This is a long one, so be prepared.
As you’ve undoubtedly noticed, the recession is hitting everyone hard. Individuals, small businesses, and huge enterprises are making significant changes just to remain afloat. This belt tightening means less money to share, a severe blow to the strength of non-profits who depend on donations. And with less donations flowing through their doors, non-profits are tightening down too. I chatted with a few executives at various non-profits in the Boston/New England area to find out how exactly the recession is affecting them.
People have less to give, and so are giving less. The people who are still giving are being careful with their donations, and expect to see results. “Because the recession is so deep and because it affects us all, our funders want to understand how we’re responding,” said Tara Finnegan, Director of Resource Development for the non-profit Generations Incorporated. “They know we’re hurting financially and they know that it’s not our fault – but they want to know what we’re doing in response to ensure long term sustainability.” She went on to say that Generations Incorporated has cut $200,000 from their annual budget in an effort to create a leaner ship, including an even percentage salary cut for all employees and volunteers. “Staff agreed that they would rather ‘share the burden’ than see someone lose their position entirely,” she said. That kind of community attitude and spirit of teamwork is exactly why I like working with non-profits.
Other non-profits are looking in other areas to limit their budgets. Many, like Camp Sunshine in Maine, Children Without Borders, and the New England Center for Performing Arts, are trying to enlist the help of more and more volunteers, which is great for two reasons. First, volunteers are more affordable than full-time employees. Second, because of the recession, many people are out of work. In addition to having a lot of time on their hands, people are looking for ways to feel and be productive, to make a difference, as a strategy for coping with the depression that can go along with a job search. Non-profits and job seekers can work together for mutual benefit to weather this recession together.
Brian Reich, a consultant who works with non-profits, thought that the need of funders to be shown the value of their investment would ultimately be good for the overall non-profit industry. “There are too many nonprofit organizations who aren't able to demonstrate their value, and who are cannibalizing the funding of other groups. The good nonprofit organizations, the ones that add value, that communicate effectively, that build strong relationships with their audience are - and will continue to - succeed. Nonprofits should emerge more efficient, more focused, more aware of how times have changed and communications is measured not by activity but by value now.”
As a communications professional by trade, I was very interested in how non-profits are changing the way they communicate with potential donors. Almost across the board, they are first and foremost expanding their reach by contacting more donors than usual. They’re also working hard to refine the types of communication that they’re using. Brian Reich went on to tell me that he’s been counseling non-profits to view their communications as relationship building, and to make sure that every e-mail, phone call, blog post and web content update is as focused and necessary as possible.
Matt Hoidal, Executive Director of Camp Sunshine, said that their communications weren’t focusing on the hardships they’re facing due to the economy, but have a different, more inspiring message that goes right along with showing value on the investment. “What we do as non-profits is to inspire people to join our mission. We may allude to the economy, but our message is that we’re still early enough in the year that your support now more than ever can make a huge difference.”
Other non-profits are searching for new communications tools to reach out to their audience, either finally implementing those blogging and social media platforms that they hadn’t gotten around to, or hosting a “stay at home gala” where people send in their donations instead of an expensive gala event. (from James Mecone, CPA and managing director at CBIZ Tofias). According to Alan Mercer, Director of the New England Center for Performing Arts, they have been exploring a new technology from a local Waltham company called Brainshark that will allow them to e-mail videos to potential donors, allowing for a more personal feel to the communications. Innovation and creativity are going to be the keys to getting out of this recession, for non-profits and all other organizations.
Matt Hoidal had a slightly more optimistic view of the recession and how non-profits can weather the storm better than some others. Like everyone else, for Camp Sunshine, donations are down. However, this is their 25th anniversary of being in business, and their motto is “we’re going to make this the best year that Camp Sunshine has ever had.” They’ve looked at their organization. They’ve made the budget cuts. They’ve expanded their communications, reaching out to more and more people. Where they’ve been making cuts in some places, they’ve been expanding the programs that really matter, the ones at the heart of their mission: helping kids with terminal illnesses have a little fun in the face of a terrible time in their lives (or so I am interpreting the mission). Instead of the 21 programs they had last year, they’re going to have 25 this year. “There’s a tendency for folks to become afraid, that with the economy the way it is that they’re doomed,” said Matt. “We won’t accept that. Why not shoot for the best year we can possibly have? We’re trying to make this one of our best years ever.”
That's the kind of attitude that will make sure they make it through the tough times ahead.
Until next time, stay charitable! Even in the recession.
Jean
Comments