Nonprofits need to focus on mission and improve efficiencies

Scenes from the Briefing

Over 200 foundations and nonprofit leaders were convened by Associated Grant Makers and our partners, the Boston Foundation, Massachusetts Nonprofit Network, Third Sector New England, and the United Way of Massachusetts Bay & Merrimack Valley, for the 2010 State of the Sector Briefing at City Year in Boston on Tuesday, January 12.

Dr. Robert Triest, vice president and economist of the Federal Reserve Bank of Boston, provided the audience with a forecast on the economic environment and outlook for 2010.  He did not sugar coat the analysis of recent unemployment statistics.  While he offered the information that although the recession ended in fall 2009 and Federal Open Market Committee (FOMC) forecasts economic growth in 2010, employment is still weak and unemployment will likely remain high for a considerable period of time.  Dr. Triest specifically addressed concerns for the nonprofit sector noting that the present economic conditions portend an increase in poverty which in turn means an increase in the need for nonprofit services. Download PDF of Dr. Triest's Presentation

Although the economic outlook may have caused some to be disheartened, the message from the panelists that followed was to seize this “opportunity” to focus on the mission of your organization and get the message out to your audiences.  

Miki Akimoto, AGM’s acting president, led a panel discussion with local leaders who shared their reaction to Dr. Triest’s presentation and provided their own perspective on the strategies needed to survive during these challenging times.

David Magnagni, executive director of the Massachusetts Nonprofit Network, reacted to this bad economic news with the thought that the nonprofit sector can see this as an opportunity for change.  “Our biggest asset in the sector is the people; they are committed to do whatever it takes to address the need. We need to find progressive and aggressive solutions to the issues that Dr. Triest outlined.”

In a more sober approach, Geeta Pradhan, director of programs at The Boston Foundation, urged the nonprofit sector to become smarter about how we do business. Ms. Pradhan expressed concern for the United States losing its competitive edge.  “Education and healthcare are our edge. For the nonprofit sector it is our innovation and creative capability.  We need to look at our missions. Look at our efficiencies.  How do we coordinate the work of multiple organizations so we have more impact?”

Echoing a similar strategy, Michael Weekes, president & CEO of the Providers Council, suggested cutting administrative costs is not the only answer to this situation.  “We have to do this very smartly; increasing on focusing on mergers, collaborations, innovation, creating new models of service.”  Mr. Weekes told the audience this economic crisis sets the stage for the nonprofit sector to tell the public who we are and what our role is.  “We need a communications strategy to talk to people we could never talk to before.  It’s a better opportunity now to get our messages across; everyone is searching for answers.”

From his perspective as a lawyer with a bird’s eye view of operating functions of many organizations, James Westra, partner at the Boston law firm of Weil, Gotshal & Manges and a director of the United Way of Massachusetts Bay & Merrimack Valley, believed the challenges we face are structural and long term.  “Although we can take comfort in some modest recovery, clearly we’re in for a long haul; governments will be under stress for a long time so nonprofits that rely on government funding will be under pressure.  As a sector, we have to be focused, mission-driven and less organization driven. One of my takeaways is that this sector has to look at increased efficiencies, shared facilities, space, etc.; we must work more efficiently in the days ahead.” He also strongly encouraged nonprofits to get engaged in critical policy debates, as the nonprofit perspective on key policies and programs at the state level will be vital.

In closing remarks, Jonathan Spack, executive director of Third Sector New England, reflected on the themes addressed by the speakers.  It’s important for nonprofits to focus on organizational mission and keep alert to opportunities that exist; don’t cut back so much that you lose your adaptive capacity to respond.  For the funding community the theme of supporting general operating support and long-term grants emerged from the discussion.  “Lastly, we nonprofits need to redefine ourselves publicly as efficient and creative problem solvers.  We always do a great deal with very little.”
  

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