Note: This guest post is from Jennifer Hutchins, executive director of the Maine Association of Nonprofits and board member of the National Council of Nonprofits. Thanks, Jennifer!
Given what’s going on in Washington D.C., those of us working in charitable organizations have reason for concern. Recent and proposed policy changes and funding cuts to federal programs, plus residual economic uncertainty, has thrown many nonprofits into a tailspin. Other groups are wondering when and how the next shoe will drop.
Some colleagues call this the “chaos lottery” – and it’s extraordinarily difficult to navigate.
The impact of these governmental decisions is deep and widespread. Public funding has been cut (or potentially cut) to organizations working in health care, scientific and environmental research, food and housing security, veterans and senior support, domestic violence prevention, and more.
Ripple effects
Sadly, it doesn’t stop there. When federal policy shifts, private business reacts.
There are signs that costs are rising and job growth is slowing across the economy – and specifically among nonprofits.
I’m seeing mixed data on corporate support for charitable groups. Some companies are stepping up. Others are postponing decisions. Still others are canceling commitments out of concern for possible fallout for countering federal priorities, including actions targeting DEI efforts, climate change, immigrants, and the LGBTQIA communities.
Nonprofits respond
Despite the chaos, nonprofits in Maine and beyond continue to push forward, stay focused on their missions, and bring creative problem-solving and an “abundance mindset” to addressing community needs.
Within days of the first Executive Orders in January, organizations with complimentary missions or similar challenges organized informal get-togethers, eager to share information, collaborate on shared goals, and offer an empathetic presence.
Some are pulling together to tackle mission-specific challenges, such as engaging with international students and faculty. Some are pooling rapid response funding, while others are merging to ensure the continuation of necessary services.
Our default setting: We absorb and adapt
Particularly in times of crisis and uncertainty, our immediate response is to gird ourselves (and our service recipients) for possible harms from public policy decisions or a weakening economy. As community-based organizations, we naturally turn inward and toward one another and ask the usual questions.
- How can we do better?
- How can we collaborate more?
- Can we be more efficient?
- How can we do more … and more … with the inevitable less?
Nonprofits blame the nonprofit model
When faced with challenges, we tend to point out all that’s wrong with our own sector. For example, our governance model is antiquated. The system is too siloed. There are too many tiny, under-resourced groups. Etc. Etc.
I’ve often described the nonprofit community as “duct-taped together,” lacking a cohesive, systemic approach to addressing common issues. We are the first ones to criticize the brokenness of our sector and the first ones to propose solutions, starting with, “Who can take this on? Can we get a grant for that?”
The roots of our dysfunction
Self-reflection and a focus on solutions are, of course, essential. However, let’s remember that other sectors – specifically corporations and government – assign certain kinds of work to charitable nonprofits they don’t want to deal with: the complex, difficult, generational, unprofitable, and inherently messy stuff. For better or worse, that’s our niche.
While government often undervalues and underfunds nonprofits, the business sector benefits in a variety of ways – for example, workforce development, scientific research, education, and vibrant communities – yet has no formal obligation to fund it.
Over decades, US nonprofits have accomplished things that neither government nor private business are willing (or able) to do themselves. Our “third sector,” comprised of nonprofits of all sizes and missions, continues to respond to increasing demands with fewer and fewer resources.
The dysfunction we experience results from the way the system is designed.
How do we solve this?
Photo credit: Safe in Maine
Nonprofit organizations begin when people come together to help our families and neighbors, increase overall well-being, and make our communities better places to live, work, and play.
If we want to improve our communities, all three sectors – nonprofits, government, and private enterprise – must work together as equal partners. Yes, we need to explore new solutions and structures – but not on our own, especially when funding for nonprofit research and innovation is deprioritized and under-resourced.
Claiming our power as equals
In partnership with nonprofits, government and business must be committed to addressing and supporting community priorities, like eliminating poverty and mitigating the effects of climate change. In my home state of Maine, effective cross-sector partnerships abound.
- Affordable housing: Avesta and Safe in Maine are both working with financial institutions, government agencies, and housing developers.
- Supporting the forest economy: FOR/Maine is a unique cross-sector collaboration including industry, government, education, and nonprofits.
- Global ocean challenges: The Gulf of Maine Research Institute works with local governments and coastal industries to develop science-based solutions.
All in … together
Collectively, with partners in government and business, we all have a responsibility to sit down at the community table as equals to reimagine, invest in, and empower nonprofits to achieve their greatest potential.
That’s how we build a stronger nonprofit sector to better serve our communities.
Great post. Although self-examination of NP organizations and the sector is always important, I appreciate that the tendency to look only inward has a self-destructive shadow and turns a blinder to systemic, longer-term sustainability needs. Where’s the leverage point in changing the balance of responsibility? The willingness of businesses and government(s) to step up varies geographically and individually, it’s probably finding those partners in other sectors that can and will and doing the creative slow work of shaping new norms. Examples like those in Maine are helpful to point to.
Thanks for reading and responding, Steffi. Yes, changing the balance of responsibility is slow, intentional, and necessary work.
I thoroughly agree that systemically the NFP sector is operating within a highly inefficient and siloed operating environment that reinforces and perpetuates the status quo at the expense of truly forging progress on their generally laudable mission statements. I further agree that authentic and meaningful cross sector collaboration is one of the most important aspects of smashing the concrete anchoring us in the “well, we’ve always done it this way” mentality. Being open to new partners and ways to work together and being willing to bear the stress of transitioning from the current ways which are proving increasingly ineffectual is paramount.
Another example, Hundred Nights shelter and resource center in Keene, NH, of which I’m a board member, has in the job description and goals for the ED collaboration with other organizations in the community. That collaboration spirit extends as well to staff and the board. Communication and collaboration with other non-profits, churches, service organizations, and the city government is essential to delivering our mission. But I can say that from my long career as a business executive and business owner that the incentive of business is to stay in business in a harsh world of competition. Collaboration with non-profits will always be a low priority for most business owners….seen mostly as brand building and marketing, or improving the quality of life for employees to support recruiting and retention (there are laudable exceptions). de Toqueville wrote about the uniqueness of civil organizations in American society long ago. Maybe messy, but a deep strength in the face of the natural inefficiency of government and the predations of fascist sociopaths. And charitable giving and voluneering give good people personal agency to improve society.