Uncertainty and new challenges are threatening the survival of many businesses.
Climate change, technology, and, more recently, disruption to supply chains are playing a role in disrupting recovery post-pandemic. Many companies that would ordinarily be back to normal operations have found trading challenging due to their over-reliance on just-in-time inventory and delivery.
There are many more worries for businesses, including staffing, working capital and cash flow constraints.
Do you think nonprofits are fairing any better than for-profit businesses? Nonprofits also need to find solutions to staffing and financial management limitations and how to bring money in – i.e. fundraising.
In a recession or economic recovery, where trading is slow for-profit businesses have an easier time than nonprofits generating revenue. Business survival is the focus now, and in this article, we look at how nonprofits can stay in business when the world around them is changing.
A CharityNetUSA report found nonprofits experienced lost revenue, cash flow and staffing issues due to COVID-19:
- Of the 79% of nonprofits that lost revenue during the pandemic, 38% say it was more than 50%
- Only 25% of nonprofits say they have enough cash flow for expenses
- 60% of nonprofits had to furlough staff
Recovery and Reinvention
Creating a nonprofit is no simple task, and if your nonprofit was doing well before the pandemic, you could start your recovery process right where you left it in good working order.
Analyze what was working and find out if it can perform once again as it did before.
Plus, now is as good a time as any to identify what areas of the operation need improvement.
Raise the bar higher, so your objective is to be successful once again and sustainable when market confidence takes a turn for the worse and consumers stop giving.
The Mission Revision
Revise your mission statement – for today and the new normal. Forbes says nonprofits can focus on equity and inclusion. Covid-19 revealed health inequities among different races and areas with under-resourced communities. Nonprofits can show they’re making a stand for inclusion and equity with their systems and volunteers, as well as external participation in events.
A relevant and purposeful mission statement is the best way to get employees, volunteers, and potential donors on board.
Letting people see what they are investing in, giving them something to relate to is a way to draw in money and word-of-mouth marketing. Donorbox.org has tips on writing a mission statement.
Funding may come from unusual sources
While individual donors are fantastic to have, that’s not the only source.
Grants given by large entities such as businesses, organizations, or even government agencies can be an enormous help. Research grants that apply to your organization and apply for them.
Getting a grants management system is key for this, as there are typically many out there to apply to, each with its own nuanced application process.
Ethical investing collaboration
Ethical investing and social enterprise are synergistic and can drive awareness, recognition and raise funds from sources including for-profit businesses, trusts, philanthropists, entrepreneurs, celebrities and so on.
Seek ways to partner on marketing campaigns and social and environmental awareness events.
Remote working must be considered while hiring the appropriate employees.
From the board director to the newest volunteer, you want everyone associated with your organization to believe in your mission. Your goal statement should be clear to everyone and align with their beliefs.
You want employees that are not just enthusiastic but also well qualified and have the abilities necessary to keep things running smoothly. You’ll also want diversity, particularly on the board of trustees, to represent a wide range of talents and networks.
An organization that establishes an online collaboration environment has a better chance of succeeding. Furthermore, employing remote working tools promotes purpose cohesiveness.
Use online collaboration tools for virtual meetings, programs, and fundraising activities.
A Publicity Strategy
Work with your team to develop a strategy that considers how your firm might reach out to its target audience. Test various strategies, determine which are the most successful, and concentrate on those to increase contributions.
Determine what distinguishes your organization and utilize it as a hook. Be consistent. According to studies, individuals must view a message seven times before it sinks in.
Continuous reflection and adaptability
The same fundraising activities that succeeded before Covid may not function today.
Take the time to assess your fundraising tactics and who they’re suited for since many of your donors are likely no longer able to donate as much, if at all.
Be willing to adapt. You could even want to get the help of an outsider to assess both your internal and external efforts to identify where you can improve.