Wednesday, June 17, 2009

Crisis as an Opportunity Panel Discussion

The LAEA held their June 10th meeting called Crisis As Opportunity: Employing Strategies to Reduce Expenses that may Strengthen your Organization. The meeting began with a small group activity of participants looking at how they are responding in their personal lives to today's economic challenges. Ideas shared were:
  • Cut cable
  • Doing more with home
  • Being outside
  • Modify mortgage
  • Cutting eating out
  • Change brand of dog food
  • Cut down on garbage
  • Recycle
  • Plant a garden
  • Yard sale
  • Ride bus to work
  • Change utility provider
  • Move from land line to cell phone
  • Stay with grocery list
  • Use cash
  • Energy efficiency
  • Economize on vacations
  • Work multiple jobs to build up income
  • Thinking about purchases that aren't essential
  • Careful about what were we put our money
  • Pool as neighbors, share lawnmower, kids clothes, etc
  • Educate kids and setting good examples for them

The program then transitioned to a panel discussion featuring the following EDs:

  • Susan Kenny, Roxbury Arts Group
  • Debra Marcus, Planned Parenthood
  • Liz Callahan, Hanford Mills Museum
  • Jonathan Ullman, Soccer Hall of Fame
The panel began by discussing the challenges facing their nonprofits. Jonathan Ullman began by sharing that the Soccer Hall of Fame is looking at a long-term plan. The Museum can't just put a band-aid on to address issues. They are focusing on deferred maintenance needs now. They need to revitalize the museum to grow and attract audiences. They need to reinvent the organization.

The panelists all agreed that the problems they have now existed before the downturn, but these issues were exacerbated by the economic challenges.

Each organization is facing different challenges. Planned Parenthood is facing staffing issues and business costs associated with implementing electronic medical records. Roxbury Arts Group has seen funding cuts from the state and foundations. Donations and art sales are down too. Hanford Mills Museum has seen similiar developments.

Response
A number of panelists developed different budget scenarios to help their nonprofit proactively respond to funding cuts. Their organizations have put more effort into fundraisers. They are scaling back and focus their efforts. They are working to cover what they are doing now. The panelists also agreed that funders need to look at general operating instead of emphasizing new programs or efforts. Overall, their organizations need to be more productive and effecient.

Cost cutting
Cost cutting is a focus for many nonprofits. These organizations are looking at many areas, including: promotions; how staff are used; different ways of compensating employees; and staff furloughs.

Revenue generation
Generating more money is a main focus for many of the panelists. Ideas include: facility rentals; new membership campaign; new fundraisers; new approaches to sponsorship; and contracting services out (like food service).

Role of staff
The panelists found consensus about the role of staff in meeting these economic challenges. In order for the organization to survive, staff must adapt and change. The staff who don't engage will eventually leave or be asked to leave the organization. Overall, flexibility is key.

Board
The panelists also addressed the importance of the board and engagement. Nonprofits are faced with doing business in a new way. They can't look short-term, but need to change their behavior. Core ideas to help make this happen are:
  • Planning
  • Board education
  • Transparency
  • Communication

Watch some of the meeting below:



2 comments:

Michael Wesolowski said...

Wonderful panel discussion, valid points were made that we all can benefit from.

One of the final discussions about strategic planning and board development got me thinking about a really great reference book and a recent article in the “NonProfit Times.”

“The Executive Director’s Survival Guide provides ideas, stories, wisdoms and warnings to help Executive Directors navigate the complex position they are in, and find practical ways to deal with some of the obstacles they are most likely to face along the way... this book will increase Executive Director’s resilience, help them explore new ways of managing and leading their unique organizations, find their own path to personal and organizational balance, and thrive fully as nonprofit leaders.” I found the book imensly helpful when I was an ED. Find it at: http://www.edsurvivalguide.org/

In the June 1, 2009 issue of “NonProfit Times” appeared this article “Youth Movement Critical For Boards - The sheer number needed pushed charities to go young” by Mark Hrywna, and talks about:

“The number of nonprofit board members needed each year exceeds the 24 million population of Texas. "We discovered in surveying our marketplace, in any given year from one to the next, there's a call or a need for 26 million board members," said Linda Crompton, president and CEO of BoardSource in Washington, D.C.

Almost three-quarters of nonprofit boards are comprised of Baby Boomers (those age 46-64), according to BoardSource's Nonprofit Governance Index survey. Only 2 percent are younger than 30, with almost 30 percent between the ages of 30 and 49.

With 77 million Baby Boomers approaching retirement age, the intergenerational transfer of wealth was the good news for charities. This is the bad news: "We thought it (the need for board members) was going to be a tidal wave, and it looks more like a tsunami. It's a huge issue looming on the horizon," Crompton said.

"We're definitely seeing an aging of nonprofit boards right now," said Scott Leff, assistant director of the Bayer Center for Nonprofit Management at Robert Morris University in Pittsburgh. "The general struggle right now is to find good board members at the beginning, because there's such a proliferation of nonprofits. So, there's a lot of competition for a limited pool of good and interested folks to get in," Leff said.” Read more at: http://www.nptimes.com/09Jun/npt-090601-2.html

Amy said...

This discussion truly was an insightful and enriching experience. I'd really like to thank the executive directors who participated for their trust and openness in sharing their strategies and concerns.