So, What Happens Now?

Many of my nonprofit clients are having minor to major meltdowns since the election. Everyone is asking the same question; where do nonprofits go from here?  Will foundations stop giving out grants because their dividend and interest income is  too low?  Will individual donors quit supporting their favorite cause? Will corporations adjust or eliminate their philanthropic goals?  Will the Feds have more or less money available for grants? Will all Federal money only be given out in block grants? What causes will the government support? Will all the grant money go overseas now? Will states take away sales or other tax exemptions for nonprofits? These are only a few of the questions NPO boards are asking.

I would say we have to wait and see. There is no doubt that this administration is going to try to maximize its cash inflows from the people and companies it defines as “wealthy”. This president is consistent in his message. He truly believes that an economically classless society is the best thing for America and that the government should be the source of, or at least in control of, economic activity. The country re-elected him, so it is logical to assume that he now feels that he has “more freedom” to advance that ideology. Whether you agree or disagree with his vision for America, he will push it as far as he possibly can. If that strategy results in only a minor correction in the economy and doesn’t produce the dire results predicted, it will produce one set of realities, and if the opposite effect occurs, perhaps there will be a course correction at some point in the future. Unfortunately, none of us can accurately predict the future.

The one thing I can say with certainty is it is time to be sure your nonprofit is operating efficiently, and that you need to have a definitive organizational and fundraising plan. You may need to adjust your strategic plan, or develop one if you have been “flying by the seat of your pants”.

Analysis of your costs and effectiveness is the key to survival now. If your nonprofit is spread out over many areas, trying to be all things to all people, it is time to focus on those programs that have a positive return on investment. Let go of those programs that you’ve never quite been able to fund completely. At this point, you still have control over that aspect of your organization. If you wait until the money dries up (if it does), the decisions will be made for you. For those of you in the social impact arena, it might be time to look at some of the crowd-funding options. For those of you that have felt that advertising or marketing was somehow crass or unnecessary, you need to get on the public radar in your field of interest.

You may not be able to control the economic realities facing the country, but you can control your specific organizational plan. If you need help, drop us a line at granthelp@ida.net.