The culling of the Not-for-profit Sector

publication date: Apr 19, 2020

It’s been five weeks since COVID-19 slammed into our sector. Shock is being replaced with a new sense of pragmatism. We’re starting to shift our focus from our immediate priorities, to the upcoming campaigns, and to the new reality of fundraising post-COVID.

It is too early to tell where this is all going to end. We are seeing a wide range of responses from different charities. Some charities have leapt on the “engagement bunny train,” reaching out to donors, connecting with their community, and letting people know what is happening and how they can help.

If the bunnies are hopping to it, there are other nonprofit animals that are not quite as agile.

Take the ostriches, for example. They are trying to update their communications message, but by the time they get it approved five days later by the three levels of bureaucracy, the messaging is irrelevant, and they end up trashing it.

The “engagement bunny” organizations are pivoting hard, transitioning into uncomfortable things like online programming, sending direct mail pieces with untested content, and cutting staff budgets.

The ostriches are taking a wait and see approach. They know they can operate until their cash flow is gone, and by then, it will be over, or they will have closed their doors. Whichever comes first is fine.

It all sounds terribly Darwinian, doesn’t it? Survival of the fittest.

At the end of COVID-19 some organizations will survive, and others will not. Imagine Canada is predicting large losses in the charitable sector – as many as 10% of charitable organizations will not survive.

The survivors will have these four characteristics. Look at the list below and take stock. How does your organization stack up?

Leadership – Strong leadership from both the executive and board will help engagement bunny organizations make tough decisions in a healthy, collaborative way. In times like these, there is no room for politics or playing favorites. Good governance will always result in good decisions made for the common good. CEOs with strong networks will be reaching out to their colleagues to find out about the latest aid package, or government program. They will complete the applications, and find out the deadlines, and make it work. The ostriches will struggle to get everyone to agree on the right next steps. They’re not used to the pace of all this. Maybe things will go back to normal soon?

Mission – “Engagement bunny” organizations already have a strong connection to their mission. COVID-19 hasn’t changed that. If their mission was important before COVID-19, their mission is still important after COVID-19. Strong mission means strong volunteers, strong engagement, and strong donor commitment. There will be no room for organizations who are busy “figuring themselves out.” Some missions will not weather the COVID Darwinian apocalypse.

Money – The ostriches have been ignoring their ever-decreasing reserves, donation dollars, and funding cuts from government organizations. They remember the “good old days” and would love to go back there. In contrast, the “engagement bunny” organizations have been working intentionally on growing their revenue streams and have built a small buffer through good management. They included the word sustainability in their strategic plan not just as a placeholder, but as a way of operating.

Engagement – The “engagement bunny” organizations never stopped communicating. They have stayed relevant, and have adapted their donor communications and outreach over the years to connect with different kinds of donors. Online? Sure, they do that. Now they’re doing even more. The ostriches? They are locked out of their databases and cannot access their files. And what would they say? They have not been in touch in ages.

My prediction is that we are going back to basics. What does fundraising in a post pandemic world need?

We need leaders who are bold enough to say what needs to be done.

We need missions that are relevant and connected to a loyal community.

We need donor dollars – money – to make programming happen. That means asking for money, even if it feels uncomfortable (because it is not about us!)

We need to double down on humanity. We need to engage with people, bring comfort, and let them know how they can help.

Leadership, Mission, Money and Engagement. How’s your organization doing? Add your thoughts below or send them to Jenny@Chavender.com

Jenny Mitchell is stuck in her house in Ottawa with two reluctant homeschoolers, a happy dog and a noisy husband. Her work as a fundraising coach for not-for-profit leaders continues during the pandemic and her company Chavender continues to help people do more good in the world. Email Jenny@Chavender.com to join her #fundraisingmojo community.



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