Surviving economic downturn

Surviving Economic Downturn

Every situation is going to be unique

Radical: We need to change direction NOW

Liberal: A bit gradually please

Conservative:

No govt meddling, let

the markets decide

CrisisDanger + Opportunity

If the world was a village of 100 people

64 would exist at income levels below USD 2 per day

46 would have no access to safe drinking water

7 would control of 78% the world's wealth

55 would have no education

From those who have much, much more is expected

Where will the best minds apply themselves?

CSR budgets are an opportunity

Repair or Prepare

Rebound or react

Perspectives

• Are you asking for donations or investments?

• Are your projects community cost centers or service centers?

• Are you an example for the community?

What are we talking of?

Surviving or Thriving

Downturn, recession or depression

The great paradoxAs economies

decline.............

Expectations from NGOs rise

2011 SURVEY85% of organizations expect an increase

in service demand; just 46% expect to be able to fully meet this demand.

60% of organizations have three months or less of cash on hand; 10% have none.

Only 9% expect 2011 to be financially easier for the people they serve.

Sustained

Global

Inter connected

Foundation builds houses, Clubs build homes.

Donor Constituency

Donor Psychology

Give donors what they want

• To feel good

• To hear from people that matter

• Tangibility

• Flexibility

• Personalisation

Societal Expectations

Leadership

Process

Leadership

Outcome

Organisational

Impact

Capacity

Building

Stake holders' involvement andrepresentation

Business skills in NGOsNoble missions with professional

careExponential growth of limited

resources

People believe in the message

if they believe the messenger

Inter Generational Equity

Aid to Trade

Survival to development

Endowment to enrichment

Build sustainable

models

•Are our programs need based and community engaging?

•Are we managing costs as aggressively as possible?

•Do we know what, specifically, we would do if we had to cut our budget by 10 percent, by 20 percent, by 30 percent?

•Have we identified the triggers that will set our contingency plans in motion?

•Are we branding ourselves?

•Do we know which of our programs and activities are mission-critical, and what each costs?

•Are our discretionary dollars allocated to these programs and activities?

•Should we be cutting programs?

•Who are the people most critical to our success, now and in the future?

•What are our most important relationships and are we attending to them?

•Should we be thinking about a merger?

•Are we actively in touch with our key funders?

•How much of our revenue is “in the bank”? How much is at risk?

•Are there steps we can take to simplify our operations?

•Do we have low- or no-cost ways to strengthen our organization?

•Is this an opportunity to bring critically needed skills onto our leadership team?

•Are we involving our board members and using their talents and connections appropriately?

•Are we helping our folks stay focused on the people and causes we serve or getting bogged down in our own woes?