Based on the current economic conditions and predictions for 2009, local nonprofit financial consultant Randy Howard, president of 501 Advisors, believes that nonprofit organizations are facing, yet are unprepared for, some of the most challenging financial conditions of recent years. “By a wide majority, nonprofits are failing to adequately prepare for their own perfect storm”, stated […]
Based on the current economic conditions and predictions for 2009, local nonprofit financial consultant Randy Howard, president of 501 Advisors, believes that nonprofit organizations are facing, yet are unprepared for, some of the most challenging financial conditions of recent years.
“By a wide majority, nonprofits are failing to adequately prepare for their own perfect storm”, stated Howard. “Revenues, including support from government agencies, corporations, foundations and individuals, are declining or projected to decline in the coming months. Many organizations are already registering a dramatic increase in demand for their services, while foreseeing less ability to meet the demands of their communities as they have in the past.” says Howard. This creates what Howard describes as a ‘perfect storm’ for nonprofits: declining and in some cases disappearing revenues, colliding with an unprecedented increase in demand for services.
So, how are nonprofit leaders to react? Howard thinks they shouldn’t. React, that is. Instead, he says, “These times call for leaders who, as management guru Peter Drucker describes, will anticipate the impact of changing economic factors and implement the strategies that will maintain their organization’s viability.” “Every organization will face their own medley of factors that affect operations, so there is no single magic solution; the circumstances require a comprehensive approach.” said Howard.
Based on Howard’s vast experience working with nonprofit organizations, he certainly agrees with Drucker’s philosophy. In an effort to “sound the call,” and assist nonprofit board members and senior management, Howard has developed a seminar addressing this very issue. The seminar, conducted by Howard and sponsored by his firm 501 Advisors, describes steps that nonprofits should be taking now to proactively best prepare their organizations for their own ‘perfect storm’. While the seminar is geared toward board members and senior management, entire organizations can benefit from the material and associated discussions. Howard also believes there are other professionals who can and should participate in a seminar of this type. “Active members of community, fraternal and civic groups are often the same folks that serve as board members or volunteers for one or more nonprofits.” he said.
501 Advisors is a private consulting firm, located in Chester, Virginia that helps nonprofits achieve financial confidence. With over 30 years of business and nonprofit public accounting, Randy draws on his broad experience to offer realistic advice and multiple strategies for improving the financial management of nonprofit organizations. Currently, he contracts as a Chief Financial Officer for a foundation and a nonprofit human services agency and provides consulting, internal accounting and tax services for several small nonprofit organizations.
For more information about 501 Advisors, attending a “Perfect Storm” seminar, or to have Mr. Howard speak to your organization, contact Randy Howard at 804-305-5883 or email@example.com.