Monday, February 16, 2009

Monday, February 16, 2009

Question: My nonprofit has been told that we should be expecting a 20% decrease in next year’s budget. What should I do now to protect my nonprofit and my employees? Question Submitted by blogger.

Dear Reader, the next fiscal year that starts on July 1st for most nonprofits will be extremely difficult. Many agencies that depended solely on government funding and did not take the opportunity to build relationships with foundations, individual donors and corporations will probably have to lay off some employees and curtail services. Some nonprofits might even be forced to close altogether. However, here are some practical tips you can use.

1. Identify how much money you actually expect to loose from the cutbacks. If you have a $2 million dollar budget, do you expect to have to raise $200,000 or $400,000?
2. Once you know the amount you need to raise, break it down even further. If you need $400,000, can you raise $200,000 from foundations, $100,000 from your dinner and $100,000 from donors?Along with these points, there are some things you can do with your contractors to prevent additional cuts. Here are some suggestions.
3. Are you attending every meeting you are invited to? This includes any training your funder is going to.
4. Have you invited your funder to visit your agency? Many contractors and foundations want to visit your agency. Make sure and have coffee and pastries when they do visit.
5. Ask for the opinion of your funder? It’s important to know what they are thinking. In fact, its simply courteous to let others talk. As Executive Directors and managers, we like to be the ones talking sometimes.
6. The last point is very important. When a funder visits you, put a sign on your front door that says “Welcome (name of funder)”. Put about four of these around.

The question is difficult, but the answer is even more difficult. As nonprofit Executive Directors, most of us did not expect we would be sales persons. We thought we would be working with children, families and others in need. The reality is that your ability to be a sales person will lead to the help you expect these groups to receive.To be brave in this situation is to understand that leadership is being a salesperson for your nonprofit. To be weak is to beleive your destiny has been predetermined and allow your services to be reduced and staff to be laid off?

These are just my thoughts. What do you think? Post a comment.If you'd like me to expand on any point or answer a new question, please e-mail me at: .This is an official blog of

You can now post jobs for FREE, Post your Nonprofit blog for FREE, Post your FREE consultants ad, list your nonprofit organization, post your resume,

No comments: