The Nonprofit Sector in the Wake of COVID-19
We know that many nonprofit leaders in our region have had to make difficult decisions regarding the needs of those they serve and the viability of their programs. These decisions will have long-term effects on their organization and the community-at-large; we also know that more of these choices will have to be made in the months ahead.
This rapidly changing environment can feel overwhelming. Nonprofit leaders want to be confident that their decisions reflect the most up-to-date information so they can assess the possible impact it will have on their organization's mission.
Causewave has identified four different trends that are affecting the nonprofit sector to help you prepare your organization for the uncertainties of 2021.
A PROFOUNDLY UNSTABLE, UNCERTAIN ECONOMY: A slow and uneven recovery is predicted; plus, an unclear future makes job recovery unstable. Reopening’s are coming with mixed signals for recovery. And those on the financial margins are more deeply affected.
AN ACCELERATED DIGITAL TRANSFORMATION: The transition to work from home happened overnight; it required rapid adoption of multiple technologies, and now virtually every job is more tech-enabled than it was before. The digital divide was exposed, and plans to close that gap are becoming a higher priority. Major changes to service delivery and event fundraising occurred.
INTENSIFYING COMMUNITY NEEDS: Basic needs access continues to be the most pressing need and concern for the future. There is an increase in mental health and substance abuse needs, however, help seeking rates are down. Equity issues more prevalent across the board (race, ethnicity, gender, socioeconomic status, age).
NONPROFIT ORGANIZATIONAL VULNERABILITY ON THE RISE: Loss of event and individual donor revenue resulted in significant revenue gaps. Government funding is more uncertain than ever before. Businesses are hurting and cutting staff, putting nonprofit support at risk. Traditional volunteerism is changing.
What does this all mean for your organization? What’s next? We encourage you take time to identify how these trends may impact your organization. To help focus your planning, we offer these three key takeaways:
BE REAL: Have honest conversations with your staff and board. Be willing to make tough decisions regarding program, staff, and board challenges sooner than later. Be realistic about what the coming year might look like. For example, there is not enough money in philanthropy to fill gaps created by state and federal funding cuts. What does that really mean for your org?
PARTNERSHIPS: Embrace collaboration in deeper and more meaningful ways than before. Challenge your organization to be innovative; focus on what you're best at; partner with others to fill the gaps.
FOCUS: This is probably not the time to add new programs or services. Think about what can be paused or stopped in order to focus on the most critical mission activities.
As always, Causewave is here for you and your organization. If you are interested in scheduling a time to discuss your COVID-19 planning and response, email us at info@causewave.org. We will get back to you as soon as possible with more details. All COVID-19 planning sessions are free of charge as an extension of our existing free Coffee & Consult program.