5 Steps to Help Your Nonprofit Survive the Stock Market Rollercoaster

I recently read an article on small business and the impact this month of scary political maneuvering is causing. In fact, it has been a scary month for every nonprofit organization. Watching the stock market is enough to make anyone sick, and nonprofits everywhere nervous. Many financial experts believe that the market is always a leading indicator of where the economy is headed. Some are even predicting a "double dip" recession. How will the tumbling of the stock market affect your organization?

The survey of small business owners last week revealed the following:
- Forty-eight percent think sales from their customers will “decrease as a result of a fear of a new recession."
- Forty-three percent replied that “it would have no effect at all.”

So, whether the U.S. is headed into another recession is unknown. But, the author recommends small business owners stop worrying and take more control by following five steps. I have taken the liberty of adapting those five very well thought out steps to the nonprofit world, because I 100% agree with all five of them.

1. Forget Chicken Little
Ignore the daily stock market ups and downs. To listen to the pundits, the world is coming to an end. It is not helpful to get caught up in the emotional hysteria of these massive swings. Don’t try to "time the market" on your own personal investment strategy either. You may get lucky, but for most of us, this is a loser. Turn off the daily negative media if that helps. Just say NO!

2. Find your share of donations
The U.S. donation volume was $303 billion in 2010, and $15 billion online. Do you think you could find another million dollars worth of donations to help grow your organization in such a large pool of donors? Darn right! Stick to the fundamentals and start exploring what you can do instead of what you are scared to do.

3. Watch your cash flow
Cash tends to slow down in a tough economy. Make sure that donors are still engaging with your organization and keep the lines of communication open. Organizations that have positive cash flow and are willing to invest in the future can always find opportunities to prosper.

4. Get boring fast
The knee-jerk reaction is to broaden your organization’s solutions to gain more donors. This is the absolutely wrong strategy. Focus on the areas where new strategies are working for other nonprofits (i.e. online fundraising, year end giving) and where old strategies are proven.

5. Keep selling every day
Again, the first reaction is to cut costs and curtail “overhead expenses” like marketing and sales. Results show that organizations that market through difficult times are more profitable when donors get more money to spend. Remember growing an organization is about building long-term trustful, engaging relationships. None of this can get accomplished successfully if your organization stops marketing itself daily.

Take-away: Is the sky falling? What tactics will you be taking through the remainder of 2011? Share with us here and with other nonprofits!