Surviving and Thriving in Tough Economic Times
Nonprofit Organization Survival Tips:
Surviving and Thriving in Tough Economic Times
Seth Bloom, Bloom Consulting, Inc.
Recession, inflation, deflation, correction, etc., whatever you want to call what we’re going through the simple fact is that many of us have already made adjustments at home and in our businesses, and most of us may need to consider further belt-tightening in the near future. As community leaders, many of us are also wrestling with the impact this economy is having on our nonprofit organizations. As consultants specializing in nonprofit fundraising, strategic planning, marketing and leadership development, Bloom Consulting has had extensive experience with the financial challenges that all nonprofits face from time to time, and we recognize the difficulties that the current situation poses. Fortunately, we believe there are ways to reduce its impact and insure that your nonprofit not only survives, but thrives, in the days ahead.
This list is for anyone with a common sense approach to surviving and thriving in tough economic times. While nonprofit organizations should consider many of these initiatives, they may not all apply to every nonprofit. Yours may have already adopted some, while others may seem too simple or too difficult. Chances are you’ll find a few here to consider, and undoubtedly others will stimulate your own creative ideas.
The Big Picture
Don’t panic! The good news is that nonprofits have weathered economic storms before. That being said, we all realize this will be a challenging period.
Many of the recommendations translate into cutting back, or asking more of others. Fortunately, not everyone is being as adversely affected by the economy as others, and some may even be doing quite well. Keep in mind that some people can and will respond by doing more.
Communicate! Keep your supporters and staff informed about actions you’re taking and how they can be part of the solution, whether through their increased financial support, or simple things such as turning off lights when they walk out of a room or wearing a sweater inside the building since the heat is turned down a few degrees.
Ask your staff and volunteers to offer suggestions of ways to save money or raise funds. Instill a sense that the organization is theirs… and that its challenges are theirs to meet. .
Don’t be penny wise but dollar foolish. If the roof needs fixing and neglecting it will only cost you more in the long run. Bite the bullet. Compelling needs will be supported.
Mindset/Behavior Changes:
Ask a volunteer (or a few) to host or underwrite a social reception for distinct groups such as long-standing contributors, seniors, young families, etc. Doing so can shift some of the financial burden off of the organization budget, and you’re offering these groups something for nothing – a great way to demonstrate appreciation, increase involvement, strengthen retention, etc.
Everyone should have a will and everyone can include something for their favorite nonprofit organization, even if it’s contingent upon any money being left after other bequests have been made. Leadership should set the example by signing Letters of Intent. Just imagine how much easier this tough economic period would be if generations before had established a sufficient endowment fund generating supplemental income. This is our obligation for generations to come.
Maximize all recognition opportunities, whether for financial contributions, in-kind services or volunteer time. While public recognition – honor roll lists, plaques, etc., – is very effective, it’s not the only option and other ways are also greatly appreciated. Sometimes a handwritten note or phone call to say “thank you” will go a long way. Inspire others and positively reinforce desired behaviors through lists, stories, announcements, etc.
You may need to use your line of credit from the bank to get through some rough periods. If you don’t have a line of credit, don’t assume it’s impossible to obtain one now. While credit has been extremely tight and lines of credit may generally be less available than they were prior to the downturn, if your nonprofit has a good relationship with its bank, you should be able to obtain one. If your credit worthiness is shaky, consider asking individual financial supporters to co-sign on your behalf.
Consider “borrowing from yourself.” Your organization’s rainy day may be here, so it’s OK to access endowment/reserve funds, ideally with a plan to repay the borrowed amount for a future rainy day.
Remember, not everyone is being adversely affected by the economy. Form a Task Force to identify real needs and identify potential sources of funding. Develop a menu of programs to address the identified needs and make them available to select prospects for funding. For example, the need for program expansion or facility enhancement may resonate particularly well with potential donors.
Don’t apologize for asking for support or for considering cost savings. To the contrary, supporters will want to know you’re being good stewards of their support.
