December 29, 2008
When Neal St. Anthony called last week for background for his “Charity Funders Feeling Pinched” story, he was probably hoping for some dramatic news about a rosy outlook for 2009 — aren’t we all?
We at MCF don’t have a crystal ball, but we have gathered lots of information from our members about what they anticipate for the year ahead. And while their predictions aren’t necessarily rosy, our outlook has some glimmers of hope . . . and lots of heart.
At three member roundtable discussions about the economy in November, the outpouring of concern for nonprofits and the community was consistent. MCF members challenged each other to respond quickly and creatively. Could the adversity create opportunities for innovation? Will this bump in the road force us to refocus on our missions?
From our 2009 Outlook Report survey of members and other large foundations and corporate giving programs, we learned that many foundations are doing everything they can to maintain giving levels despite dramatic asset declines. Respondents reported across-the-board reductions in administrative costs, staff cuts, and streamlined processes. In addition, some noted that they’re adjusting giving guidelines to be responsive to immediate needs, and others are offering non-monetary technical assistance and in-kind support.
You can read more about our 2009 Outlook Report next week, including how future grant amounts are expected to be affected by the economy. In the meantime, let’s all continue to share compassion and remain hopeful for the new year.
– Wendy Wehr, MCF Vice President of Communications and Information Services
No Comments » | 
economy, mcf, nonprofits, research | 
Permalink
Posted by Wendy Wehr
December 22, 2008
The Star Tribune has a series of articles about the recession’s effect on nonprofits:
From one of the articles:
The recession of 2008 has hit nonprofits harder and faster than previous recessions. And because more than half of nonprofits get most of their individual donations in the fourth quarter, they are already seeing donations plummet.
So what are nonprofits to do in the face of smaller donations and potential government cuts? Here are some suggestions:
- Nonprofits Assistance Fund executive director Kate Barr says one response is to find creative ways to raise money online.
- A Star Tribune blogger says that nonprofits need to learn how to tell their stories, if they want to receive money from him.
- The Chronicle of Philanthropy is tracking local newspapers that help readers give. For example, the Washington Post has an interactive map that shows charities in the D.C. area. Is anyone in Minnesota doing this?
- Nonprofit Communications blogger Kivi Leroux Miller says that nonprofits still have time for their even-more-important holiday fundraising e-mail appeal. Find an archived radio broadcast on this topic and many more resources about how to take advantage of end-of-year giving.
How can individuals help?
Join the conversation: How else can we all help nonprofits through the recession?
1 Comment | 
economy, fundraising, holiday, in the news, nonprofits, technology, volunteers | 
Permalink
Posted by Crystal Colby
December 22, 2008
A report was recently released that relates directly to the work that I am doing with the Minnesota Council on Foundations and the Public and Nonprofit Leadership Center. The report was published by the National Committee for Responsive Philanthropy and is titled Strengthening Democracy, Increasing Opportunities: Impacts of Advocacy, Organizing, and Civic Engagement in New Mexico. The report is the first in a series to be produced in regions across the country; Minnesota is scheduled to be one of the regions for a future report.
In this report, NCRP studied 14 organizations in New Mexico that work with underrepresented constituencies to organize and advocate on a range of issues. One startling accomplishment was that “for every dollar invested in the 14 groups for advocacy and organizing, the groups garnered more than $157 in benefits for New Mexico communities.” These benefits help workers meet their basic needs and provide significant economic stimulus for communities. “For example, every new dollar in state Medicaid funds results in $4.74 of business activity.” During the current economic crisis, policymakers should consider expanding public programs (e.g. health care, child care, food support, and energy assistance) as part of the overall economic recovery package.
The report also makes a great case for why foundations should be funding advocacy, organizing, and civic engagement activities. “If foundations truly want to maximize their impact and effectiveness, NCRP recommends providing general operating support and multiyear funding to effective organizations… so that disadvantaged residents can advocate and organize to strengthen their communities.”
- Ryan Johnson, MCF’s public policy fellow. This entry was also posted at the Humphrey Institute of Public Affairs’ blog, Pub Talk.
No Comments » | 
economy, nonprofits, public policy, research | 
Permalink
Posted by Ryan Johnson
December 17, 2008
 |
| The MCN Nonprofit Current Conditions Report shows that more than 54 percent of nonprofits are experiencing a decline in total revenue, while nearly 50 percent have increased expenses. Find this report and the Minnesota Nonprofit Economy Report (PDF files) on MCN’s website. |
The Minnesota Council of Nonprofits held a briefing yesterday on the economic outlook for nonprofits. MinnPost (Economic briefing for nonprofits offers some optimism, plus reality checks and strategies, for 2009) and the Star Tribune (Minnesota nonprofits slash staff, budgets) each published articles today about the session.
While the statistics and surveys may sound bleak, there was a modicum of hope within the nonprofit community at the meeting. We came away with a number of great ideas worth passing on:
- Consider all ideas and solutions. Nonprofits Assistance Fund can help you assess your business model and think through different financial strategies for your organization. At a time when credit is tight, they recently received an additional $1 million specifically to lend to nonprofits over the next three years. Struggling nonprofits can contact them for financial assistance, training, and guidance.
