More bad news for the Nonprofit Sector

I read an insightful blog post last week by Laura Otten, the Executive Director of the La Salle Non Profit Center called “What’s a Nonprofit to do?” see it here at http://www.nonprofituniversityblog.org. 

The La Salle NonProfit Center surveyed nonprofits in the Philadelphia area about how they are coping with the recession. Most have already taken some steps to staunch the flow of money out of their organizations by layoffs or cutting non-essential programs/services. But it is expected to get worse, before it gets better. 

Bill Fontana, who runs the Pennsylvania Downtown Center (of which I am a professional member), notes in his quarterly newsletter (Centerpiece Nov/Dec 2009) that I got last week, that  at “ A meeting of statewide foundations earlier this year predicted that as many as 30% to 40% of nonprofits in Pennsylvania may fail before the funding crisis.” Yikes! 

I have worried about historic house museums, and their fundamental survival for about three years now, and wrote a book about it (New Solutions for House Museums: Ensuring the Long Term Preservation of America’s Historic Houses, AltaMira Press 2007). 

In the intervening time, I have seen few historic sites that are ready to discuss what might be viewed as unpleasant choices–closure, mergers, partnerships, co-stewardship arrangements, or sale to a private owner with easements (all detailed in my book with case studies of historic sites that have made successful transitions). 

Advisors, by that I mean consultants and nonprofit service providers, should be able to give sensible alternatives for the scores of nonprofits (house museums or others) that are now or will be, hanging on by their fingertips this year. 

But these organizations need help to have very difficult conversations with Board members before they are so financially strapped that their alternatives vanish in front of them. That probably means right now. 

I liken it to helping deal with the death of a friend, which for some volunteers and board members, it is.  Many are so emotionally invested in their organizations that any change may be viewed this way. Bad news about the financial prognosis of nonprofits might be easy to parse from financial statements. The harder conversation is dealing with the emotional reaction to change, especially when any change is viewed as a failure when the organization must go out of business. 

Giving people alternatives is critical. But giving them hope that the organization’s mission can survive, even in a new organization or place, is a far better result. 

Please share your thoughts about helping nonprofits deal with change.