Finance … Stay positive, but act immediately!

According to the Nonprofit Times, (11/2/09 article):

In this difficult economy, with cutbacks and retrenchments, it can be difficult for any nonprofit to survive, let alone flourish.

Despite the temptation to think in terms of mere survival as crisis management, Patrick M. Rooney, executive director of the Center on Philanthropy at Indiana University, argues that nonprofits should try to think positively, trying to act now rather than wait for good times that might be a long time coming.
Rooney offers several suggestions.

• Rather than simply look to shed every possible cost as a means of just staying afloat right now, organizations should evaluate costs strategically. It’s better to spend smart rather than just be as frugal as possible.
• It is important to look carefully at how a fundraising program is managed and evaluated. Difficult times might actually be a good time to reassess.
• Odd as it sounds, it might be better to spend more on certain aspects of an operation and infrastructure. For example, it is critical to continue to invest in fundraising as a long-term support issue.
• Adding or maintaining a business development specialist might be even more important in challenging times to grow existing sources of revenue and identify and develop new ones.

If budget cuts have to be made, it is important to evaluate what effect cuts will have on long-term goals and mission.