Managing Nonprofits in a Tough Economy

FOR IMMEDIATE RELEASE
(Free-Press-Release.com) March 30, 2009 -- Despite the tough economic times, many nonprofit organizations are taking steps to shore up their bottom line without sacrificing their missions. According to the current issue of “Leadership Matters,” which reports on a recent Bridgespan Group survey of nonprofit leaders, organizations are being forced to make hard choices about where to focus their resources for the next 12 to 18 months.

Published by the Bridgespan Group’s Bridgestar initiative, which is dedicated to attracting, connecting, and supporting leadership for the nonprofit sector, the lead article, “Managing in a Tough Economy: How Nonprofit Leaders and Their Organizations Are Facing the Uncertainty,” reveals that most of the COOs and CFOs interviewed as part of the Bridgespan Group survey described layoffs as a last resort.

In many cases, tough times increase demand for services, and layoffs would prevent nonprofits from serving their constituents. Instead, COOs and CFOs told Bridgespan that they are instituting one or more of the following cost-cutting methods:
• Redeploy staff and volunteers.
• Renegotiate contracts with vendors.
• Reduce staff pay or benefits.
• Consolidate operations.
• Increase communications and transparency.
• Cultivate volunteers to take on tasks formerly done by staff.
• Tap the expertise of board members.

“These have rapidly become some of the most challenging times most of us have ever seen. Even for nonprofit leaders who are accustomed to making much of little, the repercussions of the current downturn are difficult to fathom and challenging to address,” said David Simms, partner and head of Bridgestar. “Whether running a nonprofit, making a nonprofit hire, or looking for a nonprofit position, it is important to use every available resource during these difficult times. Interestingly, one senior nonprofit executive told us, ‘Sometimes crisis forces us to take action that we should have taken a long time ago, and the organization emerges healthier and more sustainable as a result.’”

About Bridgestar
Bridgestar (www.bridgestar.org), an initiative of the Bridgespan Group, provides a free nonprofit management job board, content, and tools designed to help organizations build strong leadership teams and individuals pursue career paths as nonprofit leaders. Bridgestar’s goal is to attract, connect, and support senior talent, leading to greater organizational effectiveness and social impact.

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