In the “New Normal” success will require acknowledging trends, assessing your organization’s health accurately, and adapting proactively.
Are there fault lines in your fiscal forecast?
In my first follow-up post to last week’s United Front 2010, I wrote about State Economist Dr. Tom Stinson’s take on what the new normal is, and what it will mean for Minnesota nonprofits. I promised that in future posts I would delve into different recommendations shared at the program to ensure organizational sustainability. With this post I’d like to touch on some thoughts from general session panelists.
“When You’re Doing Poorly, It’s Too Late”
Among the panelists was MayKao Hang, incoming president and CEO of the Amherst H. Wilder Foundation. As you may already be aware, the Wilder Foundation has suffered the effects of the economic downturn, and in response, the leadership at Wilder made the difficult decision to cut both programming and staff.
Hang’s advice is to consider carefully your current financial fitness and try to get ahead of potential problems by making decisions from a position of relative financial health and power. “When you’re doing poorly, it’s too late,” she stated. Sarah Caruso, president and CEO of the Greater Twin Cities United Way, corroborated Hang’s comment, warning audience members “Don’t wait for the cracks to show.”
Caruso went on to tell the story of two nonprofits that came to the United Way considering a merger only to choose against it. Both subsequently suffered further financial hardships and found themselves so weak that a merger was no longer a viable option for either.
Identifying the Cracks, Before They Develop
If you’re a nonprofit leader looking to assess your organization’s financial wellness and map future contingencies to anticipate and plan for change in this new economic landscape, Nonprofits Assistance Fund has a variety of resources and tools. Their Sustenance in Lean Times web page provides an excellent starting point for spotting potential weaknesses and building contingencies “before the cracks show.”
“Skate to Where the Puck will Be”
In his closing statements at United Front Tom Stinson quoted the great Wayne Gretzky, and it seems appropriate to reiterate those words here, “I skate to where the puck is going to be, not where it has been.” In the new economy, this prescience will be crucial to creating sustainable futures for nonprofit organizations, and in turn, better outcomes for the people and state of Minnesota.
- Cary Lenore Walski, MCF web communications associate
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