Amidst the uncertainty of the moment, there is one common trend: the government is tightening the purse strings.
Many nonprofits may see an increase in the need for services but a steep decline in funding which will inevitably lead to making some tough decisions. If you’re a nonprofit leader, you may be wondering how to navigate this terrain.
On this episode, I’m going to share what the research says about how to effectively lead your nonprofit through a funding crisis.
SNEAK PEEK AT THE EPISODE…
⦿ [2:43] Nonprofit organizations and both the state and federal governments have been intertwined since at least the 1980’s.
⦿ [4:44] With each changing administration and with economic ups and downs, funding for causes fluctuates and that leaves nonprofits on the hook, scrambling to fill funding gaps to meet organizational needs.
⦿ [7:10] Well, the reality is that once organizations have cut down all other expenses, they often must employ survival strategies which may include laying off staff and restructuring.
⦿ [9:00] In the case of the Illinois budget impasse, leaders who were interviewed indicated that providing non-monetary benefits was helpful in combatting the increased job demands and emotional labor.
⦿ [11:28] One strategy is to keep the lines of communication open. Be transparent even when all you can offer is that you don’t know.
⦿ [17:30] There was also some pushback from donors and other stakeholders who criticized organizations for not having better risk mitigation plans such as diversified funding or reserve funds.
⦿ [21:00] If there is one thing you take away from this review of short-term and long-term effects of the Illinois budget impasse, I hope it’s that communication is key.
⦿ [23:18] This involves knowing “what should and should not be said.” And to this I would add knowing when to say what needs to be said.
⦿ [24:40] As we saw with the research on the Illinois budget impasse, the short-term and long-term negative effects of the strategies used by nonprofit leaders could.
Click here to listen!
Put it into Practice
⦿ What can you offer to support your staff during moments of uncertainty?
⦿ What is the reality of the current situation for your nonprofit?
⦿ Who are your stakeholders? What do they need to hear from you?
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Links Mentioned in this Episode:
⦿ Article: Nonprofit human resources: Crisis impacts and mitigation strategies
⦿ Article: When politics and public administration collide: The impact on human service delivery
⦿ Article: The intersection of nonprofit roles and public policy implementation
⦿ Article: Leadership and governance in times of crisis: A balancing act for nonprofit boards
⦿ Article: Sensegiving, leadership, and nonprofit crisis: How nonprofit leaders make and give sense to organizational crisis
⦿ Article: The state of crisis communication in contemporary nonprofit literature
⦿ Episode 25: How can nonprofit leaders prevent compassion fatigue
⦿ Episode 35: Revisiting prevention of nonprofit professional burnout
