Does COVID-19 mean extinction for many NGOs/Charities?

Without being alarmist but realist, I cannot help but share this insightful article from John MacIntosh of SeaChange Capital Partners, a nonprofit merchant bank in New York. His main points:

-         The truth is that our capitalist system will likely quickly rebuild the for-profit ecosystem after the Covid-19 crisis has passed.…

-         Unfortunately, nonprofits that fail cannot be so easily replaced or restarted…

-         Most NGOs are purpose-driven, small businesses "owned" by the public. Their survival is arguably even more important than that of similar for-profit businesses because they work with, and often employ, the most vulnerable people.

How to go about it? What do we development practitioners think about the following points that John has proposed?

1)      Nonprofit leaders and boards -- be tough-minded. We must go into cash-conservation mode allowing for survival and the continuation of the mission (which is a nonprofit's sole reason for being) is far better than hitting the wall and closing up altogether.

2)      NGOs be creative: actively exploring some strategies like 'collaborative rapid response funds'. These funds need to be able to make fast decisions and should offer loans, grants and guarantees.

3)      Rich people -- If not now, when? The rich can work from their second homes, can meet monthly expenses, and some—like distressed investors—may even profit from the carnage.

4)      Government – be a good partner: Government agencies should waive normal procurement procedures to get contracts registered and bills paid on an accelerated basis. They should ease performance-based payment requirements. Can this be done with our major donors?

Stay safe...