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Creativity, accountability new survival skills for charities
January 29, 1996; Canadian FundRaiser
More people are answering the call and taking responsibility at the community level in terms of voluntarism and community action. According to Gordon Floyd, Director of Public Affairs, Canadian Centre for Philanthropy, charities have been, until recently, the last bastion of trust. People, fearful of losing their jobs and of crime, feel powerless. The result is a new sense of personal insecurity, and a growing distrust of institutions - including charities - by many of our communities. Manifested in a desire for greater control and increased donor choice, Floyd sees increased community action as a positive outcome of this trend.
Speaking at the recent Infonex Conference, Charitable Organizations in the 1990's: Efficient Management & Effective Fundraising, Floyd reviewed the current concerns of Executive Directors and Board Members, saying it was a "tricky time to be running a charity in Canada." He went on to look at some of the issues, pressures and trends common to the sector, seeing a notable trend in globalization, and with it a decline of national identity. "On one hand, it is touted for all of its economic benefits and progress, yet on the other hand it still threatens to push us over the edge," he said.
Government spending cuts and restructuring hit charities with a triple whammy -- funding cuts, offloading and more fundraising competition. Canadian Centre for Philanthropy Research shows that 56% of charity revenues come from governments, and, for example, if an organization loses 1/5 of its government funding, its fundraising revenues would have to increase dramatically to fill the gap. "They've only just begun," warned Floyd. "Governments don't understand the impact on our sector, and few in government actually know much about us at all, least of all what our true role is in terms of identifying needs, setting priorities in community needs, and being a voice. This lack of understanding presents our major challenge."
Some positive outcomes, including more creativity
A shakeout in the voluntary sector in terms of closures, mergers, downsizing and partnerships is another key trend. On the negative side, expect to see many organizations shifting their focus to survival. The social service sector, says Floyd, will be hardest hit, with women, children and the poor taking the brunt. There will be more use of commission-based fundraisers and corporate donors and foundations will continue to be swamped. There are, however, potential positive outcomes. We will likely see more creativity, especially in terms of earned income and gifts-in-kind. Sponsors will become more committed; there will be new collaborations; and volunteer work will be more meaningful. Most importantly, there will be an enhanced perception by the public and corporations of `need'.
Finally, Floyd pointed out, we can expect to face an increase in public scrutiny by government, media and donors. Be prepared to answer tough questions about the effective use of monies received, and precisely how donations to your organization make a difference. Accountability is the name of the game, and with it comes the need to measure outcomes rather than simply activities. Floyd stressed that we must invest in good fundraisers, managers and technology, and that we can no longer afford to just muddle through. "The status quo is not an option."
This is a time of fundamental change with roles, relationships and resources the key issues. A time of crisis and of danger, it is also an exciting time of great opportunity to build stronger communities and to reassess community, altruistic and philanthropic values. The challenge facing our Boards and Executive Directors can be summed up in two words ... Managing Change.