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November 17, 2009
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NON-PROFIT EMERGENCY
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| Yesterday, we checked out Nonprofit 911, an all-star meeting of local leaders on the economy's effect on non-profits. The event was organized by Eight Neighbors, a year-old coalition of eight regional organizations invested in the non-profit sector. It was also our first journey to the True Reformer Building on U Street. (Instead of metal detectors, they check for morals.) |
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No need to stock up on all those cans of green beans. Despite all the fear and panic, we're not going to have another Great Depression, says Alice Rivlin, The Brookings Institution's director of Greater Washington research. She says total spending will grow at a moderate pace, but so will jobless rates. She predicts unemployment will peak at 10% or 11% late next summer and then decline slowly over the next few years. While Washington as a whole has not been hit as hard as the country, Alice says historic divides between rich and poor have been exacerbated: “If you go to Ward 8, it is the Great Depression."
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The mood of individual donors is cautious, says Terri Freeman, president of The Community Foundation for the National Capital Region. The foundation, the largest non-profit funder in the region, awarded $88 million this fiscal year as compared to $91 in '08. Assets fell $71 million to $312 million. In response to a sharp increase in requests from safety-net providers, the foundation launched the "Neighbors in Need Fund" a year ago. Gifts to safety-net non-profits are already up 15%. Terri says now is the time to nurture existing donor relationships, not start new ones.
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Non-profits need to sharpen their elbows, says Greater Washington Board of Trade prez Jim Dinegar. "You have to carve out your own niche to get your message through," he says, because not every organization will survive. Jim's advice: Communicate with donors when there's something to say, stay true to your mission, and keep up recognition efforts like putting donors' photos in your newsletter. Be careful not to over-ask from people who've been good to you. Ask twice—now and when they have a new budget.
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The federal gov't can spend all it wants, but local and state gov'ts will be cutting millions to balance their budgets, says Metropolitan Washington Council of Governments executive director Dave Robertson. To have a shot at the smaller pot of gov't dollars, Dave says non-profits need to be able to say exactly who they’re serving and from what regions. Organizations also need to make sure they are getting face time with public officials, and not just at budget time. Don't assume your representatives read your e-newsletter. Build a community coalition of 20 to 50 people who can give public officials a human face for your cause.
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We hope you're not sick of all the stats yet, because these are big ones: Nearly a third of local non-profits have suspended or closed down programs and/or cut staff, a Center for Nonprofit Advancement survey this summer showed. More than half have three months or less of operating reserves. Fundraiser attendance and corporate sponsorships are also down. The Center's president Glen O'Gilvie says he's found that non-profits with "internal bleeding" are suffering primarily from refusal to make necessary budget cuts and collaboration problems among board members.
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| UPCOMING EVENTS |
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November 17 - NCMA Tysons – Monthly Dinner Meeting - Topic: Role of the GAO in Oversight of Government Procurement - Carolyn R. Kirby. 5:30-8:30pm - Maggiano's in Tysons Galleria.
November 18 - Bisnow Breakfast & Schmooze - "Where do Women Stand?" - SOLD OUT
November 19 - AGC of DC - Economic Update with Ken Simonson and FMI Consultant Mark Bridgers - 8-10:30AM. Info
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This newsletter is a journalistic news source which accepts no payment for featured interviews. It is supported by conventional advertisers clearly identified in the right hand column. You have been selected to receive it either through prior contact or professional association. If you have received it in error, please accept our apologies and unsubscribe at bottom of the newsletter. © 2009, Bisnow on Business, Inc., 1323 Connecticut Avenue, NW, Washington, DC 20036. All rights reserved.
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