Keep in mind, if you don’t ask, the answer is always “no.”
Cost savings:
Where possible, renegotiate terms on longstanding contracts as they come up for renewal. Shop around.
Minimize postage. Consolidate mailings and ask supporters and members to receive information such as your newsletter, membership directory and program announcements through e-mail.
If your organization doesn’t do so already, require reservations in advance for events where food will be served so excess food won’t be ordered. Consider rescheduling/canceling programs with limited interest. Charge people who register but don’t show up.
Install a thermostat timer and zoned heat/air conditioning. Install light switches with motion sensors, programmed to turn lights on when someone enters a room and turn them off after not sensing any motion in the room after a few minutes. These are particularly cost-effective in bathrooms!
Educate your staff about your monthly utility bills and, where practical, challenge them to help reduce the bottom line. For example, encourage everyone to wear a sweater in cooler months and turn off their computers at the end of the day. Communicate monthly results.
If a vacant position can be left unfilled for the time being without adverse consequences, consider delaying the hiring. In extreme cases, you may need to consider a temporary salary/hiring freeze and/or layoffs. Consider using an intern and/or volunteers rather than hiring a new staff member. Inform your staff about volunteer opportunities that may otherwise require hiring someone … office personnel, lawn maintenance, etc. There may be recently unemployed individuals associated with your organization who would welcome the opportunity for meaningful volunteer work.
Consolidation and collaboration can produce significant cost savings. For example, a small class could become one class. Co-sponsoring events will enable your organization to share expenses while increasing your exposure to a new constituency.
Consider bulk purchasing of staples such as cleaning and office supplies. Band together with other nonprofit organizations in order to negotiate lower fees.
Establish a co-op program offering all affiliates opportunities to serve the organization through service or to pay a nominal fee. Service can include committee work or actual hands-on cost savings services, but ultimately, your supporters will be more engaged – and committed.
Evaluate every program … question everything. If only a handful of people are coming to a particular program, perhaps it’s time to eliminate, modify, or at least to readjust the number of times the program is offered.
Take advantage of every store program offered to nonprofits … supermarket scrip, free credit card programs, etc. Establish a committee of your thriftiest shoppers to manage this effort.
Increase income:
Identify and prioritize, distinguishing real needs from things that would be nice to have or do. Secure funding for these needs, whether it be through a “quiet campaign” among supporters or through an organization wide campaign.
Your board should be the best informed group regarding the impact of the downturn, and board members may be among the most inclined to make additional elective contributions. Consider asking board members to make a contribution toward a defined goal, as if there were a mini-campaign. The goal could correspond to a budget shortfall or the amount needed to preserve an important program, as long as the things to be paid for are among your identified needs. Depending on magnitude of the needs, consider approaching select major donors. If the goal is substantial enough to require universal support, publicize after 50% or 60% of the goal is reached, and state the challenge to make contributions toward reaching the total goal.
Have leadership – officers, board, staff – identify 1 – 3 people perceived to have significant wealth and/or access in order to nurture/establish a relationship, identify areas of interest, and ultimately ask for their support.
Identify potential new donors by considering people formerly affiliated with your organization, relatives of current supporters, donors to similar organizations, etc.
Consider a single, annual ask for your potential major donors to help support operations of the organization rather than solicitations for every event/initiative. Price it high enough to cover the cumulative of top categories of every event. Don’t solicit these people again, but invite them to attend and recognize their support.
Rater higher-end prospects and pre-solicit them in advance of fundraising events in order for you prospective donors to have a sense of a specific gift to consider.
Offer sponsorship opportunities of events, your website, etc., to local businesses. Such sponsorships create win-win partnerships with businesses by providing visibility to the community. For businesses, donations are often considered a marketing expense.
If your nonprofit is considering dues or other fee increases, make modest annual adjustments rather than hitting people with a significant increase all at once.
Offer free estate planning seminars highlighting tax savings options, including planned giving.
