As COVID 19 changes the economic landscape in the United States, many non-profit organizations are experiencing dramatic changes in their operations, financial security and future plans. At the same time, these organizations see a greater need for their services, both in the near term and throughout recovery.
As events are cancelled, including fundraisers, annual meetings, and only partial refunds received, many organizations contemplate the impact of cancellations on what is typically a busy fundraising season. Many non-profit organizations maintain reserves to help during financial hardships, though few have reserves sufficient to span the long-term horizon posed by COVID-19.
The Stanford Social Innovation Review performed a survey demonstrating 73% of organizations surveyed reported a drop in revenue.
Further questions arise surrounding the viability of a virtual model of service provision, which also requires a significant shift into a digital model for many organizations. Will these programs generate and sustain revenue?
A Time of Survival for Non-Profit Organizations
Sustaining revenues in the nonprofit sector is always top of mind, and as organizations contemplate reduced funding and resultant impact on programs and employees, new operating plans are essential. Executives have transitioned from long term planning efforts to short term survival, and time is of the essence.
SeaChange prepared an overview of action items for nonprofit leaders and Boards to consider – urging decisive action, ‘Tough Times Call for Tough Actions’.
Category One created a ‘Crisis Response Toolkit’ to help non-profit organizations develop plans for staff safety, financial security, program and service delivery, leader support, team success and planning.
CLA takes a look at ‘Financial Leadership in the Face of Impossible Choices’ urging a close look at both revenue and expense levers to impact prior to cutting staff ()
Getting involved: The Council of Non-Profits created a One-Pager on nonprofit priorities for legislation.
Let us know how COVID-19 is affecting your organization. We know the pandemic impacts different types of non-profits in different ways.
We hope you found this article insightful. Check back frequently, and feel free to contact us at any time with your questions!