A path forward for state’s nonprofits

The past three months of the COVID-19 crisis have been extraordinary for everyone — regardless of who you are or where you work, chances are this unprecedented disruption has touched you personally. The public health concerns are of course most important, though we cannot deny the heavy financial strain this has placed on businesses and other organizations across the board.

This certainly applies to the nonprofit world, which has been terribly impacted by the pandemic. As the CEO of a nonprofit which works exclusively with other nonprofits to find them savings and solutions for their energy needs, I have seen the impact firsthand and understand the challenges so many nonprofits still face. And now, as the world gradually begins its very deliberate “reopening” process, many nonprofits are wondering where they go from here. Some are even wondering if they will be able to survive, given the size of their budget and potentially decreased visitors and a diminished donor base.

Their concerns are understandable. The good news is there are steps that can be taken to possibly ease some of the burden this crisis has placed on them.

Starting on the energy side, this is an area where potential savings can be found, which will be of great assistance to those trying to stretch every dollar to its limit right now. Many organizations purchase their electricity through a third party — and those that don’t should consider it. Reviewing those energy supply contracts should be priority one. The energy market is currently at record- or near-record-low prices, so now is the time to evaluate your next contract and consider future energy needs. This includes exploring options in renewable energy — many nonprofits are missiondriven organizations, and environmental stewardship could be a part of that mission. The value that renewable energy could bring to your organization, including potential future savings, cannot be denied.

On the financial side, nonprofits indeed are still able to access the federal government’s Paycheck Protection Program, which provides forgivable loans for organizations to help them meet payroll during the crisis. These funds remain available to nonprofits which have not already sought them, and PPP remains a sensible first step. Another could be examining certain “restricted funds,” such as endowments, to see, if necessary, if a portion of them can be temporarily used, and later replaced.

Organizations can also look locally for support, through charitable foundations which have established grants and funds to help them endure. One local example in Connecticut is the Hartford Foundation for Charitable Giving, which has created a COVID-19 Response Fund, designed to buttress federal, state and local efforts to help these organizations see their way through the disruption. Millions of dollars of grants to organizations, funded by generous contributions from many corporate partners throughout the state, have been awarded already, and they are proving invaluable to the short-term viability of many nonprofits.

In addition to these resources and others like them, a number of nonprofits are wisely finding creative alternatives to donor relations and income generation, including virtual giving campaigns and, in some cases, virtual events to replace legacy events that have had to be postponed this year. This requires some outside-the-box thinking, but it can work. We’ve even seen some rather incredible crowd-funding initiatives that harness the support of communities that have stepped up with both financial and volunteer resources to local nonprofits. All are strong possibilities to help nonprofits on the road to a hopeful recovery.

Finally, in terms of donor relations, remember that consistent, positive communications with supporters and donor bases is essential. Most donors are still going to want to give in some capacity, but they will want to hear from those organizations and know that there is a plan in place for reopening. Let them know about changes and restructuring, be transparent about plans for re-engagement and let them know that despite the crisis, the mission remains unchanged. That is what donors need to hear, and many are likely to continue their support as long as a viable plan exists.

The truth is no one could have properly prepared for what we’ve had to endure for the past three months, and what many continue to endure. But you can manage and prepare for what comes next, in terms of re-engagement and having a realistic path forward. Support is there on many levels and should be examined; your mission is too important, and is likely needed now more than ever.