Thoughts about the Economic Downturn

It’s on everyone’s minds, and I’m getting asked more and more often to comment on the economic downturn.  Here are a few thoughts:

Clearly, these are difficult times.
Increasing demand for services and decreasing donations are placing a strain on nonprofit organizations, particularly health and human service providers.  Individuals are watching their budgets and less likely to spend on arts and cultural activities, affecting the earned income of arts and cultural groups.  A general mood of hunkering down means less money is in circulation, affecting us all.  This is likely to last for some time to come.  Our donors need inspiring messages so they will be moved to continue their contributions.

If only we were more organized…we might see more funding coming from the economic stimulus package.  From what I hear, states with strong nonprofit sector advocacy organizations are starting to see stimulus dollars flowing to their social sector.  This is a lesson for the future on identifying and working toward our common interests as a sector, and a reminder to value our intermediary organizations (and to demand good leadership from them!).

Some good things are happening societally.
Some of the same behavior changes our social sector organizations have been trying to foster for many years are suddenly coming to pass, not as a direct result of our efforts, but because the downturn has forced behavior change.  Driving is down, public transit is up.  Seed sales are at an all-time high, and everyone I know is talking about whether to get chickens for their backyard.  Library usage is up.  Predatory lending is down.  People are showing care and concern for their neighbors.  They are buying locally in the hopes that their local shops can stay afloat. Let’s remember that there is a silver lining to this time, and celebrate it.

People are open to new ideas. There is a strong feeling that the usual ways of doing business are not working any longer.  Naturally, this is very destabilizing and scary for many.  It also presents an opening for creativity and innovation, within our organizations and outside of them.  If you have a different approach, this may be the time to test it out—you are likely to get more support for it in the current environment.

It’s time to value volunteers again. I’ve commented before on the paradox of the growing professionalization of the voluntary sector.  Well, this may be a time when the balance of power will shift back toward volunteers somewhat.  While I acknowledge that it does take time to manage and plug in volunteers, volunteer labor is still cheaper and more sustainable than professional staff in many instances.  Volunteer programs ground an organization in the community, spread expertise, build community ownership and awareness of your issues, and leverage more hours of service.  Consider how you can respond to the following trends:

  • Volunteers may be hesitant to drive across town for volunteer service—how can you engage neighbors in your organization?
  • Lots of impressive folks are out of work but are seeking meaningful engagements until their next job materializes—how can you tap these folks?
  • Recent college graduates are facing a very difficult job market—they may be willing to work for less or consider a year of service. I know my cousin would rather work for you than at his current minimum wage job at a convenience store.  His major?  Neuroscience.

What are your thoughts about managing through this era?  Whatever we do, we need to keep talking to each other and recognize that we are not alone.

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