As we discussed in class, non-profits have been impacted by COVID-19 as well. In our presentation today, we heard about the possibility of budget cuts and less donations from the state and public due to more "essential" causes. This begs the question: what are non-profits doing in response?
Upon analyzing the Board Source, a global network of leaders that represent a wide variety of the social sector that aims to provide support to organizations, I have read about several common problems faced by non-profits and potential solutions. Here they are summarized below
Problem: Events have been cancelled for many nonprofits which results in lack of revenue and inability to pay staff long term.
Board Source solution: Nonprofits need to analyze their financial impacts of keeping and reducing overall hours. They need to do a long term analysis on the costs and benefits of either option and put into scope what they can afford.
As we heard from Debra, they are trying to keep and still pay all their workers so I'm sure that is a top priority.
Problem: Due to revenue reduction, nonprofits might not be able to fulfill their programs. They want to know if they can redistribute restricted grants.
Board Source solution: Many nonprofits have opted to turn to virtual programs. At special circumstances, nonprofits can possibly reach out to funders and ask for permission regarding redistributing restricted grants.
This is really unfortunate and will affect the community greatly. For an organization like VINES, their farm share program impacts many people and without it, people will struggle.
Problem: Board CEOs are faced with many different decision, including different opinions from board members, during this time and are having trouble with keeping up with the nonprofit and making the right decisions.
Board Source solution:At this time, it's important for board members to stay informed instead of overwhelming CEOs with resources and information.
The effect on nonprofits from COVID-19 is interesting as nonprofits range from a wide variety of assistance. I wonder if nonprofits directed at natural disasters like hurricanes would be better prepared.
To read more problems, https://boardsource.org/resources/nonprofit-board-member-respond-covid-19/
Lily Wang
Upon analyzing the Board Source, a global network of leaders that represent a wide variety of the social sector that aims to provide support to organizations, I have read about several common problems faced by non-profits and potential solutions. Here they are summarized below
Problem: Events have been cancelled for many nonprofits which results in lack of revenue and inability to pay staff long term.
Board Source solution: Nonprofits need to analyze their financial impacts of keeping and reducing overall hours. They need to do a long term analysis on the costs and benefits of either option and put into scope what they can afford.
As we heard from Debra, they are trying to keep and still pay all their workers so I'm sure that is a top priority.
Problem: Due to revenue reduction, nonprofits might not be able to fulfill their programs. They want to know if they can redistribute restricted grants.
Board Source solution: Many nonprofits have opted to turn to virtual programs. At special circumstances, nonprofits can possibly reach out to funders and ask for permission regarding redistributing restricted grants.
This is really unfortunate and will affect the community greatly. For an organization like VINES, their farm share program impacts many people and without it, people will struggle.
Problem: Board CEOs are faced with many different decision, including different opinions from board members, during this time and are having trouble with keeping up with the nonprofit and making the right decisions.
Board Source solution:At this time, it's important for board members to stay informed instead of overwhelming CEOs with resources and information.
The effect on nonprofits from COVID-19 is interesting as nonprofits range from a wide variety of assistance. I wonder if nonprofits directed at natural disasters like hurricanes would be better prepared.
To read more problems, https://boardsource.org/resources/nonprofit-board-member-respond-covid-19/
Lily Wang
This post was a very interesting read. With all that is going on right now, the non profit side of things is definitely affected. I have done a lot of thinking regarding how various non profit organizations could be affected by this pandemic. Having some ideas laid out like this throughout the post was cool to see.
ReplyDeleteMy number one thought was how events could be cancelled, and you touched on that nicely. When I looked at the solution, I pretty much accepted the fact that the Broad Source provided general ideas into how to go about it. I did look at the “long term analysis” differently though. Although I don't know the specifics of what this details, I can only imagine that it would be very difficult. That does not mean that organizations won’t be able to go about it correctly and thus plan correctly, but I just think it will be difficult to map out a timeline when there is so much uncertainty regarding the time frame of this pandemic. Furthermore, I do not think anything will be easy during this change, quite frankly.
I like how you went on to bring in our own candidate organizations into the discussion. This was displayed when you mentioned VINES’ farm share program. I thought this was a useful way to look at it.
Hi Lily,
ReplyDeleteI completely agree that the worsening situation of the COVID-19 pandemic and effects of social distancing is having a great impact on the community as well as the nonprofit organizations. There were many differing opinions and perspectives regarding this topic within out class discussion last week; however, I personally believe that we must consider the nonprofit's response to this pandemic as an important criteria when assessing our finalists. This clearly makes the most sense, because even while as individuals, we prioritize certain morals and criteria over others, an underlying common theme in choosing the finalist organizations was that we chose the nonprofit that we believed was in most need of the grant money and would use it the most efficiently. Therefore, aligning with the principle of which organization needs the money the most, especially as they are being affected by the limits and consequences of COVID-19, we should incorporate the response to this pandemic within our criteria.
