Survey Says…
Minnesota’s Current Conditions
On the heels of last week’s post on the Giving USA annual study, we have more data to digest. MCN recently released their Current Conditions Report for June 2009:
Minnesota’s nonprofits continue to be seriously affected by the recession. Nonprofits are bracing for extended impacts from the reduction in revenue they have already seen and expect to continue to see in the coming months and years.
- Organizations relying on state, local or federal government are seeing varying levels of unreliability in payments to them from government, making it increasingly difficult for organizations to plan accordingly. Exacerbating this is the threat of unallotment for many organizations.
- A majority of organizations report an increase in demand for services, yet many are still having to cut back on staff.
- All major nonprofit revenue sources (contributions, government funding, foundation grants, and earned income) are reported to be down from economic affects.
- Small organizations are feeling the worst affects, with far more reporting declines in revenue and cash shortfalls. Small organizations are also the least likely to have available reserves or a line of credit to fall back on.
These findings are echoed by other studies (here and here). Although the specifics vary from state to state, and among organization type and size, people in our sector are doing their best to meet demands with fewer resources.
We are all trying to prudently cut costs in ways that minimize the impact on our mission and overall capacity. This is a tall order, especially when combined with increasing needs for service. How do you go about making those tough choices?
A Four Step Framework
Our executive director, Kate Barr and Judy Alnes of MAP for Nonprofits wrote an article for MCF’s Winter Giving Forum, Nonprofit Survival: Four Steps to Take Now:
Economic uncertainty and the threat of impending doom are not unfamiliar territory for nonprofit organizations. We’ve lived through multiple downturns and have “right-sized” ourselves time and time again. Philanthropic organizations have done likewise.
But something feels uncharted about this downturn. Perhaps it’s the fact that it has fallen on the heels of a downturn from which we never really recovered. Perhaps the global nature of the economic stress makes us see ourselves in a broader context. In any event, this fire is real and hot.
Then they lay out four steps to help you make decisions:
- Focus
- Identify Your Most Important Work
- Seek and Speak Financial Truth
- Review Size, Scope and Structure
Read the rest of the article for more information on this helpful framework.
Other Resources
- Improving Cash Flow Management In Challenging Times: A Primer from Nonprofit Quarterly
- Our Cash Flow Template and Nonprofit Scenario Planning Tools
- Nonprofit Layoffs and Furloughs: Do Them Right from Blue Avocado
More resources are available at Sustenance in Lean Times, our resource collection.
This Week’s Harvest
- Governor’s Unallotment Plan
- Check out the Nonprofit Quarterly’s Daily Digest – the Nonprofit Newswire
- Strategies for Hard Times: The Case for Sustainable Funding
- Charities Review Council unveiled a draft of their updated Accountability Standards
- Recession Resources for Artists and Arts Organizations