Clearly, the current environment is a wakeup call for nonprofits. The good news may be this—nonprofits have faced and pulled through past crises—the Great Recession of 2007-2009, 9/11, COVID-19 and, in higher education, the Pennsylvania State University scandal. You can weather this storm. Now is not the time to panic.

The wise words of economist Bob Amara ring true, “We tend to overestimate the impact of phenomena in the short run and underestimate it in the long run.” This proposed federal funding freeze, while a shock at the speed, compels boards to act swiftly. But don’t react so quickly that you make poor decisions. There is value in strategically evaluating your current situation and determining the best next steps. By re-examining your strategy, operations, finance, budgets, annual reports and knowledge about your communities, nonprofits can rally, innovate and thrive!

Now is the time to dig deeper into what you know…and explore what you don’t. Recognize that your commitment will be tested, your assumptions challenged, boundaries crossed. Yet, it is your courage, your mutual respect and your commitment to your cause that enables you to surmount challenges.

Funding will not look like it did last year. Governing will be different. Boundaries must give way to new types of interaction and behaviors. Respect for the diversity of perspectives among board and staff members will be of greater value.

So, how do you do this? An in-depth review based on the board’s primary responsibilities is a great place to start:

Determine Mission and Purpose

• Review and recommit to your mission.

• Articulate your mission statement, values and impact within the context of your current situation.

Exercise Fiduciary Responsibility and Oversight

• Recognize the obligation to continue the mission as long as the need exists and be willing to “reinvent” your approach to sustain it.

• Conduct a cash flow analysis of monetary sources now and project the budget in six and 12 months. Include the likely impacts of nonprofits within your “supply chain,” as well as your for-profit corporate and business partners.

• Talk to your banker about gap funding, zero interest loans and bank tax credits applicable to nonprofits.

Ensure Effective Organizational Planning

• If you have a strategic plan, review it and look for strengths and opportunities for new or innovative thinking, while you assess weaknesses and threats. If you don’t have a plan, develop one.

• Incorporate scenario and contingency plans. Think through different possible futures including the “worst case scenario” and the potential impacts on your business operations. Your top priorities are the strategies that will work in any scenario.

• Consider inviting respected community leaders to your discussions. Be open to ALL ideas because nuggets of actionable steps can emerge that can lead to successful transitions in turbulent times.

• Seriously examine collaboration. Now may be the time to explore economies of scale, share staff and/or consolidate operations.

Ensure Adequate Resources: Resource Development and Fundraising

• Tell your story in a way that connects to people at a “heart level” by explaining the direct impacts of funding cuts.

• Organize a “cash now” campaign. Don’t be afraid to ask. Donors often increase their support in crises. Do not hesitate to ask for second gifts, increased gifts or early activated planned gifts. If you’re not experienced in asking, work with a board member or volunteer who is, or contact a consultant for coaching.

• Encourage board members to take a leadership role for a particular segment of fundraising. Build a small group, develop relationships with corporations and foundations, advocate to community foundations, state and federal leaders, talk to major donors and promote planned giving programs.

• Pay attention to sometimes overlooked audiences. Look to your clients for opportunities. Approach the parents, family relatives, community foundations or friends for gifts. In one instance, an aunt made a $2 million estate gift because she was grateful for how her nephew with a disability was treated during youth sports camps. During COVID-19, some philanthropists expanded their interests and foundations eased their application process.

• Explore models that generate income. Sponsorships, training or educational programs, renting space and other strategies could be pursued.

Enhance the Organization’s Public Standing

• You can never overcommunicate in a crisis. Board members must be strong and proactive in making the case for support with donors, community leaders and elected officials. We learned this lesson during COVID-19. Email and social media have a role, but personal contact by board members is more powerful and provides feedback about the donor’s values, beliefs and philanthropic interests.

Having the courage to change, the fortitude to take on new roles and the grit to pursue sustainability are essential in times of crisis. Thoughtful planning and execution especially in times of crisis are the keys to success!

To learn more about board roles and leading during crises, contact Debra Thompson at debbie@getstrategy.com or 814-397-5241, or contact Margie Taylor at mtaylor@getstrategy.com or 814-602-4158.