Unemployment Rates Key Indicator for Nonprofit Revenue Futures

Of all the economic indicators, I believe unemployment is the most important one for nonprofits to watch. More important than consumer confidence, stock market, housing market, etc.

Why?

High unemployment rates:

1. Increases in demand for services. A larger population struggles to meet the basic needs for themselves and their family. This puts additional strain on the nonprofits that already serve and underserved population with limited capacity for expansion.
2. Decreases in individual donations. This comes in two forms. First, a smaller donor pool, and second, pressure from the remaining employed to increase gifts to cover the funding short-falls.
3. Finally, Decreases in corporate giving. If employers had to resort to workforce reductions, and employees are their most valuable asset, this means that there is fewer dollars available for charities. Now, not all corporations may operate this way, but in general, I bet this is very, very true.

Let's take this a step further. Unemployment also affects tax bases, particularly for the states. The tax-revenue gaps create budget shortfalls, some very severe.

Because of the short-falls, some states are looking to revoke some tax-exemptions for charities such as state tax, property, etc and/or institute deals to cover fire/water services with nonprofits (such as large educational institutions and hospitals). There is no word if any of this will actually go through, but it certainly may "tax" already cash-strapped service providers.

Tell me I'm wrong....

I know I'm a slacker....

Ok, ok. I know. I'm a slacker. It's not that I've been ignoring what's happening in the nonprofit space, or the for-profit space for that matter...it's just that, hell...I'm busy...

So, I'm curious. How do non-career journalists, bloggers, and consultants do it? Perhaps I'm a late adopter (and if your target market is a 30-something tech-phobic, rather read a book and are sick of being on a computer, then talk to me on how to sell your product), or perhaps I'm just lazy...

Either way, I promise to do better....maybe.... :)

Cheers,

Heather

Shift in goal setting: smoke & mirrors or sign of the times?

A number of nonprofits are forgoing the typical “dollar-raised” campaign goals and working to better articulate the mission beyond the dollars. This is particularly important in a time where unemployment is at historic levels. Whether its number of new donors or number of books raised, the goals hope to bring new focus to fundraising strategies and the community impact.

The Nonprofit Quarterly wrote an interesting article how the United Way, known for touting dollars raised, is trying to turn the cultural tide in campaign goal setting.

Certainly food for thought.

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Why Don't Boards Do What They're Supposed to Do?

An interesting article from Guidestar's newsletter by Hardy Smith of Hardy Smith Nonprofit Consulting.

Why don't board members do what they're supposed to do? Six recurring themes were identified as the foundation for most issues and solutions:

• connectivity
• no surprises
• importance of time
• improved communications
• accountability
• organizational focus

Read more >

Agreed!

Cash Flow Woes in Nonprofits

I’m fascinated by the economic dynamics at play in the past year. The nonprofit sector tends to lag the market by 9-12 months in both good and bad times. This is partly because of the way the government attempts to funnel money to the sector, partly because of fiscal-year budget differences, and partly because of the way charitable giving is treated by individuals. While I could go on, I won’t, less you tell me you want my two cents.

Speaking of stimulus, there are a lot of cash flow issues cropping up within nonprofits waiting on funds from the states. While delays between the award letter and cash-in-hand are common with government grants, the stimulus funding contains deadlines for programs, hiring, and reporting prior to the cash being distributed. This is putting a lot of great nonprofits in a bind, especially those dealing with increases in demand.

If you’re a nonprofit and you have not started diversifying your funding sources, please start now. It’s not easy, and with no easy answers in a down economy. But I’ve talked with too many ARRA recipients who are hurting because of a lack of “plug money.” I’m also talking with those who are winning because they established a funding strategy and rainy day fund for just such an instance.

There are lots of resources out there, and lots of articles. But the key is to understand your market demographics, start small, and implement what is sustainable. Overtime, you’ll gain momentum. No successful program emerges overnight – even in this world of instant gratification or instant access.

Festival of Cheese and a Novice Taster...For Real

Browsing through the Austin Chronicle, always a source of super-cool things to do in Austin, I found a winner.

On Saturday I attended the American Cheese Society's Festival of Cheese event in Austin, TX. I’ve never attended such an event, and had no idea what to expect. They boasted over 1,000 cheeses and all the wine, spreads, breads, fruits and crackers I could eat. For $75/ticket, I thought I certainly could get my money worth.

As I entered the hotel lobby, I was hit with the smell of cheese. It grew stronger as I traveled to the grand ballroom, and the buzz of the crowded filled the air. As I passed the attendant my ticket, I could hardly contain my curiosity to this underworld of cheese makers I never knew existed.

And then I walked through the doors.

Table after table after table of cheese! I’ve never seen as much cheese on one table, let alone probably 100 tables.

So I naturally started at table 27 and filled my plate with little samples. At my third table, I was cheesed out. Obviously, a novice and not a cheese connoisseur!

However, I was revived with my personal favorite of the show, 1st place Brie Normandie, from Agropur, Fine Cheese Division, Quebec. A thin wafer and a raspberry on top, de-lish!

My tip of the week is if you ever attend an event where food is judged, hit the ribbons first! I’m sure I missed out on some wonderful cheese and craftsmanship.

Well done, cheese makers, well done.

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2009 Judging Competition and Results

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Ok - Let's try it Blog It

I'm attempting to feed back and forth between my facebook account and Blogger account. Let's see if this works. If so - well done. If not, hmmm....anyone recommend a different app?

drum roll please........