This document summarizes a presentation given at the Nonprofit Spring Forum on building stable nonprofit strategies in a changing environment. It discusses trends of budget cuts at the federal, state, and local levels that could impact nonprofits. It also notes that philanthropic funding is concentrated and may not offset government cuts. The presentation provides strategies for nonprofits to plan for uncertainty, such as increasing information, engaging stakeholders, evaluating programs and impact, and considering strategic options like advocacy, adapting operations, or partnering with other organizations. The goal is to help nonprofits strengthen their ability to fulfill their missions in a challenging funding environment.

1. Nonprofit Spring Forum
BUILDING STABLE NONPROFIT STRATEGIES IN A CHANGING
ENVIRONMENT
Portland Oregon
Thursday May 18, 2017

2. Mark Fulop, Owner & Principal
Facilitation & Process, LLC
(503) 928-4082
mark@facilitationprocess.com
www.facilitationprocess.com
Carmen Rubio, Executive Director
Latino Network
(503) 283-6881 x 116
carmen@latnet.org
www.latnet.org
Kris Soebroto, Program Director
Village Gardens
(503) 927 - 0820
ksoebroto@janusyouth.org
www.villagegardens.org
These slides were developed by Facilitation & Process.
LLC for the Spring Nonprofit Forum held in Portland,
Oregon on May 18, 2017.
Many thanks to Carmen and Kris for serving as the
authentic voice for this conversation with nonprofit
board members and leaders.
When you’re looking for maximum community impact,
we can help. We focus on program and revenue
strategy development, building effective boards and
high-performing teams. We have worked with dozens of
nonprofits ranging from startups to growing agencies
and national leaders.
Facilitation & Process is a consulting firm serving clients
nationally with customized and tailored solutions.
Whether you need us on site or remotely through
webinars and conference calls, we are your strategic
partner.
These slides are made available for noncommercial
use only as defined by the creative commons
designation.

3. Roadmap
 Review Strategy and planning under normal circumstances
 Think about disruptions and additions
 Strategy and planning for the fiscal challenges ahead
 Develop Leadership, partnerships and advisors
 Engage in planning for the less certain future

4. Winds of Change
 Oregon is facing a $1.4 billion budget shortfall.
 White House Administration’s Cabinet appointments and “Skinny Budget” that was released
BOTH foreshadow changing public policy priorities that will translate into potentially large
program and funding losses that will impact the government and social sector.
 Crisis & Rage - Action and fundraising are already here (Meals on Wheels, PP, Immigration)
 We are still early in the new city council here in Portland but it clear there will be anticipated
and potentially unanticipated changes in local public policy and budgeting decisions.
 Our philanthropic sector, is expanding it is also concentrated and concentrating.

5. Ford Foundation MRI
Investment a Historic
Challenge to Other
Funders!
~ Nonprofit Quarterly

6. Proposed Federal Budget
A Few of the Proposed Agency Eliminations
• Corporation for National and Community Service
• Corporation for Public Broadcasting
• Institute of Museum and Library Services
• Legal Services Corporation
• National Endowment for the Arts
• National Endowment for the Humanities
• Neighborhood Reinvestment Corporation
• United States Interagency Council on Homelessness

7. A Few Proposed Budget & Program Cuts
 Rural Business and Cooperative Service, $95 million.
 Supporting Effective Instruction State Grants program, $2.4 billion.
 21st Century Community Learning Centers program $1.2 billion.
 Weatherization Assistance Program and the State Energy Program, $2 billion.
 Low Income Home Energy Assistance Program and the Community Services Block Grant, $4.2 billion.
 Community Development Block Grant program, $3 billion.
 HOME Investment Partnerships, Choice Neighborhoods, Self-help Homeownership Opportunity
Program, $1.1 billion.
 Capacity Building for Community Development and Affordable Housing, $35 million.
 Job training grants, including the Senior Community Service Employment Program, $434 million.

9. Foundation
Grants
Oregon
Trends in Northwest Giving, 2017
https://philanthropynw.org/sites/default/files/files/news/Trends%20in%20Northwest%20Giving%202017.pdf
Health
30%
Education
21%
Human Services
10%
Environment & Animals
9%
Arts & Culture
7%
Philanthropy &
Nonprofit Management
4%
Community & Economic
Development
3%
International Relations
3%
Other
13%
• Total giving by 1,575 funders to 3,240 organizations: $429 million
• Median grant: $6,055
• Number of grants: 16,803
• Change in giving between 2012 and 2014 + 21%

10. The point is that we have limited philanthropic capacity
relative to the potential changes that are coming.
Even a transformational, ten-year investment of one
billion dollars by the Ford Foundation may be
dwarfed by the money that is going to be potentially
cut out of the federal budget for the next fiscal year
alone.

12. Nonprofit’s need to invest in planning
Plan Both Written & Effective
< $500K $500K-$1M $1M-$2M $2M-$5M >$5M
(n=899) (n=177) (n=142) (n=123) (n=120)
Annual budget 38% 73% 79% 78% 77%
Strategic plan 8% 33% 44% 46% 52%
Fundraising plan 9% 24% 38% 25% 21%
Annual plan 7% 16% 16% 13% 21%
Communications plan 2% 5% 13% 9% 14%
Business plan 3% 6% 6% 10% 14%
Board improvement plan 1% 4% 4% 5% 6%
Executive transition plan 1% 2% 3% 4% 14%
Emergency succession plan 1% 1% 2% 3% 9%
Theory of change 1% 3% 2% 5% 8%
Adapted from: 2016 Northwest Nonprofit Capacity Report
Data presentation based on phone conversation with report author

13. Principles for Action
1. Be objective
2. Stop staring at your dashboard
3. Be honest about impact
4. Slow down you will go faster
5. Scale up, down, merge or spin-off, ALL stay on the
table

14. PREPARE REVIEW FOUNDATIONS STRESS TEST MAKE DECISIONS
Increase your information
consumption
Clean up your board
Identify advisors for outside
perspective
Understand public policy
Inform key stakeholders
Need, mission, vision, values
Theory of Change & Impact
(evaluation)
Leadership, board, advisors
Staff and Staff Development
Revenue Model
Transparency
Communications & Partnerships
Engage in Scenario Planning
Evaluate your revenue model
weaknesses
Revisit your institutional values
Plan for potential program
strategy shifts
Assess your capacity to change
What is your program &
organizational impact?
How competent is your board?
How effective and strategic is your
leadership?
What do your financials tell you?
Who is standing in your way?
What actions do we need to take?
Planning Framework

15. Shape the Future
• Advocacy
• Impact
• Build Autonomy
Adapt to the Future
• Focus on Efficiency
• Strengthening Core
• Proactive Change
Three Postures
Reserve the Right
• Build Capacity
• Market Timing
• Partner or Merge
Future
Today
Strategy Under Uncertainty, (HBR, Nov-Dec 1997)
https://hbr.org/1997/11/strategy-under-uncertainty

16. Mark Fulop, Owner & Principal
Facilitation & Process, LLC
(503) 928-4082
mark@facilitationprocess.com
www.facilitationprocess.com
Carmen Rubio, Executive Director
Latino Network
(503) 283-6881 x 116
carmen@latnet.org
www.latnet.org
Kris Soebroto, Program Director
Village Gardens
(503) 927 - 0820
ksoebroto@janusyouth.org
www.villagegardens.org
Thank You
for making
this session
a success!