Last spring we conducted a sweeping survey of over 150 nonprofit executives about the effects of the pandemic on their organizations, their staffs and themselves. It illuminated some fascinating themes. The pandemic has surely produced and aggravated stress in the nonprofit world. Less intuitively, it’s also impacted many organizations favorably.
This earlier article discusses the results at a high level.
One of the most interesting findings is that the pandemic has had a positive effect on the financial health 44% of the organizations represented. Despite the tremors through our economy, just 39% reported a negative effect of the pandemic on financial health.
Why is this? It’s likely part due to government assistance. But the “financial positives” also saw improved fundraising results from multiple funding streams, and they reported improved relationships with funders. Intentionally or not, these organizations were well positioned to withstand a sudden storm. The data shows that the thriving nonprofits went into the pandemic with greater capacity and strong business fundamentals, notably regarding fundraising and communication. These organizations also had the confidence of their donors.
Reputation and, if you prefer, brand equity generally follow two things: a track record of delivering results, and effective communication with stakeholders. Both correlate closely with capacity and a strong business core.
These are valuable lessons from a volatile situation that none of us saw coming. As we prepare for what we hope will be a more steady near-term future, an essential question is this:
What can nonprofit leaders do now to best ensure future success?
My answer depends on whether your organization is in the “financial positives” or “financial negatives” group.
Photo by Alex Block on Unsplash.
If you’re a “financial positive” you have a unique opportunity to step back, reflect and build.
How can we reinforce our strengths? What growth opportunities do we have? Where should we invest to boost our resilience and grow sustainably? How can we proactively address emerging challenges such as changing attitudes on social and environmental issues, new approaches to workforce management and a restricted labor market? These big questions can inform a process of organizational development and design.
In short, this period of flux is an ideal time for “financial positives” to engage in strategic business planning, to lay out a course of action and the key underlying details for post-pandemic success.
What about nonprofits in the “financial negative” or neutral categories? If the past 18 months have not been kind to your organization’s financial health, this is an ideal time to assess, stabilize and reinforce business fundamentals.
What capacities do we need to be in the next generation of “financial positives?” How can we become more nimble and resilient? What are our key value propositions to stakeholders, and how can we sharpen them? These questions can be central to a business planning process that will use best practices to bosst performance and build resilience.
Both approaches should result in a practical, achievable plan of action.
What will our next shock be? The past century suggests only that it will come, and it will surprise many of us when it does. The COVID-era survey tells us that nonprofit leaders have an ideal opportunity to act now to prepare.