Changing the Way You Give: Nonprofits Pivoting During COVID-19
According to the 2012 report Charitable Giving and the Great Recession, the Great Recession of 2008 reduced total charitable giving by 7.0% in 2008 and another 6.2% in 2009. Not only this, but individuals, corporations, and foundations that did give tended to conduct significantly more due diligence on the organizations they planned to give to. While declines of this magnitude may not seem initially alarming, unfortunately, they are. For the thousands of nonprofits that operate on razor-thin margins, even a 1-2% decline can significantly disrupt normal operations and force difficult cost-cutting measures. With over 30 million Americans having filed unemployment claims since mid-March, the reduction in charitable giving is a bleak prospect that many non-profits will have to face in the months ahead.
While there are many strategies that non-profits can utilize to stay afloat and even drive growth during this unprecedented time, one of the most potent strategies is that of the strategic pivot. Given the increasing personal loss and incredible stress that this country is undergoing, the most effective pivots will be the ones that aid with COVID-19 relief efforts in some capacity. Here are a few great examples:
The Discovery Center for Springfield: After being forced to close on March 17th as a result of the COVID-19 pandemic, the Discovery Center for Springfield pivoted and reopened as a licensed child care facility on March 23rd. The service is specifically for the children of health care workers and first responders in the area. Where the museum previously struggled to find stable footing, it is now (at least partially) covering its operating expenses through grant requests and community donations.
Jackie Joyner Kersee Foundation: The JJK Foundation Center, a St. Louis-based after-school center where youth receive tutoring, mentorship, and athletic opportunities, is now delivering curbside meals to more than 85 families in the area. This strategic pivot came after the JJK Foundation Center was forced to close in accordance with social distancing guidelines. JJK staff and teachers immediately began speaking with parents in the area to identify how they could best support their students, even speaking with nutritionists to determine the appropriate menus.
There are many important lessons that non-profit leaders can take away from the successful pivots of the Discovery Center for Springfield and the Jackie Joyner Kersee Foundation. For non-profits considering their own strategic pivot, here are a few key steps to follow to ensure that their pivot is a successful one:
Identify what you are able to offer to the relief effort (space, talent, time, etc).
Research exactly what it is that the greater community is in need of.
Determine an effective way to market the pivot to key stakeholders.
Remember that this crisis will require significant flexibility on everyone's part.
We hope this provided some guidance towards a successful pivot, big or small!
As a social impact initiative, Rem and Company also offers free consulting services and resources to small businesses and nonprofits impacted by COVID-19. Our pro-bono consulting teams provide small businesses with the opportunity to identify and prioritize issues facing their business, propose innovative strategies, and facilitate execution. If you are a small business or nonprofit in need of assistance, learn more about how we can help.