Many businesses face uncertainty and new challenges that threaten their survival. Climate change, technology, and recent disruptions to supply chains are hindering recovery post-pandemic, especially now in 2023 amid a recession. Companies that would typically resume normal operations struggle due to their heavy reliance on just-in-time inventory and delivery systems. Beyond this, businesses are also grappling with issues like staffing, working capital, and cash flow constraints.
Nonprofits aren’t faring any better than for-profit businesses; they too must tackle staffing, financial management issues, and fundraising challenges. In tough economic times, for-profit businesses generally find it easier to generate revenue than nonprofits. The priority now is business survival. This article explores ways nonprofits can stay afloat in a constantly changing world.
According to a CharityNetUSA report, nonprofits have faced significant hurdles due to COVID-19:
– 79% of nonprofits experienced revenue loss; 38% of these lost more than 50% of their revenue.
– Only 25% of nonprofits have adequate cash flow for expenses.
– 60% of nonprofits had to furlough staff.
Recovery and Reinvention: Starting or running a nonprofit is challenging. If your nonprofit was doing well before the pandemic, you could begin your recovery process by analyzing what used to work and determining if it can still be effective.
The Mission Revision: Revise your mission statement to reflect today’s reality and the new normal. Emphasize equity and inclusion, as COVID-19 highlighted health inequities among different races and under-resourced communities.
Funding from Unusual Sources: While individual donors are important, they’re not the only source of funding. Seek grants from businesses, organizations, and government agencies. Use a grants management system to navigate the various application processes. Partner with for-profit businesses, philanthropists, and other entities for marketing campaigns and awareness events.
Finding the Right People with Remote Working: Ensure everyone involved in your nonprofit, from board directors to volunteers, believes in your cause. Your mission statement should resonate with their values.
A Publicity Plan: Work with your team to develop a plan that targets multiple channels to reach your audience. Experiment with different methods, evaluate their effectiveness, and focus on those that drive donations.
Constant Introspection and Flexibility: Fundraising events that worked before COVID might not be as effective now. Reassess your fundraising methods and tailor them to your current donors, who might not be able to give as much or at all. Be open to change and consider external advice to identify areas for improvement.
