Riding Out the Storm:

Non-Profit Survival in This Troubled Economy

 

 

By Mary E. Costello © May 2009

Independent Consultant

Grant Writing & Program Development

Creative Edge Consulting

www.CreativeEdgeConsulting.org

 

 

 

 

I don’t have any firm answers—I don’t think anyone does—about what to do to ease our concerns and burdens during this difficult time.   Like all Americans, businesses, and non-profits, we simply need to muddle through, hope for the best, and remain as pro-active as possible to stay afloat.

 

I am greatly alarmed by the challenges facing our non-profit community right now.  Not only are sources of funding less available than before, but the demands on service providers are increasing to level I have not seen before in my lifetime.  I think we all see it.

 

At the time when organizations most need the money, I also see a trend of putting fundraising on hold.  Although a dip in fiscal stability would make justifiable sense during this time in history, I think it is a mistake to make grants and other pursuits a secondary effort.   Funding is so reliant on your fiscal track record that, perhaps more than ever, leaders need to do whatever is possible to continue to compete and secure the even more limited pots of money out there.

 

As a Grant Writer, I would be surprised if other professionals in my specialty didn’t also see a reduction in how many organizations are, at least comfortably, engaging outsourced persons.  The only ones who are coming out of the wood-work for grant writing assistance are those who are trying to capitalize on the Recovery Act, and rarely are these for non-profit endeavors.   Another trend I am seeing is the prevalence of persons who are placing project listings online, thinking that Grant Writers work for free, on commission, or under a deferred payment scenario.  I think these are all symptoms of the panic and confusion.

 

Innovation has always been the name of the game when it comes to securing funding.  Perhaps it is even more necessary now, along with extending that creativity to all forms of organizational planning and operations.  

 

Partnerships have been the wave over the more recent years, and I think that this crisis may suggest a need to venture into other ways of capitalizing on this framework.  This may be especially true for programs that are just starting out and have a myriad of challenges before them.   Sharing office space, equipment such as photocopiers, and maybe even administrative office staff may be a possibility.   So too might be the avenue of sharing consultant costs on joint projects. 

 

For instance, prospect research can be done for two or more programs that would not be competing, generally speaking, for the same funding due to different program focus and eligibility standards.  Might as well have one pro do it in one fell swoop, separating out the national and local funders based on all the elements that determine grantmaker consideration and the designated, individual agency needs.

 

For complementary programs, is it possible to share some in-house staff training programs with other organizations with similar needs?  What about pooling resources when it comes to recruitment of staff?   A person who does not fit a position at your agency might be exactly what is needed at another.  Combining efforts can reduce both fiscal and human resource expenditures in this aspect of operations.

 

Given how difficult it is to gain financial support right now—not that it was easy before—forming a larger project with multiple partners may just be the best approach for attracting funding on a larger scale.  This increased community impact is appealing to those with limited resources to extend who seek the greatest bang for their philanthropic buck.  This has generally always been the case, but I think it is even more so now.   In this, projects that serve several interconnected social service needs at once are probably in the best position for winning sizable awards.

 

No matter what, this economic downturn forces us all to pull together in greater cooperation and interdependence.  Collective talent can fill many unmet needs simply by exploring what we can each bring to the table that did not previously exist in just one social service program.

 

Again, I have no concrete answers for you today, but I do want to encourage you to push forward despite the legitimate concerns you may face as a non-profit leader.  You certainly are not alone, unless you choose to be.   Now is not the time, nor should it ever be, to embrace territorialism or to look at other non-profits as competitors.  Indeed, we need each other as colleagues, neighbors, and fellow change-agents. 

 

Together, we can get through this.  As history continues to prove, there is unyielding power and solutions in unity …and common purpose.

 

 

 

 

 

About the Author: Mary E. Costello holds a BA degree in Social Work from the Catholic University of America in Washington, DC.  She is a former Social Work Administrator who specialized in the management of complex human services programs and leading new projects creation.  Forming Creative Edge Consulting in February of 2005, she serves clients throughout the United States, including both community-based programs and those of national scope. Programmatic and grant related questions or inquiries regarding her professional line of services may be directed to MaryCostello@CreativeEdgeConsulting.org.  Mary will attempt to answer all general questions from the public but cannot guarantee a personal response, dependent on volume of requests at any given time. 

 

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