Turn Lemons Into Lemonade: Navigating Change in the Nonprofit Sector

The nonprofit sector is inherently dynamic. Organizations face constant pressures to adapt, innovate, and evolve to meet the ever-changing needs of the communities they serve. Recent delays in Federal funding is causing some nonprofits to prepare for major changes in program delivery.

Whether it's due to reduced or delayed funding, staff turnover, program restructuring, or a new strategic direction, periods of change are inevitable – and often challenging. Leading effectively through these transitions is crucial for maintaining momentum, preserving organizational culture, and ultimately, achieving the mission.

There are changes that only affect one department and these can usually be handled relatively quickly with communication and engagement from departmental staff. However, organizational changes will require a longer planning time, more engagement with input and feedback from all stakeholders, be they board members, staff, volunteers or community partners.

Years ago when I was leading an adult literacy program, we experienced an 8-month delay in funding from the state. At the time, nearly all of the organization's funding was coming from the State Department of Adult Education. We officed in a leased building and a few donated spaces throughout our territory. Our reserve funds were nearly deplete and in a few months we found ourselves out of money.

Oh, and by the way, I had just taken the position and was unaware of the issues facing the agency. I met with Board to get their guidance, which was minimal, they had no clue about what to do, so I knew it was up to me to figure it out. I quickly met with staff and other adult education leaders to assess the needs of the community and what resources might be available. Nearly all of the other program leaders in the state said they would have not choice but to close their doors until the state released the funding.

I knew that if we closed our doors it would not just impact those we served, staff and volunteers, it would drastically reduce the dollars that we would be receive the following year, because our contract with the state was for reimbursable expenses based on the number of person's served in the previous year.

I attempted to get a loan to hold us over. However, we lacked property and other assets that could be used as collateral, and I was turned down by our bank.

The next step was to hold onto the little funds we had and hustle to get additional money in the door.

I contacted our landlord and other the company holding the leases for our copiers, and explained the situation. I provided proof of the delay in state funds and they all agreed to allow us to pay when the funds came through. That was a major win!

I froze the budget, halting hiring and any unnecessary spending.

I also wrote grants that I knew had a quick turn around and sought a loan from a local supporter. The grants began to roll in and I felt like I could finally breathe,

These moves allowed us to make payroll and keep the programs going. As nearly every adult education program in the state laid off staff and temporarily closed their doors, we remained open, picking up many attending other local programs. This proved to be profitable as we boosted our reimbursable funds for the following year.

I also partnered with local businesses to offer fee-based classes to their staff and I collaborated with other nonprofits to hold classes at their facilities in the evenings and on weekends. This increased the number of persons served, which doubled our income the following year!

It was tough, very tough, so much so that I and a few lead staff chose not to accept wages until funds were available. Fortunately this only lasted two pay periods. My staff was so committed to the mission and everyone stayed on with us, despite the uncertainty. When it looked like the funding would be delayed longer than anticipated, I wrote letters for staff to take to landlords or mortgage companies, but the funds were indeed released before it became necessary for them to use them.

I didn't have a guide to follow and this was my first executive position in which everything rested on my shoulders. For those of you who might be in similar situations here's

a guide to help you navigate transformative periods successfully:

I. Understand the Landscape and Recognize the Challenges

Change, even positive change, can be unsettling. It's crucial to understand the inherent challenges involved. Employees may feel anxious about their roles, the organization's future, and their personal security. This will undoubtedly bring on some resistance. Staff may resist change due to fear of the unknown, attachment to the status quo, or a perceived loss of control. Also expect some moments of decreased productivity during periods of transition, as staff adjust to new processes and roles.

II. Lead with Clarity and Compassion:

Communicate, Communicate, Communicate: Transparency is paramount. Provide clear, concise, and consistent communication about the change, the reasons behind it, and the expected outcomes. Use multiple channels (meetings, emails, newsletters, town halls) to reach everyone impacted by the change.

Develop a Clear Vision and Plan by articulating a compelling vision for the future. Create a well-defined plan with specific goals, timelines, and milestones. This provides a roadmap for navigating the transition and keeps everyone focused. Be sure to engage staff, board members, volunteers, and even beneficiaries in the change process. Solicit their input, address their concerns, and involve them in decision-making whenever possible. This fosters a sense of ownership.

Lead by example by demonstrating the behaviors and attitudes you want to see in others. Be resilient, positive, and committed to the organization's mission. Your actions will set the tone for the entire process.

Offer support to staff, including training, professional development opportunities, and access to mental health resources. Make resources available to ease the transition, whether that’s new technology, extra the staff or consultants. Acknowledge and validate emotions by recognizing that people may experience a range of emotions, including anxiety, sadness, and anger. Create a safe space for individuals to express their feelings and offer empathy and understanding.

III. Manage expectations and Focus on the WHY:

Be realistic about the timeline and the challenges involved. Set reasonable expectations and communicate them clearly. Be prepared to adjust the plan as needed, based on feedback and changing circumstances. Change often presents unexpected challenges and opportunities. As you're managing expectation, regularly remind everyone of the organization's mission and purpose. Connect the change to the organization's overall goals and how it will ultimately benefit the beneficiaries of the services and programs.

Leading through change is a complex, but rewarding endeavor. By embracing these strategies, nonprofit leaders can successfully navigate transitions, preserve organizational culture, and strengthen their ability to achieve their mission for the communities they serve. It's about not just surviving change, but thriving because of it.