Nonprofit Finance for Hard Times

How to make strategic plan to help your nonprofit navigate turbulent financial waters and achieve strengthened revenues During this time of upheaval and instability with the country's financial markets and economy, you might be wondering how your nonprofit can emerge stronger from this unprecedented turmoil and prepare for future economic cycles. Practical and timely, Nonprofit Finance for Hard Times: Leadership Strategies When Economies Falter helps your nonproft get strategic in the weak economy. Nonprofit Finance for Hard Times shows you how surviving the current economic conditions means dedicating yourself to understanding the details of the current financial crisis and identifying those Board members and other leaders who can give you deep analysis on the crisis and act as your analysts of the winners and losers in real time. * Emphasizes that the core of all strategy is engagement * Helps you reassess your nonprofit's communications tools for both messages and markets * Asserts that the operative need is for strategy, not panic * Revisits all assumptions * Explains how to sort and cull past supporters for those who will emerge from the turmoil first and strongest * Reveals how to identify new audiences Providing the guidance your nonprofit needs-not to just hang on for the white-knuckle ride, but to plan their best strategy to survive and succeed-Nonprofit Finance for Hard Times equips you with the tools you need to get started.

List of Exhibits xi List of Cases and Commentary xv Preface xix Acknowledgments xxi About the Author xxiii CHAPTER 1 Beginning at the Beginning: Public Charities on theEconomic Landscape 1 The Present Departs from the Past 2 A Complex and Poorly Documented Sector 4 An Economic Engine 7 Nonprofits as Masters of Their Own Fate in Economic Turmoil8 CHAPTER 2 Setting the Larger Stage: A Philosophy ofPhilanthropy 11 A Fundamental Question 12 Engagement as Differentiator 13 Passion and Leadership 14 CHAPTER 3 Philanthropy within Financial Structures: DefiningOverall Nonprofit Revenue 17 Sectoral Distinctions and Revenue Structure 19 Size Distinctions and Revenue Structure 29 Summary: The Prerequisite for Strategy Refinement in Hard Times31 CHAPTER 4 Emerging Nonprofit Revenue Parameters:Accommodating Change in the Interests of Stability 35 The Definition of a "Nonprofit" 36 Globalization of Economies, Leadership, and Philanthropy 40 Technology: The Emergence of Social Networking 41 Demographics as Destiny 45 Summary 57 CHAPTER 5 Institutions Blaze New Trails: Innovations inPhilanthropic Financial Support Strategies 61 Traditional Foundation Giving 62 New Strategies for Supporting Societal Missions 65 Cause-Related Marketing 74 Capitalizing on Innovation: The Prerequisite of Planning 77 CHAPTER 6 Does the Economy Matter? The Complexity of EconomicCycles and Nonprofit Revenues 81 The Opportunity of Cycles 82 Nonprofits and Economic Change: Treating Mission as a Sail, Notan Anchor 82 The Past Record of Private Contributions and the Economy 84 Disaggregating Data for Deeper Relationships 88 Disaggregating to the Level of State Economies 90 A Note on Government Roles 95 Five Insights to Guide Strategic Directions 95 CHAPTER 7 A Systems Approach to Revenue Strategy 103 The Imperative of Letting Go: Paradigmatic Shifts 104 The Shifting Basis for Strategy 107 The Context of an Analytic Framework for Strategy 109 Proposed Analytic Framework to Organize Strategy 114 Populating the Framework 118 CHAPTER 8 Common Principles for Robust Strategy 121 A Note on Mission 122 Strategic Principle One: Value the People 123 Strategic Principle Two: Innovate 126 Strategic Principle Three: Expect and Accept Nothing Less thanExcellence 129 Strategic Principle Four: Passion Matters but So Do Skills132 Strategic Principle Five: Know Yourself 133 CHAPTER 9 Getting Down to Specifics: Strategy for Complexity135 Understanding Movement within the Analytic Framework 135 Expressive Philanthropy: Strategy Base = Communicating SharedValues 137 Rising Expectations: Strategy Base = Evidence and InterestAlignment 143 Quasi-Markets: Strategy Base = Competitive Self-Reliance 151 Pure Markets: Strategy Base = Linking to Outside CommercialSuccess 157 Crossing the Strategy Area Boundaries 161 CHAPTER 10 Prevent Where Possible, Cure Where Necessary:Strategic Steps to Prepare for and Respond to Economic Crisis165 Steps to Prevent Organizational Crisis in Economic Hard Times166 Steps to Cure the Effects of Organizational Crisis in EconomicHard Times 172 Final Comments: A Call to Leadership 175 CHAPTER 11 Reprise on Philanthropy: Why Bother? 177 CHAPTER 12 Making a Difference in the World by AligningYourself with the Poor 181 Index 191