In tough times, strong leadership is essential for board and staff

Let's continue the conversation I started a few weeks ago about strategies nonprofit staff and volunteers can use to weather the economic storm. Unfortunately, the news isn't getting any better, as local unemployment has risen to more than 9 percent and our foreclosure rate continues to be the second highest in the nation.

But I won't focus on the gloomy economic picture, over which we have no control. Instead, this is about what nonprofits do have control over, which is how they choose to respond to the financial crisis. Here are some strategies to consider:

• Strong leadership is critical at the board and staff levels.

Now is not the time to overreact with decisions that could hurt your organization in the long run; nor is it the time to be paralyzed and not take any action at all. Board and staff leadership must have the fortitude to be proactive and think strategically about what decisions will ensure viability and sustainability.

Board members should step up to the plate with financial contributions, professional expertise and fundraising assistance. Their fiduciary responsibility in approving budgets and reviewing financial statements on at least a quarterly basis can help keep financial projections realistic If your board is missing financial expertise, recruit it now.

• Communicate early and often.

Silence is not golden in times like these. Communication at all levels of the organization — internally among board and staff and externally with donors, clients, and the larger community — is essential to maintaining confidence in your organization and the services you provide. Staff must maintain open communication with the board about the financial health and needs of the organization. Nonprofit leaders must also communicate with their staff to address their concerns so that staff can remain focused on the delivery of needed services in the community and not the organization's financial status.

Do not forget to communicate with your donors. If you present a confident, clear, consistent message, donors will likely have greater confidence that your organization will be a good steward of their contributions ("Philanthropy Journal," Nov. 10, 2008). Be honest about your financial needs, but also communicate that you have a plan to address those needs.

• Stewardship of your donors is key. I cannot stress enough how important it is to engage and communicate with your donors, especially your loyal individual donors. They are the ones most likely to help you through. Call them — do not wait for them to call you; and do not apologize for asking for their support. They will likely understand that your

needs have increased as

your clients' needs have increased, and for that reason they might be even more generous.

• Review your budget and operations.

If your annual operating budget was developed before the steep slide in the economy began, you need to review it because it might not be realistic anymore. Look for ways to cut costs, but don't stretch yourself so thin that you cannot operate effectively, which will end up hurting your clients in the long run. An internal audit could reveal ways to streamline procedures and increase productivity and reduce costs at the same time (The Bridgespan Group). Stay focused on your mission and essential services. It may not be the time to undertake a new initiative unless it is critical to fulfilling your mission.

Historically, charitable giving overall has not declined much during economic downturns; in fact, it has declined an average of 1 percent during recessions since 1967 (Giving USA Foundation, September 2008).

At the Southwest Florida Community Foundation, we remain committed to helping nonprofits improve their organizational capacity and sustainability. Through our Capacity Grants (next deadline Dec. 15), we can provide up to $1,500 for operational audits and plans, fundraising plans and board development to help organizations develop the resources to better manage the economic downturn.

The Southwest Florida Community Foundation has been supporting the communities of Lee, Charlotte, Collier, Glades and Hendry counties through endowed funds for nearly 32 years, and during that time has provided more than $30 million in grants and scholarships. For more information, call 274-5900, or visit www.floridacommunity. com.