Maximize use of your building by renting available space to outside groups (bingo, dance clubs, etc.).
Charge outside vendors a fee to be eligible for use in your facility … caterers, florists, etc. All vendors should be asked for their financial contributions.
Offer babysitting on site for a nominal fee during events, business hours, and programs. Not only will this be an appreciated service, it’s conceivable you can secure volunteers to provide the service and/or receive enough income to make a modest profit for the organization.
Constantly urge supporters to consider matching gifts programs available through their employer. Often schools or programs open to the community are eligible for corporate matches.
Conclusion:
Chances are at some point the current economy will challenge your nonprofit organization to consider creative strategies for minimizing the impact on your delivery of service. This cannot be a period of “business as usual.” While there are many external factors beyond your control, there are many initiatives to consider to enable nonprofits continue to fulfill their mission. The organizations that embrace this challenge will be the organizations that will survive the current situation and thrive in the long-run.
Seth Bloom is President of Bloom Consulting, Inc. Bloom Consulting specializes in nonprofit fundraising, strategic planning, marketing and leadership development. www.bloomconsultinginc.com
Seth Bloom
http://www.articlesbase.com/non-profit-organizations-articles/surviving-and-thriving-in-tough-economic-times-677097.html
April 28th, 2010 at 12:38 am
Good morning, Seniors. In these tough economic times, what advice do you have for recession living?
Please don’t be offended, but I’m asking here because your parents and grandparents (and possibly even you) have lived through the Great Depression.
As they say, there’s no teacher like experience, so I’m wondering what your experiences in stretching a buck, making do, etc, have taught you.
In turn, what can you teach us?
I’m more interested in the daily aspects of getting by, rather than how to make a smart investment. What did your family do to survive, and (quite possibly) thrive?
As always, thanks in advance for sharing your stories.
Your section is so great … It’s always delightful to stop by for a visit.
A wonderful day to you all.
((((( Lord Vader )))))
Long time no see.
((((( Wifey )))))
My kids got me a bread machine for Christmas. I’ll supply the fresh bread, you bring the olive oil.
Uhhhh … why are we giving Jim the thumbs down?
I *really* dislike putting a question to vote, but there’s just too much excellent information here for me to choose best. You’ve all outdone yourselves.
Thank you so much.
April 28th, 2010 at 5:40 am
ah yes rebel
not all life’s pleasures demand payment
flowers in the sky are gratis for the scent flows as does the force
live life within the riches of nothingness for the path to wealth is high maintenance indeed.
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April 28th, 2010 at 5:42 am
I live like my parents taught me in the depression always live on 90% of your income. It has worked well for me,so far.
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April 28th, 2010 at 5:44 am
I’ve answered this before, but I’ll do it again. My parents grew up during the depression, so they saved everything in case they might find a use for it someday. I’m a third generation pack rat. My mother re-used tea bags 2-3 times, which is something I’ve started doing. Grocery bags can be re-used as trash bags. If you make too much food for one meal, eat the leftovers or use it for another meal in another way. Ex: If you make a roast chicken, you can use the rest for soup, chicken salad, etc.
For entertainment, Netflix is a good source for movies. If we watch them & send them right back, we can see 4 per week. I read a lot and our local library sells used books for 25 cents for a paperback and $1.00 for a hardback. I pass them along to friends after I read them. I’m fortunate enough to live near the beach and have a handicapped tag, so I don’t have to pay to park. I ususally listen to the radio all day while I’m doing things around the house. I do my best to keep the electric bills down.
I hope this helps.
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April 28th, 2010 at 5:46 am
Use cheaper cuts of meat and pay more attention to doing lovely seasonal vegetables with them.
Use just a bit of meat or sea-food with lots of accompaniments, such as most Chinese meals and things like paella, risotto, pasta and so forth.
Study ethnic cookery books – many very tasty national dishes evolved because poor people were looking for ways to make cheap food taste good.
