Unfortunately, the downturn in the economy has effected many not-for-profit organizations that provide invaluable services to numerous communities and individuals. For some of these organizations, management has thrown its hands in the air, determined that they just cannot provide these services anymore, and closed their doors.
A recent survey of about 100 not-for-profit organizations indicated that about 90% of those organizations have been directly affected by the downturn in the economy, some even severely. Another survey indicated that, of approximately 1,000 not-for-profit organizations, only 16% expect to cover operating costs in 2009 and 2010.
Public funding is down, endowments are down and earned income is likely down. There are a few steps that organizations can take to try and stop the bleeding, or at least slow it down:
- Take a closer look at how you are operating internally and how you are administering your programs. Do the programs align with your mission? Can you change the way you administer programs, achieving the same results but in a less costly manner?
- Make your mission known. Let others know how important your services are, and how you are providing benefit to the community and individuals. Be vocal.
- Take advantage of the situation to eliminate inefficient programs and expenses.
- Work with existing funders to try and overcome the roadblocks.
- Take the time to analyze the situation, and develop a realistic plan to deal with the situation at hand.
We have seen first-hand how the downturn in the economy has effected not-for-profit organizations. These are just a few steps you can implement to help your organization survive, and continue to provide the invaluable services that it does.
For more information on the issues facing the not-for-profit industry, contact Skoda Minotti at 440-449-6800 or visit us online.
Topics covered: Cleveland Accounting Services, Akron Accounting Services, nonprofit organizations