Summary of the Funder-Grantee Conversation on the
Economic Situation and Moving Forward
January 8, 2009
Introduction
Co-Sponsored by Associated Grant Makers, The Boston Foundation, Massachusetts Nonprofit Network, Third Sector New England, and United Way of Massachusetts Bay & Merrimack Valley
Please note the panel discussion was recorded and will be available as a podcast shortly.
On January 8, 2009, five of the leading nonprofit organizations in Massachusetts convened approximately 350 participants – from nonprofits, foundations, public sector agencies, and consulting practices – in Boston to hear a panel discussion on what the nonprofit sector needs to both survive and thrive in the current economic climate, and to engage in lively table-based conversations.
The program opened with a welcome from Ron Ancrum, President, Associated Grant Makers, who reminded participants that because of the current economic climate, the nonprofit sector needs to think seriously about collaborating, coordinating and working with each other. This is the time to seize the moment to be creative and innovative. As we move forward, we need to insure that the communities and individuals in need we serve get the help they need. There is a need for concrete action plans. He emphasized that this meeting was a beginning, not the end.
After Mr. Ancrum’s welcome, a panel discussion, ably moderated by Anthony Everett, WCVB-Channel 5, addressed several key issues facing both funders and nonprofit service providers.
The panelists were:
Panel Discussion
The panel discussed a wide range of topics, focusing not only on the immediate responses needed to weather the current economic storm, but also the longer-term systemic changes that are needed for the sector to thrive. Several key themes emerged from the discussion:
Focus on services and communities; collaboration
There is a need for all players in the nonprofit/public sector to look seriously at the services being delivered and the needs of those being served, and then make decisions about how to best provide those services, rather than focusing on individual organizations. As one panelist put it, “If you go back to why we got into this business in the first place, it’s not about saving organizations, it’s about creating better communities.” There was a call for organizations to not think solely about their own survival, but to think broadly about community needs and how those can best be met.
As a part of looking at how to best serve this community, nonprofits need to think seriously about collaboration and working with each other in the most effective way. This collaborative approach can take a number of forms up to and including mergers, but mergers may not be the only answer. It may be a question of looking at the range of services you offer and seeing if there are other agencies with which you can partner to better offer those services at greater efficiency.
Need for public voice
Nearly every panelist voiced ideas that focused on the need for nonprofits to have a stronger and more unified public voice. These ideas included the need for nonprofits to “tell better stories” about what nonprofits do, and how they contribute both to their communities and the Massachusetts economy.
In addition, there was a clear call for nonprofits to strongly advocate for a piece of the economic stimulus package that is now being considered at the Federal level. It’s important that public policy advocacy work begin now so that when Massachusetts receives its share of the stimulus package that nonprofits aren’t overlooked, particularly as many are well positioned to offer the types of services (e.g., job training) that are urgently needed.
There was also some discussion of the need for the sector to help educate the public on taxes and the importance of a strong tax structure for the state so that programs and services, over the long term, are sustainable.
What do nonprofits need?
There was some discussion of what nonprofits need to best handle the current situation and the longer-term. There appears to be a need for better data for decision making, both by nonprofits and funders. One panelist noted that funders used to have access to a central repository of community data at the United Way that no longer exists. Further, there was a sense by at least one panelist that funders are making decisions independent of each other, and the result was a lack of planning and cohesion in what organizations, projects and communities are funded. A couple panelists mentioned the need for capacity building and general operating support grant dollars. Finally, it was noted that nonprofits need to think about their financial structure more like a household or state government and build cash reserves (a “rainy day” fund) so that they are prepared for periods when fundraising is more challenging.
The Future
One panelist noted that this current recession “felt more like the 90s than the crash of 2001” and that in his estimation, that would mean that 2009 would be worse than 2010. A couple panelists suggested that this may be a period of shakeout in the nonprofit sector and that not all nonprofits would survive the current crisis.
Despite the understanding – across the panel – that the current situation is tough and likely to get tougher, there was a strong current of optimism about the future of the nonprofit sector. A couple panelists mentioned their hopes of the contributions that the young leaders and next generation of leaders would make to the field. One panelist pointed out that in times of crisis, you often have the best chance for real innovation and change. Another panelist pointed out that this is still a wealthy community and there is money for nonprofits with strong approaches and track records.
This meeting was covered by:
The
Boston Business Journal: Non-profit leaders see "Darwinian" times
Massnonprofit.org: Mass. Nonprofit Leaders Say Nonprofits Need to Act Boldly
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