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Developing A Sustainable Nonprofit–Post Covid-19

An analysis of the current pandemic environment should be a clarion call for nonprofit board members. It can be summarized in a couple of sentences:

Great crises tend to bring profound social changes, …. . We seem to be at another point when society will make adjustments for good or ill. * 

As nonprofit board members or managers, are you ready to identify and confront these adjustments as they already have developed or will challenge your nonprofit within the next 10 years? Hopefully, a large portion of nonprofit boards will accept the challenge and begin strategic planning for the post-Covid 19 period now!  

Board Challenges – Post Covid-19

As I view the situation, the pandemic has already brought about changes in four areas that can impact the long-term sustainability of a nonprofit. There are others that can be added to my four, for example, Fund Development—but this topic has been well covered elsewhere. 

Advocacy 

Advocacy for Post Covid 19 needs to be more than an occasional Tweet or two. Some nonprofits will continue to advocate for issues that relate to its mission, vision and values. But they may have to take substantial stands on broader topics.

With 5G communications expanding the connections in the world, the post Covid-19 period will present opportunities for nonprofits to advocate, where appropriate, on social topics that may not be strictly germane to their mission—e.g., health care, social justice and “Me Too” issues.

At the least, each nonprofit should have reviewed policies that enable management and boards to respond quickly to pandemic-generated movements that are not currently on the horizon.

Information Security

Board members have an obligation to make certain critical information is secure. It requires more specific policies than the requirement to have an insurance policy in the event a hacker steals a membership list.

Developing these policies requires some basic IT knowledge. If some board members need a “review” of these basics, the board should offer an educational opportunity to upgrade their knowledge. 

Generation Z (Gen Z) 

Gen Z, born between 1995 and 2015 (2020 in some reports) has already started to impact the workforce. The Gen Z population is currently 86 million and is expected to grow to 88 million in the next 20 years due to migration. **

In comparison with the millennial cohort, Gen Z:

  • Wants more autonomy and independence. A Gen Z staff will readily accept positions that allow them to work from home, especially if it yields a healthy work-life balance. This will cause nonprofit boards to review policies related to office space requirements while evaluating “at home” productivity. Some staff may choose to be located elsewhere in the United States or internationally.
  • Are less team-oriented than millennials. Being more competitive than the previous  generation, financial compensation is more important. They have been raised in some difficult economic times, and their Covid-19 experiences will no doubt heighten their motivations to seek higher financial compensation. To engage the best and the brightest of the Gen Z cohort at nonprofit salary scales, organizations will have one other major attraction. Nonprofits are mission (or purpose) driven, “Showing the positive impact their work will have on society can be (an attraction) for Gen Z when it comes to choosing a job.” ***

Cultural or Technical Vulnerabilities

These are the challenges that may be in an infant stage but can have a significant impact on the organization’s policies. The March of Dimes movement changed its focus to healthy moms and strong babies after the development of a polio vaccine. As psychiatric drugs improved, the boards and management of a number of face-to-face counseling nonprofits declined or they broadened their missions. After simmering for years, the “Me Too” movement has caused colleges and universities to modify their policies, sometimes in a rapid manner.

Many of these vulnerabilities can emerge quickly and affect a nonprofit’s sustainability. CEOs should lead in a visionary manner and boards need members who can think broadly to respond with financial or intellectual support.  This process has been described by a Harvard Law publication as future-proofing.**** “This involves thinking through the impact of today’s changes on future outcomes and future needs.” The authors admit asking management to take on this planning effort within unprecedented uncertainty may hinder its ability to react short term.   But they feel it is worth the risk to provide the challenge to management’s long-term thinking.

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Dr. Eugene Fram
Dr. Eugene Framhttps://non-profit-management-dr-fram.com/
Eugene H. Fram, Ed.D., is an expert in nonprofit governance, a business consultant and an award-winning emeritus professor of the Saunders College of Business at Rochester Institute of Technology (RIT). He is also the author of six books and more than 125 published articles and has been widely quoted by national media on topics ranging from business to high-performance nonprofits. His blog platforms on nonprofit governance have in excess of 3500 followers. He is a past recipient of RIT's highest award for outstanding teaching and one of a very select group awarded the Presidential Medallion, given to those making exceptionally significant contributions to the university. In 2012, a former student anonymously contributed $3 million to endow an RIT Chair in Critical Thinking in his name, an honor Dr. Fram describes as "a professor's dream come true!" Over his distinguished career, he has served on 12 nonprofit boards overseeing diverse community, national and professional organizations, and also has served on five for-profit boards. His particular passion is helping nonprofit boards perform at high levels as more is expected of these boards today than most people realize. He is the author of Going For Impact – The Nonprofit Director's Essential Guidebook: What to Know, Do and Not Do, and POLICY vs. PAPER CLIPS - How Using the Corporate Model Makes a Nonprofit Board More Efficient & Effective.

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2 CONVERSATIONS

  1. Interesting list, Eugene Fram.

    I was wondering how many non-profits that might not exist at all in 20 years because their mission had become part of the normal social fabric?

    And for some advocacy groups, the sentiment might ideally be “D### it, we won!” (to quote a not late [non US] union leader who realized that unless there is opposition to reasonable demands, there is not much need for a union.)
    What happens to a nonprofit when what they fight for has been achieved? Often there are so many interests in keeping the organization – all the board members have the position on their resumes and may even be paid for their service, so are they likely to close down the operation?

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