Are Non-profits okay? Navigating the Nonprofit Landscape in a Changing World

As some of you may know, I reside in Seattle, WA. And work in Portland, OR. Therefore, I have about three hours to think. Sometimes, my most creative solutions come from a long drive.? I will even transcribe myself talking out loud; there's something therapeutic about talking through my thoughts. Today, I reflect on the nonprofit sector and its current challenges. I want to share my observations and concerns about the state of nonprofits, mainly from my perspective in the Pacific Northwest.?

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Since COVID ?

Suppose we aren't sick of talking about it. And since the post-COVID changes and George Floyd, we've seen a significant shift in funding dynamics. Initially, there was a surge of financial support for racial justice initiatives. While the pandemic took center stage, much of that funding pivoted to address COVID-19 emergencies. As the pandemic becomes more manageable, nonprofits are struggling to secure funds for their basic programming, not just emergency responses. And, of course, it is an election year. Go figure.?

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Now that emergency money is gone, it raises a critical question: Where is all the money going? Foundations are becoming increasingly selective about their funding priorities. Some are open to general operations, while others are particular. This selectivity, combined with changes in the financial landscape over the past five years, makes it challenging for grassroots organizations to access necessary funds and continue to provide excellent programming. ?

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Grassroots nonprofits are essential to the health of communities, and I fear we are not doing enough to help them through this challenging and awkward time. We know the struggles of nonprofits, but it seems that since COVID, those issues have amplified. According to the National Council of Nonprofits in Washington and Oregon, the end of pandemic relief programs has further strained nonprofits, as they now face increased demand without the emergency support that had previously helped them stay afloat. This situation has led to continued closures, with smaller and less financially stable organizations being particularly vulnerable.?

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Leadership in Nonprofits: Where Are We Falling Short??

One pressing issue facing nonprofits today is the lack of comprehensive leadership education. It's not just the executive directors or organizational heads who need these skills—board members also need foresight and strategic decision-making capabilities to navigate these turbulent times. Many nonprofits were caught off guard by the current financial climate, and the question now is whether their leadership can guide them through this downturn.?

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Many nonprofits have board members who volunteer their time and passion, which is greatly appreciated. However, most boards likely lack members who understand how to run a business or how to fundraise effectively—two crucial elements for keeping an organization's doors open.?

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While it's unrealistic to expect everyone to be an expert, we must invest in training our board members with the skills required to lead an organization successfully. Investing in board development and institutional knowledge is essential. Organizations should provide ongoing education, mentorship opportunities, and resources to ensure that our leaders are well-equipped to steer their organizations through challenges and opportunities.?

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By developing strong leadership at all levels, nonprofits can become more resilient and better prepared to fulfill their missions, even in uncertain times. It's time to prioritize leadership training and make it a cornerstone of nonprofit strategy—a small plug. I am offering a virtual workshop and network for nonprofit board members.??

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What NOW??

The focus will inevitably shift to political campaigns as we approach an election year. But what happens to the nonprofits serving our communities during this time? While the government debates resource allocation, the organizations doing the critical on-the-groundwork are struggling to survive.?

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I'm reaching out to find individuals interested in discussing these challenges and exploring legislative solutions or even support around what to do next.?Ultimately, what does sustainability look like for nonprofits and small businesses post-crisis? How do we ensure these vital organizations continue to thrive and support our communities? There's much to discuss, whether it's the intricacies of different 501 designations or the strategies nonprofits use to sustain themselves amidst donor fatigue and grant competition.?

Let's connect and find solutions together.?