Riding
Out the Storm:
Non-Profit
Survival in This Troubled Economy
By Mary E. Costello © May 2009
Independent Consultant
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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