The New Normal Funding Plan

For many in the nonprofit sector, COVID-19 feels like an existential threat they may never recover from. Regardless of mission, most nonprofits are grappling with funding challenges, short-term risk assessment, and long-term planning for an uncertain future. At Raise for Good, we’re seeing this daily and recently launched a specialty nonprofit Bootcamp to provide the strategy, stability, and planning needed to help answer tough questions, navigate this pandemic effectively, and come out stronger on the other side. 

Nonprofits need to think and act strategically to ensure that they remain sustainable through and beyond this crisis. Here are our top tips for creating a funding plan in this new normal. 

1. Think short-term AND long-term: Given the uncertainty and rapidly evolving situations, many organizations have had to shift their focus to short-term operational and funding needs. It is equally important, however, that organizations think through their long-term business model and funding needs to stabilize and emerge successfully through this crisis. A focus on both will ensure you build for the future and stay true to your mission.
2. Be prepared for multiple scenarios: Times are very uncertain and we lack clarity on how the situation will continue to evolve. Organizations need to do scenario planning based on different assumptions to see how their business will be impacted under various circumstances. Thinking through this now will allow organizations to be more agile in their reaction.
3. Donor engagement is KEY: A recent Fidelity Charitable study indicated that 80 percent of donors are concerned about their favored nonprofits’ ability to operate. Effective donor communications and relationship management is vital at this time. Communicate, communicate often, and communicate virtually in a personable way. Build transparent, personal, and honest relationships with your donors–seek their advice and support for the short and the long term. Make sure donors understand how important your work and need is, and how much you value their partnership.
4. Leadership matters: Effective and strategic decision-making by the board and leadership will be instrumental. Your employees, constituents, and supporters are counting on you to step up. Organizational sustainability may require the following:

• Renewed focus on donor relationships, including stewarding existing donors and cultivating new prospects.
• Rethinking business models and strategic priorities to maximize impact and limit earned income losses.
• Restructuring the organization to align with changing landscape and organizational needs.
• Revisiting partnerships and alliances to strengthen the organization and its mission.

We’re all navigating through this new normal together, and with the proper planning, leadership, and strategy, nonprofit organizations have the potential to not only survive but thrive.