On Friday the 13th, a day of infamous reputation, I was present at a gathering of nonprofit board members, funders and community leaders to hear what could only be described as infamous news. The gathering was called UNITED FRONT: Engaging Nonprofit Boards and Executive Leadership Facing Unprecedented Challenges.

A packed ballroom at the Minneapolis Hilton heard the economic forecast from Minnesota State Economist Tom Stinson. News was not good. If things look tough financially for nonprofits in 2009, they will look just as bad or worse by 2011.
Mr. Stinson also noted that the recession will be deeper and longer than expected. Side effects coming from the available stimulus money will be:

1. Policy makers will not have as much freedom in making budget choices.
2. Funds given will be for one time only and gone by 2011.

Indications of a turn around in the economic situation may be evident if we see improvements in both the payroll employment number and consumer spending.

Christina Wessel, Deputy Director of the Minnesota Budget Project followed with a look at the Governor’s expected spending cuts . She noted that health and human services and education will take the biggest hit. Federal stimulus money will help prevent some cuts, but health insurance for some Minnesotans will be vulnerable.

John Pratt, Executive Director of the Minnesota Council of Nonprofits spoke on what all of this means for MN nonprofits. His message - everyone must have a shared sense of sacrifice. There will be continuing decline in revenue and some needed staff reductions. MCN is conducting a quarterly survey to keep on top of the changes.

What to do?
A panel of leaders in government, nonprofits, and funding made suggestions and gave challenges to those in attendance; they included:

• Be proactive, this is not the time to be timid
• Now more than ever be a leader
• Form strategic partnerships
• Be creative - feel comfortable “shaking things up” when there is an opportunity to build optimism
• Be open to giving up turf
• Revisit the philosophy of your organization
• Do not manage people’s lives in perpetuity with your services – give them the skills to move on
• Focus on your mission – ask what services are mission critical
• Forecast your budget out to 2013
• Be prepared to tell funders your budget plans
• Pay attention to your spiritual and physical needs
• Use volunteers – especially look to those who may be currently unemployed