- You are not alone! It will be beneficial for more nonprofits to reach out to partners in their sector and community to collaborate on more projects. Network with similar nonprofits. How can you collaborate? Who can do deliver the service?
- Mergers are certainly an option, and in times like these and it is often common to see nonprofits merge to gain efficiencies. MAP for Nonprofits’ Project ReDesign is a resource for support.
- Nonprofits should think long term in terms of organizational capacity and financial planning - not just the “quick fix” approach.
- Tap into your volunteer pool in new and creative ways. One organization has a volunteer who does nothing but fundraising.
- Develop a for-profit business, or social enterprise, that can help support your nonprofit:
- Return on Investment (ROI) studies will help nonprofits build their case for funding and help shape public policy. Wilder Research has found a positive ROI correlation on a recent childcare study.
Join the conversation: What are more ideas for how nonprofits can weather the recession?
No Comments » | economy, nonprofits | Permalink
Posted by MCF Webmaster
November 21, 2008
The ongoing debate about restricted program support vs. unrestricted operating support is front and center again.
In our post yesterday we asked about other ways that grantmakers can help nonprofits during this economic downturn (and today’s Star Tribune has an article on this topic, too). Some MCF members — and lots of nonprofits — are suggesting that grantmakers should loosen restrictions on grants so that nonprofits have more flexibility to use funds to support their core missions and, if necessary, to reorganize to survive. This message has been voiced at the first two of three economy roundtables that MCF is hosting with members this week and next.
To help nonprofits manage through the economic downturn, foundations could remove restrictions from grants already made, as well as offer more general operating support grants in the coming year. One MCF member offered one example of the perils of restrictions: A financially-strapped nonprofit dissolved a program that had received $300,000 of dedicated program support; in the end, only $20,000 was available to add back to the organization’s bottom line. In situations like these, the nonprofit needs to have a safe conversation with the funder about how grant monies might become unrestricted or redirected to another program.
The call for more funding flexibility is being heard nationally, too. During a webinar hosted by the Taproot Foundation on Wednesday — “When Hand-Wringing Isn’t Enough: Proactive Approaches Funders Can Use When the Economy is Upside-Down” — panel members encouraged more focus on capacity-building support and unrestricted funding. They also talked about safe conversations: grantees need to be transparent with funders about their situation, and funders need to be open and clear, too. Said one panelist: “Anxiety is driven by ambiguity.”
Taproot has a specific focus on pro bono services and corporate volunteerism. During the webinar discussion panelists noted that, to build a successful volunteer program, nonprofits also need funds to create the infrastructure to recruit and manage volunteers … yet another example of why nonprofits need flexible, unrestricted grants to build capacity and further their missions.
Join the conversation: How are you adapting to the economic crisis? Grantmakers, are you ready to announce changes in your grant guidelines and funding restrictions? Nonprofit leaders, what steps are you taking to boost your unrestricted support?
- Wendy Wehr, MCF V.P. of Communications and Information Services
1 Comment | economy, fundraising, general operating support, grantseekers, nonprofits | Permalink
Posted by Wendy Wehr
November 5, 2008
 |
| ABCNews.com’s home page the morning after the election. |
The Chronicle of Philanthropy covered an Urban Institute event titled “What’s Ahead for Civil Society?” on Election Day. One panelist said that nonprofits need to “convince the new president [who was, at that time, not yet elected] and Congress to bolster the ability of charities to tackle the nation’s social problems” in light of the economic crisis.
Another panelist speculated that Obama’s tax proposals may help increase charitable giving. The Chronicle earlier profiled the nonprofit and philanthropy positions of the candidates; read more about Obama.
Updates: On Thursday, the Chronicle of Philanthropy posted a new story about what charities can expect under President Obama. Next week’s live chat will be a discussion of what the results mean for nonprofits and foundations. Submit a question now or check back Tuesday at 11 a.m. Central.
Join the conversation: How should the nonprofit world advise President-Elect Obama? Add your thoughts here or at philanthropy.com (the text at that link was written last week, to solicit advice no matter which candidate won, but the comment section is still open).
2 Comments | economy, government, nonprofits | Permalink
Posted by Crystal Colby
October 27, 2008
It’s certainly not news that charities are among those struggling right now. Every day seems to bring more and more stories about the impact of the economy on nonprofits.
A survey by Convio, conducted in September and released today, has good news: nearly 70 percent of Americans plan to give at least as much as they did last year, though 33 percent plan to give less.
Rich Cowles, executive director of the Charities Review Council, wrote an editorial in today’s Star Tribune, arguing that the values that drive charitable giving are just as important now:
Just as we wouldn’t think of leaving our neighbors to flounder in a snowbank, we shouldn’t leave behind the most vulnerable among us to struggle for survival. [...] Perhaps we can identify better with the truly needy when we are less comfortable ourselves. And perhaps we can understand better what we need vs. what we want, and find money left over to help others who don’t have enough to cover basic needs.
More links:
2 Comments | economy, individual giving, nonprofits | Permalink
Posted by MCF Webmaster