Use strongly flavoured foods to stretch them further – like strong cheddar – you only need half the quantity in cauliflower cheese or on top of spaghetti.
Cook instead of eating out and having takeaways (but that is boring!)
If you drink spirits, Tesco’s own-brand, and some of the other well known supermarkets do very good products.
Grow your own vegetables, especially the more expensive ones.
Mend clothes and dye stained ones rather than chucking them out. Swop clothes with other people if you have got bored with what you have in your wardrobe.
Join Freecyle (free goods to be given away or received from others).
Join a LETS organization (doing jobs for people for which you receive pledges instead of cash, and you can then use the pledges to pay anyone within the organization to do jobs for you – the members have an enormous range of skills, from manual and technical to professional and physical things like massage or house-sitting).
Stay away from the shops if you are a shopaholic.
Share more – swop magazines, give away and receive books once you’ve read them, share car journeys, borrow and lend equipment instead of everyone having their own
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Yes, it is my own experience, regrettably
April 28th, 2010 at 5:48 am
Tighten the belt. Watch for specials. Watch for Senior specials. Eat at home. Careful what and how you spend on grand kids. Do not run to town just to get a loaf of bread, plan your trips. Stay home. Recycle cans.
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April 28th, 2010 at 5:50 am
Look at expenditures you can afford to cut back or out all together. Eating out, and entertainment are two examples. Save those times out for special occasions only. Our parents/grandparents, didn’t eat out like we do today, they cooked meals and the family ate together unlike so many today. Perhaps another reason the ‘family unit,’ has suffered? Vegetable gardens were grown to feed a family, a good idea to help save on pricey produce today. I believe this year people will garden even more. Purchase grocery sale item foods when possible, and buying store brands will save. A person would be totally amazed how eating 2 or more meals out a day, the cost involved in a years time. If you don’t think it adds up, just do some figuring. You may be surprised how much you can save. I remember my folks saying they saved money for items they needed to purchase. They did not use credit cards. Usery has gotten so many people in trouble these days. If you do use credit cards, make sure purchases are paid off monthly. For cash flow purpose, buy only what you need to get by until your next pay. When you can afford to do so, keep a pantry stocked. This can be done by purchasing in moderation until pantry is fully stocked if need be. Use your local library for checking out books. Make trips to the library with the family as an outing over the weekend. Take home made picnic lunches for a weekend outing at a local park. Magazine subscriptions can get expensive, so I cut those out years ago and read them at the library. Make use your local library and what they have to offer. Check out consignment shops for clothing purchases. You can find some really great inexpensive buys. Overall use common sense approach. Before making purchases, consider if you are making a wise choice and if it is an item that is really needed. If a person can make cut backs, extra money can be put back to spend on things you would not normally spend from week to week. Instead of car washes, get the family involved and everyone help with the clean up. Encourage your children and grandchildren to do odd jobs to earn pay for the things they want. One important thing is to let children know things are tight, but workable if all pitches in to help. My folks talked about doing jobs around the neighborhoods to earn extra cash when they were children, before they went out into the workforce. It can help strengthen a family if they work together for the a common cause. It is not shameful to be thrifty, it is wise and teaches all of us especially our children that when tough time come around, you adapt.
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April 28th, 2010 at 5:52 am
There are needs and then there are wants.
Make sure it is a Real need before buying and strictly limit the wants.
Cook once and eat twice. Buy cheap, cheap meats and use marinades and a pressure cooker. You will get delicious meals at bargain prices.
We marinated and slow baked a pork roast on Saturday and served 4 adults that evening. Sunday, my wife and I ate the roast for our Sunday dinner. Then my son ate a sandwich from the remaining roast for his supper, Sunday evening. The pork roast was on sale ($1.39 per lb), cost 6 dollars. That was good eating for a minimum cost.
We are frugal, we buy cheap, but not cheap products.
Live on 20% less than you did last year and DO save the money.
