Summer 2003

Resources for Nonprofit Survival

Today's uncertain economic times require a different level of focus and commitment from nonprofit organizations. The traditional governance and decision-making processes may be too slow and cumbersome to allow for the quick responses needed in today's rapidly changing environment. To help nonprofits survive, and perhaps even thrive, in this environment, Nonprofit Allies, a network of Minnesota organizations providing services and management support to nonprofits, has developed a checklist of the ten critical areas for nonprofit managers and boards to focus on today. If your organization isn't addressing all ten of these items, you need to make some changes:

Top Ten Checklist for Nonprofit Survival

1. Engage and tap the skills of your board. Since quick action may become necessary, empower your executive committee to make decisions in a short timeframe. Look for ways to increase the skills of your current board or make changes in board membership so that you have the right sets of skills and commitment required for this uncertain environment. Board skills that are even more critical in these times include financial management, fund raising and communication.

2. Revisit your strategic plan. Determine if you need to make any adjustments given what's changed in your environment since your plan was completed. Balance short-term and long-term planning, so that you can respond quickly to this month's challenge while still keeping your eye on the future.

3. Make realistic contingency plans. Take a hard look at your revenue and expenses and plan for the best, most likely and worst-case scenarios for your organization, and develop strategies to deal with each one. Involve your board to make the hard decisions now, so that you can react quickly to any situation.

4. Lead, don't whimper. Virtually all successful entities go through difficult times. The ones that survive have people at the helm who are willing to make difficult decisions with decorum and take action quickly and decisively when necessary.

5. Focus on your core mission and strengths. Tighten your focus on core activities that are central to your mission and do them as well as possible — quality is what will matter in your services and programs. Now is the time to prioritize and, if necessary, eliminate peripheral activities, and to avoid engaging in new activities that push the boundaries of your mission.

6. Collaborate in new and more strategic ways. Work together with other organizations on a deeper and more committed level through strategic collaborations or partnerships. Look for unlikely partners — not the usual suspects — that can help you achieve your mission while making the most of your limited resources.

7. Stay up-to-date. Review your organization's programmatic and financial results frequently — quarterly reviews probably won't cut it. Make sure you're getting the latest information on what's happening with funding trends and changes, client issues, legal obligations, legislative considerations and government support.

8. Manage cash and cash flow. The greater the uncertainty of your funds, the greater the need for cash reserves and effective cash flow management.

9. Communicate clearly, honestly and regularly with all your key stakeholders. To manage speculation or fear of the future, communicate both formally and informally with your board and staff on a regular basis about what's happening with your organization, and keep the lines of communications open with your funders.

10. Advocate for your positions. Make sure all of your key stakeholders — including legislators -- know what you stand for. Be willing to fight for your core values and beliefs.

Additional Resources

Coping with Cutbacks: The Nonprofit Guide to Success When Times Are Tight
Amherst H. Wilder Foundation
This guide shows you how to make new connections, create buy-in, and bring new partners to the table to accomplish your mission. It gives you a six-step process for coming up with solutions to problems — financial or otherwise -- plus 185 specific cutback strategies you can put to use right away. $20.

Managing Financial Uncertainty
Nonprofit Quarterly, Spring 2002
Authors Thomas Raffa and Robert Cocchiaro outline strategies for nonprofit leaders to successfully guide their organizations through uncertain economic times.

State Budget Update: Impact of FY 2004-2005 Budget
Minnesota Council of Nonprofits
MCN has prepared a spreadsheet showing how the State of Minnesota's final budget decisions will impact nonprofits, low- and moderate-income Minnesotans and other vulnerable populations.

Nonprofit Allies Sites:
For additional assistance and resources on nonprofit management issues, visit the Web sites of these Nonprofit Allies members:

• Center for Nonprofit Management-University of St. Thomas

• Charities Review Council of Minnesota

• MAP for Nonprofits

• Minnesota Council of Nonprofits

• Minnesota Council on Foundations

• Minnesota Nonprofits Assistance Fund

• Springboard for the Arts

• Volunteer Resource Center

• Amherst H. Wilder Foundation

© Copyright 2003 Minnesota Council on Foundations
Reproduction in any form without the written permission of the publisher is prohibited.

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