Posts Tagged ‘Perfect Storm’

There’s no question about it: we are seeing the most challenging economic times since the Great Depression. Every day, we read about lost jobs at this company or that, but when was the last time you heard about lost jobs and closing doors at a non-profit organization?

Well, it’s true; it’s actually happening. The non-profit sector is struggling in a big way. The timing could not be worse: we rely on so many non-profits to provide their services – from soup kitchens to health care – and the prospect of scaling back (or closing their doors) is happening when they are more desperately needed than ever in communities, both large and small, all over the country. As a point of reference, we must remember that an organization receives its IRS non-profit status only after proving its charitable benefit to the constituency it serves.

If we review the series of key events over the past months, several specific issues have combined to form that so-called ‘perfect storm’ – we have just completed the most expensive presidential campaign in the history of our country (and, before Obama could deliver his acceptance speech on election night in Chicago, many people were already very seriously concerned about the economy), state budgets have been squeezed, many of the failing private-sector organizations (even Freddie and Fannie) were large contributors to the non-profit sector, and individual donors have seen their savings drop more than any other time in their lifetime.

Let’s face it; the magnitude of the current financial situation – and its effects on the non-profit sector – is huge.

But, the purpose of this article is to provide some positive steps to help proactive non-profits achieve success (survival?) even during difficult times. True, just as in the for-profit sector, not all non-profits will survive. We cannot change that fact in a capitalistic society. However, we can encourage non-profits to exude excellence and compete successfully among their peers for precious funding dollars.

I received an email on March 26, 2009 from a group, whose information I try to follow, known as “IT Solution Journal.” The subject line read as follows: “Compliance Rules: Tools, Policies and Best Practices That Are Cost Effective”

Wow! That’s the subject near and dear to my heart: non-profit compliance in the areas of ethics, governance, and accountability. As I have stated in previous articles, I believe that pro-active compliance is a sure way for a non-profit, charitable organization to signal its commitment to excellence.

So, in part, here is what that email had to say:

“Organizations of all types and sizes, industries and professions have long been mindful of the need for legal and regulatory compliance. In the current economic environment, however, forward-thinking organizations now are shifting their focus somewhat. Mere adherence to laws and regulations is no longer enough. Thanks to tight economic conditions and a fiercely competitive business environment, proactive managers and executives are committed to implementing strategic email and Hosted Service management…”

The good news: My experience has been that non-profit organizations have been extremely resilient over the years. And, my belief is that non-profit organizations are better-suited to address a number of our most pressing problems than either the government-sector or the private-sector organizations.

And, the bad news: I am concerned that most non-profits have not been as diligent as they should with their regulatory compliance. To date, the critical document for a non-profit, charitable organization has been the IRS Form 990, filed annually. It is my opinion that this will begin to change more and more (as I have mentioned in previous articles regarding the focus that Congress has placed on non-profit compliance and the increased scrutiny it has mandated to the IRS.

Foundations are watching their endowments drop, thereby making the case for less grant funding and their boards struggle with eroding investment portfolios. The same is true with individual donors. So, how does a struggling non-profit gain an edge?

I have five suggestions:

1. Don’t panic. Now is the time for calm, cool, collected thinking.

2. Make necessary changes. If there are board members or staff members who are not serving the organization adequately, replace them. Now is the time to rally your best and brightest minds and your most ardent supporters.

3. Review your IRS compliance requirements. Make sure you have your policies in place – and, make sure you are following them. Ethics, governance, and accountability measures will speak volumes.

4. If you are fortunate to have an endowment, use it. Avoid watching the stock market numbers every day. Keep your mind focused on the future.

5. Talk to your donor base, membership base, and continue to seek grant funds. This time, however, do it from a position of excellence. Don’t be reluctant to tout the professionalism of your organization over your peers.

In conclusion, this is a time of tremendous challenge; however, it is also a time of exciting opportunities. It’s time for non-profits to compete like never before (not in petty terms) but in all things that exude excellence, confidence, and strong business acumen.

Rob Glenn is the founder and president of The Center for Ethics, Governance, and Accountability (CEGA). His organization seeks to provide non-profit organizations with compliance policies that will provide a competitive edge for grant writing, donations, and charitable support. More information about CEGA can be found at http://www.centerega.com

Author: Rob Glenn
Article Source: EzineArticles.com
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More often then not, advertisers and marketers try to convince the consuming public not only of what it is that they want and need to purchase, but why. Equally as often, great segments of the consuming public buys or samples what the advertisers push simply for the reason that it is the “in” thing to do, buy, or own. On other occasions, of course, consumers simply buy what they want or need, regardless of what the marketing gurus say. However, there is the occasional perfect storm where marketing and consumer need perfectly meet and mesh.

We are in the midst of such a perfect storm now, one in which the needs of many American families to tighten their respective budget belts while still getting things they want and need (free, no less!), perfectly meshes with the desires and marketing techniques of advertisers who offer free samples and trial offers.

To understand the eye of this perfect storm, we have to understand the why’s and wherefore’s of free sample products and both why advertisers offer them to the consumer and smart consumers gladly take them up on the offers.

Simply put, free samples are products, trial periods, and services provided to allow what the advertisers hope will be potential long term customers to try their product or service at no initial cost. Products and samples offered can range anywhere from electronics to beauty products, from free travel offers to free weight loss offers and, for those on seriously tight budgets other offers can range from free gas cards to home improvement cards, and much, much more.

Now, before anyone goes ahead and thanks the various companies for their generosity and kindness, it is important to remember that, to them, this offer of free products is strictly a business move. It is a marketing tool, no more, no less. They are hoping that those who try their freebies will eventually become longer term customers. Further, in their quest for potential long term customers, marketers will try as many methods as possible in which to promote their free samples. Today, one of the methods enjoying the most explosive growth in the promotion of free offers via the internet. And that is where the budget conscious consumers come into play.

While there exist many reasons for people to spend hours on the internet, one of the main (and ever expanding) reasons is that many people surf the net looking for bargains. Just check out the popularity of eBay and Craigslist for proof! To these budget conscious bargain hunters, what is better than a bargain? Why, something that is free, of course! A sample of this, a free trial of that: To those concerned about their and their family’s finances, free samples are tough to beat.

While it’s obvious that the offering of free samples serves the marketers’ needs of getting their products “out there,” it is just as obvious in these tough economic times that, for many families, taking these same marketers up on the free samples they are the offering may help keep a little wriggle room in their budgets, thus leaving everyone to enjoy and profit from their role in this perfect storm of marketing, want and need.

Joe Steffen is a consultant, blogger, freelance writer and entrepreneur who is always on the lookout for something new. As someone who has long sought after freebies himself, he decided to offer to others some of the best samples he has used or seen, as found at [http://freesamples4ever.com/]

Author: Joseph Steffen
Article Source: EzineArticles.com
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