the 1st and 15th of every month. Each issue treats a variety of nonprofit topics, with a lively and thoughtful lead article from its Director and Editor in Chief.
You will want to go back to this site often.
These three articles are worth reading:
- And Now Something Different About Nonprofits and the Economy
- What Nonprofits are Saying About the Bailout – a Fast Roundup
- Nonprofit Layoff Issue
Nonprofit Finance Fund
www.nonprofitfinancefund.org is a national leader in helping nonprofit organizations to strengthen their financial health and improve their capacity to serve their communities. According to their website, a broad economic crisis can magnify a nonprofit’s pre-existing financial difficulties. The tips in the first article below are helpful for sound financial planning in all economic situations. However, in unstable times, they become even more vital. Getting through such crises requires communication, transparency, and planning rather than “fake it ‘til we make it” behavior.
To prepare for the recession, NFF recommends a two-part strategy:
- Assess your nonprofit’s potential financial risks; then
- Create a plan to respond.
Three useful resources include:
- Navigating the Financial Crisis: Tips for Nonprofits, covering assessing and addressing risk
- Questions to consider in a financial crisis – a self-assessment worksheet (Questions include these categories: Revenue, Expenses, Operating Results, Health of the Balance Sheet, Liquidity and Financial Planning)
- Guide to navigating the Financial Crisis FAQ: offers 6 tips in response to the question: What should my non-profit consider doing during this financial crisis?
Society for Human Resource Management (SHRM)
www.shrm.org has two articles of interest:
- Fifteen HR professionals each won $1,000 in SHRM's contest to identify best practices for avoiding layoffs, keeping talent, curbing health costs and boosting financial literacy. Read the article here.
- Financial Crisis Sparks New Debate on Retirement Benefits
Meyer Foundation
While the Eugene and Agnes Myer Foundation serves nonprofit organizations in the Washington, DC community, it provides access to an array of resources and links to articles on the state of the economy divided into major categories such as Fundraising, Board Involvement, Communication and Marketing, Opinion Pieces and Editorials, and more. You will also find links to other Economic Survival resources.
Two examples of resources posted here are:
- The Nonprofit Hard Times Survival Guide from about.com and
- A free Basic Risk Management Tutorial that helps you to integrate risk management in day-to-day operations.
National Council of Nonprofits
The National Council of Nonprofits is the network of state and regional nonprofit associations serving more than 20,000 member organizations. Their Nonprofit Economic Vitality Center is a robust compilation of resources to help nonprofits and their allies better understand the situation and have ready access to strategies to help navigate the economy so nonprofits can serve their communities more efficiently. Visit www.councilofnonprofits.org/economy -- from here click on Subsector where you will find an International sector. Also, click on Strategies (you will find one of the above Blue Avocado articles cross-referenced here, one example of how some of these sites cross-walk the resources of one another). This special economic section of the website organizes resources into four focus areas: Basic Facts and Analysis, Impact on Nonprofits, Action Steps, and Gratitude for Grantmakers. New Materials are also highlighted.
BoardSource
BoardSource's Educational Resources for Boards on Leading Through the Financial Crisis provides advice and strategies to help boards and senior staff rise to the current financial challenge. Topics addressed include fundraising, financials, diversifying income streams, mergers and partnerships, and planning and management. See also Board Source’s home page for occasional lead articles on the topic.
Bridgespan Group
Bridgespan Group’s mission is developing and sharing knowledge and insights from its research and client engagements. Bridgespan is organized into learning centers focused on key nonprofit management issues: developing strategy, managing performance, funding the mission, advancing philanthropy, building the organization, and recruiting leaders. In these centers, and through events and various publications reaching nonprofit leaders and philanthropy, Bridgespan offers case studies, articles, research, and tools to help organizations manage through the storm while becoming stronger and better aligned. On their website check out the homepage for Featured Ideas that often deal with articles on the financial crisis. In addition, look for three interesting Bridgespan Group resources:
- Managing in Tough Times Survey Themes 2008, results of interviews with 800 nonprofit leaders
- Managing in Tough Times: 7 Steps provides insight and advice for non–profits as they navigate these tough economic times.
- Four Questions for Charities to Answer as They Seek to Thrive in Hard Times
The Foundation Center
The Foundation Center's Focus on the Economic Crisis provides the latest information, news, and research on the impact of the crisis on the nonprofit community, to help charities and foundations face the challenges of an unstable economy. One feature includes Resources and Training.
Northern California Grantmakers
Northern California Grantmakers recognizes the challenge of shrinking assets while community needs increase and wants to support grant makers as they examine how to proceed most effectively. NCG has gathered many resources, including publications, articles, surveys, and sample documents, that will help grant makers adapt to the changing economic environment.
Under Resources you will find interesting articles such as:
- Grantmakers Describe the Impact of the Economic Crisis on Their Giving” Foundation Center
This research advisory examines how foundations expect their 2009 giving to be affected by the economic downturn.
- "Coping with Economic Uncertainty" Donors Forum
This edition of the Donors Forum's newsletter offers strategies for funders and advice for grantees on how to cope with the current state of the economy.
Council on Foundations
The Council on Foundations launched the Economic Xchange, a web-based platform where members of the philanthropic sector can exchange information, dialogue, ideas, and tactics around the economic crisis and its impact on Philanthropy. Members and colleagues actively shared their stories about how they are responding to the needs in their respective communities. Economic Xchange sets the stage for the philanthropic community to share these stories and experiences to help each other weather the current economic crisis. www.cofinteract.org/economy/
Independent Sector
Independent Sector has been working with its members to track current conditions, share that information, and support policies and strategies that will enable nonprofits to continue to improve lives. Some of the resources listed here are also found at other sites listed above; the remainder may be of general interest.
American Society of Association Executives
www.asaecenter.org offers Economy Resources Online. These are among the articles posted there:
- Smart Succession Planning in Unpredictable Times Source: Knowledge Center published March 2009 and
- 4 Tips for Leaders During Challenging Times Dollars & Cents, March 2009