top of page

Navigating Crisis: A Nonprofit Leader's Guide to Sustainability

Writer's picture: Genevieve WallerGenevieve Waller

The nonprofit sector is facing unprecedented challenges. Funding uncertainties, shifting priorities, and a rapidly changing landscape demand strong leadership and strategic decision-making. A recent webinar offered valuable insights for nonprofit leaders navigating these turbulent times, focusing on cash flow management, fundraising in a crisis, and long-term sustainability.


Maintaining Composure in the Storm:

One of the most crucial takeaways was the importance of separating organizational crisis from personal crisis. Leaders must remain grounded and avoid succumbing to panic. Managing media consumption and focusing on controllable factors are essential for effective leadership. It’s also vital to acknowledge that while some are struggling, others may see these changes as positive, requiring a nuanced approach to stakeholder communication. Pivoting and adapting are key to survival; failure to do so risks irrelevance.


Assembling Your Avengers:

Building a strong crisis team is paramount. This team should include diverse stakeholders – staff, board members, funders, even those who may be politically aligned with the changes. Diverse perspectives are crucial for navigating complex situations. Scenario planning, from best-case to worst-case (including the possibility of closure), allows for proactive strategizing. Financial planning is also critical. Organizations need to understand their cash flow runway and prepare for potential funding disruptions, even from previously reliable sources.


Strategic Communication is Key:

Communication strategies must be tailored to specific audiences. Honesty and confidence (but not overconfidence) are essential when communicating with staff, who are likely absorbing information from various sources. A regular communication cadence helps maintain stability. Providing staff with talking points empowers them to represent the organization effectively, especially on social media.

Stakeholder communication requires a different approach. Information should be presented clearly and concisely, with an emphasis on the impact of the current situation. Crucially, every communication should include a call to action, giving stakeholders a tangible way to contribute and feel a sense of control. Remember, all written and spoken communication can be shared, so thoughtful wording is essential. It’s also okay to remain silent if there’s nothing new to communicate.


Cash Flow: Your First Line of Defense:

When it comes to immediate financial needs, the webinar emphasized several key strategies:

  • Engage your board: Board members have a fiduciary responsibility to ensure the organization's financial stability. They should be your first point of contact.

  • Cultivate major donors: Established relationships with major donors can be invaluable in times of crisis. Be transparent about your needs and your plan.

  • Explore investments and endowments: Accessing non-restricted funds and potentially lifting restrictions on others can provide crucial financial relief.

  • Cut expenses strategically: Analyze all expenditures, including compensation, benefits, and contracts. Be prepared to make difficult decisions, but avoid unsustainable “doing more with less” approaches.


Fundraising in a New Landscape:

Fundraising strategies must remain strategic and intentional, even in a crisis. Nurturing relationships and leveraging your crisis team are vital. Evaluate your services, understand their true cost, and explore potential fee-based models. Consider membership programs as a way to generate sustainable revenue and demonstrate value. Focus fundraising efforts on your core purpose and the impact you create, rather than dwelling on the crisis itself. Donors want to invest in success and positive change.


Embracing Change and Exploring Opportunities:

The current environment presents opportunities for innovation and collaboration. Shared services, program partnerships, and even considering mergers or dissolution can ensure that community needs are met. Don’t be afraid to explore unconventional solutions. If dissolution is a possibility, plan for it proactively, while resources are still available to ensure a graceful transition for staff and clients.


A Call to Action:

Navigating these challenges requires collaboration and support. Don’t hesitate to lean on resources and seek guidance. Remember, your purpose is your guiding star. By staying focused, strategic, and connected, nonprofits can weather this storm and emerge stronger.


4 views

Comments


bottom of page