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February 19, 2025

New world of jeopardy. Nonprofits Must Focus on Risk Assessment, Funding Strategies and Effective Communications

In Michigan, nonprofits do so much to enhance the quality of life in our communities, in areas that include helping provide a safety net against hunger, drug addiction or homelessness; child or spouse abuse; economic development and business formation; or the arts and cultural affairs.  This reach is immense, when we consider partnerships with local or state government, businesses, or sponsoring foundations and co-nonprofits.

By Michael Layne, Marx Layne Public Relations and Digital Media

In Michigan, nonprofits do so much to enhance the quality of life in our communities, in areas that include helping provide a safety net against hunger, drug addiction or homelessness; child or spouse abuse; economic development and business formation; or the arts and cultural affairs.  This reach is immense, when we consider partnerships with local or state government, businesses, or sponsoring foundations and co-nonprofits.

Nonprofits are not only an indispensable part of our social fabric, including for vulnerable populations, but, also, our economy.  Michigan has approximately 53,000 nonprofit organizations, according to the IRS's Exempt Organizations Business Master Files.  According to industry sources, Michigan's nonprofit sector employs close to 400,000 people, almost 11 percent of the state's workforce.

However, 2025 promises to be a tremendously consequential year for nonprofits—threatening their missions and, possibly, survival.

Especially, as our Federal government continually seeks to scale down or eliminate funding for nonprofit organizations that provide food, shelter, housing, eradicate diseases, provide healthcare, early education, health equity and racial justice, ensuring all members of society are valued and encouraged to participate, and more, nonprofits are clearly in a vulnerable position.

Also, much of the support for nonprofits is “intertwined,” as one source of funding or donations might depend on co-sponsorship or, even, core funding—which can threaten a group’s survival.

Action steps. 

In face of these challenges, nonprofits must harness their strengths and proactively meet with state officials, legal advocacy organizations, board members, donors, and other nonprofit organizations to develop strategies to sustain their missions in the widest possible sense.  This process should include:

Risk assessment.

Nonprofits may consider doing a risk assessment, or audit, to determine their operational vulnerabilities; identify potential threats to their mission, especially with respect to funding, and make sober assessments about what the greatest risks are and ways to address those risks to the extent possible.

Outreach to key audiences.

Nonprofits are losing continued federal support.  Clearly, from pausing research on cures for childhood cancer to halting food assistance, safety from domestic violence and closing suicide lines, the impact of even a short-term pause in funding could be devastating.  These “threats” must be honestly communicated to key audiences, including donors; business leaders; lawmakers; and communities or activities served.

Comprehensive communications.

Today, all nonprofits must be alert and agile, in order to response promptly and authentically to unexpected issues.  This starts with a sound communications plan that clearly articulates one’s mission and purpose, augments fundraising activities, and is prepared to handle unfavorable developments with clients, staff, nonprofit partners, elected officials and business leaders, and the community at large.

For more information on how your nonprofit organization can develop a focused and effective, mission-driven communications plan please contact Michael Layne at Marx Layne Public Relations and Digital Media mlayne@marxlayne.com

 

Marx Layne Public Relations and Digital Media specializes in working with nonprofits on their messaging, media, donor and community relations.

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