Dec
17
2008

Nonprofit economic crisis: how are you coping?

by Kristin Ivie

Monday morning at 9 am, I squeezed into “Nonprofit 911,” a meeting organized by a coalition of eight DC organizations concerned with helping the nonprofit sector survive – and even improve as a result of – the economic crisis. Normally for events like these you can just walk in on the day of and pull up a chair in the back of the room. However, when I attempted to register for this meeting (advertised without so much as the standard incentive of a free continental breakfast of donuts and bagels) more than a week beforehand, registration was closed because the meeting was at capacity.

I showed up on the day of the meeting and was allowed in – come to find out within 48 hours of the invitation being posted, more than 500 people signed up. You would have thought they were actually giving away money at the event. As we all now know, the nonprofit sector, like many businesses and individuals, has been growing increasingly anxious about what our nation’s financial crisis will mean for us. The reality of not being able to continue serving people in need of a plethora of services has created a 911 emergency across the sector.

Many of the speakers and participants expressed a clear sense of opportunity and hope throughout the morning, but no one was sugarcoating the situation. Alice Rivlin, economist and Senior Fellow and Director of Greater Washington Research at Brookings, told the crowd that the economy is not likely to see positive growth rates and falling unemployment for three years. Panelist Chuck Bean, Executive Director of Nonprofit Roundtable of Greater Washington, advised nonprofits that this is not a storm during which we can just batten down the hatches and sit tight while it passes. This is more like climate change, so we have to adapt to survive.

How to adapt? A few thoughts surfaced:

  • COLLABORATION: The smaller pool of resources makes it more necessary than ever for nonprofits to engage in deep collaboration to share resources, services, and programs or even consider merging with similar organizations. While consolidating is never easy or painless, it’s far better to work together proactively than to have to close your doors completely and, when done well, can be a worthwhile long-term investment. 
  • PRO BONO SERVICES: This time provides an opportunity to tap into skilled volunteers. Marketing, accounting and law firms, for example, will have excess capacity right now. In addition, students hoping to build their resumes in a challenging job market and professionals who have been laid off will be more eager for skilled volunteer opportunities. 
  • MAKE NEEDS KNOWN: People who have jobs and find themselves faring relatively well are expecting nonprofits to ask and, being acutely aware of the hardships next door, will be more willing to give. With that in mind, nonprofits were urged to ask for more – more time, talent, and treasure – and to make it easier for people to give.

The nonprofits represented seemed to recognize the need for deeper collaboration and innovation but made it clear they would need help from the philanthropic sector. Foundations can provide assistance that goes beyond writing big checks – like leading a PR campaign to show individual donors what a difference nonprofits really make; providing a vehicle through which they can connect with other nonprofits for partnering and potential exchanges of resources; or offering consultants who will help nonprofits learn how to collaborate successfully or use volunteers effectively.

The organizing coalition – which includes The Community Foundation for the National Capital Region, Board of Trade, Center for Nonprofit Advancement, Metropolitan Washington Council of Governments, Leadership Greater Washington, United Way of the National Capital Area, Washington Regional Association of Grantmakers, and the Nonprofit Roundtable of Greater Washington – launched a new website for continued discussion and resources.

As Alice Rivlin reminded us – “a crisis is a terrible thing to waste.” So how are you going to respond to the economic crisis?
 

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