“Hope is Not a

Strategy…Managing During

Good Times and Bad”

11th Annual Connecting for Children’s Justice Conference

Nancy Chandler, ACSW

CEO

Georgia Center for Child Advocacy

Atlanta, GA

Georgia Center for Child Advocacy

Do you remember what caused the

recession?

Recession of 2009 - 2011

Began in December, 2007

The economic environment Housing bubble (low interest rates)

Regulatory failure (credit default swaps etc.)

Financial crisis

Failure of financial institutions

Credit crunch

Plunging home prices

Record foreclosures –first wave from loose

lending second from unemployment

Georgia Center for Child Advocacy

How did this effect non-profits?

Squeezed between rising demands and fewer resources

In 2009, 60% of surveyed human services organizations were cutting expenses, including cutting services and/or staff due to shortages.

The type of human service agency most likely to be under funded were those serving children and youth.

Foundations lost 40% of their investment portfolio.

Perception was (and still is) that there are too many non-profits.

Margins for success are razor-thin.

Georgia Center for Child Advocacy

Now that we have pulled out of the recession,

how should you be preparing for the future?

Managing – first of all, you must have your own stuff together. You must be a savvy non-profit leader.

Constantly scan the environment for trends Have any foundations that you work with changing

their focus?

Stay current on the economy – what’s happening in your local area.

Be open minded to change.

Lead and manage. Lead by example

Build transparency.

Anticipate events Know the guideposts (revenue or expenses) that will

help you know when you need to begin a change.

Diversity of Funding Streams

Source of Funding Percentage

State and Federal 45%

Foundations 30%

Special Events 13%

Local 5%

Individuals 3%

Corporations 2%

Organizations 2%

Georgia Center for Child Advocacy

Potential Legislative Advocacy

•Funding for

Forensic

Interviews

•PSSF

•VOCA

•State Funding

Georgia Center for Child Advocacy

Georgia Center for Child Advocacy

What are the keys to managing

through difficult times?

Managing Mission

Laser like focus

Who ever tells the best story “wins”.

In times of trouble many will suggest you cut back

on some area of operation

Key Performance Measures – Outcomes –

What % of change was there because of

something specific we did.

Results based strategic plan.

Georgia Center for Child Advocacy

What are some of the keys to

managing a great CAC?

People Management

Effective Communication – often, honest, real

This is where we are; We’re doing everything we

can, and these are the steps we are taking.

Model good coping skills

Allow employees opportunities to discuss

Effective Employee involvement

If you must cut back, think through all possible

strategies to determine best response.

Georgia Center for Child Advocacy

If you must cut back…

Hiring freezes

Wage freezes

Postponement of wage increases

Reducing fringe benefits

Work furloughs

Reducing work hours with proportional pay cuts

Five stages of grief

Denial, Anger, Bargaining, Depression, Acceptance

Georgia Center for Child Advocacy

Engage your Board of Directors

You have to be in control of the process…or

Board will do it for you.

Frequent meetings with Finance Committee,

Executive Committee

Scenario planning for them

Figure out each of your possible options and

think through the effect of each on the

organization before you go into the meeting.

Georgia Center for Child Advocacy

Money, money, money!

Managing Money

First of all, know your budget inside and out.

You should know every item on your accounts payable

sheet. What is it, what is it for, is it recurring, etc. Make

sure you ok every expense.

You should be aware of every dollar coming into the

agency. What is it for, is it restricted?

Georgia Center for Child Advocacy

Managing Money

Make sure that you are

getting correct numbers

from your

accountant/accounting staff.

Look at each expense

item…nice to have or

imperative.

Be ready to challenge staff.

It may be in the budget, but

that doesn’t mean there is

money to pay for it.

Create a cash flow

projection…get help if you

need it. Cash is King.

Georgia Center for Child Advocacy

What are the other keys to managing?

Managing Performance

Measure results, evaluate program success,

and create clear expectations for performance.

High performance starts and ends with

Mission.

Georgia Center for Child Advocacy

What do you do next?

Think about the future and what the

organization might look like. How it might

need to look/or how it should look.

Expect surprises.

Challenge assumptions.

How to deal with uncertainty…

Venture forth, step by step, updating

information, planning for contingencies