ETHICS & professional standards Nonprofits: Transformational change as a result of COVID-19 By Danny Sklenicka, CPA, principal, Rea & Associates, Inc
The last two years of the COVID-19 pandemic have been some of the most difficult and turbulent times, and the economic fallout hit the nonprofit industry particularly hard. Nonprofits experienced stay-at-home orders, limitedcapacity events, event cancellations and reduced donor contributions. As the pandemic continues, the question looms — how can nonprofits continue to serve their mission, and what can they do to ensure financial solvency?
contributions will make lasting changes for those you serve. Review your messaging: You might have a trove of marketing collateral from times before the pandemic, but those messages might not reverberate in the current climate. Make sure your requests acknowledge the difficulties of
Nonprofit industry
recent years while emphasizing your organization’s mission
There are 1.3 million charitable nonprofits in America that
and the impact donors have in fulfilling that mission.
employ 12 million people and work with 64 million board
Emphasize the changes your organization made to weather
members and volunteers. Although these organizations vary
the pandemic. Focus on the positive and avoid dwelling on
in size, 92% spend less than $1 million annually, and 88%
the unknown.
spend less than $500,000 annually.
In a recent Ohio nonprofit survey, nearly one-third of
And most of them, regardless of size, have experienced
respondents indicated they were very concerned about
lasting effects from the pandemic. Here are some of the most
declining donations.
pressing concerns – and what nonprofit leaders can do to
Service delivery
make it through to brighter days.
How has the pandemic changed how you deliver your
Pandemic fundraising
services and engage with your employees and volunteers?
Nonprofits receive nearly 15% of their revenues through
Despite the obstacles faced, you must continue to provide
donations from individuals, foundations and corporations.
needed services to your clients and constituents. Some
Given the size of many nonprofit organizations, a major
things to think about:
reduction in this revenue stream will have significant
Leadership Capacity: How have your leaders adapted to
ramifications in 2022 and future years’ operations. It is critical to stay the course with donor engagement. Here’s how:
change? Have you shifted to using more online portals and technology platforms to engage with your constituents?
Grow relationships: Fear remains prevalent during this
You need a leadership team that understands your mission
pandemic. However, you and your donors might share similar
and challenges and can adapt to continue serving your
concerns. Reach out to them, listen to their needs and
organization’s mission. It is critically important to ensure you
continue to build your relationships as partners weathering
have the right leadership team to instill a positive, proactive
difficult times together.
mindset.
Maintain contact: The last two recessions (2001 and 2008)
Collaboration: Given the recent economic challenges,
showed that organizations focused on enhanced donor
operating in a silo might not be economically or operationally
stewardship recovered more quickly than those that reduced
feasible. Who else works in your geographic footprint? They
donor engagement. Tell your organization’s story and provide
might be experiencing the same struggles and looking for a
examples of transformational impacts you have made to
partner. Reach out to your peers and local leaders to form
those you serve during the pandemic. Let them know their
those partnerships. In one example, a tourist organization connected with local government leaders, presented its
24 | CPA Voice
