Trying or dying times? What to do when Philanthropy’s exploration means nonprofit expiration
Nonprofits in my community are refreshing emails and grant portals while watching the clock tick towards their expiration date. They’re not just worried, they’re actively and actually dying. And it’s especially trying to hear that the funders who have the resources to halt the nonprofit death march are “exploring” their options to come up with the “best” path forward. Nonprofits don’t have the privilege of exploration and I argue, neither do the funders that support them.
Funder Exploration & Nonprofit Expiration
Nonprofits are well versed in translating their work into the “impact” valued by funders. But it begs the question. What are funders waiting for? Because the “impact” they’ve funneled billions of dollars into realizing is getting erased. Soon funders be in the same shoes as nonprofits — at square one.
Since January 20th, I’ve partnered with local nonprofits to try and make sense of this chaotic funding landscape. It’s scary, disheartening, tragic, and more. And it has nonprofits everywhere scenario planning for their potential closure. As a former funder, I keep looking for the “emergency response”, “bridge”, or “capacity-building” grants that could signal that funders understand and are actively working to protect and support their nonprofit partners. But months later, we’re still watching and waiting.
What does Sustainability Mean in a Time of Survival?
Long-term sustainability is a cornerstone of my consulting approach. My recent experience supporting nonprofits through federal funding freezes, donor dips, DEI re-messaging, partnership losses, closures, and more has shaken me to my core. Together, my nonprofit clients and I have come to the realization that long-term sustainability in the nonprofit sector no longer exists. At this point, w'e’re fighting simultaneous battles on two fronts: (1) one to survive oncoming days or weeks and (2) the very right to serve our communities. And in this moment, nonprofits are fighting for their survival alone.
Nonprofits are stuck at the bottom of Maslow’s Hierarchy of Needs, as they figure out how they can feed, shelter, and clothe themselves. They don’t have the privilege or the space to explore the loftier sides of the triangle like their philanthropic partners. For nonprofits, long-term sustainability doesn’t exist right now and it’s time for funders to realize the same. Then descend to scrap in the mud with us.
What Can Nonprofits Do?
Nonprofits have limited scope and ability to influence the philanthropic landscape. Every listening and sharing circle I’ve attended to date has been ultimately for the funder’s benefit. I have yet to see action taken to address the dying wishes nonprofits express in these spaces. It’s hard not to be bitter that funder partners have the privilege of listening and learning before acting. Because my clients are acting. And they don’t have the time to craft the best, most effective strategy. They’ll be gone by then.
So what can nonprofits do to close potentially catastrophic funding gaps. Here are a few steps I’ve taken with my nonprofit partners. This is a general list and I recommend that nonprofit leaders take a moment and decide which options resonate best with your organization, values, and mission.
Take time to scenario plan — financial forecasting is more important today than ever. It may seem like you don’t have time to waste, but knowing how long your organization has left to live is imperative to giving your leaders, community, staff, partners, donors, and funders time to make arrangements. Additionally, it can give you a runway to begin selling assets, trimming down expenses, and more to lengthen your organization’s lifespan. We don’t know what’s going to happen next month or next year. So just plan on surviving as long as you can and we’ll cross the next bridge together later.
Re-Brand – This is a values decision that your leaders, staff, and community need to consider in relation to your work, mission, and context. I tell my clients that DEI is a fundamental part of their work and that using different terms won’t change that. It’s not hiding, it’s surviving. But, before I dive in, I want to explicitly say that these are not worthy substitutes. And I am resisting, fighting, and grieving with you. So if you’re exploring ways to re-brand your DEI programs. Here are a few examples from funders and nonprofits across the country.
Double down — Specify what DEI means to you. For example, “Diversity, equity, and inclusion is a critical part of our mission and vision. It’s not going anywhere. But we’d like to take a minute to express why. DEI means to us that we value, respect, welcome, and embrace people of all backgrounds, abilities, and walks of life. We don’t care where you came from or where you’re going. If you need us, we’re here for you.”
Be Vague — If you’re worried about potential legal or financial repercussions, then use their weapons against them by thinking like a lawyer. Be vague. For example, “We work for the common good of all human kind.” This allows you to keep your understanding that DEI is a critical part of your definition of the common good. But if you’re unable to weather the political maelstrom, as many small nonprofits are, be vague and move on. Your work is important so continue moving the needle towards your mission and vision.
Turn to the Thesaurus — The terms “diversity, equity, and inclusion” are a symptom of a postmodern politicization that unjustly twisted them from their original meaning and intent. So pull out a thesaurus and rebrand them with less politicized words like belonging, engagement, transformation, mutual, acceptance, welcome, fair, connection, cultivation, respect, value, or even a meaningful metaphor. Because a rose by any other name is still a rose.
Band Together: It’s time to explore how nonprofits and communities can band together to survive. Consider tapping another organization to innovate, share, or support each other through an informal or formal partnership. It’s true that we’re always stronger together.
I try to remember that not everyone has the same mobility, ability, or support as others before considering them unkindly. And I know I’m not alone in this thinking. Don’t be afraid to ask questions, reflect, and make hard choices to survive. Because for many nonprofits, that’s all we’re working towards this year.
Survival is Enough
Bridging the holes left by decreased individual giving, vanished federal funding, and ultra competitive private funding feels uncertain at best and impossible at worst. I tell my clients that your survival is enough and the path to get there doesn’t have to be perfect, just effective. Because what does perfection even look like in a time of survival?
Warmly,
Dani
