Despite the trials and tribulations of a down economy, nonprofits are finding ways to become more resourceful during tough times.
While reducing staff and cutting back on programming is part of their survival plan, so is investing in infrastructure and initiatives that will make them more efficient in the long run.
“All the nonprofits are becoming more mission-focused,” said Mark Latham, chief operating officer of TechBridge, an organization that helps nonprofits in improving their technology. “They are also trying to do things more efficiently.”
TechBridge CEO Kathleen Kurre said as donations dwindle, nonprofits have begun looking at new ways to reach donors, including updating public Web sites and other technology to increase visibility and efficiency.
“Spending and giving patterns are changing. When those patterns start to change it means we have to react and find new ways to get the dollars in,” Kurre said. “We are seeing a huge demand in requests for technology because that’s a place where all organizations ... can help the reach.”
Anticipating a drop in revenue, the Atlanta History Center took a proactive approach to operating in a down economy.
In January, the organization reduced its staff by 15 positions and reallocated resources, eliminating some of its programming. While individual donors, membership and admissions has remained steady, Chief Financial Officer Casey Steadman said corporate donations have fallen off.
“The dollars that they were spending before in terms of supporting cultural institutions and not-for-profits in general ... it’s just not there any more,” Steadman said.
While the center has had to cut back in some areas, it is also investing in others that Steadman said would benefit the organization in the long term, such as making renovations to its Midtown facility and the Margaret Mitchell House, and focusing on audience research.
“We’re spending money as well as being smarter about it where we are spending it,” Steadman said.
The museum is also putting a big push in the technology arena. Thanks to TechBridge, in 2008, the History Center received $1 million worth of software from Microsoft Corp. The museum also invested an additional $250,000 from its operating fund to deploy the software and make additional improvements to its hardware.
“We are working hard to try to get more efficiency and try to make our work productivity improve using the technology,” Steadman said.
Other technology initiatives included a redesign of its Web site, focused on ease of navigation and interactive components, such as online videos, blogging and social media components. Since the launch of its new site in January, www.AtlantaHistoryCenter.com has seen 3,700 unique visitors per week, an increase of about 1,500.
Dr. Gary Nelson, president of the Healthcare Georgia Foundation, which provides nonprofit health-care organizations with aid, said not all responses to the downturn have been positive, however.
“Some of the responses aren’t so positive, or functional or healthy,” Nelson said. “Some [nonprofits] will chase any dollar they can find, some will not stay true to their mission and wander off in areas that really aren’t their strength.”
With the nonprofit funding on shaky ground, Nelson said the Healthcare Georgia Foundation has seen a jump in the size and volume of funding requests from nonprofits.
“There is an underlying tone of urgency and emergency and crisis,” Nelson said. “Many are seeking what I would call emergency funding, bridge funding.”
One way the Healthcare Georgia Foundation is helping nonprofits cut costs is through a distance-learning program established with TechBridge, which allows nonprofit health-care agencies in rural areas of the state to collaborate and have access to training using audio and video webcasting — making the exchange of information efficient and cost-effective.
“One of the pieces of an organization that is quick to go, or quick to be deleted, discarded, abandoned or unfunded, is their investment in their core operations and investment in their training and organization development,” Nelson said.
Fully operational for about 12 months, the distance-learning program is free of charge and includes topics such as fund and board development, as well as programs on the stimulus package and how it will impact nonprofit organizations. With 40 different programs planned for this year, Nelson said the initiative has served more than 300 groups since its inception.
“What we’ve seen in the last year is a steady increase in the number of organizations participating, using it, relying on it and benefiting from it,” Nelson said.
Despite a slump in donations, TechBridge’s Latham said another effect of the recession is a jump in volunteer numbers. Whether a result of layoffs or a response to calls from nonprofits, which need manpower as their services are in greater demand, volunteers are looking to use their skills for a greater good.
“I think we are finding more talent, more expertise on some things,” he said. ”We aren’t just getting volunteers to come in and do envelopes; we are finding real skill sets that help [with] real business issues.”
Forging ahead
Amid a difficult economy, the Atlanta History Center is taking a proactive approach.
- Received $1 million worth of Microsoft software from TechBridge in 2008
- Invested $250,000 from its operating fund for software and hardware improvements
- Launched a new Web site in January — seeing 3,700 unique visitors per week, an increase of about 1,500
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