Q&A talks about the nonprofit landscape with Gloria J. McAdam, president and CEO of Foodshare in Bloomfield.
Q: How is 2011 shaping up for the nonprofit community in general? What are some of the weaknesses and strengths of this year compared to 2010?
A: While I can’t speak for all nonprofits, only for Foodshare, I do think most nonprofits braced for the worst in 2009 and 2010, expecting giving to be down and anticipating budget cuts. For organizations like Foodshare that work on issues related to poverty and income, it was even more frightening, for the economy was creating increased demand for services at the same time that we feared donations might decrease. Finding financial stability continues to be an ongoing concern for many boards of directors and nonprofit leaders. In addition to the financial challenges, nonprofits are expected to be more transparent than ever before, and there is greater pressure to and expense in providing ongoing proof of the positive impact we have on our communities.
Q: From your perspective, what nonprofits are doing better than others? Are large nonprofits faring better in this economy? Smaller nonprofits? Is it more a question of leadership?
A: Size does not matter as much as leadership. Well-run organizations with good leadership, both board and management, are largely doing okay. Organizations that clearly communicate their mission, the need, and what people can do to help are still engaging volunteers, still raising money and still moving forward with their important work.
Q: What are the successful nonprofits doing correctly in this economy to keep going forward with their missions?
A: Successful organizations have a broad base of support. They don’t depend on a handful of large donors or a single source of funding, like a government grant, to do their work. It’s also about focus. Successful organizations stay focused on their core mission and understand their own strengths and competencies. They don’t chase funding or start programs that don’t fit into their missions. They don’t waste staff time on short-term fixes for an influx of funds. Foodshare has stayed focused on our core work of ending hunger and distributing the most and best quality food we can to local food pantries and community kitchens. Since our 25th anniversary, we have committed ourselves more directly in ending hunger, not just distributing food. We see this as an extension of our work in ways that we believe make absolute sense to our mission of ending hunger.
Q: What’s coming down the road that is going to have the biggest impact on nonprofits? Health care reform? Tax code changes?
A: In terms of the tax code, President Obama’s tax plan includes a proposal to limit the percentage of income donors can write off as tax deductions, including donations to nonprofits. This could hurt charitable giving, particularly from those in the higher income brackets. As for health care reform, if it is done well, it could certainly have a positive impact for organizations that serve low-income people. We know that the largest single cause of debt among low-income people is medical expenses. All too often, low-income households have to choose which expenses to pay — health care, housing, or food. Quality, affordable health care would make a huge difference in tackling one of the root causes of hunger, poverty.
Q: How is social media impacting nonprofits? Does the electronic age make it significantly cheaper to raise funds? Should nonprofits even be spending money on mailings going forward when it seems like everybody is online?
A: I think social media has revolutionized the way nonprofits communicate, and to some extent, the way they raise money. For example, huge sums of money were raised via text messaging for earthquake relief in Haiti and Japan. However, these kinds of campaigns require a large scale to be feasible. For smaller nonprofits, the resources put toward social media efforts can still be well utilized. But, they need to take care that these resources aren’t wasted in a social media program without a strategy or a way to measure the rate of return. And it can be difficult to determine which type of social media will work best for a particular organization or mission. I do think that social media can be effective as a way to remind supporters to do things, such as sign up for an event or look for an appeal in the mail (it’s easy to read a short text message or quick email blast), reinforcing other fundraising methods. At Foodshare, we use my President’s Blog and our Facebook page to do just this — promoting volunteer opportunities and ways to get involved like “Turkey and a Twenty” and the “Walk Against Hunger.” However, we still have a segment of the donor population who will respond to direct mail over all other fundraising communications; so while it might be faster and more ecologically sound to use social media, it won’t replace direct mail entirely.
