The Proper Application of Hope in the Midst of a Crisis

• May 1, 2020
• Curtis Klotz

In my first conversations with nonprofit leaders as the financial effects of stay-at-home orders were becoming apparent, I found myself cautioning them to scrub the hope out of their financial forecasts. It was a difficult message to deliver, but I meant it as a counter to letting aspirations cloud our assessment of current fiscal realities. That is not to say that I think hope is without purpose. I was simply suggesting that the proper application of hope is to inspire creative problem solving and inventive strategy. We must take care not to let it interfere with clearly seeing the facts surrounding our current situation.

With a firm grasp of your circumstances, you can properly direct your hope, enthusiasm, and aspirations toward designing and building the future you want for your nonprofit by:  

• Planning innovative, relevant programs and services adapted to new social realities;
• Refreshing your governance model to support deep investment in your organization’s core;
• Developing creative long-term financial strategies built on current truths;
• Investing in technology solutions that work equally well virtually or in traditional office settings;
• Embracing holistic personnel practices to support and knit together your dedicated staff; and
• Honing responsive fundraising approaches that can connect with your donors across a crisis.

Phased reopening does not mean business as usual

States across the country are cautiously moving toward phased reopening as the COVID-19 crisis unfolds and sweeping public health measures are having a positive effect. How, in the midst of extreme uncertainty surrounding your people, programs, and finances, do you lead your nonprofit to a hopeful next phase out of such a troubling now? You will need to reconsider every aspect of your organization’s program, governance, finances, infrastructure, personnel practices, and fundraising activities to succeed. Every assumption you had about how your nonprofit did business prior to the downturn is open to question, and every question you ask could lead to innovation you did not anticipate.

Scanning your organization for unplanned innovation

Nonprofits are complex. The depth of the disruption we are currently experiencing has undoubtedly touched nearly every aspect of your organization. While you may wish to restore some portions of your organization to their former state, other elements may have transformed in unexpected ways you would choose to retain. As you scan across the many facets of your organization, what has changed and what has remained intact? What innovations born out of the crisis are worth capturing? Has the current situation given you permission to rethink how you approach certain activities going forward?

Assess the impact and opportunities created by the COVID crisis

A quick review of the changes your nonprofit has made in any of these categories may reveal adaptations that you assumed would be temporary, but are proving so effective that you would like to keep them in place permanently. In other categories where you still rely on long-established ways of doing things, you may have discovered their limitations under the pressure of a pandemic. To help you assess the impacts and opportunities, here are some questions to spur your thinking.

Assessing program delivery

Shelter-in-place and stay-at-home orders abruptly suspended many nonprofit services and programs. Forced to change how they accomplish their mission, some organizations have discovered new ways to deliver their programs.

• Would it be more cost effective to provide any of your traditional services or programs entirely virtually or through a hybrid of virtual and in-person activities?
• Which of your programs are proving themselves the most relevant during the current crisis? What does this tell you about the mission effectiveness of your other programs?
• Has the current crisis pushed you to form new alliances with other organizations providing similar services? Are their opportunities to formalize new cooperative arrangements going forward?

Assessing governance

Along with all other gatherings, your board meetings likely have moved to a virtual environment. Beyond that obvious change, you can use the current departure from business as usual to reexamine other board practices and priorities. For many nonprofit boards, this crisis is a chance to evaluate how effective their leadership has been and continues to be.

• Were the governance structures of your organization prepared to respond appropriately as the fallout from COVID-19 began to intensify?
• What has your board learned about the adequacy of its budget priorities where it concerns crucial core infrastructure and sufficient reserves?
• Besides virtual meeting platforms, what other communication tools has your board used to stay connected with your organizational leadership and staff?

Assessing finance

In the initial response to program shutdowns and financial upheaval, I pointed you to cash flow management and forecasting as the place to start. Along with ongoing financial modeling, your organization will also need to face foundational questions about your business model and the financial systems you have developed to support it.

• Is your accounting system up to the task of supporting a remote workplace environment? Were your finance staff able to access software and process transactions in a timely and efficient manner while away from the office?
• If your nonprofit faced the need to make cuts in personnel expenses, did you consider creative strategies to keep your staff whole?
• Do you share financial leadership effectively across your whole organization, enabling you to gather ideas and strategies that emerge from the actual experience of your talented staff in all departments?

Assessing facilities and infrastructure

Choosing what type of facility or office space nonprofits need has always been complex. Whether to buy or lease a building, whether to co-locate with other nonprofits, or how many private offices versus co-working spaces to offer are all difficult decisions in the best of times.

• Is the current disruption to your use of space temporary? Are you simply passing time waiting to return to your empty offices and buildings?
• How will prioritizing the health of your staff affect your approach to reopening your office or facility?
• If your organization occupies a large facility that includes a gym or large-capacity conference room, have you considered renting out those spaces? Not for their traditional purposes, but for smaller groups who now need over-sized spaces to provide adequate physical distancing.

Assessing human resource practices

The Families First Coronavirus Relief Act brought attention to the need for leave policies that support workers faced with balancing health, safety, and retaining their employment in the midst of a pandemic. Stay-at-home orders forced many of us to adopt entirely new work habits as we went virtual. Many nonprofits have reduced compensation or furloughed staff in response to severe financial conditions. In this environment, having a talented human resources team is more important than ever.

• How do you integrate what you have learned about virtual workplaces with developing a coherent organizational culture?
• What does workplace safety look like in the age of COVID-19? What changes will you make to cleaning and sanitation procedures? Will you require regular health screenings for employees?
• How will your recruiting, hiring, and onboarding practices change as you try to attract and keep the most talented staff?

Assessing fundraising approaches

For many nonprofits, earned revenue dropped off quickly as they suspended programs and events and staff began to work remotely. Contributed revenue sources may not have disappeared as quickly, but the uncertainty about donor intentions and capacity in the crisis caused nonprofits to question how stable these sources were, too.  Government stimulus measures and increased philanthropic activity have not proven to be enough for some nonprofits.

• How durable are your various revenue streams during this stall in economic activity? Are there ways you can strengthen your overall revenue model?
• If your organization relied on revenue from in-person events, performances, services, or programs, have you considered moving these activities to a virtual platform while developing a mechanism for collecting income from users, clients, and audience members?
• What new ways have you found to engage your loyal donor base during the crisis? What successes in your past fundraising activities can be adapted to current circumstances?

Seeing opportunity in the midst of crisis

Solving for a new COVID reality will require nonprofits to take a whole organization approach to leadership and strategy. No matter your title or your role, your insights, perspective, and hard work have been key to choosing where and how you landed your organization during the initial free fall of the pandemic. Now is the time to use your hope as motivation, turn your attention towards the future, and creatively chart a path to a purposeful post-COVID existence. Make sure to capture and put to good use as many unexpected innovations as you can along the way.

For more resources and information to help you respond to the COVID-19 crisis, please visit our COVID-19 Response page.

Tags: COVID-19 response, nonprofit finance, nonprofit leadership, nonprofit strategy, COVID-19 financial management and disaster relief, COVID-19 inspirational and leadership tips, COVID-19 workforce and human resource guidance, Nonprofit Financial Leadership, Nonprofit general, Nonprofit Response to COVID-19, Strategic decision making | Comments Off on The Proper Application of Hope in the Midst of a Crisis