Your non-profit is facing decreased funding sources. How will you navigate the financial challenges ahead?

Stick to what you need. Emphasis on 'need'. If you're trying to economize with funding, things like minimizing volunteers to reduce logistic burdens or minimizing branding will help This can help cut costs from unnecessary things.

To navigate decreased funding sources, I would diversify income streams by exploring new grant opportunities, cultivating partnerships with corporate sponsors, and launching targeted fundraising campaigns. Additionally, focusing on cost-effective operations and demonstrating the impact of our work through transparent reporting will help maintain donor confidence and attract new supporters.

The tool to understand the challenge. A strong budget planning document with the flexibility to respond to a changing environment key metrics and an understanding of what can not be cut and what truely allows the organzation to move forward. The budget needs to be the fiscal tool to explain the potential shortfalls and project what if/then scenarios can be explored.

Decreased funding could mean that your sponsors have pivoted and no longer believe in what you are offering. Check to see that they still believe in your cause and values. Check to see that your services align with the topical issues in your location/region. Re-emphasize how your offerings are helping to make the world a better place. Engage in social proof. If all fails, then rebrand. People have an emotional attachment to brands.

Diversify funding sources. Increase fund raising efforts such as individual donations, hosting fundraising events, explore grant options. Engage with community organizations such as local churches. Make budget cuts where it is feasible without compromised service.

Research and apply for grants that align with your mission, ensuring applications clearly demonstrate your impact. Encourage donors to sign up for recurring contributions to provide a steady, predictable income stream. By securing grants and increasing recurring donations, you can enhance your financial stability and resilience.

You and your organization likely have marketable experiences, viewpoints, and talents that you can monetize! Find the people that need to hear about your service delivery method and why it's the best-- now you're a consultant.

At an organization I worked at nearly 85% of revenues came from foundations - within 3 years and an emphasis on individual fundraising we had diversifed to a 50/50 revenue stream that grew do the changing marketplace of funding sources and the hard work of the development team - the overall organization eventually grew by another 300% as we found more and more effective fundraising.

Look at re-tooling the Board. One of their primary functions is to bring diverse support to the mission. Engage members individually, ensure their continued commitment, ask for advice on diversifying supporters and ask them to make a stronger commitment by activating more of their network. If weak, replace.

Individual donors are your greatest prospects to financial stability. Speak with your angels. Be prepared to provide data and examples and to why you are struggling and what your plan is to rebound. Be completely transparent and don't forget to include board members in the planning and meetings.

Despite many organizations finding the strategic planning process a dud, this process can be completely invigorating as you pull the organization away from putting out the fires in front of them and take the time to answer What do we want to do next? What resources would that require? Given the needs can we raise the funds? The process can lead to recognition of new opportunites and the realization of shifts to the mission that will need to take place either because of the new environment or revenue streams. A strong strat plan allows senior management and the board to monitor long term goals and use metrics to measure sucess.

In a presentation I was involved with lately we discussed why non-profits don't merge. 1) NFPs only merge when one leader is leaving and the the merger partner can take over management 2) NFPs only merge to avoid fiscal collapse 3) Boards are a stumbling block to mergers Increasingly the fiscal managers of NFPs are crying out for the cost savings of service bureau thinking - Payroll, Development, Bookkeeping, Event Planning, and basically any service that can be fractionally allocated.

When facing budget cuts, keep long-term mission impact front and center. Nonprofits that do this will emerge from hard economic times stronger while those that don't could close their doors forever. Across the board cuts, for example, will unnecessarily weaken your nonprofit in key areas. Instead, look at how much each major activity contributes to the mission and how much money it makes or loses. Then strategically design your budget cuts with positive mission impact and positive budget impact top of mind. Similarly, continue making strategic technology investments. A $10,000 investment in equipment or software could end up making up for the productivity or impact loss of laying off a $50k/year staff position.

Take time to assess the culture of fundraising at your organization. Does everyone, from board members, staff to volunteers have a role in fundraising? Not everyone needs to make an ask, but all should understand clearly how their role contributes to an organization’s fundraising success.

As trite as it may sound - often an organization does not have a mission statement and value statement that the board can articulate - no mission driven entity is going to be successful without the foundation of agreeing what the mission is.