Blog 1: A Pep Talk

Nietzsche once said, “That which does not kill us makes us stronger.” You’ve probably also heard the phrase, “Evolve or die.” As harsh as they may sound, these sentiments are true personally and organizationally. Now you’re probably thinking to yourself, “Hey, I don’t hear any pep in this talk!” Here it comes in the form of another quote and some support MissionWise is going to be providing over the next few months. The quote is not credited to any one person, but it packs a punch. Brace yourselves. “Challenges like the ones we face today shake us back to reality, connect us once again with our fundamental purposes and passion, and promote growth. This is not a time to circle the wagons, but to grow and be creative.” You can do it and your organization will be stronger when we go back to our economy just being in a downturn.


Over the next few months, check back on our blog, where MissionWise will be helping you look at your organization from the inside out and find areas to rethink, retool, develop, strategize – evolve – in order to not only survive but thrive. We will be covering topics such as focusing on your mission, developing a diversified income and earned income strategies, getting your board involved, rethinking your programs, and fundraising and marketing strategies, finding and working with partners, measuring your successes and more.

We hope that you will join us for this journey and will actively participate by posting your questions and thoughts along the way.

The Brain Drain

Do you know anyone that was planning on retiring in 2008 and put it off because the balance of their retirement fund was basically cut in half due to the massive downturn in the economy? It’s a common response to a reduced retirement fund, especially in the nonprofit community, which as it turns out, may be a blessing in disguise.

Studies indicate that approximately 75% of executive directors planned to move on within the next five years, yet only 44% of organizations reported having a succession plan. Yikes!

Now you’re probably wondering how this can possibly be a blessing? If baby boomer executive directors are sticking around for a few more years, then there is an opportunity to develop and implement a succession plan. Even better news is the amount of research and resources available on the subject. We’ve picked out a few we like for you.

Resources on the leadership situation and succession planning:

• Board Source: Succession Planning
• Foundation Center: Succession Planning
• Stanford Social Innovation Review: The Leadership Deficit
• MetLife Foundation/Civic Ventures New Face of Work Survey
• Shift: Beyond the Nonprofit Leadership Crisis
• Daring to Lead 2006: A National Study of Nonprofit Executive Leadership

So tell us, do you have a succession plan? If not, do you plan on developing one in the next year? If not, why are you putting it off? Inquiring minds want to know.

The Pink Slip

Sending out the proverbial pink slip is becoming a common practice everywhere these days, but the best approach to it is often elusive. Here are three things to consider:

1) Understand the problem. This seems like common sense, but is worth reiterating. The executive director should ensure he or she has a firm understanding of the situation. This should include not only the financial situation, but an in-depth understanding of the needs of your clients – now and in the next few years, the internal and external politics, status of your peer organizations, and fundraising and industry trends.

2) Develop a Solution. A common approach to downsizing is to lay off a percentage of people in each department based on his or her level of seniority or salary. This approach doesn’t necessarily promote the organization’s health. Perhaps you need more people doing programs and can outsource the accounting to a third party vendor for less. Perhaps a peer organization down the street offers a similar program and frankly, does it better. The strategy chosen for downsizing should be about preserving intellectual capital, meeting community and client needs, and keeping the highest performing employees. One you’ve decided on your strategy, write it down, conduct a SWOT analysis, identify all the risks and proactively address them.

3) Implement with Care. Put yourself in your employees’ shoes. When and how would you want to hear about layoffs? What would you want to hear from your manager? How much notice would you want? Be fair, be honest and be timely. Your employees are the organization’s champions. You want to keep them that way even after they leave. Remember: Never burn bridges.

The Recession is a Double-Edged Sword

How can this recession possibly be a good thing? Well, it helps to be a "half-full" kind of person, but if that doesn't come easily for you, check out the latest report issued by the Corporation for National and Community Service. Guess what, volunteer rates are up for 2008! Turns out that while people can't give as much money as before, they are giving more of their time. Here are two articles that discuss this favorable sea change.

Despite Recession, Americans Are Volunteering (Alot) More

Unemployed in Berks volunteering their time to grateful nonprofits

Rebrand Now?

Okay, we know we’re in a recession and times are tough for nonprofits. Did you also know that the growth of the nonprofit sector coupled with decreased government, foundation and individual giving has led to increased competition for stakeholders’ attention?

As of 2006, there were 1,478,194 nonprofit organization registered with the IRS . With messaging coming from all these nonprofits, an organization should ensure that the message they are sending is up-to-date, clear and concise in order for target stakeholders to see your organization amongst the clutter.

A brand provides a framework for communicating an organization’s core promise and/or mission to external stakeholders including donors, volunteers, clients and the public. Research shows that a strong, managed brand increases differentiation, communicates the mission and its values more effectively, builds loyalty and trust, and if maximized to its fullest potential, can even lead to more donations.

So, if you’re organization’s brand no longer reflects the organization and you’ve got the resources to do it, now would be a great time to update your brand.

Effects of the Economic Crisis on Health Foundations: Grantmakers in Health (GIH) Survey Results

The United States is experiencing its most severe economic crisis since the Great Depression, a crisis of global proportions with effects well beyond our borders. The subprime mortgage crisis, a volatile stock market, and job losses have taken a serious toll on the nation’s economy and the welfare of our most vulnerable communities. Like the rest of the economy, foundations are feeling the squeeze: fewer resources coupled with the increased need of individuals, families, and communities.

To learn how health foundations are responding to the current economic crisis, Grantmakers In Health surveyed the field at the end of 2008. The survey sought information on how health foundation assets and grantmaking budgets have been affected, the strategies health foundations are using to support grantees, and how foundations are addressing their own financial challenges.
Survey Highlights:

• 91% of GIH Funding Partners reported a decrease in asset base
• 61% are seeking new collaborations or partnerships with other public and private funders
• 34% are delaying consideration of new initiatives or multiyear obligations
• 58% report reductions in overall administrative expenses

To read the entire survey results, click here.

The Economic Crisis: Challenge or Opportunity?

The last three months have brought about unprecedented market changes that have had dramatic impact on nonprofits of all kinds. As financial resources shrink and the need for social services swell, urgent consideration must be given to addressing the myriad new challenges that are threatening the very existence of our nation's health and human service organizations.

In our work with organizations around the country, MissionWise has seen many nonprofits respond swiftly and decisively to the challenges of our economic crisis, including (1) reducing program expenses, overhead, and staff; (2) merging with other nonprofits; (3) using their reserve funds; and (4) in some cases, closing their doors. In addition, a number of organizations have addressed the crisis programmatically, by (1) narrowing their focus or changing their eligibility standards in order to limit the demand for their services; (2) using this time as an opportunity to refocus their program work; (3) looking for social enterprise opportunities and /or new methods of earned income activity; (4) finding ways to collaborate with organizations in various fields and sectors; and (5) redefining the tangible results their clients get from using their products, programs, or services.

In most of the cases above, challenges were viewed as opportunities, with bold, creative, entrepreneurial thinking applied to addressing the impact of the economic crisis.

While there are no right or wrong answers for nonprofits who are navigating through these extremely challenging times, it is clear that survival will entail an ability to move beyond a "business as usual" approach.

How has your organization turned challenge into opportunity?