Thriving in a New Reality

Not surprisingly, 2008 and 2009 saw the largest drops in giving in more than 40 years. And most government agencies continue to tighten their belts, so many nonprofits traditionally bolstered by government funding face 
additional challenges.

But there are positive signs. According to the Giving USA Foundation™ and its research partner, the Center on Philanthropy at Indiana University, total charitable contributions from American individuals, corporations and foundations grew 3.8 percent between 2009 and 2010, from $280.30 billion to an estimated $290.89 billion.

Despite these tough economic times, Americans still support organizations and causes that matter to them. Nonprofits that remain focused while adeptly fine-tuning strategy can emerge stronger and more effective. Now is the time to strategically plan for the future, firm up board support, refine communications and evaluate current philanthropic models.

Last summer, we at Lighthouse Counsel informally surveyed leaders from across the nation, asking their advice for what nonprofits might do during this challenging time. Based on their insight and our own experience, here are five steps to help nonprofits stay on course:

1. Attract the best team. Your organizations — and those you serve — deserve the best. Since the quality of your staff and board determines your success, recruit and hire the right people, setting your sights on a first-rate team.

From social-service organizations to major universities, the nonprofit sector has a track record for recruiting excellent leaders who thrive when surrounded by committed people with a compassionate, compelling mission. Sometimes it takes time to put a team together. I recall keeping a position open for more than a year, waiting for the right person to hire. Despite the extra workload, it ended up being a great decision; she was a star and worth the wait.

2. Create an engaging plan. One survey respondent put it best: "Don't be afraid to dream big! Be brave in what you attempt while also being pragmatic, realistic, appropriately cautious and generally sensible."