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Living frugally
April 28th, 2010 at 5:54 am
My parents both lived through it and I was taught from an early age to not spend more than you make and to save money for tough times. I have practiced that my whole life and even with the times we are having right now I consider myself recession proof.
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April 28th, 2010 at 5:56 am
Use it up;
Wear it out.
Make it "do",
Or do without.
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April 28th, 2010 at 5:58 am
Eat more fish
raise and home can your own veggies
raise chickens and/or cow/pig for dining purposes
be more judicious in combining trips with the car
turn off/unplug appliances that aren’t being used
more home/family entertainment
squeeze the buffalo real hard before you turn it loose
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April 28th, 2010 at 6:00 am
I haven’t lived through a Great Depression, but my husband and I are taking steps to cut back on expenses and most of all THINGS WE DON’T NEED!
Above all we have olive orchards and don’t pay for our yearly oil, and all this land enables us to plant most of what we eat, we also bought two pigs, goats and chickens so we don’t have to buy our meat. We have bees this year, so the milk and honey is flowing baby! However I draw the line at making my own bread!
All this is hard work, but we get satisfaction out of it and we spend a lot less money on food — and in case of a full breakdown in society, we will be prepared! This is Crete, anything is possible.
((((Red Queen))))
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April 28th, 2010 at 6:02 am
Stop eating out, buy and cook your own meals at home buy perishables as you use them buy frozen foods if you must but remember unfrozen is better for you. Stock up with cheap tins of vegetables salad is usually cheaper and better for you so lots of salad stuff, natural goodness is got from fruit and even some cheaper brands are now tinned in juice rather than syrup. to keep warm wear double or triple layers of clothing to save on heating a cheap but medium tog quilt or duvet will keep you toast warm in bed. don’t worry if meat is expensive look for more veggie stuff esp quorn products etc and if you are worried about vitamins fish is cheaper than meat if you cannot afford to supplement b6 b12 or omega 3, do not panic or panic buy.
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April 28th, 2010 at 6:04 am
in all honesty it seems as though a lot of our ’savings’ just come about naturally when we are retired.
i find now i am home i have more time to cook so i can use the less expensive, [tougher], cuts of meat and still have a good healthy meal.
i make my own soups.
stews are a healthy and tasty way to stretch your grocery budget – whether it be beef stew or chicken stew or even lamb! add a nice dinner roll or french loaf and you’ve got a really good meal!
we love pasta so we have spaghetti and meatballs one night a week.
i love my bread machine – we rarely buy bread anymore – sally lunn is hubby’s favorite bread!
most days a bowl of soup at lunch is more than enough as opposed to when we worked quite often we would eat out at lunch.
now that i am home i have more time to hang laundry instead of using the clothes dryer.
we have the time to do our own yard work instead of paying the neighborhood kids to mow the lawns.
we kept our life fairly simple throughout life so we didn’t suffer much in the way of traumatic cuts in our lifestyle.
we aren’t made of money by any means and we do have to watch our pennies but its okay – as long as we are healthy and have each other we’ll be fine.
thanks for asking!
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April 28th, 2010 at 6:06 am
Shop at Thrift stores and at Walmart ( I know–that’s baad)Buy store brands. Clip those coupons out of the Sunday paper and exchange with friends.Get your bread and pastries at a bread store. Walk more. Cancel the newspaper ( except for Sundays) and get your info. off the Internet.
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SORRY about the newspapers, really.
April 28th, 2010 at 6:08 am
I have had to cut down on eating out, running the air conditioner, and driving.
I love Goodwill, too. Whenever I need to make myself feel better I go there. I can always find a dress that I like.
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April 28th, 2010 at 6:10 am
Generic Dog food, and reusable adult diapers, hand washing down at the river is cheapest.
And I only go to basketball games when Miami is gonna kick San Antonio’s butt
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April 28th, 2010 at 6:12 am
1. Don’t buy books or DVDs – rent them from the library.
2. Don’t go out to eat as often – make it a rare treat.
3. Cook foods that can be made over. Roast two chickens at the same time. Use the leftovers for sandwiches, salads and/or soup.
