The nonprofit’s guide to resilience during periods of uncertainty

Sometimes, being a nonprofit leader requires considerable resilience, especially when community needs increase and funding becomes uncertain. During economic uncertainty, for example, organisations of all sizes can often feel unsure of how to maintain their programs or plan for the future when next year’s funding isn’t guaranteed.

Here’s the good news: Nonprofits can deploy several strategies—like analysing current funding resources and creating a risk management plan—to help them continue to focus on what matters most.

Make a nonprofit risk management plan

A risk management plan is like your organisation’s safety net and early warning system combined. It’s not about predicting every possible problem, but rather having smart plans in place to protect what matters most: your mission, people and resources.

Start by looking at your biggest concerns. For each risk, develop practical steps to either prevent problems or respond quickly if they happen:

• List your top 3-5 risks that could seriously impact your work
• Create simple “if-then” response plans for each
• Check insurance coverage matches your needs
• Train staff on basic risk procedures
• Review and update plans quarterly

If you currently have a risk management plan, it’s time to dust it off and consider the steps and precautions you’ve previously laid out.

Identify and analyse your current funding sources

When uncertainty happens, it’s a normal reaction for nonprofits to panic. But, remaining calm, and assessing where you’re currently at in order to make effective decisions is essential.

Before proceeding, consider all of your funding sources—donations, earned income and other sources—and whether any of these funds have certain stipulations or if you expect that they, too, will be impacted by uncertainty. This knowledge forms the foundation for smart financial planning and helps prevent surprises.

To maintain nonprofit resilience and financial sustainability, you might want to:

• Create a spreadsheet to track all of your funding sources and their renewal dates
• Calculate the percentage each source contributes to your total budget
• Note funding sources that might be vulnerable to economic changes, too

Diversify revenue streams

Once you’ve made a spreadsheet of all your funding sources, consider how you might diversify them in case some sources can’t provide the same level of funding as they had previously.

To avoid overwhelm, begin by identifying just 2-3 new potential funding sources to develop. These might be new giving programs or campaigns, or building new relationships with key stakeholders.

Consider leadership strategies

Nonprofits and grantmaking foundations are pivotal community organisations that depend on community members for support and partnerships. When times of uncertainty arise, it’s essential that nonprofits continue to act as leaders as best they can, and help others around them, too.

During times of uncertainty, be sure to maintain transparency and offer clear communication around challenges and your ability to weather the storm. This might look like:

• Scheduling and hosting regular updates with staff and board
• Creating clear decision-making frameworks
• Maintaining open communication channels with major donors

Prioritise staff wellbeing

It’s normal and expected for your team to be on edge during times of uncertainty. But, it’s essential that as a leader, you offer them support, too. Wellbeing is an important aspect of any workplace, especially during challenging times.

To create an environment where staff feel secure and supported, try:

• Offering flexible work policies
• Providing mental health resources and support
• Creating regular check-in systems
• Recognising and celebrating small wins
• Setting realistic workload expectations

Lean on partnerships and like-minded organisations

During times of crisis, community is more important than ever.

Consider reaching out to a previous partner or other like-minded organisations in your community that might be facing similar challenges and uncertainty. Think about how each of you can collaborate in order to fulfill your missions.

Remain resilient in uncertain times

No matter what kind of uncertainty your organisation is facing, there are plenty of things you can do right now to help mitigate your risks, remain agile, support your staff, remain financially sustainable and, most importantly, continue to make an impact.