February 24, 2014
As the U.S. continues to move out of the recession, fundraising is picking up. Surviving without disappearing state and federal funds now seems as if it may be possible. The Daily Times recently highlighted a story about a Virginia nonprofit that was able to beat the odds and remain open, even as the recession nearly wiped it out before 2012.
The Eastern Shore Coalition Against Domestic Violence found out in the summer of 2012 that a $20,000 state grant that had received since 1996 would no longer be available. The grant made up a significant portion of the organization's budget and there was fear that the group would have to close its doors.
However, following a new, strategic approach to fundraising, the organization was able to raise $90,000, paid off its mortgages and is now on firm financial footing. Nonprofits across the country experienced both a decrease in funding from private donors and federal and state grants. This has changed the way that nonprofits must build their budgets and collect revenue, and it will likely continue even as the recession improves.
New models of operation are here to stay
It's hard to predict how much governmental funding will return to a nonprofit or when it will disappear again. The recession forced nonprofits to not only operate with a smaller budget, but many found themselves with an increased demand as well. While signs that fundraising is improving is good news for budgets, meeting demand must be handled carefully.
Many workers at organizations that were on the verge of closing gave nearly all they had to keep the doors open. Kristin Davis, vice president of communications and marketing for the Delaware Alliance for Nonprofit Advancement, told The Daily Times that employees who made it through the turbulent years that began in 2008 are feeling exhausted. While doing more with less will be key moving forward, organizations must ensure that their employees do not burn out.
It would be wise to ensure that as new funds begin rolling in, some are used to improve the administrative and staffing side of the organization. Organizations should meet with their employees and determine how their jobs differ from before the recession. Perhaps they took on significant responsibilities in order tighten the budget, but now feel overwhelmed. As nonprofits pull out of the storm, it's time to reassess how they will operate moving forward.
Content presented by First Nonprofit Companies, the leading provider of state unemployment insurance solutions for 501(c)(3) nonprofit employers.
NYCON members who use First Nonprofit’s programs enjoy enduring savings and improved efficiency. Our association knows that success, because from the beginning, we achieved the same great benefits. Great savings, seamless technology, and responsive service. NYCON highly recommends First Nonprofit’s remarkable unemployment solutions.
It has been our sincere pleasure to maintain a strong, vibrant business partnership with First Nonprofit. We greatly admire their strong industry knowledge, technical expertise, constant professionalism, knowledgeable and dedicated staff. They are always extremely responsive, personable and provide us with the necessary guidance and recommendations on a numerous variety of employment scenarios. We are impressed with the accuracy of their employment decisions, integrity of their employees and efficiency of their claim handling. We greatly respect and value the consistent, impressive cost savings from the utilization of their outstanding services.
Because INCS advocates for the operating conditions that allow charter public schools to provide high quality public education, partnering with First Nonprofit was an easy decision. First Nonprofit’s unemployment programs provide our member schools two operating elements crucial to their ability to provide high quality public education: savings and budget certainty. Capable, committed teachers are the key to student success. By participating in the unemployment insurance savings plan, charter public schools gain peace of mind and are able to invest more money in their teachers.
Throughout our membership in the Unemployment Savings Program, First Nonprofit understood our demands, community dynamics, and the importance of seamless services; that allowed us to serve our constituents better.