Managing morale in tough times and maintaining a culture of gratitude
These are difficult times in which to manage both expectations and morale of development staff.
The grim state of the economy casts a long shadow. Governments, local United Way programs, and foundations are cutting back on funding. The pressure on development staff and volunteers is extreme.
Many agencies have frozen salaries and benefits; some have even reduced compensation. Many in the nonprofit sector have reduced their workforce, only to increase the workload for those who remain.
Most development professionals are now working harder to raise less money; that is a recipe for burn-out.
Managing the morale of our staff
has never been more important, and more difficult.
The Year Ahead
The difficult economic environment within which development professionals have been working since late 2008 is staggering. Yet now, according to some experts, the year ahead may be one of the worst for the nonprofit sector.
Although a recovery is technically underway, it is a very slow one. Unemployment remains higher than 10 percent in many states; the stock market once again is volatile; and the general public is not feeling secure about the future or, in many cases, even the present.
Many states are facing devastating fiscal deficits, as is the federal government. Foundation and corporate giving is expected to decline based on their losses in 2009. Even if the economy is on the upswing, there is the simple fact that philanthropic giving lags behind in any recovery.
A further example of the uncertainty of the times, as well as the pressure on development staff, is the recent trend for local United Way organizations to cease the establishment of a dollar goal for their annual giving campaign. Instead, many are setting goals related to the number of donors they attract.
According to an article in the fall 2009 edition of The Nonprofit Quarterly, this shift in the United Way’s culture is due to continuing concern about unemployment. The consequence is severe allocation reductions to many longstanding nonprofit partners.
Very few members of the Alliance for Children and Families anticipate increased United Way dollars in 2010, and it is no longer uncommon for members to report that their local United Way is not a significant funding entity, or even that they no longer participate in the United Way’s funding mix.
Reduced year-end results and lower expectations for 2010 can be found throughout the country in communities ranging from Winston-Salem, N.C., to Loraine County, Ohio. Surely, these changes reflect, to some degree, the shift in donor preference away from intermediary collection entities. But, the severity of the change also suggests the local economic conditions are hitting both local United Way organizations and donors hard.
It takes time for the public to feel secure again, and to feel they have the capacity to give.
Adding to this grim scenario is the reality that, in times of rising unemployment, the demands for human services increase, even though the revenues needed to respond continue to shrink. This is a huge factor in morale depletion for leadership staff, who have the sad responsibility of reducing their workforce, but also declining care or wait-listing many who are in need.
Two Words: Thank You
So, what is there to do? The answer may be as simple as saying, “Thank you.”
Amidst the negative factors related to the economy, it is all too easy to forget to acknowledge how hard staff is working to harvest returns on investment, as disappointing as those returns may be.
A culture of genuine gratitude emanating from the board and senior leadership goes a long way in maintaining a positive relationship with these important staff members.
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Make the website of the Alliance’s Other possibilities for supporting development staff include investing in their careers by facilitating professional learning opportunities whenever possible, and allowing for position flexibility.
The stress upon key development and leadership staff is a great danger for our sector. Yes, people are surely glad to have a job. However, according to Michael Watson in the Dec. 10, 2009, issue of The Chronicle of Philanthropy, 54 percent of employees now plan to seek another job when the economy improves. Add to that the Bridgespan Group’s estimation that the nonprofit sector will lose about 300,000 leaders in the next few years from retirement alone.
If nonprofit human service organizations fail to acknowledge and support the efforts of their development professionals and the donor relationships these professionals nurture, they surely will be in peril as the economy improves and the demand for talented development and leadership staff escalates.
Waiting for the Upswing
Frankly, when exactly the “recovery” arrives for the nonprofit human service sector may come down to the old real estate adage: location, location, location.
Some states are being strangled by ballooning deficits and lost tax revenues due to high unemployment. The 10 highest indebted states, beginning with the worst, include: Connecticut, New York, California, New Jersey, Massachusetts, Delaware, Minnesota, Wisconsin, Illinois, and Hawaii.
States with the least fiscal challenges are Alaska, Montana, North Dakota, Wyoming, Arkansas, Nebraska, South Dakota, West Virginia, Indiana, and Alabama.
Most certainly, the outlook is grimmer for the fiscally crippled states.
However, if Alliance members work diligently to acknowledge their development staff and recognize their efforts today, it may help them avoid the worst of the worst. Act now to cultivate a firm foundation for future fund development.
Bob Jones is chair of the Alliance’s Resource Development Services |  |
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