In times of crisis, not-for-profit organisations (NFPs) often face immense pressure to continue delivering vital services to the community while navigating financial and operational challenges.
Whether it’s an economic downturn, a sudden loss of funding, or unforeseen circumstances, NFPs must be prepared to respond swiftly and effectively.
This guide outlines seven practical steps you can take right now to strengthen your crisis management strategy and ensure your organisation remains resilient.
Let’s get straight to the point
In times of crisis, not-for-profit organisations can strengthen their resilience by supporting their teams, maintaining strong donor relationships, carefully managing finances, and optimising their online presence.
Evaluating and adjusting programs to meet emerging needs, seeking new funding opportunities, and innovating in fundraising efforts is crucial. By staying flexible and proactive, NFPs can continue fulfilling their mission and navigate challenges effectively.
1. Prepare and Empower Your Team
1. Communicate Openly and Frequently
Your team is the backbone of your organisation. In times of crisis, it’s crucial to maintain open lines of communication with your staff.
Regular updates, whether through meetings, emails, or virtual check-ins, help keep everyone informed and aligned with the organisation’s goals. Ensure that your team understands the current situation, the steps to address it, and their role in the process.
2. Foster a Supportive Environment
Crises can create stress and uncertainty among your team. It’s important to foster a supportive work environment that prioritises the well-being of your employees.
Encourage flexibility, provide access to mental health resources, and remind your team that their efforts are valued. A motivated and resilient team is better equipped to handle the challenges of a crisis.
2. Engage Donors Immediately
1. Strengthen Relationships with Key Donors
Maintaining strong relationships with your donors is essential in times of crisis. Reach out to your key donors with personalised updates on how your organisation is navigating the situation and the impact their contributions are making.
Transparency and clear communication can help reassure donors that their support is critical and appreciated.
2. Develop a Donor Retention Strategy
Consider implementing a donor retention strategy that focuses on maintaining engagement and loyalty during challenging times.
Offer alternative ways for donors to contribute, such as in-kind donations or volunteer opportunities, and acknowledge their ongoing support with regular, heartfelt communications.
3. Monitor and Manage Your Finances
1. Conduct a Financial Assessment
Take a close look at your organisation’s financial health. Assess your cash flow, review your budget, and identify areas where expenses can be reduced or deferred. Understanding your financial position is critical in making informed decisions that will help your organisation weather the storm.
2. Reallocate Resources Strategically
If necessary, reallocate resources to prioritise critical programs and services. Consider whether certain initiatives can be paused or scaled back to free up funds for urgent needs. By focusing on essential activities, you can ensure that your organisation continues to fulfil its mission during the crisis.
4. Enhance Donor Engagement Through Your Website and Communications
1. Optimise Your Online Presence
Your website and online communications are key tools for engaging donors and the broader community. Ensure your website is up-to-date, easy to navigate, and conveys your organisation’s mission and needs. Include compelling visuals, stories, and statistics highlighting your work’s impact.
2. Use Social Media and Email Campaigns
Use social media and email campaigns to keep your audience informed and engaged. Share updates, success stories, and calls to action regularly. Make it easy for supporters to donate or get involved by providing clear links and instructions on how they can help.
5. Review and Adjust Current Programs
1. Evaluate Program Effectiveness
In times of crisis, it’s important to evaluate the effectiveness of your current programs. Are they delivering the desired outcomes? Are there opportunities to improve efficiency or impact? Use data and feedback to decide which programs to continue, scale back, or expand.
2. Pivot to Meet Emerging Needs
Crises often bring new challenges and opportunities. Be prepared to pivot your programs to address emerging needs within the community.
Flexibility is key to remaining relevant and effective when expanding food distribution services during an economic downturn or providing additional support to vulnerable populations.
6. Explore New Funding Opportunities
1. Apply for Grants and Funding
During a crisis, new funding opportunities may become available from government agencies, foundations, or private donors. Stay informed about these opportunities and proactively apply for grants that align with your organisation’s mission and current needs.
2. Diversify Revenue Streams
Consider diversifying your revenue streams to reduce dependency on a single funding source. This might include launching new fundraising initiatives, exploring social enterprise models, or developing partnerships with local businesses. A diverse funding base can provide greater financial stability in uncertain times.
7. Innovate in Fundraising
1. Adapt Fundraising Events to a Virtual Format
With many in-person events being cancelled or postponed, it’s important to think creatively about how to continue fundraising efforts.
Consider adapting your traditional fundraising events to a virtual format. Online auctions, virtual galas, and live-streamed events can still engage your supporters and generate much-needed revenue.
2. Engage Your Community Online
Leverage the power of social media and digital platforms to engage your community. Encourage supporters to share your content, participate in online challenges, or host peer-to-peer fundraising campaigns. You can increase visibility and attract new donors by building an active online community.
Conclusion
While navigating a crisis can be daunting, it also presents an opportunity to build long-term resilience within your organisation.
By taking proactive steps to prepare your team, engage donors, manage finances, and adapt programs, you can ensure that your not-for-profit emerges stronger and more capable of fulfilling its mission in the future.
Crisis management is ongoing, and the strategies mentioned above are just the beginning. By staying flexible, communicating openly, and prioritising the needs of your community, your organisation can survive and thrive in the face of adversity.
Frequently Asked Questions
Are There Legal Considerations For NFPs During A Crisis In Australia?
Yes, NFPs must adhere to legal obligations, including reporting requirements to regulators like the Australian Charities and Not-for-profits Commission (ACNC) or other relevant authorities. Consult legal professionals to ensure compliance during a crisis.
How Can Australian NFPs Prepare For Natural Disasters?
- Develop a disaster preparedness plan tailored to local risks.
- Ensure records are securely backed up (preferably in the cloud).
- Train staff and volunteers in emergency procedures.
- Build partnerships with other organisations for support during recovery.
What Role Do Stakeholders Play In Crisis Management For NFPs?
Stakeholders—such as donors, volunteers, and community members—are essential in a crisis. Engaging them with clear communication and transparency can help maintain trust, provide support, and enable faster recovery.
What Resources Are Available To Help Australian NFPs With Crisis Management?
- ACNC Crisis Support Guidelines
- State Emergency Services (SES)
- Pro Bono Legal Services for NFPs
- Training programs through sector bodies like Volunteering Australia and Fundraising Institute Australia (FIA).
How Often Should NFPs Review Their Crisis Management Plan?
NFPs should review and update their crisis management plan at least annually or after a significant change in operations, such as new leadership, services, or external conditions.
