Following up on my last article, the second critical issue I would like to discuss is taking a realistic look at your future as a separate organization. What are your plans if you see a possible closure in your future? We must consider that a possibility if you find yourself on the edge of that precipice.
You have reduced staffing and programs to the bone, and still only have one-to-two months of operating cash on hand. What if your valiant fundraising efforts fail and you cannot see continuing? Have you and your nonprofit board leadership explored possible mergers with other nonprofits that have similar missions and constituencies? If not, perhaps these sobering numbers from a recent Chronicle of Philanthropy survey will motivate you to consider seriously that option.
- 13% of nonprofits have suspended all or most of their operations,
- 17% have eliminated or reduced positions.
- 9% anticipate losing 50% to 79% of their revenue
- 3% said 80 to 99% of their revenue is threatened.
- 8% said all their revenue is threatened.
Compounding their problems are limited emergency cash reserves.
- 18% could last for one-to-two months
- 37% could sustain for three-to-five months before needing to make drastic cost cuts.
- 7% could last for nine to 11 months.
- 18% could last a year or longer.
Into which of these categories does your nonprofit fall? If you believe your existence is threatened, you need to find a similar organization and explore a partnership. Remember, your mission is more important than the organization. The people you serve are more important than the organization. It is incumbent upon you and your leadership to consider every way to continue providing your services to your clients.
Mirenda & Associates can assist you in evaluating your current situation and work with you to find a win/win solution. Call now for a 30-minute free consultation to begin that process.