4. Don’t buy bottled water. Invest in a water filter and do your own at home.
5. Make a weekly menu and only shop for the items you need.
6. Never ever go to the grocery store without a list. Stick to the list.
Just as an example: When the kids were small we knew a year ahead of time that we wanted to attend a family reunion in San Diego during the summer. There was no way we could afford a hotel during the peak season in San Diego so we found a campground right on Mission Bay. We also wanted to take the kids to Sea World. Up until then our usual Friday night meant ordering a pizza and renting movies. We switched to making a pizza and playing board games. We took the $20 a week that we would have spent and put it in a jar. At the end of one year we had just over $1000 and our trip was paid for.
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April 28th, 2010 at 6:14 am
I’ve been so stony broke along the way I’ve pinched pennies so hard one day a booger shot out Lincoln’s nose!
I can’t stand to look at another package of Ramen Noodles to save my life, but if you’re broke, they are really really cheap and filling.
One day I didn’t even have Ramen noodles, and I remembered my father told me that tomato soup was invented by hobos. It used to be you could walk into the lunch counter at Woolworth’s, and they used to have the condiments out on the counter. There would be ketchup, and crackers there. A lunch counter didn’t charge for water then, so you would ask for a cup of hot water, add a bunch of ketchup, and enjoy your tomato soup with crackers. Well, I scared up a couple of bullion cubes, some hot water and some ketchup, that was just about all I had left in the house at the time, but hey, it’s a hot lunch, and it didn’t turn out too terrible. There’s a blog out there where a couple is exploring how to feed themselves for 1.00 a day. The menu is pretty thin nutritionally, and they have lost a lot of weight, but it shows you can abide if you need to.
*Eat the best quality food you can possibly afford when you can afford it.*
Why? Because if you get in a situation when all you have is the makings of tomato soup, you have worked on building up your health before that, and hopefully have some reserves to deal with a thin week.
Some times when I was broke, but not that broke, I saved money by planning every meal I would cook in advance and making a shopping list. Stick to the list. Don’t get there, start shopping, and go Oh, boy, those donuts look good, and they’re on special. They aren’t on the list. Neither is that new shade of nail polish. After planning out the menus for the whole week, Friday was stone soup day. All the leftovers from the week went into the pot. It gets interesting. One good reason for careful planning for the other days.
If you’re going to use the time and energy to cook, make a double or triple batch, and freeze the rest. Saves time, and saves on frozen dinners when you don’t feel like cooking.
Goodwill is your friend.
So are flea markets and yard sales.
Retail therapy is not.
Save on gas by planning all your shopping and errands for one day a week, if possible. Think about where you need to go, what you need to do, and plan a circular route that will take you past the places you need to go to on the way up and back from your farthest point.
Get skills. The more skills you have to make whatever you need, the less you have to buy during lean times. However, weigh the cost of the time and materials to make it against the cost of having someone else do it. Making it yourself is not always a bargain. For example, you have "ok" woodworking skills, and you want a set of bookshelves. The bookshelves would take you 6 hours to make at your skill level. Let’s say you get an opportunity to pick up an extra 6 hours work that week, and can pick up a set of bookshelves on sale for 2 hours worth. Time is money, and you can use the other 4 hours you would have spent on the bookshelves making something else.
Explore creative recycling. It cultivates outside the box thinking that you can apply to other problems, and keeping it out of the stream to reuse it saves energy. The main thing to remember about household recycling is this. Don’t look at it as garbage, or you will make something that looks like you made it from garbage. Look at it as materials, and have respect for your materials, apply just as much craftsmanship to them as you would if you spent your hard earned money on supplies at a crafts store. There are people who are so good at that, they make a living from it. I could go on from there, but I guess this is long enough, the primary message above all is discipline and thought go a long way.
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