Last month I designed an interactive assessment for nonprofit finances, designed to provide an immediate snapshot to help evaluate and monitor nonprofit health. Taking stock of this sort is more important now than ever before. According to Forbes in 2016, half of nonprofits are set up to fail – and that was in the midst of economic boom predating current year predictions of a $20 Billion charitable giving decrease.
Although budgeting with a downward and declining revenue projection is a dominant reality for nonprofits entering 2019, some are far more vulnerable to market forces. You might be working for an organization where the ‘writing is on the wall’, perhaps through several years of budget deficits and hemorrhaging of cash. Or, it might hit you out of the blue, like corporate giant Bear Stearns in 2008 – dissolving overnight after posting its first quarter of revenue loss in a more than 80-year history.
Whatever path has led you here, if you’re among the 10% or so that scored under 20 on my assessment, your organization has a terminal diagnosis. Just as with any diagnosis this severe, the alternatives are to accept the fate and focus on getting affairs in order for the inevitable end, or to fight to the end with optimism and embracing all experimental remedies.