How Can Nonprofits Weather the COVID-19 Storm

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Lawrence S. Sykoff, Ed.D.

By Lawrence S. Sykoff, Ed.D.

These are undeniably the worst of times. The global pandemic has thrust upon us unimaginable hardship, compromising people, businesses and communities. The number of coronavirus cases and deaths has created a wave of seismic changes to our routines, requiring immediate adjustments to mitigate the effects imposed by a viral outbreak of such tremendous scale. 

Our community is blessed with a revered network of diverse organizations: health care services, food banks, homeless shelters, animal advocacy associations, psychological support networks, environmental conservation initiatives, nursing home and assisted living facilities, and visual and performing arts groups. These nonprofits are urgently in need of immediate and substantial support to weather this particular storm. Nonprofit organizations have been extremely vulnerable to the devastation of this “black swan” event, interrupting the delivery of essential services and disrupting the lifeline of traditional philanthropic activity.  

For most nonprofits, this period necessitates decisive leadership, disciplined governance and sharpened oversight, when nothing should be left to chance. Powerful planning and concentrated tactical maneuvers – the kind that has all hands on deck – can increase the likelihood of a good outcome. Very short-term strategic action plans, created in a clear and timely manner, have never been more important. Some nonprofits are rising to the occasion, but many are suffering with severe consequences. 

To be certain, organizations that were well-positioned for success prior to the pandemic will have an edge over those who were floundering before the crisis began. Still, research confirms that some organizations can thrive through adversity. While this pandemic has thrust us into a violent storm, it is what we do before the storm comes that matters the most. Weak governance, muted and opaque communications, dysfunctional fiduciary oversight, vague strategic direction, mission-drift, and disengaged donors are signs of poor organizational health, whether or not we are experiencing a public health and economic crisis. 

Unfortunately, good intentions are not enough; rather, acting on good intentions is what engages the real potential for organizational progress. Some charitable organizations understand this approach and are working effectively to remain solvent, functional and relevant. 

Nonprofit leaders and boards that remain focused, routinely evaluating and planning for risk, are already constructing adaptive abilities – not for just addressing emerging risks, but also for developing a readiness mindset for ever-changing priorities. Organizations that were previously mission-driven, operationally efficient, and supported by an engaged donor and patron base will have a greater chance to minimize negative outcomes during this crisis. While there is no guarantee any organization will emerge successfully from this extraordinary viral assault, organizations that practiced foresight through focused collaboration will be more equipped to not only survive, but ultimately thrive.

While the dust from the coronavirus has not yet settled, it is important for organizations to maintain an action-oriented crisis template to address the myriad of logistics imposed by the current environment. This is when we set aside the usual committee structures, allowing the designated crisis committee to construct a short-term, 9-to-12-month, strategic agenda. Both boards and team leaders must work cooperatively, temporarily departing from the conventional model that separates management and operations from board governance. 

Exceptional governance during a crisis requires laser-sharp deliberation, collaborative discussion, and data-driven decision making. In my experience, the key elements of a meaningful crisis planning agenda should include:

•  Developing short-term financial scenarios, no longer than 12 months 

•  Acting with urgency to consolidate resources 

•  Adjusting quickly to remedy missteps

•  Learning how pandemic disruptions may have revealed better ways to operate

•  Envisioning the big picture, reformulating the relevancy perspective

•  Asking the tough questions, considering various “what if” scenarios 

•  Evaluating the modification of services in the short term until a new normal emerges

•  Reinventing traditional fundraising events, investing limited dollars wisely

•  Expanding donor communications with convincing appeals, demonstrating need and impact

•  Exploring partnerships and affiliations with similarly situated organizations

•  Pursuing all available grants from corporations and foundations

This certainly is not the time to delay action until the situation becomes clearer. Jim Collins and Morten T. Hansen in their book, “Great by Choice,” suggest that those organizations that manage and facilitate the friction between discipline and creativity will have shown that “they don’t merely react; they create. They don’t merely survive; they prevail. They don’t merely succeed; they thrive.” This is the precisely moment when active, committed and engaged leadership and governance can build a bridge to the uncharted future.  

The nonprofit world offers so much hope in this unanticipated tragedy, but we must all help these organizations boost their staying power. Voluntary contributions come in many different forms with a plethora of opportunities to be supportive. The more we do, the more the best of humanity shines on these dark days. The survival of nonprofit organizations presents us with the opportunity to be responders and heroes. Our collective support will help charitable organizations weather the storm and emerge with stability and optimism. This is the time to be strong, to act with empathy, and to stand together. 

Lawrence S. Sykoff, Ed.D., is headmaster emeritus at at Ranney School and founder and president of LSS Consulting Group.

The article originally appeared in the May 28 – June 3, 2020 print edition of The Two River Times.