Managing in Tough Times
A Collection of Resources for Nonprofits
and Funders Navigating Turbulence
Managing in Tough Times Survey Update: November 2009
The negative effects of the economy on nonprofit organizations have deepened considerably in the last year, according to responses from more than 100 nonprofit leaders participating in a Bridgespan study initiated in November 2008 and updated last month. But while the hardship of prolonged financial pressure cannot be overstated, many organizations appear to be making the difficult decisions that may gain them stronger footing as market conditions improve in the future. Read more>>
Managing in Tough Times: 7 Steps
How the current economic turmoil will play out is unclear. What is clear is that nonprofits must continue their vital missions. For most organizations, however, sustainability will require tough decisions to recast budgets, partner with key funders, keep core teams strong, develop explicit contingency plans, and—importantly—take what steps they can to maintain or even enhance the strength of their organizations.
Related content:
Four Questions for Charities to Answer as They Seek to Thrive in Hard Times
Tough times require trade-offs. Making trade-offs well requires clarity-about the results an organization intends to deliver and about the resources it will need to succeed.
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Summary of Themes from Bridgespan's "Managing in Tough Times" Survey
During the past month, we surveyed more than 100 nonprofit leaders to understand how they are being affected by the downturn and the approaches they are taking to address the challenges ahead. The findings show that nonprofits are already feeling the impact, but that many are not prepared to make the changes necessary to ensure the continuation of their core missions.
In Bad Economic Times, Focus on Impact
Now is not the time for nonprofit organizations to spend precious dollars on anything that doesn't produce an immediate benefit. Or is it?
The Strategic Value of a Shared Understanding of Costs
Knowing the true cost of programs or services provides insight into an organization's effectiveness and efficiency. Cost data also can provide answers about whether too little is being charged for fee-based products or services. Originally published in 2003, "Costs Are Cool" by Susan J. Colby and Abigail M. Rubin provides valuable lessons in the importance understanding costs and their implications, and is no less valuable today given the current economic crisis. This condensed version reinforces the importance of economic clarity during good times and bad.
Tapping Into the Board's Talents
If your organization is not including board members in the business or strategic planning process, it’s missing out on their valuable perspectives, expertise, and support—especially during tough times. Here’s a look at how and why they should be involved from the get-go.
Case Study: Boys Town
An in-depth look at how one organization redefined staff decision roles and responsibilities for greater effectiveness.
RECOMMENDED RESOURCES
Below are links to resources from sources other than The Bridgespan Group that we feel nonprofit organizations will find useful.
WEB SITES
Special Reports on Economic Stimulus and Recovery
National Council of Nonprofits
The National Council of Nonprofits has created a series of reports that focus on the economic recovery, including analysis of the American Recovery & Reinvestment Act of 2009.
Managing in Hard Times
Institute for Conservation Leadership
This toolkit walks nonprofit managers through the difficult decision-making process associated with declines in revenue. It includes some useful worksheet and examples. Although this was written with environmental groups in mind, the principles are applicable to most nonprofit organizations.
Nonprofit Economic Vitality Center
National Council of Nonprofits
This resource has been specially created by to help organizations in the sector better cope with the challenging economy. Within its pages nonprofits will find "focus areas" devoted to three topics: basic facts and analysis, offering journalists, nonprofits, policy makers, and the general public up-to-date information on the economic climate; impact on nonprofits, which discusses the impact the economy is having on the sector; and actions steps for nonprofits, which shares resources for weathering a downturn and emerging stronger when its over.
ARTICLES
"Fundraising in Tough Times"
Stanford Social Innovation Review, March 2009
In this article, writer Mal Marwick offers nine concrete steps fundraisers can take to minimize the impact of the downturn on their organizations, while taking steps to maximize their income.
"Past Economic Downturns and the Outlook for Foundation Giving"
Foundation Center, October 2008
In this piece, Steve Lawrence, senior director of research at the Center, reflects on past downturns and their effect on giving; provides perspectives on the future outlook; and explains the factors that generally cause foundation giving to remain relatively stable during economic turbulence.
"How Charities Cope With a Troubled Economy"
The Chronicle of Philanthropy, 2008
A compilation of recent Chronicle articles, discussions and statistics related to how nonprofit organizations are dealing with the current economic situation.
"It May Be Hard Times: How to Navigate a Financial Downturn" [PDF]
The Nonprofit Quarterly, 2008
A selection of articles from The Nonprofit Quarterly aimed at leaders forced to manage their organizations during economic turmoil. Includes sections on "Budget Cuts and Sudden Overhead Conundrums,"
"Managing Financial Uncertainty," "Improving Cash Flow Management in Challenging Times: A Primer."
"Local Nonprofits Offer Insight on the Unfolding Financial Crisis"
Massnonprofit.org
This news story notes how Massachusetts nonprofits are preparing to absorb the impacts of the current financial crisis and offers a few recommendations to nonprofits in general for suriving the market's ups and downs.
"Opportunities in Lean Times"
Fieldstone Alliance
It pays to avoid knee-jerk reactions in a crisis. This article provides practical advice on how to handle a sudden cut in funding.
"Tips for NGOs Threatened by the Financial Crisis"
PhilanTopic
Recommendations from the Nonprofit Finance Fund for organizations threatened by the financial crisis.
"When Times Are Tough, Get Creative and Strategic"
Adapted from the book Coping with Cutbacks (see below), by Emile Angelica and Vincent Hyman. It presents some good suggestions on process and decision-making for handling economic downturns and other crises.
SURVEYS
Nonprofit Finance Fund Survey: America’s Nonprofits in Danger
This survey of 986 nonprofit leaders, published by the Nonprofit Finance Fund, looks at nonprofits' financial health and the challenges being faced by organizations nationwide.
BOOKS
Coping with Cutbacks: The Nonprofit Guide to Success When Times Are Tight
by Emile Angelica and Vincent Hyman, Amherst H. Wilder Foundation, 1997.
This book provides advice on nonprofit management during times of revenue decline. It includes sections on how to engage the community and the decision-making process around developing and selecting strategies to manage budget cuts. It also provides a long list of potential cutback and community engagement strategies.
Wise Decision-Making in Uncertain Times: Using Nonprofit Resources Effectively
Edited by Dennis R. Young, Foundation Center, 2006
This book comprises 12 articles from a range of academic, nonprofit, philanthropic and business leaders. The articles cover topics such as managing fiscal stress, understanding and managing risk in the nonprofit sector, and engaging business with nonprofits.