Cutting Back and Bailing Out

Nonprofit organizations are cutting back and bailing out. It is happening all over the country. The economy is hitting harshly at nonprofit institutions and organizations throughout the country. Colleges have drawn the line, let staff go, required staff to take time off without pay, held the line on salary increases, and stopped projects in their tracks. Other nonprofits have drawn the line to keep creditors off their backs; they are filing for bankruptcy. Small endowments leave trustees with not many options. What should they do? Write us at aclickstein@strategicwise,com, We will publish your response. All responses are the property of Strategicwise Coaching.

Foundation Giving and the Recession

The recession has touched the endowments of every foundation in the United States. Some have either been ruined or seriously damaged by investing with Bernard Madorf; others have been hurt by the significant drop in the market. I doubt that any foundation is exempt. So what does that mean for the nonprofit that was planning to seek financial support before the economic debacle? In many cases, foundations will reduce the amount of money they give out, but some, like the Eos Foundation, will give more. These foundations are taking an approach called 'counter-cyclical donating'. They will donate more in difficult times and less in good times. The logic is to provide help when it is needed most. The only way to find out if a foundation is doing 'counter-cyclical funding' is to make contact with them. Keep in mind that if you, representing your organization, are afraid of being rejected, you have a major problem to confront, and I would be glad to help you overcome it. Research foundations that might be interested in the work of your organization. You can do this on-line or by visiting your local foundation library. Call the foundation, ask to speak with a program officer, briefly tell them about your organization and the programs for which you seek funding. Get the individual's email address and send a link to your organization's website. Ask about how the foundation is responding to the recession. Even if the foundation has reduced its donations, don't let the reduction in available funds discourage you from applying. In fact, you should never allow rejection letters to discourage and sway you from applying again the following year.

Stimulus Money For Arts and Culture

The nonprofit sector represents 14% of the United States economy, and a significant portion of the revenue generated in the nonprofit sector comes from the arts and cultural sector. The final version of the stimulus bill struggled to get $50,000,000 for the National Endowment for the Arts. It passed but it leaves out zoos and aquariums. The funds will be divided up with 40% going to state and regional arts organizations. The remaining 60% will be set aside for individual arts projects competing for Endowment grants. Individual arts and cultural organizations should check with their state arts and cultural organization to see how they might benefit from this portion of the stimulus plan.