It Can’t Be Just About the Economy, Stupid!*

While I agree the economy has presented challenges for nonprofit organizations, I think it has become a convenient “excuse” for some nonprofit organizations as well as donors.  The donors are easy so I’ll start with them.  For many people, their income is the same as it was one year ago, even if their savings/investments have declined, which for many people is money they’ll recover between now and the time they intended to use the money   For most donors, contribution decisions are based on current income, at least for annual campaigns which are typically the lifeline for an organization’s operating budget.  Let’s also keep in mind there are people whose financial lives have improved because of our down economy.  Certain businesses by virtue of the services they provide or the products they sell are poised to make more money when others are hurting.   We also know there are some donors who are most likely to step up and stretch their giving  when the chips are down … becoming a “hero” in a down economy can be quite compelling for certain donors.

For some nonprofit organziations, I think too many of their challenges are being attributed to the tough economy.  Perhaps our tough economy should be considered a “wake up call” for many nonprofit organizations about their operations which donors may be scrutinizing now more than ever.

I was disturbed to read an article recently in The Jewish Daily Forward an article titled “The Perfect Storm’ for Day Schools” (http://www.forward.com/articles/112003/) in which I frankly feel the economy was used as a scapegoat to avoid perhaps some of the more difficult realities.  While I’m not arguing the economy is not a factor. I can’t help but wonder if the school has done any kind of self-evaluation of their program to determine the perception of it among potential families shopping around.  Perhaps their facility isn’t well maintained, perhaps their leaders aren’t equipped to be effective good will ambassadors, perhaps their marketing efforts are misdirected, etc.   If donations are down, it could also be a reflection of weak relationships maintained by the school with their donors who are directing their support to the organizations that have done a better job of stewarding the relationship and ensuring ongoing support.

My personal feeling is that one reason why the economy is “so bad” is because the perception of the economy is “so bad.”   I believe leaders in nonprofit organizations an opportunity – and responsibility – to ensure vital services continue and one thing we can all do to help is to stop talking doom and gloom, commit ourselves to “going the distance.”  This may include challenging ourselves to take an honest assessment of our organizations and do what we know we’re supposed to do or what we say we do.  Perhaps now, better than ever.

I welcome your opinion.

Seth Bloom

* “It’s the economy, stupid” was a phrase in American politics widely used during Bill Clinton’s successful 1992 presidential campaign against George H.W. Bush: http://en.wikipedia.org/wiki/It’s_the_economy, stupid