How Your Nonprofit Can Weather the Economic Storm

In late 2008, Sage Nonprofit Solutions along with The Chronicle of Philanthropy created an online survey to identify how non-profit organizations were weathering the soft economy, and, more specifically, to identify the impact of the economy on giving.

Respondents said that their top challenges were:

• A decline in total revenue (52% reporting as a major challenge)
• A decline in revenue from individual gifts (61% reporting as the funding source as having greatest impact)
• An increase in expenses to meet increased demand for services

Now, almost a year later, the pressure is still on for non-profits and it doesn't look to be letting up for some time to come. And, non-profits are the last to emerge from economic downturns. Clearly, non-profit leaders know it is no longer business as usual for organizations.

Recognizing that the economic waters are going to be turbulent for some time to come, non-profit leaders are realizing they need proactive strategies to face the days ahead. It is imperative that non-profit organizations undergo a broader assessment of their situation than just reviewing the balance sheet as they try to carry on delivering on their mission. The sustainability of anynon-profit depends upon executive leadership and boards having and understanding reliable data, planning assumptions, cash flow projections, and a process to "stress test" the organization.

This is why Patmos Consulting has developed its Risk Navigation Tool. We are pleased to release this online tool beginning this September. It allows your organization to undergo a "stress test" not just to validate your survivability, but also to serve as an aid to help your leadership identify the risks they face and to prioritize and act upon suggested action steps that will help you become more resilient and navigate these turbulent economic waters.

How it works

Although it seems scary and even complex, these forward‐looking assessments  are regularly integrated into traditional risk-management practices. They look at the impact a range of possible outcomes can have upon an organization. The online Risk Navigation Tool provides a "stress test" for your organization by:

• Asking your leadership team 20 questions that cover four concern areas:

1.  Financial (process, resources)
2. Organizational (decision making, governance)
3. Infrastructure (IT, Physical)
4. Programmatic delivery (public relations, community presence, economic analysis)

• Upon completion of the "stress test" a report is generated assessing how prepared the organization is overall to operate in the current economic climate. The report provides thorough recommendations that the organization could consider to reduce its risk and be better prepared to operate in this climate.

• The Risk Navigation Tool is a helpful aid to non-profit leadership to formulate strategies and prioritize action steps to lower risk.

Curious to learn more? Simply sign up for our eNewsletter to find out how your organization can use the Risk Navigation Tool when we release it next month.