A question that is surely on everyone's mind right now, as no one, except perhaps those who are nearing 80 years old and who lived during the Great Depression, has experienced such a time of financial uncertainty as we are in now. So, with that caveat, it may be useful to focus on six things we do know.
First. Do not count on investment income--incredibly some organizations include anticipated income from investments in their operations budgets.
Clearly that is not wise, even if your organization is among the fortunate few that have not incurred losses on their investments this past year.
Second. Diversify your income streams as much as possible. The not-for-profit organizations that are doing best run programs that enhance people's ability to be employed or otherwise to advance in their jobs and professional careers. In this regard, organizations that have credentialing programs, and the education and training programs that go with them, are growing fastest financially. Budgets that are heavily dues-based are most vulnerable.
Third. Consider government contracting. I know, I know, government contracting can be a pain. There is all that paperwork to fill out and the pay is not all that great; but, in a time when the private sector is soft and crumbling, the government is a good client/partner to have.
Fourth. Do not bring on the very thing you fear. Many, many organizations are doing just fine. If you are one of them, then grow!
Grow prudently and cautiously but grow. If you voluntarily stifle your own growth opportunities then you may be sacrificing your future to your fears. Roosevelt was largely correct when he said, "The only thing we have to fear is fear itself."
Fifth. Remember that identifying the factors in your organization's strategic environment is your first step in strategic planning; in this regard, external events that may have a great impact on your organization can be either classified as threats or opportunities--but sometimes they can be both. Turning a threat into an opportunity is often what distinguishes good managers from great ones. Apart from this, it does help everyone, I think, to adopt a mindset that sees tough times as challenges to be overcome rather than as a fate over which we
have no control.
Sixth. Consider strategic partnerships (see ASAE's "The Power of Partnership"). There is no better way to achieve your goals with less cost and risk.
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