- Budgeting and Performing Break-Even Analysis - develop a realistic contingency budget with the worst case scenario, then identify the most significant expenditures and where the most benefit could be realized by reducing costs (see notes from 2/24/09 nfpFMA meeting on health care costs to get started!)
- Assessing Fundraising Strategies - expand planned giving efforts, evaluate the profitability of special events relative to the resources neede to put them on, and be willing to work with donors to restructure promises to give
- Evaluating Financing Options - Check with lenders on the status of credit lines well before the renewal dates
- Managing Endowments and Restricted Funds - proceed with caution if taking out loans from restricted endownments, and cease all distributions from endowments that "underwater" (when the FMV is less than the original contribution amount)
- Developing Downturn Strategies - sometimes mergers or acquisitions of other nfp's could save the missions of both
- Preventing Fraud - continue to enforce high internal control standards. With a downturn, the fraud triangle of "motive, opportunity, and rationalization" are much more likely to occur, especially if controls are loosened because of staff downsizing.
A ninth suggestion was put forth by the members of the nfpFMA:
- Take Advantage of the Uncertainty to Seize Opportunities that would not otherwise exist - this includes collecting suggestions from staff for revamping, upgrading, or changing processes and procedures, developing new service areas, and implementing new fundraising strategies or prospects leads.
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