Nonprofit University Blog

Greed.  I am not the only one to put at the feet of greed the current financial mess in which America currently finds itself.  Larger lifestyles, larger profits, larger risk.  All to get more.  Greed, greed, greed. As a result of these voracious appetites —which most of us were taught is not a trait to be coveted or embraced—folks are actually being rewarded.  We have bailouts in the works for greedy homeowners, greedy bankers, greedy insurance companies, greedy mortgage companies, even greedy car manufacturers.  The clear message is care about yourself first and even if it gets you into trouble, we, the government, will reward you. Perhaps that is the problem with the nonprofit sector.  We simply aren’t greedy enough.  We are, perhaps, too comfortable living without, living on the brink of nothing.  And now, because of many in the for-profit sector’s greed and the greed of individual Americans, the economy has tanked.  And as a result, the nonprofit sector is at risk. Far too many of my phone calls and e-mails are now from executive directors and board members talking about their nonprofits at risk of closing down, long-serving, mission-driven individuals about to be out of jobs, and general questions of how to weather these tough, tough economic times.  But so far, no one has contacted me to discuss a bailout for the nonprofit sector. Don’t get me wrong.  I am not saying the sector needs a bailout.  We haven’t tanked—and we won’t.  But there are many, many nonprofits which are currently struggling and will continue to struggle, and be joined by many, many others in the months to come.  Because the nonprofit sector wasn’t greedy, does that mean it doesn’t deserve a bailout?  What would a bailout for the nonprofit sector look like?  Start simply:  increase the tax incentive for individuals and companies to support charitable purposes.  This would simply encourage those who think about others, those concerned with improving the quality of life for all, those who want to give back, a little extra thanks.     

While I was hoping to get away from the theme of tough economic times, it seems nigh impossible to do so right now.  But I don’t like what I’m hearing from the board rooms and want to offer an alternative that should be considered. 

 The knee-jerk reaction to tough economic times is to cut:  cut, cut a little more and then cut yet more.  One executive director I know has been asked by her board to bring back several scenarios for next year’s budget:   a budget reduced by 10 percent, 25 percent and 50percent of the organization’s current budget.  And the request was not tempered by the parallel request that the board will work on scenarios to increase its fundraising work (assuming it isn’t currently at 0) by 10 percent, 25 percent and 50 percent.  How far can an organization cut and still deliver on its mission?  Not far, given that the majority of nonprofits run already pretty close to the edge.  Thus, cutting without a parallel strategic fundraising approach (by which I do not mean simply sending out a second “annual” appeal with a desperate cry for help) might be little better than doing nothing. 
 

There is, however, an alternative to cutting, an alternative that some might consider bold.  It is called merging.  These tough economic times beg all boards to take a close and deep look at the general sustainability and viability of their organizations and question whether trying to go it alone is the smartest decision.  These tough economic times require the putting aside of pride, grandstanding, legacy building, etc., and thinking only about how best to deliver the promises of an organization’s mission to its clientele.  These tough economic times demand boards, more so than ever, to remember that they are there to steward the promises of the mission.  And the best way to do that might not be to cut budgets but to find a strong partner with which to weather these tough times and build an organization that will be well equipped to weather the next– and inevitable — bad economy.

During tough times, be it the current one effecting all of us and brought on by the seeming collapse of our economic system or those more idiosyncratic to a particular organization, it is important to pay attention to our most valuable asset—people.  So, what are you doing to express loudly and clearly just how much you appreciate all of the good work your paid and volunteer employees do for your organization and the clients it serves?

And before the “but” escapes your mouth or your thinking, remember that appreciation doesn’t have to cost lots of dollars, or any dollars for that matter.  Let’s begin with a straightforward  “Thank you!”  Two such simple words so frequently overlooked and/or forgotten but with such a powerful impact.   The Mansis Development Corporation, a Canadian management consulting and training company, has identified 16 benefits of a thank you, from building self-esteem to generating a copy cat effect. 

Yet if two little words that take such little time to utter can have such a powerful impact on an individual and her/his work environment, why do so few use them?  (I wonder if using just “Thanks!” produces only eight effects?)  Perhaps more need to reintroduce this phrase into their repertoire.  (And not just in the workplace.  But don’t let me get started on that one!)

One of the benefits of a thank you noted in this Mansis list is the fact that it costs no money.  But there are other no-cost or low-cost options for showing personnel how much they are appreciated, for helping them weather the stressful times that we are currently in and for creating a work environment that supports and nurtures rather than makes things worse. For starters, there is real flex scheduling or starting the day an hour later or leaving an hour earlier; there is the possibility of working from home one day a week when appropriate or giving an extra mental health day every once in a while.   These are just some of the more common and easy options and by no means represent an exhaustive list.  But they should be enough to get you thinking about the possibilities.

The last thing we want to do during tumultuous times, times when we need our employees humming at their best to serve clients feeling most needy, is to create environments that give employees incentive to wander. 

So, say thank you, and then do more.

P.S.  Look for one of our tip sheets coming soon on other simple ways to recognitize and motivate employees.