As I write this, I feel a weight on my shoulders. I cannot be a silent bystander when a clear and present danger for some social service organizations is in my view. Finally, I think I’m getting the big picture. Specifically, I feel compelled to clearly explain what social service organizations need to know and do in 2010 to survive and outlast the difficult storms that continue to loom on the horizon as a result of difficult financial times. My intent is not to incite fear for the sole purpose of being afraid, but rather to encourage a healthy fear—an awareness of real and immediate threats—that will move social service organizations from potential complacency to concerted action and fear-repelling preparation.
For organizations that are already prepared for what lays ahead, I say, “Continue onward.” For those that are not prepared, however, I encourage careful contemplation about the following five “must know” pieces of information for social service organizations heading into the 2010 year.
1. Social service organizations are not likely to see an improvement in funding. The Foundation Center (Lawrence, 2009) issued a must-read research report (see here) that lays out where foundations are likely to be putting their money, and how much, in 2010…and it’s not favorable for social service organizations. Citing the Foundation Center’s research, a recent Chronicle of Philanthropy (see Wilhelm, 2009) article highlighted multiple reasons why funding is expected to be down in 2009: foundations plan to give on par with their 2009 levels, or less; many states are operating beneath large deficits, and won’t be a reliable source of funds; and individuals may be cautious about their giving as a result of their own financial insecurities. And as a last consideration, given that many non-profits have used many of their reserve funds to fill the financial gaps in 2009, being able to “float the bill” in 2010 will be increasingly difficult. The financial reality for 2010 is one of maintaining or decreasing funds for non-profits.
2. Non-profits must implement fundamental changes in how they do business. According to a report in the most recent Chronicle of Philanthropy (Wilhelm, 2009), most philanthropy experts believe that “charities and foundations are too complacent in the face of the [current] economic upheaval and only a few have embraced the radical thinking that is needed to maintain, and potentially strengthen, the nonprofit world.” Too few organizations have been willing to implement the necessary “radical” changes to survive. These changes may include anything from an entire overhaul of values and services that have become unwieldy—even to the extent of letting go of some non-value aligned programs—or improving operational efficiencies by conducting a careful organizational autopsy of seemingly mundane processes, such as how an intake is performed, how a referral is provided, or how reports are generated. In spite of multiple warning-shots sent across their collective bow, many non-profits are not making fundamental changes to their business strategies, and consequently, may be sunk in the economic assault. Perhaps it’s a lack of willingness to change, or perhaps it’s a lack of ability to change. Either way, a lack of change in 2010 will leave non-profits operating “at their own risk” and vulnerable to ruin. Please let this idea sink in: Many non-profits have not yet done enough to prepare, and may not make it.
3. Accountability and transparency are the new reality. Evidence-based services are increasingly required by funding sources. These sources want to know how their money is being used and if their dollars are delivering a difference. Non-profits need to be prepared to show the outcomes of their services with quantifiable, measurable data. On December 31, 2010, federal dollars provided to social service organizations as part of the stimulus packet will end. If the current administration decides to provide more funds (which seems likely, given the current spending trends of this and other Democratic-led administrations), government watchdog organizations will be relentless in the pursuit of accountability and transparency associated with the allocated moneys. Every dollar and every dime will need to be accounted for, and funders will expect non-profits to operate in a glass house, with every aspect of their organization available for careful scrutiny and intense inquiry. In 2010, non-profits will need to be prepared to have their doors and windows swung wide open for the world to see into their inner-workings.
4. Non-profits need to seek creative collaborations. If ever there were a time for human service organizations of all shapes and sizes to band together in a common cause, it is now. For small organizations, creating partnerships may provide the financial and intellectual capital necessary to move forward and provide novel and necessary services within their communities. For large organizations, consideration of the value of smaller organizations merits close attention. Given that difficult times result in more people seeking social service assistance, large organizations cannot plan to meet all the needs alone. Instead, large organizations may consider relying on coordinated services among multiple smaller organizations to provide comprehensive services across the continuum of care (see George, Figert, Chernega, & Stawiski, 2007 for a novel example using the Aids Foundation of Chicago). Among small or large organizations, creative collaborations and the “strength in numbers” approach may be the determining factor regarding which organizations survive, and which don’t.
5. If you don’t have a technology solution, get the right one…quick. Many of the preceding “must knows” for 2010 can be greatly assisted by adopting technology solutions specifically designed for human and social service organizations. A well-chosen, well-suited software program such as ClientTrack will help non-profit organizations manage their grants, provide better services, run their business more smoothly, demonstrate accountability and transparency, and facilitate collaborations. Operating in a 2010 environment with 1970’s technologies does not work; large filing cabinets filled with brown folders full of hand-written case notes are not only an antiquated practice, but an organizational funding liability. Organizations that rely on pen and paper immediately move themselves to the bottom of the “consider for funding” pile, simply because they are not well-equipped to provide funders and communities the level of information they want, when they want it. In 2010, the right software to meet the right needs of social service organizations will be the lifeline that keeps many organizations from sinking.
George, C. C., Figert, A. , Chernega, J. J. and Stawiski, S. , 2007-08-11 “Connecting Fractured Lives to a Fragmented System” Paper presented at the annual meeting of the American Sociological Association, TBA, New York, New York City Online <PDF>. 2009-05-24 from http://www.allacademic.com/meta/p184055_index.html
Lawrence, S. (2009). Foundations’ year-end outlook for giving and the sector. The Foundation Center, November. Retrieved from http://foundationcenter.org/gainknowledge/research/pdf/researchadvisory_economy_200911.pdf
Wilhelm, I. (2009, November 12). Are Charities ready for tough times ahead? The Chronicle of Philanthropy, 1,6,11.