I found the Board solution that nonprofits "need to do a long term analysis on the costs and benefits of either option and put into scope what they can afford" an interesting and valid point. We should, as a class, pay more attention to organizations that have a structured plan and long-term goals established which adjust to the issues faced in these trying times. This will this help us visualize the organization's purpose, how urgently they need the grant based on how much they are financially impacted by the negative consequences of the pandemic, and whether it is effective in advancing their mission. It will also show a sense of responsibility, organization, trustworthiness, and determination within the organization. These are all desirable characteristics within an effective nonprofit, and therefore we should look for a structured plan in response to the pandemic within each finalist to help assess the organization and which one to give the grant money to.
Finally, we need to consider the risks of choosing an organization which poses a benefit to the community especially in our current situation, but also one that may not be sustainable within these limited resources and changing environment. For example, VINES is a nonprofit which seeks to provide a sustainable food system within communities. While this is an extremely helpful service which seems like the best option to support currently, especially during this pandemic where food sources are scarce and grocery stores are nearly always empty, we need to be sure that VINES will be able to overcome the limitations and consequences of COVID-19 and will be able to continue their services successfully through it.
By analyzing the structure of their future plans in response to the pandemic, weighing the risks and potential in choosing an organization which provides resources demanded currently, and determining the urgency of need of money for an organization which has been the most financially affected, we, as a class, should and will be able to incorporate the nonprofit's response to COVID-19 as an important criteria in assessing the five finalist organizations.
Hi Lily, thank you for writing this blog post! One of the main issues about what we’re experiencing with this pandemic is that we truly do not know how long this will last. The social distancing is only planned for a few months as of right now, but it could very well extend to years. Even after social distancing may be lifted, things cannot go back to normal right away. There must be a slow transition back into “normalcy”, aka how things were before. When Board Source says they need “to do a long term analysis”, what does this entail? How long is long term? I agree with the statement at the end how “nonprofits range from a wide variety of assistance”. I wouldn’t say that organizations targeted for natural disaster relief are necessarily better prepared for a natural disaster. Another thing about this pandemic that makes this situation so unique is that no one has experienced something like this before at this scale. This is completely new for so many of us, but I also see the beauty in that because we are truly not alone at a time like this. No one has no idea what’s going on, and even if someone thinks that they do, things are constantly changing. Plans made today may be absolutely meaningless tomorrow. I have a feeling that much funding is going toward relief efforts specifically toward COVID-19 as well, which can reduce funding for non-profits. My question in regards to that is how will the non-profits deal with that? Will they take approaches into having their funding go toward COVID-19 as well in order to gain some revenue? Will they have to change their programs or even their organization’s mission to fit the environment that we are in now?
ReplyDeleteHi Lily! During COVID-19, I am especially grateful to be taking a philanthropy class, as it seems to be somewhat lost in the shuffle of everything that is happening around us. While it is important to keep a positive outlook, media coverage has been focusing more on the generous donations of billionaire donors and less on the reality of the situation for the nonprofit sector. Many programs are already underfunded, and the ongoing economic downturn due to the Coronavirus will unfortunately be the end to many important organizations. This is important to keep in mind as Trump's administration delivers stimulus packages to both the American public and to the corporate world. I appreciate that you highlighted the issues being faced by nonprofits and the solutions being presented by the Board Source, but perhaps Americans need to recognize the essential services that nonprofits provide and put a larger pressure on the government to ensure their success. With little to no income for the foreseeable future, Americans are going to need more than the survival of large corporations, and so I hope that more emphasis is put on the necessity of guiding nonprofits out of this crisis as well.
ReplyDeleteThis is a really interesting and informative blog post! I liked that you included such a variety of issues facing nonprofit organizations addressed by the Board Source. While I was aware of some of them, like the one about how many nonprofits are having trouble running in-person programs during social distancing (our class became plenty clear on this while trying to weigh how much to let the effects of COVID-19 affect our donation decision between the finalists), the point about board members and CEOs having trouble deciding how an organization should run during the crisis was a surprising one. It makes sense, though. Our class faced much difficulty trying to decide how to donate our $11,000 most effectively during this crisis; it's hard to imagine how difficult the decisions are for board members with the weight of responsibility of the fate of a whole nonprofit organization on their shoulders, trying to figure out how it should run effectively. While the Board Source seems like a valuable resource for many nonprofits however, it seems like in some cases it only applies to some. For instance, their advice for nonprofits struggling to run their in-person programs right now to try and run them virtually instead, applies to some organizations and definitely not to others. Rise, for instance, is attempting to offer virtual counseling services, so the Board Source's advice is relevant to them. Camp Ahwaga, however, can't recreate a summer camp experience online, so the Board Source's advice doesn't help in this case. In general though, it's nice to know that at least many non-profit organizations are being provided much-needed assistance in easing their burden of logistical difficulties during this crisis.
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